Document:

China Skyrise Digital Services Inc.: -  Filed by newsfilecorp.com

Exhibit 10.1

CHINA SKYRISE DIGITAL SERVICE INC.
2011 EQUITY
INCENTIVE PLAN 

	1. 	
      Purposes of the Plan. China Skyrise Digital
      Service Inc., a Nevada corporation (the “Company”) hereby
      establishes the CHINA SKYRISE DIGITAL SERVICE INC. 2011 EQUITY INCENTIVE
      PLAN (the “Plan”). The purposes of this Plan are to attract and
      retain the best available personnel for positions of substantial
      responsibility, to provide additional incentive to Employees, Directors
      and Consultants, and to promote the long-term growth and profitability of
      the Company. The Plan permits the grant of Incentive Stock Options,
      Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units,
      Stock Appreciation Rights, Performance Units and Performance Shares as the
      Administrator may determine.

	 	 
	2. 	
      Definitions. The following definitions will apply
      to the terms in the Plan:

“Administrator” means the Board or any of its Committees
as will be administering the Plan, in accordance with Section 4. 

“Applicable Laws” means the requirements relating to the
administration of equity-based awards under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Awards are, or will be, granted under
the Plan. 

“Award” means, individually or collectively, a grant
under the Plan of Options, SARs, Restricted Stock, Restricted Stock Units,
Performance Units or Performance Shares. 

“Award Agreement” means the written or electronic
agreement setting forth the terms and provisions applicable to each Award
granted under the Plan. The Award Agreement is subject to the terms and
conditions of the Plan. 

	
    “Board” means the Board of Directors of the Company.
    

“Change in Control” means the occurrence of any of the
following events:

(i)           
Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange
Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the total voting power represented by the Company's
then outstanding voting securities; provided however, that for purposes of this
subsection (i) any acquisition of securities directly from the Company shall not
constitute a Change in Control; or 

(ii)            The
consummation of the sale or disposition by the Company of all or substantially
all of the Company's assets; 

(iii)           
A change in the composition of the Board occurring within a two-year period, as
a result of which fewer than a majority of the directors are Incumbent
Directors. “Incumbent Directors” means directors who either (A) are
Directors as of the effective date of the Plan, or (B) are elected, or nominated
for election, to the Board with the affirmative votes of at least a majority of
the Incumbent Directors at the time of such election or nomination (but will not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company); or 

(iv)           
The consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or its parent) at least fifty percent (50%)
of the total voting power represented by the voting securities of the Company or
such surviving entity or its parent outstanding immediately after such merger or
consolidation. 

For avoidance of doubt, a transaction will not constitute a
Change in Control if: (i) its sole purpose is the change the state of the
Company’s incorporation, or (ii) its sole purpose is to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company’s securities immediately before such transaction.

“Code” means the Internal Revenue Code of 1986, as
amended. Any reference in the Plan to a section of the Code will be a reference
to any successor or amended section of the Code. 

“Committee” means a committee of Directors or of other
individuals satisfying Applicable Laws appointed by the Board in accordance with
Section 4 hereof. 

“Common Stock” means the common stock of the Company.

“Company” means China Skyrise Digital Service Inc., a
Nevada corporation, or any successor thereto. 

“Consultant” means any person, including an advisor,
engaged by the Company or a Parent or Subsidiary to render services to such
entity. 

“Director” means a member of the Board. 

“Disability” means a medically determinable physical or
mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, and that either (1)
renders a Participant unable to engage in any substantial gainful activity or
(2) results in a Participant receiving income replacement benefits for a period
of not less than three months under an employee accident and health plan
covering the Participant. 

“Employee” means any person, including Officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company.
Neither service as a Director nor payment of a director's fee by the Company
will be sufficient to constitute “employment” by the Company. 

“Exchange Act” means the Securities Exchange Act of
1934, as amended. 

“Fair Market Value” means, as of any date, the value of
Common Stock determined as follows: 

(i)            If
the Common Stock is listed on any established stock exchange or a national
market system, including without limitation any division or subdivision of the
Nasdaq Stock Market, its Fair Market Value will be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system on the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable; 

(ii)            If
the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, including without limitation quotation through
the over the counter quotation service administered by the OTC Markets, LLC, the
Fair Market Value of a Share will be the mean between the high bid and low asked
prices for the Common Stock on the day of determination, as reported in The Wall
Street Journal or such other source as the Administrator deems reliable; or 

(iii)           
In the absence of an established market for the Common Stock, the Fair Market
Value will be determined in good faith by the Administrator, and to the extent
Section 15 applies (a) with respect to ISOs, the Fair Market Value shall be
determined in a manner consistent with Code section 422 or (b) with respect to
NSOs or SARs, the Fair Market Value shall be determined in a manner consistent
with Code section 409A.

“Fiscal Year” means the fiscal year of the Company. 

“Grant Date” means, for all purposes, the date on which
the Administrator determines to grant an Award, or such other later date as is
determined by the Administrator, provided that the Administrator cannot grant an
Award prior to the date the material terms of the Award are established. Notice
of the Administrator’s determination to grant an Award will be provided to each
Participant within a reasonable time after the Grant Date.

“Incentive Stock Option” or “ISO” means an Option that
by its terms qualifies and is otherwise intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations
promulgated thereunder. 

“Nonstatutory Stock Option” or “NSO” means an Option
that by its terms does not qualify or is not intended to qualify as an ISO. 

“Officer” means a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder. 

“Option” means a stock option granted pursuant to the
Plan. 

“Optioned Shares” means the Common Stock subject to an
Option.

“Optionee” means the holder of an outstanding Option.

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

“Participant” means the holder of an outstanding
Award.

“Performance Share” means an Award denominated in Shares
which may vest in whole or in part upon attainment of performance goals or other
vesting criteria as the Administrator may determine pursuant to Section
10. 

“Performance Unit” means an Award which may vest in
whole or in part upon attainment of performance goals or other vesting criteria
as the Administrator may determine and which may be settled for cash, Shares or
other securities or a combination of the foregoing pursuant to Section
10. 

“Period of Restriction” means the period during which
Shares of Restricted Stock are subject to forfeiture or restrictions on transfer
pursuant to Section 7. 

“Plan” means this 2011 Equity Incentive Plan.

“Restricted Stock” means Shares awarded to a Participant
which are subject to forfeiture and restrictions on transferability in
accordance with Section 7. 

“Restricted Stock Unit” means the right to receive one
Share at the end of a specified period of time, which right is subject to
forfeiture in accordance with Section 8 of the Plan. 

“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3.

“Section” means a paragraph or section of this Plan.

“Section 16(b)” means Section 16(b) of the Exchange Act.

“Service Provider” means an Employee, Director or
Consultant. 

“Share” means a share of the Common Stock, as adjusted
in accordance with Section 13. 

“Stock Appreciation Right” or “SAR” means the
right to receive payment from the Company in an amount no greater than the
excess of the Fair Market Value of a Share at the date the SAR is exercised over
a specified price fixed by the Administrator in the Award Agreement, which shall
not be less than the Fair Market Value of a Share on the Grant Date. In the case
of a SAR which is granted in connection with an Option, the specified price
shall be the Option exercise price.

“Subsidiary” means a “subsidiary corporation,” whether
now or hereafter existing, as defined in Section 424(f) of the Code. 

“Ten Percent Owner” means any Service Provider who is,
on the grant date of an ISO, the owner of Shares (determined with application of
ownership attribution rules of Code Section 424(d)) possessing more than 10% of
the total combined voting power of all classes of stock of the Company or any of
its Subsidiaries. 

	3. 	
      Stock Subject to the
Plan.

	 	a. 	
      Stock Subject to the Plan. Subject to the
      provisions of Section 13, the maximum aggregate number of Shares
      that may be issued under the Plan is Four Million (4,000,000) Shares. The
      Shares may be authorized but unissued, or reacquired Common
  Stock.

	 	 	 
	 	b. 	
      Lapsed Awards. If an Award expires or becomes
      unexercisable without having been exercised in full or, with respect to
      Restricted Stock, Restricted Stock Units, Performance Shares or
      Performance Units, is forfeited in whole or in part to the Company, the
      unpurchased Shares (or for Awards other than Options and SARs, the
      forfeited or unissued Shares) which were subject to the Award will become
      available for future grant or sale under the Plan (unless the Plan has
      terminated). With respect to SARs, only Shares actually issued pursuant to
      a SAR will cease to be available under the Plan; all remaining Shares
      subject to the SARs will remain available for future grant or sale under
      the Plan (unless the Plan has terminated). Shares that have actually been
      issued under the Plan under any Award will not be returned to the Plan and
      will not become available for future distribution under the Plan;
      provided, however, that if Shares issued pursuant to Awards of Restricted
      Stock, Restricted Stock Units, Performance Shares or Performance Units are
      forfeited to the Company, such Shares will become available for future
      grant under the Plan. Shares withheld by the Company to pay the exercise
      price of an Award or to satisfy tax withholding obligations with respect
      to an Award will become available for future grant or sale under the Plan.
      To the extent an Award under the Plan is paid out in cash rather than
      Shares, such cash payment will not result in reducing the number of Shares
      available for issuance under the Plan.

	 	 	 
	 	c. 	
      Share Reserve. The Company, during the term of
      this Plan, will at all times reserve and keep available such number of
      Shares as will be sufficient to satisfy the requirements of the
    Plan.

	4. 	
      Administration of the Plan.

	 	 	 
		a. 	
      Procedure. The Plan shall be administered by the
      Board or a Committee (or Committees) appointed by the Board, which
      Committee shall be constituted to comply with Applicable Laws. If and so
      long as the Common Stock is registered under Section 12(b) or 12(g) of the
      Exchange Act, the Board shall consider in selecting the Administrator and
      the membership of any committee acting as Administrator the requirements
      regarding: (i) “nonemployee directors” within the meaning of Rule 16b-3
      under the Exchange Act; (ii) “independent directors” as described in the
      listing requirements for any stock exchange on which Shares are listed;
      and (iii) Section 15(b)(i) of the Plan, if the Company pays
      salaries for which it claims deductions that are subject to the Code
      section 162(m) limitation on its U.S. tax returns. The Board may delegate
      the responsibility for administering the Plan with respect to designated
      classes of eligible Participants to different committees consisting of two
      or more members of the Board, subject to such limitations as the Board or
      the Administrator deems appropriate. Committee members shall serve for
      such term as the Board may determine, subject to removal by the Board at
      any time.

	 	b. 	
      Powers of the Administrator. Subject to the
      provisions of the Plan and the approval of any relevant authorities, and
      in the case of a Committee, subject to the specific duties delegated by
      the Board to such Committee, the Administrator will have the authority, in
      its discretion:

i.            to
determine the Fair Market Value; 

ii.            to
select the Service Providers to whom Awards may be granted hereunder; 

iii.            to
determine the number of Shares to be covered by each Award granted hereunder;

iv.            to
approve forms of agreement for use under the Plan; 

v.            to
determine the terms and conditions, not inconsistent with the terms of the Plan,
of any Award granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Awards may be exercised
(which may be based on continued employment, continued service or performance
criteria), any vesting acceleration (whether by reason of a Change of Control or
otherwise) or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Award or the Shares relating thereto, based in each
case on such factors as the Administrator, in its sole discretion, will
determine;

vi.            to
construe and interpret the terms of the Plan and Awards granted pursuant to the
Plan, including the right to construe disputed or doubtful Plan and Award
provisions;

vii.            to
prescribe, amend and rescind rules and regulations relating to the Plan;

viii.            to
modify or amend each Award (subject to Section 19(c)) to the extent any
modification or amendment is consistent with the terms of the Plan. The
Administrator shall have the discretion to extend the exercise period of Options
generally provided the exercise period is not extended beyond the earlier of the
original term of the Option or 10 years from the original grant date, or
specifically (1) if the exercise period of an Option is extended (but to no more
than 10 years from the original grant date) at a time when the exercise price
equals or exceeds the fair market value of the Optioned Shares or (2) an Option
cannot be exercised because such exercise would violate Applicable Laws,
provided that the exercise period is not extended more than 30 days after the
exercise of the Option would no longer violate Applicable Laws.

ix.            to
allow Participants to satisfy withholding tax obligations in such manner as
prescribed in Section 14; 

x.            to
authorize any person to execute on behalf of the Company any instrument required
to effect the grant of an Award previously granted by the Administrator; 

xi.            to
delay issuance of Shares or suspend Participant’s right to exercise an Award as
deemed necessary to comply with Applicable Laws; and

xii.            to
make all other determinations deemed necessary or advisable for administering
the Plan.

c.            Effect
of Administrator’s Decision. The Administrator’s decisions, determinations
and interpretations will be final and binding on all Participants and any other
holders of Awards. Any decision or action taken or to be taken by the
Administrator, arising out of or in connection with the construction,
administration, interpretation and effect of the Plan and of its rules and
regulations, shall, to the maximum extent permitted by Applicable Laws, be
within its absolute discretion (except as otherwise specifically provided in the
Plan) and shall be final, binding and conclusive upon the Company, all
Participants and any person claiming under or through any Participant. 

	5. 	
      Eligibility. NSOs, Restricted Stock, Restricted
      Stock Units, SARs, Performance Units and Performance Shares may be granted
      to Service Providers. ISOs may be granted as specified in Section
      15(a).

	 	 
	6. 	
      Stock Options.

a.            Grant
of Options. Subject to the terms and conditions of the Plan, the
Administrator, at any time and from time to time, may grant Options to Service
Providers in such amounts as the Administrator will determine in its sole
discretion. For purposes of the foregoing sentence, Service Providers shall
include prospective employees or consultants to whom Options are granted in
connection with written offers of employment or engagement of services,
respectively, with the Company; provided that no Option granted to a prospective
employee or consultant may be exercised prior to the commencement of employment
or services with the Company. The Administrator may grant NSOs, ISOs, or any
combination of the two. ISOs shall be granted in accordance with Section
15(a) of the Plan.

b.            Option
Award Agreement. Each Option shall be evidenced by an Award Agreement that
shall specify the type of Option granted, the Option price, the exercise date,
the term of the Option, the number of Shares to which the Option pertains, and
such other terms and conditions (which need not be identical among Participants)
as the Administrator shall determine in its sole discretion. If the Award
Agreement does not specify that the Option is to be treated as an ISO, the
Option shall be deemed a NSO.

c.            Exercise
Price. The per Share exercise price for the Shares to be issued pursuant to
exercise of an Option will be no less than the Fair Market Value per Share on
the Grant Date.

d.            Term
of Options. The term of each Option will be stated in the Award Agreement.
Unless terminated sooner in accordance with the remaining provisions of this
Section 6, each Option shall expire either ten (10) years after the Grant Date,
or after a shorter term as may be fixed by the Board.

	 	e. 	
      Time and Form of Payment.

i.            Exercise
Date. Each Award Agreement shall specify how and when Shares covered by an
Option may be purchased. The Award Agreement may specify waiting periods, the
dates on which Options become exercisable or “vested” and, subject to the
termination provisions of this section, exercise periods. The Administrator may
accelerate the exercisability of any Option or portion thereof.

ii.            Exercise
of Option. Any Option granted hereunder will be exercisable according to the
terms of the Plan and at such times and under such conditions as determined by
the Administrator and set forth in the Award Agreement. An Option may not be
exercised for a fraction of a Share. An Option will be deemed exercised when the
Company receives: (1) notice of exercise (in such form as the Administrator
shall specify from time to time) from the person entitled to exercise the
Option, and (2) full payment for the Shares with respect to which the Option is
exercised (together with all applicable withholding taxes). Full payment may
consist of any consideration and method of payment authorized by the
Administrator and permitted by the Award Agreement and the Plan (together with
all applicable withholding taxes). Shares issued upon exercise of an Option will
be issued in the name of the Optionee or, if requested by the Optionee, in the
name of the Optionee and his or her spouse. Until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a stockholder will exist with respect to the Optioned
Shares, notwithstanding the exercise of the Option. The Company will issue (or
cause to be issued) such Shares promptly after the Option is exercised. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section
13. 

iii.            Payment.
The Administrator will determine the acceptable form of consideration for
exercising an Option, including the method of payment. Such consideration may
consist entirely of:

(1)            cash;

(2)            check;

(3)            to
the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a
promissory note;

(4)            other
Shares, provided Shares have a Fair Market Value on the date of surrender equal
to the aggregate exercise price of the Shares as to which said Option will be
exercised;

(5)            to
the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, in
accordance with any broker-assisted cashless exercise procedures approved by the
Company and as in effect from time to time; 

(6)            by
asking the Company to withhold Shares from the total Shares to be delivered upon
exercise equal to the number of Shares having a value equal to the aggregate
Exercise Price of the Shares being acquired; 

(7)            any
combination of the foregoing methods of payment; or

(8)            such
other consideration and method of payment for the issuance of Shares to the
extent permitted by Applicable Laws. 

f.           
Forfeiture of Options. All unexercised Options shall be forfeited to the
Company in accordance with the terms and conditions set forth in the Award
Agreement and again will become available for grant under the Plan.

	7. 	
      Restricted Stock.

a.            Grant
of Restricted Stock. Subject to the terms and conditions of the Plan, the
Administrator, at any time and from time to time, may grant Shares of Restricted
Stock to Service Providers in such amounts as the Administrator will determine
in its sole discretion. 

b.            Restricted
Stock Award Agreement. Each Award of Restricted Stock will be evidenced by
an Award Agreement that will specify the Period of Restriction, the number of
Shares granted, and such other terms and conditions (which need not be identical
among Participants) as the Administrator will determine in its sole discretion.
Unless the Administrator determines otherwise, the Company as escrow agent will
hold Shares of Restricted Stock until the restrictions on such Shares have
lapsed.

c.            Vesting
Conditions and Other Terms.

i.            Vesting
Conditions. The Administrator, in its sole discretion, may impose such
conditions on the vesting of Shares of Restricted Stock as it may deem advisable
or appropriate, including but not limited to, achievement of Company-wide,
business unit, or individual goals (including, but not limited to, continued
employment or service), or any other basis determined by the Administrator in
its discretion. The Administrator, in its discretion, may accelerate the time at
which any restrictions will lapse or be removed. The Administrator may, in its
discretion, also provide for such complete or partial exceptions to an
employment or service restriction as it deems equitable.

ii.            Voting
Rights. During the Period of Restriction, Service Providers holding Shares
of Restricted Stock granted hereunder may exercise full voting rights with
respect to those Shares, unless the Administrator determines otherwise. 

iii.        
Dividends and Other Distributions. During the Period of Restriction,
Service Providers holding Shares of Restricted Stock will be entitled to receive
all dividends and other distributions paid with respect to such Shares, unless
the Administrator determines otherwise. If any such dividends or distributions
are paid in Shares, the Shares will be subject to the same restrictions on
transferability and forfeitability as the Shares of Restricted Stock with
respect to which they were paid. 

iv.         
Transferability. Except as provided in this Section, Shares of Restricted
Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated until the end of the applicable Period of Restriction.

d.           
Removal of Restrictions. All restrictions imposed on Shares of Restricted
Stock shall lapse and the Period of Restriction shall end upon the satisfaction
of the vesting conditions imposed by the Administrator. Vested Shares of
Restricted Stock will be released from escrow as soon as practicable after the
last day of the Period of Restriction or at such other time as the Administrator
may determine, but in no event later than the 15th day of the third
month following the end of the year in which vesting occurred. 

e.           
Forfeiture of Restricted Stock. On the date set forth in the Award
Agreement, the Shares of Restricted Stock for which restrictions have not lapsed
will be forfeited and revert to the Company and again will become available for
grant under the Plan. 

	8. 	
      Restricted Stock Units.

a.            Grant
of Restricted Stock Units. Subject to the terms and conditions of the Plan,
the Administrator, at any time and from time to time, may grant Restricted Stock
Units to Service Providers in such amounts as the Administrator will determine
in its sole discretion.

b.            Restricted
Stock Units Award Agreement. Each Award of Restricted Stock Units will be
evidenced by an Award Agreement that will specify the number of Restricted Stock
Units granted, vesting criteria, form of payout, and such other terms and
conditions (which need not be identical among Participants) as the Administrator
will determine in its sole discretion.

c.            Vesting
Conditions. The Administrator shall set vesting criteria in its discretion,
which, depending on the extent to which the criteria are met, will determine the
number of Restricted Stock Units that will be paid out to the Participant. The
Administrator may set vesting criteria based upon the achievement of
Company-wide, business unit, or individual goals (including, but not limited to,
continued employment or service), or any other basis determined by the
Administrator in its discretion. At any time after the grant of Restricted Stock
Units, the Administrator, in its sole discretion, may reduce or waive any
vesting criteria that must be met to receive a payout.

d.            Time
and Form of Payment. Upon satisfaction of the applicable vesting conditions,
payment of vested Restricted Stock Units shall occur in the manner and at the
time provided in the Award Agreement, but in no event later than the
15th day of the third month following the end of the year in which
vesting occurred. Except as otherwise provided in the Award Agreement,
Restricted Stock Units may be paid in cash, Shares, or a combination thereof at
the sole discretion of the Administrator. Restricted Stock Units that are fully
paid in cash will not reduce the number of Shares available for issuance under
the Plan.

e.            Forfeiture
of Restricted Stock Units. All unvested Restricted Stock Units shall be
forfeited to the Company on the date set forth in the Award Agreement and again
will become available for grant under the Plan. 

	9. 	
      Stock Appreciation Rights.

a.           
Grant of SARs. Subject to the terms and conditions of the Plan, the
Administrator, at any time and from time to time, may grant SARs to Service
Providers in such amounts as the Administrator will determine in its sole
discretion.

b.            Award
Agreement. Each SAR grant will be evidenced by an Award Agreement that will
specify the exercise price, the number of Shares underlying the SAR grant, the
term of the SAR, the conditions of exercise, and such other terms and conditions
(which need not be identical among Participants) as the Administrator will
determine in its sole discretion.

c.            Exercise
Price and Other Terms. The per Share exercise price for the exercise of an
SAR will be no less than the Fair Market Value per Share on the Grant Date.

d.            Time
and Form of Payment of SAR Amount. Upon exercise of a SAR, a Participant
will be entitled to receive payment from the Company in an amount no greater
than: (i) the difference between the Fair Market Value of a Share on the date of
exercise over the exercise price; times (ii) the number of Shares with respect
to which the SAR is exercised. An Award Agreement may provide for a SAR to be
paid in cash, Shares of equivalent value, or a combination thereof.

e.            Forfeiture
of SARs. All unexercised SARs shall be forfeited to the Company in
accordance with the terms and conditions set forth in the Award Agreement and
again will become available for grant under the Plan. 

	10. 	
      Performance Units and Performance
  Shares.

a.            Grant
of Performance Units and Performance Shares. Performance Units or
Performance Shares may be granted to Service Providers at any time and from time
to time, as will be determined by the Administrator, in its sole discretion. The
Administrator will have complete discretion in determining the number of
Performance Units and Performance Shares granted to each Participant.

b.            Award
Agreement. Each Award of Performance Units and Shares will be evidenced by
an Award Agreement that will specify the initial value, the Performance Period,
the number of Performance Units or Performance Shares granted, and such other
terms and conditions (which need not be identical among Participants) as the
Administrator will determine in its sole discretion.

c.            Value
of Performance Units and Performance Shares. Each Performance Unit will have
an initial value that is established by the Administrator on or before the Grant
Date. Each Performance Share will have an initial value equal to the Fair Market
Value of a Share on the Grant Date. 

d.           
Vesting Conditions and Performance Period. The Administrator will set
performance objectives or other vesting provisions (including, without
limitation, continued status as a Service Provider) in its discretion which,
depending on the extent to which they are met, will determine the number or
value of Performance Units or Performance Shares that will be paid out to the
Service Providers. The time period during which the performance objectives or
other vesting provisions must be met will be called the “Performance Period.”
The Administrator may set performance objectives based upon the achievement of
Company-wide, divisional, or individual goals or any other basis determined by
the Administrator in its discretion. 

e.            Time
and Form of Payment. After the applicable Performance Period has ended, the
holder of Performance Units or Performance Shares will be entitled to receive a
payout of the number of vested Performance Units or Performance Shares by the
Participant over the Performance Period, to be determined as a function of the
extent to which the corresponding performance objectives or other vesting
provisions have been achieved. Vested Performance Units or Performance Shares
will be paid as soon as practicable after the expiration of the applicable
Performance Period, but in no event later than the 15th day of the
third month following the end of the year the applicable Performance Period
expired. An Award Agreement may provide for the satisfaction of Performance Unit
or Performance Share Awards in cash or Shares (which have an aggregate Fair
Market Value equal to the value of the vested Performance Units or Performance
Shares at the close of the applicable Performance Period) or in a combination
thereof.

f.            Forfeiture
of Performance Units and Performance Shares. All unvested Performance Units
or Performance Shares will be forfeited to the Company on the date set forth in
the Award Agreement, and again will become available for grant under the Plan.

	11. 	
      Leaves of Absence/Transfer Between Locations.
      Unless the Administrator provides otherwise or as required by Applicable
      Laws, vesting of Awards will be suspended during any unpaid leave of
      absence. An Employee will not cease to be an Employee in the case of (i)
      any leave of absence approved by the Company or (ii) transfers between
      locations of the Company or between the Company, its Parent, or any
      Subsidiary.

	 	 
	12. 	
      Transferability of Awards. Unless determined
      otherwise by the Administrator, an Award may not be sold, pledged,
      assigned, hypothecated, transferred, or disposed of in any manner other
      than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Participant, only by the Participant. If the
Administrator makes an Award transferable, such Award will contain such
additional terms and conditions as the Administrator deems appropriate.

	13. 	
      Adjustments; Dissolution or Liquidation; Merger or
      Change in Control.

a.            Adjustments.
In the event that any dividend or other distribution (whether in the form of
cash, Shares, other securities, or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase, or exchange of Shares or other securities of
the Company, or other change in the corporate structure of the Company affecting
the Shares occurs, the Administrator, in order to prevent diminution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan, shall appropriately adjust the number and class of Shares that
may be delivered under the Plan and/or the number, class, and price of Shares
covered by each outstanding Award.

b.            Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of
the Company, the Administrator will notify each Participant as soon as
practicable prior to the effective date of such proposed transaction. To the
extent it has not been previously exercised, an Award will terminate immediately
prior to the consummation of such proposed action. 

c.            Change
in Control. In the event of a merger or Change in Control, any or all
outstanding Awards may be assumed by the successor corporation, which assumption
shall be binding on all Participants. In the alternative, the successor
corporation may substitute equivalent Awards (after taking into account the
existing provisions of the Awards). The successor corporation may also issue, in
place of outstanding Shares of the Company held by the Participant,
substantially similar shares or other property subject to vesting requirements
and repurchase restrictions no less favorable to the Participant than those in
effect prior to the merger or Change in Control.

In the event that the successor corporation does not assume or
substitute for the Award, unless the Administrator provides otherwise, the
Participant will fully vest in and have the right to exercise all of his or her
outstanding Options and SARs, including Shares as to which such Awards would not
otherwise be vested or exercisable, all restrictions on Restricted Stock and
Restricted Stock Units will lapse, and, with respect to Performance Shares and
Performance Units, all Performance Goals or other vesting criteria will be
deemed achieved at target levels and all other terms and conditions met. In
addition, if an Option or SAR is not assumed or substituted in the event of a
Change in Control, the Administrator will notify the Participant in writing or
electronically that the Option or SAR will be exercisable for a period of time
determined by the Administrator in its sole discretion, and the Option or SAR
will terminate upon the expiration of such period. 

For the purposes of this Section 13(c), an Award will be
considered assumed if, following the Change in Control, the Award confers the
right to purchase or receive, for each Share subject to the Award immediately
prior to the Change in Control, the consideration (whether stock, cash, or other
securities or property) or, in the case of a SAR upon the exercise of which the
Administrator determines to pay cash or a Performance Share or Performance Unit
which the Administrator can determine to pay in cash, the fair market value of
the consideration received in the merger or Change in Control by holders of
Common Stock for each Share held on the effective date of the transaction (and
if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided,
however, that if such consideration received in the Change in Control is not
solely common stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon the exercise of an Option or SAR or upon
the payout of a Restricted Stock Unit, Performance Share or Performance Unit,
for each Share subject to such Award (or in the case of Restricted Stock Units
and Performance Units, the number of implied shares determined by dividing the
value of the Restricted Stock Units and Performance Units, as applicable, by the per share
consideration received by holders of Common Stock in the Change in Control), to
be solely common stock of the successor corporation or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock
in the Change in Control. 

Notwithstanding anything in this Section 13(c) to the
contrary, an Award that vests, is earned or paid-out upon the satisfaction of
one or more performance goals will not be considered assumed if the Company or
its successor modifies any of such performance goals without the Participant's
consent; provided, however, a modification to such performance goals only to
reflect the successor corporation's post-Change in Control corporate structure
will not be deemed to invalidate an otherwise valid Award assumption.

	14. 	
      Tax Withholding.

a.            Withholding
Requirements. Prior to the delivery of any Shares or cash pursuant to an
Award (or exercise thereof), the Company will have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy federal, state, local, foreign or other taxes required by
Applicable Laws to be withheld with respect to such Award (or exercise thereof).

b.            Withholding
Arrangements. The Administrator, in its sole discretion and pursuant to such
procedures as it may specify from time to time, may permit a Participant to
satisfy such tax withholding obligation, in whole or in part by (without
limitation) (i) paying cash, (ii) electing to have the Company withhold
otherwise deliverable Shares having a Fair Market Value equal to the amount
required to be withheld, or (iii) delivering to the Company already-owned Shares
having a Fair Market Value equal to the amount required to be withheld. The
amount of the withholding requirement will be deemed to include any amount which
the Administrator agrees may be withheld at the time the election is made. The
Fair Market Value of the Shares to be withheld or delivered will be determined
as of the date that the taxes are required to be withheld. 

	15. 	
      Provisions Applicable In the Event the Company or the
      Service Provider is Subject to U.S.
Taxation.

	 	a. 	
      Grant of Incentive Stock Options. If the
      Administrator grants Options to Employees subject to U.S. taxation, the
      Administrator may grant such Employee an ISO and the following terms shall
      also apply:

i.           
Maximum Amount. Subject to the provisions of Section 13, to the
extent consistent with Section 422 of the Code, not more than an aggregate of
Four Million (4,000,000) Shares may be issued as ISOs under the Plan.

ii.            General
Rule. Only Employees shall be eligible for the grant of ISOs.

iii.          
Continuous Employment. The Optionee must remain in the continuous employ
of the Company or its Subsidiaries from the date the ISO is granted until not
more than three months before the date on which it is exercised. A leave of
absence approved by the Company may exceed ninety (90) days if reemployment upon
expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so
guaranteed, then three (3) months following the ninety-first (91st) day of such
leave any ISO held by the Optionee will cease to be treated as an ISO.

iv.             Award Agreement.

(1)            The
Administrator shall designate Options granted as ISOs in the Award Agreement.
Notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which ISOs are exercisable for the first
time by the Optionee during any calendar year (under all plans of the Company
and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000),
Options will not qualify as an ISO. For purposes of this section, ISOs will be
taken into account in the order in which they were granted. The Fair Market
Value of the Shares will be determined as of the time the Option with respect to
such Shares is granted. 

(2)            The
Award Agreement shall specify the term of the ISO. The term shall not exceed ten
(10) years from the Grant Date or five (5) years from the Grant Date for Ten
Percent Owners.

(3)            The
Award Agreement shall specify an exercise price of not less than the Fair Market
Value per Share on the Grant Date or one hundred ten percent (110%) of the Fair
Market Value per Share on the Grant Date for Ten Percent Owners. 

(4)            The
Award Agreement shall specify that an ISO is not transferable except by will,
beneficiary designation or the laws of descent and distribution.

v.            Form
of Payment. The consideration to be paid for the Shares to be issued upon
exercise of an ISO, including the method of payment, shall be determined by the
Administrator at the time of grant in accordance with Section
6(e)(iii).

vi.            “Disability,”
for purposes of an ISO, means total and permanent disability as defined in
Section 22(e)(3) of the Code.

vii.            Notice.
In the event of any disposition of the Shares acquired pursuant to the exercise
of an ISO within two years from the Grant Date or one year from the exercise
date, the Optionee will notify the Company thereof in writing within thirty (30)
days after such disposition. In addition, the Optionee shall provide the Company
with such information as the Company shall reasonably request in connection with
determining the amount and character of Optionee’s income, the Company’s
deduction, and the Company’s obligation to withhold taxes or other amounts
incurred by reason of a disqualifying disposition, including the amount
thereof.

	 	b. 	
      Performance-based Compensation. If the Company
      pays salaries for which it claims deductions that are subject to the Code
      section 162(m) limitation on its U.S. tax returns, then the following
      terms shall be applied in a manner consistent with the requirements of,
      and only to the extent required for compliance with, the exclusion from
      the limitation on deductibility of compensation under Code Section
      162(m):

i.            Outside
Directors. The Board shall consider in selecting the Administrator and the
membership of any committee acting as Administrator the provisions regarding
“outside directors” within the meaning of Code Section 162(m).

ii.           Maximum Amount.

(1)            Subject
to the provisions of Section 13, the maximum number of Shares that can be
awarded to any individual Participant in the aggregate in any one fiscal year of
the Company is Four Million (4,000,000) Shares;

(2)            For
Awards denominated in Shares and satisfied in cash, the maximum Award to any
individual Participant in the aggregate in any one fiscal year of the Company is
the Fair Market Value of Four Million (4,000,000) Shares on the Grant Date;
and

(3)            The
maximum amount payable pursuant to any cash Awards to any individual Participant
in the aggregate in any one fiscal year of the Company is the Fair Market Value
of Four Million (4,000,000) Shares on the Grant Date. 

iii.            Performance
Criteria. All performance criteria must be objective and be established in
writing prior to the beginning of the performance period or at later time as
permitted by Code Section 162(m). Performance criteria may include alternative
and multiple performance goals and may be based on one or more business and/or
financial criteria. In establishing the performance goals, the Committee in its
discretion may include one or any combination of the following criteria in
either absolute or relative terms, for the Company or any Subsidiary: 

(1)            Increased
revenue; 

(2)            Net
income measures (including but not limited to income after capital costs and
income before or after taxes);

(3)            Stock
price measures (including but not limited to growth measures and total
stockholder return); 

(4)            Market
share; 

(5)            Earnings
per Share (actual or targeted growth); 

(6)            Earnings
before interest, taxes, depreciation, and amortization (“EBITDA”); 

(7)            Cash
flow measures (including but not limited to net cash flow and net cash flow
before financing activities); 

(8)            Return
measures (including but not limited to return on equity, return on average
assets, return on capital, risk-adjusted return on capital, return on investors’
capital and return on average equity); 

(9)            Operating
measures (including operating income, funds from operations, cash from
operations, after-tax operating income, sales volumes, production volumes, and
production efficiency); 

(10)          Expense
measures (including but not limited to overhead cost and general and
administrative expense); 

(11)          Margins;

(12)          Stockholder
value; 

(13)          Total
stockholder return; 

(14)          Proceeds
from dispositions; 

(15)          Production
volumes; 

(16)          Total market value; and 

(17)          Corporate values measures
(including but not limited to ethics compliance, environmental, and safety). 

	 	c. 	
      Stock Options and SARs Exempt from Code section
      409A. If the Administrator grants Options or SARs to Employees subject
      to U.S. taxation the Administrator may not modify or amend the Options or
      SARs to the extent that the modification or amendment adds a feature
      allowing for additional deferral within the meaning of Code section
      409A.

	16. 	
      No Effect on Employment or Service. Neither the
      Plan nor any Award will confer upon any Participant any right with respect
      to continuing the Participant's relationship as a Service Provider with
      the Company or any Parent or Subsidiary of the Company, nor will they
      interfere in any way with the Participant's right or the Company's or its
      Parent’s or Subsidiary’s right to terminate such relationship at any time,
      with or without cause, to the extent permitted by Applicable
  Laws.

	 	 
	17. 	
      Effective Date. The Plan’s effective date is the
      date on which it is adopted by the Board, so long as it is approved by the
      Company’s stockholders at any time within 12 months of such adoption. Upon
      approval of the Plan by the stockholders of the Company, all Awards issued
      pursuant to the Plan on or after the Effective Date shall be fully
      effective as if the stockholders of the Company had approved the Plan on
      the Effective Date. If the stockholders fail to approve the Plan within
      one year before or after the Effective Date, any Awards made hereunder
      shall be null and void and of no effect.

	 	 
	18. 	
      Term of Plan. The Plan will terminate 10 years
      following the earlier of (i) the date it was adopted by the Board or (ii)
      the date it became effective upon approval by stockholders of the Company,
      unless sooner terminated by the Board pursuant to Section
  19.

	 	 
	19. 	
      Amendment and Termination of the
  Plan.

a.            Amendment
and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan. 

b.            Stockholder
Approval. The Company will obtain stockholder approval of any Plan amendment
to the extent necessary and desirable to comply with Applicable Laws.

c.            Effect
of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan will impair the rights of any Participant, unless
mutually agreed otherwise between the Participant and the Administrator, which
agreement must be in writing and signed by the Participant and the Company.
Termination of the Plan will not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Awards granted under the Plan
prior to the date of such termination. 

	20. 	
      Conditions Upon Issuance of
  Shares.

a.            Legal
Compliance. The Administrator may delay or suspend the issuance and delivery
of Shares, suspend the exercise of Options or SARs, or suspend the Plan as
necessary to comply Applicable Laws. Shares will not be issued pursuant to the
exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares will comply with Applicable Laws and will be further
subject to the approval of counsel for the Company with respect to such
compliance. 

		
      b.            Investment
      Representations. As a condition to the exercise of an Award, the
      Company may require the person exercising such Award to represent and
      warrant at the time of any such exercise that the Shares are being
      purchased only for investment and without any present intention to sell or
      distribute such Shares if, in the opinion of counsel for the Company, such
      a representation is required.

	 	 
	21. 	
      Inability to Obtain Authority. The inability of
      the Company to obtain authority from any regulatory body having
      jurisdiction, which authority is deemed by the Company’s counsel to be
      necessary to the lawful issuance and sale of any Shares hereunder, will
      relieve the Company of any liability in respect of the failure to issue or
      sell such Shares as to which such requisite authority will not have been
      obtained.

	 	 
	22. 	
      Repricing Prohibited; Exchange And Buyout of
      Awards. The repricing of Options or SARs is prohibited without prior
      stockholder approval. The Administrator may authorize the Company, with
      prior stockholder approval and the consent of the respective Participants,
      to issue new Option or SAR Awards in exchange for the surrender and
      cancellation of any or all outstanding Awards. The Administrator may at
      any time repurchase Options with payment in cash, Shares or other
      consideration, based on such terms and conditions as the Administrator and
      the Participant shall agree.

	 	 
	23. 	
      Substitution and Assumption of Awards. The
      Administrator may make Awards under the Plan by assumption, substitution
      or replacement of performance shares, phantom shares, stock awards, stock
      options, stock appreciation rights or similar awards granted by another
      entity (including an Parent or Subsidiary), if such assumption,
      substitution or replacement is in connection with an asset acquisition,
      stock acquisition, merger, consolidation or similar transaction involving
      the Company (and/or its Parent or Subsidiary) and such other entity
      (and/or its affiliate). The Administrator may also make Awards under the
      Plan by assumption, substitution or replacement of a similar type of award
      granted by the Company prior to the adoption and approval of the Plan.
      Notwithstanding any provision of the Plan (other than the maximum number
      of shares of Common Stock that may be issued under the Plan), the terms of
      such assumed, substituted or replaced Awards shall be as the
      Administrator, in its discretion, determines is appropriate.

	 	 
	24. 	
      Governing Law. The Plan and all Agreements shall
      be construed in accordance with and governed by the laws of the State of
      Nevada.

Adopted by the Board of Directors on September 5, 2011fs82011ex10i_feelgolf.htm

Exhibit 10.1

 

FEEL GOLF CO., INC.

2011 EQUITY INCENTIVE PLAN #5

 

1. Purpose.   The purpose of the plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of FEEL GOLF CO., INC., a California corporation (the “Company”), and its Subsidiaries and Affiliates, by offering them an opportunity to participate in the Company’s future performance through awards of shares of the Company’s Common Stock.  Capitalized terms not defined in the text are defined in Section 20.

 

2. Shares Subject to the Plan; Per-Person Award Limitation.

 

2.1. Number of Shares Available.   Subject to Sections 2.2 and 15, the total number of Shares reserved and available for grant and issuance pursuant to the Plan shall be one hundred and twenty million (120,000,000) Shares. Subject to Sections 2.2 and 15, Shares shall again be available for grant and issuance in connection with future Awards under the Plan that: (a) are subject to an Award granted hereunder but are forfeited; or (b) are subject to an Award that otherwise terminates without Shares being issued. Subject to Sections 2.2 and 15, in no event shall the aggregate number of Shares that may be issued pursuant to the Plan exceed one hundred and twenty million (120,000,000) Shares.

 

2.2. Adjustment of Shares.   In the event that the number of outstanding Shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision or similar change in the capital structure of the Company without consideration, then: (a) the number of Shares reserved for issuance under the Plan; and (b) the number of Shares subject to other outstanding Awards, shall be proportionately adjusted, subject to any required action by the Board or the shareholders of the Company and in compliance with applicable securities laws.

 

3. Eligibility.

 

3.1. General.   All Awards set forth herein may be granted to employees, officers, directors, consultants and advisors of the Company or any Parent, Subsidiary or Affiliate of the Company, provided such consultants and advisors render bona fide services not in connection with the offer and sale of securities in a capital-raising transaction.  A person may be granted more than one Award under the Plan.

 

4. Administration.

 

4.1. Compensation Board.   The Plan shall be administered by the Board. Any determination made by the Board with respect to any Award shall be made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of the Plan or Award, at any later time, and such determination shall be final and binding on the Company and all persons having an interest in any Award under the Plan.

 

4.2. Board Authority.   Subject to the general purposes, terms and conditions of the Board, the Board shall have full power to implement and carry out the Plan.  The Board may delegate to one or more officers of the Company the authority to make recommendations to grant an Award under the Plan to Participants who are not Insiders of the Company.  The Board shall have the authority to:

 

(a) Construe and interpret the Plan, any Award Agreement and any other agreement or document executed pursuant to the Plan;

 

(b) recommend amendments to the rules and regulations relating to the Plan;

 

  

1

  

 

(c) select the persons to receive Awards;

 

(d) determine the form and terms of Awards;

 

(e) determine the number of Shares or other consideration subject to Awards;

 

(f) determine whether Awards will be granted singly, in combination, in tandem with, in replacement of, or as alternatives to, other Awards under the Plan or any other incentive or compensation plan of the Company or any Parent, Subsidiary or Affiliate of the Company;

 

(g) determine the granting of certain waivers of Plan or Award conditions;

 

(h) determine the conditions concerning the vesting, exercisability and payment of Awards;

 

(i) recommend such matters so as to correct any defect, supply any omission, or reconcile any inconsistency in the Plan, any Award or any Award Agreement;

 

(j) determine whether an Award has been earned; and

 

(k) make all other determinations necessary or advisable for the administration of the Plan.

 

5. Payment for Share Purchases.

 

5.1. Payment.   Payment for Shares purchased pursuant to the Plan may be made in cash (by check) or, where expressly approved for the Participant by the Board and where permitted by law:

 

(a) by cancellation of indebtedness of the Company to the Participant;

 

(b) by transfer of Shares that either (1) have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144; or (2) were obtained by Participant in the public market;

 

(c) by waiver of compensation due or accrued to Participant for services rendered;

 

(d) by tender of property; or

 

(e) by any combination of the foregoing.

 

6. Withholding Taxes Generally.   Whenever Shares are to be issued in satisfaction of Awards granted under the Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares.  Whenever, under the Plan, payments in satisfaction of Awards are to be made in cash, such payment shall be net of an amount sufficient to satisfy federal, state, and local withholding tax requirements.

 

  

2

  

 

7. Privileges of Stock Ownership.   No Participant shall have any of the rights of a shareholder with respect to any Shares until the Shares are issued to the Participant.  After Shares are issued to the Participant, the Participant shall be a shareholder and have all the rights of a shareholder with respect to such Shares, including the right to vote and receive all dividends or other distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split or any other change in the corporate or capital structure of the Company shall be subject to the same restrictions as the Restricted Stock.

 

8. Transferability.   Awards granted under the Plan, and any interest therein, shall not be transferable or assignable by Participant, and may not be made subject to execution, attachment or similar process, otherwise than by will or by the laws of descent and distribution or as consistent with the specific Plan and Award Agreement provisions relating thereto.  During the lifetime of the Participant an Award shall be exercisable only by the Participant, and any elections with respect to an Award, may be made only by the Participant.

 

9. Restrictions on Shares.   At the discretion of the Board, the Company may reserve to itself and/or its assignee(s) in the Award Agreement a right of first refusal to purchase all Shares that a Participant (or a subsequent transferee) may propose to transfer to a third party.

 

10. Certificates.   All certificates for Shares or other securities delivered under the Plan shall be subject to such stock transfer orders, legends and other restrictions as the Board may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed.

 

11. Escrow; Pledge of Shares.   To enforce any restrictions on a Participant’s Shares, the Board may require the Participant to deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Board, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such restrictions have lapsed or terminated, and the Board may cause a legend or legends referencing such restrictions to be placed on the certificates.

 

12. Exchange and Buy Out of Awards.   The Board, may, at any time or from time to time, authorize the Company, with the consent of the respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards.  The Company may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including Restricted Stock) or other consideration, based on such terms and conditions as the Company and the Participant shall agree.

 

13. Securities Laws and Other Regulatory Compliance.   An Award shall not be effective unless such Award is in compliance with all applicable federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed, as they are in effect on the date of grant of the Award and also on the date of exercise or other Issuance.  Notwithstanding any other provision in the Plan, the Company shall have no obligation to issue or deliver certificates for Shares under the Plan prior to: (a) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable, and/or (b) completion of any registration or other qualification of such shares under any state or federal law or ruling of any governmental body that the Company determines to be necessary or advisable.  The Company shall be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any state securities laws, stock exchange or automated quotation system, and the Company shall have no liability for any inability or failure to do so.

 

  

3

  

 

14. No Obligation to Employ.   Nothing in the Plan or any Award granted under the Plan shall confer or be deemed to confer on any Participant any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent, Subsidiary or Affiliate of the Company or limit in any way the right of the Company or any Parent, Subsidiary or Affiliate of the Company to terminate Participant’s employment or other relationship at any time, with or without cause.

 

15. Corporate Transactions.

 

15.1. Assumption or Replacement of Awards by Successor.   In the event of: (a) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the shareholders of the company and the Awards granted under the Plan are assumed or replaced by the successor corporation, which assumption shall be binding on all Participants); (b) a dissolution or liquidation of the Company; (c) the sale of substantially all of the assets of the Company; or (d) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Code wherein the shareholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company), all outstanding Awards may, to the extent permitted by applicable law, be replaced by the successor corporation (if any), with Awards of equivalent value, which replacement shall be binding on all Participants.  In the alternative, substantially similar consideration may be provided to Participants as was provided to shareholders (after taking into account the existing provisions of the Awards).  The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant.

 

15.2. Other Treatment of Awards.   Subject to any greater rights granted to Participants under the foregoing provisions of this Section 15, in the event of the occurrence of any transaction described in Section 15.1, any outstanding Awards shall be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution, liquidation, sale of assets or other “corporate transaction.”

 

15.3. Assumption of Awards by the Company.   The Company, from time to time, also may grant Awards identical to awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by granting an Award under the Plan in replacement of such other company’s award. Such replacement shall be permissible if the holder of the replaced award would have been eligible to be granted an Award under the Plan if the other company had applied the rules of the Plan to such grant. In the event the Company grants Awards identical to an award granted by another company, the terms and conditions of such award shall remain unchanged.

 

16. Adoption.   The Plan shall become effective on the date that it is adopted by the Board (the “Effective Date”). Upon the Effective Date, the Board may grant Awards pursuant to the Plan. After the Company becomes subject to Section 16(b) of the Exchange Act, the Company will comply with the requirements of Rule 16b-3 (or its successor), as amended, with respect to shareholder approval.

 

17. Term of Plan.   The Plan will terminate ten (10) years from the Effective Date or, if earlier, the date of shareholder approval of the Plan.

 

  

4

  

 

18. Amendment or Termination of Plan.   The Board may at any time terminate or amend the Plan in any respect, including without limitation amendment of any form of Award Agreement or instrument to be executed pursuant to the Plan; provided, however, that: (a) the Board shall not, without the approval of the shareholders of the Company, amend the Plan in any manner that requires such shareholder approval pursuant to the Code or the regulations promulgated thereunder as such provisions apply to ISO plans or pursuant to the Exchange Act or Rule 16b-3 (or its successor), as amended, thereunder; and (b) no outstanding Award shall be deemed effected by such amendment without the advance written consent of the Participant(s) holding such outstanding Award(s) at the time of the proposed termination or amendment.

 

19. Nonexclusivity of the Plan.   Neither the adoption of the Plan by the Board, the submission of the Plan to the shareholders of the Company for approval, nor any provision of the Plan shall be construed as creating any limitations on the power of the Board to adopt such additional compensation arrangements as it may deem desirable, including, without limitation, the granting of stock options and bonuses otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

 

20. Definitions.   As used in the Plan, the following terms shall have the following meanings:

 

“Affiliate” means any corporation that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, another corporation, where “control” (including the terms “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to cause the direction of the management and policies of the corporation, whether through the ownership of voting securities, by contract or otherwise.

 

“Award” means any award under the Plan, including free trading Common Stock and restricted Common Stock.

 

“Award Agreement” means, with respect to each Award, the signed written agreement between the Company and the Participant setting forth the terms and conditions of the Award.

 

“Board” means the Board of Directors of the Company.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Board” means the Company’s Board of Directors

 

“Company” means FEEL GOLF CO., INC., a California corporation, or any successor company.

 

“Disability” means a disability, whether temporary or permanent, partial or total, as determined by the Board.

 

“Disinterested Person” means a director who has not, during the period that person is a member of the Board and for one (1) year prior to service as a member of the Board, been granted or awarded equity securities pursuant to the Plan or any other plan of the Company or any Parent, Subsidiary or Affiliate of the Company, except in accordance with the requirements set forth in Rule 16b-3(c)(2)(I) (and any successor regulation thereto) as promulgated by the SEC under Section 16(b) of the Exchange Act, as such rule is amended from time to time and as interpreted by the SEC.

 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

  

5

  

 

“Fair Market Value” means, as of any date, the value of a share of the Company’s Common Stock determined as follows:

 

(a) If such Common Stock is then quoted on the Nasdaq market, its last reported sale price on the Nasdaq market or, if no such reported sale takes place on such date, the average of the closing bid and asked prices;

 

(b) if such Common Stock is publicly traded and is then listed on a national securities exchange, the last reported sale price or, if no such reported sale takes place on such date, the average of the closing bid and asked prices on the principal national securities exchange on which the Common Stock is listed or admitted to trading;

 

(c) if such Common Stock is publicly traded but is not quoted on a Nasdaq market nor listed or admitted to trading on a national securities exchange, the average of the closing bid and asked prices on such date, as reported by The Wall Street Journal, for the over-the-counter market; or

 

(d) if none of the foregoing is applicable, by the Board of Directors of the Company in good faith.

 

“Common Stock” means the shares of the Company’s unrestricted Common Stock, par value $0.0001, issuable under the Plan.

 

“Insider” means an officer or director of the Company or any other person whose transactions in the Company’s Common Stock are subject to Section 16 of the Exchange Act.

 

“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if at the time of the granting of an Award under the Plan, each of such corporations other than the Company owns stock possessing fifty percent (50%), or more, of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

“Participant” means a person who receives an Award under the Plan.

 

“Plan” means this Feel Golf Co., Inc. Equity Incentive Plan, as amended from time to time.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Shares” means shares of the Company’s Common Stock reserved for issuance under the Plan, as adjusted pursuant to Sections 2 and 15, and any successor security.

 

“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if, at the time of granting of the Award, each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%), or more, of the total combined voting power of all classes of stock in one of the other corporations in such claim.

 

“Termination” or “Terminated” means, for purposes of the Plan with respect to a Participant, that the Participant has ceased to provide services as an employee, director, consultant or advisor, to the Company or a Parent, Subsidiary or Affiliate of the Company, except in the case of sick leave, military leave, or any other leave of absence approved by the Board, provided, that such leave is for a period of not more than ninety (90) days, or reinstatement upon the expiration of such leave is guaranteed by contract or statute.  The Board shall have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the “Termination Date”).

 

  

6

  

 

BOARD SIGNATURES:

 

/s/Lee Miller                                          

LEE MILLER, Chairman

 

/s/David Otterbach                              

DAVID OTTERBACH, Secretary

 

/s/David Worrell                                  

DAVID WORRELL, Director

 

 

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