August 23. 2012 S8 Exhibit 10.19




Exhibit 10.19



8x8, Inc.

2012 Equity Incentive Plan

1.   Purpose


This Plan is intended to encourage ownership of Stock by employees, consultants and directors of the Company and
its Affiliates and to provide additional incentive for them to promote the success of the Company's business through the grant of Awards
of or pertaining to shares of the Company's Stock.  The Plan is intended to be an incentive stock option plan within the meaning of
Section 422 of the Code, but not all Awards are required to be Incentive Options.

2.   Definitions

As used in the Plan, the following terms shall have the respective meanings set out below, unless the context clearly
requires otherwise:

2.1.   Accelerate, Accelerated, and Acceleration, means: (a) when used with
respect to a Stock Right, that as of the time of reference the Stock Right will become exercisable with respect to some or all of the
shares of Stock for which it was not then otherwise exercisable by its terms; (b) when used with respect to Restricted Stock or
Restricted Stock Units, that the Risk of Forfeiture otherwise applicable to the Stock or Units shall expire with respect to some or all of
the shares of Restricted Stock or Units then still otherwise subject to the Risk of Forfeiture; and (c) when used with respect to
Performance Units, that the applicable Performance Goals or other business objectives shall be deemed to have been met as to some
or all of the Units.  

2.2.   Affiliate means any corporation, partnership, limited liability company, business trust, or
other entity controlling, controlled by or under common control with the Company.

2.3.   Award means any grant or sale pursuant to the Plan of Options, Stock Appreciation Rights,
Performance Units, Restricted Stock, Restricted Stock Units, or Stock Grants.

2.4.   Award Agreement means an agreement between the Company and the recipient
of an Award, or other notice of grant of an Award, setting forth the terms and conditions of the Award.

2.5.   Board means the Company's Board of Directors.

2.6.   Code means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto, and any regulations issued from time to time thereunder.

2.7.   Committee means the Compensation Committee of the Board, which in general is
responsible for the administration of the Plan, as provided in Section5 of this Plan.  For any period during which no such
committee is in existence "Committee" shall mean the Board and all authority and responsibility assigned to the Committee
under the Plan shall be exercised, if at all, by the Board.







2.8.   Company means 8x8, Inc., a corporation organized under the laws of the state of
Delaware.

2.9.   Corporate Transaction means any (1) merger or consolidation of the Company
with or into another entity as a result of which the Stock of the Company is converted into or exchanged for the right to receive cash,
securities or other property or is cancelled, (2) sale or exchange of all of the Stock of the Company for cash, securities or other
property, (3) sale, transfer, or other disposition of all or substantially all of the Company's assets to one or more other persons in a
single transaction or series of related transactions or (4) liquidation or dissolution of the Company; except, in the case of clauses (1)
and (2), for a transaction the principal purpose of which is to change the state in which the Company is incorporated.

2.10.   Effective Date means the earlier of the date the Plan is approved by the Board or the date
the Plan is approved by the stockholders of the Company.

2.11.   Grant Date means the date as of which an Option is granted, as determined
under Section7.1(a).

2.12.   Incentive Option means an Option which by its terms is to be treated as an
"incentive stock option" within the meaning of Section 422 of the Code.

2.13.   Market Value means the value of a share of Stock on a particular date determined
by such methods or procedures as may be established by the Committee.  Unless otherwise determined by the Committee, the Market
Value of Stock as of any date is: (a) the closing price for the Stock as reported on the NASDAQ Global Market (or on any other national
securities exchange on which the Stock is then listed) for that date or, if no closing price is reported for that date, the closing price on
the next preceding date for which a closing price was reported; or (b) if the Stock is not traded on a national securities exchange but is
traded over-the-counter, the closing or last price of the Stock on the composite tape or other comparable reporting system on that date
or, if such date is not a trading day, the last market trading day prior to such date.

2.14.   Nonstatutory Option means any Option that is not an Incentive Option.

2.15.   Option means an option to purchase shares of Stock.

2.16.   Optionee means an eligible individual to whom an Option shall have been granted under
the Plan.

2.17.   Participant means any holder of an outstanding Award under the Plan.

2.18.   Performance Criteria and Performance Goals have the meanings given such
terms in Section 7.7(f).

2.19.   Performance Period means the one or more periods of time, which may be of varying and
overlapping durations, selected by the Committee, over which the attainment of one or more Performance Goals or other business
objectives will be measured for purposes of determining a Participant's right to, and the payment of, a Performance Unit.








2.20.   Performance Unit means a right granted to a Participant under Section7.5, to
receive cash, Stock or other Awards, the payment of which is contingent on achieving Performance Goals or other business objectives
established by the Committee.

2.21.   Plan means this 2012 Equity Incentive Plan of the Company, as amended from time to
time, and including any attachments or addenda hereto.

2.22.   Qualified Performance-Based Awards means Awards to persons who are or become
covered employees within the meaning of Section162(m) of the Code and which are intended to or at grant would qualify as
"performance-based compensation" under Section162(m) of the Code.

2.23.   Restricted Stock means a grant or sale of shares of Stock to a Participant subject to a Risk
of Forfeiture.

2.24.   Restricted Stock Unit means a right to receive Stock at the close of a Restriction Period,
subject to a Risk of Forfeiture.

2.25.   Restriction Period means the period of time, established by the Committee in connection
with an Award of Restricted Stock or Restricted Stock Units, during which the shares of Restricted Stock or Restricted Stock Units are
subject to a Risk of Forfeiture described in the applicable Award Agreement.

2.26.   Risk of Forfeiture means a limitation on the right of the Participant to retain Restricted
Stock or Restricted Stock Units, including a right of the Company to reacquire shares of Restricted Stock at less than its then Market
Value, arising because of the occurrence or non-occurrence of specified events or conditions.

2.27.   Stock means common stock, par value $0.001 per share, of the Company, and
such other securities as may be substituted for Stock pursuant to Section8.

2.28.   Stock Appreciation Right means a right to receive any excess in the Market Value of
shares of Stock (except as otherwise provided in Section7.2(c)) over a specified exercise price.

2.29.   Stock Grant means the grant of shares of Stock not subject to restrictions or other forfeiture
conditions.

2.30.   Stock Right means an Award in the form of an Option or a Stock Appreciation Right.

2.31.   Stockholders' Agreement means any agreement by and among the holders of at
least a majority of the outstanding voting securities of the Company and setting forth, among other provisions, restrictions upon the
transfer of shares of Stock or on the exercise of rights appurtenant thereto (including, but not limited to, voting rights).








2.32.   Ten Percent Owner means a person who owns, or is deemed within the
meaning of Section 422(b)(6) of the Code to own, stock possessing more than 10% of the total combined voting power of all classes of
stock of the Company (or any parent or subsidiary corporations of the Company, as defined in Sections424(e) and (f),
respectively, of the Code).  Whether a person is a Ten Percent Owner shall be determined with respect to an Option based on the facts
existing immediately prior to the Grant Date of the Option.


3.   Term of the
Plan

Unless the Plan shall have been earlier terminated by the Board, Awards may be granted under this Plan at any time
in the period commencing on the date of approval of the Plan by the Board and ending immediately prior to the tenth anniversary of the
Effective Date.  Awards granted pursuant to the Plan within that period shall not expire solely by reason of the termination of the Plan.
Any Awards granted prior to stockholder approval of the Plan are hereby expressly conditioned upon such approval.

4.   Stock Subject to the Plan

At no time shall the number of shares of Stock issued pursuant to or subject to outstanding Awards granted under the
Plan, nor the number of shares of Stock issued pursuant to or subject to outstanding Incentive Options, exceed 4,100,000 shares of
Stock; subject, however, to the provisions of Section8 of the Plan.  For purposes of applying the foregoing limitation,
settlement of any Award shall not count against the foregoing limitations except to the extent settled in the form of Stock and, without
limiting the generality of the foregoing:

(a) if any Option or Stock-settled Stock Appreciation Right expires, terminates, or is cancelled for any reason without having
been exercised in full, or if any other Award is forfeited by the recipient or repurchased at less than its Market Value as a means of
effecting a forfeiture, the shares of Stock not purchased by the Optionee or which are forfeited by the recipient or repurchased shall
again be available for Awards to be granted under the Plan;

(b) if any Option is exercised by delivering previously owned shares of Stock in payment of the exercise price therefor, only the
net number of shares, that is, the number of shares of Stock issued minus the number received by the Company in payment of the
exercise price, shall be considered to have been issued pursuant to an Award granted under the Plan; and

(c) any shares of Stock either tendered or withheld in satisfaction of tax withholding obligations of the Company or an Affiliate
shall again be available for issuance under the Plan.

None of the foregoing provisions of this Section 4, including the adjustment provisions of Section 8, shall apply in determining the
maximum number of shares of Stock issued pursuant to or subject to outstanding Incentive Options unless consistent with the
provisions of Section 422 of the Code, however.  Shares of Stock issued pursuant to the Plan may be either authorized but unissued
shares or shares held by the Company in its treasury.








5.   Administration

The Plan shall be administered by the Committee; provided, however, that at any time and on any one or
more occasions the Board may itself exercise any of the powers and responsibilities assigned the Committee under the Plan and when
so acting shall have the benefit of all of the provisions of the Plan pertaining to the Committee's exercise of its authorities hereunder;
and provided further, however, that the Committee may delegate to an executive officer or officers the authority to grant Awards
hereunder to employees who are not officers, and to consultants, in accordance with such guidelines as the Committee shall set forth at
any time or from time to time. Subject to the provisions of the Plan, the Committee shall have complete authority, in its discretion, to
make or to select the manner of making all determinations with respect to each Award to be granted by the Company under the Plan
including the employee, consultant or director to receive the Award and the form of Award.  In making such determinations, the
Committee may take into account the nature of the services rendered by the respective employees, consultants, and directors, their
present and potential contributions to the success of the Company and its Affiliates, and such other factors as the Committee in its
discretion shall deem relevant.   Subject to the provisions of the Plan, the Committee shall also have complete authority to:  (a) interpret
the Plan, to prescribe, amend and rescind rules and regulations relating to it; (b) approve one or more forms of Award Agreement; (c)
determine the initial terms and provisions of the respective Award Agreements (which need not be identical), including, without
limitation, as applicable, (i) the exercise price of the Award, (ii) the method of payment for shares of Stock purchased upon the exercise
of the Award, (iii) the timing, terms and conditions of the exercisability of the Award or the vesting of any shares acquired upon the
exercise thereof, (iv) the time of the expiration of the Award, (v) the effect of the Participant's termination of employment or other
association with the Company on any of the foregoing, and (vi) all other terms, conditions and restrictions applicable to the Award or
such shares not inconsistent with the terms of the Plan; (d) amend, modify, extend, cancel or renew any Award or to waive any
restrictions or conditions applicable to any Award or any shares acquired upon the exercise thereof; (e) accelerate, continue, extend or
defer the exercisability of any Award or the vesting of any shares acquired upon the exercise thereof, including with respect to the
period following a Participant's termination of employment or other association with the Company; (f) correct any defect, supply any
omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other
actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions
of the Plan or applicable law; and (g) to make all other determinations necessary or advisable for the administration of the Plan.  The
Committee's determinations made in good faith on matters referred to in the Plan shall be final, binding and conclusive on all persons
having or claiming any interest under the Plan or an Award made pursuant hereto.










6.   Authorization of Grants

6.1.   Eligibility.  The Committee may grant from time to time and at any time prior
to the termination of the Plan one or more Awards, either alone or in combination with any other Awards, to any employee of or
consultant to one or more of the Company and its Affiliates or to any non-employee member of the Board or of any board of directors
(or similar governing authority) of any Affiliate. However, only employees of the Company, and of any parent or subsidiary corporations
of the Company, as defined in Sections 424(e) and (f), respectively, of the Code, shall be eligible for the grant of an Incentive
Option.

6.2.   General Terms of Awards.  Each grant of an Award shall be subject to all applicable terms
and conditions of the Plan (including, but not limited to, any specific terms and conditions applicable to that type of Award set out in the
following Section), and such other terms and conditions, not inconsistent with the terms of the Plan, as the Committee may prescribe.
No prospective Participant shall have any rights with respect to an Award, unless and until such Participant shall have complied with the
applicable terms and conditions of such Award (including if applicable delivering a fully executed copy of any agreement evidencing an
Award to the Company).

6.3.   Effect of Termination of Employment, Disability or Death. 


(a)Termination of Employment.  Unless the Committee shall provide otherwise with respect to any Award, if the
Participant's employment or other association with the Company and its Affiliates ends for any reason other than by total disability or
death, including because of an Affiliate ceasing to be an Affiliate, (a) any outstanding Stock Right of the Participant shall cease to be
exercisable in any respect not later than 90 days following that event and, for the period it remains exercisable following that event,
shall be exercisable only to the extent exercisable at the date of that event, and (b) any other outstanding Award of the Participant shall
be forfeited or otherwise subject to return to or repurchase by the Company on the terms specified in the applicable Award Agreement.
Cessation of the performance of services in one capacity, for example, as an employee, shall not result in termination of an Award while
the Participant continues to perform services in another capacity, for example as a director. Military or sick leave or other bona fide
leave shall not be deemed a termination of employment or other association, provided that it does not exceed the longer of 90
days or the period during which the absent Participant's reemployment rights, if any, are guaranteed by statute or by contract. To the
extent consistent with applicable law, the Committee may provide that Awards continue to vest for some or all of the period of any such
leave, or that their vesting shall be tolled during any such leave and only recommence upon the Participant's return from leave, if
ever.

(b)Disability of Participant. If a Participant's employment or other association with the Company and its Affiliates
ends due to disability (as defined in Section 22(e)(3) of the Code), any outstanding Stock Right may be exercised at any time within six
months following the date of termination of service, but only to the extent of the accrued right to exercise at the time of termination of
service, subject to the condition that no Stock Right shall be exercised after its expiration in accordance with its terms. 








(c)Death of Participant. In the event of the death during the period during which the Stock Right may be
exercised, of a Participant who is at the time of his or her death an employee, director or consultant and whose services had not ceased
or been terminated (as determined with regard to the second sentence of Section 6.3 (a)) as such from the Grant Date until the date of
death, the Stock Right of the Participant may be exercised at any time within six months following the date of death by such
Participant's estate or by a person who acquired the right to exercise the Stock Right by bequest, inheritance or otherwise as a result of
the Participant's death, but only to the extent of the accrued right to exercise at the time of death, subject to the condition that no Stock
Right shall be exercised after its expiration in accordance with its terms.

6.4.   Non-Transferability of Awards.  Except as otherwise provided in this Section 6.4, Awards
shall not be transferable, and no Award or interest therein may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution.  All of a Participant's rights in any Award may be exercised
during the life of the Participant only by the Participant or the Participant's legal representative.  However, the Committee may, at or
after the grant of an Award of a Nonstatutory Option, or shares of Restricted Stock, provide that such Award may be transferred by the
recipient to a family member; provided, however, that any such transfer is without payment of any consideration whatsoever and
that no transfer shall be valid unless first approved by the Committee, acting in its sole discretion.  For this purpose, "family
member" means any child, stepchild, grandchild, parent, grandparent, stepparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the employee's household (other than a tenant or employee), a trust in which the foregoing persons have more than 50 percent
of the beneficial interests, a foundation in which the foregoing persons (or the Participant) control the management of assets, and any
other entity in which these persons (or the Participant) own more than 50 percent of the voting interests.  The events of termination of
service of Section 6.3 hereof or in the Award Agreement shall continue to be applied with respect to the original Participant, following
which the Awards shall be exercisable by the transferee only to the extent, and for the periods specified in the Award Agreement or
Section 6.3, as applicable.

Code Limits on Grants of Qualified Performance-Based Awards.  In no event shall the
number of shares of Stock covered or referenced by either Options or Stock Appreciation Rights, or other Awards which are granted as
Qualified Performance-Based Awards, to any one person in any one calendar year exceed 750,000 shares of Stock. These limitations
shall not apply prior to the date required to apply under the regulations of the U.S. Department of Treasury promulgated under Section
162(m) of the Code, however.  Solely for purposes of applying the limitations of this Section6.5, if in effect, any shares of
Stock subject to Options or Stock Appreciation Rights which are canceled (or deemed canceled, as a result of repricing described in
applicable regulations of the U.S. Department of Treasury promulgated under Section 162(m) of the Code) shall nevertheless continue
to be counted even after such cancellation (or deemed cancellation).









7.   Specific Terms of Awards

7.1.   Options.

(a)Date of Grant.  The granting of an Option shall take place at the time specified in the Award Agreement.  Only if
expressly so provided in the applicable Award Agreement shall the Grant Date be the date on which the Award Agreement shall have
been duly executed and delivered by the Company and the Optionee.

(b)Exercise Price.  The price at which shares of Stock may be acquired under each Incentive Option shall be not less
than 100% of the Market Value of Stock on the Grant Date, or not less than 110% of the Market Value of Stock on the Grant Date if the
Optionee is a Ten Percent Owner.  The price at which shares of Stock may be acquired under each Nonstatutory Option shall the
Market Value of Stock on the Grant Date, except as provided otherwise by the Committee upon the grant of the Nonstatutory
Option.

(c)Option Period.  No Incentive Option may be exercised on or after the tenth anniversary of the Grant Date, or on or
after the fifth anniversary of the Grant Date if the Optionee is a Ten Percent Owner.  The Option period under each Nonstatutory Option
shall not be so limited solely by reason of this Section. 

(d)Exercisability.  An Option may be immediately exercisable or become exercisable in such installments,
cumulative or non-cumulative, as the Committee may determine.  In the case of an Option not otherwise immediately exercisable in full,
the Committee may Accelerate such Option in whole or in part at any time; provided, however, that in the case of an Incentive
Option, any such Acceleration of the Option would not cause the Option to fail to comply with the provisions of Section422 of
the Code or the Optionee consents to the Acceleration.

(e)Method of Exercise.  An Option may be exercised by the Optionee giving written notice, in the manner provided in
Section16, specifying the number of shares of Stock with respect to which the Option is then being exercised.  The notice
shall be accompanied by payment in the form of cash or check payable to the order of the Company in an amount equal to the exercise
price of the shares of Stock to be purchased or, subject in each instance to the Committee's approval, acting in its sole discretion, and
to such conditions, if any, as the Committee may deem necessary to avoid adverse accounting effects to the Company,

(i) by delivery to the Company of shares of Stock having a Market Value equal to the exercise price of the shares to be purchased,
or 

(ii) by surrender of the Option as to all or part of the shares of Stock for which the Option is then exercisable in exchange for shares
of Stock having an aggregate Market Value equal to the difference between (1) the aggregate Market Value of the surrendered
portion of the Option, and (2) the aggregate exercise price under the Option for the surrendered portion of the Option, or 










(iii) unless prohibited by applicable law, by delivery to the Company of the Optionee's executed promissory note in the principal
amount equal to the exercise price of the shares of Stock to be purchased and otherwise in such form as the Committee shall have
approved, or

(iv) by delivery of any other lawful means of consideration which the Committee may approve.



If the Stock is traded on an established market, payment of any exercise price may also be made through and under the terms and
conditions of any formal cashless exercise program authorized by the Company entailing the sale of the Stock subject to an Option in a
brokered transaction (other than to the Company).  Receipt by the Company of such notice and payment in any authorized or
combination of authorized means shall constitute the exercise of the Option.  Within 30 days thereafter but subject to the remaining
provisions of the Plan, the Company shall deliver or cause to be delivered to the Optionee or his agent a certificate or certificates or
book-entry authorization and instruction to the Company's transfer agent and registrar for the number of shares then being purchased.
Such shares of Stock shall be fully paid and nonassessable.  In its reasonable discretion, the Committee may suspend or halt Option
exercises for such length of time as the Committee deems reasonably necessary under circumstances in which such suspension or halt
is considered to be in the best interests of the Company.

(f)Limit on Incentive Option Characterization.  An Incentive Option shall be considered to be an Incentive Option only
to the extent that the number of shares of Stock for which the Option first becomes exercisable in a calendar year do not have an
aggregate Market Value (as of the date of the grant of the Option) in excess of the "current limit".  The current limit for any
Optionee for any calendar year shall be $100,000 minus the aggregate Market Value at the date of grant of the number of
shares of Stock available for purchase for the first time in the same year under each other Incentive Option previously granted to the
Optionee under the Plan, and under each other incentive stock option previously granted to the Optionee under any other incentive
stock option plan of the Company and its Affiliates.  Any shares of Stock which would cause the foregoing limit to be violated shall be
deemed to have been granted under a separate Nonstatutory Option, otherwise identical in its terms to those of the Incentive Option.


(g)Notification of Disposition.  Each person exercising any Incentive Option granted under
the Plan shall be deemed to have covenanted with the Company to report to the Company any disposition of the shares of Stock issued
upon such exercise prior to the expiration of the holding periods specified by Section 422(a)(1) of the Code and, if and to the extent that
the realization of income in such a disposition imposes upon the Company federal, state, local or other withholding tax requirements, or
any such withholding is required to secure for the Company an otherwise available tax deduction, to remit to the Company an amount in
cash sufficient to satisfy those requirements.









7.2.   Stock Appreciation Rights.

(a)Tandem or Stand-Alone.  Stock Appreciation Rights may be granted in tandem with an Option (at or, in the case of
a Nonstatutory Option, after, the award of the Option), or alone and unrelated to an Option.  Stock Appreciation Rights in tandem with
an Option shall terminate to the extent that the related Option is exercised, and the related Option shall terminate to the extent that the
tandem Stock Appreciation Rights are exercised.

(b)Exercise Price.  Stock Appreciation Rights shall have an exercise price of not less than 100% of the
Market Value of the Stock on the date of award, or in the case of Stock Appreciation Rights in tandem with Options, the exercise price
of the related Option.

(c)Other Terms.  Except as the Committee may deem inappropriate or inapplicable in the circumstances,
Stock Appreciation Rights shall be subject to terms and conditions substantially similar to those applicable to a Nonstatutory Option.  In
addition, a Stock Appreciation Right related to an Option which can only be exercised during limited periods following a Corporate
Transaction may entitle the Participant to receive an amount based upon the highest price paid or offered for Stock in any transaction
relating to the Corporate Transaction or paid during the 30 day period immediately preceding the occurrence of the Corporate
Transaction in any transaction reported in the stock market in which the Stock is normally traded.

7.3.   Restricted Stock.

(a)Purchase Price.  Shares of Restricted Stock shall be issued under the Plan for such consideration, in cash, other
property or services, or any combination thereof, as is determined by the Committee.

(b)Issuance of Certificates.  Each Participant receiving a Restricted Stock Award, subject to subsection (c) below,
shall be issued a stock certificate in respect of such shares of Restricted Stock.  Such certificate shall be registered in the name of such
Participant, and, if applicable, shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such
Award substantially in the following form:
The shares evidenced by this certificate are subject to the terms and conditions of the 8x8, Inc. 2012 Equity Incentive Plan and an
Award Agreement entered into by the registered owner and 8x8, Inc., copies of which will be furnished by the Company to the
holder of the shares evidenced by this certificate upon written request and without charge.



(c)Escrow of Shares.  The Committee may require that the stock certificates evidencing shares of Restricted Stock be
held in custody by a designated escrow agent (which may but need not be the Company) until the restrictions thereon shall have
lapsed, and that the Participant deliver a stock power, endorsed in blank, relating to the Stock covered by such Award.









(d)Restrictions and Restriction Period.  During the Restriction Period applicable to shares of Restricted Stock, such
shares shall be subject to limitations on transferability and a Risk of Forfeiture arising on the basis of such conditions related to the
performance of services, Company or Affiliate performance or otherwise as the Committee may determine and provide for in the
applicable Award Agreement.  Any such Risk of Forfeiture may be waived or terminated, or the Restriction Period shortened, at any
time by the Committee on such basis as it deems appropriate. 

(e)Rights Pending Lapse of Risk of Forfeiture or Forfeiture of Award.  Except as otherwise provided in the Plan or the
applicable Award Agreement, at all times prior to lapse of any Risk of Forfeiture applicable to, or forfeiture of, an Award of Restricted
Stock, the Participant shall have all of the rights of a stockholder of the Company, including the right to vote, and the right to receive any
dividends with respect to, the shares of Restricted Stock (but any dividends or other distributions payable in shares of Stock or other
securities of the Company shall constitute additional Restricted Stock, subject to the same Risk of Forfeiture as the shares of Restricted
Stock in respect of which such shares of Stock or other securities are paid).  The Committee, as determined at the time of Award, may
permit or require the payment of cash dividends to be deferred and, if the Committee so determines, reinvested in additional Restricted
Stock to the extent shares of Stock are available under Section4.

(f)Lapse of Restrictions.  If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock,
the certificates for such shares shall be delivered to the Participant promptly if not theretofore so delivered.

7.4.   Restricted Stock Units.

(a)Character.  Each Restricted Stock Unit shall entitle the recipient to one or more shares of Stock at a close of such
Restriction Period as the Committee may establish and subject to a Risk of Forfeiture arising on the basis of such conditions relating to
the performance of services, Company or Affiliate performance, or otherwise as the Committee may determine and provide for in the
applicable Award Agreement.  Any such Risk of Forfeiture may be waived or terminated, or the Restriction Period shortened, at any
time by the Committee on such basis as it deems appropriate.

(b)Form and Timing of Payment.  Payment of earned Restricted Stock Units shall be made in a single lump sum
following the close of the applicable Restriction Period.  At the discretion of the Committee, Participants may be entitled to receive
payments equivalent to any dividends declared with respect to Stock referenced in grants of Restricted Stock Units but only following
the close of the applicable Restriction Period and then only if the underlying Stock shall have been earned.  Unless the Committee shall
provide otherwise, any such dividend equivalents shall be paid, if at all, without interest or other earnings.








7.5.   Performance Units.

(a)Character. Each Performance Unit shall entitle the recipient to the value of a specified number of shares of Stock,
over the initial value for such number of shares, if any, established by the Committee at the time of grant, at the close of a specified
Performance Period to the extent specified business objectives, including, but not limited to, Performance Goals, shall have been
achieved.

(b)Earning of Performance Units. The Committee shall set Performance Goals or other business objectives in its
discretion which, depending on the extent to which they are met within the applicable Performance Period, will determine the number
and value of Performance Units that will be paid out to the Participant.  After the applicable Performance Period has ended, the holder
of Performance Units shall be entitled to receive payout on the number and value of Performance Units earned by the Participant over
the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals or other business
objectives have been achieved.

(c)Form and Timing of Payment.  Payment of earned Performance Units shall be made in a single lump sum following
the close of the applicable Performance Period.  At the discretion of the Committee, Participants may be entitled to receive any
dividends declared with respect to Stock which have been earned in connection with grants of Performance Units which have been
earned, but not yet distributed to Participants.  The Committee may permit or, if it so provides at grant require, a Participant to defer
such Participant's receipt of the payment of cash or the delivery of Stock that would otherwise be due to such Participant by virtue of
the satisfaction of any requirements or goals with respect to Performance Units.  If any such deferral election is required or permitted,
the Committee shall establish rules and procedures for such payment deferrals.

7.6.   Stock Grants. Stock Grants shall be awarded solely in recognition of significant prior or
expected contributions to the success of the Company or its Affiliates, as an inducement to employment, in lieu of compensation
otherwise already due and in such other limited circumstances as the Committee deems appropriate.  Stock Grants shall be made
without forfeiture conditions of any kind.

7.7.   Qualified Performance-Based Awards.

(a)Purpose.  The purpose of this Section 7.7 is to provide the Committee the ability to qualify Awards as
"performance-based compensation" under Section 162(m) of the Code.  If the Committee, in its discretion, decides to grant
an Award as a Qualified Performance-Based Award, the provisions of this Section 7.7 will control over any contrary provision contained
in the Plan.  In the course of granting any Award, the Committee may specifically designate the Award as intended to qualify as a
Qualified Performance-Based Award.  However, no Award shall be considered to have failed to qualify as a Qualified Performance-
Based Award solely because the Award is not expressly designated as a Qualified Performance-Based Award, if the Award otherwise
satisfies the provisions of this Section 7.7 and the requirements of Section162(m) of the Code applicable to
"performance-based compensation."







(b)Authority.  All grants of Awards intended to qualify as Qualified Performance-Based Awards and the determination
of the terms applicable thereto shall be made by the Committee.  If not all of the members thereof qualify as "outside
directors" within the meaning of Section162(m) of the Code, however, all grants of Awards intended to qualify as
Qualified Performance-Based Awards and the determination of the terms applicable thereto shall be made by a subcommittee of the
Committee consisting of such of the members of the Committee as do so qualify.  Any reference in this Section 7.7 to the Committee
shall mean any such subcommittee if required under the preceding sentence, and any action by such a subcommittee shall be
considered the action of the Committee for purposes of the Plan.

(c)Discretion of Committee with Respect to Qualified Performance-Based Awards.  Any form of Award permitted
under the Plan, other than a Stock Grant, may be granted as a Qualified Performance-Based Award.  Stock Rights may be granted as
Qualified Performance-Based Awards in accordance with Section 7.1 or Section 7.2, as appropriate, except that the exercise price of
any Option or Stock Appreciation Right intended to qualify as a Qualified Performance-Based Award shall in no event be less than the
Market Value of the Stock on the date of grant, and may become exercisable based on continued service, on satisfaction of
Performance Goals, or on a combination thereof.  Each other Award intended to qualify as a Qualified Performance-Based Award, such
as Restricted Stock, Restricted Stock Units, or Performance Units, shall be subject to satisfaction of one or more Performance Goals
except as otherwise provided in this Section 7.7.  The Committee will have full discretion to select the length of any applicable
Restriction Period or Performance Period, the kind and/or level of the applicable Performance Goal, and whether the Performance Goal
is to apply to the Company, a subsidiary of the Company or any division or business unit or to the individual.  Any Performance Goal or
Goals applicable to Qualified Performance-Based Awards shall be objective, shall be established not later than 90 days after the
beginning of any applicable Performance Period (or at such other date as may be required or permitted for "performance-based
compensation" under Section 162(m) of the Code) and shall otherwise meet the requirements of Section162(m) of the
Code, including the requirement that the outcome of the Performance Goal or Goals be substantially uncertain (as defined for purposes
of Section162(m) of the Code) at the time established.

(d)Payment of Qualified Performance-Based Awards.  A Participant will be eligible to receive payment under a
Qualified Performance-Based Award which is subject to achievement of a Performance Goal or Goals only if the applicable
Performance Goal or Goals are achieved within the applicable Performance Period, as determined by the Committee, provided,
that a Qualified Performance-Based Award may be deemed earned as a result of death, becoming disabled, or in connection with a
Corporate Transaction that constitutes a change of control within the meaning of Section 162(m) of the Code, if the applicable Award
Agreement so provides, even if payment under the Award following the occurrence of such an event would not constitute
"performance-based compensation" under Section 162(m) of the Code. In determining the actual size of an individual
Qualified Performance-Based Award, the Committee may reduce or eliminate the amount of the Qualified Performance-Based Award
earned for the Performance Period, if in its sole and absolute discretion it deems such reduction or elimination is appropriate.









(e)Limitation on Adjustments for Certain Events.  Subject to paragraph (d) above, no adjustment of any Qualified
Performance-Based Award pursuant to Section 8 shall be made except on such basis, if any, as will not cause such Award to provide
other than "performance-based compensation" within the meaning of Section 162(m) of the Code.

(f)Definitions.  For purposes of the Plan
(i)Performance Criteria means the criteria that the Committee selects for purposes of establishing the Performance
Goal or Performance Goals for a Participant for a Performance Period.  The Performance Criteria used to establish Performance Goals
are limited to:  (i)cash flow (before or after dividends), (ii)earnings per share (including, without limitation, earnings
before interest, taxes, depreciation and amortization), (iii)stock price, (iv)return on equity, (v)stockholder
return or total stockholder return, (vi)return on capital (including, without limitation, return on total capital or return on invested
capital), (vii)return on investment, (viii)return on assets or net assets, (ix)market capitalization,
(x)economic value added, (xi)debt leverage (debt to capital), (xii)revenue, (xiii)sales or net sales,
(xiv)backlog, (xv)income, pre-tax income or net income, (xvi)operating income or pre-tax profit,
(xvii)operating profit, net operating profit or economic profit, (xviii)gross margin, operating margin or profit margin,
(xix)return on operating revenue or return on operating assets, (xx)cash from operations, (xxi)operating
ratio, (xxii)operating revenue, (xxiii)market share improvement, (xxiv)general and administrative expenses
and (xxv)customer service.

(ii)Performance Goals means, for a Performance Period, the written goal or goals established by the Committee for
the Performance Period based upon one or more of the Performance Criteria.  The Performance Goals may be expressed in terms of
overall Company performance or the performance of a division, business unit, subsidiary, or an individual, either individually,
alternatively or in any combination, applied to either the Company as a whole or to a business unit or Affiliate, either individually,
alternatively or in any combination, and measured either quarterly, annually or cumulatively over a period of years, on an absolute basis
or relative to a pre-established target, to previous years' results or to a designated comparison group, in each case as specified by the
Committee. The Committee will objectively define the manner of calculating the Performance Goal or Goals it selects to use for such
Performance Period for such Participant, including whether or to what extent there shall not be taken into account any of the following
events that occurs during a performance period: (i)asset write-downs, (ii)litigation, claims, judgments or settlements,
(iii)the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results,
(iv)accruals for reorganization and restructuring programs and (v)any extraordinary, unusual, non-recurring or non-
comparable items (A)as described in Accounting Standard Codification Section 225-20 (or its successor provisions),
(B)as described in management's discussion and analysis of financial condition and results of operations appearing in the












Company's annual report to stockholders for the applicable year, or (C)publicly announced by the Company in a press release
or conference call relating to the Company's results of operations or financial condition for a completed quarterly or annual fiscal
period.



7.8.   Awards to Participants Outside the United States.  The Committee may modify the terms of
any Award under the Plan granted to a Participant who is, at the time of grant or during the term of the Award, resident or primarily
employed outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that the Award
shall conform to laws, regulations, and customs of the country in which the Participant is then resident or primarily employed, or so that
the value and other benefits of the Award to the Participant, as affected by foreign tax laws and other restrictions applicable as a result
of the Participant's residence or employment abroad, shall be comparable to the value of such an Award to a Participant who is resident
or primarily employed in the United States.  The Committee may establish supplements to, or amendments, restatements, or alternative
versions of the Plan for the purpose of granting and administrating any such modified Award.  No such modification, supplement,
amendment, restatement or alternative version may increase the share limit of Section4.


8.   Adjustment Provisions

8.1.   Adjustment for Corporate Actions. All of the share numbers set forth in the
Plan reflect the capital structure of the Company as of the Effective Date.  If subsequent to the Effective Date the outstanding shares of
Stock (or any other securities covered by the Plan by reason of the prior application of this Section) are increased, decreased, or
exchanged for a different number or kind of shares or other securities, or if additional shares or new or different shares or other
securities are distributed with respect to shares of Stock, as a result of a reorganization, recapitalization, reclassification, stock dividend,
stock split, reverse stock split, or other similar distribution with respect to such shares of Stock, an appropriate and proportionate
adjustment will be made in (i)the maximum numbers and kinds of shares provided in Section 4, (ii)the numbers and
kinds of shares or other securities subject to the then outstanding Awards, (iii)the exercise price for each share or other unit of
any other securities subject to then outstanding Stock Rights (without change in the aggregate exercise price as to which such Rights
remain exercisable), and (iv) the repurchase price of each share of Restricted Stock then subject to a Risk of Forfeiture in the form of a
Company repurchase right.


8.2.   Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. In
the event of any corporate action not specifically covered by the preceding Section, including, but not limited to, an extraordinary cash
distribution on Stock, a corporate separation or other reorganization or liquidation, the Committee may make such adjustment of
outstanding Awards and their terms, if any, as it, in its sole discretion, may deem equitable and appropriate in the circumstances.  The
Committee also may make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events (including, without limitation, the events described in this Section) affecting the Company or the financial
statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to








prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

8.3.   Related Matters.  Any adjustment in Awards made pursuant to Section8.1 or 8.2
shall be determined and made, if at all, by the Committee, acting in its sole discretion, and shall include any correlative modification of
terms, including of Stock Right exercise prices, rates of vesting or exercisability, Risks of Forfeiture, applicable repurchase prices for
Restricted Stock, and Performance Goals and other business objectives which the Committee may deem necessary or appropriate so
as to ensure the rights of the Participants in their respective Awards are not substantially diminished nor enlarged as a result of the
adjustment and corporate action other than as expressly contemplated in this Section 8.  The Committee, in its discretion, may
determine that no fraction of a share of Stock shall be purchasable or deliverable upon exercise, and in that event if any adjustment
hereunder of the number of shares of Stock covered by an Award would cause such number to include a fraction of a share of Stock,
such number of shares of Stock shall be adjusted to the nearest smaller whole number of shares.  No adjustment of an Option exercise
price per share pursuant to Sections 8.1 or 8.2 shall result in an exercise price which is less than the par value of the Stock.  

8.4.   Corporate Transactions.

(a)Treatment of Awards in a Corporate Transaction.  In a Corporate Transaction, the Committee, in its sole and
absolute discretion, may take any one or more of the following actions as to all or any (or any portion of) outstanding
Awards.

(1)Assumption and Substitution.  Provide that such Awards shall be assumed, or substantially
equivalent rights shall be provided in substitution therefor, by the acquiring or succeeding entity (or an affiliate thereof), and that any
repurchase or other rights of the Company under each such Award shall inure to the benefit of such acquiring or succeeding entity (or
affiliate thereof).

(2)Termination, Forfeiture and Reacquisition.  Upon written notice to the holders, provide
that:

(A) any unexercised Stock Rights shall terminate immediately prior to the consummation of the Corporate Transaction
unless exercised within a specified period following the date of such notice and that any Stock Rights not then exercisable will expire
automatically upon consummation of the Corporate Transaction;

(B) any Restricted Stock Units shall terminate and be forfeited immediately prior to the consummation of the Corporate
Transaction to the extent they are then subject to a Risk of Forfeiture; and/or

(C)any shares of Restricted Stock shall automatically be reacquired by the Corporation upon consummation of the
Corporate Transaction at a price per share equal to the lesser of the Market Value of the Restricted Stock and the purchase price paid
by the Participant.










(3)Acceleration of Vesting.  Provide that:

 (A)any and all Stock Rights not already exercisable in full shall Accelerate with respect to all or a portion of the shares for
which such Stock Rights are not then exercisable prior to or upon the consummation of the Corporate Transaction; and/or

(B) any Risk of Forfeiture applicable to Restricted Stock and Restricted Stock Units which is not based on achievement of
Performance Goals or other business objectives shall lapse upon consummation of the Corporate Transaction with respect to all or a
portion of the Restricted Stock and Restricted Stock Units then subject to such Risk of Forfeiture.

(4)Achievement of Performance Goals.  Provide that all outstanding Awards of Restricted
Stock and Restricted Stock Units conditioned on the achievement of Performance Goals or other business objectives and the target
payout opportunities attainable under outstanding Performance Units shall be deemed to have been satisfied as of the effective date of
the Corporate Transaction as to (i) none of, (ii) all of or (iii) a pro rata number of shares based on the assumed achievement of all
relevant Performance Goals or other business objectives and the length of time within the Restriction Period or Performance Period
which has elapsed prior to the Corporate Transaction.  All such Awards of Performance Units and Restricted Stock Units shall be paid
to the extent earned to Participants in accordance with their terms within 30 days following the effective date of the Corporate
Transaction.

(5)Cash Payments to Holders of Stock Rights.  Provide for cash
payments, net of applicable tax withholdings, to be made to holders of Stock Rights equal to the excess, if any, of (A) the acquisition
price times the number of shares of Stock subject to a Stock Right (to the extent the exercise price does not exceed the acquisition
price) over (B) the aggregate exercise price for all such shares of Stock subject to the Stock Right, in exchange for the termination of
such Stock Right; provided, that if the acquisition price does not exceed the exercise price of any such Stock Right, the Committee may
cancel that Stock Right without the payment of any consideration therefore prior to or upon the Corporate Transaction.  For this
purpose, "acquisition price" means the amount of cash, and market value of any other consideration, received in
payment for a share of Stock surrendered in a Corporate Transaction. 

(6)Conversion of Stock Rights Upon Liquidation or Dissolution.
Provide that, in connection with a liquidation or dissolution of the Company, Stock Rights shall convert into the right to receive
liquidation proceeds net of the exercise price thereof and any applicable tax withholdings.









(7)Any combination of the foregoing.



None of the foregoing shall apply, however, (i) in the case of any Award pursuant to an Award Agreement requiring other or
additional terms upon a Corporate Transaction (or similar event), or (ii) if specifically prohibited under applicable laws, or by the rules
and regulations of any governing governmental agencies or national securities exchanges on which the Stock is listed.  Nor shall any of
the foregoing apply in the case of a Qualified Performance-Based Award except to the extent the foregoing would not interfere with the
qualification of the grant of the Award under Section 162(m) of the Code.

(b)Assumption and Substitution of Awards.  For purposes of Section
8.4(a)(1) above, an Award shall be considered assumed, or a substantially equivalent award shall be considered to have been provided
in substitution therefor, if following consummation of the Corporate Transaction the Award is assumed and/or exchanged or replaced
with another award issued by the acquiring or succeeding entity (or an affiliate thereof) that confers the right to purchase or receive the
value of, for each share of Stock subject to the Award immediately prior to the consummation of the Corporate Transaction, the
consideration (whether cash, securities or other property) received as a result of the Corporate Transaction by holders of Stock for each
share of Stock held immediately prior to the consummation of the Corporate 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 of Stock); provided,
however, that if the consideration received as a result of the Corporate Transaction is not solely common stock (or its equivalent) of
the acquiring or succeeding entity (or an affiliate thereof), the Committee may provide for the consideration to be received upon the
exercise of Award to consist of or be based on solely common stock (or its equivalent) of the acquiring or succeeding entity (or an
affiliate thereof) equivalent in value to the per share consideration received by holders of outstanding shares of Stock as a result of the
Corporate Transaction.

(c) Related Matters. In taking any of the actions permitted under this Section8.4, the Committee shall not be
obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically. Any determinations required to
carry out the foregoing provisions of this Section 8.4, including, but not limited to, the market value of other consideration received by
holders of Stock in a Corporate Transaction and whether substantially equivalent awards have been substituted, shall be made by the
Committee acting in its sole and absolute discretion.  In connection with any action or actions taken by the Committee in respect of
Awards and in connection with a Transaction, the Committee may require such acknowledgements of satisfaction and releases from
Participants as it may determine.





9.   Settlement of
Awards

9.1.   In General.  Awards of Restricted Stock shall be settled in accordance with
their terms.  All other Awards may be settled in cash or Stock, or a combination thereof, as determined by the Committee at or after
grant and subject to any contrary Award Agreement.  The Committee may not require settlement of any Award in Stock pursuant to the
immediately preceding sentence to the extent issuance of such Stock would be prohibited or unreasonably delayed by reason of any
other provision of the Plan.








9.2.   Violation of Law.  Notwithstanding any other provision of the Plan or the relevant Award
Agreement, if, at any time, in the reasonable opinion of the Company, the issuance of shares of Stock covered by an Award may
constitute a violation of law, then the Company may delay such issuance and the delivery of a certificate for such shares until (i)
approval shall have been obtained from such governmental agencies, other than the Securities and Exchange Commission, as may be
required under any applicable law, rule, or regulation and (ii) in the case where such issuance would constitute a violation of a law
administered by or a regulation of the Securities and Exchange Commission, one of the following conditions shall have been
satisfied:

(a)the shares of Stock are at the time of the issue of such shares effectively registered under the Securities Act of 1933, as
amended; or

(b)the Company shall have determined, on such basis as it deems appropriate (including an opinion of counsel in form and
substance satisfactory to the Company) that the sale, transfer, assignment, pledge, encumbrance or other disposition of such shares
does not require registration under the Securities Act of 1933, as amended or any applicable State securities laws.

The Company shall make all reasonable efforts to bring about the occurrence of said events.

9.3.   Corporate Restrictions on Rights in Stock. Any Stock to be issued pursuant to Awards
granted under the Plan shall be subject to all restrictions upon the transfer thereof which may be now or hereafter imposed by the
charter, certificate or articles, and by-laws, of the Company.  Whenever Stock is to be issued pursuant to an Award, if the Committee so
directs at or after grant, the Company shall be under no obligation to issue such shares until such time, if ever, as the recipient of the
Award (and any person who exercises any Option, in whole or in part), shall have become a party to and bound by the Stockholders'
Agreement, if any.  In the event of any conflict between the provisions of this Plan and the provisions of the Stockholders' Agreement,
the provisions of the Stockholders' Agreement shall control except as required to fulfill the intention that any Incentive Option qualify as
such, but insofar as possible the provisions of the Plan and such Agreement shall be construed so as to give full force and effect to all
such provisions.

9.4.   Investment Representations.  The Company shall be under no obligation to issue any
shares of Stock covered by any Award unless the shares to be issued pursuant to Awards granted under the Plan have been effectively
registered under the Securities Act of 1933, as amended, or the Participant shall have made such written representations to the
Company (upon which the Company believes it may reasonably rely) as the Company may deem necessary or appropriate for
purposes of confirming that the issuance of such shares will be exempt from the registration requirements of that Act and any
applicable state securities laws and otherwise in compliance with all applicable laws, rules and regulations, including, but not limited to,
that the Participant is acquiring the shares for his or her own account for the purpose of investment and not with a view to, or for sale in
connection with, the distribution of any such shares.









9.5.   Registration.  If the Company shall deem it necessary or desirable to register under the
Securities Act of 1933, as amended, or other applicable statutes any shares of Stock issued or to be issued pursuant to Awards granted
under the Plan, or to qualify any such shares of Stock for exemption from the Securities Act of 1933, as amended or other applicable
statutes, then the Company shall take such action at its own expense.  The Company may require from each recipient of an Award, or
each holder of shares of Stock acquired pursuant to the Plan, such information in writing for use in any registration statement,
prospectus, preliminary prospectus or offering circular as is reasonably necessary for that purpose and may require reasonable
indemnity to the Company and its officers and directors from that holder against all losses, claims, damage and liabilities arising from
use of the information so furnished and caused by any untrue statement of any material fact therein or caused by the omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the
circumstances under which they were made.  In addition, the Company may require of any such person that he or she agree that,
without the prior written consent of the Company or the managing underwriter in any public offering of shares of Stock, he or she will
not sell, make any short sale of, loan, grant any option for the purchase of, pledge or otherwise encumber, or otherwise dispose of, any
shares of Stock during the period not to exceed 180 days commencing on the effective date of the registration statement relating to the
underwritten public offering of securities. Without limiting the generality of the foregoing provisions of this Section 9.5, if in connection
with any underwritten public offering of securities of the Company the managing underwriter of such offering requires that the
Company's directors and officers enter into a lock-up agreement containing provisions that are more restrictive than
the provisions set forth in the preceding sentence, then (a) each holder of shares of Stock acquired pursuant to the Plan (regardless of
whether such person has complied or complies with the provisions of clause (b) below) shall be bound by, and shall be deemed to have
agreed to, the same lock-up terms as those to which the Company's directors and officers are required to adhere; and (b) at the request
of the Company or such managing underwriter, each such person shall execute and deliver a lock-up agreement in form and substance
equivalent to that which is required to be executed by the Company's directors and officers.

9.6.   Placement of Legends; Stop Orders; etc.  Each share of Stock to be issued pursuant to
Awards granted under the Plan may bear a reference to the investment representations made in accordance with Section9.4
in addition to any other applicable restrictions under the Plan, the terms of the Award and if applicable under the Stockholders'
Agreement and to the fact that no registration statement has been filed with the Securities and Exchange Commission in respect to
such shares of Stock.  All certificates for shares of Stock or other securities delivered under the Plan shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of any
stock exchange upon which the Stock is then listed, and any applicable federal or state securities law, and the Committee may cause a
legend or legends to be placed on any such certificates to make appropriate reference to such restrictions.









9.7.   Tax Withholding. Whenever shares of Stock are issued or to be issued pursuant to Awards
granted under the Plan, the Company shall have the right to require the recipient to remit to the Company an amount sufficient to satisfy
federal, state, local or other withholding tax requirements if, when, and to the extent required by law (whether so required to secure for
the Company an otherwise available tax deduction or otherwise) prior to the delivery of any certificate or certificates for such shares.
The obligations of the Company under the Plan shall be conditional on satisfaction of all such withholding obligations and the Company
shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the
recipient of an Award.  However, in such cases Participants may elect, subject to the approval of the Committee, acting in its sole
discretion, to satisfy an applicable withholding requirement, in whole or in part, by having the Company withhold shares of Stock to
satisfy their tax obligations.  Participants may only elect to have shares of Stock withheld having a Market Value on the date the tax is
to be determined equal to the minimum statutory total tax which could be imposed on the transaction.  All elections shall be irrevocable,
made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee deems
appropriate.

9.8.   Company Charter and By-Laws; Other Company Policies. This Plan and all Awards
granted under the Plan (including the exercise, settlement or exchange of an Award) are subject to and must comply with the certificate
of incorporation and by-laws of the Company, as they may be amended from time to time, and all other Company policies duly adopted
by the Board, the Committee or any other committee of the Board as in effect from time to time regarding the acquisition, ownership or
sale of Stock by employees and other service providers, including, without limitation, policies intended to limit the potential for insider
trading and to avoid or recover compensation payable or paid on the basis of inaccurate financial results or statements, employee
conduct, and other similar events.


10.   Reservation of
Stock

The Company shall at all times during the term of the Plan and any outstanding Awards granted hereunder reserve
or otherwise keep available such number of shares of Stock as will be sufficient to satisfy the requirements of the Plan (if then in effect)
and the Awards and shall pay all fees and expenses necessarily incurred by the Company in connection therewith.

11.   Limitation of
Rights in Stock; No Special Service Rights

A Participant shall not be deemed for any purpose to be a stockholder of the Company with respect to any of the
shares of Stock subject to an Award, unless and until a certificate shall have been issued therefor and delivered to the Participant or his
agent.  Any Stock to be issued pursuant to Awards granted under the Plan shall be subject to all restrictions upon the transfer thereof
which may be now or hereafter imposed by the certificate of incorporation and the by-laws of the Company.  Nothing contained in the
Plan or in any Award Agreement shall confer upon any recipient of an Award any right with respect to the continuation of his or her
employment or other association with the Company (or any Affiliate), or interfere in any way with the right of the Company (or any
Affiliate), subject to the terms of any separate employment or consulting agreement or provision of law or certificate of incorporation or








by-laws to the contrary, at any time to terminate such employment or consulting agreement or to increase or decrease, or otherwise
adjust, the other terms and conditions of the recipient's employment or other association with the Company and its Affiliates.

12.   Unfunded Status
of Plan

The Plan is intended to constitute an "unfunded" plan for incentive compensation, and the Plan is not
intended to constitute a plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended.  With
respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any
rights that are greater than those of a general creditor of the Company.  In its sole discretion, the Committee may authorize the creation
of trusts or other arrangements to meet the obligations created under the Plan to deliver Stock or payments with respect to Stock Rights
and other Awards hereunder, provided, however, that the existence of such trusts or other arrangements is consistent with the
unfunded status of the Plan.

13.   Nonexclusivity of
the Plan

Neither the adoption of the Plan by the Board nor any action taken in connection with the adoption or operation of the
Plan shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may
deem desirable, including without limitation, the granting of stock options and restricted stock other than under the Plan, and such
arrangements may be either applicable generally or only in specific cases.

14.   No Guarantee of
Tax Consequences

Neither the Company nor any Affiliate, nor any director, officer, agent, representative or employee of either,
guarantees to the Participant or any other person any particular tax consequences as a result of the grant of, exercise of rights under,
or payment in respect of an Award, including, but not limited to, that an Option granted as an Incentive Option has or will qualify as an
"incentive stock option" within the meaning of Section 422 of the Code or that the provisions and penalties of Section 409A
of the Code, pertaining non-qualified plans of deferred compensation, will or will not apply.

15.   Termination and
Amendment of the Plan

15.1.   Termination or Amendment of the Plan. Subject to the limitations contained
in Section 15.3 below, including specifically the requirement of stockholder approval if applicable, the Board may at any time terminate
the Plan or make such modifications of the Plan as it shall deem advisable.  Unless the Board otherwise expressly provides, no
amendment of the Plan shall affect the terms of any Award outstanding on the date of such amendment.

15.2.   Termination or Amendment of Outstanding Awards; Assumptions. Subject to the limitations
contained in Section 15.3 below, including specifically the requirement of stockholder approval if applicable, the Committee may at any
time:

(a) amend the terms of any Award theretofore granted, prospectively or retroactively, provided that the Award as amended is
consistent with the terms of the Plan;








(b) accept the cancellation of outstanding Awards or of outstanding stock options or other equity-based compensation awards
granted by another issuer in return for the grant of new Awards for the same or a different number of shares of Stock and on the same
or different terms and conditions (including, but not limited to, the exercise price of any Option); and

(c)(i) offer to buy out for a payment in cash or cash equivalents, or in exchange for another Award, any Award previously granted or
(ii) authorize the recipient of an Award to elect to cash out an Award previously granted, in either case at such time and based upon
such terms and conditions as the Committee shall establish.

15.3.   Limitations on Amendments, Etc. 

Without the approval of the Company's stockholders, no amendment or modification of the Plan by the Board may (i) increase
the number of shares of Stock which may be issued under the Plan, (ii) change the description of the persons eligible for Awards, or (iii)
effect any other change for which stockholder approval is required by law or the rules of any relevant stock exchange.  Furthermore,
except in connection with a Corporate Transaction, the terms of outstanding Stock Rights may not be amended to reduce their exercise
price, nor may outstanding Stock Rights be cancelled in exchange for cash, Stock Rights with exercise prices that are less than the
exercise prices of the original Stock Rights, or other Awards, without stockholder approval.

No amendment or modification of the Plan by the Board, or of an outstanding Award by the Committee, shall impair the rights of the
recipient of any Award outstanding on the date of such amendment or modification or such Award, as the case may be, without the
Participant's consent; provided, however, that no such consent shall be required if (i)the Board or Committee, as the
case may be, determines in its sole discretion and prior to the date of any Corporate Transaction that such amendment or alteration
either is required or advisable in order for the Company, the Plan or the Award to satisfy any law or regulation, including without
limitation the provisions of Section409A of the Code, or to meet the requirements of or avoid adverse financial accounting
consequences under any accounting standard, or (ii)the Board or Committee, as the case may be, determines in its sole
discretion and prior to the date of any Corporate Transaction that such amendment or alteration is not reasonably likely to significantly
diminish the benefits provided under the Award, or that any such diminution has been adequately compensated.

16.   Notices and Other
Communications

Any notice, demand, request or other communication hereunder to any party shall be deemed to be sufficient if
contained in a written instrument delivered in person or duly sent by first class registered, certified or overnight mail, postage prepaid, or
telecopied with a confirmation copy by regular, certified or overnight mail, addressed or telecopied, as the case may be, (i) if to the
recipient of an Award, at his or her residence address last filed with the Company and (ii) if to the Company, at its principal place of
business, addressed to the attention of its Chief Financial Officer, or to such other address or telecopier number, as the case may be,
as the addressee may have designated by notice to the addressor.  All such notices, requests, demands and other communications
shall be deemed to have been received: (i)in the case of









personal delivery, on the date of such delivery; (ii)in the
case of mailing, when received by the addressee; and (iii)in the case of facsimile transmission, when confirmed by facsimile
machine report.

17.   Administrative Provisions

Nothing contained in the Plan shall require the issuance or delivery of certificates for any period during which the
Company has elected to maintain or caused to be maintained the evidence of ownership of its shares of Stock, either generally or in the
case of Stock acquired pursuant to Awards, by book entry, and all references herein to such actions or to certificates shall be
interpreted accordingly in light of the systems maintained for that purpose.  Furthermore, any reference herein to actions to be taken or
notices (including of grants of Awards) to be provided in writing or pursuant to specific procedures may be satisfied by means of and
pursuant to any electronic or automated voice response systems the Company may elect to establish for such purposes, either by itself
or through the services of a third party, for the period such systems are in effect.

18.   Governing
Law

It is intended that all Awards shall be granted and maintained on a basis which ensures they are exempt from, or
otherwise compliant with, the requirements of Section 409A of the Code and the Plan shall be governed, interpreted and enforced
consistent with such intent.  Neither the Committee nor the Company, nor any of its Affiliates or its or their officers, employees, agents,
or representatives, shall have any liability or responsibility for any adverse federal, state or local tax consequences and penalty taxes
which may result the grant or settlement of any Award on a basis contrary to the provisions of Section 409A of the Code or comparable
provisions of any applicable state or local income tax laws.  The Plan and all Award Agreements and actions taken thereunder
otherwise shall be governed, interpreted and enforced in accordance with the laws of the state of California, without regard to the
conflicts of laws principles thereof.