Document:

CENTERSTAGING
      CORP. 

     

    2005
      INCENTIVE STOCK OPTION PLAN 

     

    

     

    
      	1.    	
              Purposes
                of the Plan

            

    

     

    The
      purposes of the 2005 Incentive Stock Option Plan (this “Plan”)
      of
      CenterStaging Corp., a Delaware corporation, are to:

     

    1.1    
      Encourage
      selected employees to improve operations and increase profits of the
      Company;

     

    1.2    
      Encourage
      selected employees to accept or continue employment with the Company or its
      Affiliates (as defined below); and

     

    1.3    
      Increase
      the interest of selected employees in the Company’s welfare through
      participation in the growth in value of the Common Stock.

     

    
      	2.    	
              Definitions

            

    

     

    For
      purposes of this Plan, the following capitalized terms shall have the meanings
      set forth below:

     

    2.1    
      “Administrator”
shall
      mean the Administrator of the Plan, which shall be the Board or a committee
      to
      which the Board delegates administration, as described in Section 5
      of this
      Plan.

     

    2.2    
      “Affiliate”
shall
      mean with respect to the Company a parent or subsidiary corporation as defined
      in the applicable provisions (currently Sections 424(e) and (f), respectively)
      of the IRC.

     

    2.3    
      “Board”
shall
      mean the Board of Directors of the Company.

     

    2.4    
      “Common
      Stock”
shall
      mean the common stock of the Company.

     

    2.5    
      “Company”
shall
      mean CenterStaging Corp., a Delaware corporation.

     

    2.6    
      “Corporate
      Transaction”
shall
      mean (a) a liquidation or dissolution of the Company; (b) a merger or
      consolidation of the Company with or into another corporation (other than a
      merger with a wholly-owned subsidiary); or (c) a sale of all or
      substantially all of the assets of the Company in a single transaction or a
      series of related transactions.

     

    2.7   
      “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.8    
      “For
      Cause”
shall
      mean, in connection with termination of an optionee’s employment by the Company
      or any Affiliates of the Company, termination due to such optionee’s (a) willful
      breach or habitual neglect or continued incapacity to perform such optionee’s
      required duties, (b) commission of acts of dishonesty, fraud, misrepresentation
      or other acts of moral turpitude in connection with optionee’s services to the
      Company or its Affiliates or which in the determination of the Administrator
      would prevent the effective performance of such optionee’s duties, or (c)
      termination For Cause under any employment agreement between the Company and
      such optionee (as For Cause is defined therein).

     

    2.9     
      “IRC”
shall
      mean the Internal Revenue Code of 1986, as amended from time to
      time.

     

    2.10    
      “Option”
shall
      mean an option granted under the Plan.

     

    2.11    
      “Option
      Grant Date”
shall
      have the meaning set forth in Section 6.2.1.

     

    2.12    
      “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    2.13    
      “10%
      Stockholder”
shall
      mean a person who owns, directly or by attribution under the IRC (currently
      Section 424(d)), stock possessing more than 10% of the total combined voting
      power of all classes of stock of the Company. 

     

    2.14    
      “Termination
      Date”
shall
      mean, in connection with the termination of an optionee’s employment with the
      Company or any Affiliate, the date 90 days after the date of termination,
      except: (a) the date of such termination if such termination is by the Company
      For Cause; or (b) one year following the date of such termination if such
      termination is as a result of the death or disability of the optionee. An
      optionee’s employment shall not be deemed to terminate by reason of a transfer
      to or from the Company or an Affiliate or among such entities, or sick leave,
      military leave or other leave of absence approved by the Administrator, if
      the
      period of any such leave does not exceed 90 days or, if longer, if such
      optionee’s right to reemployment by the Company or any Affiliate is guaranteed
      either contractually or by statute.

     

    
      	3.    	
              Types
                of Awards; Eligible
                Persons

            

    

     

    3.1    
      Each
      Option must be intended to meet the requirements of Section 422 of the IRC
      and
      the regulations thereunder as an “incentive stock option.” Options may be
      granted under the Plan only to employees of the Company or of any Affiliate
      of
      the Company. Options may be offered to persons who are not employees in
      connection with offers of employment and conditioned upon their becoming
      employees. The term “employee” includes a director who is an employee of the
      Company. 

     

    3.2    
      Except
      as
      otherwise expressly set forth in this Plan, no right or benefit under this
      Plan
      or under any Option shall be subject in any manner to alienation, hypothecation
      or charge, and any such attempted action shall be void. No right or benefit
      under this Plan or under any Option shall in any manner be liable for or subject
      to debts, contracts, liabilities or torts of any optionee or any other person
      except as otherwise may be expressly required by applicable law.

     

    
      
        
        

      

      
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      	4.    	
              Stock
                Subject to This Plan; Maximum Number of
                Shares

            

    

     

    The
      Company may issue up to 2,000,000 shares of Common Stock upon exercise of
      Options. The maximum number of shares under the Plan shall be appropriately
      adjusted for any stock split, reverse stock split, stock dividend,
      recapitalization, combination, reclassification or other distribution of the
      Company’s securities without consideration. The shares subject to an Option that
      expires, terminates or is cancelled unexercised shall become available for
      additional Option grants under this Plan. Where the exercise price of an Option
      is paid by means of the optionee’s surrender of previously owned shares of
      Common Stock or the Company’s withholding of shares otherwise issuable upon
      exercise of the Option as permitted herein, only the net number of shares issued
      and which remain outstanding in connection with such exercise shall be deemed
      “issued” and no longer available for issuance under this Plan. No person shall
      be granted Options during any twelve-month period covering more than 500,000
      shares.

     

    
      	5.    	
              Administration

            

    

     

    5.1    
      This
      Plan
      shall be administered by the Board or by a committee to which administration
      of
      this Plan, or of part of this Plan, is delegated by the Board (in either case,
      the “Administrator”).
      The
      Board shall appoint and remove members of the committee in its discretion in
      accordance with applicable laws. If necessary, in order to comply with Rule
      16b-3 under the Exchange Act or Section 162(m) of the IRC, or any successor
      statute or regulation, the committee shall, in the Board’s discretion, be
      comprised solely of “non-employee directors” within the meaning of Rule 16b-3 or
“outside directors” within the meaning of Section 162(m) of the IRC. The
      foregoing notwithstanding, the Administrator may delegate non-discretionary
      administrative duties to such employees of the Company as it deems proper and
      the Board, in its absolute discretion, may at any time and from time to time
      exercise any and all rights and duties of the Administrator under this
      Plan.

     

    5.2    
      Subject
      to the other provisions of this Plan, the Administrator shall have the
      authority, in its discretion: (a) to grant Options; (b) to determine the fair
      market value of the Common Stock subject to Options; (c) to determine the
      exercise price of Options granted, but which shall be no less than the fair
      market value of the Common Stock at the date of grant; (d) to determine the
      persons to whom, and the time or times at which, Options shall be granted,
      and
      the number of shares subject to each Option; (e) to construe and interpret
      the
      terms and provisions of this Plan and of any option agreement and all Options
      granted under this Plan; (f) to prescribe, amend, and rescind rules and
      regulations relating to this Plan; (g) to determine the terms and provisions
      of
      each Option granted (which need not be identical), including but not limited
      to,
      the time or times at which Options shall be exercisable; (h) with the consent
      of
      the optionee, to modify or amend any Option provided that no such consent is
      required to reduce the exercise price, extend the maturity or accelerate the
      vesting of an Option; (i) to authorize any person to execute on behalf of the
      Company any instrument evidencing the grant of an Option; (j) to determine
      the
      duration and purposes of leaves of absence which may be granted to optionees
      without constituting a termination of their employment for the purposes of
      the
      Plan; (k) to determine the appropriate adjustments to the maximum number and
      type of shares issuable under the Plan if the stock of the Company is changed
      by
      reason of a stock split, reverse stock split, stock dividend, recapitalization,
      combination, reclassification or other distribution of the Company’s securities
      without consideration; and (l) to make all other determinations deemed necessary
      or advisable for the administration of this Plan or any option agreement or
      Option.

     

    
      
        
        

      

      
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    5.3    
      All
      questions of interpretation, implementation and application of this Plan or
      any
      option agreement or Option shall be determined by the Administrator, which
      determination shall be final and binding on all persons.

     

    
      	6.    	
              Option
                Agreements; Terms and Conditions of
                Options

            

    

     

    6.1     
      Each
      Option shall be evidenced by a written stock option agreement, in form
      satisfactory to the Administrator, executed by the Company and the person to
      whom such Option is granted. In the event of a conflict between the terms or
      conditions of an option agreement and the terms and conditions of this Plan,
      the
      terms and conditions of this Plan shall govern.

     

    6.2    
      Each
      Option shall be subject to the following terms and conditions: 

     

          6.2.1    
      Option
      Grant Date.
      The
      date of grant of an Option (“Option
      Grant Date”)
      shall
      be the date specified by the Administrator in its approval of the Option or,
      if
      no such date is specified, the date of such approval. If an Option is granted
      in
      anticipation of employment as provided in Section 3.1,
      the
      Option shall be deemed granted, without further approval, on the date the
      optionee assumes the employment relationship forming the basis for such grant,
      and, in addition, satisfies all requirements of this Plan for Options granted
      on
      that date.

     

            6.2.2    
      Exercise
      Price.
      The
      exercise price of an Option shall not be less than the fair market value of
      the
      stock subject to the Option on the Option Grant Date. The exercise price of
      an
      Option granted to any 10% Stockholder shall in no event be less than 110% of
      the
      fair market value of the stock covered by the Option on the Option Grant Date.
      

     

            6.2.3    
      Vesting.
      The
      Administrator may establish a vesting schedule in connection with any Option
      based on time and/or performance criteria. The Administrator shall issue not
      grant any Option if such Option and all other incentive stock options of the
      optionee under Section 422 of the Code would become exercisable for the first
      time in any calendar year as to Common Stock with a value in excess of $100,000.
      For this purpose, the value of the Common Stock shall be its fair market value
      as of the grant date of the option to which it is subject. 

     

            6.2.4   
      Payment
      of Exercise Price.
      Except
      as provided below, payment in full, in cash, shall be made for all stock
      purchased at the time written notice of exercise of an Option is given to the
      Company. Subject to the terms of the stock option agreement granting the Option,
      the Administrator, in the exercise of its absolute discretion after considering
      any tax, accounting and financial consequences, may authorize any one or more
      of
      the following additional methods of payment:

     

                (a)    
      Acceptance
      of the optionee’s full recourse promissory note for all or part of the exercise
      price, payable on such terms and bearing such interest rate as determined by
      the
      Administrator (but in no event less than the minimum interest rate specified
      under the IRC at which no additional interest or original issue discount would
      be imputed), which promissory note may be either secured or unsecured in such
      manner as the Administrator shall approve (including, without limitation, by
      a
      security interest in the shares of the Company);

     

    
      
        
        

      

      
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                (b)    
      Delivery
      by the optionee of shares of Common Stock already owned by the optionee for
      all
      or part of the Option price, provided the fair market value (determined as
      set
      forth in Section 6.3)
      of such
      shares of Common Stock is equal on the date of exercise to the Option price,
      or
      such portion thereof as the optionee is authorized to pay by delivery of such
      stock;

     

                (c)    
      Through
      the surrender of shares of Common Stock then issuable upon exercise of the
      Option, provided the fair market value (determined as set forth in Section
      6.3)
      of such
      shares of Common Stock is equal on the date of exercise to the exercise price,
      or such portion thereof as the optionee is authorized to pay by surrender of
      such stock; and

     

                (d)    
      Subject
      to compliance with any applicable laws or regulations, by means of so-called
      cashless exercises.

     

            6.2.5    
      Option
      Term.
      No
      Option shall be exercisable more than ten years after the Option Grant Date
      (five years if the optionee is a 10% Stockholder), or such lesser period of
      time
      as is set forth in the stock option agreement (the end of the maximum exercise
      period stated in the stock option agreement is referred to in this Plan as
      the
“Expiration
      Date”).

     

            6.2.6    
      Changes
      in Capital Structure.
      Unless
      otherwise provided in the stock option agreement evidencing the Option, if
      the
      stock of the Company is changed by reason of a stock split, reverse stock split,
      stock dividend, recapitalization, combination, reclassification or other
      distribution of the Company’s securities without consideration, appropriate
      adjustments shall be made by the Administrator, in its sole discretion, in
      (a)
      the number and class of shares of stock subject to each Option outstanding
      under
      this Plan, and (b) the exercise price of each outstanding Option; provided,
      however,
      that
      the Company shall not be required to issue fractional shares as a result of
      any
      such adjustments.

     

            6.2.7  Corporate
      Transactions.
      Unless
      otherwise provided in the stock option agreement evidencing the Option, in
      the
      event of a Corporate Transaction, each Option shall terminate immediately prior
      thereto unless the Administrator, in its sole discretion, either provides that
      the Option shall not terminate or provides that the Option shall be assumed
      by
      an applicable successor corporation or entity or any Affiliate of the successor
      corporation or entity. The Administrator shall, in its sole discretion, have
      the
      power to permit exercise of any Option prior to its termination, even if such
      Option would not otherwise have been exercisable.

     

            6.2.8  Non-Transferability
      of Options.
      No
      Option shall be assignable or otherwise transferable by the optionee except
      by
      will or by the laws of descent and distribution. During the life of the
      optionee, an Option shall be exercisable only by the optionee. 

     

            6.2.9  Termination
      of Employment.
      Except
      as otherwise provided in the stock option agreement, if for any reason an
      optionee ceases to be employed by the Company and its Affiliates, the Option
      shall terminate and expire upon the earliest to occur of: (a) the Termination
      Date; (b) the Expiration Date; and (c) if applicable, immediately prior to
      a
      Corporate Transaction as contemplated by Section 6.2.7
      of this
      Plan. 

     

    
      
        
        

      

      
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            6.2.10  Disqualifying
      Dispositions.
      If
      stock acquired by exercise of an Option is disposed of in a “disqualifying
      disposition” within the meaning of Section 422 of the IRC (a disposition within
      two years from the date of grant of the Option or within one year after the
      exercise of the Option), the holder of the stock immediately before the
      disposition shall promptly notify the Company in writing of the date and terms
      of the disposition and shall provide such other information regarding the Option
      as the Company may reasonably require.

     

            6.2.11  Other
      Provisions.
      Each
      Option may contain such other terms, provisions and conditions not inconsistent
      with this Plan as may be determined by the Administrator, and each Option
      granted under this Plan shall include such provisions and conditions as are
      necessary to qualify the Option as an “incentive stock option” within the
      meaning of Section 422 of the IRC.

     

         6.3  Determination
      of Fair Market Value.
      For
      purposes of this Plan, the fair market value of Common Stock or other securities
      of the Company shall be determined as follows. If the stock of the Company
      is
      listed on a securities exchange or is regularly quoted by a recognized
      securities dealer, and selling prices are reported, its fair market value shall
      be the closing price of such stock on the date the value is to be determined
      or
      the last preceding business day on which sale prices were reported.
      Notwithstanding the foregoing, if the Administrator determines that the stock
      of
      the Company is not readily tradable on such market and such market does not
      reflect its true market value, the Administrator shall value the stock by taking
      into account all the facts and circumstances as of the valuation date. The
      factors that must be taken into account include the value of tangible and
      intangible assets of the Company, the present value of future cash flows of
      the Company, the market value of stock or equity interests of similar
      corporations and other entities engaged in trades or businesses substantially
      similar to those engaged in by the Company, the value of which can be
      determined by objective means (such as, trading prices on an established market
      or an amount paid at arm’s length in a private transaction) and any other
      relevant factors. Such valuation method shall be utilized consistently to
      determine the value of Company stock or assets for all purposes.

     

         6.4  Withholding
      and Employment Taxes.
      At the
      time of exercise and as a condition thereto, or at such other time as the amount
      of such obligation becomes determinable, the optionee shall remit to the Company
      in cash all applicable federal and state withholding and employment taxes.
      Such
      obligation to remit may be satisfied, if authorized by the Administrator in
      its
      sole discretion, after considering any tax, accounting and financial
      consequences, by the optionee’s (a) delivery of a promissory note in the
      required amount on such terms as the Administrator deems appropriate, (b)
      tendering to the Company previously owned shares of Common Stock or other
      securities of the Company with a fair market value equal to the required amount,
      or (c) agreeing to have shares of Common Stock (with a fair market value equal
      to the required amount) which are acquired upon exercise of the Option withheld
      by the Company.

     

    
      	7.    	
              Manner
                of Exercise

            

    

     

    7.1  An
      optionee wishing to exercise an Option shall give written notice to the Company
      at its principal executive office, to the attention of the officer of the
      Company designated by the Administrator, accompanied by payment of the exercise
      price and withholding taxes as provided in Section 6.4.
      An
      Option will be considered exercised on the last to occur of the following dates:
      (a) the date the Company receives written notice of an exercise; (b) the date
      specified in the written notice of exercise (which date may not be more than
      30
      days after the date the Company receives the written notice of exercise); and
      (c) the date the Company receives payment of the exercise price.

     

    
      
        
        

      

      
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    7.2  Promptly
      after receipt of written notice of exercise of an Option and the payments called
      for by Section 6.2.4,
      the
      Company shall, without stock issue or transfer taxes to the optionee or other
      person entitled to exercise the Option, deliver to the optionee or such other
      person a certificate or certificates for the requisite number of shares of
      Common Stock. An optionee or permitted transferee of the Option shall not have
      any privileges as a stockholder with respect to any shares of stock covered
      by
      the Option until the date of issuance (as evidenced by the appropriate entry
      on
      the books of the Company or a duly authorized transfer agent) of such
      shares.

     

    
      	8.    	
              Employment
                Relationship

            

    

     

    Nothing
      in this Plan or any Option granted hereunder shall interfere with or limit
      in
      any way the right of the Company or any of its Affiliates to terminate any
      optionee’s employment at any time, nor shall confer upon any optionee any right
      to continue in the employ of the Company or any of its Affiliates.

     

    
      	9.    	
              Conditions
                Upon Issuance of Shares

            

    

     

    The
      Company shall have no obligation to issue shares of Common Stock upon exercise
      of an Option unless such issuance has been registered under the Securities
      Act
      and qualified or registered under applicable state securities laws, or such
      issuance is exempt from registration or qualification under the Securities
      Act
      and applicable state securities laws. The Company shall have no obligation
      to
      register or qualify the issuance of the shares under the Securities Act or
      applicable state securities laws. 

     

    
      	10.   	
              Non-Exclusivity
                of This Plan

            

    

     

    The
      adoption of this Plan shall not be construed as creating any limitations on
      the
      power of the Company to adopt such other incentive arrangements as it may deem
      desirable, including, without limitation, the granting of stock options other
      than under this Plan.

     

    
      	11.   	
              Market
                Stand-off

            

    

     

    Each
      optionee, if so requested by the Company or any representative of the
      underwriters in connection with any registration of the offering of any
      securities of the Company under the Securities Act, shall not sell or otherwise
      transfer any shares of Common Stock acquired upon exercise of Options during
      the
      180-day period following the effective date of a registration statement of
      the
      Company filed under the Securities Act; provided,
      however,
      that
      such restriction shall apply only to the first registration statement of the
      Company to become effective under the Securities Act after the date of adoption
      of this Plan which includes securities to be sold on behalf of the Company
      to
      the public in an underwritten public offering under the Securities Act. The
      Company may impose stop-transfer instructions with respect to securities subject
      to the foregoing restriction until the end of such 180-day period.

     

    
      
        
        

      

      
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      	12.     	
              Amendments
                to Plan

            

    

     

    The
      Board
      may at any time amend, alter, suspend or discontinue this Plan. Without the
      consent of an optionee, no amendment, alteration, suspension or discontinuance
      may adversely affect such optionee’s outstanding Option(s) except to conform
      this Plan and Options granted under this Plan to the requirements of federal
      or
      other tax laws relating to incentive stock options. No amendment, alteration,
      suspension or discontinuance shall require stockholder approval unless
      stockholder approval is required to preserve incentive stock option treatment
      for federal income tax purposes or under applicable law; provided that the
      Administrator may in its discretion seek stockholder approval of any amendment,
      alteration, suspension or discontinuance. 

     

    
      	13.     	
              Effective
                Date of Plan; Termination

            

    

     

    13.1  Effective
      Date.
      This
      Plan shall become effective upon adoption by the Board; provided,
      however,
      that no
      Option shall be exercisable unless and until written consent of the stockholders
      of the Company, or approval of stockholders of the Company voting at a validly
      called stockholders’ meeting, is obtained within 12 months after adoption by the
      Board. If any Options are so granted and stockholder approval shall not have
      been obtained within 12 months of the date of adoption of this Plan by the
      Board, such Options shall terminate retroactively as of the date they were
      granted.

     

    13.2  Termination.
      This
      Plan shall terminate on September 30, 2015. Termination of this Plan shall
      not
      affect any outstanding Options and such outstanding Options shall continue
      to be
      subject to the terms of this Plan.

     

    
      
        
        

      

      
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      CENTERSTAGING
        CORP. 

       

      OPTION
        CERTIFICATE

      (Incentive
        Stock Option)

       

      

      THIS
        IS
        TO CERTIFY that CenterStaging Corp., a Delaware corporation (the “Company”),
        has
        granted to the employee named below (“Optionee”)
        an
        incentive stock option (the “Option”)
        to
        purchase shares of the Company’s Common Stock (the “Shares”)
        under
        its 2005 Incentive Stock Option Plan (the “Plan”)
        and
        upon the terms and conditions set forth below and in the attached Stock Option
        Agreement:

       

      
        	
                Name
                  of Optionee:

              	                                                      
                
	
                Address
                  of Optionee:

              	
                                                                      
                  

                                                                      
                  

              
	
                Number
                  of Shares:

              	                                                       
	
                Option
                  Exercise Price:

              	
                $                                                per
                  share

              
	
                Date
                  of Grant:

              	                                                      
                
	
                Option
                  Expiration Date:

              	                                                      
                

      

      

      Exercise
        Schedule:
        The
        Option shall become exercisable (“vest”) as follows:

       

      
        	
                Date

              	 	
                Number
                  of Shares

              
	
                ______________________

              	 	
                ___________________________________

              

      

      
 

      In
        Witness Whereof, the Company has granted to Optionee the Option as of the
        Date
        of Grant set forth above.

       

      

      
        	
                OPTIONEE

                 

                 

                                                                                
                  

              	
                CENTERSTAGING
                  CORP. 

                 

                 

                By                                                         
                                

                Its                                                                        
                  

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      STOCK
        OPTION AGREEMENT

      (Incentive
        Stock Option)

       

      

      This
        STOCK OPTION AGREEMENT (this “Agreement”)
        is
        made and entered into as of the Date of Grant set forth in the Option
        Certificate to which this Agreement is attached (the “Certificate”)
        by and
        between CenterStaging Corp., a Delaware corporation (the “Company”),
        and
        the optionee (the “Optionee”)
        named
        in the Certificate. 

       

      Pursuant
        to the 2005 Incentive Stock Option Plan of the Company (the “Plan”),
        the
        Administrator has determined that Optionee is to be granted, on the terms
        and
        conditions set forth in this Agreement and in the Plan, an option to purchase
        shares of the Company’s Common Stock (the “Common
        Stock”).
        It is
        intended that the option qualify as an “incentive stock option” within the
        meaning of Section 422 of the Internal Revenue Code of 1986, as amended from
        time to time (the “Code”).
        Capitalized terms not otherwise defined in this Agreement shall have the
        meanings ascribed to them in the Plan.

       

      The
        Company and Optionee agree as follows:

       

      1.  Grant
        of Option.
        The
        Company hereby grants to Optionee, upon the terms and subject to the conditions
        set forth in this Agreement, an Option (the “Option”)
        to
        purchase all or any portion of that number of shares of Common Stock set
        forth
        in the Certificate (the “Option
        Shares”),
        at
        the exercise price set forth in the Certificate (the “Exercise
        Price”).

       

      2.  Vesting

       

              
2.1.  The
        Option shall “vest” and become exercisable in installments upon and after the
        dates set forth under the caption “Exercise
        Schedule”
in
        the
        Certificate. The installments shall be cumulative; i.e.,
        the
        Option may be exercised, as to any or all Shares covered by an installment,
        at
        any time or times after the installment first becomes exercisable and until
        expiration or termination of the Option.

       

              2.2.  No
        vesting shall occur after the Employment Termination Date (as defined in
        Section
        4.2 of this Agreement). 

       

              2.3.  Notwithstanding
        anything to the contrary contained in this Option Agreement, the Option may
        not
        be exercised, in whole or in part, unless and until any then-applicable
        requirements of all state and federal laws and regulatory agencies shall
        have
        been fully complied with to the satisfaction of the Company and its
        counsel.

       

      3.     Exercise
        of the Option.
        

       

              3.1.  The
        Option may be exercised, in whole or in part, only by delivery to the Company
        of:

       

                  3.1.1  written
        notice of the exercise of the Option in form identical to Exhibit
        “A”
        attached
        to this Agreement stating the number of Option Shares being purchased (the
        “Purchased
        Shares”);
        and

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

                  3.1.2  payment
        of the Exercise Price (i) in cash or cash equivalent; or (ii) with the approval
        of the Administrator, by delivery to the Company of such other consideration
        (such as a note or shares of Common Stock) acceptable to the
        Administrator.

       

              3.2.  Following
        receipt of the exercise notice, any other applicable documents and the payment
        referred to above, the Company shall, within 30 days, cause certificates
        representing the Purchased Shares to be delivered to Optionee either at
        Optionee’s address set forth in the records of the Company or at such other
        address as Optionee may designate in writing to the Company; provided;
        however,
        that
        the Company shall not be obligated to issue a fraction or fractions of a
        share
        otherwise issuable upon exercise of the Option, and may pay to Optionee,
        in cash
        or cash equivalent, the fair market value of any such fraction or fractions
        of a
        share as of the date of exercise.

       

              3.3.  If
        requested by the Administrator, Optionee shall also deliver this Agreement
        to
        the Secretary of the Company, who shall endorse hereon a notation of the
        exercise and return this Agreement to Optionee. The date of exercise of an
        Option that is validly exercised shall be deemed to be the date on which
        there
        shall have been delivered to the Administrator the instruments referred to
        in
        this Section 3. Optionee shall not be deemed to be a holder of any Option
        Shares
        pursuant to exercise of the Option until the date of issuance of a stock
        certificate to him or her for such shares following payment in full for the
        Option Shares purchased.

       

              3.4.  As
        a
        condition to exercise of this Option, the Company may require Optionee to
        pay
        over to the Company all applicable federal, state and local taxes which the
        Company is required to withhold with respect to the exercise of this Option.
        At
        the discretion of the Administrator and upon the request of Optionee, the
        minimum statutory withholding tax requirements may be satisfied by the
        withholding of Shares otherwise issuable to Optionee upon the exercise of
        this
        Option.

       

      4.    
        Termination
        of Option

       

              4.1.  The
        Option shall terminate and expire upon the earliest to occur of: (i) the
        Option
        Expiration Date set forth in the Option Certificate; (ii) the Termination
        Date;
        and (iii) a Corporate Transaction if so specified by the Administrator.
        Following the Employment Termination Date, and prior to the Termination Date,
        the Option may be exercised only to the extent vested as of the date of
        Employment Termination Date.

       

                  4.2.  For
        purposes of this Agreement:

       

                      4.2.1  “Employment
        Termination Date”
shall
        mean the date Optionee is no an employee of the Company or any of its
        Affiliates. Optionee’s employment shall not be deemed to terminate by reason of
        a transfer to or from the Company or an Affiliate or among such entities,
        or
        sick leave, military leave or other leave of absence approved by the
        Administrator, if the period of any such leave does not exceed 90 days or,
        if
        longer, if Optionee’s right to reemployment by the Company or any Affiliate is
        guaranteed either contractually or by statute. 

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      4.2.2  “Termination
        Date”
shall
        be: (a) the date 90 days following the Employment Termination Date unless
        Optionee’s employment is terminated For Cause or as a result of the death or
        disability of Optionee; (b) upon the Employment Termination Date if Optionee’s
        employment is terminated For Cause; or (c) one year following the Employment
        Termination Date as a result of the death or disability of Optionee.

       

                      4.2.3  “For
        Cause”
shall
        mean Optionee’s loss of employment by the Company or any of its Affiliates due
        to Optionee’s (a) willful breach or habitual neglect or continued incapacity to
        perform Optionee’s required duties, (b) commission of acts of dishonesty, fraud,
        misrepresentation or other acts of moral turpitude in connection with Optionee’s
        services to the Company or its Affiliates or which in the determination of
        the
        Administrator would prevent the effective performance of Optionee’s duties or
        (c) termination For Cause under any employment agreement between the Company
        and
        Optionee (as for cause is defined therein).

       

      5.    
        Adjustment.
        The
        number of shares and Exercise Price of this Option shall be subject to
        adjustment under the circumstances contemplated by the Plan and the Option
        Expiration Date may be accelerated by the Administrator upon the circumstances
        set forth in the Plan.

       

      6.    
        Corporate
        Transactions.
        Upon
        the occurrence of a Corporate Transaction, the Option shall be subject to
        the
        actions of the Administrator as contemplated in the Plan, including without
        limitation the termination of the Option immediately prior to the consummation
        of the Corporate Transaction.

       

      7.    
        Modification.
        Subject
        to the terms and conditions and within the limitations of the Plan, the
        Administrator may modify, extend or renew the Option or accept the surrender
        of,
        and authorize the grant of a new option in substitution for, the Option (to
        the
        extent not previously exercised). No modification of the Option shall be
        made
        which, without the consent of Optionee, would cause the Option to fail to
        continue to qualify as an “incentive
        stock option”
within
        the meaning of Section 422 of the Code or would alter or impair any rights
        of
        Optionee under the Option.

       

      8.     Disqualifying
        Distribution; Withholding

       

              8.1.  Optionee
        agrees that, should he or she make a “disposition”
(as
        defined in Section 424(c) of the Code) of all or any of the Purchased Shares
        within two years from the date of the grant of the Option or within one year
        after the issuance of such Purchased Shares, he or she shall immediately
        advise
        the Company in writing as to the occurrence of the sale and the price realized
        upon the sale of such Purchased Shares. Optionee agrees that he or she shall
        maintain all Purchased Shares in his or her name so long as he or she maintains
        beneficial ownership of such Purchased Shares.

       

              8.2.  Optionee
        shall make any arrangement required by the Company and authorized by the
        Plan,
        including, if applicable, accepting a lesser number of Option Shares upon
        exercise, to insure the proper withholding of the amount of tax, if any,
        required to be withheld by the Company as a result of the sale of stock upon
        exercise of the Option.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      9.    
        Incorporation
        of Plan.
        This
        Agreement is made pursuant to the Plan, and it is intended, and shall be
        interpreted in a manner, to comply with the Plan. Any provision of this
        Agreement inconsistent with the Plan shall be superseded and governed by
        the
        Plan.

       

      10.    
        Restrictions
        on Sale of Purchased Shares.
        Optionee understands that: (a) unless the issuance of the Purchased Shares
        to
        Optionee upon exercise of the Option is registered under the Securities Act
        of
        1933, as amended (the “Securities
        Act”),
        the
        Purchased Shares will be “restricted
        securities”
within
        the meaning of Rule 144 under such Act; (b) the Purchased Shares may not
        be
        sold, transferred or assigned by the Optionee except pursuant to an effective
        registration statement under the Securities Act or an exemption from
        registration under the Securities Act; and (c) the Company is under no
        obligation to file a registration statement under the Securities Act covering
        the Option Shares. Optionee agrees that any certificates evidencing Purchased
        Shares may bear a legend indicating that their transferability is restricted
        in
        accordance with applicable state and federal securities laws.

       

      11.    General
        Provisions.

       

              11.1.  Further
        Assurances.
        Optionee shall promptly take all actions and execute all documents requested
        by
        the Company that the Company deems to be reasonably necessary to effectuate
        the
        term and intent of this Agreement.

       

              11.2.  Notices.
        All
        notices, requests, demands and other communications (collectively, “Notices”)
        given
        pursuant to this Agreement shall be in writing, and shall be delivered by
        personal service, courier, or by United States first class, registered or
        certified mail, postage prepaid, addressed to the party at the address set
        forth
        on the signature page of this Agreement. Any Notice, other than a Notice
        sent by
        registered or certified mail, shall be effective when received; a Notice
        sent by
        registered or certified mail, postage prepaid return receipt requested, shall
        be
        effective on the earlier of when received or the third day following deposit
        in
        the United States mails. Any party may from time to time change its address
        for
        further Notices hereunder by giving notice to the other party in the manner
        prescribed in this Section.

       

              11.3.  Failure
        to Enforce Not a Waiver.
        The
        failure of the Company to enforce at any time any provision of this Agreement
        shall is no way be construed to be a waiver of such provision or of any other
        provision hereof.

       

              11.4.  Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the law of
        the
        State of California applicable to contracts made in, and to be performed
        within,
        that State.

       

              11.5.  Transfer
        of Rights under this Agreement.
        The
        Company may at any time transfer and assign its rights and delegate its
        obligations under this Agreement to any other person, corporation, firm or
        entity, with or without consideration.

       

              11.6.  Option
        Non-transferable.
        Optionee may not sell, transfer, assign or otherwise dispose of the Option
        except by will or the laws of descent and distribution, and only Optionee
        or his
        or her legal representative or guardian may exercise the Option during
        Optionee’s lifetime.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

              11.7.  No
        Right to Employment.
        Nothing
        in this Option shall interfere with or limit in any way the right of the
        Company
        or of any of its Affiliates to terminate Optionee’s employment, consulting or
        advising at any time, nor confer upon Optionee any right to continue in the
        employ of, consult with or advise the Company or any of its
        Affiliates.

       

              11.8.  Successors
        and Assigns.
        Except
        to the extent specifically limited by the terms and provision of this Agreement,
        this Agreement shall be binding upon and inure to the benefit of the parties
        hereto and their respective successors, assigns, heirs and personal
        representatives.

       

              11.9.  Miscellaneous.
        Titles
        and captions contained in this Agreement are inserted for convenience of
        reference only and do not constitute a part of this Agreement for any other
        purpose. Except as specifically provided herein, neither this Agreement nor
        any
        right pursuant hereto or interest herein shall be assignable by any of the
        parties hereto without the prior written consent of the other party
        hereto.

       

              11.10.  Tax
        Treatment.
        Optionee acknowledges that the tax treatment of the Option, the Option Shares
        or
        any events or transactions with respect thereto may be dependent upon various
        factors or events that are not determined by the Plan or this Agreement.
        The
        Company makes no representations with respect to and hereby disclaims all
        responsibility as to such tax treatment.

       

      The
        signature page of this Agreement consists of the last page of the
        Certificate.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        “A”

       

      NOTICE
        OF
        EXERCISE

       

      (To
        be
        signed only upon exercise of the Option)

       

      

      TO: CenterStaging
        Corp. 

       

      

      The
        undersigned, the holder of the enclosed Stock Option Agreement (Incentive
        Stock
        Option), hereby irrevocably elects to exercise the purchase right represented
        by
        the Option and to purchase thereunder ______* shares of Common Stock of
        CenterStaging Corp. (the “Company”)
        and
        herewith encloses payment of $_________ in full payment of the purchase price
        of
        such shares being purchased.

       

      
        	
                Dated:                                                                    
                  

              	
                 

                                                                                           

                (Signature
                  must conform in all respects to name of 

                holder
                  as specified
                  on the face of the Option)

                 

                
                                                                                             

                

                
                                                                                             

                

                         
                     (Address)

                
                   

                                                                                             

                

                          Social
                  Security
                  Number

              

      

      

      

      *Insert
        here the number of shares being exercised making all adjustments for stock
        splits, stock dividends or other additional Common Stock of the Company,
        other
        securities or property which, pursuant to the adjustment provisions of Section
        5
        of the Option, may be deliverable upon exercise.

       

       

      
        
           

        

          15CENTERSTAGING
      CORP. 

     

    2005
      NON-QUALIFIED STOCK OPTION PLAN 

     

    

     

    
      	1.    	
              Purposes
                of the Plan

            

    

     

    The
      purposes of the 2005 Non-Qualified Stock Option Plan (this “Plan”)
      of
      CenterStaging Corp., a Delaware corporation, are to:

     

    1.1    
      Encourage
      selected directors, employees and consultants to improve operations and increase
      profits of the Company;

     

    1.2    
      Encourage
      selected directors, employees and consultants to accept or continue employment
      with the Company or its Affiliates (as defined below); and

     

    1.3    
      Increase
      the interest of selected directors, employees and consultants in the Company’s
      welfare through participation in the growth in value of the Common
      Stock.

     

    
      	2.    	
              Definitions

            

    

     

    For
      purposes of this Plan, the following capitalized terms shall have the meanings
      set forth below:

     

    2.1    
      “Administrator”
shall
      mean the Administrator of the Plan, which shall be the Board or a committee
      to
      which the Board delegates administration, as described in Section 5
      of this
      Plan.

     

    2.2    
      “Affiliate”
shall
      mean with respect to the Company a parent or subsidiary corporation as defined
      in the applicable provisions (currently Sections 424(e) and (f), respectively)
      of the IRC.

     

    2.3    
      “Board”
shall
      mean the Board of Directors of the Company.

     

    2.4    
      “Common
      Stock”
shall
      mean the common stock of the Company.

     

    2.5    
      “Company”
shall
      mean CenterStaging Corp., a Delaware corporation.

     

    2.6    
      “Corporate
      Transaction”
shall
      mean (a) a liquidation or dissolution of the Company; (b) a merger or
      consolidation of the Company with or into another corporation (other than a
      merger with a wholly-owned subsidiary); or (c) a sale of all or
      substantially all of the assets of the Company in a single transaction or a
      series of related transactions.

     

    2.7    
      “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.8    
      “For
      Cause”
shall
      mean, in connection with termination of an optionee’s employment by the Company
      or any Affiliates of the Company, termination due to such optionee’s (a) willful
      breach or habitual neglect or continued incapacity to perform such optionee’s
      required duties, (b) commission of acts of dishonesty, fraud, misrepresentation
      or other acts of moral turpitude in connection with optionee’s services to the
      Company or its Affiliates or which in the determination of the Administrator
      would prevent the effective performance of such optionee’s duties, or (c)
      termination For Cause under any employment agreement between the Company and
      such optionee (as For Cause is defined therein).

     

    2.9    
      “IRC”
shall
      mean the Internal Revenue Code of 1986, as amended from time to
      time.

     

    2.10   
      “Option”
shall
      mean an option granted under the Plan.

     

    2.11    
      “Option
      Grant Date”
shall
      have the meaning set forth in Section 6.2.1.

     

    2.12   
      “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    2.13    “Termination
      Date”
shall
      mean, in connection with the termination of an optionee’s employment or service
      with the Company or any Affiliate, the date 90 days after the date of
      termination, except: (a) the date of such termination if such termination is
      by
      the Company For Cause; or (b) one year following the date of such termination
      if
      such termination is as a result of the death or disability of the optionee.
      If
      optionee is an employee, an optionee’s employment shall not be deemed to
      terminate by reason of a transfer to or from the Company or an Affiliate or
      among such entities, or sick leave, military leave or other leave of absence
      approved by the Administrator, if the period of any such leave does not exceed
      90 days or, if longer, if such optionee’s right to reemployment by the Company
      or any Affiliate is guaranteed either contractually or by statute.

     

    
      	3.    	
              Types
                of Awards; Eligible
                Persons

            

    

     

    3.1    
      Options
      granted under this Plan are “non-qualified options” and not intended to meet the
      requirements of Section 422 of the IRC and the regulations thereunder as
“incentive stock options.” Options
      may be granted only to directors and employees, and consultants to, the Company
      or any Affiliate of the Company. Options may be offered to persons who are
      not
      employees in connection with offers of employment and conditioned upon their
      becoming employees. The term “consultant” includes persons employed by, or
      otherwise affiliated with, a consultant.

     

    3.2    
      Except
      as
      otherwise expressly set forth in this Plan, no right or benefit under this
      Plan
      or under any Option shall be subject in any manner to alienation, hypothecation
      or charge, and any such attempted action shall be void. No right or benefit
      under this Plan or under any Option shall in any manner be liable for or subject
      to debts, contracts, liabilities or torts of any optionee or any other person
      except as otherwise may be expressly required by applicable law.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	4.    	
              Stock
                Subject to This Plan; Maximum Number of
                Shares

            

    

     

    The
      Company may issue up to 3,000,000 shares of Common Stock upon exercise of
      Options. The maximum number of shares under the Plan shall be appropriately
      adjusted for any stock split, reverse stock split, stock dividend,
      recapitalization, combination, reclassification or other distribution of the
      Company’s securities without consideration. The shares subject to an Option that
      expires, terminates or is cancelled unexercised shall become available for
      additional Option grants under this Plan. Where the exercise price of an Option
      is paid by means of the optionee’s surrender of previously owned shares of
      Common Stock or the Company’s withholding of shares otherwise issuable upon
      exercise of the Option as permitted herein, only the net number of shares issued
      and which remain outstanding in connection with such exercise shall be deemed
      “issued” and no longer available for issuance under this Plan. No person shall
      be granted Options during any twelve-month period covering more than 500,000
      shares.

     

    
      	5.    	
              Administration

            

    

     

    5.1    
      This
      Plan
      shall be administered by the Board or by a committee to which administration
      of
      this Plan, or of part of this Plan, is delegated by the Board (in either case,
      the “Administrator”).
      The
      Board shall appoint and remove members of the committee in its discretion in
      accordance with applicable laws. If necessary, in order to comply with Rule
      16b-3 under the Exchange Act or Section 162(m) of the IRC, or any successor
      statute or regulation, the committee shall, in the Board’s discretion, be
      comprised solely of “non-employee directors” within the meaning of Rule 16b-3 or
“outside directors” within the meaning of Section 162(m) of the IRC. The
      foregoing notwithstanding, the Administrator may delegate non-discretionary
      administrative duties to such employees of the Company as it deems proper and
      the Board, in its absolute discretion, may at any time and from time to time
      exercise any and all rights and duties of the Administrator under this
      Plan.

     

    5.2    
      Subject
      to the other provisions of this Plan, the Administrator shall have the
      authority, in its discretion: (a) to grant Options; (b) to determine the fair
      market value of the Common Stock subject to Options; (c) to determine the
      exercise price of Options granted, but which shall be not less than 85% of
      the
      fair market value of the Common Stock at the date of grant; (d) to determine
      the
      persons to whom, and the time or times at which, Options shall be granted,
      and
      the number of shares subject to each Option; (e) to construe and interpret
      the
      terms and provisions of this Plan and of any option agreement and all Options
      granted under this Plan; (f) to prescribe, amend, and rescind rules and
      regulations relating to this Plan; (g) to determine the terms and provisions
      of
      each Option granted (which need not be identical), including but not limited
      to,
      the time or times at which Options shall be exercisable; (h) with the consent
      of
      the optionee, to modify or amend any Option provided that no such consent is
      required to reduce the exercise price, extend the maturity or accelerate the
      vesting of an Option; (i) to authorize any person to execute on behalf of the
      Company any instrument evidencing the grant of an Option; (j) to determine
      the
      duration and purposes of leaves of absence which may be granted to optionees
      without constituting a termination of their employment for the purposes of
      the
      Plan; (k) to determine the appropriate adjustments to the maximum number and
      type of shares issuable under the Plan if the stock of the Company is changed
      by
      reason of a stock split, reverse stock split, stock dividend, recapitalization,
      combination, reclassification or other distribution of the Company’s securities
      without consideration; and (l) to make all other determinations deemed necessary
      or advisable for the administration of this Plan or any option agreement or
      Option.

     

    5.3    
      All
      questions of interpretation, implementation and application of this Plan or
      any
      option agreement or Option shall be determined by the Administrator, which
      determination shall be final and binding on all persons.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	6.    	
              Option
                Agreements; Terms and Conditions of
                Options

            

    

     

           6.1    
      Each
      Option shall be evidenced by a written stock option agreement, in form
      satisfactory to the Administrator, executed by the Company and the person to
      whom such Option is granted. In the event of a conflict between the terms or
      conditions of an option agreement and the terms and conditions of this Plan,
      the
      terms and conditions of this Plan shall govern.

     

    6.2    
      Each
      Option shall be subject to the following terms and conditions: 

     

             
      6.2.1  Option
      Grant Date.
      The
      date of grant of an Option (“Option
      Grant Date”)
      shall
      be the date specified by the Administrator in its approval of the Option or,
      if
      no such date is specified, the date of such approval. If an Option is granted
      in
      anticipation of employment as provided in Section 3.1,
      the
      Option shall be deemed granted, without further approval, on the date the
      optionee assumes the employment relationship forming the basis for such grant,
      and, in addition, satisfies all requirements of this Plan for Options granted
      on
      that date.

     

             6.2.2  Exercise
      Price.
      The
      exercise price of an Option shall be not less than 85% of the fair market value
      (determined in accordance with Section 6.3) of the stock covered by the Option
      on the Option Grant Date. 

     

             6.2.3  Vesting.
      The
      Administrator may establish a vesting schedule in connection with any Option
      based on time and/or performance criteria. 

     

             6.2.4  Payment
      of Exercise Price.
      Except
      as provided below, payment in full, in cash, shall be made for all stock
      purchased at the time written notice of exercise of an Option is given to the
      Company. Subject to the terms of the stock option agreement granting the Option,
      the Administrator, in the exercise of its absolute discretion after considering
      any tax, accounting and financial consequences, may authorize any one or more
      of
      the following additional methods of payment:

     

                 (a)  Acceptance
      of the optionee’s full recourse promissory note for all or part of the exercise
      price, payable on such terms and bearing such interest rate as determined by
      the
      Administrator (but in no event less than the minimum interest rate specified
      under the IRC at which no additional interest or original issue discount would
      be imputed), which promissory note may be either secured or unsecured in such
      manner as the Administrator shall approve (including, without limitation, by
      a
      security interest in the shares of the Company);

     

            (b)  Delivery
      by the optionee of shares of Common Stock already owned by the optionee for
      all
      or part of the Option price, provided the fair market value (determined as
      set
      forth in Section 6.3)
      of such
      shares of Common Stock is equal on the date of exercise to the Option price,
      or
      such portion thereof as the optionee is authorized to pay by delivery of such
      stock;

     

               (c)  Through
      the surrender of shares of Common Stock then issuable upon exercise of the
      Option, provided the fair market value (determined as set forth in Section
      6.3)
      of such
      shares of Common Stock is equal on the date of exercise to the exercise price,
      or such portion thereof as the optionee is authorized to pay by surrender of
      such stock; and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

               (d)  Subject
      to compliance with any applicable laws or regulations, by means of so-called
      cashless exercises.

     

         6.2.5   
      Option
      Term.
      No
      Option shall be exercisable more than ten years after the Option Grant Date,
      or
      such lesser period of time as is set forth in the stock option agreement (the
      end of the maximum exercise period stated in the stock option agreement is
      referred to in this Plan as the “Expiration
      Date”).

     

         6.2.6    
      Changes
      in Capital Structure.
      Unless
      otherwise provided in the stock option agreement evidencing the Option, if
      the
      stock of the Company is changed by reason of a stock split, reverse stock split,
      stock dividend, recapitalization, combination, reclassification or other
      distribution of the Company’s securities without consideration, appropriate
      adjustments shall be made by the Administrator, in its sole discretion, in
      (a)
      the number and class of shares of stock subject to each Option outstanding
      under
      this Plan, and (b) the exercise price of each outstanding Option; provided,
      however,
      that
      the Company shall not be required to issue fractional shares as a result of
      any
      such adjustments.

     

         6.2.7    
      Corporate
      Transactions.
      Unless
      otherwise provided in the stock option agreement evidencing the Option, in
      the
      event of a Corporate Transaction, each Option shall terminate immediately prior
      thereto unless the Administrator, in its sole discretion, either provides that
      the Option shall continue or provides that the Option shall be assumed by an
      applicable successor corporation or entity or any Affiliate of the successor
      corporation or entity. The Administrator shall, in its sole discretion, have
      the
      power to permit exercise of any Option prior to its termination, even if such
      Option would not otherwise have been exercisable.

     

         6.2.8    
      Non-Transferability
      of Options.
      No
      Option shall be assignable or otherwise transferable by the optionee except
      by
      will or by the laws of descent and distribution. During the life of the
      optionee, an Option shall be exercisable only by the optionee. 

     

         6.2.9    
      Termination
      of Employment.
      Except
      as otherwise provided in the stock option agreement, if for any reason an
      optionee ceases to be employed by the Company and its Affiliates, the Option
      shall terminate and expire upon the earliest to occur of: (a) the Termination
      Date; (b) the Expiration Date; and (c) if applicable, immediately prior to
      a
      Corporate Transaction as contemplated by Section 6.2.7
      of this
      Plan. For purposes of this Section 6.2.9, “employment” includes service as a
      director or as a consultant. 

     

           6.2.10 
Other
      Provisions.
      Each
      Option may contain such other terms, provisions and conditions not inconsistent
      with this Plan as may be determined by the Administrator.

     

         
      6.3   Determination
      of Fair Market Value.
      For
      purposes of this Plan, the fair market value of Common Stock or other securities
      of the Company shall be determined as follows. If the stock of the Company
      is
      listed on a securities exchange or is regularly quoted by a recognized
      securities dealer, and selling prices are reported, its fair market value shall
      be the closing price of such stock on the date the value is to be determined
      or
      the last preceding business day on which sale prices were reported.
      Notwithstanding the foregoing, if the Administrator determines that the stock
      of
      the Company is not readily tradable on such market and does not reflect its
      true
      market value, the Administrator shall value the stock by taking into account
      all
      the facts and circumstances as of the valuation date. The factors that must
      be
      taken into account include the value of tangible and intangible assets of
      the Company, the present value of future cash flows of the Company,
      the market value of stock or equity interests of similar corporations and other
      entities engaged in trades or businesses substantially similar to those engaged
      in by the Company, the value of which can be determined by objective means
      (such as, trading prices on an established market or an amount paid at arm's
      length in a private transaction) and any other relevant factors. Such valuation
      method shall be utilized consistently to determine the value of Company
      stock or assets for all purposes.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

        6.4    
      Withholding
      and Employment Taxes.
      At the
      time of exercise and as a condition thereto, or at such other time as the amount
      of such obligation becomes determinable, the optionee shall remit to the Company
      in cash all applicable federal and state withholding and employment taxes.
      Such
      obligation to remit may be satisfied, if authorized by the Administrator in
      its
      sole discretion, after considering any tax, accounting and financial
      consequences, by the optionee’s (a) delivery of a promissory note in the
      required amount on such terms as the Administrator deems appropriate, (b)
      tendering to the Company previously owned shares of Common Stock or other
      securities of the Company with a fair market value equal to the required amount,
      or (c) agreeing to have shares of Common Stock (with a fair market value equal
      to the required amount) which are acquired upon exercise of the Option withheld
      by the Company.

     

    
      	7.    	
              Manner
                of Exercise

            

    

     

        7.1  An
      optionee wishing to exercise an Option shall give written notice to the Company
      at its principal executive office, to the attention of the officer of the
      Company designated by the Administrator, accompanied by payment of the exercise
      price and withholding taxes as provided in Section 6.4.
      An
      Option will be considered exercised on the last to occur of the following dates:
      (a) the date the Company receives written notice of an exercise; (b) the date
      specified in the written notice of exercise (which date may not be more than
      30
      days after the date the Company receives the written notice of exercise); and
      (c) the date the Company receives payment of the exercise price.

     

    7.2  Promptly
      after receipt of written notice of exercise of an Option and the payments called
      for by Section 6.2.4,
      the
      Company shall, without stock issue or transfer taxes to the optionee or other
      person entitled to exercise the Option, deliver to the optionee or such other
      person a certificate or certificates for the requisite number of shares of
      Common Stock. An optionee or permitted transferee of the Option shall not have
      any privileges as a stockholder with respect to any shares of stock covered
      by
      the Option until the date of issuance (as evidenced by the appropriate entry
      on
      the books of the Company or a duly authorized transfer agent) of such
      shares.

     

    
      	8.    	
              Employment
                Relationship

            

    

     

    Nothing
      in this Plan or any Option granted hereunder shall interfere with or limit
      in
      any way the right of the Company or any of its Affiliates to terminate any
      optionee’s employment or consulting relationship at any time (subject to rights
      of employee or consultant under any contract), nor shall confer upon any
      optionee or consultant any right to continue in the employ or service of the
      Company or any of its Affiliates.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	9.    	
              Conditions
                Upon Issuance of Shares

            

    

     

    The
      Company shall have no obligation to issue shares of Common Stock upon exercise
      of an Option unless such issuance has been registered under the Securities
      Act
      and qualified or registered under applicable state securities laws, or such
      issuance is exempt from registration or qualification under the Securities
      Act
      and applicable state securities laws. The Company shall have no obligation
      to
      register or qualify the issuance of the shares under the Securities Act or
      applicable state securities laws. 

     

    
      	10.   	
              Non-Exclusivity
                of This Plan

            

    

     

    The
      adoption of this Plan shall not be construed as creating any limitations on
      the
      power of the Company to adopt such other incentive arrangements as it may deem
      desirable, including, without limitation, the granting of stock options other
      than under this Plan.

     

    
      	11.     	
              Market
                Stand-off

            

    

     

    Each
      optionee, if so requested by the Company or any representative of the
      underwriters in connection with any registration of the offering of any
      securities of the Company under the Securities Act, shall not sell or otherwise
      transfer any shares of Common Stock acquired upon exercise of Options during
      the
      180-day period following the effective date of a registration statement of
      the
      Company filed under the Securities Act; provided,
      however,
      that
      such restriction shall apply only to the first registration statement of the
      Company to become effective under the Securities Act after the date of adoption
      of this Plan which includes securities to be sold on behalf of the Company
      to
      the public in an underwritten public offering under the Securities Act. The
      Company may impose stop-transfer instructions with respect to securities subject
      to the foregoing restriction until the end of such 180-day period.

     

    
      	12.     	
              Amendments
                to Plan

            

    

     

    The
      Board
      may at any time amend, alter, suspend or discontinue this Plan. Without the
      consent of an optionee, no amendment, alteration, suspension or discontinuance
      may adversely affect such optionee’s outstanding Option(s) except to conform
      this Plan and Options granted under this Plan to the requirements of federal
      or
      other tax laws relating to incentive stock options. No amendment, alteration,
      suspension or discontinuance shall require stockholder approval unless
      stockholder approval is required under applicable law; provided that the
      Administrator may in its discretion seek stockholder approval of any amendment,
      alteration, suspension or discontinuance. 

     

    
      	13.     	
              Effective
                Date of Plan; Termination

            

    

     

    13.1  Effective
      Date.
      This
      Plan shall become effective upon adoption by the Board; provided,
      however,
      that no
      Option shall be exercisable unless and until written consent of the stockholders
      of the Company, or approval of stockholders of the Company voting at a validly
      called stockholders’ meeting, is obtained within 12 months after adoption by the
      Board. If any Options are so granted and stockholder approval shall not have
      been obtained within 12 months of the date of adoption of this Plan by the
      Board, such Options shall terminate retroactively as of the date they were
      granted.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    13.2  Termination.
      This
      Plan shall terminate on September 30, 2015. Termination of this Plan shall
      not
      affect any outstanding Options and such outstanding Options shall continue
      to be
      subject to the terms of this Plan.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      CENTERSTAGING
        CORP. 

       

      OPTION
        CERTIFICATE

       

      (Non-Qualified
        Stock Option)

       

      

      THIS
        IS
        TO CERTIFY that CenterStaging Corp., a Delaware corporation (the “Company”),
        has
        granted to the director, officer, employee or consultant named below
        (“Optionee”)
        a
        non-qualified stock option (the “Option”)
        to
        purchase shares of the Company’s Common Stock (the “Shares”)
        under
        its 2005 Non-Qualified Stock Option Plan (the “Plan”)
        and
        upon the terms and conditions set forth below and in the attached Stock Option
        Agreement:

       

      
        
          	
                  Name
                    of Optionee:

                	                                                      
                  
	
                  Address
                    of Optionee:

                	
                                                                        
                    

                                                                        
                    

                
	
                  Number
                    of Shares:

                	                                                       
	
                  Option
                    Exercise Price:

                	
                  $                                                per
                    share

                
	
                  Date
                    of Grant:

                	                                                      
                  
	
                  Option
                    Expiration Date:

                	                                                      
                  

        

         

      

      Exercise
        Schedule:
        The
        Option shall become exercisable (“vest”) as follows:

      
         

        
          	
                  Date

                	 	
                  Number
                    of Shares

                
	
                  ______________________

                	 	
                  ___________________________________

                

        

         

      

      In
        Witness Whereof, the Company has granted to Optionee the Option as of the
        Date
        of Grant set forth above.

       

      
        
          	
                  OPTIONEE

                   

                   

                                                                                  
                    

                	
                  CENTERSTAGING
                    CORP. 

                   

                   

                  By                                                         
                                  

                  Its                                                                        
                    

                

        

         

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      STOCK
        OPTION AGREEMENT

      (Non-Qualified
        Stock Option)

       

      

      This
        STOCK OPTION AGREEMENT (this “Agreement”)
        is
        made and entered into as of the Date of Grant set forth in the Option
        Certificate to which this Agreement is attached (the “Certificate”)
        by and
        between CenterStaging Corp., a Delaware corporation (the “Company”),
        and
        the optionee (the “Optionee”)
        named
        in the Certificate. 

       

      Pursuant
        to the 2005 Non-Qualified Stock Option Plan of the Company (the “Plan”),
        the
        Administrator has determined that Optionee is to be granted, on the terms
        and
        conditions set forth in this Agreement and in the Plan, an option to purchase
        shares of the Company’s Common Stock (the “Common
        Stock”).
        It is
        intended that the option not
        qualify
        as an “incentive stock option” within the meaning of Section 422 of the Internal
        Revenue Code of 1986, as amended from time to time (the “Code”).
        Capitalized terms not otherwise defined in this Agreement shall have the
        meanings ascribed to them in the Plan.

       

      The
        Company and Optionee agree as follows:

       

      1.    
        Grant
        of Option.
        The
        Company hereby grants to Optionee, upon the terms and subject to the conditions
        set forth in this Agreement, an Option (the “Option”)
        to
        purchase all or any portion of that number of shares of Common Stock set
        forth
        in the Certificate (the “Option
        Shares”),
        at
        the exercise price set forth in the Certificate (the “Exercise
        Price”).

       

      2.    
        Vesting

       

      2.1.  The
        Option shall “vest” and become exercisable in installments upon and after the
        dates set forth under the caption “Exercise
        Schedule”
in
        the
        Certificate. The installments shall be cumulative; i.e.,
        the
        Option may be exercised, as to any or all Shares covered by an installment,
        at
        any time or times after the installment first becomes exercisable and until
        expiration or termination of the Option.

       

              2.2.  No
        vesting shall occur after the Employment Termination Date (as defined in
        Section
        4.2 of this Agreement).

       

              2.3.  Notwithstanding
        anything to the contrary contained in this Option Agreement, the Option may
        not
        be exercised, in whole or in part, unless and until any then-applicable
        requirements of all state and federal laws and regulatory agencies shall
        have
        been fully complied with to the satisfaction of the Company and its
        counsel.

       

      3.    
        Exercise
        of the Option.
        

       

              3.1.     
        The
        Option may be exercised, in whole or in part, only by delivery to the Company
        of:

       

                  3.1.1  written
        notice of the exercise of the Option in form identical to Exhibit
        “A”
        attached
        to this Agreement stating the number of Option Shares being purchased (the
        “Purchased
        Shares”);
        and

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

                  3.1.2  payment
        of the Exercise Price (i) in cash or cash equivalent; or (ii) with the approval
        of the Administrator, by delivery to the Company of such other consideration
        (such as a note or shares of Common Stock) acceptable to the
        Administrator.

       

              3.2.  Following
        receipt of the exercise notice, any other applicable documents and the payment
        referred to above, the Company shall, within 30 days, cause certificates
        representing the Purchased Shares to be delivered to Optionee either at
        Optionee’s address set forth in the records of the Company or at such other
        address as Optionee may designate in writing to the Company; provided;
        however,
        that
        the Company shall not be obligated to issue a fraction or fractions of a
        share
        otherwise issuable upon exercise of the Option, and may pay to Optionee,
        in cash
        or cash equivalent, the fair market value of any such fraction or fractions
        of a
        share as of the date of exercise.

       

              3.3.  If
        requested by the Administrator, Optionee shall also deliver this Agreement
        to
        the Secretary of the Company, who shall endorse hereon a notation of the
        exercise and return this Agreement to Optionee. The date of exercise of an
        Option that is validly exercised shall be deemed to be the date on which
        there
        shall have been delivered to the Administrator the instruments referred to
        in
        this Section 3. Optionee shall not be deemed to be a holder of any Option
        Shares
        pursuant to exercise of the Option until the date of issuance of a stock
        certificate to him or her for such shares following payment in full for the
        Option Shares purchased.

       

              3.4.  As
        a
        condition to exercise of this Option, the Company may require Optionee to
        pay
        over to the Company all applicable federal, state and local taxes which the
        Company is required to withhold with respect to the exercise of this Option.
        At
        the discretion of the Administrator and upon the request of Optionee, the
        minimum statutory withholding tax requirements may be satisfied by the
        withholding of Shares otherwise issuable to Optionee upon the exercise of
        this
        Option.

       

      4.    
        Termination
        of Option

       

              4.1.  The
        Option shall terminate and expire upon the earliest to occur of: (i) the
        Option
        Expiration Date set forth in the Option Certificate; (ii) the Termination
        Date;
        and (iii) a Corporate Transaction if so specified by the Administrator.
        Following the Employment Termination Date, and prior to the Termination Date,
        the Option may be exercised only to the extent vested as of the date of
        Employment Termination Date.

       

              4.2.  For
        purposes of this Agreement:

       

                  4.2.1  “Employment
        Termination Date”
shall
        mean the date Optionee is no longer is a director, employee or
        consultant to the Company and its Affiliates. As long as Optionee is at least
        one of employee, director or consultant, the Employment Termination Date
        shall
        not be deemed to have occurred. For example, if Optionee is an employee and
        a
        director, the termination of employment as an employee while remaining a
        director shall not establish an Employment Termination Date (which would
        only be
        established if and when Optionee ceases to be a director). Optionee’s employment
        shall not be deemed to terminate by reason of a transfer to or from the Company
        or an Affiliate or among such entities, or sick leave, military leave or
        other
        leave of absence approved by the Administrator, if the period of any such
        leave
        does not exceed 90 days or, if longer, if Optionee’s right to reemployment by
        the Company or any Affiliate is guaranteed either contractually or by
        statute.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

                  4.2.2  “Termination
        Date”
shall
        be: (a) the date 90 days following the Employment Termination Date unless
        Optionee’s employment is terminated For Cause or as a result of the death or
        disability of Optionee; (b) upon the Employment Termination Date if Optionee’s
        employment is terminated For Cause; or (c) one year following the Employment
        Termination Date as a result of the death or disability of Optionee.

       

                  4.2.3  “For
        Cause”
shall
        mean Optionee’s loss of employment, directorship or consulting engagement by the
        Company or any of its Affiliates due to Optionee’s (a) willful breach or
        habitual neglect or continued incapacity to perform Optionee’s required duties,
        (b) commission of acts of dishonesty, fraud, misrepresentation or other acts
        of
        moral turpitude in connection with Optionee’s services to the Company or its
        Affiliates or which in the determination of the Administrator would prevent
        the
        effective performance of Optionee’s duties or (c) termination For Cause under
        any employment or consulting agreement between the Company and Optionee (as
        for
        cause is defined therein).

       

      5.    
        Adjustment.
        The
        number of shares and Exercise Price of this Option shall be subject to
        adjustment under the circumstances contemplated by the Plan and the Option
        Expiration Date may be accelerated by the Administrator upon the circumstances
        set forth in the Plan.

       

      6.    
        Corporate
        Transactions.
        Upon
        the occurrence of a Corporate Transaction, the Option shall be subject to
        the
        actions of the Administrator as contemplated in the Plan, including without
        limitation the termination of the Option immediately prior to the consummation
        of the Corporate Transaction.

       

      7.    
        Modification.
        Subject
        to the terms and conditions and within the limitations of the Plan, the
        Administrator may modify, extend or renew the Option or accept the surrender
        of,
        and authorize the grant of a new option in substitution for, the Option (to
        the
        extent not previously exercised). No modification of the Option shall be
        made
        which, without the consent of Optionee, would cause the Option to fail to
        continue to qualify as an “incentive
        stock option”
within
        the meaning of Section 422 of the Code or would alter or impair any rights
        of
        Optionee under the Option.

       

      8.    
        Incorporation
        of Plan.
        This
        Agreement is made pursuant to the Plan, and it is intended, and shall be
        interpreted in a manner, to comply with the Plan. Any provision of this
        Agreement inconsistent with the Plan shall be superseded and governed by
        the
        Plan.

       

      9.    
        Restrictions
        on Sale of Purchased Shares.
        Optionee understands that: (a) unless the issuance of the Purchased Shares
        to
        Optionee upon exercise of the Option is registered under the Securities Act
        of
        1933, as amended (the “Securities
        Act”),
        the
        Purchased Shares will be “restricted
        securities”
within
        the meaning of Rule 144 under such Act; (b) the Purchased Shares may not
        be
        sold, transferred or assigned by the Optionee except pursuant to an effective
        registration statement under the Securities Act or an exemption from
        registration under the Securities Act; and (c) the Company is under no
        obligation to file a registration statement under the Securities Act covering
        the Option Shares. Optionee agrees that any certificates evidencing Purchased
        Shares may bear a legend indicating that their transferability is restricted
        in
        accordance with applicable state and federal securities laws.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      10.    
        General
        Provisions.

       

              10.1.  Further
        Assurances.
        Optionee shall promptly take all actions and execute all documents requested
        by
        the Company that the Company deems to be reasonably necessary to effectuate
        the
        term and intent of this Agreement.

       

              10.2.  Notices.
        All
        notices, requests, demands and other communications (collectively, “Notices”)
        given
        pursuant to this Agreement shall be in writing, and shall be delivered by
        personal service, courier, or by United States first class, registered or
        certified mail, postage prepaid, addressed to the party at the address set
        forth
        on the signature page of this Agreement. Any Notice, other than a Notice
        sent by
        registered or certified mail, shall be effective when received; a Notice
        sent by
        registered or certified mail, postage prepaid return receipt requested, shall
        be
        effective on the earlier of when received or the third day following deposit
        in
        the United States mails. Any party may from time to time change its address
        for
        further Notices hereunder by giving notice to the other party in the manner
        prescribed in this Section.

       

              10.3.  Failure
        to Enforce Not a Waiver.
        The
        failure of the Company to enforce at any time any provision of this Agreement
        shall is no way be construed to be a waiver of such provision or of any other
        provision hereof.

       

              10.4.  Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the law of
        the
        State of California applicable to contracts made in, and to be performed
        within,
        that State.

       

              10.5.  Transfer
        of Rights under this Agreement.
        The
        Company may at any time transfer and assign its rights and delegate its
        obligations under this Agreement to any other person, corporation, firm or
        entity, with or without consideration.

       

              10.6.  Option
        Non-transferable.
        Optionee may not sell, transfer, assign or otherwise dispose of the Option
        except by will or the laws of descent and distribution, and only Optionee
        or his
        or her legal representative or guardian may exercise the Option during
        Optionee’s lifetime.

       

              10.7.  No
        Right to Employment.
        Nothing
        in this Option shall interfere with or limit in any way the right of the
        Company
        or of any of its Affiliates to terminate Optionee’s employment, consulting or
        advising at any time, nor confer upon Optionee any right to continue in the
        employ of, consult with or advise the Company or any of its
        Affiliates.

       

              10.8.  Successors
        and Assigns.
        Except
        to the extent specifically limited by the terms and provision of this Agreement,
        this Agreement shall be binding upon and inure to the benefit of the parties
        hereto and their respective successors, assigns, heirs and personal
        representatives.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

              10.9.  Miscellaneous.
        Titles
        and captions contained in this Agreement are inserted for convenience of
        reference only and do not constitute a part of this Agreement for any other
        purpose. Except as specifically provided herein, neither this Agreement nor
        any
        right pursuant hereto or interest herein shall be assignable by any of the
        parties hereto without the prior written consent of the other party
        hereto.

       

              10.10.  Tax
        Treatment.
        Optionee acknowledges that the tax treatment of the Option, the Option Shares
        or
        any events or transactions with respect thereto may be dependent upon various
        factors or events that are not determined by the Plan or this Agreement.
        The
        Company makes no representations with respect to and hereby disclaims all
        responsibility as to such tax treatment.

       

      The
        signature page of this Agreement consists of the last page of the
        Certificate.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      EXHIBIT
        “A”

       

      NOTICE
        OF
        EXERCISE

       

      (To
        be
        signed only upon exercise of the Option)

       

      

      TO: CenterStaging
        Corp. 

       

      

      The
        undersigned, the holder of the enclosed Stock Option Agreement (Incentive
        Stock
        Option), hereby irrevocably elects to exercise the purchase right represented
        by
        the Option and to purchase thereunder ______* shares of Common Stock of
        CenterStaging Corp. (the “Company”)
        and
        herewith encloses payment of $_________ in full payment of the purchase price
        of
        such shares being purchased.

       

      
        
          	
                  Dated:                                                                    
                    

                	
                   

                                                                                             

                  (Signature
                    must conform in all respects to name of 

                  holder
                    as specified
                    on the face of the Option)

                   

                  
                                                                                               

                  

                  
                                                                                               

                  

                           
                       (Address)

                  
                     

                                                                                               

                  

                            Social
                    Security
                    Number

                

        

         

         

      

      *Insert
        here the number of shares being exercised making all adjustments for stock
        splits, stock dividends or other additional Common Stock of the Company,
        other
        securities or property which, pursuant to the adjustment provisions of Section
        5
        of the Option, may be deliverable upon exercise.

       

      
        
           

        

          15

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