Document:

EXHIBIT 10.7

 Exhibit 10.7 
  
 EURONET LONG-TERM INCENTIVE 
 STOCK OPTION PLAN 
  
 (As Amended and in effect as of June 24, 2003) 
  
 1. Purpose of Plan. The purpose of the Euronet Long-Term Incentive Plan (the “Plan”) is to (i) increase the ownership of common stock of Euronet Services Inc. (the “Company”) by those key employees or independent
consultants who are primarily responsible for the continued growth, development and financial success of the Company and its subsidiaries, and (ii) attract and retain such employees and consultants and reward them for the continued profitable
performance of the Company and its subsidiaries. 
  
 The Plan was
adopted by the Board of Directors of the Company (the Board”) on December 17, 1996. Certain stock option grants were made to employees and consultants of the Company or its subsidiaries in agreements made prior to the date of adoption of this
Plan (“Prior Grants”). This Plan is intended to incorporate all such grants which shall, from the date the grantees under such grants so acknowledge, be governed by this Plan. 
  
 2. Definitions. The following definitions are applicable herein: 
  
 “Adoption Date” — December 17, 1996, the date on which the
original version of this Plan was adopted by the Board. 
  
 “Award” — individually or collectively, Options granted hereunder. 
  
 “Board” — the Board of Directors of the Company. 
  
 “Company” — Euronet Services Inc., acting for purposes of this plan through the Board. The term “Company” as used herein shall
also include any successor to the Company as provided in Section 9.6 of this Plan. 
  
 “Date of Grant” — the date on which the grant of an Award is authorized by the Company or such other date as may be specified by the Company in such authorization. 
  
 “Date of Retirement” — the date on which an employee of the
Company or a Subsidiary retires from such employment or the effective date of an Early Retirement. 
  
 “Early Retirement” — the retirement of an employee of the Company or a Subsidiary prior to the legally mandated age of retirement, if any,
or that age provided in applicable policies of the Company as such may be instituted from time to time. 
  
 “Eligible Person” — any person employed or retained as a consultant by the Company or a Subsidiary on a regular basis who satisfies all of
the requirements of Section 5.3. 
  
 “Fair Market Value”
— the greater of (i) the per share price at which shares of the Company were issued to or purchased by any party in the last transaction occurring prior to the date of the exercise of the Option, and (ii) the net book value of the Company,
divided by the number of the Company shares outstanding at the time of the exercise of an Award by a 
  

 1 

 Participant; provided that the Fair Market Value shall always be at least equal to the par value of the Stock. In the
event that a public market is created for shares, then the Fair Market Value of a share of common stock on any day shall be the closing sale quotation on the market with respect to which such shares are traded as reported for such day or, if no such
quotation is reported for such day, the average of the high bid and low asked price of common stock as reported for such day. If no quotation is made for the applicable day, the Fair Market Value of a share of common stock on such day shall be
determined in the manner set forth in the preceding sentence using quotations for the next preceding day for which there were quotations, provided that such quotations shall have been made within the ten (10) “trading” days preceding the
applicable day. Notwithstanding the foregoing, if no such information is available or if otherwise deemed necessary or appropriate by the Option Committee, the Fair Market Value of a share of common stock on any day shall be determined in good faith
by the Option Committee taking into account all relevant material facts and circumstances. 
  
 “Group of Persons” — a “group” as such term is defined in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder (the
“Exchange Act”). 
  
 “Option” or “Stock
Option” — an option granted under Section 5 of this Plan. 
  
 “Option Committee” — an Option Committee created by the Board. It is acknowledged that no such committee exists as of the time of the adoption of this Plan and until such creation all functions attributed hereunder to the
Option Committee shall be exercised by the Board. 
  
 “Optionee” — any person to whom an Option is granted under this Plan. 
  
 “Option Period” or “Option Periods” — the period or periods during which an Option is exercisable as described in Section 5.6. 
  
 “Option Shares” — shares purchase by an Optionee under an Option. 
  
 “Owner” — a person or Group which owns shares, including a
beneficial owner as defined under the Exchange Act. 
  
 “Participant” — an Eligible Person who has been granted an Award under this Plan. 
  
 “Person” — any individual or legal entity of any form whatsoever. 
  
 “Plan” — this Euronet Long Term Incentive Stock Option Plan. 
  
 “Securities Act” — the laws and regulations of any
jurisdiction governing the issuance and trading of securities, including, without limitation, the U.S. Securities Act of 1933. 
  
 “Stock Option Agreement” — an agreement entered into by an Optionee and the Company pursuant to Section 5 of this Plan. 
  
 “Subsidiary” — any corporation of which 50% or more of the
outstanding voting stock or voting power is beneficially owned, directly or indirectly, by the Company. 
  

 2 

 “Termination” — termination of the employment or the consulting arrangement of a person
with the Company or any Subsidiary. The Company may, in its discretion, determine whether any “leave of absence” constitutes a Termination for purposes of this Plan and the impact, if any, of any such leave of absence on Awards made under
this Plan. The Company shall have the right to determine whether the termination of a Participant’s employment or consulting arrangement is a dismissal for cause and the date of Termination in such case, which date the Company may retroactively
deem to be the date of the action that constitutes cause for dismissal. Such determinations of the Company shall be final, binding and conclusive. 
  
 “Vested Shares” — shares of Stock with respect to which an Optionee’s purchase right under an Option has vested in accordance with the
terms of Section 5.6. 
  
 3. Effective Date and Duration.

  
 3.1 Effective Date. This Plan shall be effective as of
the Adoption Date. 
  
 3.2 Period for Grant of Awards.
Awards may be made as provided herein for a period of ten (10) years after the Adoption Date. 
  
 3.3 Termination. This Plan shall continue in effect until all matters relating to the payment of Awards and administration of the Plan have been settled. 
  
 4. Administration. 
  
 4.1 The Board; Option Committee. The Plan shall be administered in
accordance with the terms of this Plan document by the Board or a committee thereof, provided that all questions of interpretation regarding the terms and conditions pursuant to which Awards are granted, exercised or forfeited under the provisions
hereof, shall be subject to the determination of the Board or the Option Committee, as the case may be. Any such determination shall be final and binding upon all parties affected thereby. 
  
 4.2 Indemnification. Each member of the Board or the Option Committee
(and each person to whom any of them has delegated any authority or power under this Plan) shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or incurred by such
person in connection with or resulting from any claim, action, suit, or proceeding to which such person may be a party or in which such person may be involved by reason of any action or failure to act under the Plan; and (ii) any and all amounts
paid by such person in satisfaction of judgment in any such action, suit, or proceeding relating to the Plan. Each person covered by this indemnification shall give the Company an opportunity, at its own expense, to handle and defend the same before
such person undertakes to handle and defend it on such person’s own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Articles of
Incorporation or By-Laws of the Company or any of its Subsidiaries, as a matter of law, or otherwise, or of any other power that the Company may have to indemnify such person or hold such person harmless. 
  
 4.3 Reliance on Reports. Each member of the Board or the Option
Committee (and each person to whom any of them has delegated any authority or power under this Plan) shall be fully justified in relying or acting in good faith upon any report made 
  

 3 

 by the independent public accountants of the Company and its Subsidiaries and upon any other information furnished in
connection with the Plan. In no event shall any person who is or shall have been a member of the Board or the Option Committee be liable for any determination made or other action taken or any omission to act in reliance upon any such report or
information or for any action taken, including the furnishing of information, or failure to act, if in good faith. 
  
 5. Stock Options. 
  
 5.1 Grant of Stock Options. The Company may, from time to time, grant Stock Options for shares of common stock in the Company to one or more
Eligible Persons, provided that: (i) all grants must be approved in advance by the Board or by the Option Committee acting on behalf of the Board; (ii) the aggregate number of shares of Stock subject to Stock Options under this Plan, subject to any
adjustment pursuant to Section 5.11, may not exceed Two Million Four Hundred Thirteen Thousand Five Hundred and Eighty-Six (2,413,586) shares, plus all Prior Grants; (iii) in the event that a Stock Option lapses or the rights of the Participant to
whom it as granted terminate, any shares of Stock subject to such Option shall again be available for the grant of an Option to another Eligible Person under this Plan; and (iv) shares of Stock delivered by the Company under this Plan may be either
authorized and unissued Stock, Stock held in the treasury of the Company or Stock purchased on the open market (including private purchases), in accordance with any applicable Securities Act. 
  
 5.2 Payment Nature of Option. All Options granted shall be in
consideration of services performed for the Company or its Subsidiaries by the Optionee. All Options granted shall constitute a special incentive payment to the Optionee and shall not be taken into account in computing the amount of salary or
compensation of the Optionee for the purpose of determining any benefits under any pension, retirement, profit-sharing, bonus, life insurance or other benefit plan of the Company or under any agreement between the Company and the Optionee, unless
such plan or agreement specifically otherwise provides. 
  
 5.3
Eligibility. Key employees and consultants of the Company and its Subsidiaries (including employees and consultants who are members of the Board) who, in the opinion and sole discretion of the Company, are primarily responsible for the
continued growth and development and financial success of the business of the Company or one or more of its Subsidiaries shall be eligible to be granted Awards under the Plan. Subject to the provisions of this Plan, the Company may from time to time
select from such Eligible Persons those to whom Awards shall be granted and determine the nature and amount of each Award. The Company shall not be under any obligation to grant any employee or consultant of the Company or its Subsidiaries an Award
under this Plan. 
  
 5.4 Non-Uniform Determinations. The
Company’s determinations under this Plan need not be uniform and may be made by it selectively among Eligible Persons who receive, or are eligible to receive, Options (whether or not such persons are similarly situated). Without limiting the
generality of the foregoing, the Company shall be entitled, among other things, to make non-uniform and selective determinations which may, inter alia, reflect the specific terms of individual employment or consulting agreements, and
to enter into non-uniform and selective Option Agreements, as to (a) the persons qualified to receive Options and (b) the terms and conditions of Options. 
  

 4 

 5.5 Number of Shares of Stock Subject to Option. In determining the size of Options to be granted,
the Company shall take into account a prospective Participant’s job responsibilities, level, performance, potential, cash compensation level, the Fair Market Value of the Stock at the time of granting the Award, as well as such other
considerations it deems appropriate. 
  
 5.6 Stock Option
Terms. Each Option granted under this Plan shall be evidenced by a Stock Option Agreement between the Company and the Participant under terms and conditions approved by the Company, provided, however, that unless otherwise provided in the Stock
Option Agreement, the following terms and conditions shall apply: 
  
 (1) The Optionee’s right to exercise the Options granted shall vest over a period of five years, in five tranches, each equal to one-fifth of the total number of shares of Stock which are the subject of an Option grant. One tranche
shall vest on each anniversary of the Date of Grant for five years after the Date of Grant. 
  
 (2) The Options are exercisable with respect to Vested Shares either in total or in part, with a partial exercise not affecting the exercisability of the balance of the Option. 
  
 (3) Each Option shall cease to be exercisable as to any share of Stock, at
the earliest of (i) the Optionee’s purchase of the entire amount of Stock to which the Option relates or (ii) the lapse of the Option in accordance with Section 5.8 below. 
  
 (4) Options are not transferable by the Optionee except by will or the laws of descent and distribution and shall be
exercisable (i) during the Optionee’s lifetime only by the Optionee, or by the Optionee’s guardian or legal representative or (ii) after an Optionee’s death by the Optionee’s beneficiary or representative of the estate of the
Optionee as provided in Section 5.8. In the event a Stock Option Agreement establishes an Option Period which does not begin immediately upon the grant thereof, such agreement may initially provide, or the Company may at any time thereafter
unilaterally amend it to provide, for the immediate exercisability of the Option granted therein upon the occurrence of events determined by the Company, in its sole discretion, to justify such immediate exercisability. 
  
 (5) The Option price per share of Stock shall be 100% of the Fair Market
Value at the Date of Grant. The Option price shall be payable in cash, in full, at the time of the exercise of the Option. 
  
 5.7 Dividend Equivalency. Any Option may, in the discretion of the Company, provide for dividend equivalency rights under which the Participant
shall be entitled to additional payments, in the nature of compensation, equal to the amount of dividends which would have been paid, during the period such Option is held, on the number of shares of Stock equal to the number of shares subject to
such Option. 
  
 5.8 Lapse of Option. An Option will lapse
upon the first occurrence of one of the following circumstances: (i) 10 years from the Date of Grant; (ii) on the 90th day following the Optionee’s Date of Retirement; (iii) on the date which is 60 days after an Optionee’s Termination; or
(iv) at the expiration of the Option Period set forth in the Stock Option Agreement; provided that the Option Committee may, on a case by case basis, permit extension of the period of time within which an Optionee may exercise Options beyond the
90-day, 
  

 5 

 60-day or six month periods provided in subsections (ii) and (iii) above, and the following sentence, respectively. If,
however, the Optionee dies within the Option Period and prior to the lapse of the Option, the Option shall lapse unless it is exercised within the Option Period or one year from the date of the Optionee’s death, whichever is earlier, by the
Optionee’s beneficiary, legal representative or representatives or by the person or persons entitled to do so under the Optionee’s will or, if the Optionee shall fail to designate a beneficiary or make a testamentary disposition of such
Option or shall die intestate, by the person or persons entitled to receive said Option under the applicable laws of descent and distribution. 
  
 5.9 Change in Control. 
  
 (1) “Change In Control” shall be deemed to have occurred upon the happening of any of the following events: (i) any Person or Group of Persons
(other than any shareholder of the Company as of the Adoption Date), becomes the Owner, directly or indirectly, whether by purchase, acquisition or otherwise, of 50% or more of the outstanding shares of the Company; or (ii) the Company’s
shareholders approve an agreement to merge, consolidate, liquidate, or sell all or substantially all of the Company’s assets. The Company shall give prompt notice to all Optionees in the event it becomes aware that a Change In Control has
occurred. 
  
 (2) Upon the event of a Change in Control: (i) any
Option outstanding prior to the date of the Change in Control shall become, notwithstanding any other provision of this Plan or any Stock Option Agreement, fully vested and immediately exercisable; and (ii) the Company may, in its sole discretion
and subject to the provisions of Section 7 below, amend any Stock Option Agreement in such manner as it deems appropriate, but only as to those Options which have not been exercised. 
  
 (3) Whenever deemed appropriate by the Company, any action referred to in Section 5.9(2)(ii) may be made conditional upon
the consummation of the applicable Change in Control transaction. 
  
 5.10 Restrictions. In furtherance of the foregoing, at the time of any exercise of an Option, the Company may, if it shall determine it necessary or desirable for any reason, require the Optionee, as a condition to the exercise
thereof, to deliver to the Company a written representation of the Optionee’s present intention to purchase the Stock for investment and not for distribution. Each Option shall also be subject to the requirement that, if at any time the Company
determines, in its discretion, that either (i) the registration or qualification of Stock subject to an Option under any Securities Act, or (ii) the consent or approval of any governmental regulatory body is necessary or desirable as a condition of,
or in connection with, the issue or purchase of Stock thereunder, the Option may not be exercised in whole or in part unless such registration, qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Company. 
  
 5.11 Changes in Capital
Structure. In the event of any change in the outstanding shares of Stock by reason of any stock dividend or split, recapitalization, combination or exchange of shares or other similar changes in the Stock, then appropriate adjustments shall be
made in the shares of Stock theretofore awarded to the Optionees and in the aggregate number of shares of Stock which may be awarded pursuant to the Plan. Such adjustments shall be made by the Company and shall be binding and conclusive for all
purposes. Additional shares of Stock issued to a Optionee as the result of any such change shall bear the same restrictions as the shares of Stock to which they relate. 
  

 6 

 6. Other Payments or Options. Nothing contained in this Plan shall be deemed, in any way, to limit
or restrict the Company from granting an option to purchase Stock or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect. 
  
 7. Amendment and Termination. The Board may, from time to time, suspend, discontinue, revise or amend this Plan in
any respect whatsoever provided however that no such amendment shall materially impair any rights or materially increase any obligations under any outstanding Award without the consent of the Participant (or, upon the Participant’s death or
adjudication of mental incapacity, the person having the right to exercise the Award). 
  
 8. Miscellaneous Provisions. 
  
 8.1 Non-transferability. Except as otherwise provided by the Option Committee on a case by case basis, no benefit provided under this Plan shall be subject to alienation or assignment by a Optionee (or by any person entitled to such
benefit pursuant to the terms of this Plan), nor shall it be subject to attachment or other legal process of whatever nature. Any attempted alienation, assignment or attachment shall be void and of no effect whatsoever. Payment shall be made only to
the Optionee entitled to receive the same or said Optionee’s authorized legal representative. 
  
 8.2 No Employment Right or Right of Retainer. Neither this Plan nor any action taken hereunder shall be construed as giving any right to be
retained as an officer, employee or consultant of the Company or any of its Subsidiaries. 
  
 8.3 Tax Withholding. Either the Company or a Subsidiary, as appropriate, shall have the right to deduct from all Awards paid in cash any taxes as it deems to be required by law to be withheld with respect to
such cash payments. In the case of Awards paid in Stock, the employee or other person receiving such Stock may be required to pay to the Company or a Subsidiary, as appropriate, the amount of any such taxes which the Company or a Subsidiary is
required to withhold with respect to such Stock. At the request of an Optionee, or as required by law, upon the exercise of an Option, such sums as may be required for the payment of any estimated or accrued income tax liability may be withheld or
paid by the Optionee to the Company and remitted to the governmental entity entitled to receive the same. 
  
 8.4 Fractional Shares. Any fractional shares concerning Awards shall be eliminated at the time of payment or payout by rounding down for fractions
of less than one-half and rounding up for fractions of equal to or more than one-half. No cash settlements shall be made with respect to fractional shares eliminated by rounding. 
  
 8.5 Government and Other Regulations. The obligation of the Company to make payment of Awards in Stock or otherwise
shall be subject to all applicable laws, rules and regulations, and to such approvals by any government agencies as may be required. If Stock awarded under the Plan may in certain circumstances be exempt from registration under the Securities Act,
the Company may restrict its transfer in such manner as it deems advisable to ensure such exempt status. 
  

 7 

 8.6 Company Successors. In the event the Company becomes a party to a merger, consolidation, sale
of substantially all of its assets or any other corporate reorganization in which the Company will not be the surviving corporation or in which the holders of the Stock will receive securities of another corporation (in any such case, the “New
Company”), then the New Company shall assume the rights and obligations of the Company under this Plan. 
  
 8.7 Governing Law. All matters relating to the Plan or to Awards granted hereunder shall be governed by the laws of the State of Delaware.

  
 8.8 Relationship to Other Benefits. No payment under
the Plan shall be taken into account in determining any benefits under any other pension, retirement, profit-sharing or group insurance plan of the Company or any Subsidiary. 
  
 8.9 Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries. 

 
 8.10 Titles and Headings. The titles and headings of the sections
in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles and headings, shall control. 
  

IN WITNESS WHEREOF, the Company has caused this Plan to be adopted effective as of December 3, 1996. 
  

	
	EURONET SERVICES INC.
	
	

	 Michael J. Brown, President, C.E.O. and
 Chairman of the
Board

  

 8EXHIBIT 10.8

 Exhibit 10.8 
  
 EURONET WORLDWIDE, INC. 
  
 STOCK OPTION PLAN 
  
 (As amended through June 24, 2003) 
  
 1. Purpose 
  
 This Stock Option Plan (the “Plan”) for Euronet Worldwide, Inc. (the “Company”) is intended to provide incentive (i) to officers and
other key employees of the Company and (ii) to certain non-employee Directors and independent contractors providing services to the Company by providing those persons with opportunities to purchase shares of the Company’s Common Stock under (a)
incentive stock options (“Incentive Stock Options”) as such term is defined under Section 422 of the Internal Revenue Code of 1986, as amended and (b) other stock options (“Non-Qualified Options”). 
  
 2. Definitions 
  
 As used in this Plan, the following words and phrases shall have the
meanings indicated: 
  
 (a) “Board”
shall mean the Board of Directors of the Company. 
  
 (b) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (c) “Committee” shall mean the Option Committee of the Board. 
  
 (d) “Common Stock” shall mean the Common Stock, $0.02 par value, of the Company. 
  
 (e) “Company” shall mean Euronet Worldwide, Inc.,
a Delaware corporation. 
  
 (f) “Fair Market
Value” per share as of a particular date shall mean (i) the closing sales price per share of Common Stock on the principal national securities exchange, if any, on which the shares of Common Stock shall then be listed for the last preceding
date on which there was a sale of such Common Stock on such exchange, or (ii) if the shares of Common Stock are not then listed on a national securities exchange, the last sales price per share of Common Stock entered on a national inter-dealer
quotation system for the last preceding date on which there was a sale of such Common Stock on such national inter-dealer quotation system, or (iii) if no closing or last sales price per share of Common Stock is entered on a national inter-dealer
quotation system, the average of the closing bid and asked prices for the shares of Common Stock in the over-the-counter market for the last preceding date on which there was a quotation for such Common Stock in such market, or (iv) if no price can
be determined under the preceding alternatives, then the price per share as most recently determined by the Board, which shall make such determinations of value at least once annually. 

 (g) “Good Reason” shall mean any of the following events, which has not been
either consented to in advance by the Participant in writing or cured by the Company within a reasonable period of time not to exceed 30 days after the Participant provides written notice thereof: (i) the requirement that the Participant’s
principal service for the Company be performed more than 30 miles from the Participant’s primary office as of an Accelerating Event (as defined in Section 12 hereof), (ii) other than as part of an across-the-board reduction affecting all
similarly-situated employees, a material reduction in the Participant’s base compensation in effect immediately before the Accelerating Event; (iii) other than as part of an across-the-board reduction affecting all similarly-situated employees,
the failure by the Company to continue to provide the Participant with the same level of overall compensation and benefits provided immediately before the Accelerating Event, or the taking of any action by the Company which would directly or
indirectly reduce any of such benefits or deprive the Participant of any material fringe benefit; (iv) the assignment to the Participant of duties and responsibilities materially different from those associated with his position immediately before
the Accelerating Event; or (v) a material diminution or reduction, on or after an Accelerating Event, in the Participant’s responsibilities or authority, including reporting responsibilities in connection with the Participant’s service
with the Company. 
  
 (h) “Group of
Persons” — a “group” as such term is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder (the “Exchange Act”). 
  
 (i) “Incentive Stock Option” means one or more
Options to purchase Common Stock which, at the time such Options are granted under this Plan or any other such plan of the Company, qualify as incentive stock options under Section 422 of the Code. 
  
 (j) “Non-Qualified Option” shall mean any Option
that is not an Incentive Stock Option. 
  
 (k)
“Option Price” shall mean the purchase price of shares of Common Stock covered by an Option. 
  
 (l) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company
if, at the time of granting an Option, each of the 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.

  
 (m) “Plan” shall mean this Stock
Option Plan. 
  
 (n) “Option” shall
mean any option issued pursuant to this Plan. 

 (o) “Optionee” shall mean any person to whom an Option is granted under this
Plan. 
  
 (p) “Subsidiary” shall mean
any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if, at the time of granting an Option, 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 chain. 
  
 (q) “Ten Percent Shareholder” shall mean an Optionee who, at the time an Option is granted, owns directly or indirectly (within
the meaning of section 425(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, its Parent or a Subsidiary. 
  
 3. General Administration. 
  
 (a) The Plan shall be administered by the Committee.

  
 (b) The Committee shall have the authority in
its discretion, subject to and not inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the
administration of the Plan, including, without limitation, the authority to grant Options; to determine the Option Price; to determine the persons to whom, and the time or times at which, Options shall be granted; to determine the number of shares
to be covered by each Option; to interpret the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of the Option Agreements (which need not be identical) entered into in connection
with Options granted under the Plan; and to make all other determinations deemed necessary or advisable for the administration of the Plan. 
  
 (c) No member of the Committee shall be liable for any action taken or determination made in good faith with respect to the Plan or any
Option granted hereunder. 
  
 4. Granting of Options

  
 Options may be granted under the Plan at
any time prior to February 1, 2008. 
  
 5. Eligibility

  
 (a) Options may be granted to any
director, officer, key employee or outside consultant of the Company. In determining from time to time the officers and employees to whom Options shall be granted and the number of shares to be covered by each Option, the Committee shall take into
account the duties of the respective officers and employees, their present and potential contributions to the success of the Company and such other factors as the Committee shall deem relevant in connection with accomplishing the purposes of the
Plan. 

 (b) At the time of the grant of each Option under the Plan, the Committee shall determine
whether or not such Option is to be designated an Incentive Stock Option. Incentive Stock Options shall not be granted to a director or a consultant who is not an employee of the Company. The length of the exercise period of Incentive Stock Options
shall be governed by Section 7(e)(2) of the Plan; the exercise period of all other Options will be governed by Section 7(e)(3). 
  
 (c) An Option designated as an Incentive Stock Option can, prior to its exercise, be changed to a Non-Qualified Option if the Optionee
consents to amend his Option Agreement to provide that the exercise period of such Option will be governed by Section 7(e)(2) of the Plan. 
  
 6. Stock 
  
 The stock subject to the Options shall be shares of the Common Stock. Such shares may, in whole or in part, be authorized but unissued
shares contributed directly by the Company or shares which shall have been or which may be acquired by the Company. The aggregate number of shares of Common Stock as to which Options may be granted from time to time under the Plan shall be 2,000,000
shares. The limitation established by the preceding sentence shall be subject to adjustment as provided in Section 7(j) hereof. If any outstanding Option under the Plan for any reason expires or is terminated without having been exercised in full,
the shares of Common Stock allocable to the unexercised portion of such Option shall (unless the Plan shall have been terminated) become available for subsequent grants of Options under the Plan in the following year. 
  
 7. Terms and Conditions of Options 
  
 Each Option granted pursuant to the Plan shall be evidenced
by Option Agreements in such forms as the Committee may from time to time approve. Options shall comply with and be subject to the following terms and conditions: 
  
 (a) Option Price. Each Option shall state the Option Price, which in the case of Incentive Stock
Options shall be not less than one hundred percent (100%) of the Fair Market Value of the shares of Common Stock on the date of grant of the Option; provided, however, that in the case of an Incentive Stock Option granted to a Ten Percent
Shareholder, the Option Price shall not be less than one hundred ten percent (110%) of such fair market value. The Option Price per share for Non-Qualified Options shall also not be less than the Fair Market Value value of a share of Common Stock on
the effective date of grant of the Option. The Option Price shall be subject to adjustment as provided in Section 7(j) hereof. The date on which the Committee adopts a resolution expressly granting an Option shall generally be considered the day on
which such Option is granted. However, the Committee may, in its sole discretion, grant a series of sequential Options to an Optionee pursuant to a single resolution adopted by the Committee. Such a series of sequential Options will be treated as
granted as of the specific future dates designated by the Committee and such Options will have an Option Price determined in each case by reference to the Fair Market Value of Common Stock as of the respective future dates as of which the Options
are 

 deemed granted. For example, as of May 15, 1998, the Committee could, in its sole discretion, grant a
series of Options to an Optionee equal to 1,000 shares of Common Stock which could be deemed by the Committee to be granted at the rate of 250 shares as of June 1, 1998 and at the the rate of 250 shares as of the first day of each of the next three
calendar months thereafter for an Option Price in each case equivalent to the Fair Market Value of 250 shares of Common Stock as of each of the deemed grant days. 
  
 (b) Restrictions. Any Common Stock issued under the Plan may contain restrictions including, but not
limited to, limitations on transferability, as the Committee may determine. 
  
 (c) Value of Shares. Options may be granted to any eligible person for shares of Common Stock of any value, provided that the aggregate Fair Market Value (determined at the time the Option is granted) of the
stock with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all the plans of the Company, its Parent and its Subsidiaries) shall not exceed $100,000. 
  
 (d) Medium and Time of Payment. The Option Price
shall be paid in full, at the time of exercise, in cash or, with the approval of the Committee, in shares of Common Stock having a Fair Market Value in the aggregate equal to such Option Price or in a combination of cash and such shares, provided
that any shares of Common Stock used to pay the Option Price must have been held by the Optionee for no less than six (6) months. 
  
 (e) Term and Exercise of Options. 
  
 (1) Unless the applicable Option Agreement otherwise provides, each Option granted to an independent contractor performing services for
the Company shall be vested immediately and each Option granted to an employee or Director shall become vested and first exercisable in the following installments: 
  

				
	 Anniversary Date of Grant

	  	Percentage Exercisable

	 
	 Less than One
	  	0	%
	 One
	  	20	%
	 Two
	  	40	%
	 Three
	  	60	%
	 Four
	  	80	%
	 Five
	  	100	%

  
 (2)
Incentive Stock Options shall be exercisable over the exercise period specified by the Committee in the Option Agreement, but in no event shall such period exceed ten (10) years from the date of the grant of each such Incentive Stock Option;
provided, however, that in the case of an Incentive Stock Option granted to a Ten Percent Shareholder, the exercise period shall not exceed five (5) years from 

 the date of grant of such Option. Non-Qualified Options shall be exercisable over a period not to exceed
ten (10) years. The exercise period of any Option shall be subject to earlier termination as provided in Section 7(g) and 7(h) hereof. An Option may be exercised, as to any or all full shares of Common Stock as to which the Option has become
exercisable, by giving written notice of such exercise to the Committee; provided that an Option may not be exercised at any one time as to less than 100 shares (or such number of shares as to which the Option is then exercisable if such number of
shares is less than 100). 
  
 (f) Dividend Equivalency

  
 Any Option may, in the discretion of the Committee, provide
for dividend equivalency rights under which the Optionee shall be entitled to additional payments, in the nature of compensation, equal to the amount of dividends which would have been paid, during the period such Option is held, on the number of
shares of Common Stock equal to the number of shares subject to such Option. 
  
 (g) Termination of Employment. Except as provided in this Section 7(g) and Section 7(h) hereof and except with respect to Options granted to an independent contractor performing services for the Company, an
Option may only be exercised by persons who are employees or of the Company or any Parent or Subsidiary of the Company (or a corporation or a Parent or Subsidiary of such corporation issuing or assuming the Option in a transaction to which Section
425(a) of the Code applies), who have remained continuously, a director or so employed since the date of grant of the Option. In the event all association of an Optionee with the Company (as an employee or director) shall terminate (other than by
reason of death), all Options or unexercised portions thereof granted to such Optionee which are then exercisable may, unless earlier terminated in accordance with their terms, be exercised within sixty (60) days after such termination; provided,
however, that if the association of the Optionee with the Company shall terminate for “cause” (as determined by the Committee), all Options theretofore granted to such Optionee shall, to the extent not theretofore exercised, terminate
forthwith, and provided further that the Committee may, on a case by case basis, permit extension of the period of time within which an Optionee may exercise Options beyond such 60 day period. A bona fide leave of absence shall not be considered a
termination or break in continuity of employment for any purpose of the Plan so long as the period of such leave does not exceed ninety (90) days or such longer period during which the Optionee’s right to reemployment is guaranteed by statute
or by contract. Where the period of such leave exceeds ninety (90) days and the Optionee’s right to reemployment is not guaranteed, the Optionee’s employment will be deemed to have terminated on the ninety-first (1st) day of such leave.
Nothing in the Plan or in any Option granted pursuant hereto shall confer upon an employee any 

 right to continue in the employ of the Company or any of its divisions or Parent or Subsidiaries or
interfere in any way with the right of the Company or any such divisions or Parent or Subsidiary to terminate or change the terms of such employment at any time. 
  
 (h) Death of Optionee. If an Optionee who was an outside consultant when his Option was granted shall die, all
Options heretofore granted to such Optionee may be exercised at any time during the remaining period of their terms by the personal representative of the Optionee’s estate or by a person who acquired the right to exercise such Options by
bequest or inheritance or otherwise by reason of death of the Optionee. If an Optionee shall die while a director of or employed by the Company or any Parent or Subsidiary of the Company, all Options theretofore granted to such Optionee may, unless
earlier terminated in accordance with their terms and to the extent already vested and exercisable, be exercised by the Optionee or by the Optionee’s beneficiary or personal representative of the Optionee’s estate or by a person who
acquired the right to exercise such Option by bequest or inheritance or otherwise by reason of death of the Optionee, at any time within one year after the date of death of the Optionee. 
  
 (i) Nontransferability of Options. Options granted under the Plan shall not be transferable other than by will or by
the laws of descent and distribution, and Options may be exercised, during the lifetime of the Optionee, only by the Optionee. Notwithstanding the preceding sentence, the Committee, in its sole discretion, may permit the assignment or transfer of a
Non-Qualified Option and the exercise thereof by a person other than an Optionee, on such terms and conditions as the Committee may determine. 
  
 (j) Effect of Certain Changes. 
  
 (1) If there is any change in the number of shares of Common Stock through the declaration of stock dividends, recapitalization resulting
in stock splits, or combinations or exchanges of such shares, then the number of shares of Common Stock available for Options, the number of such shares covered by outstanding Options, and the price per share of such Options shall be proportionately
adjusted to reflect any increase or decrease in the number of issued shares of Common Stock; provided, however, that any fractional shares resulting from such adjustment shall be eliminated. 
  
 (2) In the event of a proposed dissolution or liquidation
of the Company, or in the event of any corporate separation or division, including but not limited to, a split-up, a split-off or spin-off, the Committee may provide that the holder of each Option then exercisable shall have the right to exercise
such Option (at its then Option Price) solely for the kind and amount of shares of stock and other securities, property, cash or any combination thereof receivable 

 upon such dissolutions or liquidation, or corporate separation or division; or the Committee may
provide, in the alternative, that each Option granted under the Plan shall terminate as of a date to be fixed by the Committee, provided, however, that no less than thirty (30) days’ written notice of the date so fixed shall be given to each
Optionee, who shall have the right, during the period of thirty (30) days preceding such termination, to exercise the Options as to all or any part of the shares of Common Stock covered thereby, including shares as to which such Options would not
otherwise be exercisable. 
  
 (3) [first
sentence deleted] If while unexercised or unvested Options remain outstanding under the Plan (i) the Company executes a definitive agreement to merge or consolidate with or into another corporation or to sell or otherwise dispose of substantially
all its assts, or (ii) more than 50% of the Company’s then outstanding voting stock is acquired by any person or Group of Persons (any such event being an “Accelerating Event”), then from and after any later date on which a
Participant’s service with the Company (including any successor) terminated involuntary or for Good Reason (any such date being referred to herein as the “Acceleration Date”), all Options granted to the Participants shall be
exercisable and vested in full, whether or not otherwise exercisable or vested. Following the Acceleration Date, (a) the Committee shall, in the case of a merger, consolidation or sale or disposition of assets, promptly make an appropriate
adjustment to the number and class of shares of Common Stock available for Options, and to the amount and kind of shares or other securities or property receivable upon exercise of any outstanding Options after the effective date of such
transaction, and the price thereof, and (b) the Committee may, in its discretion, permit the cancellation of outstanding Options in exchange for a cash payment in an amount per share subject to any such option determined by the Committee in its sole
discretion, but not less than the difference between the Option Price per share and the Fair Market Value per share of Common stock on the Acceleration Date. 
  

(4) Paragraphs (2) and (3) of this Section 7(i) shall not apply to a merger or consolidation in which the Company is the surviving
corporation and shares of Common Stock are not converted into or exchanged for stock, securities or any other corporation, cash or any other thing of value. Notwithstanding the preceding sentence, in case of any consolidation or merger of another
corporation into the Company in which the Company is the continuing corporation and in which there is a reclassification or change (including a change to the right to receive cash or other property) of the shares of Common Stock (other than a change
in par value, or from par value to no par value, or as a result of a subdivision or combination, but including any change in such shares into two or more classes or series of shares), the Committee may provide that the holder of each Option then
exercisable shall have the right to exercise such Option solely for the kind and amount of shares of stock and other securities (including 

 those of any new direct or indirect parent of the Company), property, cash or any combination thereof
receivable by the holder of the number of shares of Common Stock for which such Option might have been exercised upon such reclassification, change, consolidation or merger. 
  
 (5) In the event of a change in the Common Stock as presently constituted, which is limited to a change of
all of its authorized shares with par value into the same number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the Common Stock within the meaning of the Plan. 

 
 (6) To the extent that the foregoing adjustments relate
to stock or securities of the Company, such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive, provided that each Option granted pursuant to this Plan and designated an Incentive
Stock Option shall not be adjusted in a manner that causes the Option to fail to continue to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. 
  
 (7) Except as hereinbefore expressly provided in this Section 7(i), the Optionee shall have no rights by
reason of any subdivision or consolidation of shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation, merger, or
consolidation, and any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Option Price
of shares of Common Stock subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or any part of its business or assets. 
  
 (j) Rights as a Shareholder. An Optionee or a transferee of an Option shall have no rights as a shareholder with respect to any
shares covered by his Option until the date of the issuance of a stock certificate to him for such shares. No adjustments shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or
other rights for which the record date is prior to the date such stock certificate is issued, except as provided in Section 7(i) or Section 7(f) hereof. 
  
 (k) Other Provisions. The Option Agreements authorized under the Plan shall contain such other provisions, including, without
limitation, (i) the imposition of restrictions upon the exercise of an Option and (ii) the inclusion of any condition not inconsistent with an Option designated by the Committee as an 

 Incentive Stock Option qualifying as an Incentive Stock Option, as the Committee shall deem advisable,
including provisions with respect to compliance with federal and applicable state securities laws. In furtherance of the foregoing, at the time of any exercise of an Option, the Committee may, if it shall determine it necessary or desirable for any
reason, require the Optionee as a condition to the exercise thereof, to deliver to the Committee a written representation of the Optionee’s present intention to purchase the Common Stock for investment and not for distribution. If such
representation is required to be delivered, an appropriate legend may be placed upon each certificate delivered to the Optionee upon his exercise of part or all of an Option and a stop transfer order may be placed with the transfer agent. Each such
option shall also be subject to the requirement that, if at any time the Committee determines, in its discretion, that either (i) the listing, registration or qualification of Common Stock subject to an Option upon any securities exchange or under
any state, federal or foreign law, or (ii) the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the issue or purchase of Common Stock thereunder, the Option may not be
exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. An Optionee shall not have the power to require or
oblige the Company to register any Common Stock subject to an Option. 
  
 8.
Agreement by Optionee Regarding Withholding Taxes 
  
 (a) No
later than the date of exercise of any Option granted hereunder, the Optionee will pay to the Company or make arrangements satisfactory to the Board regarding payment of any federal, state or local taxes of any kind required by law to be withheld
upon the exercise of such Option, and 
  
 (b) The Company shall,
to the extent permitted or required by law, have the right to deduct from any payment of any kind otherwise due to the Optionee any federal, state or local taxes of any kind required by law to be withheld upon the exercise of such Option.

  
 9. Term of Plan 
  
 Options may be granted pursuant to the Plan from time to time within a
period of ten (10) years from the date on which the Plan is adopted by the Board, provided that no Options granted under the Plan shall become exercisable unless and until the Plan shall have been approved by the Company’s shareholders.

  
 10. Savings Clause 
  
 Notwithstanding any other provision hereof, this Plan is intended to qualify
as a plan pursuant to which Incentive Stock Options may be issued under Section 422 of the Code. If this Plan or any provision of this Plan shall be held to be invalid or to fail to meet the requirements of Section 422 of the Code or the regulations
promulgated thereunder, such invalidity or failure shall not affect the remaining parts of this Plan, but rather it shall be construed and enforced as if the Plan or the affected provision thereof, as the case may be, complied in all respects with
the requirements of Section 422 of the Code. 

 11. Amendment and Termination of the Plan 
  
 The Board may at any time and from time to time suspend, terminate, modify or amend the Plan, provided that any amendment
that would materially increase the aggregate number of shares of Common Stock as to which Options may be granted under the Plan, materially increase the benefits accruing to participants under the Plan, or materially modify the requirements as to
eligibility for participation in the Plan shall be subject to the approval of the holders of a majority of the Common Stock voting at a meeting at which a quorum is present, except that any such increase or modification that may result from
adjustments authorized by Section 7(i) hereof shall not require such approval. Except as provided in Section 7 hereof, no suspension, termination, modification or amendment of the Plan may adversely affect any Option previously granted unless the
written consent of the Optionee is obtained. 
  
 12. Nonexclusivity of the Plan

  
 Neither the adoption of the Plan by the Board nor the
submission of the Plan to stockholders of the Company for approval shall be construed as creating any limitations on the power or authority of the Board to adopt such other or additional incentive or other compensation arrangements of whatever
nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other plan, practice or arrangement for the payment of compensation or fringe benefits to employees generally, or to any class or group of employees,
which the Company or any Subsidiary now has lawfully put into effect, including, without limitation, any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term incentive plans.

  
 13. Nature of Payments 
  
 (a) All Options granted shall be in consideration of services performed for
the Company by the Optionee. 
  
 (b) All Options granted shall
constitute a special incentive benefit to the Optionee and shall not be taken into account in computing the amount of salary or compensation of the Optionee for the purpose of determining any benefits under any pension, retirement, profit-sharing,
bonus, life insurance or other benefit plan of the Company or under any agreement between the Company and the Optionee, unless such plan or agreement specifically otherwise provides. 
  
 14. Nonuniform Determinations 
  
 The Committee’s determinations under this Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Options
(whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make nonuniform and selective determinations which may, inter alia, reflect
the specific terms of individual employment agreements, and to enter into nonuniform and selective Option Agreements, as to the persons to receive Options and the terms and conditions of Options. 

 15. Section Headings 
  
 The section headings contained herein are for the purpose of convenience only and are not intended to define or limit the contents of said sections. 
  

			
	 Adopted by the Board of Directors on
                    , 1998.

		
	 Attest:
	  	 
		
	
	  	

	 	  	Secretary
	 Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]