Document:

Unassociated Document

Exhibit 10.4

INTEGRATED PHARMACEUTICALS, INC.

CONSULTING AGREEMENT

March 1, 2004

Integrated Pharmaceuticals, Inc., an Idaho corporation having an address of 56 Roland Street, Boston, MA 02129 (the "Company") and James C. Czirr, an individual having an address of 425 Standish Dr., Sandpoint, ID 83864 (the "Consultant"), hereby agree as follows as of the date first written above (the "Effective Date
"):

Background:

The Company has requested the Consultant to provide certain consulting services in connection with corporate and public relations, strategic planning, organization of production, marketing strategies and incentive programs, and other professional tasks for the Company as it may request (the "Services"). The Consultant is willing to provide Services to the Company on the terms and conditions herein set forth.

Agreement:

1. Provision of Services. The Consultant agrees to provide Services as stated above and as directed by the Company.

2. Term. The term of this Consulting Agreement shall initially be for a period of twelve months. The parties may extend the term from time to time as they deem appropriate.

3. Compensation. In consideration of the Services, the Company pay the Consultant (i) a signing bonus in the amount of $100,000, (ii) a quarterly fee payable in the amount of $50,000 per quarter, and (ii) a stock purchase warrant substantially in the form attached hereto as Exhibit A, granting the Consultant the right to purchase up to 472,000 shares of the Company's common stock, exercisable at $1.00 per share,

with such warrant to vest as follows: 250,000 as of the warrant grant date, and 37,000 on each of the first four three-month anniversaries of the grant date, for a total of 472,000 shares, provided that the Consultant continues to be a Consultant of the Company on each applicable vesting date. If the Consultant ceases to be a Consultant before the warrant is fully vested, the warrant will vest for the period in which such termination occurs, pro rata as of the termination date based on the amount that would have otherwise vested for the full period.

	 
	 	 	 
	

	 

         4. Expenses. The Company shall reimburse the Consultant for out-of-pocket expenses reasonably incurred by the Consultant in the course of performing the Services, provided Consultant delivers vouchers or other documentation evidencing such expenses to the satisfaction of the Company. Any expense out of pocket expense more than $200 has to be approved by the company.

5. Termination. The Company shall have the right, upon written notice thereof to the Consultant, to terminate immediately the Consultant's engagement pursuant to this Agreement (such termination, for "cause") if the Consultant (i) is grossly negligent in the performance of Services and other duties hereunder, (ii) is convicted of a felony or other violation which in the reasonable judgment of the Company' senior

management could materially impair the Company from substantially meeting its business objectives, (iii) has in the reasonable judgment of such management breached Section 6, 7 or 8 hereof, or (iv) is found to have committed any act of fraud, misappropriation of funds or embezzlement with respect to the Company.

No termination of this Consulting Agreement shall affect the obligations, promises or covenants contained herein which are expressly made to extend beyond the term of this Consulting Agreement, including, without limitation, as set forth under Section 6, 7 or 8 hereof. The effective date of termination of this Consulting Agreement is referred to as the "Termination Date".

6. Property; Confidentiality.

(a) Definitions. For the purposes of this Consulting Agreement the following terms shall have the meanings set forth below:

"Confidential Information" shall mean all information related to the business, operations, products or services of the Company, and all reports,

presentations, drawings, know-how, data, inventions, discoveries, improvements, ideas, plans, analysis, memoranda and other information or materials provided to Consultant by or on behalf of the Company and/or its subsidiaries and other affiliates, collectively and individually, or developed by Consultant in connection with Consultant's engagement by the Company (including, without 
limitation, the Work) or arising out of the Work, or preparation for it or other related activities.

	 
	 	 	 
	

	 

 "Work" shall mean all designs, plans, presentations, reports, know-how, data, inventions, discoveries, improvements, ideas, trademarks, copyrights, and other works of authorship, and all other materials, information, work or other intangible or intellectual property, collected, prepared, developed or edited by 
Consultant in the performance of or in connection with the Services.

 

For the purpose of this Section 5, the term "Company" shall include the Company and its respective subsidiaries and other affiliates, collectively and individually.

(b) Confidentiality. Consultant agrees to (i) refrain from using the Confidential Information for any purpose that would be adverse to the interests of the Company, and (ii) hold the Confidential Information strictly confidential and not disclose it to any person or entity other than the Company's employees or representatives. The foregoing obligations shall not apply to any information that (i) is publicly known at the time of its disclosure, (ii) is lawfully received by Consultant from a third party not under an obligation of
confidentiality to the Company, (iii) is published or otherwise made known to the public by the Company, or (iv) was generated independently by Consultant without reference to or the use of Confidential Information. Consultant's obligation under this subsection shall survive any termination of this Consulting Agreement.

(c) Return of Confidential Information. Consultant shall deliver promptly to the Company after the Termination Date, and at any other time as the Company may request, all Confidential Information, which shall at all times be and remain the property of the Company.

7. Non-Competition. The Consultant agrees that during the period in which he provides Services and for five (5) years after the Termination Date, without prior written permission from the Company, the Consultant will not use the Confidential Information, Work or other results of the Services in any manner which could directly or indirectly compete with the business of the Company. For purposes of the foregoing, the Consultant shall not, directly or indirectly, be engaged by or invest in any entity involved in the application of gluconate-based chemistry as a technique to reduce toxicity of, or increase efficacy of, pharmaceuticals (a "
Competitive Entity"), whether by way of becoming an agent, employee, director, officer, partner, stockholder, consultant or otherwise; provided, however, that the foregoing shall not prohibit the Consultant from merely investing in any entity competitive with the Company whose securities are listed on a national securities exchange, or traded in any established over-the-counter securities market.

	 
	 	 	 
	

	 

 8. Non-Solicitation. During the period in which Services are rendered and for a period of two (2) years immediately after the Termination Date, the Consultant shall not (i) either directly or indirectly solicit or take away, or attempt to solicit or take away employees of the Company, either for the Consultant's own business or for any other person or entity, or (ii) either directly or indirectly recruit, solicit or otherwise induce or influence any proprietor, partner, stockholder, lender, director, officer, employee, sales agent, joint venturer, investor, lessor, supplier, customer, agent, representative
or any other person which has a business relationship with the Company to discontinue, reduce or modify such employment, agency or business relationship with the Company.

9. Injunctive Relief. The Consultant acknowledges that a violation of Sections 6, 7 or 8 of this Consulting Agreement would cause irreparable harm to the Company for which no adequate remedy at law exists and the Consultant therefore acknowledges and agrees that, in addition to any other remedies available, the Company shall be entitled to injunctive relief to enforce the terms of this Consulting Agreement, without waiving available damages, remedies or other relief.

10. Independent Contractor. The Consultant is an independent contractor, and is not, and shall not be considered (by virtue of this Consulting Agreement or otherwise) an employee, agent, partner or joint venturer of the Company, whether for tax purposes or any other purpose. The Consultant is not authorized to act on behalf of the Company, and shall not have the right to bind the Company to any agreement with a third party or to incur any obligation or liability on behalf of the Company.

11. Dispute Resolution.

The parties shall follow the following dispute resolution processes in connection with any and all disputes, controversies or claims arising out of this Consulting Agreement:

(i) The Company and the Consultant (collectively, the "Parties" and individually, a "Party") shall attempt to settle any disputes through good faith negotiations between and among them.

(ii) If the Parties should fail to resolve the dispute within 30 days after the date of the initial demand for negotiation, then the Parties shall refer the matter to mediation conducted by JAMS/Endispute, Boston, Massachusetts office, or such other mediation service as the Parties may mutually agree upon, and shall attempt in good faith to settle the dispute before such mediation agency. Each Party shall bear its own expenses in connection with the mediation, and shall equally share the filing and other administrative fees of the mediation service. The Parties shall be represented in the mediation by representatives having final settlement authority over the matter in dispute.

	 
	 	 	 
	

	 

(iii) Any dispute not finally resolved within 90 days after the initial demand for negotiation shall be referred to the American Arbitration Association, Boston, Massachusetts Office ("AAA") for binding arbitration. Selection of one neutral arbitrator by the Parties shall be from the panel list provided by the AAA and in accordance with the appointment rules of the AAA. Each Party shall bear its own expenses in connection with any arbitration and the Parties shall equally share the filing and other administrative fees of the AAA and the expenses of the arbitrator; provided, however, that the prevailing Party shall be entitled to receive from the non-prevailing Party reimbursement of all expenses, including without limitation reasonable attorneys' fees, incurred in connection with any such arbitration proceeding.

12. Compliance by Consultant Personnel. Consultant represents and warrants that (i) it has informed and will inform such of its employees, agents or other personnel, if any, who perform Services as to the requirements of this Consulting Agreement and (ii) such employees, agents or other personnel shall have entered into such written agreements with Consultant in order to assure that the Company shall have the benefits of the rights and obligations under Sections 6, 7 and 8 hereof.

 13. Miscellaneous.

(a) Entire Agreement; Amendment. This Consulting Agreement constitutes the entire understanding of the parties with respect to its subject matter, may be modified only in a writing signed by both parties, and shall supersede any and all other agreements between them regarding such subject matter.

(b) No Assignment. This Consulting Agreement shall not be transferred or assigned by either party without the prior written consent of the other party.

(c) Waiver. Any waiver of a violation of this Consulting Agreement shall only constitute a waiver of that particular violation and shall not constitute a waiver of any different or continuing default. The exercise of any right or remedy provided in this Consulting Agreement shall be without prejudice to the right to exercise any other right or remedy provided by law or equity.

	 
	 	 	 
	

	 

(d) Notices. Any notice or other communication required or permitted to be made under this Consulting Agreement shall be sufficiently made or given on (i) date of personal delivery if delivered in person, (ii) the next day after sending if sent by fax or next-day courier service, or (iii) the third day after mailing if sent certified or registered mail or air mail, postage prepaid, and addressed to the other party at the address set forth on the first page of this Consulting Agreement or to any other address designated by the other party in writing.

(e) Governing Law. This Consulting Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without giving effect to its principles on conflict of laws.

[Remainder of Page Intentionally Left Blank]

 

 

 

	  
	 	 	 
	

	 

IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement as of the date and year first above written.

 

 

                                        INTEGRATED PHARMACEUTICALS, INC.

                                        By: 
/s/ Chinmay Chatterjee

                                          ------------------------------------------------------

                                            
   Chinmay Chatterjee

                                              
President

Subject to Exhibit “A” Common Stock Warrant expiration date being December 31, 2014.

                                        By: 
/s/ James Czirr

                                        
  --------------------------------------------------------

                                             
 James Czirr

	  
	 	 	 
	

	 

Exhibit A

 

COMMON STOCK WARRANT

 

 

INTEGRATED PHARMACEUTICALS, INC.

 

_______________________

 

 

NEITHER THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). NO SALE, TRANSFER OR OTHER DISPOSITION OF THIS WARRANT OR SAID SHARES MAY BE EFFECTED WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (ii) AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR (iii) RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED. 

 

 

Right to Purchase 472,000

Shares of Common Stock

 

        Integrated Pharmaceuticals, Inc., a [Delaware] corporation (the "Company"), hereby certifies that, for value received, James C. Czirr, an individual Consultant"), or any transferee to whom this warrant (the "Warrant
") is properly transferred in accordance with Section 3(c) below (Consultant or any such transferee, the "Holder"), is entitled, on the terms set forth below, to purchase from the Company four hundred seventy two thousand (472,000) fully paid and non-assessable shares of the common stock, par value $0.001 per share (the "Warrant Shares"), of the Company, at a price of $1.00 per share, subject to the vesting schedule, and subject to the adjustments as provided below (the "

Purchase Price"). As used herein, the term "Stock" shall mean the Company's presently authorized common stock or any stock into or for which such common stock may hereafter be converted or exchanged prior to or concurrent with the exercise of this Warrant. The Warrant shall vest and become exercisable only as follows, provided, in each case, that the Consultant continues to be a consultant of the Company on each applicable vesting date:

	
Date
	
Number of Shares

	
Effective Date
	
250,000

	
June 1, 2004
	
37,000

	
September 1, 2004
	
37,000

	
December 1, 2004
	
37,000

	
March 1, 2005
	
37,000

	
July 1, 2005
	
37,000

	
October 1, 2005
	
37,000

 

If the Consultant ceases to be a director before the warrant is fully vested, the warrant will vest, for the year in which such termination occurs, pro rata as of the termination date based on the amount that would have otherwise vested for the full year.

 

1. Expiration. This Warrant shall expire upon the first to occur of the following: (i) 5:00 p.m., Eastern Standard time, on December 31, 2014; and (ii) the sale of all or substantially all of the assets of the Company or an acquisition of the Company by another corporation or entity by consolidation, merger or other reorganization or series of related transactions in which the holders of the Company's outstanding voting stock immediately prior to such transaction own,
immediately after such transaction, securities representing less than fifty percent (50%) of the voting power of the surviving corporation, the surviving entity or the entity that controls such surviving entity (such sale of assets or acquisition, a "Merger or Consolidation"). 

 

	 
	 	 	 
	

	 

2. Exercise of Warrant. 

 

(a) Exercise. This Warrant may be exercised by the Holder for the number of vested Warrant Shares by surrendering this Warrant and the Notice of Exercise attached hereto as Exhibit A properly endorsed to the Company's principal office, accompanied by payment in cash, by check or by wire transfer in
an amount equal to the product of the Purchase Price and the number of Warrant Shares indicated on the face of this Warrant. 

 

(b) Taxes. The Company will not be required to pay any tax imposed in connection with any transfer involved in the issuance of a Warrant or a certificate for shares of Stock in any name other than that of the Consultant , and in such case, the Company will not be required to issue or deliver any stock certificate or warrant until such tax is paid. 

 

3.    Cancellation. [ Intentionally Omitted]

 

4.  Representations and Covenants of the Holder. This Warrant has been issued by the Company in reliance upon the following representations and covenants of the Holder: 

 

(a) Investment Purpose. The Stock issuable upon exercise of the Holder's rights contained herein will be acquired for investment and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption. 

 

(b) Private Issue. The Holder understands (i) that the Stock issuable upon exercise of this Warrant is not registered under the Act or qualified under applicable state securities laws on the ground that the issuance contemplated by this Warrant will be exempt from the registration and qualifications requirements thereof, and (ii) that the Company's reliance on such exemption is predicated on the representations set forth in this Section 3. 

 

(c) Disposition of Holder's Rights. This Warrant (and the Stock obtainable upon the exercises of this Warrant) is transferable only if (1) the transfer has been effectively registered under the Act and transferred by the Holder thereof in accordance with such registration, or (2) this Warrant (or the Warrant Shares) is sold without registration in compliance with Rule 144 under the Act or (3) in compliance with a no-action letter issued to the Holder by the staff of the Securities and Exchange Commission. Whenever this Warrant (or the Warrant Shares) may be sold pursuant to Rule 144(k),
the restrictions imposed herein shall terminate, and the Holder shall be entitled to receive from the Company, one or more new Warrants (or Stock certificates) not bearing any restrictive legend. 

 

(d) Financial Risk. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment. 

 

(e) Registration Rights Agreement. The Holder understands that its rights to have the Warrant Shares sold in a registered offering under the Act is governed by a Registration Rights Agreement between the Company and the Consultant dated contemporaneously with this Warrant; and that such Registration Rights Agreement imposes certain limitations on the ability of the Holder to sell the Warrant Shares. 

 

5.    Delivery of Stock Certificates on Exercise. Promptly after the exercise of this Warrant and the payment of the Purchase Price pursuant to Section 2(a)  the Company will issue to the Holder or upon the order of the Holder hereof, a certificate or certificates for the number of whole shares of Stock to which the Holder is entitled; provided, however,
 that (i) the Holder shall have furnished to the Company at the time of such exercise a signed Investment Representation Statement substantially in the form attached hereto as Exhibit B and (ii) the Company will place on each certificate the following legend: 

 

 

"THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THESE SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER THE ACT." 

 

 

Furthermore, the Company will place on each certificate any legend required by any applicable state blue sky law. 

 

 

	 
	 	 	 
	

	 

6.     Adjustments for Dividends in Other Stock or Property; Reclassifications. The Purchase Price and the number of Warrant Shares issuable upon exercise of this Warrant shall be appropriately and proportionately adjusted to reflect any stock dividend, stock split, combination of shares, reclassification, recapitalization, any corporate reorganization other than as provided in Section 1 hereof, or other similar event. 

 

 

7.     Certificate as to Adjustments. In each case of an adjustment in the Purchase Price or in the number of Warrant Shares receivable on the exercise of the Warrant, the Company, at its expense, will compute such adjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment and showing in detail the facts upon which the adjustment is based. The Company will mail a copy of each such certificate to the Holder
outstanding at that time. 

 

 

8.     Reservation of Stock Issuable on Exercise of Warrant. The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of this Warrant, all such shares of Stock and other stock, or such other stock, securities and property as from time to time are receivable upon the exercise of the Warrant. 

 

 

9.     Exchange or s Replacement of Warrant. Subject to the provisions of Section 3(c) above, upon surrender for exchange of this Warrant (in negotiable form, if not surrendered by the Holder named on the face thereof) to the Company at its principal office, the Company, at its expense, will issue and deliver a new Warrant or Warrants exercisable in the aggregate for the same number of shares of Stock, in the denomination or denominations requested, to
 or on the order of such Holder upon payment by such Holder of any applicable transfer taxes; provided, however, that any transferee of the Warrant shall be required to make the representations set forth in Exhibit B attached hereto. 

 

 

 Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement in such reasonable amount as the Company may determine, or (in the case of mutilation) upon surrender and cancellation thereof, the Company at its expense, will issue a replacement warrant in substantially identical form to this Warrant. 

 

 

	10.  	Miscellaneous. 

 

 

(a)   Notice. Notices to the Holder, shall be sent to the following address: 

 

Mr. James Czirr

425 Standish Dr.

Sandpoint, ID 83864

 

 

 

or at such other addresses provided to the Company by the Holder in writing. 

 

Notice to the Company should be sent to:

Integrated Pharmaceuticals, Inc.

56 Roland Street

Boston, Massachusetts 02129 

Facsimile: 617-629-2815

Attention: Chinmay Chatterjee, President

With a copy to:

Thomas C. Carey

Bromberg & Sunstein LLP

125 Summer Street

Boston, Massachusetts 02110 

 

or such other addresses provided to the Holder as the Company may request by notifying the Holder in writing. Any Notice shall be delivered in writing. Any such Notice shall be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one (1) business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one (1) business day after being deposited with an overnight courier service and (v) three (3) days after being deposited in the U.S. mail, First Class with postage prepaid. 

 

	 
	 	 	 
	

	 

 

(b)   Change; Waiver. Neither this Warrant nor any term hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. 

 

 

(c)  No Rights as Stockholder. This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to the exercise of this Warrant. 

 

 

(d)  Counterparts. This Warrant may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

 

 

(e)   Governing Law. This Warrant is delivered in the State of Delaware and shall be construed in accordance with and governed by the laws of such state. 

 

	
Dated: March 1, 2004
	
INTEGRATED PHARMACEUTICALS, INC. 

	
 
	
 

/s/ Chinmay Chatterjee

______________________________________________________________ 

Chinmay Chatterjee, President and CEO

	
 

 
	 
	
 

Agreed and accepted:
	
 

 

	
 

Dated: March 1, 2004
	 
	
 

 
	
/s/ James C. Czirr
_______________________________________________________

James C. Czirr

 

 

 

 

 

	  
	 	 	 
	

	 

 

EXHIBIT A

 

 

 

 

NOTICE OF EXERCISE 

 

TO: INTEGRATED PHARMACEUTICALS, INC. 

 

        1.     The undersigned hereby elects to purchase                          shares of Common Stock of Integrated Pharmaceuticals, Inc. pursuant to the terms of the attached Warrant. 

 

 

        2.     Exercise (Please initial the blank): 

 

	 	
 
	
The undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders herewith payment in full for the purchase price of the shares being purchased, together with all applicable transfer taxes, if any.

	 	
 

 
	 

 

3. Please issue a certificate, or certificates representing said shares of stock, in the name of the undersigned or in such other name as are specified below: 

	
 
	
 
	
_____________________________

(Name)
	
 
	
 

	
 
	
 
	 	
 
	
 

	
 
	
 
	
_____________________________

(Address)
	
 
	
 

 

4. The undersigned represents that the aforesaid shares of stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares. In support thereof, the undersigned has executed an Investment Representation Statement attached hereto as Exhibit B. 

 

	
 

 
	
 

 
	
 

_______________________________________________

Name of Warrant holder

	
 

 
	
 

 
	
 

_______________________________________________

Signature of Authorized Signatory

	
 

 
	
 

 
	
 

_______________________________________________

Print Name and Title

	
 

 
	
 

 
	
 

_______________________________________________

Date

	  
	 	 	 
	

	 

 

EXHIBIT B

 

 

INVESTMENT REPRESENTATION STATEMENT 

 

 

                                 Shares of Common Stock

of Integrated Pharmaceuticals, Inc. 

 

        In connection with the acquisition of the above-listed securities the undersigned hereby represents to Integrated Pharmaceuticals, Inc. (the "Company") as follows: 

 

 

1. The stock to be received upon the exercise of the Warrant (the Warrant Shares”) will be acquired for investment for its own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and it has no present intention of selling, granting participation in or otherwise distributing the same, but subject, nevertheless, to any requirement of law that
 the disposition of its property shall at all times be within its control. By executing this Statement, the undersigned further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer, or grant participations to such person or to any third person, with respect to the stock acquired upon exercise of the Warrant. 

 

2. The undersigned understands that upon issuance the sale of Warrant Shares will not be registered under the Securities Act of 1933, as amended (the "Act") on the ground that the issuance of securities is exempt pursuant to Section 4(2) of the Act and that the Company's reliance on such exemption is predicated on the undersigned's representations set forth herein. 

 

3. The undersigned agrees that in no event will it make a disposition of any Warrant Shares unless and until (i) it shall have notified the Company of the proposed disposition and shall have furnished the Company with a statement of the circumstances surrounding the proposed disposition, and (ii) if requested by the Company, it shall have furnished the Company with an opinion of counsel satisfactory to the Company to the effect that (A) appropriate action necessary for compliance with the Act and any applicable state securities laws has been taken or an exemption
 from the registration requirements of the Act and such laws is available, and (B) that the proposed transfer will not violate any of said laws. 

 

4. The undersigned represents that it is able to fend for itself in connection with its purchase of stock as contemplated by this Statement, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment and that it has the ability to bear the economic risks (including the risk of a total loss) of its investment. 

 

5. The undersigned acknowledges that the Warrant Shares must be held indefinitely unless subsequently registered under the Act or an exemption from such registration is available. The undersigned is aware of the provisions of Rule 144 promulgated under the Act which permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions as set forth therein. 

 

 

 

	
 

 
	
 

 
	
 

_______________________________________________

Name of Warrant holder

	
 

 
	
 

 
	
 

_______________________________________________

Signature of Authorized Signatory

	
 

 
	
 

 
	
 

_______________________________________________

Print Name and Title

	
 

 
	
 

 
	
 

_______________________________________________

DateUnassociated Document

Exhibit 10.5

Integrated Pharmaceuticals, Inc.

2002 STOCK PLAN

As Amended Through 

August 28, 2004

Background

The Board of Directors of Integrated Pharmaceuticals, Inc., a corporation organized under the laws of the State of Idaho, adopted a 2002 Stock Option Plan at a meeting held on December 16, 2002. On November 21, 2003, the Board of Directors amended the plan to (i) increase the number of shares covered by the Plan from 900,000 to 1,200,000, (ii) permit the issuance of an additional 300,000 shares of Stock under the Plan. On December 12, 2003, the Shareholders of Integrated Pharmaceuticals Inc. approved the 2002 Stock Plan. As of August 28, 2004, the Board of Directors voted to increase the number of shares of stock available under the 2002 Stock Plan to 1,600,000. The Plan provides as follows:

2002 Stock Plan

1.   Purpose. The purpose of this Integrated Pharmaceuticals, Inc. 2002 Stock Plan (the "Plan") is to advance the interests of Integrated Pharmaceuticals, Inc. (the "Company") by enhancing the Company's ability to attract
and retain employees and other parties who may contribute to the success of the Company or its subsidiary or parent corporations through ownership of the Company's common stock, $0.01 par value per share ("Common Stock").

The Plan accomplishes these goals by enabling the Company to grant stock, incentive stock options ("Incentive Stock Options"), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), and options that do not qualify as Incentive Stock Options ("Nonstatutory Stock Options
" or “Nonqualified Stock Option”). Incentive Stock Options and Nonstatutory Stock Options are hereafter individually referred to as an "Option" and collectively referred to as "Options").

2.  Definitions. The following definitions shall apply for the purposes of the Plan:

	
(a)  
	"Beneficiary" means the person, persons, trust or trusts which have been designated by an Optionee in his or her most recent written beneficiary designation filed with the Company to receive the benefits specified under the plan upon his or her death, or, if there is no designated Beneficiary or surviving designated Beneficiary, then the person, persons, trust or trusts entitled by will or the law of descent and distribution to receive such benefits. 

	 
	 	1 	 
	

	 

 

	
(b) 
	"Board" means the Board of Directors of the Company.

	 	 

	
(c) 
	"Code" means the Internal Revenue Code of 1986, as amended

	 	 

	
(d)  
	"Committee" means the Committee appointed by the Board of Directors in accordance withSection 3 of the Plan. 

	 	 

	
(e)  
	"Common Stock" means the common stock of Integrated Pharmaceuticals, Inc.

	 	 

	
(f) 
	"Company" means Integrated Pharmaceuticals, Inc., an Idaho corporation and any successor thereto. 

	 	 

	
(g) 
	"Continuous Status as an Employee" means the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of sick leave, maternity leave, infant care leave, medical emergency leave, military leave, or any other leave of absence authorized in writing by President or a Vice President of the Company prior to its commencement.

	 	 

	
(h) 
	"Employee" means any person, including officers, employed by the Company or any Parent or Subsidiary of the Company. 

	 	 

	
(i) 
	“Fair Market Value” per share of Stock as of a particular date means (i) the closing price per share of Stock on the national securities exchange on which the Stock is particularly traded, for the last preceding date on which there was sale of such Stock on such exchange, or (ii) if the share of Stock are not then traded in any such exchange, the average of the closing bid and the asked prices for the share of Stock quoted on the National Market System for the last preceding on which a sale of stock was recorded, or (iii) if the shares of stock are not then traded on a national securities exchange, such value as the Board or Committee, in its sole discretion, shall determine. 

	 	 

	
(j)   
	"Maximum Annual Employee Grant" means the maximum number of Shares with respect to which an Option or Options may be granted to any Employee in one taxable year of the Company as set forth in Section 5. 

	 	 

	
(k) 
	"Option Agreement" means any written agreement or document evidencing the grant of an option. 

	 	 

	
(l) 
	"Optionee" means an Employee who receives an Option.

	 	 

	
(m)  
	"Outside Director" shall have the same meaning as defined or interpreted for purposes of Section 162(m) of the Code. 

 

	 
	 	2 	 
	

	 

	
(n)  
	"Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code.

	 	 

	
(o)  
	"Permanent Disability" shall mean the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months as defined in Section 22 (e) (3) of the Code.

	 	 

	
(p)  
	"Plan" means this 2002 Stock Option Plan of Integrated Pharmaceuticals, Inc., including any amendments made from time to time. 

	 	 

	
(q) 
	"Share" means one share of Common Stock of the Company.

	 	 

	
(r) 
	"Subsidiary" means a "subsidiary corporation", whether now or hereafter existing, as defined in Section 424(f) of the Code, if such corporation, at the time of granting of an Option, owns stock possessing 50% or more of the total combined voting power of all classes of stock. 

	 	 

	
(s) 
	"Ten Percent Stockholder" means a prospective Optionee of the Company who, at the time an ISO is to be granted to such Optionee, owns (within the meaning of Section 422(b) (6) of the Code) Stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company. 

 3.  Administration. The Plan shall be administered by the Company's Board of Directors (the "Board"). The Board may, in its sole discretion, delegate some or all of its powers with respect to the Plan to a committee (the "Committee"), in which event all references (as appropriate) to the Board
hereunder shall be deemed to refer to the Committee. 

The Board shall have authority in its discretion, subject to and not inconsistent with the express provisions of the Plan and in addition to other authority granted under the Plan, to (a) grant Shares or Options at such time or times as it may choose; (b) determine the Employees to whom and the time or times at which Shares or Options shall be granted; (c) determine the type and size of each Option, including the number of Shares subject to the Option; (d) determine the fair market value of the Common Stock; (e) determine the exercise price per share of Options to be granted; (f) determine the terms and conditions of each Option; (g) to reduce the exercise price per share of the outstanding and unexercised Options; (h) to accelerate or defer (with the consent of the Optionee)
the exercise date of any Option; (i) waive compliance by a Participant (as defined in Section 6 hereof) with any obligations to be performed by the Participant under an Option and waive any term or condition of an Option; (j) amend or cancel an existing Option in whole or in part (and if an Option is canceled, grant another Option in its place on such terms as the Board shall specify), except that the Board may not, without the consent of the holder of an Option, take any action under this clause with respect to such Option if such action would adversely affect the rights of such holder; (k) prescribe the form or forms of instruments that are required or deemed appropriate under the Plan, including any written notices and elections required of Participants, and change such forms from time to time; (l) adopt, amend and rescind rules and regulations for the administration of the Plan; and (m) interpret the Plan and decide all questions and settle all controversies and disputes that may arise in connection with
 the administration of the Plan. Such determinations and actions of the Board, and all other determinations and actions of the Board made or taken under authority granted by any provision of the Plan, will be conclusive and will bind all parties. No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect to the Plan.

	 
	 	3 	 
	

	 

4.  Effective Date and Term of Plan. The Plan became effective on December 16, 2002 (the "Effective Date"). The increase in the number of shares covered by this Plan to 1,600,000 is effective as of August 28, 2004, provided that the Company's stockholders shall
 approve the increase in the size of the Plan within twelve (12) months of August 28, 2004. Options for more than a total of 1,200,000 shares may be granted prior to stockholder approval of the increase in the plan size, provided that such Options will be subject to such approval and will not be exercisable until such approval is granted. If the Company's stockholders do not approve the increase in the size of the Plan within the 12-month period, all Options granted under the Plan in excess of 1,200,000 shares shall terminate and be of no further force or effect.

The Plan shall terminate (i) when the total amount of Stock with respect to which Options may be granted shall have been issued the Options grated have been exercised, (ii) by action of the Board pursuant to Section 11 hereof, or (iii) ten (10) years after the Effective Date, whichever shall occur first.

No Options may be granted under the Plan after its termination, but Options previously granted may extend beyond that date.

5.   Shares Subject to the Plan. Subject to Section 9.6 below, one million six hundred thousand (1,600,000) shares of Stock may be delivered under the Plan. If any Option terminates or expires without having been exercised in full, the number of shares of Stock as to which such Option was not exercised will be available for future grants.

Stock delivered under the Plan may be either authorized but unissued Stock or previously issued Stock acquired by the Company and held in treasury. No fractional shares of Stock will be delivered under the Plan.

6.  Eligibility and Participation. Employees (each an "Employee" and collectively the "Employees"), directors,
advisors and consultants of the Company and the Company's parent and subsidiary corporations and others who may be in a position to contribute to the success of the Company or its parent or subsidiary corporations shall be eligible to receive Options and participate under the Plan (each a "Participant" and collectively the "Participants"), provided that Incentive Stock Options may only be granted to Employees of the Company and the Company's parent and subsidiary corporations and to directors who are also Employees. For the purposes of the Plan, a "parent corporation" means any corporation which owns,
directly or indirectly, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock of the Company, as more particularly defined in Section 424(e) of the Code, and a "subsidiary corporation" means any corporation in which the Company owns, directly or indirectly, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock, as more particularly defined in Section 424(f) of the Code.

	 
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7.  Grant of Options.

7.1.  Nature of Options. An Option is an agreement entitling the recipient on exercise thereof to purchase Stock at a specified exercise price. Both Incentive Stock Options and Nonqualified Stock Options may be granted under the Plan.

 

7.2.  Exercise Price. The exercise price of an Option will be determined by the Board subject to the following:

(a)  The exercise price of an Incentive Stock Option shall not be less than 100% (110% in the case of an Incentive Stock Option granted to a Ten Percent Stockholder) of the fair market value of the Stock subject to the Option, determined as of the time the Option is granted. The exercise price of a Nonqualified Stock Option may be less than, equal to, or greater than the fair market value per Share on the date of the grant. 

(b)  In no case may the exercise price paid for Stock which is part of an original issue of authorized Stock be less than the par value per share of the Stock.

(c)  The Board may reduce the exercise price of an Option at any time after the time of grant, but in the case of an Option originally awarded as an Incentive Stock Option, only with the consent of the Participant.

7.3.  Duration of Options. The period during which an Option may be exercised will be set forth in the Option Agreement, but in no event will an Option be exercisable in whole or in part (a) before the end of six (6) months following the date of the grant, (b) after the tenth anniversary (fifth anniversary, in the case of an Incentive Stock Option granted to a Ten Percent Stockholder) 
of the day immediately preceding the date the Option was granted, or such earlier date as may have been specified by the Board at the time the Option was granted

7.4.   Exercise of Options.  Except as provided in Section 8, no Option may be exercised unless the Optionee is at the time of such exercise in the employ of the Corporation and shall have been continuously so employed since the granting of the Option. 
An Option will become exercisable at such time or times, and on such conditions, as the Board may specify. The Board may at any time accelerate the time at which all or any part of the Option may be exercised. Any exercise of an Option must be in writing, signed by the proper person and delivered or mailed to the Company, accompanied by (a) any documents required by the Board and (b) payment in full in accordance with Section 7.5 below for the number of shares for which the Option is exercised. An Option may not be exercised for a fraction of a Share. 

7.5.   Payment for Stock. Stock purchased on exercise of an Option must be paid for as follows:

(a)  By cash or check (acceptable to the Company in accordance with guidelines established for this purpose), bank draft or money order payable to the order of the Company; or

	 
	 	5 	 
	

	 

(b)  If so permitted by the Board, in its sole discretion, by any one or more of the following:

	 	(1)	by delivery of shares of Stock which have been outstanding for at least six (6) months (unless the Board expressly approves a shorter period) and which have a fair market value on the last business day preceding the date of exercise equal to the exercise price;

	 	(2)	by delivery of a promissory note of the Participant to the Company, payable on such terms as are specified by the Board;

	 	 	 

	 	(3)	by delivery of an unconditional and irrevocable undertaking by a broker to deliver promptly to the Company sufficient funds to pay the exercise price;

	 	 	 

	 	(4)	by the withholding of shares of Stock otherwise deliverable upon exercise which have a fair market value on the date of exercise at least equal to the exercise price; or

	 	 	 

	 	(5)	by any combination of the permissible forms of payment; 

provided, however, that if the Stock delivered upon exercise of the Option is an original issue of authorized Stock, at least so much of the exercise price as represents the par value of such Stock must be paid other than by the Option holder's personal check or promissory note.    

7.6.  $100,000 Limitation. To the extent that the aggregate fair market value of Stock with respect to which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under the Plan and all other plans of the Company and all of the Company's parent and subsidiary corporations) exceeds $100,000, such Options shall be deemed Nonstatutory (Nonqualified) 
Stock Options.

7.7.  Discretionary Rate. If the market price of shares of Stock subject to an Option exceeds the exercise price of the Option at the time of its exercise, the Board may cancel the Option and cause, the Company to pay in cash to the person exercising the Option an amount equal to the difference between the fair market value of the Stock which would have been purchased pursuant to the exercise (determined on the date the Option is canceled) and the aggregate exercise price which would have been paid. The Board may exercise its discretion
 to take such action only if it has received a written request from the person exercising the Option, but such a request will not be binding on the Board.

7.8. Notice to Participant and Option Agreement. Upon granting an Option, the Board shall notify the person to whom the Option shall be granted and shall deliver to such person a written instrument in accordance with Section 9.1. An award of an Option shall immediately expire if the person to whom the Board has decided to grant an Option shall not have (and no Option shall be exercisable unless and until such person has) signed the written instrument and returned it to the Company within thirty days after it has been delivered to such individual.

	 
	 	6 	 
	

	 

8.  Events Affecting Options.

8.1.  Death or Disability. In case the Optionee’s employment or other relationship with the Company is terminated due to the death or permanent disability, each Option held by such Optionee immediately prior to death, to the extent then exercisable (except as otherwise provided by such Option, as amended), may be exercised by the Optionee’s executor or administrator or the person or persons to whom the Option is transferred by will or the applicable laws of descent and distribution at any time within the period following
the Participant's death or permanent disability (or such shorter or longer period as shall be provided in the Option, as amended), and shall thereupon terminate. In no event, however, shall an Option remain exercisable beyond the latest date on which it could have been exercised without regard to this Section 8. An Option held by a Participant immediately prior to his or her death or permanent disability that is not then exercisable shall terminate at death or permanent disability, unless otherwise provided by such Option. In case of permanent disability an Optionee (or Beneficiary) may exercise Options within eighteen (18) months only to the extent to the right to exercise that would have accrued if the Optionee had been in Continuous Status of Employment for a period of twelve (12) months prior to discontinuance working due permanent disability. 

 

8.2.  Termination of Employment (Other than by Death or Disability). If an Optionee who is an Employee and/or a director ceases to be an Employee and/or a director for any reason other than 
death or disability, or if there is a termination (other than by reason of death or disability) of the relationship in respect of which a consultant, advisor or other party was granted an Option hereunder (such termination of the employment or other relationship being hereinafter referred to as a "Status Change"), each Option held by the Optionee that was not exercisable immediately prior to the Status Change shall terminate at the time of the Status change, unless otherwise provided in the Option. An Option that was exercisable immediately prior to the Status Change will continue to be exercisable for a period of three (3) months (or such shorter or longer period as may be provided in the Option, as amended), unless the Status Change results from a discharge
 for cause that, in the opinion of the Board, casts such discredit
on the Optionee as to justify immediate termination of the Option. In no event, however, shall an Option remain exercisable beyond the latest date on which it could have been exercised without regard to this Section 8. For purposes of this Section, in the case of a Participant who is an Employee, a Status Change shall not be deemed to have resulted by reason of (i) a sick leave or other bona fide leave of absence approved for purposes of the Plan by the Board, so long as the Employee's right to reemployment is guaranteed either by statute or by contract, (ii) a transfer of employment between the Company and a subsidiary, parent or affiliate corporation or (iii) a transfer of employment to a corporation (or a parent or subsidiary corporation of such corporation) issuing or assuming an Option in a transaction to which Section 424(a) of the Code applies.

8.3.  Certain Corporate Transactions. In the event of a consolidation or merger in which the Company is not the surviving corporation or a transaction that results in the acquisition of all or substantially all of the Company's outstanding Stock by a single person or entity or by a group of persons and/or entities acting in concert or a consolidation or a merger where the Company is the surviving corporation but the stockholders of the Company immediately prior to such consolidation or merger do not own after such consolidation or merger
 shares representing fifty percent (50%) of the voting power of the Company, or in the event of the sale or transfer of all or substantially all the Company's assets or a dissolution or liquidation of the Company (a "covered transaction"), all outstanding Options will terminate as of the effective date of the covered transaction, and the following rules, alone or in combination, shall apply:

	 
	 	7 	 
	

	 

(a)  The Board may, in its sole discretion, by providing therefor at the time of the grant of an Option or by taking appropriate action at any other time prior to the effective date of the covered transaction, make outstanding Options exercisable in full by removing any performance or other conditions to which an Option is subject (including conditions relating to the mere passage of time and continued employment), which will not have been satisfied at the time of the covered transaction.

(b)  The Board may, in its sole discretion, cause the Company to pay in cash or in shares of Stock (at a price per share equal to the fair market value per share) to the Optionee an amount equal to the difference between the fair market value of the Stock that could have been purchased pursuant to the exercise of the Option determined on the date the Option is canceled and the aggregate exercise price that would have been paid had the Option been exercised on such date.

(c)  With respect to an outstanding Option held by an Optionee who, following the covered transaction, will be employed by or otherwise providing services to a corporation which is a surviving or acquiring corporation in such transaction or a parent, subsidiary or affiliate corporation of such a corporation, the Board may, in its sole discretion, arrange to have such surviving or acquiring corporation (or parent, subsidiary or affiliate corporation) grant to the Optionee a replacement option which, in the judgment of the Board, is substantially equivalent to the Option.

9.  General Provisions.

9.1.  Documentation of Options. Options will be evidenced by such written instruments, if any, as may be prescribed by the Board from time to time. Such instruments may be in the form of agreements to be executed by both the Optionee and the Company.

9.2.  Rights as a Stockholder. Dividend Equivalents. Except as specifically provided by the Plan, the receipt of an Option will not give an Optionee rights as a stockholder. An Optionee will obtain stockholder rights, subject to any limitations imposed by the Plan or the instrument evidencing the Option, only upon actual receipt of Stock. However, the Board may, on such conditions as it deems appropriate, provide that a Participant will receive a benefit in lieu of cash dividends that would have been payable on any
or all Stock subject to the Optionee’s Option had such Stock been outstanding. Without limitation, the Board may provide for payment to the Optionee of amounts representing such dividends, either currently or in the future, or for the investment of such amounts on behalf of the Optionee.

	 
	 	8 	 
	

	 

9.3.  Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to remove any restrictions from shares previously delivered under the Plan (a) until all conditions of the Option have been satisfied or removed, (b) until, in the opinion of the Company's counsel, all applicable federal and state laws and regulations have been complied with, including, without limitation, the Securities Act of 1933, as amended (the "
Securities Act"), and the Securities Exchange Act of 1934, as amended, (c) if the outstanding Stock is at the time listed on any stock exchange, until the shares to be delivered have been listed or authorized to be listed on such exchange upon official notice of issuance, and (d) until all other legal matters in connection with the issuance and delivery of such shares have been approved by the Company's counsel. If the sale of Stock has not been registered under the Securities Act, the Company may require, as a condition to exercise of the Option, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of the Securities Act and may require that the certificates evidencing such Stock bear an appropriate legend restricting transfer.

If an Option is exercised by the Optionee’s legal representative, the Company will be under no obligation to deliver Stock pursuant to such exercise until the Company is satisfied as to the authority of such representative.

9.4.   Tax Withholding. The Board will have the right to require an Optionee receiving Stock, an Option or Stock underlying an Option (or other appropriate person) to remit to the Company an amount sufficient to satisfy all federal, state and local withholding tax requirements (the "withholding requirements") arising in connection therewith, or to make other arrangements satisfactory to the Board. If and to the extent that such withholding is required, the Board may permit a Participant or such other person to elect at such time
 and in such manner as the Board provides to have the Company hold back from the shares to be delivered, or to deliver to the Company, Stock having a value calculated to satisfy the withholding requirement.

If at the time an Incentive Stock Option is exercised the Board determines that the Company could be liable for withholding requirements with respect to a disposition of the Stock received upon exercise, the Board may require as a condition of exercise that the person exercising the Incentive Stock Option agree (a) to inform the Company promptly of any disposition (within the meaning of Section 424(c) of the Code) of Stock received upon exercise, and (b) to give such security as the Board deems adequate to meet the potential liability of the Company for the withholding requirements and to augment such security from time to time in any amount reasonably deemed necessary by the Board to preserve the adequacy of such security.

9.5.  Nontransferability of Options. Unless otherwise determined by the Board and provided in the instrument evidencing the Option, the Option may not be transferred by an Optionee other than by will or by the laws of descent and distribution, and are exercisable, during a Participant's lifetime, only by such Optionee (or in the event of the Optionee’s incapacity, the person or persons legally appointed to act on the Optionee’s behalf)

9.6.  Adjustments in the Event of Certain Transactions.

	 
	 	9 	 
	

	 

(a)  In the event of a stock dividend, stock split or combination of shares, recapitalization or other change in the Company's capitalization, or other increase or reduction of the number of shares of Stock outstanding without receiving compensation therefore in money, services or property, after the effective date of the Plan, the Board will make any appropriate adjustments to the maximum number of shares that may be delivered under the Plan under Section 4 above.

(b)  In any event referred to in Section 9.6(a), the Board will also make any appropriate adjustments to the number and kind of shares of stock or securities subject to Options then outstanding or subsequently granted, any exercise prices relating to Options and any other provision of Options affected by such change. The Board may also make such adjustments to take into account material changes in law or in accounting practices or principles, mergers, consolidations, acquisitions, dispositions or similar corporate transactions, or any other event, if it is determined by the Board that adjustments are appropriate
 to avoid distortion in the operation of the Plan.

9.7.  Employment Rights, Etc. Neither the adoption of the Plan nor the grant of Options will confer upon any person any right to continued retention by the Company or any parent or subsidiary corporation of the Company as an Employee or otherwise, or affect in any way the right of the Company or any parent or subsidiary corporation of the Company to, terminate an employment, service or other relationship at any time. Except as specifically provided by the Board in any particular case, the loss of existing or potential profit in Options
granted under the Plan will not constitute an element of damages in the event of termination of an employment, service or other relationship, even if the termination is in violation of an obligation of the Company (or any parent, subsidiary or affiliate corporation) to the Participant.

10.  Restrictions on Stock. Stock granted hereunder or issuable upon exercise of an Option may be subject to restrictions and other agreements that the Company and the Participant may agree upon from time to time. Such restrictions and other agreements may be set forth in the instrument evidencing an Option or in a separate written agreement.

11.  Effect, Discontinuance, Cancellation, Amendment and Termination. Neither the adoption of the Plan nor the grant of Stock or Options to a Participant will affect the Company's right to grant to such Participant Stock or options that are not subject to the Plan, to issue to such Participant Stock as a bonus or otherwise, or to adopt other plans of arrangements under which Stock may be issued to Employees.
The Board may alter, amend, suspend or terminate the Plan, provided that no such action shall deprive a Optionee without his, her or its consent, of any Option granted pursuant to the Plan or any rights under such Option. Except as herein provided, no such action of the Board will, without the approval of the Company's stockholders, effectuate a change for which stockholder approval is required in order for the Plan to continue to qualify to grant Incentive Stock Options under Section 422 of the Code.

	 
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