Document:

Exhibit
      10.13

     

    NON-COMPETITION
      AND NON-SOLICITATION AGREEMENT

     

    THIS
      NON-COMPETITION AND NON-SOLICITATION AGREEMENT (this “Agreement”)
      is
      dated as of December 17, 2007 among United Benefits & Pension Services,
      Inc., a Delaware corporation (“Parent”),
      and
      [____________________] (the “Stockholder”).

     

    RECITALS

     

    WHEREAS
      Parent,
      UBPS Acquisition Sub, Inc. (“Merger
      Sub”),
      Associated Third Party Administrators (the “Company”)
      and
      John Sweeney, Tom Weston, David Krier, Michael Schumacher, Robert Glaza, Peter
      Herrling, James Vernor and Michael McCormick have entered into a certain
      Agreement and Plan of Merger (the “Merger
      Agreement”),
      pursuant to which the Merger Sub will merge with and into the Company, with
      the
      Company as the surviving entity;

     

    WHEREAS,
      from
      and after the Effective Time, the Company will be a wholly-owned subsidiary
      of
      Parent;

     

    WHEREAS
      prior
      to
      the Effective Time, the Stockholder was a stockholder of the Company and was
      therefore an indirect owner of the Company’s goodwill; and

     

    WHEREAS
      the
      execution and delivery of this Agreement by Stockholder is a material inducement
      for Parent and Merger Sub to enter into the Merger Agreement and consummate
      the
      Merger (pursuant to which the Stockholder will receive a portion of the Merger
      Consideration (as defined in the Merger Agreement)).

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing, the mutual promises and covenants set forth
      below and other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereby agree as follows:

     

    (a) Certain
      Definitions.
      As used
      herein, “Restricted
      Period”
means
      the period commencing at the Effective Time and ending on the earlier to occur
      of (i) the fourth anniversary of the Effective Time or, (ii) in the event that
      Stockholder’s employment with the Company is terminated by the Company other
      than for Cause (as defined in the Employment Agreement, of even date herewith,
      between the Company and Stockholder), the date of such termination.

     

    Capitalized
      terms used but not otherwise defined herein shall have the meanings attributed
      to them in the Merger Agreement. 

     

    2. Acknowledgements,
      Representations and Warranties by Stockholder

     

    Stockholder
      acknowledges that (i) pursuant to the Merger Agreement, Parent is acquiring
      all of the outstanding Company Common Stock, and therefore all of the goodwill
      of the Company (ii) the goodwill of the Company is reflected in the Merger
      Consideration, including the portion thereof allocable to the Company Common
      Stock owned by the Stockholder; (iii) to enable Parent to reap the benefits
      of
      the Merger, Parent reasonably expects that the Stockholder should refrain from
      carrying on certain activities as set forth in this Agreement and the
      restrictive covenants and the other agreements contained herein are an essential
      part of this Agreement and the Merger Agreement; (iv) the terms and conditions
      of this Agreement are fair and reasonable to the Stockholder in scope, content
      and in all other respects and are necessary for the protection of legitimate
      business interests of the Company, Parent and their respective Affiliates;
      and
      (v) Stockholder has been given a reasonable period of time to deliberate upon
      the full implications of the Merger Agreement and this Agreement, including
      the
      restrictive covenants herein, and has done so with his attorneys, and
      Stockholder fully understands such implications.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3. Covenant
      not to Compete

     

    (a) As
      an
      inducement to Parent and Merger Sub to enter into the Merger Agreement, in
      order
      to preserve the goodwill of the Company being acquired by Parent (through its
      wholly-owned subsidiary, Merger Sub) pursuant to the Merger Agreement and upon
      acquisition of Stockholder’s shares of Company Common Stock, and in
      consideration for the payments to Stockholder under the Merger Agreement,
      Stockholder hereby covenants and agrees that, during the Restricted Period,
      the
      Stockholder shall not, without the prior written consent of the
      Parent:

     

    (i) directly
      or indirectly, own, manage, operate, join, control, promote or finance (in
      whole
      or in part) or be connected as an officer, director, employee, stockholder,
      Affiliate, promoter, manager, partner, principal, licensor, sublicensor,
      licensee, sublicensor, agent, representative, advisor (whether paid or not)
      or
      consultant of, for or to, any Person engaged directly or indirectly in any
      activity in the United States that is engaged in the administration of pension
      and/or benefit plans as presently or at any time during the term of this
      Agreement conducted or proposed to be conducted by the Company (the
“Restricted
      Business”);
      provided,
      however,
      that
      the Stockholder shall not be deemed to be in contravention of the provisions
      of
      Section 3 if the Stockholder owns shares as a passive investor in a publicly
      traded entity engaged in a Restricted Business, provided that the number of
      shares of such entity’s capital stock that are owned beneficially or of record
      by the Stockholder and/or the Stockholder’s Affiliates collectively represent
      less than three percent (3%) of the total number of shares of such entity’s
      outstanding capital stock; provided further
      that the
      Stockholder shall not be deemed to be in contravention of the provisions of
      this
      Section 3 by virtue of Stockholder’s enrollment (or continued enrollment) solely
      as a plan participant in a pension or benefit plan available to the Stockholder
      in his capacity as an employee of the Company, Parent or any other entity by
      which the Stockholder may be employed; or

     

    (ii) disparage
      the Company or Parent or intentionally cause the Company or Parent to be viewed
      in a negative light by any client or prospective client or in its industry
      generally, or take any action that is designed or intended to cause any current
      or prospective client of the Company to terminate its business relationship
      with
      the Company.

     

    4. Non-Solicitation;
      Non-Interference.

     

    During
      the Restricted Period, the Stockholder shall not, directly or indirectly,
      without the prior written consent of the Parent: 

    
       

      
        
          
          

        

        
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    (a) solicit,
      attempt to solicit, induce or attempt to induce (on the Stockholder’s own behalf
      or on behalf of any other Person) any current employee, consultant, agent or
      representative of the Company, Parent or any of their respective Affiliates,
      or
      any person who was, during the one-year period prior to such action, an
      employee, consultant, agent or representative, to terminate his employment
      or
      other relationship with the Company or any of its Affiliates.

    (b) call
      on,
      attempt to call on, solicit, attempt to solicit, take away or attempt to take
      away (on the Stockholder’s own behalf or on behalf of any other Person), the
      business of any Person that is then an actual or prospective client of the
      Company or any of its Affiliates. 

     

    5. Injunctive
      Relief.
      Stockholder acknowledges that breach by him of any of the provisions of this
      Agreement could cause irreparable injury to Parent, the Company and their
      Affiliates, which by its nature would be continuing and substantial but not
      capable of precise measurements, and for which no adequate remedy at law exists.
      Accordingly, in the event of any actual or threatened breach of any of the
      covenants set forth in this Agreement, the parties agree that each of Parent
      and
      the Company, on behalf of itself, one or more of its Affiliates or both, shall
      be entitled to equitable relief without the necessity of posting bond, including
      without limitation, entry of preliminary, temporary and permanent injunctions
      and orders of specific performance. Such remedies shall, however, be cumulative
      and not exclusive, and shall be in addition to any other legal or equitable
      remedy or remedies which Parent, the Company or one or more of their Affiliates
      may have, including an accounting for profits or the recovery of damages.

     

    6. Notices.
      All
      notices or other communications required or permitted hereunder shall be in
      writing and shall be deemed given or delivered (i) when delivered personally
      or
      by private courier, (ii) when actually delivered by registered or certified
      United States mail, return receipt requested, or (iii) when sent by facsimile
      transmission (provided, that it is confirmed by a means specified in clause
      (i)
      or (ii)), addressed as follows: if to the Parent or the Company, to United
      Benefits & Pension Services, Inc., 501 Kings Highway East, Suite 108,
      Fairfield, CT 06825, Attention: Richard Stierwalt, (Facsimile (203) 254-0069);
      if to the Stockholder, to the address set forth below the Stockholder’s name on
      the signature page hereto

     

    7. Construction.
      The
      parties have jointly participated in the negotiation and drafting of this
      Agreement. In the event of an ambiguity or if a question of intent or
      interpretation arises, this Agreement shall be construed as if drafted jointly
      by the parties and no presumptions or burdens of proof shall arise favoring
      any
      party by virtue of the authorship of any of the provisions of this
      Agreement.

     

    8. Waiver
      of Breach.
      A
      waiver by any party of a breach of any provision of this Agreement shall not
      operate or be construed as a waiver or estoppel of any subsequent breach. No
      waiver shall be valid unless in writing and signed by Stockholder or an
      authorized officer of Parent, as the case may be.

     

    9. Assignment.
      Stockholder acknowledges that the services to be rendered by him are unique
      and
      personal. Accordingly, Stockholder may not assign any of his rights or delegate
      any of his duties or obligations under this Agreement. The rights and
      obligations of the Company or Parent under this Agreement shall inure to the
      benefit of and shall be binding upon the successors and assigns of the Company
      and Parent.

    
      
        
        

      

      
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    10. Entire
      Agreement.
      This
      Agreement, together with the other agreements referred to herein, set forth
      the
      entire and final agreement and understanding of the parties and contains all
      of
      the agreements made between the parties with respect to the subject matter
      hereof and thereof. This Agreement supersedes any and all other agreements,
      either oral or in writing, between the parties hereto, with respect to the
      subject matter hereof and thereof. No change or modification of this Agreement
      shall be valid unless in writing and signed by all of the parties
      hereto.

     

    11. Severability.
      It is
      the intent and desire of the parties that the provisions of this Agreement
      be
      enforced to the fullest extent permissible under the laws and public policies
      as
      applied in each jurisdiction in which enforcement of the provisions of this
      Agreement are sought. If any particular provision of this Agreement shall be
      adjudicated by a court of competent jurisdiction to be invalid or unenforceable,
      such provision shall be amended, without any action on the part of either party
      hereto, to delete therefrom the portion so adjudicated to be invalid or
      unenforceable, such deletion to apply only with respect to the operation of
      such
      provision in the particular jurisdiction in which such adjudication is made.
      If
      any provision of this Agreement is adjudicated by a court of competent
      jurisdiction to be invalid or unenforceable in its entirety, this Agreement
      shall be amended to delete such provision therefrom as applicable in such
      jurisdiction and without such deletion in all other jurisdictions.

     

    12. Headings.
      The
      captions and headings herein are inserted only as a matter of convenience and
      for reference, and in no way define, limit or describe the scope of this
      Agreement or the intent of any provision thereof.

     

    13. Counterparts.
      This
      Agreement may be executed in one of more counterparts, each of which shall
      be
      deemed an original but all of which together will constitute one and the same
      instrument.

     

    14. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of California, without giving effect to conflicts of laws
      principles. Each of the parties hereto hereby irrevocably consents to the
      exclusive jurisdiction of the courts of the State of California and the United
      States District Court for the Northern District of California in any action
      or
      proceeding with respect to this Agreement.

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF,
      the
      parties have duly executed this Agreement as of the date first above
      written.

     

    
      	
              PARENT:

            
	 
	
              UNITED
                BENEFITS & PENSION SERVICES, INC.

            
	 	 
	
              By:

            	 
	
              Name:

            	
              Richard
                E. Stierwalt

            
	
              Title:

            	
              President
                & CEO

            
	 	 
	
              THE
                COMPANY:

            
	 
	
              ASSOCIATED
                THIRD PARTY ADMINISTRATORS

            
	 	 
	
              By:

            	 
	
              Name:

            	
               

            
	
              Title:

            	
               

            
	 	 
	
              STOCKHOLDER:

            
	 	 
	 
	
              Name:

            	 
	
              Address:

            	 

    

     

    [Signature
      page to Non-competition and Non-solicitation Agreement]

     

    
      
        
        

      

      
        5Exhibit
      10.14

    

    UNITED
      BENEFITS & PENSION SERVICES, INC. 

    

    2007
      STOCK OPTION PLAN

    

    1. Purpose

    

    The
      purpose of this 2007 Stock Option Plan of United Benefits & Pension
      Services, Inc. (the "Plan") is to secure for United Benefits & Pension
      Services, Inc., a Delaware corporation (the "Company"), and its stockholders
      the
      benefits arising from capital stock ownership by employees, officers, directors
      and consultants of the Company and its affiliated corporations who are expected
      to contribute to the Company's future growth and success. The Plan is also
      designed to attract and retain other persons who will provide services to the
      Company. Those provisions of the Plan which make express reference to Section
      422 of the Internal Revenue Code of 1986, as amended or replaced from time
      to
      time (the "Code"), shall apply only to Incentive Stock Options (as that term
      is
      defined in the Plan). The Plan was adopted by the Board of Directors of the
      Company (the "Board") and approved by the stockholders of the Company on
      December 14, 2007. 

    

    2. Type
      of Options and Administration

    

    (a) Types
      of Options.  Options
      granted pursuant to the Plan shall be authorized by action of the Board (or
      the
      committee appointed by the Board in accordance with Section 2(b) below) and
      may
      be either incentive stock options ("Incentive Stock Options") intended to meet
      the requirements of Section 422 of the Code or non-statutory options which
      are
      not intended to meet the requirements of Section 422 of the Code ("Non-Qualified
      Options").

    

    (b) Administration.  The
      Plan will be administered by the Board, or by a committee (the “Committee”)
      consisting of two or more directors appointed by the Board, in each case whose
      construction and interpretation of the terms and provisions of the Plan shall
      be
      final and conclusive
      and
      binding upon the optionee and all other persons interested or claiming interests
      under the Plan. Notwithstanding the foregoing, if the
      Company is or becomes a corporation issuing any class of common equity
      securities registered under the Securities Act of 1933, as amended, or required
      to be registered under section 12 of the Securities Exchange Act of 1934 (a
      “Reporting Company”), to the extent necessary to preserve any deduction under
      Section 162(m) of the Code or to comply with Rule 16b-3 promulgated under the
      Securities Exchange Act of 1934, as amended (the "Exchange Act"), or any
      successor rule ("Rule 16b-3"), any Committee appointed by the Board to
      administer the Plan shall be comprised of two or more directors each of whom
      shall be a "non-employee director," within the meaning of Rule 16b-3, and an
      "outside director," within the meaning of Treasury Regulation Section
      1.162-27(e)(3), (the "Committee") and the delegation of powers to the Committee
      shall be consistent with applicable laws and regulations (including, without
      limitation, applicable state law and Rule 16b-3). The Board or Committee may
      in
      its sole discretion grant options to purchase shares of the Company's Common
      Stock, $.01 par value per share ("Common Stock"), and issue shares upon exercise
      of such options as provided in the Plan. The Board or Committee shall have
      authority, subject to the express provisions of the Plan, to construe the
      respective option agreements and the Plan; to prescribe, amend and rescind
      rules
      and regulations relating to the Plan; to determine the terms and provisions
      of
      the respective option agreements, which need not be identical; and to make
      all
      other determinations in the judgment of the Board or Committee necessary or
      desirable for the administration of the Plan. The Board or Committee may correct
      any defect or supply any omission or reconcile any inconsistency in the Plan
      or
      in any option agreement in the manner and to the extent it shall deem expedient
      to carry the Plan into effect and it shall be the sole and final judge of such
      expediency. No director or person acting pursuant to authority delegated by
      the
      Board shall be liable for any action or determination under the Plan made in
      good faith. Any determination by the Board or the Committee shall be final,
      conclusive and binding.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Eligibility

    

    Options
      may be granted to persons who are, at the time of grant, employees, officers,
      directors or consultants of the Company or any parent or subsidiary of the
      Company, as respectively defined in Sections 424(e) and 424(f) of the Code
      (each
      such parent and subsidiary of the Company hereinafter individually and
      collectively called an “Affiliate”), provided,
      that
      Incentive Stock Options may only be granted to individuals who are employees
      (within the meaning of Section 3401(c) of the Code) of the Company or any
      Affiliate. Options may also be granted to other persons, provided that such
      options shall be Non-Qualified Options. A person who has been granted an option
      may, if he or she is otherwise eligible, be granted additional options if the
      Board or Committee shall so determine.
      Notwithstanding anything in the Plan to the contrary, no employee of the Company
      or an Affiliate shall be granted options with respect to more than 366,954
      shares of Common Stock during any calendar year. 

    

    4. Stock
      Subject to Plan

    

    The
      stock
      subject to options granted under the Plan shall be shares of authorized but
      unissued or reacquired Common Stock. Subject to adjustment as provided in
      Section 15 below, the maximum number of shares of Common Stock of the Company
      which may be issued and sold under the Plan is 733,908 shares (after giving
      effect to a 5,325.03 for one split of the Common Stock to be effected by the
      Company). If an option granted under the Plan shall expire, terminate or is
      cancelled for any reason without having been exercised in full, the unpurchased
      shares subject to such option shall again be available for subsequent option
      grants under the Plan.

    

    5. Forms
      of Option Agreements

    

    As
      a
      condition to the grant of an option under the Plan, each recipient of an option
      shall execute an option agreement in form and substance as approved by the
      Board
      or the Committee. The terms of such option agreements may differ among
      recipients.

     

    
      
        
        

      

      
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    6. Purchase
      Price

    

    (a) General.
      The
      purchase price per share of Common Stock issuable upon the exercise of an option
      shall be determined by the Board or the Committee at the time of grant of such
      option, provided, however,
      that the
      purchase price shall not be less than 100% of the Fair Market Value (as
      hereinafter defined) of such Common Stock at the time of grant of such option,
      or less than 110% of such Fair Market Value in the case of Incentive Stock
      Options granted to persons described in Section 11(b) of the Plan. "Fair Market
      Value" of a share of Common Stock of the Company as of a specified date for
      purposes of the Plan shall mean the following: (i)
      if
      the Common Stock is listed on any established stock exchange or a national
      market system, including without limitation, any market of the NASDAQ Stock
      Market, its fair market value on such date shall be the reported closing selling
      price for a share of Common Stock on the principal securities exchange or
      national market system on which the Common Stock is at such date listed for
      trading; provided that
      if there
      are no sales of Common Stock on that date, then the reported closing selling
      price for the Common Stock on the next preceding date shall be determinative
      of
      fair market value; or (ii) if the Common Stock is listed on the OTC Electronic
      Bulletin Board, its fair market value on such date shall be the closing selling
      price on such date for a share of Common Stock as reported on the OTC Electronic
      Bulletin Board; provided that
      if there
      are no sales of Common Stock on that date, then the reported closing selling
      price for a share of Common Stock on the next preceding date for which such
      closing selling price is quoted shall be determinative of fair market value;
      or,
      (iii) if the Stock is not traded on the OTC Electronic Bulletin Board, an
      exchange, or a national market system, or notwithstanding (i) and (ii) above,
      if
      a determination of Fair Market Value under (i) or (ii) above would violate
      the
      rules under Section 409A of the Code and the regulations thereunder with respect
      to the determination of fair market value, Fair Market Value of a share of
      Common Stock on such date shall
      be
      determined in good faith by the Board or the Committee by the reasonable
      application of a reasonable valuation method in accordance with Section 409A
      of
      the Code, and such determination shall be conclusive and binding on all persons.
      

    

    (b) Payment
      of Purchase Price.  Options
      granted under the Plan may provide for the payment of the exercise price by
      delivery of cash or a check to the order of the Company in an amount equal
      to
      the exercise price of such options, or by any other means (including, without
      limitation, cashless exercise) which the Board determines are consistent with
      the purpose of the Plan and with applicable laws and regulations (including,
      without limitation, the provisions of Rule 16b-3 if the Company is or becomes
      a
      Reporting Company).

    

    7. Exercise
      Option Period

    

    Subject
      to earlier termination as provided in the Plan, each option and all rights
      thereunder shall expire on such date as determined by the Board or the Committee
      and set forth in the applicable option agreement, provided,
      that
      such date shall not be later than ten (10) years after the date on which the
      option is granted.

     

    
      
        
        

      

      
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    8. Exercise
      of Options

    

    Each
      option granted under the Plan shall be exercisable either in full or in
      installments at such time or times and during such period as shall be set forth
      in the option agreement evidencing such option, subject to the provisions of
      the
      Plan. Subject to the requirements in the immediately preceding sentence, if
      an
      option is not at the time of grant immediately exercisable, the
      Board
      or
      Committee may
      (i)
      in the agreement evidencing such option, provide for the acceleration of the
      exercise date or dates of the subject option upon the occurrence of specified
      events, and/or (ii) at any time prior to the complete termination of an option,
      accelerate the exercise date or dates of such option.

    

    9. Nontransferability
      of Options

    

    Except
      as
      otherwise may be provided in an option agreement, no option granted under this
      Plan shall be assignable or otherwise transferable by the optionee, except
      by
      will or by the laws of descent and distribution. Except as otherwise may be
      provided in an option agreement, an option may be exercised during the lifetime
      of the optionee only by the optionee.

    

    10. Effect
      of Termination of Employment or Other Relationship

    

    Except
      as
      provided in Section 11(d) of the Plan with respect to Incentive Stock Options
      and except as may otherwise be determined by the Board or Committee at the
      date
      of grant of an option in the option agreement, and subject to the provisions
      of
      the Plan, an optionee may exercise an option at any time within three (3) months
      following the termination of the optionee's employment or other relationship
      with the Company and its Affiliates or within one (1) year if such termination
      was due to the death or disability (within the meaning of Section 22(e)(3)
      of
      the Code or any successor provisions thereto) of the optionee (to the extent
      such option is otherwise exercisable at the time of such termination) but in
      no
      event later than the expiration date of the option. Notwithstanding
      the foregoing and except as may otherwise be determined by the Board or
      Committee, if
      the
      termination of the optionee's employment is for cause or is otherwise
      attributable to a breach by the optionee of any employment, confidentiality,
      non-disclosure or similar agreement with the Company or any of its Affiliates,
      the option shall expire immediately upon such termination. The Board shall
      have
      the power to determine, in its sole discretion, what constitutes a termination
      for cause or a breach of an employment, confidentiality, non-disclosure or
      similar agreement, whether an optionee has been terminated for cause or has
      breached such an agreement, and the date upon which such termination for cause
      or breach occurs. Any such determinations shall be final and conclusive and
      binding upon the optionee and all other persons interested or claiming interests
      under the Plan. Except as otherwise determined by the Board or the Committee,
      in
      the event of a sale of a subsidiary, each optionee employed by, or providing
      services to, the subsidiary shall be deemed to have incurred a termination
      of
      employment or other relationship upon such sale of the subsidiary.

    

    
      
        
        

      

      
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    11. Incentive
      Stock Options

    

    Options
      granted under the Plan which are intended to be Incentive Stock Options shall
      be
      subject to the following additional terms and conditions:

    

    (a) Express
      Designation.
      All
      Incentive Stock Options granted under the Plan shall, at the time of grant,
      be
      specifically designated as such in the option agreement covering such Incentive
      Stock Options.

    

    (b) 10%
      Shareholder.
      If any
      employee to whom an Incentive Stock Option is to be granted under the Plan
      is,
      at the time of the grant of such option, the owner of stock possessing more
      than
      10% of the total combined voting power of all classes of stock of the Company
      (after taking into account the attribution of stock ownership rules of Section
      424(d) of the Code), then the following special provisions shall be applicable
      to the Incentive Stock Option granted to such individual:

    

    (i) the
      purchase price per share of the Common Stock subject to such Incentive Stock
      Option shall not be less than 110% of the Fair Market Value of one share of
      Common Stock at the time of grant; and 

    

    (ii) the
      option exercise period shall not exceed five (5) years from the date of
      grant.

    

    (c) Dollar
      Limitation.
      For so
      long as the Code shall so provide, options granted to any employee under the
      Plan (and any other incentive stock option plans of the Company) which are
      intended to constitute Incentive Stock Options shall not constitute Incentive
      Stock Options to the extent that such options, in the aggregate, become
      exercisable for the first time in any one calendar year for shares of Common
      Stock with an aggregate Fair Market Value, as of the respective date or dates
      of
      grant, of more than $100,000.

    

    (d) Termination
      of Employment, Death or Disability.
      No
      Incentive Stock Option may be exercised unless, at the time of such exercise,
      the optionee is, and has been continuously since the date of grant of his or
      her
      option, employed by the Company or its Affiliate, except that:

    

    (i) an
      Incentive Stock Option may be exercised within the period of three (3) months
      after the date the optionee ceases to be an employee of the Company or its
      Affiliate (or within such lesser period as may be specified in the applicable
      option agreement), to the extent it is otherwise exercisable at the time of
      such
      cessation,

    

    (ii) if
      the
      optionee dies while in the employ of the Company or its Affiliate, or within
      three (3) months after the optionee ceases to be such an employee, the Incentive
      Stock Option may be exercised by the person to whom it is transferred by will
      or
      the laws of descent and distribution within the period of one (1) year after
      the
      date of death (or within such lesser period as may be specified in the
      applicable option agreement), to the extent it is otherwise exercisable at
      the
      time of the optionee's death, and

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    (iii) if
      the
      optionee becomes disabled (within the meaning of Section 22(e)(3) of the Code
      or
      any successor provisions thereto) while in the employ of the Company or its
      Affiliate, the Incentive Stock Option may be exercised within the period of
      one
      (1) year after the date the optionee ceases to be such an employee because
      of
      such disability (or within such lesser period as may be specified in the
      applicable option agreement), to the extent it is otherwise exercisable at
      the
      time of such cessation.

    

    For
      all
      purposes of the Plan and any option granted hereunder, "employment" shall be
      defined in accordance with the provisions of Section 1.421-1(h) of the Treasury
      Regulations (or any successor regulations). Notwithstanding the foregoing
      provisions, no Incentive Stock Option may be exercised after its expiration
      date.

    

    12. Additional
      Provisions

    

    (a) Additional
      Option Provisions.
      The
      Board or the Committee may, in its sole discretion, include additional
      provisions in option agreements covering options granted under the Plan,
      including without limitation, restrictions on transfer, repurchase rights,
      rights of first refusal, commitments to pay cash bonuses or to make, arrange
      for
      or guaranty loans or to transfer other property to optionees upon exercise
      of
      options, or such other provisions as shall be determined by the Board or the
      Committee, provided,
      that
      such additional provisions shall not be inconsistent with the requirements
      of
      applicable law, such additional provisions shall not result in liability under
      Section 409A of the Code and such additional provisions shall not cause any
      Incentive Stock Option granted under the Plan to fail to qualify as an Incentive
      Stock Option within the meaning of Section 422 of the Code.

    

    (b) Acceleration,
      Extension, Etc.
      The
      Board or the Committee may, in its sole discretion (i) accelerate the date
      or
      dates on which all or any particular option or options granted under the Plan
      may be exercised, or (ii) extend the dates during which all, or any particular,
      option or options granted under the Plan may be exercised, provided,
      however,
      that no
      such acceleration or extension shall be permitted if it would (i) cause any
      Incentive Stock Option granted under the Plan to fail to qualify as an Incentive
      Stock Option within the meaning of Section 422 of the Code, (ii) result in
      liability under Section 409A of the Code, or (iii) if the Company is or becomes
      a Reporting Company, cause the Plan or any option granted under the Plan to
      fail
      to comply with Rule 16b-3 (if applicable to the Plan or such
      option).

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    13. General
      Restrictions

    

    (a) Investment
      Representations.
      The
      Board or Committee may require any person to whom an option is granted, as
      a
      condition of exercising such option or award, to give written assurances in
      substance and form satisfactory to the Board or Committee to the effect that
      such person is acquiring the Common Stock subject to the option or award for
      his
      or her own account for investment and not with any present intention of selling
      or otherwise distributing the same, and to such other effects as the Board
      or
      Committee deems necessary or appropriate in order to comply with applicable
      federal and state securities laws, or with covenants or representations made
      by
      the Company in connection with any public offering of its Common Stock,
      including any "lock-up" or other restriction on transferability.

    

    (b) Compliance
      With Securities Law.
      Each
      option shall be subject to the requirement that if, at any time, counsel to
      the
      Company shall determine that the listing, registration or qualification of
      the
      shares subject to such option or award upon any securities exchange or automated
      quotation system or under any state or federal law, or the consent or approval
      of any governmental or regulatory body, or that the disclosure of non-public
      information or the satisfaction of any other condition, is necessary as a
      condition of, or in connection with the issuance or purchase of shares
      thereunder, except to the extent expressly permitted by the Board, such option
      or award may not be exercised, in whole or in part, unless such listing,
      registration, qualification, consent or approval or satisfaction of such
      condition shall have been effected or obtained on conditions acceptable to
      the
      Board or the Committee. Nothing herein shall be deemed to require the Company
      to
      apply for or to obtain such listing, registration, qualification, consent or
      approval, or to satisfy such condition.
      In
      addition, Common Stock issued upon the exercise of options may bear such legends
      as the Company may deem advisable to reflect restrictions which may be imposed
      by law, including, without limitation, the Securities Act of 1933, as amended,
      any state "blue sky" or other applicable federal or state securities
      law.

    

    14. Rights
      as a Stockholder

    

    The
      holder of an option shall have no rights as a stockholder with respect to any
      shares covered by the option (including, without limitation, any right to vote
      or to receive dividends or non-cash distributions with respect to such shares)
      until the effective date of exercise of such option and then only to the extent
      of the shares of Common Stock so purchased. No adjustment shall be made for
      dividends or other rights for which the record date is prior to the date of
      exercise.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    15. Adjustment
      Provisions for Recapitalizations
      and Related Transactions

    

    (a) Recapitalizations
      and Related Transactions.
      If,
      through or as a result of any recapitalization, reclassification, stock
      dividend, stock split, reverse stock split or other similar transaction (i)
      the
      outstanding shares of Common Stock are increased, decreased or exchanged for
      a
      different number or kind of shares or other securities of the Company, or (ii)
      additional shares or new or different shares or other non-cash assets are
      distributed with respect to such shares of Common Stock or other securities,
      the
      Board or the Committee may in its sole discretion make adjustment in (x) the
      maximum number and kind of shares reserved for issuance under or otherwise
      referred to in the Plan, (y) the number and kind of shares or other securities
      subject to any then-outstanding options under the Plan (and the annual
      participant cap in the last sentence of Section 3). 

     

    (b) Board
      Authority to Make Adjustments.
      Any
      adjustments under this Section 15 will be made by the Board or the Committee,
      whose determination as to what adjustments, if any, will be made and the extent
      thereof will be final, binding and conclusive. No fractional shares will be
      issued under the Plan on account of any such adjustments.

    

    (c) Notwithstanding
      the above, in the event of any of the following:

     

    (i) the
      company is merged or consolidated with another entity;

    

    (ii) all
      or
      substantially all of the assets of the Company are acquired by another person;
      or

    

    (iii) the
      reorganization or liquidation of the Company;

    

    then
      the
      Committee may, in its sole discretion cancel any outstanding options and cause
      the holders thereof to be paid, in cash or shares (including any shares of
      a
      successor or acquirer), or any combination thereof, the value of such options
      as
      determined by the Committee; provided, that such value shall be based upon
      the
      excess of the value of a share of Common Stock over the exercise price per
      share.

    

    16. No
      Employment Rights

    

    Nothing
      contained in the Plan or in any option agreement shall confer upon any optionee
      any right with respect to the continuation of his or her employment or other
      relationship with the Company or any of its Affiliates or interfere in any
      way
      with the right of the Company or any of its Affiliates at any time to terminate
      such employment or relationship or to increase or decrease the compensation
      of
      the optionee.

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    17. Amendment,
      Modification or Termination of the Plan

    

    (a) The
      Board
      may at any time modify, amend or terminate the Plan, provided
      that to
      the extent required by applicable law, any such modification, amendment or
      termination shall be subject to the approval of the stockholders of the
      Company.

    

    (b) The
      modification, amendment or termination of the Plan shall not, without the
      consent of an optionee, materially and adversely affect his or her rights under
      an option previously granted to him or her. The Board or the Committee may
      amend
      or modify outstanding option agreements in a manner not inconsistent with the
      Plan; provided
      that no
      such amendment shall materially and adversely affect an optionee’s rights under
      any such agreement option with such optionee’s consent. Notwithstanding the
      foregoing, the Board shall have the right (but
      not
      the obligation),
      without
      the consent of the optionee affected, to amend or modify (i) the terms and
      provisions of the Plan and of any outstanding Incentive Stock Option agreements
      granted under the Plan to the extent necessary to qualify any or all such
      options for such favorable federal income tax treatment (including deferral
      of
      taxation upon exercise) as may be afforded incentive stock options under Section
      422 of the Code, (ii) the terms and provisions of the Plan and of any
      outstanding option agreements granted under the Plan to the extent necessary
      to
      avoid liability under Section 409A of the Code, (iii) if the Company is or
      becomes a Reporting Company, the terms and provisions of the Plan and the
option
      agreements entered into in connection with any
      outstanding options to the extent necessary to ensure the qualification of
      the
      Plan and such options under Rule 16b-3 (if applicable to the Plan and such
      options), and (iv) if the Company is or becomes a Reporting Company, the terms
      and provisions of the Plan and
      the
      option agreements entered into in connection with any
      outstanding option to the extent that the Board determines necessary to preserve
      the deduction of compensation paid to certain optionees who are "covered
      employees," within the meaning of Treasury Regulation Section 1.162-27(c)(2),
      as
      a result of the grant or exercise of options under the Plan.

    

    18. Withholding

    

    (a) The
      Company shall have the right to deduct and withhold from payments or
      distributions of any kind otherwise due to the optionee any federal, state
      or
      local taxes of any kind required by law to be so deducted and withheld with
      respect to any shares issued upon exercise of options under the Plan. Subject
      to
      the prior approval of the Company, which may be withheld by the Company in
      its
      sole discretion, the optionee may elect to satisfy such obligations, in whole
      or
      in part by (i) causing the Company to withhold shares of Common Stock otherwise
      issuable pursuant to the exercise of an option, (ii) delivering to the Company
      shares of Common Stock already owned by the optionee, or (iii) delivering to
      the
      Company cash or a check to the order of the Company in an amount equal to the
      amount required to be so deducted and withheld. The shares delivered in
      accordance with method (ii) above or withheld in accordance with method (i)
      above shall have a Fair Market Value equal to such withholding obligation as
      of
      the date that the amount of tax to be withheld is to be determined. An optionee
      who has made (with
      the
      Company's approval) an
      election pursuant to method (i) or (ii) of this Section 18(a) may only satisfy
      his or her withholding obligation with shares of Common Stock which are not
      subject to any repurchase, forfeiture, unfulfilled vesting or other similar
      requirements.

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

       

    

    (b) The
      acceptance of shares of Common Stock upon exercise of an Incentive Stock Option
      shall constitute an agreement by the optionee (i) to notify the Company if
      any
      or all of such shares are disposed of by the optionee within two (2) years
      from
      the date the option was granted or within one (1) year from the date the shares
      were issued to the optionee pursuant to the exercise of the option, and (ii)
      if
      required by law, to remit to the Company, at the time of and in the case of
      any
      such disposition, an amount sufficient to satisfy the Company's federal, state
      and local withholding tax obligations with respect to such disposition, whether
      or not, as to both (i) and (ii), the optionee is in the employ of the Company
      or
      its Affiliate at the time of such disposition.

    

    19. Effective
      Date and Duration of the Plan

    

    (a) Effective
      Date.
      The
      Plan shall become effective when adopted by the Board, but no Incentive Stock
      Option granted under the Plan shall become exercisable unless and until the
      Plan
      shall have been approved by the Company's stockholders. If such stockholder
      approval is not obtained within twelve (12) months after the date of the Board's
      adoption of the Plan, no options previously granted under the Plan shall be
      deemed to be Incentive Stock Options and no Incentive Stock Options shall be
      granted thereafter. Amendments to the Plan shall become effective as of the
      latest of (i) the date of adoption by the Board, (ii) the date set forth in
      the
      amendments or (iii) in the case of any amendment requiring stockholder approval
      (as set forth in Section 17), the date such amendment is approved by the
      Company's stockholders. Notwithstanding the foregoing, no Incentive Stock Option
      granted on or after the effective date of any such amendment requiring
      stockholder approval to qualify for incentive stock option treatment under
      Section 422 of the Code shall become exercisable unless and until such amendment
      shall have been approved by the Company's stockholders. If such stockholder
      approval is not obtained within twelve (12) months of the Board's adoption
      of
      such amendment, no options granted on or after the effective date of such
      amendment shall be deemed Incentive Stock Options and no Incentive Stock Options
      shall be granted thereafter. Subject to above limitations, options may be
      granted under the Plan at any time after the effective date of the Plan and
      before the date fixed for termination of the Plan.

    

    (b) Termination.
      Unless
      sooner terminated by the Board, the Plan shall terminate upon the close of
      business on the day next preceding the tenth anniversary of the date of its
      adoption by the Board. After termination of the Plan, no further options may
      be
      granted under the Plan; provided,
      however,
      that
      such termination will not affect any options granted prior to termination of
      the
      Plan.

    

    20. Governing
      Law

    

    The
      provisions of this Plan shall be governed and construed in accordance with
      the
      laws of the State of Delaware without regard to the principles thereof relating
      to the conflicts of laws.

     

    
      
        
        

      

      
        -10-

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