Document:

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    EXHIBIT
      4.0

    

    SUB
      SURFACE WASTE MANAGEMENT OF DELAWARE, INC.

    

    2007-I
      EMPLOYEE STOCK INCENTIVE PLAN

    

    As
      Adopted January 19, 2007

    

    

    
      	1.	
              PURPOSE.

            

    

    

    The
      purpose of this Plan is to provide incentives to attract, retain and motivate
      eligible persons whose present and potential contributions are important to
      the
      success of the Company, its Parent and Subsidiaries, by offering them an
      opportunity to participate in the Company’s future performance through awards of
      Options, Restricted Stock and Stock Bonuses. Capitalized terms not defined
      in
      the text are defined in Section 2.

    

    
      	2.	
              DEFINITIONS.

            

    

    

    As
      used
      in this Plan, the following terms will have the following meanings:

    

    “AWARD”
means
      any award under this Plan, including any Option, Restricted Stock or Stock
      Bonus.

    

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

    

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

    

    “CAUSE”
means
      any cause, as defined by applicable law, for the termination of a Participant’s
      employment with the Company or a Parent or Subsidiary of the
      Company.

    

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

    

    “COMPANY”
means
      Sub Surface Waste Management of Delaware, Inc., a Delaware corporation, or
      any
      successor corporation.

    

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

    

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

    

    “EXERCISE
      PRICE”
means
      the price at which a holder of an Option may purchase the Shares issuable upon
      exercise of the Option.

    

    “FAIR
      MARKET VALUE”
means,
      as of any date, the value of a share of the Company’s Common Stock determined as
      follows:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              (a)

            	
              if
                such Common Stock is publicly traded and is then listed on a national
                securities exchange, its closing price on the date of determination
                on the
                principal national securities exchange on which the Common Stock
                is listed
                or admitted to trading as reported in The Wall Street
                Journal;

            

    

    

    
      	 	
              (b)

            	
              if
                such Common Stock is quoted on the NASDAQ National Market, its closing
                price on the NASDAQ National Market on the date of determination
                as
                reported in The Wall Street
                Journal;

            

    

    

    
      	 	
              (c)

            	
              if
                such Common Stock is publicly traded but is not listed or admitted
                to
                trading on a national securities exchange, the average of the closing
                bid
                and asked prices on the date of determination as reported by Bloomberg,
                L.P.;

            

    

    

    
      	 	
              (d)

            	
              in
                the case of an Award made on the Effective Date, the price per share
                at
                which shares of the Company’s Common Stock are initially offered for sale
                to the public by the Company’s underwriters in the initial public offering
                of the Company’s Common Stock pursuant to a registration statement filed
                with the SEC under the Securities Act;
                or

            

    

    

    
      	 	
              (e)

            	
              if
                none of the foregoing is applicable, by the Board in good
                faith.

            

    

    

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

    

    “OPTION”
means
      an award of an option to purchase Shares pursuant to Section 6.

    

    “PARENT”
means
      any corporation (other than the Company) in an unbroken chain of corporations
      ending with the Company if each of such 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.

    

    “PARTICIPANT”
means
      a
      person who receives an Award under this Plan.

    

    “PERFORMANCE
      FACTORS”
means
      the factors selected by the Board, in its sole and absolute discretion, from
      among the following measures to determine whether the performance goals
      applicable to Awards have been satisfied:

    

    
      	 	 	
              (a)

            	
              Net
                revenue and/or net revenue growth;

            

    

    

    
      	 	 	
              (b)

            	
              Earnings
                before income taxes and amortization and/or earnings before income
                taxes
                and amortization growth;

            

    

    

    
      	 	 	
              (c)

            	
              Operating
                income and/or operating income
                growth;

            

    

    

    
      	 	 	
              (d)

            	
              Net
                income and/or net income growth;

            

    

    

    
      	 	 	
              (e)

            	
              Earnings
                per share and/or earnings per share
                growth;

            

    

    

    
      	 	 	
              (f)

            	
              Total
                stockholder return and/or total stockholder return
                growth;

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	 	
              (g)

            	
              Return
                on equity;

            

    

    

    
      	 	 	
              (h)

            	
              Operating
                cash flow return on income;

            

    

    

    
      	 	 	
              (i)

            	
              Adjusted
                operating cash flow return on
                income;

            

    

    

    
      	 	 	
              (j)

            	
              Economic
                value added; and

            

    

    

    
      	 	 	
              (k)

            	
              Individual
                confidential business objectives.

            

    

    

    “PERFORMANCE
      PERIOD”
means
      the period of service determined by the Board, not to exceed five years, during
      which years of service or performance is to be measured for Restricted Stock
      Awards or Stock Bonuses.

    

    “PLAN”
means
      this Sub Surface Waste Management of Delaware, Inc. 2007-I Employee Stock
      Incentive Plan, as amended from time to time.

    

    “RESTRICTED
      STOCK AWARD”
means
      an award of Shares pursuant to Section 7.

    

    “SEC”
means
      the Securities and Exchange Commission.

    

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

    

    “SHARES”
means
      shares of the Company’s Common Stock reserved for issuance under this Plan, as
      adjusted pursuant to Sections 3 and 19, and any successor security.

    

    “STOCK
      BONUS”
means
      an award of Shares, or cash in lieu of Shares, pursuant to Section
      8.

    

    “SUBSIDIARY”
means
      any corporation (other than the Company) in an unbroken chain of corporations
      beginning with the Company if 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.

    

    “TERMINATION”
or
      “TERMINATED”
means,
      for purposes of this Plan with respect to a Participant, that the Participant
      has for any reason ceased to provide services as an employee, officer, director,
      consultant, independent contractor, or advisor to the Company or a Parent or
      Subsidiary of the Company. An employee will not be deemed to have ceased to
      provide services in the case of (i) sick leave, (ii) military leave, or (iii)
      any other leave of absence approved by the Company, provided that such leave
      is
      for a period of not more than 90 days, unless reemployment upon the expiration
      of such leave is guaranteed by contract or statute or unless provided otherwise
      pursuant to a formal policy adopted from time to time by the Company and issued
      and promulgated to employees in writing. In the case of any employee on an
      approved leave of absence, the Board may make such provisions respecting
      suspension of vesting of the Award while on leave from the employ of the Company
      or a Subsidiary as it may deem appropriate, except that in no event may an
      Option be exercised after the expiration of the term set forth in the Option
      agreement. The Board will have sole discretion to determine whether a
      Participant has ceased to provide services and the effective date on which
      the
      Participant ceased to provide services (the “TERMINATION DATE”). 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “UNVESTED
      SHARES”
means
      “Unvested Shares” as defined in the Award Agreement.

    

    “VESTED
      SHARES”
means
      “Vested Shares” as defined in the Award Agreement.

    

    
      	3.	
              SHARES
                SUBJECT TO THE PLAN.

            

    

    

    3.1 Number
      of Shares Available.
      Subject
      to Sections 3.2 and 19, the total aggregate number of Shares reserved and
      available for grant and issuance pursuant to this Plan will be 10,000,000 plus
      Shares that are subject to: (a) issuance upon exercise of an Option but cease
      to
      be subject to such Option for any reason other than exercise of such Option;
      (b)
      an Award granted hereunder but forfeited or repurchased by the Company at the
      original issue price; and (c) an Award that otherwise terminates without Shares
      being issued. At all times the Company shall reserve and keep available a
      sufficient number of Shares as shall be required to satisfy the requirements
      of
      all outstanding Options granted under this Plan and all other outstanding but
      unvested Awards granted under this Plan.

    

    3.2 Adjustment
      of Shares.
      In the
      event that the number of outstanding shares is changed by a stock dividend,
      recapitalization, stock split, reverse stock split, subdivision, combination,
      reclassification or similar change in the capital structure of the Company
      without consideration, then (a) the number of Shares reserved for issuance
      under
      this Plan, (b) the Exercise Prices of and number of Shares subject to
      outstanding Options, and (c) the number of Shares subject to other outstanding
      Awards will be proportionately adjusted, subject to any required action by
      the
      Board or the stockholders of the Company and compliance with applicable
      securities laws; provided, however, that fractions of a Share will not be issued
      but will either be replaced by a cash payment equal to the Fair Market Value
      of
      such fraction of a Share or will be rounded up to the nearest whole Share,
      as
      determined by the Board.

    

    
      	4.	
              ELIGIBILITY.

            

    

    

    ISOs
      (as
      defined in Section 6 below) may be granted only to employees (including officers
      and directors who are also employees) of the Company or of a Parent or
      Subsidiary of the Company. All other Awards may be granted to employees,
      officers, directors, consultants, independent contractors and advisors of the
      Company or any Parent or Subsidiary of the Company; provided such consultants,
      contractors and advisors render bona fide services not in connection with the
      offer and sale of securities in a capital-raising transaction. 

    

    
      	5.	
              ADMINISTRATION.

            

    

    

    5.1 Board
      Authority.
      This
      Plan will be administered by the Board. Subject to the general purposes, terms
      and conditions of this Plan, the Board will have full power to implement and
      carry out this Plan. Without limitation, the Board will have the authority
      to:

    

    
      	 	
              (a)

            	 	
              construe
                and interpret this Plan, any Award Agreement and any other agreement
                or
                document executed pursuant to this
                Plan;

            

    

    

    
      	 	
              (b)

            	
              prescribe,
                amend and rescind rules and regulations relating to this Plan or
                any
                Award;

            

    

    

    
      	 	
              (c)

            	
              select
                persons to receive Awards;

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (d)

            	
              determine
                the form and terms of Awards;

            

    

    

    
      	 	
              (e)

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

            

    

    

    
      	 	
              (f)

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

            

    

    

    
      	 	
              (g)

            	
              grant
                waivers of Plan or Award
                conditions;

            

    

    

    
      	 	
              (h)

            	
              determine
                the vesting, ability to exercise and payment of
                Awards;

            

    

    

    
      	 	
              (i)

            	
              correct
                any defect, supply any omission or reconcile any inconsistency in
                this
                Plan, any Award or any Award
                Agreement;

            

    

    

    
      	 	
              (j)

            	
              determine
                whether an Award has been earned;
                and

            

    

    

    
      	 	
              (k)

            	
              make
                all other determinations necessary or advisable for the administration
                of
                this Plan.

            

    

    

    5.2 Board
      Discretion.
      Any
      determination made by the Board with respect to any Award will be made at the
      time of grant of the Award or, unless in contravention of any express term
      of
      this Plan or Award, at any later time, and such determination will be final
      and
      binding on the Company and on all persons having an interest in any Award under
      this Plan. The Board may delegate to one or more officers of the Company the
      authority to grant an Award under this Plan to Participants who are not Insiders
      of the Company.

    

    
      	6.	
              OPTIONS.

            

    

    

     The
      Board
      may grant Options to eligible persons and will determine whether such Options
      will be Incentive Stock Options within the meaning of the Code (“ISO”) or
      Nonqualified Stock Options (“NQSOS”), the number of Shares subject to the
      Option, the Exercise Price of the Option, the period during which the Option
      may
      be exercised, and all other terms and conditions of the Option, subject to
      the
      following:

    

    6.1 Form
      of Option Grant.
      Each
      Option granted under this Plan will be evidenced by an Award Agreement that
      will
      expressly identify the Option as an ISO or an NQSO (hereinafter referred to
      as
      the “STOCK OPTION AGREEMENT”), and will be in such form and contain such
      provisions (which need not be the same for each Participant) as the Board may
      from time to time approve, and which will comply with and be subject to the
      terms and conditions of this Plan.

    

    6.2 Date
      of Grant.
      The
      date of grant of an Option will be the date on which the Board makes the
      determination to grant such Option, unless otherwise specified by the Board.
      The
      Stock Option Agreement and a copy of this Plan will be delivered to the
      Participant within a reasonable time after the granting of the
      Option.

    

    6.3 Exercise
      Period.
      Options
      may be exercisable within the times or upon the events determined by the Board
      as set forth in the Stock Option Agreement governing such Option; provided,
      however, that no Option will be exercisable after the expiration of ten (10)
      years from the date the Option is granted; and provided further that no ISO
      granted to a person who directly or by attribution owns more than ten percent
      (10%) of the total combined voting power of all classes of stock of the Company
      or of any Parent or Subsidiary of the Company (“TEN PERCENT STOCKHOLDER”) will
      be exercisable after the expiration of five (5) years from the date the ISO
      is
      granted. The Board also may provide for Options to become exercisable at one
      time or from time to time, periodically or otherwise, in such number of Shares
      or percentage of Shares as the Board determines.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.4 Exercise
      Price.
      The
      Exercise Price of an Option will be determined by the Board when the Option
      is
      granted and may be not less than 85% of the Fair Market Value of the Shares
      on
      the date of grant; provided that: (a) the Exercise Price of an ISO will be
      not
      less than 100% of the Fair Market Value of the Shares on the date of grant;
      and
      (b) the Exercise Price of any ISO granted to a Ten Percent Stockholder will
      not
      be less than 110% of the Fair Market Value of the Shares on the date of grant.
      Payment for the Shares purchased may be made in accordance with Section 9 of
      this Plan.

    

    6.5 Method
      of Exercise.
      Options
      may be exercised only by delivery to the Company of a written stock option
      exercise agreement (the “EXERCISE AGREEMENT”) in a form approved by the Board,
      (which need not be the same for each Participant), stating the number of Shares
      being purchased, the restrictions imposed on the Shares purchased under such
      Exercise Agreement, if any, and such representations and agreements regarding
      Participant’s investment intent and access to information and other matters, if
      any, as may be required or desirable by the Company to comply with applicable
      securities laws, together with payment in full of the Exercise Price for the
      number of Shares being purchased.

    

    6.6 Termination.
      Notwithstanding the exercise periods set forth in the Stock Option Agreement,
      exercise of an Option will always be subject to the following:

    

    (a) If
      the
      Participant’s service is Terminated for any reason except death or Disability,
      then the Participant may exercise such Participant’s Options only to the extent
      that such Options would have been exercisable upon the Termination Date no
      later
      than three (3) months after the Termination Date (or such shorter or longer
      time
      period not exceeding five (5) years as may be determined by the Board, with
      any
      exercise beyond three (3) months after the Termination Date deemed to be an
      NQSO), but in any event, no later than the expiration date of the
      Options.

    

    (b) If
      the
      Participant’s service is Terminated because of Participant’s death or Disability
      (or the Participant dies within three (3) months after a Termination other
      than
      for Cause or because of Participant’s Disability), then Participant’s Options
      may be exercised only to the extent that such Options would have been
      exercisable by Participant on the Termination Date and must be exercised by
      Participant (or Participant’s legal representative or authorized assignee) no
      later than twelve (12) months after the Termination Date (or such shorter or
      longer time period not exceeding five (5) years as may be determined by the
      Board, with any such exercise beyond (i) three (3) months after the Termination
      Date when the Termination is for any reason other than the Participant’s death
      or Disability, or (ii) twelve (12) months after the Termination Date when the
      Termination is for Participant’s death or Disability, deemed to be an NQSO), but
      in any event no later than the expiration date of the Options.

    

    (c) Notwithstanding
      the provisions in paragraph 6.6(a) above, if a Participant’s service is
      Terminated for Cause, neither the Participant, the Participant’s estate nor such
      other person who may then hold the Option shall be entitled to exercise any
      Option with respect to any Shares whatsoever, after Termination, whether or
      not
      after Termination the Participant may receive payment from the Company or
      Subsidiary for vacation pay, for services rendered prior to Termination, for
      services rendered for the day on which Termination occurs, for salary in lieu
      of
      notice, or for any other benefits. For the purpose of this paragraph,
      Termination shall be deemed to occur on the date when the Company dispatches
      notice or advice to the Participant that his service is Terminated.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.7 Limitations
      on Exercise.
      The
      Board may specify a reasonable minimum number of Shares that may be purchased
      on
      any exercise of an Option, provided that such minimum number will not prevent
      Participant from exercising the Option for the full number of Shares for which
      it is then exercisable.

    

    6.8 Limitations
      on ISO.
      The
      aggregate Fair Market Value (determined as of the date of grant) of Shares
      with
      respect to which ISO are exercisable for the first time by a Participant during
      any calendar year (under this Plan or under any other incentive stock option
      plan of the Company, Parent or Subsidiary of the Company) will not exceed
      $100,000. If the Fair Market Value of Shares on the date of grant with respect
      to which ISO are exercisable for the first time by a Participant during any
      calendar year exceeds $100,000, then the Options for the first $100,000 worth
      of
      Shares to become exercisable in such calendar year will be ISO and the Options
      for the amount in excess of $100,000 that become exercisable in that calendar
      year will be NQSOs. In the event that the Code or the regulations promulgated
      thereunder are amended after the Effective Date of this Plan to provide for
      a
      different limit on the Fair Market Value of Shares permitted to be subject
      to
      ISO, such different limit will be automatically incorporated herein and will
      apply to any Options granted after the effective date of such
      amendment.

    

    6.9 Modification,
      Extension or Renewal.
      The
      Board may modify, extend or renew outstanding Options and authorize the grant
      of
      new Options in substitution therefor, provided that any such action may not,
      without the written consent of a Participant, impair any of such Participant’s
      rights under any Option previously granted. Any outstanding ISO that is
      modified, extended, renewed or otherwise altered will be treated in accordance
      with Section 424(h) of the Code. The Board may reduce the Exercise Price of
      outstanding Options without the consent of Participants affected by a written
      notice to them; provided, however, that the Exercise Price may not be reduced
      below the minimum Exercise Price that would be permitted under Section 6.4
      of
      this Plan for Options granted on the date the action is taken to reduce the
      Exercise Price.

    

    6.10 No
      Disqualification.
      Notwithstanding any other provision in this Plan, no term of this Plan relating
      to ISO will be interpreted, amended or altered, nor will any discretion or
      authority granted under this Plan be exercised, so as to disqualify this Plan
      under Section 422 of the Code or, without the consent of the Participant
      affected, to disqualify any ISO under Section 422 of the Code.

    

    
      	7.	
              RESTRICTED
                STOCK.

            

    

    

    A
      Restricted Stock Award is an offer by the Company to sell to an eligible person
      Shares that are subject to restrictions. The Board will determine to whom an
      offer will be made, the number of Shares the person may purchase, the price
      to
      be paid (the “PURCHASE PRICE”), the restrictions to which the Shares will be
      subject, and all other terms and conditions of the Restricted Stock Award,
      subject to the following:

    

    7.1 Form
      of Restricted Stock Award.
      All
      purchases under a Restricted Stock Award made pursuant to this Plan will be
      evidenced by an Award Agreement (the “RESTRICTED STOCK PURCHASE AGREEMENT”) that
      will be in such form (which need not be the same for each Participant) as the
      Board will from time to time approve, and will comply with and be subject to
      the
      terms and conditions of this Plan. The offer of Restricted Stock will be
      accepted by the Participant’s execution and delivery of the Restricted Stock
      Purchase Agreement and full payment for the Shares to the Company within thirty
      (30) days from the date the Restricted Stock Purchase Agreement is delivered
      to
      the person. If such person does not execute and deliver the Restricted Stock
      Purchase Agreement along with full payment for the Shares to the Company within
      thirty (30) days, then the offer will terminate, unless otherwise extended
      by
      the Board.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.2 Purchase
      Price.
      The
      Purchase Price of Shares sold pursuant to a Restricted Stock Award will be
      determined by the Board on the date the Restricted Stock Award is granted,
      except in the case of a sale to a Ten Percent Stockholder, in which case the
      Purchase Price will be 100% of the Fair Market Value. Payment of the Purchase
      Price must be made in accordance with Section 9 of this Plan.

    

    7.3 Terms
      of Restricted Stock Awards.
      Restricted Stock Awards shall be subject to such restrictions as the Board
      may
      impose. These restrictions may be based upon completion of a specified number
      of
      years of service with the Company or upon completion of the performance goals
      as
      set out in advance in the Participant’s individual Restricted Stock Purchase
      Agreement. Restricted Stock Awards may vary from Participant to Participant
      and
      between groups of Participants. Prior to the grant of a Restricted Stock Award,
      the Board shall: (a) determine the nature, length and starting date of any
      Performance Period for the Restricted Stock Award; (b) select from among the
      Performance Factors to be used to measure performance goals, if any; and (c)
      determine the number of Shares that may be awarded to the Participant. Prior
      to
      the payment of any Restricted Stock Award, the Board shall determine the extent
      to which such Restricted Stock Award has been earned. Performance Periods may
      overlap and Participants may participate simultaneously with respect to
      Restricted Stock Awards that are subject to different Performance Periods and
      have different performance goals and other criteria.

    

    7.4 Termination
      During Performance Period.
      If a
      Participant is Terminated during a Performance Period for any reason, then
      such
      Participant will be entitled to payment (whether in Shares, cash or otherwise)
      with respect to the Restricted Stock Award only to the extent earned as of
      the
      date of Termination in accordance with the Restricted Stock Purchase Agreement,
      unless the Board determines otherwise.

    

    
      	8.	
              STOCK
                BONUSES.

            

    

    

    8.1 Awards
      of Stock Bonuses.
      A Stock
      Bonus is an award of Shares (which may consist of Restricted Stock) for
      extraordinary services rendered to the Company or any Parent or Subsidiary
      of
      the Company. A Stock Bonus will be awarded pursuant to an Award Agreement (the
      “STOCK BONUS AGREEMENT”) that will be in such form (which need not be the same
      for each Participant) as the Board will from time to time approve, and will
      comply with and be subject to the terms and conditions of this Plan. A Stock
      Bonus may be awarded upon satisfaction of such performance goals as are set
      out
      in advance in the Participant’s individual Award Agreement (the “PERFORMANCE
      STOCK BONUS AGREEMENT”) that will be in such form (which need not be the same
      for each Participant) as the Board will from time to time approve, and will
      comply with and be subject to the terms and conditions of this Plan. Stock
      Bonuses may vary from Participant to Participant and between groups of
      Participants, and may be based upon the achievement of the Company, Parent
      or
      Subsidiary and/or individual performance factors or upon such other criteria
      as
      the Board may determine.

    

    8.2 Terms
      of Stock Bonuses.
      The
      Board will determine the number of Shares to be awarded to the Participant.
      If
      the Stock Bonus is being earned upon the satisfaction of performance goals
      pursuant to a Performance Stock Bonus Agreement, then the Board will: (a)
      determine the nature, length and starting date of any Performance Period for
      each Stock Bonus; (b) select from among the Performance Factors to be used
      to
      measure the performance, if any; and (c) determine the number of Shares that
      may
      be awarded to the Participant. Prior to the payment of any Stock Bonus, the
      Board shall determine the extent to which such Stock Bonuses have been earned.
      Performance Periods may overlap and Participants may participate simultaneously
      with respect to Stock Bonuses that are subject to different Performance Periods
      and different performance goals and other criteria. The number of Shares may
      be
      fixed or may vary in accordance with such performance goals and criteria as
      may
      be determined by the Board. The Board may adjust the performance goals
      applicable to the Stock Bonuses to take into account changes in law and
      accounting or tax rules and to make such adjustments as the Board deems
      necessary or appropriate to reflect the impact of extraordinary or unusual
      items, events or circumstances to avoid windfalls or hardships.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.3 Form
      of Payment.
      The
      earned portion of a Stock Bonus may be paid to the Participant by the Company
      either currently or on a deferred basis, with such interest or dividend
      equivalent, if any, as the Board may determine. Payment may be made in the
      form
      of cash or whole Shares or a combination thereof, either in a lump sum payment
      or in installments, all as the Board will determine.

    

    
      	9.	
              PAYMENT
                FOR SHARE PURCHASES.

            

    

    

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

     

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

            

    

    

    
      	 	
              (b)

            	
              by
                surrender of shares that either: (1) have been owned by Participant
                for
                more than one year and have been paid for within the meaning of Rule
                144
                of the Securities Act of 1933 (and, if such shares were purchased
                from the
                Company by use of a promissory note, such note has been fully paid
                with
                respect to such shares); or (2) were obtained by Participant in the
                public
                market;

            

    

    

    
      	 	
               

            	
              (c)

            	
              by
                waiver of compensation due or accrued to the Participant for services
                rendered;

            

    

    

    
      	
            	(d)	
              with
                respect only to purchases upon exercise of an Option, and provided
                that a
                public market for the Company’s stock
                exists:

            

    

    

    
      	
               

            	
              (1)

            	
              through
                a “same day sale” commitment from the Participant and a broker-dealer that
                is a member of the National Association of Securities Dealers (an
“NASD
                DEALER”) whereby the Participant irrevocably elects to exercise the Option
                and to sell a portion of the Shares so purchased to pay for the Exercise
                Price, and whereby the NASD Dealer irrevocably commits upon receipt
                of
                such Shares to forward the Exercise Price directly to the Company;
                or

            

    

    

    
      	
               

            	
              (2)

            	
              through
                a “margin” commitment from the Participant and a NASD Dealer whereby the
                Participant irrevocably elects to exercise the Option and to pledge
                the
                Shares so purchased to the NASD Dealer in a margin account as security
                for
                a loan from the NASD Dealer in the amount of the Exercise Price,
                and
                whereby the NASD Dealer irrevocably commits upon receipt of such
                Shares to
                forward the Exercise Price directly to the Company;
                or

            

    

    

    
      	
            	(e)	
              by
                any combination of the foregoing.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	10.	
              WITHHOLDING
                TAXES.

            

    

    

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

    

    10.2 Stock
      Withholding.
      When,
      under applicable tax laws, a participant incurs tax liability in connection
      with
      the exercise or vesting of any Award that is subject to tax withholding and
      the
      Participant is obligated to pay the Company the amount required to be withheld,
      the Board may allow the Participant to satisfy the minimum withholding tax
      obligation by electing to have the Company withhold from the Shares to be issued
      that number of Shares having a Fair Market Value equal to the minimum amount
      required to be withheld, determined on the date that the amount of tax to be
      withheld is to be determined. All elections by a Participant to have Shares
      withheld for this purpose will be made in accordance with the requirements
      established by the Board and be in writing in a form acceptable to the
      Board.

    

    
      	11.	
              PRIVILEGES
                OF STOCK OWNERSHIP.

            

    

    

    11.1 Voting
      and Dividends.
      No
      Participant will have any of the rights of a stockholder with respect to any
      Shares until the Shares are issued to the Participant. After Shares are issued
      to the Participant, the Participant will be a stockholder and will have all
      the
      rights of a stockholder with respect to such Shares, including the right to
      vote
      and receive all dividends or other distributions made or paid with respect
      to
      such Shares; provided, that if such Shares are Restricted Stock, then any new,
      additional or different securities the Participant may become entitled to
      receive with respect to such Shares by virtue of a stock dividend, stock split
      or any other change in the corporate or capital structure of the Company will
      be
      subject to the same restrictions as the Restricted Stock; provided, further,
      that the Participant will have no right to retain such stock dividends or stock
      distributions with respect to Shares that are repurchased at the Participant’s
      Purchase Price or Exercise Price pursuant to Section 12.

    

    11.2 Financial
      Statements.
      Pursuant to regulation 260.140.46 of the Rules of the California Corporations
      Commissioner, the Company will provide financial statements to each Participant
      prior to such Participant’s purchase of Shares under this Plan, and to each
      Participant annually during the period such Participant has Awards outstanding;
      provided, however, the Company will not be required to provide such financial
      statements to Participants whose services in connection with the Company assure
      them access to equivalent information.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	12.	
              TRANSFERABILITY.

            

    

    

    Awards
      granted under this Plan, and any interest therein, will not be transferable
      or
      assignable by Participant, and may not be made subject to execution, attachment
      or similar process, other than by will or by the laws of descent and
      distribution. During the lifetime of the Participant an Award will be
      exercisable only by the Participant. During the lifetime of the Participant,
      any
      elections with respect to an Award may be made only by the Participant unless
      otherwise determined by the Board and set forth in the Award Agreement with
      respect to Awards that are not ISOs.

    

    
      	13.	
              RESTRICTIONS
                ON SHARES.

            

    

    

    At
      the
      discretion of the Board, the Company may reserve to itself and/or its
      assignee(s) in the Award Agreement a right to repurchase a portion of or all
      Unvested Shares held by a Participant following such Participant’s Termination
      at any time within ninety (90) days after the later of (a) Participant’s
      Termination Date, or (b) the date Participant purchases Shares under this Plan.
      Such repurchase by the Company shall be for cash and/or cancellation of purchase
      money indebtedness, and the price per share shall be the Participant’s Exercise
      Price or the Purchase Price, as applicable.

    

    
      	14.	
              CERTIFICATES.

            

    

    

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

    

    
      	15.	
              ESCROW;
                PLEDGE OF SHARES.

            

    

    

    To
      enforce any restrictions on a Participant’s Shares, the Board may require the
      Participant to deposit all certificates representing Shares, together with
      stock
      powers or other instruments of transfer approved by the Board appropriately
      endorsed in blank, with the Company or an agent designated by the Company to
      hold in escrow until such restrictions have lapsed or terminated, and the Board
      may cause a legend or legends referencing such restrictions to be placed on
      the
      certificates. Any Participant who is permitted to execute a promissory note
      as
      partial or full consideration for the purchase of Shares under this Plan will
      be
      required to pledge and deposit with the Company all or part of the Shares so
      purchased as collateral to secure the payment of Participant’s obligation to the
      Company under the promissory note; provided, however, that the Board may require
      or accept other or additional forms of collateral to secure the payment of
      such
      obligation and, in any event, the Company will have full recourse against the
      Participant under the promissory note notwithstanding any pledge of the
      Participant’s Shares or other collateral. In connection with any pledge of the
      Shares, Participant will be required to execute and deliver a written pledge
      agreement in such form as the Board will from time to time approve. The Shares
      purchased with the promissory note may be released from the pledge on a pro
      rata
      basis as the promissory note is paid.

    

    
      	16.	
              EXCHANGE
                AND BUYOUT OF AWARDS.

            

    

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	17.	
              SECURITIES
                LAW AND OTHER REGULATORY
                COMPLIANCE.

            

    

    

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

    

    
      	18.	
              NO
                OBLIGATION TO EMPLOY.

            

    

    

    Nothing
      in this Plan or any Award granted under this Plan will confer or be deemed
      to
      confer on any Participant any right to continue in the employ of, or to continue
      any other relationship with, the Company or any Parent or Subsidiary of the
      Company or limit in any way the right of the Company or any Parent or Subsidiary
      of the Company to terminate Participant’s employment or other relationship at
      any time, with or without cause.

    

    
      	19.	
              CORPORATE
                TRANSACTIONS.

            

    

    

    19.1 Assumption
      or Replacement of Awards by Successor.
      In the
      event of (a) a dissolution or liquidation of the Company, (b) a merger or
      consolidation in which the Company is not the surviving corporation (other
      than
      a merger or consolidation with a wholly-owned subsidiary, a reincorporation
      of
      the Company in a different jurisdiction, or other transaction in which there
      is
      no substantial change in the stockholders of the Company or their relative
      stock
      holdings and the Awards granted under this Plan are assumed, converted or
      replaced by the successor corporation, which assumption will be binding on
      all
      Participants), (c) a merger in which the Company is the surviving corporation
      but after which the stockholders of the Company immediately prior to such merger
      (other than any stockholder that merges, or which owns or controls another
      corporation that merges, with the Company in such merger) cease to own their
      shares or other equity interest in the Company, (d) the sale of substantially
      all of the assets of the Company, or (e) the acquisition, sale, or transfer
      of
      more than 50% of the outstanding shares of the Company by tender offer or
      similar transaction, any or all outstanding Awards may be assumed, converted
      or
      replaced by the successor corporation (if any), which assumption, conversion
      or
      replacement will be binding on all Participants. In the alternative, the
      successor corporation may substitute equivalent Awards or provide substantially
      similar consideration to Participants as was provided to stockholders (after
      taking into account the existing provisions of the Awards). The successor
      corporation may also issue, in place of outstanding Shares of the Company held
      by the Participant, substantially similar shares or other property subject
      to
      repurchase restrictions no less favorable to the Participant. In the event
      such
      successor corporation (if any) refuses to assume or substitute Awards, as
      provided above, pursuant to a transaction described in this Subsection 19.1,
      such Awards will expire on such transaction at such time and on such conditions
      as the Board will determine. Notwithstanding anything in this Plan to the
      contrary, the Board may provide that the vesting of any or all Awards granted
      pursuant to this Plan will accelerate upon a transaction described in this
      Section 19. If the Board exercises such discretion with respect to Options,
      such
      Options will become exercisable in full prior to the consummation of such event
      at such time and on such conditions as the Board determines, and if such Options
      are not exercised prior to the consummation of the corporate transaction, they
      shall terminate at such time as determined by the Board.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    19.2 Other
      Treatment of Awards.
      Subject
      to any greater rights granted to Participants under the foregoing provisions
      of
      this Section 19, in the event of the occurrence of any transaction described
      in
      Section 19.1, any outstanding Awards will be treated as provided in the
      applicable agreement or plan of merger, consolidation, dissolution, liquidation,
      or sale of assets.

    

    19.3 Assumption
      of Awards by the Company.
      The
      Company, from time to time, also may substitute or assume outstanding awards
      granted by another company, whether in connection with an acquisition of such
      other company or otherwise, by either: (a) granting an Award under this Plan
      in
      substitution of such other company’s award; or (b) assuming such award as if it
      had been granted under this Plan if the terms of such assumed award could be
      applied to an Award granted under this Plan. Such substitution or assumption
      will be permissible if the holder of the substituted or assumed award would
      have
      been eligible to be granted an Award under this Plan if the other company had
      applied the rules of this Plan to such grant. In the event the Company assumes
      an award granted by another company, the terms and conditions of such award
      will
      remain unchanged (except that the exercise price and the number and nature
      of
      Shares issuable upon exercise of any such option will be adjusted appropriately
      pursuant to Section 424(a) of the Code). In the event the Company elects to
      grant a new Option rather than assuming an existing option, such new Option
      may
      be granted with a similarly adjusted Exercise Price.

    

    
      	20.	
              ADOPTION
                AND STOCKHOLDER APPROVAL.

            

    

    

    This
      Plan
      will become effective on the date on which it is adopted by the Board (the
      “EFFECTIVE DATE”). This Plan shall be approved by the stockholders of the
      Company within twelve (12) months before or after the date this Plan is adopted
      by the Board. Upon the Effective Date, the Board may grant Awards pursuant
      to
      this Plan. In the event that stockholder approval of this Plan is not obtained
      within the time period provided herein, all Awards granted hereunder shall
      be
      cancelled, any Shares issued pursuant to any Awards shall be cancelled and
      any
      purchase of Shares issued hereunder shall be rescinded.

    

    
      	21.	
              TERM
                OF PLAN/GOVERNING LAW.

            

    

    

    Unless
      earlier terminated as provided herein, this Plan will terminate ten (10) years
      from the date this Plan is adopted by the Board or, if earlier, the date of
      stockholder approval. This Plan and all agreements there under shall be governed
      by and construed in accordance with the laws of the State of
      California.

    

    
      	22.	
              AMENDMENT
                OR TERMINATION OF PLAN.

            

    

    

    The
      Board
      may at any time terminate or amend this Plan in any respect, including without
      limitation amendment of any form of Award Agreement or instrument to be executed
      pursuant to this Plan; provided, however, that the Board will not, without
      the
      approval of the stockholders of the Company, amend this Plan in any manner
      that
      requires such stockholder approval.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	23.	
              NONEXCLUSIVITY
                OF THE PLAN.

            

    

    

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

    

    
      	24.	
              ACTION
                BY BOARD.

            

    

    

    Any
      action permitted or required to be taken by the Board or any decision or
      determination permitted or required to be made by the Board pursuant to this
      Plan shall be taken or made in the Board’s sole and absolute
      discretion.<Page>

EXHIBIT 10.1

              AMENDED AND RESTATED AMENDMENT AND EXCHANGE AGREEMENT

      AMENDED AND RESTATED AMENDMENT AND EXCHANGE AGREEMENT (this "AGREEMENT"),
dated as of January 22, 2007, by and among Raptor Networks Technology, Inc., a
Colorado corporation, with headquarters located at 1241 E. Dyer Road, Suite 150,
Santa Ana, California 92705 (the "COMPANY"), and ________________(the
"INVESTOR").

      WHEREAS:

      A.    The Company and the Investor are party to that certain Amendment and
Exchange Agreement, dated as of January 18, 2007 by and among the Company and
the Investor (the "AMENDMENT AND EXCHANGE AGREEMENT"). The Company and the
Investor have agreed to amend and restate the Amendment and Exchange Agreement
to correct an error in the number of Replacement L-1 Warrants to be issued
pursuant to such Amendment and Exchange Agreement. The number of Series L-1
Warrants to be issued pursuant to the Amendment and Exchange Agreement is
amended and restated by this Agreement to the number set forth opposite the
Investor's name in column (4) on the Securities Schedule attached hereto. Also,
the Company and the Investor agreed to amend the definition of Initial Filing
Deadline contained in the Amended and Restated Registration Rights Agreement (as
defined below) to extend such deadline from January 23, 2007 until January 29,
2007.

      B.    The Company, the Investor and certain other investors (the "OTHER
INVESTORS", and collectively with the Investor, the "INVESTORS") are parties to
that certain Securities Purchase Agreement, dated as of July 30, 2006 (the
"EXISTING SECURITIES PURCHASE AGREEMENT"), pursuant to which, among other
things, the Investors purchased from the Company (i) senior convertible notes
(the "EXISTING NOTES"), which are convertible into shares of the Company's
common stock, par value $0.001 per share (the "COMMON STOCK") (the Existing
Notes as converted, the "EXISTING CONVERSION SHARES"), in accordance with the
terms thereof, (ii) Series L Warrants (the "EXISTING SERIES L WARRANTS"), which
are exercisable into shares of Common Stock (the "EXISTING SERIES L WARRANT
SHARES"); and (iii) Series M Warrants (the "EXISTING SERIES M WARRANTS", and
together with the Existing Series L Warrants, the "EXISTING WARRANTS"), which
are exercisable into shares of Common Stock (the "EXISTING SERIES M WARRANT
SHARES", and together with the Existing Series L Warrant Shares, the "EXISTING
WARRANT SHARES").

      C.    In connection with the execution and delivery of the Existing
Securities Purchase Agreement, the Company entered into that certain
Registration Rights Agreement, dated July 31, 2006 (the "EXISTING REGISTRATION
RIGHTS AGREEMENT"), by and among the Company and the Investors, pursuant to
which the Company agreed to provide certain registration rights with respect to
the Registrable Securities (as defined in the Existing Registration Rights
Agreement) under the Securities Act of 1933, as amended (the "1933 ACT"), and
the rules and regulations promulgated thereunder, and applicable state
securities laws.

<Page>

      D.    Prior to the date hereof, the Investor and the Company have
determined that, as a result of the manner that the Securities and Exchange
Commission ("SEC") is applying policy, the Company would not be able to comply
with all of its obligations under the Existing Registration Rights Agreement.

      E.    The Company and the Investor desire to enter into this Agreement,
pursuant to which, among other things, (i) the Company and the Investor shall
amend and restate all of such Investor's Existing Notes for notes in the form
attached hereto as EXHIBIT A in the principal amount set forth opposite the
Investor's name in column (3) on the Securities Schedule (the "AMENDED AND
RESTATED NOTES"), which shall be convertible into Common Stock (the "AMENDED AND
RESTATED CONVERSION SHARES"), (ii) the Company and the Investor shall exchange
all of such Investor's Existing Series L Warrants for warrants in the form
attached hereto as EXHIBIT B (the "REPLACEMENT SERIES L-1 WARRANTS") which shall
be exercisable to acquire that number of shares of Common Stock set forth
opposite the Investor's name in column (4) on the Securities Schedule attached
hereto (the "REPLACEMENT SERIES L-1 WARRANT SHARES"), and (iii) the Company and
the Investor shall exchange all of such Investor's Existing Series M Warrants
for warrants in the form attached hereto as EXHIBIT C (the "REPLACEMENT SERIES
M-1 WARRANTS", and together with the Replacement Series L-1 Warrants, the
"REPLACEMENT WARRANTS") which shall be exercisable to acquire that number of
shares of Common Stock set forth opposite the Investor's name in column (5) on
the Securities Schedule attached hereto (the "REPLACEMENT SERIES M-1 WARRANT
SHARES", and together with the Replacement Series L-1 Warrant Shares, the
"REPLACEMENT WARRANT SHARES").

      F.    In addition, the Investor wishes to purchase, and the Company wishes
to sell, upon the terms and conditions stated in this Agreement, (i) an
additional aggregate principal amount of senior convertible notes, in
substantially the form attached hereto as EXHIBIT D (the "ADDITIONAL NOTES", and
together with the Amended and Restated Notes, the "NOTES"), in the amount set
forth opposite the Investor's name in column (6) on the Securities Schedule
attached hereto (which aggregate amount for all Investors shall be $1,600,000)
(as converted, collectively, the "ADDITIONAL CONVERSION SHARES" and together
with the Amended and Restated Conversion Shares, the "CONVERSION SHARES"), (ii)
additional warrants, in substantially the form attached hereto as EXHIBIT E (the
"SERIES L-2 WARRANTS"), to acquire that number of shares of Common Stock set
forth opposite the Investor's name in column (7) on the Securities Schedule
attached hereto (as exercised, the "SERIES L-2 WARRANT SHARES") and (iii)
additional warrants in substantially the form attached hereto as EXHIBIT F (the
"SERIES M-2 WARRANTS" and together with the Series L-2 Warrants the "ADDITIONAL
WARRANTS" and the Additional Warrants together with the Replacement Warrants,
the "WARRANTS") to acquire that number of shares of Common Stock set forth
opposite the Investor's name in column (8) on the Securities Schedule attached
hereto (as exercised, the "SERIES M-2 WARRANT SHARES", and together with the
Series L-2 Warrant Shares, the "ADDITIONAL WARRANT SHARES", and together with
the Replacement Warrant Shares, the "WARRANT SHARES").

      G.    The amendment and restatement of the Existing Notes for the Amended
and Restated Notes and the exchange of the Existing Warrants for the Replacement
Warrants is being made in reliance upon the exemption from registration provided
by Section 3(a)(9) of the 1933 Act.

                                       2

<Page>

      H.    The issuance of the Additional Notes and the Additional Warrants is
being made in reliance upon the exemption from securities registration afforded
by Section 4(2) of the 1933 Act and Rule 506 of Regulation D ("REGULATION D") as
promulgated by the SEC under the 1933 Act.

      I.    In connection with the execution and delivery of this Agreement, the
Company and the Investors are executing and delivering a Registration Rights
Agreement, substantially in the form attached hereto as EXHIBIT G (the "AMENDED
AND RESTATED REGISTRATION RIGHTS AGREEMENT"), which shall completely amend,
restate and supersede the Existing Registration Rights Agreement, pursuant to
which the Company has agreed to provide certain registration rights with respect
to the Registrable Securities (as defined in the Amended and Restated
Registration Rights Agreement) under the 1933 Act and the rules and regulations
promulgated thereunder, and applicable state securities laws.

      J.    Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings ascribed to them in the Existing Securities
Purchase Agreement.

      NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises hereinafter set forth, the Company and the Investor hereby agree as
follows:

      1.    AMENDMENT AND RESTATEMENT OF EXISTING NOTES; EXCHANGE OF EXISTING
            WARRANTS; PURCHASE AND SALE OF ADDITIONAL NOTES AND ADDITIONAL
            WARRANTS.

            (a)   AMENDMENT AND RESTATEMENT OF EXISTING NOTE; EXCHANGE OF
EXISTING WARRANTS. Subject to satisfaction (or waiver) of the conditions set
forth in Sections 5 and 6 below, at the closing contemplated by this Agreement
(the "CLOSING"), the Investor shall surrender to the Company its Existing Note
and its Existing Warrants and the Company shall issue and deliver to the
Investor (i) an Amended and Restated Note in the principal amount set forth
opposite the Investor's name in column (3) on the Securities Schedule, (ii) the
Series L-1 Warrants to acquire that number of Series L-1 Warrant Shares as is
set forth opposite the Investor's name in column (4) on the Securities Schedule
attached hereto, as such number has been amended pursuant to this Agreement and
(iii) the Series M-1 Warrants to acquire that number of Series M-1 Warrant
Shares as is set forth opposite the Investor's name in column (5) on the
Securities Schedule.

            (b)   PURCHASE OF ADDITIONAL NOTES AND ADDITIONAL WARRANTS. Subject
to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6
below, the Company shall issue and sell to the Investor at the Closing, and the
Investor agrees to purchase from the Company on the Closing Date, (x) a
principal amount of Additional Notes as is set forth opposite the Investor's
name in column (6) on the Securities Schedule attached hereto, (y) Series L-2
Warrants to acquire that number of Series L-2 Warrant Shares as is set forth
opposite the Investor's name in column (7) on the Securities Schedule attached
hereto and (z) Series M-2 Warrants to acquire that number of Warrant Shares as
is set forth opposite the Investor's name in column (8) on the Securities
Schedule attached hereto. Notwithstanding any other provision of this Agreement
to the contrary, in the event that the Securities Schedule attached hereto
reflects that the Investor will not acquire any Additional Notes, Series L-2
Warrants or Series M-2 Warrants, then the Investor shall not have any
obligations whatsoever with respect to such Additional Notes, Series L-2
Warrants or Series M-2 Warrants.

                                       3

<Page>

            (c)   PURCHASE PRICE. The purchase price for the Additional Notes
and the Additional Warrants to be purchased by the Investor at the Closing (the
"PURCHASE PRICE") shall be the amount set forth opposite the Investor's name in
column (9) of the Securities Schedule attached hereto (the "PURCHASE PRICE").
The Investor shall pay $1.00 for each $1.00 of principal amount of Additional
Notes and the related Additional Warrants to be purchased at the Closing.

            (d)   CLOSING DATE. The date and time of the Closing (the "CLOSING
DATE") shall be 10:00 a.m., New York Time, on January 19, 2007, subject to
notification of satisfaction (or waiver) of the conditions to the Closing set
forth in Sections 5 and 6 below (or such other time and date as is mutually
agreed to by the Company and the Investor). The Closing shall occur on the
Closing Date at the offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New
York, New York 10022.

            (e)   FORM OF PAYMENT. On the Closing Date, (i) the Investor shall
pay the Purchase Price to the Company for the Additional Notes and the
Additional Warrants to be issued and sold to the Investor at the Closing by wire
transfer of immediately available funds in accordance with the Company's written
wire instructions and (ii) the Company shall deliver to the Investor (A) the
Additional Notes (in the principal amounts as set forth opposite the Investor's
name in column (6) on the Securities Schedule attached hereto) which the
Investor is then purchasing, and (B) the Additional Warrants (in the amounts as
set forth opposite the Investor's name in columns (7) and (8) on the Securities
Schedule attached hereto) which the Investor is purchasing. In addition, the
Company shall deliver to the Investor (x) the Amended and Restated Notes and (y)
the Replacement Warrants. All of the foregoing securities shall be delivered in
each case duly executed on behalf of the Company and registered in the name of
the Investor or its designee (so long as any such designee is an "accredited
investor" as that term is defined in Rule 501(d) of Regulation D).

      2.    AMENDMENTS TO TRANSACTION DOCUMENTS.

            (a)   RATIFICATIONS. Except as otherwise expressly provided herein,
the Existing Securities Purchase Agreement and each other Transaction Document
is, and shall continue to be, in full force and effect and is hereby ratified
and confirmed in all respects, except that on and after the Closing Date (i) all
references in the Existing Securities Purchase Agreement to "this Agreement",
"hereto", "hereof", "hereunder" or words of like import referring to the
Securities Purchase Agreement shall mean the Existing Securities Purchase
Agreement as amended by this Agreement, (ii) all references in the other
Transaction Documents to the "Securities Purchase Agreement", "thereto",
"thereof", "thereunder" or words of like import referring to the Securities
Purchase Agreement shall mean the Existing Securities Purchase Agreement as
amended by this Agreement, (iii) all references in any of the Transaction
Documents to the "Registration Rights Agreement", "thereto", "thereof",
"thereunder" or words of like import referring to the Registration Rights
Agreement shall mean the Amended and Restated Registration Rights Agreement, and
(iv) all references in any Transaction Document to a "Buyer" shall include the
Investor hereunder.

                                       4

<Page>

            (b)   Each of the Transaction Documents are hereby amended as
follows:

                  (i)   All references to Notes shall be amended to include
      additionally the Notes as defined in this Agreement.

                  (ii)  All references to "Conversion Shares" shall be amended
      to include additionally the Conversion Shares as defined in this
      Agreement.

                  (iii) All references to "Warrants" shall be amended to include
      additionally the Warrants as defined in this Agreement.

                  (iv)  All references to "Warrant Shares" shall be amended to
      include additionally the Warrant Shares as defined in this Agreement.

                  (v)   The defined term "Transaction Documents" is hereby
      amended to include this Agreement and the Amended and Restated
      Registration Rights Agreement.

            (c)   The reference in Section 4(q)(i) of the Existing Securities
Purchase Agreement to "150,000,000 shares" is hereby amended to instead refer to
"200,000,000 shares."

            (d)   The reference in Section 4(q)(i) of the Existing Securities
Purchase Agreement to "Schulte Roth & Zabel LLP" is hereby amended to instead
refer to "and the legal counsel of each Buyer"; provided, however, that any
legal fees of counsel to Cedar Hill Capital Partners Onshore, LP, and Cedar Hill
Capital Partners Offshore, Ltd. related to the review of the proxy statement
referenced in Section 4(q)(i) of the Existing Securities Purchase Agreement
shall be limited to $5,000 in the aggregate.

            (e)   The reference to "January 23, 2007" in the defined term
"Initial Filing Deadline" contained in the Amended and Restated Registration
Rights Agreement is hereby amended to instead refer to "January 29, 2007."

      3.    REPRESENTATIONS AND WARRANTIES

            (a)   INVESTOR BRING DOWN. The Investor hereby represents and
warrants to the Company with respect to itself only as set forth in Section 2 of
the Existing Securities Purchase Agreement as to this Agreement as if such
representations and warranties were made as of the date hereof and set forth in
their entirety in this Agreement. Such representations and warranties to the
transactions thereunder and the securities issued thereby are hereby deemed for
purposes of this Agreement to be references to the transactions hereunder and
the issuance of the securities hereby.

            (b)   COMPANY BRING DOWN. Except as set forth on the Amended and
Restated Schedules attached hereto, which shall amend and restate the Schedules
attached to the Existing Securities Purchase Agreement, the Company represents
and warrants to the Investor as set forth in Section 3 of the Securities
Purchase Agreement as if such representations and warranties were made as of the
date hereof and set forth in their entirety in this Agreement. Such

                                       5

<Page>

representations and warranties to the transactions thereunder and the securities
issued thereby are hereby deemed for purposes of this Agreement to be references
to the transactions hereunder and the issuance of the securities hereby,
references therein to "Closing Date" being deemed references to the Closing Date
as defined in Section 1(d) above, and references to "the date hereof" being
deemed references to the date of this Agreement.

            (c)   NO EVENT OF DEFAULT. The Company represents and warrants to
the Investor that after giving effect to the terms of this Agreement and the
Other Agreements (as defined below), no Default or Event of Default (as defined
in the Notes) shall have occurred and be continuing as of the date hereof.

            (d)   COMPANY NOTICE OF WITHDRAWN REGISTRATION STATEMENT. The
Company hereby notifies the Investors that: (i) the Company's registration
statement on Form SB-2 (File No. 333-136995) originally filed on August 30, 2006
and the related offering was withdrawn effective December 13, 2006; and (ii) the
Investors do not have the protection of Section 11 of the 1933 Act with respect
to the transactions contemplated by this Agreement.

            (e)   RIGHTS OF SECURITIES. The Additional Notes and the Additional
Warrants shall in no way provide superior or senior rights over those of the
Amended and Restated Notes and the Replacements Warrants, respectively
(including without limitation with respect to rights under the Amended and
Restated Registration Rights Agreement). The Company agrees that it will not
agree to favor or provide additional rights to the Additional Notes and the
Additional Warrants that are superior or senior over those of the Amended and
Restated Notes and the Replacements Warrants without the prior written consent
of the Investor and all the Other Investors.

      4.    CERTAIN COVENANTS AND AGREEMENTS; WAIVER

            (a)   BEST EFFORTS. Each party shall use its best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Sections 5
and 6 of this Agreement.

            (b)   FORM D AND BLUE SKY. The Company agrees to file a Form D with
respect to the Securities (as defined in the Existing Securities Purchase
Agreement) as required under Regulation D and to provide a copy thereof to the
Investor reasonably promptly after such filing. The Company shall, reasonably
promptly (and in no event later than 15 days) after the Closing Date, take such
action as the Company shall reasonably determine is necessary (taking into
account The National Securities Markets Improvement Act of 1996, as amended), in
order to obtain an exemption for or to qualify the Securities for sale to the
Investor at the Closing pursuant to this Agreement under applicable securities
or "Blue Sky" laws of the states of the United States (or to obtain an exemption
from such qualification), and shall provide evidence of any such action so taken
to the Investor reasonably promptly after such filing. The Company shall make
all filings and reports relating to the offer and sale of the Securities
required under applicable securities or "Blue Sky" laws of the states of the
United States following the Closing Date. The Company shall have no obligations
with respect to the securities laws of any jurisdiction outside of the United
States, regardless of the foreign residence of the Investor.

                                       6

<Page>

            (c)   DISCLOSURE OF TRANSACTIONS AND OTHER MATERIAL INFORMATION. On
or before 8:30 a.m., New York City time, on the first Business Day following the
date of this Agreement, the Company shall issue a press release and file a
Current Report on Form 8-K describing the terms of the transactions contemplated
by this Agreement in the form required by the 1934 Act and attaching the
material Transaction Documents not previously filed (including, without
limitation, this Agreement, the form of the Amended and Restated Notes, the form
of the Additional Notes, the form of the Replacement Warrants, the form of the
Additional Warrants and the form of the Amended and Restated Registration Rights
Agreement) (including all attachments, the "8-K FILING"). From and after the
filing of the 8-K Filing with the SEC, the Investor shall not be in possession
of any material, nonpublic information received from the Company, any of its
Subsidiaries or any of its respective officers, directors, employees or agents,
that is not disclosed in the 8-K Filing. The Company shall not, and shall cause
each of its Subsidiaries and its and each of their respective officers,
directors, employees and agents, not to, provide the Investor with any material,
nonpublic information regarding the Company or any of its Subsidiaries from and
after the filing of the 8-K Filing with the SEC without the express written
consent of the Investor or as may be required under the terms of the Transaction
Documents. If the Investor has, or believes it has, received any such material,
nonpublic information regarding the Company or any of its Subsidiaries, it shall
provide the Company with written notice thereof. The Company shall, within five
(5) Trading Days (as defined in the Note) of receipt of such notice, make public
disclosure of such material, nonpublic information. In the event of a breach of
the foregoing covenant by the Company, any of its Subsidiaries, or any of its or
their respective officers, directors, employees and agents, in addition to any
other remedy provided herein or in the Transaction Documents, the Investor shall
have the right to make a public disclosure, in the form of a press release,
public advertisement or otherwise, of such material, nonpublic information
without the prior approval by the Company, its Subsidiaries, or any of its or
their respective officers, directors, employees or agents. The Investor shall
not have any liability to the Company, its Subsidiaries, or any of its or their
respective officers, directors, employees, stockholders or agents for any such
disclosure. Subject to the foregoing, neither the Company, its Subsidiaries nor
the Investor shall issue any press releases or any other public statements with
respect to the transactions contemplated hereby; provided, however, that the
Company shall be entitled, without the prior approval of the Investor, to make
any press release or other public disclosure with respect to such transactions
(i) in substantial conformity with the 8-K Filing and contemporaneously
therewith and (ii) as is required by applicable law and regulations (provided
that in the case of clause (i) the Investor shall be consulted by the Company in
connection with any such press release or other public disclosure prior to its
release). Without the prior written consent of the Investor, and except as
contemplated by the prior subsection (i) or as required by applicable law or
regulation, neither the Company nor any of its Subsidiaries or affiliates shall
disclose the name of the Investor in any filing, announcement, release or
otherwise.

            (d)   FEES AND EXPENSES. The Company shall reimburse the Investor
for its legal and due diligence fees and expenses in connection with the
preparation and negotiation of this Agreement and transactions contemplated
thereby by paying any such amount to ______________ (the "INVESTOR COUNSEL
EXPENSE"), which amount may be withheld by the Investor from its Purchase Price
at the Closing. The Investor Counsel Expense shall be paid by the Company
whether or not the transactions contemplated by this Agreement are consummated.
Except as otherwise set forth in this Agreement, each party shall pay the fees

                                       7

<Page>

and expenses of its advisers, counsel, accountants and other experts, if any,
and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. The Company
shall pay all stamp and other taxes and duties levied in connection with the
issuance of the Amended and Restated Notes, the Replacement Warrants, the
Additional Notes and the Additional Warrants.

            (e)   WAIVER. Effective as of the Closing, the Investor hereby
waives (i) any and all Filing Failures and/or Effectiveness Failures (as such
terms are defined in the Existing Registration Rights Agreement) as well as any
and all defaults, fees and penalties under the Existing Securities Purchase
Agreement, the Existing Notes, the Existing Warrants and Existing Registration
Rights Agreement which arose solely on the basis of such Filing Failures and/or
Effectiveness Failures, that have occurred prior to Closing and (ii) any
defaults, fees and penalties under the Existing Notes which may have arisen
solely as a result of the Company's failure to pay the Installment Amounts due
on November 30, 2006, December 1, 2006 and January 1, 2007 and the Company's
failure to pay Interest due on January 1, 2007.

      5.    CONDITIONS TO COMPANY'S OBLIGATIONS HEREUNDER.

            The obligations of the Company to the Investor hereunder are subject
to the satisfaction of each of the following conditions, provided that these
conditions are for the Company's sole benefit and may be waived by the Company
at any time in its sole discretion by providing the Investor with prior written
notice thereof:

            (a)   The Investor shall have executed this Agreement and the
Amended and Restated Registration Rights Agreement and delivered the same to the
Company.

            (b)   The Investor shall have delivered to the Company the
Investor's Existing Note and Existing Warrants for cancellation.

            (c)   The Investor shall have delivered to the Company the Purchase
Price (less the amounts withheld pursuant to Section 4(d)) for the Additional
Notes and the related Additional Warrants being purchased by the Investor at the
Closing by wire transfer of immediately available funds pursuant to the wire
instructions provided by the Company.

            (d)   The representations and warranties of the Investor shall be
true and correct in all material respects as of the date when made and as of the
Closing Date as though made at that time (except for representations and
warranties that speak as of a specific date) and the Investor shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Investor at or prior to the Closing Date.

      6.    CONDITIONS TO INVESTOR'S OBLIGATIONS HEREUNDER.

            The obligations of the Investor hereunder are subject to the
satisfaction of each of the following conditions, provided that these conditions
are for the Investor's sole benefit and may be waived by the Investor at any
time in its sole discretion by providing the Company with prior written notice
thereof:

                                       8

<Page>

            (a)   The Company shall have executed this Agreement and the Amended
and Restated Registration Rights Agreement and delivered the same to the
Investor.

            (b)   The Company shall have executed and delivered to the Investor
the Amended and Restated Notes, the Replacement Warrants, the Additional Notes
and the Additional Warrants being issued to such Investor at the Closing.

            (c)   Each of the Other Investors shall have (i) executed agreements
identical to this Agreement (the "OTHER AGREEMENTS") (other than proportional
changes (the "PROPORTIONATE CHANGES") in the numbers reflecting the different
dollar amount of such Investor's Notes and the number of Warrant Shares
underlying such Investor's Warrants), (ii) satisfied or waived all conditions to
the closings contemplated by such agreements, (iii) surrendered their Existing
Notes and Existing Warrants for Amended and Restated Notes and Replacement
Warrants identical to the Amended and Restated Notes and Replacement Warrants of
the Investor hereunder (other than the Proportionate Changes) and (iv) purchased
Additional Notes and Additional Warrants identical to the Additional Notes and
Additional Warrants of the Investor hereunder (other than the Proportionate
Changes).

            (d)   The Company shall have delivered to the Company's transfer
agent, with a copy to the Investors, a letter stating that the Irrevocable
Transfer Agent Instructions dated July 30, 2006 shall also apply to the Amended
and Restated Notes, Replacement Warrant Shares, Additional Notes and Additional
Warrants.

            (e)   The Investor shall have received the opinions of Rutan and
Tucker, LLP, the Company's outside counsel, and Moye White LLP, the Company's
special Colorado counsel, dated as of the Closing Date, in substantially the
form of EXHIBIT H attached hereto.

            (f)   The Company shall have delivered to the Investor a certificate
evidencing the formation and good standing of the Company and each of its
Subsidiaries in such entity's jurisdiction of formation issued by the Secretary
of State (or comparable office) of such jurisdiction, as of a date within 10
days of the Closing Date.

            (g)   The Company shall have delivered to the Investor a certificate
evidencing the Company's qualification as a foreign corporation and good
standing issued by the Secretary of State (or comparable office) of each
jurisdiction in which the Company is required to be so qualified, as of a date
within 10 days of the Closing Date.

            (h)   The Company shall have delivered to the Investor a certified
copy of the Articles of Incorporation as certified by the Secretary of State (or
comparable office) of the State of Colorado within ten (10) days of the Closing
Date.

            (i)   The Company shall have delivered to the Investor a
certificate, executed by the Secretary of the Company and dated as of the
Closing Date, as to (i) the resolutions approving the transactions contemplated
hereby as adopted by the Board in a form reasonably acceptable to the Investor,
(ii) the Certificate of Incorporation and (iii) the Bylaws, each as in effect as
of the Closing, in the form attached hereto as EXHIBIT I.

                                       9

<Page>

            (j)   The representations and warranties of the Company hereunder
and under each other Transaction Document shall be true and correct in all
material respects as of the date when made and as of the Closing Date as though
made at that time (except for representations and warranties that speak as of a
specific date) and the Company shall have performed, satisfied and complied in
all respects with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company
at or prior to the Closing Date and after giving effect to the terms of this
Agreement and the Other Agreements, no default or Event of Default shall have
occurred and be continuing as of the Closing Date. The Investor shall have
received a certificate, executed by the Chief Executive Officer of the Company,
dated as of the Closing Date, to the foregoing effect and as to such other
matters as may be reasonably requested by the Investor in the form attached
hereto as EXHIBIT G.

            (k)   The Common Stock (I) shall be designated for quotation or
listed on the Principal Market and (II) shall not have been suspended, as of the
Closing Date, by the SEC or the Principal Market from trading on the Principal
Market nor shall suspension by the SEC or the Principal Market have been
threatened, as of the Closing Date, either (A) in writing by the SEC or the
Principal Market or (B) by falling below the minimum listing maintenance
requirements of the Principal Market.

            (l)   Subject to obtaining the Stockholder Approval, the Company
shall have obtained all governmental, regulatory or third party consents and
approvals, if any, necessary for the sale of the Securities.

            (i)   All rights of first refusal, participation, or similar rights
that would entitle any Person to participate in the transactions contemplated
hereby shall have expired or have been waived.

            (m)   The Company shall have delivered to the Investor such other
documents relating to the transactions contemplated by this Agreement as the
Investor or its counsel may reasonably request.

      7.    TERMINATION.

            In the event that the Closing does not occur by January 22, 2007,
due to the Company's or the Investor's failure to satisfy the conditions set
forth in Sections 5 and 6 hereof (and the nonbreaching party's failure to waive
such unsatisfied conditions(s)), the nonbreaching party shall have the option to
terminate this Agreement at the close of business on such date without liability
of any party to any other party; PROVIDED, HOWEVER, if this Agreement is
terminated pursuant to this Section 7, the Company shall remain obligated to
reimburse the Investor for the expenses described in Section 4(d) above. Upon
such termination, the terms hereof shall be null and void and the parties shall
continue to comply with all terms and conditions of the Transaction Documents,
as in effect prior to the execution of this Agreement.

                                       10

<Page>

      8.    MISCELLANEOUS.

            (a)   COUNTERPARTS. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

            (b)   HEADINGS. The headings of this Agreement are for convenience
of reference and shall not form part of, or affect the interpretation of, this
Agreement.

            (c)   SEVERABILITY. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

            (d)   GOVERNING LAW; JURISDICTION; JURY TRIAL. All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by the internal laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in The City of New York, Borough of Manhattan,
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the
venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. If any provision of this
Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

            (e)   NO THIRD PARTY BENEFICIARIES. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

                                       11

<Page>

            (f)   FURTHER ASSURANCES. Each party shall do and perform, or cause
to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents,
as the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

            (g)   NO STRICT CONSTRUCTION. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.

            (h)   ENTIRE AGREEMENT; EFFECT ON PRIOR AGREEMENTS; AMENDMENTS.
Except for the Transaction Documents (to the extent any such Transaction
Document in effect prior to this Agreement is not amended by this Agreement),
this Agreement supersedes all other prior oral or written agreements between the
Investor, the Company, their affiliates and Persons acting on their behalf with
respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth
herein or therein, neither the Company nor the Investor makes any
representation, warranty, covenant or undertaking with respect to such matters.
No provision of this Agreement may be amended other than by an instrument in
writing signed by the Company. No provision hereof may be waived other than by
an instrument in writing signed by the party against whom enforcement is sought.
No consideration shall be offered or paid to any Person to amend or consent to a
waiver or modification of any provision of any of the Transaction Documents
unless the same consideration also is offered to all of the parties to the
Transaction Documents, holders of Notes or holders of the Warrants, as the case
may be. The Company has not, directly or indirectly, made any agreements with
any of the Investors relating to the terms or conditions of the transactions
contemplated by the Transaction Documents except as set forth in the Transaction
Documents.

            (i)   NOTICES. Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one Business Day
after deposit with an overnight courier service, in each case properly addressed
to the party to receive the same. The addresses and facsimile numbers for such
communications shall be:

            If to the Company:

                  Raptor Networks Technology, Inc.
                  1241 E. Dyer Road, Suite 150
                  Santa Ana, California 92705
                  Telephone:   (949) 623-9300
                  Facsimile:   (949) 623-9400
                  Attention:   Chief Executive Officer

                                       12

<Page>

            With a copy to:

                  Rutan & Tucker, LLP
                  611 Anton Blvd., 14th Floor
                  Costa Mesa, CA 92626
                  Telephone:   (714) 641-3464
                  Facsimile:   (714) 546-9035
                  Attention:   Thomas J. Crane, Esq.

If to the Investor, to its address and facsimile number set forth in the
Securities Schedule attached hereto, with copies to the Investor's
representatives as set forth on the Securities Schedule attached hereto or on
the signature page to this Agreement,

                with a copy (for informational purposes only) to:

                            _________________________
                            _________________________
                            _________________________
                            _________________________
                            _________________________

or to such other address and/or facsimile number and/or to the attention of such
other Person as the recipient party has specified by written notice given to
each other party five (5) days prior to the effectiveness of such change.
Written confirmation of receipt (A) given by the recipient of such notice,
consent, waiver or other communication, (B) mechanically or electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile number and an image of the first page of such transmission or (C)
provided by an overnight courier service shall be rebuttable evidence of
personal service, receipt by facsimile or receipt from an overnight courier
service in accordance with clause (i), (ii) or (iii) above, respectively.

            (j)   SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the parties and their respective successors and
assigns in accordance with the terms of the Existing Securities Purchase
Agreement.

            (k)   SURVIVAL. Unless this Agreement is terminated under Section 7,
the representations and warranties of the Company and the Investor contained
herein and the agreements and covenants set forth herein shall survive the
Closing.

            (l)   REMEDIES. The Investor and each holder of the Securities shall
have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any
other agreement or contract and all of the rights which such holders have under
any law. Any Person having any rights under any provision of this Agreement
shall be entitled to enforce such rights specifically (without posting a bond or
other security), to recover damages by reason of any breach of any provision of

                                       13

<Page>

this Agreement and to exercise all other rights granted by law. Furthermore, the
Company recognizes that in the event that it fails to perform, observe, or
discharge any or all of its obligations under this Agreement, any remedy at law
may prove to be inadequate relief to the Investor. The Company therefore agrees
that the Investor shall be entitled to seek temporary and permanent injunctive
relief in any such case without the necessity of proving actual damages and
without posting a bond or other security.

            (m)   INDEMNIFICATION. In consideration of the Investor's execution
and delivery of the Transaction Documents and acquiring the Securities
thereunder and in addition to all of the Company's other obligations under the
Transaction Documents, the Company shall defend, protect, indemnify and hold
harmless the Investor and each other holder of the Securities and all of their
stockholders, partners, members, officers, directors, employees and direct or
indirect investors and any of the foregoing Persons' agents or other
representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the
"INDEMNITEES") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including
reasonable attorneys' fees and disbursements (the "INDEMNIFIED LIABILITIES"),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any misrepresentation or breach of any representation or warranty made by the
Company in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby or
(c) any cause of action, suit or claim brought or made against such Indemnitee
by a third party (including for these purposes a derivative action brought on
behalf of the Company) and arising out of or resulting from (i) the execution,
delivery, performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, (ii) any
transaction financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of the issuance of the Securities, (iii) any
disclosure made by the Investor pursuant to Section 4(c), or (iv) the status of
the Investor or holder of the Securities as an investor in the Company pursuant
to the transactions contemplated by the Transaction Documents. To the extent
that the foregoing undertaking by the Company may be unenforceable for any
reason, the Company shall make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. Except as otherwise set forth herein, the mechanics and
procedures with respect to the rights and obligations under this Section 8(m)
shall be the same as those set forth in Section 6 of the Amended and Restated
Registration Rights Agreement. This Section 8(m) shall not apply to any
Indemnified Liabilities to the extent that such Indemnified Liabilities result
from or relate to the willful misconduct or gross negligence of the Investor.

            (n)   INDEPENDENT NATURE OF INVESTOR'S OBLIGATIONS AND RIGHTS. The
obligations of the Investor under any Transaction Document are several and not
joint with the obligations of any Other Investor, and the Investor shall not be
responsible in any way for the performance of the obligations of any Other
Investor under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by the Investor pursuant hereto,
shall be deemed to constitute the Investor and Other Investors as a partnership,

                                       14

<Page>

an association, a joint venture or any other kind of entity, or create a
presumption that the Investor and Other Investors are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated by the Transaction Documents. The Company and the Investor confirm
that the Investor has independently participated in the negotiation of the
transactions contemplated hereby with the advice of its own counsel and
advisors. The Investor shall be entitled to independently protect and enforce
its rights, including, without limitation, the rights arising out of this
Agreement or out of any other Transaction Documents, and it shall not be
necessary for any Other Investor to be joined as an additional party in any
proceeding for such purpose.

                            [SIGNATURE PAGE FOLLOWS]

                                       15

<Page>

            IN WITNESS WHEREOF, the Investor and the Company have caused their
respective signature page to this Agreement to be duly executed as of the date
first written above.

                                COMPANY:

                                RAPTOR NETWORKS TECHNOLOGY, INC.

                                By:  /s/ Thomas M. Wittenschlaeger
                                     -----------------------------------
                                     Name: Thomas M. Wittenschlaeger
                                     Title: Chief Executive Officer

                                       16

<Page>

            IN WITNESS WHEREOF, the Investor and the Company have caused their
respective signature page to this Agreement to be duly executed as of the date
first written above.

                                INVESTOR:

                                By:  /s/ [Authorized Representative of Investor]
                                     -------------------------------------------
                                     Name:
                                     Title:

                                Copy to:

                                ____________________________
                                ____________________________
                                ____________________________
                                ____________________________
                                ____________________________

    [Signature Page to Amended and Restated Amendment and Exchange Agreement]

                                       17

<Page>
<TABLE>
<CAPTION>

                                        SECURITIES SCHEDULE

      (1)                    (2)               (3)             (4)           (5)         (6)
                                                                                      AGGREGATE
                                            AGGREGATE       NUMBER OF     NUMBER OF   PRINCIPAL
                                         PRINCIPAL AMOUNT   SERIES L-1   SERIES M-1   AMOUNT OF
                         ADDRESS AND      OF AMENDED AND     WARRANT       WARRANT    ADDITIONAL
   INVESTOR           FACSIMILE NUMBER    RESTATED NOTES     SHARES        SHARES       NOTES
--------------------------------------------------------------------------------------------------
<S>                   <C>                   <C>            <C>          <C>           <C>
CASTLERIGG MASTER     c/o Sandell Asset     $4,322,946     13,652,498    4,437,062    $1,600,000
INVESTMENTS LTD.      Management
                     ----------------
                      40 West 57th St
                      26th Floor
                      New York, NY 10019
                      Attention: Cem
                      Hacioglu/Matthew
                      Pliskin
                      Fax: 212-603-5710
                      Telephone:
                      212-603-5700
                      Residence: British
                      Virgin Islands

CEDAR HILL CAPITAL    747 Third Avenue,     $1,556,260      4,914,899    1,597,342            NA
PARTNERS ONSHORE, LP  33rd Floor
                      New York, NY 10017
                      Attention: Charles
                      Cascarilla
                      Facsimile:
                      (212) 821-1492
                      Telephone:
                      (212) 821-1491
                      Residence:
                      New York

CEDAR HILL CAPITAL    747 Third Avenue,     $1,325,703      4,186,766    1,360,699            NA
PARTNERS OFFSHORE,    33rd Floor
LTD.                  New York, NY 10017
                      Attention: Charles
                      Cascarilla
                      Facsimile:
                      (212) 821-1492
                      Telephone:
                      (212) 821-1491
                      Residence:
                      Cayman Islands

     (1)                   (7)          (8)          (9)             (10)
                                                                     LEGAL
                       NUMBER OF     NUMBER OF                  REPRESENTATIVE'S
                       SERIES L-2    SERIES M-2                   ADDRESS AND
                         WARRANT      WARRANT      PURCHASE        FACSIMILE
   INVESTOR              SHARES       SHARES        PRICE            NUMBER
-----------------------------------------------------------------------------------------------

CASTLERIGG MASTER      7,281,332     2,366,433    $1,600,000   Schulte Roth & Zabel LLP
INVESTMENTS LTD.                                               919 Third Avenue
                                                               New York, New York 10022
                                                               Attention: Eleazer Klein, Esq.
                                                               Facsimile: (212) 593-5955
                                                               Telephone: (212) 756-2376

CEDAR HILL CAPITAL            NA            NA            NA   Sadis & Goldberg LLC
PARTNERS ONSHORE, LP                                           551 5th Avenue
                                                               New York, New York 10176
                                                               Attention: Ron Geffner, Esq.
                                                               Facsimile: (212) 947-3796
                                                               Telephone: (212) 947-3793

CEDAR HILL CAPITAL            NA            NA            NA   Sadis & Goldberg LLC
PARTNERS OFFSHORE,                                             551 5th Avenue
LTD.                                                           New York, New York 10176
                                                               Attention: Ron Geffner, Esq.
                                                               Facsimile: (212) 947-3796
                                                               Telephone: (212) 947-3793
</TABLE>

              [Signature Page to Amendment and Exchange Agreement]

                                       18

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