Document:

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                                                                     EXHIBIT 4.6

                                                                    NO. PPW - __

NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK OF THE COMPANY ISSUABLE UPON
ITS EXERCISE HAVE BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR TRANSFERRED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
SECURITIES UNDER THE ACT AND APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

                           MOBILITY ELECTRONICS, INC.
                            (A DELAWARE CORPORATION)

                   WARRANT TO PURCHASE SHARES OF COMMON STOCK

         THIS CERTIFIES THAT, for value received, _____________ or his
registered successors or assigns (hereinafter, the "Holder"), is entitled to
purchase, subject to the conditions set forth below, at any time or from time to
time during the Exercise Period (as defined in subsection 1.1 below),
_____________________ (________) fully paid and non-assessable shares (the
"Shares") of the common stock, par value $0.01 per share (the "Common Stock"),
of Mobility Electronics, Inc., a Delaware corporation (the "Company"), at a
purchase price of $1.02 per share, subject to adjustment as provided in Section
4 below (the "Warrant Price").

1. EXERCISE OF WARRANT

         The terms and conditions upon which this Warrant may be exercised, and
the Common Stock covered hereby may be purchased, are as follows:

         1.1 Method Of Exercise. The Holder of this Warrant may, at any time, or
from time to time, on or after the date hereof and prior to January 13, 2008
(the "Exercise Period"), exercise in whole or in part the purchase rights
evidenced by this Warrant. Such exercise shall be effected by: (a) the surrender
of the Warrant, together with a duly executed copy of the form of subscription
attached hereto, to the Chief Financial Officer of the Company at the Company's
Scottsdale, Arizona office; and (ii) the payment to the Company, by wire
transfer or check, of an amount equal to the aggregate Warrant Price for the
number of Shares for which the purchase rights hereunder are being exercised.

         1.2 Satisfaction with Requirements of Securities Act of 1933.
Notwithstanding anything herein to the contrary, each and every exercise of this
Warrant is contingent upon the Company's satisfaction that the issuance of
Common Stock upon the exercise is exempt from the requirements of the Securities
Act of 1933, as amended (the "Act") and all applicable state securities laws.
The Holder of this Warrant agrees to execute any and all documents determined
necessary by the Company's counsel to effect the exercise of this Warrant.

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         1.3 Issuance Of Shares and New Warrant. In the event the purchase
rights evidenced by this Warrant are exercised in whole or in part, one or more
certificates for the purchased Shares shall be issued as soon as practicable
thereafter to the person exercising such rights. Such Holder shall also be
issued at such time a new Warrant representing the number of Shares (if any) for
which the purchase rights under this Warrant remain unexercised and continuing
in force and effect.

2. TRANSFERS

         2.1 Transfers. Subject to Section 7 below, this Warrant and all rights
hereunder are transferable in whole or in part by the Holder. The transfer shall
be recorded on the books of the Company upon the surrender of this Warrant,
properly endorsed, to the Chief Financial Officer of the Company at the
Company's Scottsdale, Arizona office and the payment to the Company of all
transfer taxes and other governmental charges imposed on such transfer. In the
event of a partial transfer, the Company shall issue to the several Holders one
or more appropriate new Warrants.

         2.2 Registered Holder. Each Holder agrees that until such time as any
transfer pursuant to subsection 2.1 is recorded on the books of the Company, the
Company may treat the registered Holder of this Warrant as the absolute owner;
provided that nothing herein affects any requirement that transfer of any
Warrant or share of Common Stock issued or issuable upon the exercise thereof by
subject to securities law compliance.

         2.3 Form Of New Warrants. All Warrants issued in connection with
transfers of this Warrant shall bear the same date as this Warrant and shall be
substantially identical in form and provision to this Warrant, with the possible
exception of the number of Shares purchasable thereunder.

3. FRACTIONAL SHARES

         Notwithstanding that the number of Shares purchasable upon the exercise
of this Warrant may have been adjusted pursuant to the terms hereof, the Company
shall nonetheless not be required to issue fractions of Shares upon exercise of
this Warrant or to distribute certificates that evidence fractional shares nor
shall the Company be required to make any cash payments in lieu thereof upon
exercise of this Warrant. Holder hereby waives any right to receive fractional
Shares. If a fractional Share shall result from adjustments in the number of
Shares purchasable hereunder, the number of Shares purchasable hereunder shall,
on an aggregate basis taking into account all adjustments hereunder from the
date of issuance of this Warrant, be rounded up to the next whole number.

4. ANTIDILUTION PROVISIONS

         The provisions of this Section 4 shall apply in the event that any of
the events described in this Section 4 shall occur with respect to the Common
Stock at any time on or after the original issuance date of this Warrant:

         4.1 Stock Splits And Combinations. If the Company shall at any time
subdivide or combine its outstanding shares of Common Stock, this Warrant shall,
after that subdivision or

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combination, evidence the right to purchase the number of shares of Common Stock
that would have been issuable as a result of that change with respect to the
Shares which were purchasable under this Warrant immediately before that
subdivision or combination. If the Company shall at any time subdivide the
outstanding shares of Common Stock, the Warrant Price then in effect immediately
before that subdivision shall be proportionately decreased, and, if the Company
shall at any time combine the outstanding shares of Common Stock, the Warrant
Price then in effect immediately before that combination shall be
proportionately increased. Any adjustment under this Section shall become
effective at the time that such subdivision or combination becomes effective.

         4.2 Reclassification, Exchange and Substitution. If the Common Stock
issuable upon exercise of this Warrant shall be changed into the same or a
different number of shares of any other class or classes of stock, whether by
capital reorganization, reclassification, or otherwise (other than a subdivision
or combination of shares provided for above), the Holder of this Warrant shall,
on its exercise, be entitled to purchase for the same aggregate consideration,
in lieu of the Common Stock which the Holder would have become entitled to
purchase but for such change, the number of shares of such other class or
classes of stock equivalent to the number of shares of Common Stock that would
have been subject to purchase by the Holder on exercise of this Warrant
immediately before that change.

         4.3 Reorganizations, Mergers, Consolidations Or Sale Of Assets. If at
any time there shall be a capital reorganization of the Common Stock (other than
a combination, reclassification, exchange, or subdivision of shares provided for
elsewhere above) then, as a part of such reorganization, lawful provision shall
be made so that the Holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified in this
Warrant and upon payment of the Warrant Price then in effect, the number of
shares of Common Stock or other securities or property of the Company to which a
holder of the Common Stock deliverable upon exercise of this Warrant would have
been entitled in such capital reorganization if this Warrant had been exercised
immediately before that capital reorganization. In any such case, appropriate
adjustment (as determined in good faith by the Company's Board of Directors)
shall be made in the application of the provisions of this Warrant with respect
to the rights and interests of the Holder of this Warrant after the
reorganization to the end that the provisions of this Warrant (including
adjustment of the Warrant Price then in effect and number of Shares purchasable
upon exercise of this Warrant) shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

         4.4 Common Stock Dividends; Distributions. In the event the Company
should at any time prior to the expiration of this Warrant fix a record date for
the determination of the holders of Common Stock entitled to receive a dividend
or other distribution payable in additional shares of Common Stock or other
securities or rights convertible into or entitling the holder thereof to
receive, directly or indirectly, additional shares of Common Stock (hereinafter
referred to as the "Common Stock Equivalents") without payment of any
consideration by such holder for the additional shares of Common Stock or Common
Stock Equivalents (including the additional shares of Common Stock issuable upon
conversion or exercise thereof), then, as of such record date (or the date of
such distribution, split or subdivision if no record date is fixed), the Warrant
Price shall be appropriately decreased and the number of shares of Common Stock

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issuable upon exercise of the Warrant shall be appropriately increased in
proportion to such increase of outstanding shares.

         4.5 Adjustments of Other Distributions. In the event the Company shall
declare a distribution payable in securities of other persons, evidences of
indebtedness issued by the Company or other persons, assets (excluding cash
dividends) or options or rights not referred to in subsection 4.4, then, in each
such case for the purpose of this subsection 4.5, upon exercise of this Warrant
the Holder hereof shall be entitled to a proportionate share of any such
distribution as though such Holder was the holder of the number of shares of
Common Stock into which this Warrant may be exercised as of the record date
fixed for the determination of the holders of Common Stock entitled to receive
such distribution.

         4.6 Certificate as to Adjustments. In the case of each adjustment or
readjustment of the Warrant Price pursuant to this Section 4, the Company will
promptly compute such adjustment or readjustment in accordance with the terms
hereof and cause a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based,
to be delivered to the Holder of this Warrant. The Company will, upon the
written request at any time of the Holder of this Warrant, furnish or cause to
be furnished to such Holder a certificate setting forth: (a) such adjustments
and readjustments; (b) the Warrant Price at the time in effect; and (c) the
number of shares of Common Stock issuable upon exercise of the Warrant and the
amount, if any, of other property at the time receivable upon the exercise of
the Warrant.

         4.7 Reservation of Stock Issuable Upon Exercise. The Company shall at
all times reserve and keep available out of its authorized but unissued shares
of Common Stock solely for the purpose of effecting the exercise of this Warrant
such number of shares of Common Stock as shall from time to time be sufficient
to effect the exercise of this Warrant and if at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to effect
the exercise of this Warrant, in addition to such other remedies as shall be
available to the Holder of this Warrant, the Company will use its best efforts
to take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purposes.

5. RIGHTS PRIOR TO EXERCISE OF WARRANT

         This Warrant does not entitle the Holder to any of the rights of a
stockholder of the Company. If, however, at any time prior to the expiration of
this Warrant and prior to its exercise, any of the following events shall occur:
(a) the Company shall declare any dividend payable in any securities upon the
shares of Common Stock or make any distribution (other than a cash dividend) to
the holders of shares of Common Stock; (b) the Company shall offer to all of the
holders of shares of Common Stock any additional shares of Common Stock or
securities convertible into or exchangeable for shares of Common Stock or any
right to subscribe for or purchase any thereof; or (c) a dissolution,
liquidation or winding up of the Company (other than in connection with a
consolidation, merger, sale, transfer or lease of all or substantially all of
its property, assets, and business as an entirety) shall be proposed and action
by the Company with respect thereto has been approved by the Company's Board of
Directors (each, a "Material Action"), the Company shall give notice in writing
of such Material Action to the Holder at its

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last address as it shall appear on the Company's records at least twenty (20)
days' prior to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled to such
dividends, distribution, or subscription rights, or for the determination of
stockholders entitled to vote on the Material Action. Such notice shall specify
such record date or the date of closing the transfer books, as the case may be.
Failure to publish, mail or receive such notice or any defect therein or in the
publication or mailing thereof shall not affect the validity of the Material
Action.

         Each person in whose name any certificate for Shares is to be issued
shall for all purposes be deemed to have become the holder of record of such
Shares on the date on which this instrument was surrendered and payment of the
Warrant Price was made, irrespective of the date of delivery of such stock
certificate, except that, if the date of such surrender and payment is a date
when the stock transfer books of the Company are closed, such person shall be
deemed to have become the holder of such Shares at the close of business on the
next succeeding date on which the stock transfer books are open.

6. SUCCESSORS AND ASSIGNS; TRANSFEREES

         The terms and provisions of this Warrant shall inure to the benefit of,
and be binding upon, the Company and the holder thereof and their respective
successors and permitted assigns and other transferees. Any successor, assign or
other transferee of this Warrant, by its acceptance thereof, agrees to be bound
by the terms of this Warrant with the same force and effect as if a signatory
thereto.

7. RESTRICTED SECURITIES

         In order to enable the Company to comply with the Securities Act and
applicable state laws, the Company may require the Holder as a condition of the
transfer or exercise of this Warrant, to give written assurance satisfactory to
the Company that the Warrant, or in the case of an exercise hereof the Shares
subject to this Warrant, are being acquired for his or her own account, for
investment only, with no view to the distribution of the same, and that any
disposition of all or any portion of this Warrant or the Shares issuable upon
the due exercise of this Warrant shall not be made, unless made in compliance
with the requirements of the Act and applicable securities laws of any State or
other jurisdiction. Holder acknowledges that this Warrant is, and each of the
shares of Common Stock issuable upon the due exercise hereof will be, a
restricted security, and that the certificates evidencing securities issued to
the Holder upon exercise of this Warrant will bear a legend substantially
similar to the legend set forth on the front page of this Warrant.

8. LOSS OR MUTILATION

         Upon receipt by the Company of satisfactory evidence of the ownership,
and the loss, theft, destruction, or mutilation, of any Warrant, and (i) in the
case of loss, theft, or destruction, upon receipt by the Company of indemnity
satisfactory to it, or (ii) in the case of mutilation, upon receipt of such
Warrant and upon surrender and cancellation of such Warrant, the Company shall
execute and deliver in lieu thereof a new Warrant representing the right to
purchase an equal number of shares of Common Stock.

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9. NOTICES

         All notices, requests, demands and other communications under this
Warrant shall be in writing and shall be deemed to have been duly given on the
date of service if served personally on the party to whom notice is to be given,
or on the date of mailing if mailed to the party to whom notice is to be given,
by first class mail, registered or certified, postage prepaid, and properly
addressed as follows: if to the Holder, at his address as shown in the Company
records; and if to the Company, at its Scottsdale, Arizona office, attention:
Chief Financial Officer. Any party may change its address for purposes of this
Section by giving the other party written notice of the new address in the
manner set forth above.

10. GOVERNING LAW

         This Warrant and any dispute, disagreement or issue of construction of
interpretation arising hereunder whether relating to its execution, its
validity, the obligations provided herein or performance shall be governed or
interpreted according to the internal laws of the State of Delaware without
regard to conflicts of law.

        DATED: January 14, 2003

                                          MOBILITY ELECTRONICS, INC.

                                          By:
                                             -----------------------------------
                                             Charles R. Mollo,
                                             Chief Executive Officer

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                                  SUBSCRIPTION

MOBILITY ELECTRONICS, INC.
Attn: Chief Financial Officer
17800 N. Perimeter Drive, Suite 200
Scottsdale, Arizona  85255

Ladies and Gentlemen:

         The undersigned, _____________________________________________________,
hereby elects to purchase, pursuant to the provisions of the foregoing Warrant
held by the undersigned, ____________ shares (the "Shares") of the common stock,
par value $0.01 per share (the "Common Stock"), of Mobility Electronics, Inc., a
Delaware corporation.

         Payment of the purchase price for the Shares being purchased, as
required under such Warrant, accompanies this subscription.

         The undersigned hereby represents and warrants that the undersigned is
acquiring the Shares for the account of the undersigned and not for resale or
with a view to distribution of such Shares or any part hereof; that the
undersigned is fully aware of the transfer restrictions affecting restricted
securities under the pertinent securities laws; and the undersigned understands
that the Shares purchased hereby are restricted securities and that the
certificate or certificates evidencing the same will bear a legend to that
effect.

        DATED:                 .
              -----------------

                                       Signature:
                                                 -------------------------------
                                       Printed:
                                               ---------------------------------

                                       Address:
                                               ---------------------------------

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                                                                   Exhibit 10.1

                               BOOKS24X7.COM, INC.

                             1994 STOCK OPTION PLAN
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                   <C>
1.     Purpose of the Plan............................................1
2.     Administration.................................................1
3.     Option Shares..................................................1
4.     Authority to Grant Options.....................................2
5.     Eligibility....................................................2
6.     Option Price...................................................2
7.     Duration of Options............................................3
8.     Amount Exercisable.............................................3
9.     Exercise of Options............................................3
10.    Transferability of Options.....................................4
11.    Termination of Employment or Death of Optionee.................4
12.    Repurchase Rights..............................................5
13.    Requirements of Law............................................5
14.    No Rights as Shareholder.......................................6
15.    Employment Obligation..........................................6
16.    Changes in the Company's Capital Structure.....................6
17.    Amendment or Termination of Plan...............................7
18.    Written Agreement..............................................7
19.    Effective Date and Duration of the Plan........................8
20.    Use of Stock to Satisfy Tax Withholding Requirement............8
</TABLE>
<PAGE>
                               BOOKS24X7.COM, INC.

                             1994 STOCK OPTION PLAN

1.    Purpose of the Plan.

      This 1994 Stock Option Plan (the "Plan") of Books24x7.com, Inc. (the
"Company") is designed to provide additional incentive to present and future
officers and other key employees of, and consultants and advisors to, the
Company and its parent and subsidiary corporations by affording them an
opportunity to acquire a (or increase their) proprietary interest in the Company
through the acquisition of shares of its Common Stock upon the exercise of an
option or options ("Option" or "Options") granted hereunder. By encouraging
stock ownership by such officers, other key employees and consultants and
advisors, the Company seeks to attract and retain in its employ persons of
exceptional competence and seeks to furnish an added incentive for them to
increase their efforts of behalf of the Company.

2.    Administration.

      The Plan shall be administered by the Board of Directors of the Company
(the "Board"). Except as otherwise provided in the Plan, all questions of
interpretation and application of the Plan, of any Options granted hereunder and
of the value of shares of Common Stock subject to an Option shall be subject to
the determination, which shall be final and binding, of a majority of the Board;
provided, however, that the Board shall not modify (within the meaning of
Section 424(h) of the Internal Revenue Code of 1986, as amended (the "Code")),
extend or renew any Option which is an incentive stock option ("ISO") as defined
in Section 422 of the Code without the consent of the optionee.

      Subject to the provisions of this paragraph, the Board may provide that a
committee designated by the Board (the "Committee") shall have and may exercise,
to the extent provided by the Board, all the powers and authority of the Board
in the administration of the Plan. On and after the date the Company first
registers its Common Stock under Section 12 of the Securities Exchange Act of
1934 (the "Exchange Act"), any Committee shall be composed solely of two or more
directors of the Company, each of whom is a Non-Employee Director as defined in
Rule 16b-3(b)(3)(i) under the Exchange Act.

3.    Option Shares.

      The stock subject to the Options and other provisions of the Plan shall be
shares of the Company's common stock, $.01 par value (the "Common Stock"). The
aggregate number of shares of Common Stock which may be issued under Options
shall not exceed in the aggregate 6,717,103 shares; provided, however, that the
class and aggregate number of shares which may be issued under Options shall be
subject to adjustment in accordance with the provisions of paragraph 16 hereof.
Such shares may be treasury shares or authorized but unissued shares.

      In the event that any outstanding Option for any reason shall expire or
terminate prior to exercise, the shares of Common Stock allocable to the
unexercised portion of such Option may again be subject to an Option under the
Plan. Without limiting the generality of the foregoing,

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the Board may, in its discretion, grant a replacement Option to an optionee in
exchange for the cancellation of an outstanding Option (or all or part of the
unexercised portion thereof) held by such optionee (regardless of whether the
option price of such outstanding Option is greater or less than the fair market
value of the shares of Common Stock on the date the Option is cancelled), which
replacement Option may have an option price which is less than, equal to or
greater than the option price of the cancelled Option.

4.    Authority to Grant Options.

      Except as otherwise provided in the Plan, the Board may grant Options from
time to time to such eligible employees of and consultants and advisors to the
Company or any parent corporation or subsidiary corporation as it shall
determine. Subject to any applicable limitations set forth in the Plan or
established, from time to time, by the Board and except as otherwise provided in
the Plan, the number of shares of Common Stock to be covered by any Option shall
be as determined by the Board.

5.    Eligibility.

      Except as otherwise provided in the Plan, the individuals who shall be
eligible to receive Options shall be such key employees (including officers,
whether or not they are directors, and directors who are also employees) of, and
such consultants and advisors who render bona fide services, other than services
in connection with the offer or sale of securities in a capital-raising
transaction, to, the Company or any parent corporation or subsidiary corporation
as the Board shall determine from time to time. No consultant or advisor who is
not also a key employee of the Company, or a parent corporation or a subsidiary
corporation, may be granted an Option which is an ISO.

      Unless the context requires otherwise, the term "subsidiary corporation"
shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the time of granting of an
Option, each of the corporations other than the last corporation in the unbroken
chain owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain. Unless the
context requires otherwise, the term "parent corporation" shall mean any
corporation (other than the Company) in an unbroken chain of corporations ending
with the Company if, at the time of granting of an Option, each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

6.    Option Price.

      Except as otherwise provided in the Plan, the price at which shares may be
purchased pursuant to Options shall be specified by the Board at the time the
Option is granted; provided, however, that the option price of any Option which
is an ISO shall not be less than one hundred percent (100%) of the fair market
value of the shares of Common Stock on the date the Option is granted, such fair
market value to be determined in accordance with procedures to be established by
the Board; provided further, that the option price of any Option granted to any
individual who, at the time such Option is granted, owns (or is considered
pursuant to Section 424(d) of the

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<PAGE>
Code to own) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of his employer corporation or of any of
its subsidiary corporations or parent corporations, shall be at least one
hundred ten percent (110%) of the fair market value of the stock subject to such
Option at the time such Option is granted; and provided further, that the option
price shall be not less than the greater of (a) the par value of the Common
Stock and (b) eighty-five percent (85%) of the fair market value of the shares
of Common Stock on the date the Option is granted.

7.    Duration of Options.

      The Board in its discretion may provide that an Option shall be
exercisable during any specified period of time from the date such Option is
granted; provided, however, that no Option which is an ISO shall be exercisable
after the expiration of ten (10) years from the date such Option is granted; and
provided further, that no Option which is subject to the second proviso to
paragraph 6 shall be exercisable after the expiration of five (5) years from the
date such Option is granted.

8.    Amount Exercisable.

      Each Option may be exercised, so long as it is valid and outstanding, from
time to time in part or as a whole, subject to any limitations with respect to
the number of shares for which the Option may be exercised at a particular time
and to such other conditions as the Board in its discretion may specify upon
granting the Option. The Board in its discretion may accelerate the vesting of
any Option.

9.    Exercise of Options.

      Options shall be exercised by the delivery of written notice to the
Company setting forth the number of shares with respect to which the Option is
to be exercised, together with (a) cash in, or a check, bank draft or postal or
express money order payable to the order of the Company for, an amount equal to
the option price of such shares, or (b) with the consent of the Company, shares
of Common Stock of the Company having a fair market value equal to the option
price of such shares, or (c) with the consent of the Company, a combination of
(a) and (b), and specifying the address to which the certificates for such
shares are to be mailed. For the purpose of the preceding sentence, the fair
market value of the shares of Common Stock so delivered to the Company shall be
(a) if the principal United States market for the Common Stock of the Company is
an exchange, the mean of the high and low prices at which the Company's Common
Stock was sold on the most recent date that the Common Stock was sold prior to
the date of exercise of the Option, as reported in the consolidated transaction
reporting system or, if not so reported, as reported on the principal exchange
market for the Common Stock; (b) if the principal United States market for the
Common Stock of the Company is the NASDAQ National Market, the closing price for
the Company's Common Stock on the most recent date on which the Common Stock was
traded in such market prior to the date of exercise of the Option, as reported
by the NASDAQ System; (c) if the principal United States market for the Common
Stock of the Company is not an exchange or the NASDAQ National Market but the
Common Stock is regularly quoted in the automated quotation system of a
registered securities association, the mean of the bid and asked prices for the
Common Stock quoted in such automated quotation

                                      -3-
<PAGE>
system for the most recent date on which such prices were quoted prior to the
date of exercise of the Option; (d) in all other cases, the fair market value as
determined in accordance with such procedures as may be established by the
Board. As promptly as practicable after receipt of such written notification and
payment, the Company shall deliver to the optionee certificates for the number
of shares with respect to which such Option has been so exercised, issued in the
optionee's name; provided, however, that such delivery shall be deemed effected
for all purposes when a stock transfer agent of the Company shall have deposited
such certificates in the United States mail, addressed to the optionee, at the
address specified pursuant to this paragraph.

10.   Transferability of Options.

      Options shall not be transferable by the optionee otherwise than by will
or under the laws of descent and distribution and shall be exercisable, during
his lifetime, only by him (or, in the case of an incompetent former employee,
his guardians or members of a committee or other persons duly authorized by law
to administer his estate or assets).

11.   Termination of Employment or Death of Optionee.

      Except as may be otherwise expressly provided herein or as may be provided
by the Board upon the grant of any Option hereunder, Options shall terminate on
the earlier of

      (i)   the date of expiration thereof, or

      (ii) (a) in the case of an Option granted to a key employee of the Company
or a parent corporation or a subsidiary corporation, three (3) months after
termination of the employment relationship between the Company and the optionee
other than by death or retirement in good standing for reasons of disability
(within the meaning of Section 22(e)(3) of the Code), or (b) in the case of an
Option granted to a consultant or advisor who is not a key employee of the
Company or a parent corporation or a subsidiary corporation, three (3) months
after the optionee ceases to render bona fide services to the Company or a
parent corporation or a subsidiary corporation.

      The employment relationship between the Company and the optionee shall be
deemed to continue intact while the optionee is on military leave, sick leave or
other bona fide leave of absence (such as temporary employment by the
Government) if the period of such leave does not exceed ninety (90) days, or, if
longer, so long as the optionee's right to re-employment with the Company is
guaranteed either by statute or by contract. Where the period of leave exceeds
ninety (90) days and where the optionee's right to re-employment is not
guaranteed either by statute or by contract, the employment relationship will be
deemed to have terminated on the ninety-first (91st) day of such leave.

      In the event of the death of the holder of an Option while in the employ
of the Company (or within three (3) months after termination of such employment)
and before the date of expiration of such Option, such Option shall terminate on
the earlier of such date of expiration or one year following the date of such
death. After the death of the optionee, his executors or administrators, or any
person or persons to whom his Option may be transferred by will or by the laws
of descent and distribution, shall have the right prior to the termination of
such Option to exercise the Option to the extent the optionee was entitled to
exercise such Option immediately

                                      -4-
<PAGE>
prior to his death. If, before the date of expiration of the Option, the
optionee shall be retired in good standing for reasons of disability (within the
meaning of Section 22(e)(3) of the Code), the Option shall terminate on the
earlier of such date of expiration or one year after the date of such
retirement. In the event of such retirement, the optionee (or his executors or
administrators or any person or persons to whom his Option may be transferred by
will or by the laws of descent and distribution or, if he is incompetent, his
guardians or members of a committee or other persons duly authorized by law to
administer his estate or assets) shall have the right prior to the termination
of such Option to exercise the Option to the extent to which he was entitled to
exercise such Option immediately prior to such retirement.

      An employment relationship between the Company and the optionee shall be
deemed to exist during any period in which the optionee is employed by the
Company or by any parent corporation or subsidiary corporation.

12.   Repurchase Rights.

      The Board may, in its discretion, provide upon the grant of any Option
hereunder that the Company shall have an option (the "Repurchase Option") to
repurchase all or any number of the shares purchased upon exercise of such
Option, such Repurchase Option to be subject to such conditions, if any, as the
Board in its discretion may provide upon the grant of such option. The
repurchase price per share payable by the Company shall be such amount or be
determined by such formula as is fixed by the Board at the time the Option for
the shares subject to repurchase is granted. Shares purchased upon the exercise
of an Option which are subject to repurchase by the Company may be subjected to
such restrictions on transfer as the Board may, in its discretion, provide at
the time of the granting of such Option. In the event the Board shall grant
Options subject to the Company's Repurchase Option, the certificates
representing the shares purchased pursuant to such Option shall carry a legend
satisfactory to counsel for the Company referring to the Company's Repurchase
Option and, if such shares are subject to restrictions on transfer, to such
restrictions.

13.   Requirements of Law.

      The Company shall not be required to sell or issue any shares under any
Option if the issuance of such shares shall constitute a violation by the
optionee or by the Company of any provisions of any law or regulation of any
governmental authority or securities exchange. In addition, in the event that
upon exercise of any Option the sale by the Company of the shares issuable on
exercise of the Option is not registered under the Securities Act of 1933 (as
now in effect or hereafter amended), the Company shall not be required to issue
such shares unless the Company has received such representations and covenants
from the optionee as counsel for the Company considers necessary or advisable to
comply with the Securities Act of 1933 and the Company may imprint on the
certificates for the shares with respect to which such Option is exercised such
legend as counsel for the Company considers necessary or advisable to comply
with the Securities Act of 1933.

      The Company may, but shall in no event be obligated to, register any
securities covered hereby pursuant to the Securities Act of 1933 (as now in
effect or as hereafter amended); and in the event any shares are so registered
the Company may remove any legend on certificates

                                      -5-
<PAGE>
representing such shares. The Company shall not be obligated to take any other
affirmative action in order to cause the exercise of an Option or the issuance
of shares pursuant thereto to comply with any law or regulation of any
governmental authority or securities exchange.

14.   No Rights as Shareholder.

      No optionee shall have rights as a shareholder with respect to shares
covered by his Option until the date of issuance of a stock certificate for such
shares; and, except as otherwise provided in paragraph 16 hereof, no adjustment
for dividends, or otherwise, shall be made if the record date therefor is prior
to the date of issuance of such certificate.

15.   Employment Obligation.

      The granting of any Option shall not impose upon the Company or any parent
corporation or subsidiary corporation any obligation to employ or continue to
employ any optionee; and the right of the Company or any parent corporation or
subsidiary corporation to terminate the employment of any officer or other
employee shall not be diminished or affected by reason of the fact that an
Option has been granted to him.

16.   Changes in the Company's Capital Structure.

      The existence of outstanding Options shall not affect in any way the right
or power of the Company or its shareholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Common Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any other corporate act or
proceeding, whether of a similar character or otherwise.

      If the Company shall effect a subdivision or consolidation of shares or
other capital readjustment, the payment of a stock dividend, or other increase
or reduction of the number of shares of the Common Stock outstanding, without
receiving compensation therefor in money, services or property, then (i) the
number, class, and per share price of shares of stock subject to outstanding
Options hereunder shall be appropriately adjusted in such a manner as to entitle
an optionee to receive upon exercise of an Option, for the same aggregate cash
consideration, the same total number and class of shares as he would have
received as a result of the event requiring the adjustment had he exercised his
Option in full immediately prior to such event; and (ii) the number and class of
shares with respect to which Options may be granted under the Plan shall be
adjusted by substituting for the total number of shares of Common Stock then
reserved that number and class of shares of stock that would have been received
by the owner of an equal number of outstanding shares of Common Stock as the
result of the event requiring the adjustment.

      After a merger of one or more corporations into the Company, or after a
consolidation of the Company and one or more corporations in which the Company
shall be the surviving corporation, each holder of an outstanding Option shall,
at no additional cost, be entitled upon exercise of such Option to receive
(subject to any required action by shareholders) in lieu of the number of shares
as to which such Option shall then be so exercisable, the number and class of

                                      -6-
<PAGE>
shares of stock or other securities to which such holder would have been
entitled pursuant to the terms of the agreement of merger or consolidation if,
immediately prior to such merger or consolidation, such holder had been the
holder of record of a number of shares of Common Stock equal to the number of
shares as to which such Option shall be so exercised.

      If the Company is merged into or consolidated with another corporation
under circumstances where the Company is not the surviving corporation, of if
the Company is liquidated, or sells or otherwise disposes of substantially all
its assets to another corporation while unexercised Options remain outstanding
under the Plan, (i) subject to the provisions of clause (ii) below, after the
effective date of such merger, consolidation or sale, as the case may be, each
holder of an outstanding Option shall be entitled, upon exercise of such Option,
to receive, in lieu of shares of Common Stock, shares of such stock or other
securities, cash or property as the holders of shares of Common Stock received
pursuant to the terms of the merger, consolidation or sale; or (ii) all
outstanding Options may be cancelled by the Board as of the effective date of
any such merger, consolidation, liquidation or sale provided that (x) notice of
such cancellation shall be given to each holder of an Option and (y) each holder
of an Option shall have the right to exercise such Option to the extent that the
same is then exercisable or, if the Board shall have accelerated the time for
exercise of all unexercised and unexpired Options, in full during the 30-day
period preceding the effective date of such merger, consolidation, liquidation
or sale.

      Except as hereinbefore expressly provided, the issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, for cash, property or services, either upon direct sale or upon the
exercise of rights or warrants to subscribe therefor, or upon conversion of
shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Common Stock then subject to
outstanding Options.

17.   Amendment or Termination of Plan.

      The Board may modify, revise or terminate this Plan at any time and from
time to time, except that the class of persons eligible to receive Options shall
not be changed and the aggregate number of shares issuable under Options shall
not be increased, other than by operation of paragraph 16 hereof, without the
consent of the shareholders of the Company; provided, however, that no amendment
shall modify (within the meaning of Section 424(h) of the Code) any Option which
is an ISO outstanding on the date of such amendment without the consent of the
optionee.

18.   Written Agreement.

      Each Option granted hereunder shall be embodied in a written option
agreement which shall be subject to the terms and conditions prescribed above
and shall be signed by the President, any Vice President or the Treasurer of the
Company for and in the name and on behalf of the Company. Such an option
agreement shall contain such other provisions as the Board in its discretion
shall deem advisable.

                                      -7-
<PAGE>
19.   Effective Date and Duration of the Plan.

      The Plan became effective on December 5, 1994. Options may not be granted
under the Plan more than ten (10) years after said effective date. The Plan
shall terminate (i) when the aggregate number of shares of Common Stock which
may be issued under Options shall have been issued upon the exercise of Options
or (ii) by action of the Board pursuant to paragraph 17 hereof, whichever shall
first occur.

20.   Use of Stock to Satisfy Tax Withholding Requirement.

      An optionee may elect, subject to the consent of the Company, to direct
the Company to withhold from the shares to be issued upon exercise of an Option
(or to tender already-owned shares of Common Stock) up to such number of shares
as would be necessary (based upon the fair market value of the Common Stock at
the time such shares are withheld or tendered) to meet the required tax
withholding on such Option exercise; provided, however, that any such election
by a director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of
the Company made on or after the date the Company first registers its Common
Stock under Section 12 of the Exchange Act shall be subject to the approval of
the Board or a Committee composed solely of two or more directors of the
Company, each of whom is a Non-Employee Director.

                                      -8-

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