Document:

EXHIBIT 10.6

                                                                        ANNEX IV
                                                                              TO
                                                             SECURITIES PURCHASE
                                                                       AGREEMENT

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT, dated as of August 1, 2005 (this
"Agreement"),  is made by and between SUPERCLICK, INC., a Washington corporation
with  headquarters  located at 4275 Executive  Square,  Suite 215, La Jolla,  CA
92037 (the  "Company"),  and each entity named on a signature page hereto (each,
an "Initial  Investor")  (each agreement with an Initial Investor being deemed a
separate  and  independent  agreement  between  the  Company  and  such  Initial
Investor,  except that each Initial  Investor  acknowledges  and consents to the
rights granted to each other Initial Investor under such agreement).

                              W I T N E S S E T H:

            WHEREAS,  upon  the  terms  and  subject  to the  conditions  of the
Securities Purchase Agreement,  dated as of the date hereof, between the Initial
Investor and the Company (the "Securities Purchase Agreement"; capitalized terms
not  otherwise  defined  herein shall have the meanings  ascribed to them in the
Securities Purchase Agreement),  the Company has agreed to issue and sell to the
Initial Investors the Debentures and the Warrants; and

            WHEREAS,  the Debentures are convertible into shares of Common Stock
(the  "Conversion  Shares";  which term, for purposes of this  Agreement,  shall
include  shares of  Common  Stock of the  Company  issuable  in lieu of  accrued
interest through the Maturity Date of the Debentures, as that term is defined in
and as  contemplated  by the  Debentures)  upon the  terms  and  subject  to the
conditions contained in the Debentures; and

            WHEREAS,  the Warrant  Shares may be issued upon the exercise of the
Warrants; and

            WHEREAS,  to induce the Initial  Investor to execute and deliver the
Securities  Purchase  Agreement,  the  Company  has  agreed to  provide  certain
registration rights under the Securities Act of 1933, as amended,  and the rules
and regulations thereunder, or any similar successor statute (collectively,  the
"Securities  Act"),  with  respect to the  Registrable  Securities  (as  defined
below);

            NOW,  THEREFORE,  in  consideration  of the  premises and the mutual
covenants  contained  herein  and other  good and  valuable  consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  the Company and the
Initial Investor hereby agree as follows:

            1. Definitions. As used in this Agreement, the following terms shall
have the following meanings:

<PAGE>

            "Company Counsel" means Michael Corrigan, Esq..

            "Effective  Date"  means the date the SEC  declares  a  Registration
Statement covering  Registrable  Securities and otherwise meeting the conditions
contemplated hereby to be effective.

            "Held Shares  Value" means,  for shares of Common Stock  acquired by
the  Investor  upon a  conversion  of a  Debenture  within the thirty  (30) days
preceding  the  Restricted  Sale  Date,  but not yet sold by the  Investor,  the
principal  amount  of the  Debentures  converted  into such  Conversion  Shares;
provided,  however,  that if the Investor effected more than one such conversion
during such thirty  (30) day period and sold less than all of such  shares,  the
sold  shares  shall be deemed to be derived  first from the  conversions  in the
sequence of such conversions  (that is, for example,  until the number of shares
from the first of such conversions have been sold, all shares shall be deemed to
be from the first conversion;  thereafter,  from the second conversion until all
such shares are sold).

            "Increased  Conversion  or  Warrant  Shares"  means  the good  faith
estimate of number of shares which the Company  anticipates  will be issuable to
the Holder as a result of an adjustment to the Conversion Price or the number of
Warrant Shares  resulting from the application of Section 4(g) of the Securities
Purchase Agreement.

            "Initial Closing Date" means August 1, 2005, the initial date of the
closing of the transactions contemplated by the Securities Purchase Agreement.

            "Investor" means the Initial  Investor and any permitted  transferee
or assignee who agrees to become bound by the  provisions  of this  Agreement in
accordance  with  Section  9 hereof  and who  holds  Debentures  or  Registrable
Securities.

            "Other Issuable Shares" means (i) the Payment Shares, if any, issued
or  issuable  to the  Holder as of the date of the  filing  of the  Registration
Statement and any amendment  thereto or any  subsequent  date, and (ii) the good
faith  estimate of the Company of the number of the other Payment  Shares and/or
Increased  Conversion or Warrant  Shares,  as the case may be, which the Company
anticipates,  as of the date of the filing of the Registration Statement and any
amendment thereto,  will be issuable to the Holder pursuant to the provisions of
the Transaction Agreements.

            "Payment  Shares" means shares of Common Stock issued by the Company
as provided in Section 2(b) below.

            "Permitted  Selling  Shareholders" has the meaning ascribed to it in
Schedule 1 annexed hereto.

            "Permitted  Suspension  Period"  means not more than two (2) periods
during any  consecutive  12-month period during which the Holder's right to sell
Registrable Securities under the Registration Statement is suspended,  provided,
however,  that each of such  periods  shall  neither (i) be for more than twenty
(20) days nor (ii) begin less than ten (10)  Trading  Days after the last day of
the  preceding  suspension  period  (whether  or not such last day was during or
after a Permitted Suspension Period).

<PAGE>

            "Potential  Material  Event"  means  any of the  following:  (i) the
possession by the Company of material  information  not ripe for disclosure in a
registration statement, which shall be evidenced by determinations in good faith
by the Board of Directors of the Company that disclosure of such  information in
the  registration  statement would be detrimental to the business and affairs of
the Company;  or (ii) any material  engagement  or activity by the Company which
would, in the good faith determination of the Board of Directors of the Company,
be adversely  affected by disclosure in a  registration  statement at such time,
which  determination  shall be accompanied by a good faith  determination by the
Board of  Directors  of the Company  that the  registration  statement  would be
materially misleading absent the inclusion of such information.

            "Register," "Registered," and "Registration" refer to a registration
effected by  preparing  and filing a  Registration  Statement or  Statements  in
compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any  successor  rule  providing  for offering  securities on a continuous
basis ("Rule 415"),  and the  declaration or ordering of  effectiveness  of such
Registration Statement by the SEC.

            "Registrable Securities" means, collectively, the Conversion Shares,
the Warrant Shares, and the Other Issuable Shares.

            "Registration  Statement"  means  a  registration  statement  of the
Company under the Securities Act covering  Registrable  Securities on Form SB-2,
if the Company is then eligible to file using such form, and if not eligible, on
Form S-1 or other appropriate form.

            "Required  Effective Date" means,  initially,  the Initial  Required
Effective  Date and  thereafter  the Increased  Required  Effective  Date or the
Post-Maturity  Date  Effective Date (as those terms are defined  below),  as the
case may be.

            "Required  Filing  Date"  means  (i)  with  respect  to the  initial
Registration  Statement,  the  date as soon as  practicable  after  the  Initial
Closing Date but no later than thirty (30) days after the Initial  Closing Date,
(ii) with respect to a Registration Statement filed with respect to an Increased
Registered  Shares Date,  the Increased  Shares  Required  Filing Date (as those
terms are  defined  below),  and (iii)  with  respect  to a  Post-Maturity  Date
Registration  Statement,  the Post-Maturity  Date Required Filing Date (as those
terms are defined below).

            "Restricted  Sale  Date"  means the first  date,  other  than a date
during a Permitted  Suspension  Period (as defined below), on which the Investor
is  restricted  from  making  sales of  Registrable  Securities  covered  by any
previously effective Registration Statement.

<PAGE>

            2. Registration.

            (a) Mandatory Registration.

            (i) The  Company  shall  prepare  and file with the SEC,  as soon as
practicable after the Initial Closing Date but no later than the Required Filing
Date,  a  Registration  Statement  registering  for  resale  by the  Investor  a
sufficient  number of shares of Common  Stock for the Initial  Investors to sell
the  Registrable  Securities.  Notwithstanding  the  requirement to register all
Registrable  Securities,  the Company's  obligation to register the  Registrable
Securities  shall  initially  be satisfied  by the  registration  of the Initial
Number of Shares to Be Registered  (as defined  below).  The "Initial  Number of
Shares to Be Registered" is a number of shares of Common Stock which is at least
equal to the sum of (x) two hundred  percent (200%) of the number of shares into
which the Debentures and all interest thereon through the second  anniversary of
the  Initial  Closing  Date would be  convertible  at the time of filing of such
Registration  Statement (assuming for such purposes that all Debentures had been
eligible to be converted,  and had been  converted,  into  Conversion  Shares in
accordance  with  their  terms,  whether  or not such  eligibility,  accrual  of
interest or conversion had in fact occurred as of such date) based on an assumed
Conversion Price of $0.30 per share, (y) the number of Warrant Shares covered by
the Warrants (assuming for such purposes that all the Warrants had been eligible
to be exercised  and had been  exercised  for the issuance of Warrant  Shares in
accordance with their terms,  whether or not such eligibility or exercise had in
fact occurred as of such date),  and (z) the number of Other Issuable  Shares as
of the date of the filing of the Registration Statement or any amendment thereto
(provided,  however,  that for purposes of this  provision,  the number of Other
Issuable  Shares  shall not be greater  than the number of such shares which the
SEC permits to be  included in the  Registration  Statement).  Unless  otherwise
specifically  agreed to in writing in advance by the  Holder,  the  Registration
Statement (W) shall include only (1) the Registrable Securities,  (2) the shares
issuable on exercise of warrants  issued to the  Placement  Agent in  connection
with the transactions contemplated by the Transaction Agreements,  and (3) up to
100,000  shares  of  Common  Stock  held by Jason  Sundar  (President  of Sundar
Communications  Group,  Inc.), and (X) shall also state that, in accordance with
Rule 416 and 457 under the  Securities  Act, it also  covers such  indeterminate
number  of  additional  shares  of  Common  Stock as may  become  issuable  upon
conversion  of the  Purchased  Shares,  exercise of the Warrants or issuances of
Other  Issuable  Securities  covered by such  Registration  Statement to prevent
dilution resulting from stock splits, stock dividends or similar transactions.

            (ii) The Company will use its reasonable  best efforts to cause such
Registration Statement to be declared effective on a date (the "Initial Required
Effective  Date")  which is no later than the earlier of (Y) five (5) days after
oral or written  notice by the SEC that it may be declared  effective or (Z) one
hundred (100) days after the Initial Closing Date.

            (iii) If at any time (an "Increased  Registered  Shares Date"),  the
number of shares of Common  Stock  represented  by the  Registrable  Securities,
issued or to be issued as contemplated by the  Transaction  Agreements,  exceeds
eighty  percent  (80%) of the  aggregate  number of shares of Common  Stock then
registered or sought to be registered in a Registration  Statement which has not
yet been declared effective, the Company shall either

<PAGE>

      (X)  amend  the  relevant  Registration  Statement  filed  by the  Company
      pursuant  to  the  preceding   provisions  of  this  Section  2,  if  such
      Registration  Statement has not been declared effective by the SEC at that
      time,  to register the  Increased  Number of Shares to Be  Registered  (as
      defined  below).  The  "Increased  Number of Shares to Be Registered" is a
      number of shares of Common Stock which is at least equal to (A) the number
      of shares,  if any,  theretofore  issued on conversion  of the  Debentures
      (including  any interest  paid on conversion by the issuance of Conversion
      Shares)  and on  exercise  of the  Warrants,  plus  (B) the sum of (x) two
      hundred  percent (200%) of the number of shares into which the unconverted
      Debentures and all interest thereon through the second  anniversary of the
      Initial  Closing Date would be  convertible  at the time of filing of such
      amendment (assuming for such purposes that all Debentures,  reduced by any
      previously converted  Debentures,  had been eligible to be converted,  and
      had been converted, into Conversion Shares in accordance with their terms,
      whether  or  not  such  issuance,  eligibility,  accrual  of  interest  or
      conversion  had in fact occurred as of such date) based on the  Conversion
      Price in effect on, or within  three (3)  Trading  Days prior to, the date
      the amendment to the  Registration  Statement is filed (except that, if at
      the time  the  Company  requests  that the SEC  declare  the  Registration
      Statement to be effective, if, assuming that the date of such request were
      the Effective Date, the Conversion Price would be lower, this component of
      the Increased Number of Shares to Be Registered shall be adjusted based on
      such lower Conversion  Price, and the Company shall amend the Registration
      Statement  accordingly),  (y) the number of Warrant  Shares covered by the
      unexercised  Warrants  (assuming  for such purposes that all the Warrants,
      reduced by any exercised  Warrants,  had been eligible to be exercised and
      had been exercised for the issuance of Warrant  Shares in accordance  with
      their terms, whether or not such issuance,  eligibility or exercise had in
      fact occurred as of such date), (z) the number of Other Issuable Shares as
      of the date of the filing of the  Registration  Statement or any amendment
      thereto  (provided,  however,  that for  purposes of this  provision,  the
      number of Other  Issuable  Shares  shall not be greater than the number of
      such  shares  which the SEC  permits to be  included  in the  Registration
      Statement), or

      (Y) if such Registration  Statement has been declared effective by the SEC
      at that time, file with the SEC an additional  Registration  Statement (an
      "Additional  Registration  Statement")  to  register  the number of shares
      equal to the excess of the Increased  Number of Shares to Be Registered as
      determined in the preceding  subparagraph  (X) (where the number of shares
      determined by clause (B)(x) of such  definition is based on the Conversion
      Price in effect on, or within  three (3)  Trading  Days prior to, the date
      the additional Registration Statement (or any amendment thereto) is filed,
      over the aggregate number of shares of Common Stock already registered.

<PAGE>

The Company shall file such Registration Statement within thirty (30) days after
the Increased  Registered  Shares Date (the  "Increased  Shares  Required Filing
Date").  The  Company  will  use its  reasonable  best  efforts  to  cause  such
Registration  Statement to be declared  effective on a date (each, an "Increased
Required  Effective  Date")  which  is no  later  than  (q)  with  respect  to a
Registration  Statement under clause (X) of this subparagraph  (ii), the Initial
Required  Effective  Date and (r) with  respect  to an  Additional  Registration
Statement,  the earlier of (I) five (5) days after notice by the SEC that it may
be declared  effective or (II) thirty (30) days after the  Increased  Registered
Shares Date.

            (iv) In addition to, and not in lieu of, any other provision hereof,
if the Company has not timely given a Maturity  Date Payment  Notice (as defined
in the Debenture),  the Company shall file, by the date (the  Post-Maturity Date
Required  Filing  Date")  which is no later  than  thirty  (30) days  before the
Maturity  Date,  either  an  amendment  (if  available)  or a  new  registration
statement to register the  Post-Maturity  Date Number of Shares to Be Registered
(as defined below). The  "Post-Maturity  Date Number of Shares to Be Registered"
is a number of shares of Common  Stock which is at least equal to (A) the number
of shares, if any, theretofore issued on conversion of the Debentures (including
any interest paid on  conversion  by the issuance of  Conversion  Shares) and on
exercise of the Warrants which are still held by the Holder, plus (B) the sum of
(x)  two  hundred  percent  (200%)  of the  number  of  shares  into  which  the
unconverted  Debentures and all interest thereon through the second  anniversary
of the Initial  Closing Date would be  convertible at the time of filing of such
amendment  (assuming  for such  purposes  that all  Debentures,  reduced  by any
previously converted Debentures, had been eligible to be converted, and had been
converted, into Conversion Shares in accordance with their terms, whether or not
such  issuance,  eligibility,  accrual of  interest  or  conversion  had in fact
occurred as of such date) based on the Conversion  Price in effect on, or within
three (3) Trading  Days prior to, the date such  amendment  or new  Registration
Statement is filed (except that, if at the time the Company  subsequently  files
an amendment thereto, the Conversion Price would be lower, this component of the
Post-Maturity  Date Number of Shares to Be Registered shall be adjusted based on
such lower  Conversion  Price,  and the  Company  shall  amend the  Registration
Statement  accordingly),  (y)  the  number  of  Warrant  Shares  covered  by the
unexercised Warrants (assuming for such purposes that all the Warrants,  reduced
by any  exercised  Warrants,  had been  eligible  to be  exercised  and had been
exercised  for the issuance of Warrant  Shares in  accordance  with their terms,
whether or not such issuance, eligibility or exercise had in fact occurred as of
such date), (z) the number of Other Issuable Shares as of the date of the filing
of  such  amendment  or new  Registration  Statement  or any  amendment  thereto
(provided,  however,  that for purposes of this  provision,  the number of Other
Issuable  Shares  shall not be greater  than the number of such shares which the
SEC permits to be included in the Registration Statement).  The Company will use
its reasonable best efforts to cause such Registration  Statement to be declared
effective on a date (each, a "Post-Maturity  Required  Effective Date") which is
no later than the  earlier of (i) five (5) days after  notice by the SEC that it
may be declared effective or (ii) thirty (30) days after the Maturity Date.

            (b) Payments by the Company.

            (i)  If  the   Registration   Statement   covering  the  Registrable
Securities is not filed as  contemplated  by this  Agreement with the SEC by the
Required  Filing Date, the Company will make payment to the Initial  Investor in
such amounts and at such times as shall be  determined  pursuant to this Section
2(b).

<PAGE>

            (ii)  If  the  Registration   Statement   covering  the  Registrable
Securities is not effective by the relevant Required  Effective Date or if there
is a Restricted  Sale Date,  then the Company will make  payments to the Initial
Investor in such  amounts and at such times as shall be  determined  pursuant to
this Section 2(b).

            (iii) The amount (the  "Periodic  Amount") to be paid by the Company
to the Initial  Investor  shall be  determined as of each  Computation  Date (as
defined below) and such amount shall be equal to the Periodic Amount  Percentage
(as defined below) of the Stated Value of the Holder's  Purchased Shares for the
period from the date following the relevant Required Filing Date or the Required
Effective  Date or a  Restricted  Sale  Date,  as the case may be,  to the first
relevant  Computation  Date, and thereafter to each subsequent  Computation Date
(each such period, a "Computation  Period").  The "Periodic  Amount  Percentage"
means  two  percent  (2%) of the  Purchase  Price  of all  Debentures  for  each
Computation  Period (and pro rata for any Computation  Period which is less than
thirty (30) days).  Anything in the preceding provisions of this paragraph (iii)
to the contrary notwithstanding,  after the relevant Effective Date the Purchase
Price  shall be  deemed to refer to the sum of (X) the  principal  amount of all
Debentures  not  yet  converted  and  (Y)  the  Held  Shares  Value.  By  way of
illustration  and  not in  limitation  of  the  foregoing,  if the  Registration
Statement  is filed on or before the Required  Filing Date,  but is not declared
effective  until  seventy-five  (75) days after the Initial  Required  Effective
Date, the Periodic Amount will aggregate five percent (5%) of the Purchase Price
of the  Debentures (2% for days 1-30,  plus 2% for days 31-60,  plus 1% for days
61-75).

            (iv) Each Periodic  Amount,  if any, will be payable by the Company,
except  as  provided  in the  other  provisions  of the  immediately  succeeding
subparagraph (v), in cash or other  immediately  available funds to the Investor
on the  third  Trading  Day  after  the  relevant  Computation  Period,  without
requiring demand therefor by the Investor.

            (v)  Notwithstanding  the  provisions of the  immediately  preceding
subparagraph (iv),

      (A) at the option of the Company,  exercisable  in its  discretion  on the
      date the Periodic Amount is due (provided,  however,  that the Company may
      exercise  this  discretion  if,  but only if, the  Registration  Statement
      covering the Payment Shares is then effective); or

      (B) at the option of the Investor, exercisable in its sole and absolute
      discretion by written notice to the Company at any time before the
      Periodic Amount is paid,

all or a  portion  of the  Periodic  Amount  shall  be paid by the  issuance  of
additional  shares of Common  Stock to the  Investor  ("Payment  Shares")  in an
amount  equal  to  the  Periodic  Amount  being  paid  thereby  divided  by  the
then-applicable  Conversion Price; provided,  further that the Delivery Date for
the Payment  Shares  shall be three (3) Trading Days after the date the Periodic
Amount is due (if the  election is made by the  Company)  or after the  Investor
gives  the  notice  contemplated  by  clause  (ii)  of  this  subparagraph.  The
provisions of Section 5(b)(i) of the Securities  Purchase  Agreement shall apply
to the delivery of the  certificates of the Payment Shares based on the relevant
Periodic Amount.

<PAGE>

            (vi) The parties  acknowledge that the damages which may be incurred
by the  Investor  if the  Registration  Statement  is not filed by the  Required
Filing Date or the Registration  Statement has not been declared  effective by a
Required Effective Date,  including if the right to sell Registrable  Securities
under a previously effective  Registration  Statement is suspended or the shares
of the Company's stock are not listed on the Principal  Trading  Market,  may be
difficult to ascertain.  The parties agree that the amounts payable  pursuant to
the foregoing provisions of this Section 2(b) represent a reasonable estimate on
the part of the parties, as of the date of this Agreement, of the amount of such
damages.

            (vii)  Notwithstanding  the  foregoing,  the amounts  payable by the
Company  pursuant to this provision shall not be payable to the extent any delay
in the filing or effectiveness  of the Registration  Statement occurs because of
an act of, or a failure to act or to act timely by the  Initial  Investor or its
counsel.

            (viii) "Computation Date" means (A) the date which is the earlier of
(1) thirty (30) days after the Required Filing Date, the Required Effective Date
or a  Restricted  Sale  Date,  as the case may be,  or (2) the  date  after  the
Required  Filing Date, the Required  Effective  Date or Restricted  Sale Date on
which the  Registration  Statement  is filed (with  respect to  payments  due as
contemplated  by Section  2(b)(i)  hereof) or is declared  effective  or has its
restrictions  removed  or the  shares of the  Company's  stock are listed on the
Principal  Trading  Market  (with  respect to payments  due as  contemplated  by
Section  2(b)(ii)  hereof),  as the case may be,  and (B) each date which is the
earlier of (1) thirty (30) days after the previous  Computation  Date or (2) the
date after the previous Computation Date on which the Registration  Statement is
filed (with respect to payments due as  contemplated  by Section 2(b)(i) hereof)
or is declared  effective or has its  restrictions  removed or the shares of the
Company's  stock are listed on the  Principal  Trading  Market (with  respect to
payments due as contemplated by Section 2(b)(ii) hereof), as the case may be.

<PAGE>

            3.  Obligations of the Company.  In connection with the registration
of the Registrable Securities, the Company shall do each of the following:

            (a) Prepare  promptly,  and file with the SEC by the Required Filing
Date a  Registration  Statement  with  respect  to not less  than the  number of
Registrable  Securities  provided in Section 2(a) above,  and thereafter use its
reasonable  best  efforts  to cause  such  Registration  Statement  relating  to
Registrable  Securities to become  effective by the Required  Effective Date and
keep the  Registration  Statement  effective at all times during the period (the
"Registration  Period")  continuing  until the  earlier of (i) the date when the
Investors may sell all Registrable  Securities  under Rule 144 without volume or
other restrictions or limits or (ii) the date the Investors no longer own any of
the  Registrable   Securities,   which  Registration  Statement  (including  any
amendments or supplements thereto and prospectuses  contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated  therein or necessary to make the statements  therein,  in
light of the circumstances in which they were made, not misleading;

            (b)  Prepare  and  file  with  the SEC  such  amendments  (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus  used  in  connection  with  the  Registration  Statement  as  may be
necessary to keep the Registration  Statement  effective at all times during the
Registration  Period,  and,  during the  Registration  Period,  comply  with the
provisions  of  the  Securities  Act  with  respect  to the  disposition  of all
Registrable  Securities  of the Company  covered by the  Registration  Statement
until such time as all of such  Registrable  Securities have been disposed of in
accordance  with the intended  methods of  disposition  by the seller or sellers
thereof as set forth in the Registration Statement;

            (c)  Permit a  single  firm of  counsel  designated  by the  Initial
Investors (which, until further notice, shall be deemed to be Wildman,  Harrold,
Allen & Dixon LLP, Attn: Alan B. Roth, Esq., which firm has requested to receive
such  notification;  each, an "Investor's  Counsel") to review the  Registration
Statement and all amendments and supplements thereto a reasonable period of time
(but not less than three (3) Trading  Days) prior to their  filing with the SEC,
and not file any document in a form to which such counsel reasonably objects;

            (d) Notify each Investor and the Investor's Counsel and any managing
underwriters immediately (and, in the case of clause (i)(A) below, not less than
three (3)  Trading  Days prior to such  filing)  and (if  requested  by any such
person)  confirm  such  notice in  writing  no later  than one (1)  Trading  Day
following  the day (i)(A) when a  Prospectus  or any  Prospectus  supplement  or
post-effective  amendment to the Registration Statement is proposed to be filed;
(B) whenever the SEC  notifies the Company  whether  there will be a "review" of
such   Registration   Statement;   (C)  whenever  the  Company  receives  (or  a
representative  of the  Company  receives  on its  behalf)  any oral or  written
comments from the SEC in respect of a Registration  Statement (copies or, in the
case of oral comments, summaries of such comments shall be promptly furnished by
the  Company  to the  Investors);  and  (D)  with  respect  to the  Registration
Statement or any post-effective  amendment,  when the same has become effective;
(ii) of any  request  by the SEC or any  other  Federal  or  state  governmental
authority  for  amendments  or  supplements  to the  Registration  Statement  or
Prospectus or for  additional  information;  (iii) of the issuance by the SEC of

<PAGE>

any stop  order  suspending  the  effectiveness  of the  Registration  Statement
covering  any or all of the  Registrable  Securities  or the  initiation  of any
proceedings for that purpose;  (iv) if at any time any of the representations or
warranties of the Company contained in any agreement (including any underwriting
agreement)  contemplated  hereby  ceases to be true and correct in all  material
respects;  (v) of the receipt by the Company of any notification with respect to
the suspension of the  qualification  or exemption from  qualification of any of
the Registrable  Securities for sale in any  jurisdiction,  or the initiation or
threatening of any  proceeding  for such purpose;  and (vi) of the occurrence of
any event that to the best  knowledge of the Company makes any statement made in
the Registration  Statement or Prospectus or any document incorporated or deemed
to be incorporated  therein by reference  untrue in any material respect or that
requires  any  revisions  to the  Registration  Statement,  Prospectus  or other
documents so that, in the case of the Registration  Statement or the Prospectus,
as the case may be, it will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made,  not  misleading.  In addition,  the Company  shall  communicate  with the
Investor's Counsel with regard to its proposed written responses to the comments
contemplated  in  clause  (C) of this  Section  3(d),  so  that,  to the  extent
practicable, the Investors shall have the opportunity to comment thereon;

            (e) Furnish to each Investor and to Investor's  Counsel (i) promptly
after the same is  prepared  and  publicly  distributed,  filed with the SEC, or
received  by the  Company,  one (1)  copy of the  Registration  Statement,  each
preliminary prospectus and prospectus, and each amendment or supplement thereto,
and  (ii)  such  number  of  copies  of a  prospectus,  and all  amendments  and
supplements  thereto and such other  documents,  as such Investor may reasonably
request in order to facilitate  the  disposition of the  Registrable  Securities
owned by such Investor;

            (f) As promptly as practicable after becoming aware thereof,  notify
each Investor of the happening of any event of which the Company has  knowledge,
as a result of which the prospectus included in the Registration  Statement,  as
then in effect,  includes  an untrue  statement  of a material  fact or omits to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  in light of the circumstances  under which they were made,
not  misleading,  and use its best efforts  promptly to prepare a supplement  or
amendment to the Registration Statement or other appropriate filing with the SEC
to correct such untrue statement or omission,  and deliver a number of copies of
such  supplement or amendment to each  Investor as such Investor may  reasonably
request;

            (g) As promptly as practicable after becoming aware thereof,  notify
each Investor who holds  Registrable  Securities being sold (or, in the event of
an underwritten  offering, the managing underwriters) of the issuance by the SEC
of a Notice of Effectiveness or any notice of effectiveness or any stop order or
other  suspension  of the  effectiveness  of the  Registration  Statement at the
earliest possible time;

            (h) Comply  with  Regulation  FD or any similar  rule or  regulation
regarding  the  dissemination  of  information  regarding  the  Company,  and in
furtherance of the foregoing, and not in limitation thereof, not disclose to the
Investor any non-public material information regarding the Company;

<PAGE>

            (i)  Notwithstanding  the foregoing,  if at any time or from time to
time after the date of effectiveness of the Registration Statement,  the Company
notifies the  Investors in writing that the  effectiveness  of the  Registration
Statement is suspended for any reason, whether due to a Potential Material Event
or otherwise,  the Investors shall not offer or sell any Registrable Securities,
or engage in any other  transaction  involving  or relating  to the  Registrable
Securities,  from the time of the  giving of such  notice  until  such  Investor
receives  written  notice from the Company  that such the  effectiveness  of the
Registration Statement has been restored, whether because the Potential Material
Event has been  disclosed to the public or it no longer  constitutes a Potential
Material  Event or  otherwise;  provided,  however,  that the Company may not so
suspend the right to such holders of Registrable  Securities  during the periods
the  Registration  Statement  is  required  to be in effect  other than during a
Permitted Suspension Period (and the applicable provisions of Section 2(b) shall
apply  with  respect  to any such  suspension  other  than  during  a  Permitted
Suspension Period);

            (j)  Use  its   reasonable   efforts  to  secure  and  maintain  the
designation  of all  the  Registrable  Securities  covered  by the  Registration
Statement on the Principal  Trading Market and the quotation of the  Registrable
Securities on the Principal Trading Market;

            (k) Provide a transfer agent ("Transfer Agent") and registrar, which
may be a single  entity,  for the  Registrable  Securities  not  later  than the
initial Effective Date;

            (l) Cooperate  with the Investors  who hold  Registrable  Securities
being offered to facilitate the timely  preparation and delivery of certificates
for the  Registrable  Securities  to be  offered  pursuant  to the  Registration
Statement and enable such  certificates for the Registrable  Securities to be in
such  denominations  or  amounts  as the  case  may  be,  as the  Investors  may
reasonably  request,  and,  within  five (5) Trading  Days after a  Registration
Statement which includes Registrable Securities is ordered effective by the SEC,
the Company shall deliver, and shall cause legal counsel selected by the Company
to deliver, to the Transfer Agent for the Registrable Securities (with copies to
the Investors  whose  Registrable  Securities are included in such  Registration
Statement) an appropriate  instruction and opinion of such counsel,  which shall
include,  without  limitation,   directions  to  the  Transfer  Agent  to  issue
certificates of Registrable  Securities(including  certificates  for Registrable
Securities to be issued after the Effective  Date and  replacement  certificates
for  Registrable   Securities   previously  issued)  without  legends  or  other
restrictions,  subject to  compliance  with  applicable  law and other rules and
regulations, including, without limitation, prospectus delivery requirements;

            (m) Take all  other  reasonable  administrative  steps  and  actions
(including  the  participation  of Company  counsel)  necessary  to expedite and
facilitate disposition by the Investor of the Registrable Securities pursuant to
the  Registration  Statement;  provided,  however,  that the foregoing  does not
require that the Company take any steps whatsoever  regarding the identification
or selection of a broker to sell the Registrable Securities,  the identification
of buyers of the Registrable Securities, or the negotiation of the sale terms of
the Registrable Securities; and

<PAGE>

            (n) Not  file  any  other  registration  statement  (other  than the
Registration  Statement and amendments  thereto) during the period commencing on
the Initial Closing Date and ending on the Effective Date.

            4. Obligations of the Investors. In connection with the registration
of  the  Registrable   Securities,   the  Investors  shall  have  the  following
obligations:

            (a) Each Investor,  by such Investor's acceptance of the Registrable
Securities,  agrees to cooperate with the Company as reasonably requested by the
Company  in  connection  with the  preparation  and  filing of the  Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such  Investor's  election  to  exclude  all  of  such  Investor's   Registrable
Securities from the Registration Statement; and

            (b) Each Investor  agrees that,  upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(f), (g)
or  (i)  above,  such  Investor  will  immediately  discontinue  disposition  of
Registrable  Securities  pursuant to the  Registration  Statement  covering such
Registrable  Securities  until  such  Investor's  receipt  of the  copies of the
supplemented  or amended  prospectus  contemplated  by Section 3(f), (g) or (i),
and, if so directed by the Company,  such Investor  shall deliver to the Company
(at the  expense of the  Company)  or  destroy  (and  deliver  to the  Company a
certificate of  destruction)  all copies in such Investor's  possession,  of the
prospectus  covering such Registrable  Securities current at the time of receipt
of such notice.

            5. Expenses of  Registration.  All reasonable  expenses  (other than
underwriting  discounts and commissions of the Investor)  incurred in connection
with  registrations,  filings  or  qualifications  pursuant  to  Section  3, but
including,  without limitation,  all registration,  listing,  and qualifications
fees,  printers and accounting  fees, the fees and  disbursements of counsel for
the  Company  shall be borne by the  Company.  In  addition,  a fee for a single
counsel for the Investors (as a group and not individually)  equal to $5,000 for
the review of each Registration Statement shall be borne by the Company.

            6.  Indemnification.  In the event any  Registrable  Securities  are
included in a Registration Statement under this Agreement:

            (a) To the extent  permitted by law, the Company will  indemnify and
hold  harmless  each  Investor  who  holds  such  Registrable  Securities,   the
directors, if any, of such Investor, the officers, if any, of such Investor, and
each Buyer Control Person (each,  an "Indemnified  Party"),  against any losses,
claims,   damages,   liabilities  or  expenses   (joint  or  several)   incurred
(collectively,  "Claims")  to which  any of them may  become  subject  under the
Securities  Act,  Securities  Exchange Act of 1934,  as amended  (the  "Exchange
Act"), or otherwise, insofar as such Claims (or actions or proceedings,  whether
commenced or threatened,  in respect thereof) arise out of or are based upon any
of the  following  statements,  omissions  or  violations  in  the  Registration
Statement,  or any post-effective  amendment thereof, or any prospectus included

<PAGE>

therein: (i) any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement or any post-effective  amendment thereof
or the omission or alleged omission to state therein a material fact required to
be stated  therein or necessary to make the statements  therein not  misleading,
(ii) any  untrue  statement  or alleged  untrue  statement  of a  material  fact
contained in the final  prospectus (as amended or  supplemented,  if the Company
files any amendment thereof or supplement  thereto with the SEC) or the omission
or alleged  omission to state  therein any material  fact  necessary to make the
statements  made  therein,  in  light  of  the  circumstances  under  which  the
statements  therein were made,  not misleading or (iii) any violation or alleged
violation by the Company of the  Securities  Act,  the  Exchange  Act, any state
securities law or any rule or regulation  under the Securities Act, the Exchange
Act or any state  securities  law (the  matters  in the  foregoing  clauses  (i)
through  (iii)  being,  collectively  referred to as  "Violations").  Subject to
clause  (b) of this  Section  6, the  Company  shall  reimburse  the  Investors,
promptly as such  expenses are  incurred and are due and payable,  for any legal
fees  or  other  reasonable   expenses  incurred  by  them  in  connection  with
investigating  or  defending  any such  Claim.  Notwithstanding  anything to the
contrary  contained  herein,  the  indemnification  agreement  contained in this
Section  6(a)  shall not (I) apply to any Claim  arising  out of or based upon a
Violation  which  occurs in reliance  upon and in  conformity  with  information
furnished  in writing to the Company by or on behalf of such  Indemnified  Party
expressly  for  use in  connection  with  the  preparation  of the  Registration
Statement,  any such amendment thereof or supplement  thereto or prospectus,  if
such  prospectus (or supplement or amendment  thereto) was timely made available
by the Company pursuant to Section 3(b) hereof;  (II) be available to the extent
such  Claim is based on a failure  of the  Investor  to  deliver  or cause to be
delivered  the  prospectus  made  available  by the Company or the  amendment or
supplement  thereto made  available  by the  Company;  (III) be available to the
extent such Claim is based on the delivery of a prospectus by the Investor after
receiving  notice from the Company under Section 3(f),  (g) or (i) hereof (other
than a notice regarding the  effectiveness of the Registration  Statement or any
amendment or supplement thereto), or (IV) apply to amounts paid in settlement of
any Claim if such  settlement is effected  without the prior written  consent of
the Company,  which consent shall not be unreasonably  withheld or delayed.  The
Investor  will  indemnify  the Company and its  officers,  directors  and agents
(each, an "Indemnified Party") against any claims arising out of or based upon a
Violation  which  occurs in reliance  upon and in  conformity  with  information
furnished in writing to the Company, by or on behalf of such Investor, expressly
for use in connection with the preparation of the Registration  Statement or the
amendment or supplement  thereto,  subject to such limitations and conditions as
are applicable to the  indemnification  provided by the Company pursuant to this
Section 6. Such  indemnity  shall remain in full force and effect  regardless of
any  investigation  made by or on  behalf  of the  Indemnified  Party  and shall
survive the transfer of the Registrable  Securities by the Investors pursuant to
Section 9.

<PAGE>

            (b)  Promptly  after  receipt  by an  Indemnified  Party  under this
Section  6  of  notice  of  the  commencement  of  any  action   (including  any
governmental  action),  such  Indemnified  Party  shall,  if a Claim in  respect
thereof is to be made  against  any  indemnifying  party  under this  Section 6,
deliver to the indemnifying  party a written notice of the commencement  thereof
and the  indemnifying  party shall have the right to participate in, and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly  noticed,  to assume control of the defense thereof with counsel
satisfactory to the  indemnifying  party (provided such counsel shall not have a
conflict of interest with the  Indemnified  Party and provided that all defenses
available to the  Indemnified  Party can be maintained  without  prejudicing the
rights of the  indemnifying  party).  In case any such action is brought against
any  Indemnified   Party,  and  it  notifies  the  indemnifying   party  of  the
commencement thereof, the indemnifying party will be entitled to participate in,
and, to the extent that it may wish,  jointly with any other  indemnifying party
similarly notified, assume the defense thereof, subject to the provisions herein
stated and after notice from the indemnifying party to such Indemnified Party of
its election so to assume the defense thereof,  the indemnifying  party will not
be liable to such Indemnified  Party under this Section 6 for any legal or other
reasonable  out-of-pocket  expenses  subsequently  incurred by such  Indemnified
Party in  connection  with the defense  thereof other than  reasonable  costs of
investigation,  unless the indemnifying party shall not pursue the action to its
final conclusion.  The Indemnified Party shall have the right to employ separate
counsel in any such action and to  participate in the defense  thereof,  but the
fees and reasonable  out-of-pocket  expenses of such counsel shall not be at the
expense of the  indemnifying  party if the  indemnifying  party has  assumed the
defense of the action  with  counsel as provided  above.  The failure to deliver
written  notice  to the  indemnifying  party  within  a  reasonable  time of the
commencement of any such action shall not relieve such indemnifying party of any
liability  to the  Indemnified  Party under this Section 6, except to the extent
that the indemnifying  party is prejudiced in its ability to defend such action.
The  indemnification  required  by  this  Section  6 shall  be made by  periodic
payments  of the  amount  thereof  during  the  course of the  investigation  or
defense,  as such expense,  loss, damage or liability is incurred and is due and
payable;  provided,  however,  that the Investor shall not obligated to make any
indemnification  payment to the  Company  under this  Section 6 unless and until
there has been a final adjudication of liability on the part of the Investor.

            7.   Contribution.   To  the  extent  any   indemnification   by  an
indemnifying  party is  prohibited  or limited by law,  the  indemnifying  party
agrees to make the maximum contribution with respect to any amounts for which it
would  otherwise be liable under  Section 6 to the fullest  extent  permitted by
law;  provided,   however,   that  (a)  no  contribution  shall  be  made  under
circumstances  where the maker  would not have been  liable for  indemnification
under the fault  standards set forth in Section 6; (b) no seller of  Registrable
Securities guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to  contribution  from any seller
of   Registrable   Securities   who  was   not   guilty   of   such   fraudulent
misrepresentation;  and (c) except where the seller has  committed  fraud (other
than a  fraud  by  reason  of the  information  included  or  omitted  from  the
Registration  Statement  as to  which  the  Company  has  not  given  notice  as
contemplated under Section 3 hereof) or intentional misconduct,  contribution by
any  seller of  Registrable  Securities  shall be  limited  in amount to the net
amount of proceeds  received  by such  seller from the sale of such  Registrable
Securities.

            8. Reports  under  Securities  Act and Exchange  Act. With a view to
making  available  to Investor the  benefits of Rule 144  promulgated  under the
Securities  Act or any other  similar rule or  regulation of the SEC that may at
any time permit Investor to sell securities of the Company to the public without
Registration ("Rule 144"), the Company agrees to:

<PAGE>

            (a) make and keep public information  available,  as those terms are
understood and defined in Rule 144;

            (b) file  with the SEC in a timely  manner  all  reports  and  other
documents required of the Company under the Securities Act and the Exchange Act;
and

            (c) furnish to the Investor so long as the Investor owns Registrable
Securities,  promptly upon request,  (i) a written statement by the Company that
it has complied with the reporting  requirements of Rule 144, the Securities Act
and the Exchange Act, (ii) if not available on the SEC's EDGAR system, a copy of
the most recent annual or quarterly report of the Company and such other reports
and documents so filed by the Company and (iii) such other information as may be
reasonably  requested to permit the Investor to sell such securities pursuant to
Rule 144 without Registration; and

            (d) at the request of any Investor holding Registrable Securities (a
"Holder"),  give its Transfer  Agent  instructions  (supported  by an opinion of
Company  counsel,  if required or requested by the Transfer Agent) to the effect
that, upon the Transfer Agent's receipt from such Holder of

      (i) a  certificate  (a "Rule  144  Certificate")  certifying  (A) that the
      Holder's  holding period (as determined in accordance  with the provisions
      of Rule 144) for the  shares of  Registrable  Securities  which the Holder
      proposes to sell (the  "Securities  Being Sold") is not less than (1) year
      and (B) as to such other matters as may be appropriate in accordance  with
      Rule 144 under the Securities Act, and

      (ii) an opinion of counsel  acceptable to the Company (for which  purposes
      it  is  agreed  that  the  initial  Investor's  Counsel  shall  be  deemed
      acceptable if not given by Company  Counsel)  that,  based on the Rule 144
      Certificate,  Securities Being Sold may be sold pursuant to the provisions
      of Rule 144, even in the absence of an effective Registration Statement,

the Transfer  Agent is to effect the transfer of the  Securities  Being Sold and
issue to the buyer(s) or  transferee(s)  thereof one or more stock  certificates
representing  the  transferred  Securities  Being Sold  without any  restrictive
legend and without  recording any  restrictions on the  transferability  of such
shares on the Transfer  Agent's books and records (except to the extent any such
legend or restriction  results from facts other than the identity of the Holder,
as the seller or  transferor  thereof,  or the status,  including  any  relevant
legends or  restrictions,  of the shares of the Securities Being Sold while held
by the  Holder).  If the  Transfer  Agent  reasonably  requires  any  additional
documentation at the time of the transfer, the Company shall deliver or cause to
be delivered all such reasonable additional documentation as may be necessary to
effectuate the issuance of an unlegended certificate.

<PAGE>

            9.  Assignment of the  Registration  Rights.  The rights to have the
Company  register  Registrable  Securities  pursuant to this Agreement  shall be
automatically  assigned by the  Investor to any  transferee  of the  Registrable
Securities (or all or any portion of any unconverted  Purchased  Shares) only if
the Company is,  within a  reasonable  time after such  transfer or  assignment,
furnished with written notice of (a) the name and address of such  transferee or
assignee,  (b) the securities with respect to which such registration rights are
being  transferred  or assigned,  and (c) written  evidence of the  transferee's
assumption of the Investor's obligations under this Agreement.

            10.  Amendment  of  Registration   Rights.  Any  provision  of  this
Agreement  may be  amended  and the  observance  thereof  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  only with the written  consent of the Company and Investors who
represent a Majority in Interest  of the Holders as of the  relevant  date.  Any
amendment or waiver effected in accordance with this Section 10 shall be binding
upon each Investor and the Company.

            11. Miscellaneous.

            (a) A person or  entity  is  deemed  to be a holder  of  Registrable
Securities  whenever  such  person or entity  owns of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two or more  persons  or  entities  with  respect  to the  same
Registrable  Securities,  the Company shall act upon the basis of  instructions,
notice  or  election  received  from the  registered  owner of such  Registrable
Securities.

            (b) Notices  required or  permitted to be given  hereunder  shall be
given in the manner contemplated by the Securities Purchase Agreement, (i) if to
the Company or to the Initial Investor, to their respective address contemplated
by the Securities Purchase Agreement, and (ii) if to any other Investor, at such
address as such Investor  shall have  provided in writing to the Company,  or at
such other  address as each such party  furnishes by notice given in  accordance
with this Section 11(b).

            (c) Failure of any party to exercise  any right or remedy under this
Agreement or otherwise,  or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

            (d)  This  Agreement   shall  be  governed  by  and  interpreted  in
accordance  with the laws of the State of Illinois  for  contracts  to be wholly
performed  in such state and without  giving  effect to the  principles  thereof
regarding  the conflict of laws.  Each of the parties  consents to the exclusive
jurisdiction  of the federal  courts whose  districts  encompass any part of the
County of Cook or the  state  courts of the  State of  Illinois  sitting  in the
County of Cook in connection  with any dispute  arising under this Agreement and
hereby waives, to the maximum extent permitted by law, any objection,  including
any  objection  based  on  forum  non  coveniens,  to the  bringing  of any such
proceeding in such jurisdictions.

            (e) The Company and the Investor hereby waive a trial by jury in any
action,  proceeding  or  counterclaim  brought by either of the  parties  hereto
against the other in respect of any matter arising out of or in connection  with
this Agreement or any of the other Transaction Agreements.

<PAGE>

            (f)  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 or the
validity or enforceability of this Agreement in any other jurisdiction.

            (g) Subject to the requirements of Section 9 hereof,  this Agreement
shall inure to the benefit of and be binding upon the  successors and assigns of
each of the parties hereto.

            (h) All pronouns and any variations  thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

            (i) The headings in this Agreement are for  convenience of reference
only and shall not limit or otherwise affect the meaning thereof.

            (j) This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original but all of which shall  constitute  one and
the same agreement.  This Agreement,  once executed by a party, may be delivered
to the other party hereto by telephone line facsimile  transmission of a copy of
this Agreement bearing the signature of the party so delivering this Agreement.

            (k) The  Company  acknowledges  that any  failure by the  Company to
perform  its  obligations  under  Section  3(a)  hereof,  or any  delay  in such
performance could result in loss to the Investors,  and the Company agrees that,
in  addition  to any  other  liability  the  Company  may have by reason of such
failure or delay,  the Company shall be liable for all direct  damages caused by
any such  failure  or delay,  unless  the same is the  result of force  majeure.
Neither party shall be liable for consequential damages.

            (l) This Agreement  (including to the extent relevant the provisions
of other  Transaction  Agreements)  constitutes  the entire  agreement among the
parties  hereto with respect to the subject  matter  hereof and  supersedes  all
prior agreements and understandings among the parties hereto with respect to the
subject  matter  hereof.  There are no  restrictions,  promises,  warranties  or
undertakings, other than those set forth or referred to herein.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

            IN WITNESS  WHEREOF,  the parties  have caused this  Agreement to be
duly executed by their respective  officers  thereunto duly authorized as of the
day and year first above written.

                              INITIAL INVESTOR:

                              CHICAGO VENTURE PARTNERS, L.P.
                              an Illinois limited partnership

                              By:   Chicago Venture Management, L.L.C.
                                    a Delaware limited liability company,
                                    sole General Partner

                              By:   CVM, Inc., an Illinois corporation,
                                    Manager

                              By:
                                 -----------------------------------------------
                                    Name:
                                    Title:

                              COMPANY:

                              SUPERCLICK, INC.

                              By:
                                 -----------------------------------------------
                              Name:
                                   ---------------------------------------------
                              Title:
                                    --------------------------------------------EXHIBIT
      10.3

     

     

    LIVEPERSON,
      INC.

    2000
      STOCK INCENTIVE PLAN

    (as
      Amended and Restated as of April 22, 2004)

    (as
      Amended as of April 21, 2005)

     

    ARTICLE
      ONE

     

    GENERAL
      PROVISIONS

     

    
      	
            	I.	
              PURPOSE
                OF THE PLAN

            

    

     

    This
      2000
      Stock Incentive Plan (the “Plan”) is intended to promote the interests of
      LivePerson, Inc., a Delaware corporation, by providing eligible persons with
      the
      opportunity to acquire a proprietary interest, or otherwise increase their
      proprietary interest, in the Corporation as an incentive for them to remain
      in
      the service of the Corporation. The Plan was amended and restated as of April
      22, 2004 and approved by stockholders at the Corporation’s 2004 Annual Meeting
      of Stockholders on May 27, 2004. The Plan is further amended as of April 21,
      2005, subject to stockholder approval at the Corporation’s 2005 Annual Meeting
      of Stockholders.

     

    Capitalized
      terms shall have the meanings assigned to such terms in the attached
Appendix
      A.

     

    
      	
            	II.	
              STRUCTURE
                OF THE PLAN

            

    

     

    A.  The
      Plan
      shall be divided into five separate equity incentive programs:

     

    (i)  the
      Discretionary Option Grant Program under which eligible persons may, at the
      discretion of the Plan Administrator, be granted options to purchase shares
      of
      Common Stock, 

     

    (ii)  the
      Salary Investment Option Grant Program under which eligible employees may elect
      to have a portion of their base salary invested each year in special options,
      

     

    (iii)  the
      Stock
      Issuance Program under which eligible persons may, at the discretion of the
      Plan
      Administrator, be issued shares of Common Stock directly, either through the
      immediate purchase of such shares or as a bonus for services rendered the
      Corporation (or any Parent or Subsidiary), 

     

    (iv)  the
      Automatic Option Grant Program under which eligible non-employee Board members
      shall automatically receive options at periodic intervals to purchase shares
      of
      Common Stock, and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (v)  the
      Director Fee Option Grant Program under which non-employee Board members may
      elect to have all or any portion of their annual retainer fee otherwise payable
      in cash applied to a special option grant.

     

    B.  The
      provisions of Articles One and Seven shall apply to all equity programs under
      the Plan and shall govern the interests of all persons under the
      Plan.

     

    
      	
            	III.	
              ADMINISTRATION
                OF THE PLAN

            

    

     

    A.  Prior
      to
      the Section 12 Registration Date, the Discretionary Option Grant and Stock
      Issuance Programs shall be administered by the Board unless otherwise determined
      by the Board. Beginning with the Section 12 Registration Date, the
      following provisions shall govern the administration of the Plan:

     

    (i)  The
      Board
      shall have the authority to administer the Discretionary Option Grant and Stock
      Issuance Programs with respect to Section 16 Insiders but may delegate such
      authority in whole or in part to the Primary Committee. 

     

    (ii)  Administration
      of the Discretionary Option Grant and Stock Issuance Programs with respect
      to
      all other persons eligible to participate in those programs may, at the Board’s
      discretion, be vested in the Primary Committee or a Secondary Committee, or
      the
      Board may retain the power to administer those programs with respect to all
      such
      persons. 

     

    (iii)  The
      Board
      (or Primary Committee) shall select the Section 16 Insiders and other
      highly compensated Employees eligible to participate in the Salary Investment
      Option Grant Program. However, all option grants under the Salary Investment
      Option Grant Program shall be made in accordance with the terms of that program
      and the Primary Committee shall not exercise any administrative discretion
      with
      respect to option grants made under the program.

     

    (iv)  Administration
      of the Automatic Option Grant and Director Fee Option Grant Programs shall
      be
      self-executing in accordance with the terms of those programs.

     

    B.  Each
      Plan
      Administrator shall, within the scope of its administrative jurisdiction under
      the Plan, have full power and authority subject to the provisions of the
      Plan:

     

    (i)  to
      establish such rules as it may deem appropriate for proper administration of
      the
      Plan, to make all factual determinations, to construe and interpret the
      provisions of the Plan and the awards thereunder and to resolve any and all
      ambiguities thereunder;

     

    (ii)  to
      determine, with respect to awards made under the Discretionary Option Grant
      and
      Stock Issuance Programs, which eligible persons are to receive such awards,
      the
      time or times when such awards are to be made, the number of shares to be
      covered by each such award, the vesting schedule (if any) applicable to the
      award, the status of a granted option as either an Incentive Option or a
      Non-Statutory Option and the maximum term for which the option is to remain
      outstanding;

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (iii)  to
      amend,
      modify or cancel any outstanding award with the consent of the holder or
      accelerate the vesting of such award; and

     

    (iv)  to
      take
      such other discretionary actions as permitted pursuant to the terms of the
      applicable program.

     

    Decisions
      of each Plan Administrator within the scope of its administrative functions
      under the Plan shall be final and binding on all parties.

     

    C.  Members
      of the Primary Committee or any Secondary Committee shall serve for such period
      of time as the Board may determine and may be removed by the Board at any time.
      The Board may also at any time terminate the functions of any Secondary
      Committee and reassume all powers and authority previously delegated to such
      committee.

     

    D.  Service
      on the Primary Committee or the Secondary Committee shall constitute service
      as
      a Board member, and members of each such committee shall accordingly be entitled
      to full indemnification and reimbursement as Board members for their service
      on
      such committee. No member of the Primary Committee or the Secondary Committee
      shall be liable for any act or omission made in good faith with respect to
      the
      Plan or any options or stock issuances under the Plan.

     

    
      	
            	IV.	
              ELIGIBILITY

            

    

     

    A.  The
      persons eligible to participate in the Discretionary Option Grant and Stock
      Issuance Programs are as follows:

     

    (i)  Employees,

     

    (ii)  non-employee
      members of the Board or the board of directors of any Parent or Subsidiary,
      and

     

    (iii)  consultants
      and other independent advisors (whether natural persons or entities) who provide
      services to the Corporation (or any Parent or Subsidiary).

     

    B.  Only
      Employees who are Section 16 Insiders or other highly compensated individuals
      shall be eligible to participate in the Salary Investment Option Grant
      Program.

     

    C.  Only
      non-employee Board members shall be eligible to participate in the Automatic
      Option Grant and Director Fee Option Grant Programs.

     

    
      	
            	V.	
              STOCK
                SUBJECT TO THE PLAN

            

    

     

    A.  The
      stock
      issuable under the Plan shall be shares of authorized but unissued or reacquired
      Common Stock, including shares repurchased by the Corporation on the open
      market. The number of shares of Common Stock initially reserved for issuance
      over the term of the Plan shall be Ten Million (10,000,000) shares. Such reserve
      shall consist of (i) the number of shares estimated to remain available
      for
      issuance, as of the Section 12 Registration Date, under the Predecessor Plan,
      including the shares subject to the outstanding options to be incorporated
      into
      the Plan and the additional shares which would otherwise be available for future
      grant, plus (ii) an increase of Four Million One Hundred Sixty Five Thousand
      Three Hundred Fifteen (4,165,315) shares authorized by the Board subject to
      stockholder approval prior to the Section 12 Registration Date.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    B.  The
      number of shares of Common Stock available for issuance under the Plan shall
      automatically increase on the first trading day of January each calendar year
      during the term of the Plan, beginning with the calendar year 2001, by an amount
      equal to three percent (3%) of the total number of shares of Common Stock
      outstanding on the last trading day in December of the immediately preceding
      calendar year, but in no event shall such annual increase exceed One Million
      Five Hundred Thousand (1,500,000) shares.

     

    C.  No
      one
      person participating in the Plan may receive options, separately exercisable
      stock appreciation rights and direct stock issuances for more than Five Hundred
      Thousand (500,000) shares of Common Stock in the aggregate per calendar
      year.

     

    D.  Shares
      of
      Common Stock subject to outstanding options (including options incorporated
      into
      this Plan from the Predecessor Plan) shall be available for subsequent issuance
      under the Plan to the extent those options expire, terminate or are cancelled
      for any reason prior to exercise in full. Unvested shares issued under the
      Plan
      and subsequently repurchased by the Corporation, at the original exercise or
      issue price paid per share, pursuant to the Corporation’s repurchase rights
      under the Plan shall be added back to the number of shares of Common Stock
      reserved for issuance under the Plan and shall accordingly be available for
      reissuance through one or more subsequent options or direct stock issuances
      under the Plan. However, should the exercise price of an option under the Plan
      be paid with shares of Common Stock or should shares of Common Stock otherwise
      issuable under the Plan be withheld by the Corporation in satisfaction of the
      exercise price of an option under the Plan or withholding taxes incurred in
      connection with the exercise of an option or the vesting of a stock issuance
      under the Plan, then the number of shares of Common Stock available for issuance
      under the Plan shall be reduced by the gross number of shares for which the
      option is exercised or which vest under the stock issuance, and not by the
      net
      number of shares of Common Stock issued to the holder of such option or stock
      issuance. Shares of Common Stock underlying one or more stock appreciation
      rights exercised under the Plan shall not
      be
      available for subsequent issuance.

     

    E.  If
      any
      change is made to the Common Stock by reason of any stock split, stock dividend,
      recapitalization, combination of shares, exchange of shares or other change
      affecting the outstanding Common Stock as a class without the Corporation’s
      receipt of consideration, appropriate adjustments shall be made to (i) the
      maximum number and/or class of securities issuable under the Plan, (ii) the
      number and/or class of securities by which the share reserve is to increase
      each
      calendar year pursuant to the automatic share increase provisions of the Plan,
      (iii) the number and/or class of securities for which any one person may be
      granted options, separately exercisable stock appreciation rights and direct
      stock issuances under the Plan per calendar year, (iv) the number and/or class
      of securities for which grants are subsequently to be made under the Automatic
      Option Grant Program to new and continuing non-employee Board members, (v)
      the
      number and/or class of securities and the exercise price per share in effect
      under each outstanding option under the Plan and (vi) the number and/or class
      of
      securities and price per share in effect under each outstanding option
      incorporated into this Plan from the Predecessor Plan. Such adjustments to
      the
      outstanding options are to be effected in a manner which shall preclude the
      enlargement or dilution of rights and benefits under such options. The
      adjustments determined by the Plan Administrator shall be final, binding and
      conclusive.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    ARTICLE
      TWO

     

    DISCRETIONARY
      OPTION GRANT PROGRAM

     

    
      	
            	I.	
              OPTION
                TERMS

            

    

     

    Each
      option shall be evidenced by one or more documents in the form approved by
      the
      Plan Administrator; provided,
      however, that each such document shall comply with the terms specified below.
      Each document evidencing an Incentive Option shall, in addition, be subject
      to
      the provisions of the Plan applicable to such options.

     

    A.  Exercise
      Price.

     

    1.  The
      exercise price per share shall be fixed by the Plan Administrator at the time
      of
      the option grant and may be less than, equal to or greater than the Fair Market
      Value per share of Common Stock on the option grant date.

     

    2.  The
      exercise price shall become immediately due upon exercise of the option and
      shall, subject to the provisions of Section II of Article Seven
      and
      the documents evidencing the option, be payable in one or more of the following
      forms: 

     

    (i)  in
      cash
      or check made payable to the Corporation;

     

    (ii)  shares
      of
      Common Stock held for the requisite period necessary to avoid a charge to the
      Corporation’s earnings for financial reporting purposes and valued at Fair
      Market Value on the Exercise Date; 

     

    (iii)  to
      the
      extent the option is exercised for vested shares, through a special sale and
      remittance procedure pursuant to which the Optionee shall concurrently provide
      irrevocable instructions to (a) a Corporation-designated brokerage firm to
      effect the immediate sale of the purchased shares and remit to the Corporation,
      out of the sale proceeds available on the settlement date, sufficient funds
      to
      cover the aggregate exercise price payable for the purchased shares plus all
      applicable Federal, state and local income and employment taxes required to
      be
      withheld by the Corporation by reason of such exercise and (b) the
      Corporation to deliver the certificates for the purchased shares directly to
      such brokerage firm in order to complete the sale; or

     

    (iv)  on
      such
      other terms and conditions as may be acceptable to the Plan Administrator
      (including, without limitation, the relinquishment of options). No shares of
      Common Stock shall be issued until payment therefore, as provided herein, has
      been made or provided for.

     

    Except
      to
      the extent such sale and remittance procedure is utilized, payment of the
      exercise price for the purchased shares must be made on the Exercise
      Date.

     

    B.  Exercise
      and Term of Options.
      Each
      option shall be exercisable at such time or times, during such period and for
      such number of shares as shall be determined by the Plan Administrator and
      set
      forth in the documents evidencing the option. However, no option shall have
      a
      term in excess of ten (10) years measured from the option grant
      date.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    C.  Cessation
      of Service.

     

    1.  The
      following provisions shall govern the exercise of any options outstanding at
      the
      time of the Optionee’s cessation of Service or death:

     

    (i)  Any
      option outstanding at the time of the Optionee’s cessation of Service for any
      reason shall remain exercisable for such period of time thereafter as shall
      be
      determined by the Plan Administrator and set forth in the documents evidencing
      the option, but no such option shall be exercisable after the expiration of
      the
      option term.

     

    (ii)  Any
      option exercisable in whole or in part by the Optionee at the time of death
      may
      be subsequently exercised by his or her Beneficiary.

     

    (iii)  During
      the applicable post-Service exercise period, the option may not be exercised
      in
      the aggregate for more than the number of vested shares for which the option
      is
      exercisable on the date of the Optionee’s cessation of Service. Upon the
      expiration of the applicable exercise period or (if earlier) upon the expiration
      of the option term, the option shall terminate and cease to be outstanding
      for
      any vested shares for which the option has not been exercised. However, the
      option shall, immediately upon the Optionee’s cessation of Service, terminate
      and cease to be outstanding to the extent the option is not otherwise at that
      time exercisable for vested shares.

     

    (iv)  Should
      the Optionee’s Service be terminated for Misconduct or should the Optionee
      engage in Misconduct while his or her options are outstanding, then all such
      options shall terminate immediately and cease to be outstanding.

     

    2.  The
      Plan
      Administrator shall have complete discretion, exercisable either at the time
      an
      option is granted or at any time while the option remains
      outstanding:

     

    (v)  to
      extend
      the period of time for which the option is to remain exercisable following
      the
      Optionee’s cessation of Service to such period of time as the Plan Administrator
      shall deem appropriate, but in no event beyond the expiration of the option
      term, and/or

     

    (vi)  to
      permit
      the option to be exercised, during the applicable post-Service exercise period,
      for one or more additional installments in which the Optionee would have vested
      had the Optionee continued in Service.

     

    D.  Stockholder
      Rights.
      The
      holder of an option shall have no stockholder rights with respect to the shares
      subject to the option until such person shall have exercised the option, paid
      the exercise price and become a holder of record of the purchased
      shares.

     

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    E.  Repurchase
      Rights.
      The Plan
      Administrator shall have the discretion to grant options which are exercisable
      for unvested shares of Common Stock. Should the Optionee cease Service while
      holding such unvested shares, the Corporation shall have the right to
      repurchase, at the exercise price paid per share, any or all of those unvested
      shares. The terms upon which such repurchase right shall be exercisable
      (including the period and procedure for exercise and the appropriate vesting
      schedule for the purchased shares) shall be established by the Plan
      Administrator and set forth in the document evidencing such repurchase right.
      

     

    F.  Limited
      Transferability of Options.
      During
      the lifetime of the Optionee, Incentive Options shall be exercisable only by
      the
      Optionee and shall not be assignable or transferable other than by will or
      by
      the laws of inheritance following the Optionee’s death. Non-Statutory Options
      shall be subject to the same restrictions, except that a Non-Statutory Option
      may, to the extent permitted by the Plan Administrator, be assigned in whole
      or
      in part during the Optionee’s lifetime (i) as a gift to one or more members of
      the Optionee’s immediate family, to a trust in which Optionee and/or one or more
      such family members hold more than fifty percent (50%) of the beneficial
      interest or to an entity in which more than fifty percent (50%) of the voting
      interests are owned by one or more such family members or (ii) pursuant to
      a
      domestic relations order. The terms applicable to the assigned portion shall
      be
      the same as those in effect for the option immediately prior to such assignment
      and shall be set forth in such documents issued to the assignee as the Plan
      Administrator may deem appropriate. Notwithstanding the foregoing, the Plan
      Administrator may, in its discretion, permit a consultant or independent advisor
      entity that is awarded Non-Statutory Options to transfer any or all such
      Non-Statutory Options awarded.

     

    Notwithstanding
      the foregoing, the Optionee may also designate one or more persons as the
      beneficiary or beneficiaries of his or her outstanding options, and those
      options shall, in accordance with such designation, automatically be transferred
      to such beneficiary or beneficiaries upon the Optionee’s death while holding
      those options. Such beneficiary or beneficiaries shall take the transferred
      options subject to all the terms and conditions of the applicable agreement
      evidencing each such transferred option, including (without limitation) the
      limited time period during which the option may be exercised following the
      Optionee’s death.

     

    
      	
            	II.	
              INCENTIVE
                OPTIONS

            

    

     

    The
      terms
      specified below shall be applicable to all Incentive Options. Except as modified
      by the provisions of this Section II, all the provisions of Articles One, Two
      and Six shall be applicable to Incentive Options. Options which are specifically
      designated as Non-Statutory Options when issued under the Plan shall
not
      be
      subject to the terms of this Section II.

     

    A.  Eligibility.
      Incentive Options may only be granted to Employees. 

     

    B.  Exercise
      Price.
      The
      exercise price per share shall not be less than one hundred percent (100%)
      of
      the Fair Market Value per share of Common Stock on the option grant
      date.

     

    C.  Dollar
      Limitation.
      The
      aggregate Fair Market Value of the shares of Common Stock (determined as of
      the
      respective date or dates of grant) for which one or more options granted to
      any
      Employee under the Plan (or any other option plan of the Corporation or any
      Parent or Subsidiary) may for the first time become exercisable as Incentive
      Options during any one calendar year shall not exceed the sum of One Hundred
      Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more
      such options which become exercisable for the first time in the same calendar
      year, the foregoing limitation on the exercisability of such options as
      Incentive Options shall be applied on the basis of the order in which such
      options are granted.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    D.  10%
      Stockholder.
      If any
      Employee to whom an Incentive Option is granted is a 10% Stockholder, then
      the
      exercise price per share shall not be less than one hundred ten percent (110%)
      of the Fair Market Value per share of Common Stock on the option grant date,
      and
      the option term shall not exceed five (5) years measured from the option grant
      date.

     

    
      	
            	III.	
              CHANGE
                IN CONTROL/HOSTILE
                TAKE-OVER

            

    

     

    A.  Each
      option outstanding at the time of a Change in Control but not otherwise
      fully-vested shall automatically accelerate so that each such option shall,
      immediately prior to the effective date of the Change in Control, become
      exercisable for all of the shares of Common Stock at the time subject to that
      option and may be exercised for any or all of those shares as fully-vested
      shares of Common Stock. However, an outstanding option shall not so accelerate
      if and to the extent: (i) such option is, in connection with the Change in
      Control, assumed or otherwise continued in full force and effect by the
      successor corporation (or parent thereof) pursuant to the terms of the Change
      in
      Control, (ii) such option is replaced with a cash incentive program of the
      successor corporation which preserves the spread existing at the time of the
      Change in Control on the shares of Common Stock for which the option is not
      otherwise at that time exercisable and provides for subsequent payout in
      accordance with the same vesting schedule applicable to those option shares
      or
      (iii) the acceleration of such option is subject to other limitations imposed
      by
      the Plan Administrator at the time of the option grant. Each option outstanding
      at the time of the Change in Control shall terminate as provided in Section
      III.C. of this Article Two.

     

    B.  All
      outstanding repurchase rights shall also terminate automatically, and the shares
      of Common Stock subject to those terminated rights shall immediately vest in
      full, in the event of any Change in Control, except to the extent: (i) those
      repurchase rights are assigned to the successor corporation (or parent thereof)
      or otherwise continue in full force and effect pursuant to the terms of the
      Change in Control or (ii) such accelerated vesting is precluded by other
      limitations imposed by the Plan Administrator at the time the repurchase right
      is issued.

     

    C.  Immediately
      following the consummation of the Change in Control, all outstanding options
      shall terminate and cease to be outstanding, except to the extent assumed by
      the
      successor corporation (or parent thereof) or otherwise expressly continued
      in
      full force and effect pursuant to the terms of the Change in Control.

     

    D.  Each
      option which is assumed in connection with a Change in Control shall be
      appropriately adjusted, immediately after such Change in Control, to apply
      to
      the number and class of securities which would have been issuable to the
      Optionee in consummation of such Change in Control had the option been exercised
      immediately prior to such Change in Control. Appropriate adjustments to reflect
      such Change in Control shall also be made to (i) the exercise price payable
      per
      share under each outstanding option, provided
      the
      aggregate exercise price payable for such securities shall remain the same,
      (ii)
      the maximum number and/or class of securities available for issuance over the
      remaining term of the Plan and (iii) the maximum number and/or class of
      securities for which any one person may be granted options, separately
      exercisable stock appreciation rights and direct stock issuances under the
      Plan
      per calendar year. To the extent the actual holders of the Corporation’s
      outstanding Common Stock receive cash consideration for their Common Stock
      in
      consummation of the Change in Control, the successor corporation may, in
      connection with the assumption of the outstanding options, substitute one or
      more shares of its own common stock with a fair market value equivalent to
      the
      cash consideration paid per share of Common Stock in such Change in
      Control.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    E.  The
      Plan
      Administrator may at any time provide that one or more options will
      automatically accelerate in connection with a Change in Control, whether or
      not
      those options are assumed or otherwise continued in full force and effect
      pursuant to the terms of the Change in Control. Any such option shall
      accordingly become exercisable, immediately prior to the effective date of
      such
      Change in Control, for all of the shares of Common Stock at the time subject
      to
      that option and may be exercised for any or all of those shares as fully-vested
      shares of Common Stock. In addition, the Plan Administrator may at any time
      provide that one or more of the Corporation’s repurchase rights shall not be
      assignable in connection with such Change in Control and shall terminate upon
      the consummation of such Change in Control.

     

    F.  The
      Plan
      Administrator may at any time provide that one or more options will
      automatically accelerate upon an Involuntary Termination of the Optionee’s
      Service within a designated period (not to exceed eighteen (18) months)
      following the effective date of any Change in Control in which those options
      do
      not otherwise accelerate. Any options so accelerated shall remain exercisable
      for fully-vested shares until the earlier
      of (i)
      the expiration of the option term or (ii) the expiration of the one (1) year
      period measured from the effective date of the Involuntary Termination. In
      addition, the Plan Administrator may at any time provide that one or more of
      the
      Corporation’s repurchase rights shall immediately terminate upon such
      Involuntary Termination. 

     

    G.  The
      Plan
      Administrator may at any time provide that one or more options will
      automatically accelerate in connection with a Hostile Take-Over. Any such option
      shall become exercisable, immediately prior to the effective date of such
      Hostile Take-Over, for all of the shares of Common Stock at the time subject
      to
      that option and may be exercised for any or all of those shares as fully-vested
      shares of Common Stock. In addition, the Plan Administrator may at any time
      provide that one or more of the Corporation’s repurchase rights shall terminate
      automatically upon the consummation of such Hostile Take-Over. Alternatively,
      the Plan Administrator may condition such automatic acceleration and termination
      upon an Involuntary Termination of the Optionee’s Service within a designated
      period (not to exceed eighteen (18) months) following the effective date of
      such
      Hostile Take-Over. Each option so accelerated shall remain exercisable for
      fully-vested shares until the expiration or sooner termination of the option
      term.

     

    H.  The
      portion of any Incentive Option accelerated in connection with a Change in
      Control or Hostile Take Over shall remain exercisable as an Incentive Option
      only to the extent the applicable One Hundred Thousand Dollar ($100,000)
      limitation is not exceeded. To the extent such dollar limitation is exceeded,
      the accelerated portion of such option shall be exercisable as a Non-Statutory
      Option under the Federal tax laws.

     

    
      	
            	IV.	
              STOCK
                APPRECIATION RIGHTS

            

    

     

    The
      Plan
      Administrator may, subject to such conditions as it may determine, grant to
      selected Optionees stock appreciation rights which will allow the holders of
      those rights to elect between the exercise of the underlying option for shares
      of Common Stock and the surrender of that option in exchange for a distribution
      from the Corporation in an amount equal to the excess of (a) the Option
      Surrender Value of the number of shares for which the option is surrendered
      over
      (b) the aggregate exercise price payable for such shares. The distribution
      may be made in shares of Common Stock valued at Fair Market Value on the option
      surrender date, in cash, or partly in shares and partly in cash, as the Plan
      Administrator shall in its sole discretion deem appropriate.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    ARTICLE
      THREE

     

    SALARY
      INVESTMENT OPTION GRANT PROGRAM

     

    
      	
            	I.	
              OPTION
                GRANTS

            

    

     

    The
      Primary Committee may implement the Salary Investment Option Grant Program
      for
      one or more calendar years beginning after the Underwriting Date and select
      the
      Section 16 Insiders and other highly compensated Employees eligible to
      participate in the Salary Investment Option Grant Program for each such calendar
      year. Each selected individual who elects to participate in the Salary
      Investment Option Grant Program must, prior to the start of each calendar year
      of participation, file with the Plan Administrator (or its designate) an
      irrevocable authorization directing the Corporation to reduce his or her base
      salary for that calendar year by an amount not less than Five Thousand Dollars
      ($5,000) nor more than Fifty Thousand Dollars ($50,000). Each individual who
      files such a timely election shall be granted an option under the Salary
      Investment Grant Program on the first trading day in January for the calendar
      year for which the salary reduction is to be in effect.

     

    
      	
            	II.	
              OPTION
                TERMS

            

    

     

    Each
      option shall be a Non-Statutory Option evidenced by one or more documents in
      the
      form approved by the Plan Administrator; provided,
      however, that each such document shall comply with the terms specified
      below.

     

    A.  Exercise
      Price.

     

    1.  The
      exercise price per share shall be thirty-three and one-third percent (33-1/3%)
      of the Fair Market Value per share of Common Stock on the option grant
      date.

     

    2.  The
      exercise price shall become immediately due upon exercise of the option and
      shall be payable in one or more of the alternative forms authorized under the
      Discretionary Option Grant Program. Except to the extent the sale and remittance
      procedure specified thereunder is utilized, payment of the exercise price for
      the purchased shares must be made on the Exercise Date.

     

    B.  Number
      of Option Shares.
      The
      number of shares of Common Stock subject to the option shall be determined
      pursuant to the following formula (rounded down to the nearest whole
      number):

     

    X
      = A ÷
      (B x 66-2/3%), where

     

    X
      is the
      number of option shares,

     

    A
      is the
      dollar amount of the approved reduction in the Optionee’s base salary for the
      calendar year, and

     

    B
      is the
      Fair Market Value per share of Common Stock on the option grant date.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    C.  Exercise
      and Term of Options.
      The
      option shall become exercisable in a series of twelve (12) successive equal
      monthly installments upon the Optionee’s completion of each calendar month of
      Service in the calendar year for which the salary reduction is in effect. Each
      option shall have a maximum term of ten (10) years measured from the option
      grant date. 

     

    D.  Cessation
      of Service.
      Each
      option outstanding at the time of the Optionee’s cessation of Service shall
      remain exercisable, for any or all of the shares for which the option is
      exercisable at the time of such cessation of Service, until the earlier
      of (i)
      the expiration of the option term or (ii) the expiration of the three (3)-year
      period following the Optionee’s cessation of Service. To the extent the option
      is held by the Optionee at the time of his or her death, the option may be
      exercised by his or her Beneficiary. However, the option shall, immediately
      upon
      the Optionee’s cessation of Service, terminate and cease to remain outstanding
      with respect to any and all shares of Common Stock for which the option is
      not
      otherwise at that time exercisable.

     

    
      	
            	III.	
              CHANGE
                IN CONTROL/HOSTILE
                TAKE-OVER

            

    

     

    A.  In
      the
      event of any Change in Control or Hostile Take-Over while the Optionee remains
      in Service, each outstanding option shall automatically accelerate so that
      each
      such option shall, immediately prior to the effective date of the Change in
      Control or Hostile Take-Over, become fully exercisable with respect to the
      total
      number of shares of Common Stock at the time subject to such option and may
      be
      exercised for any or all of those shares as fully-vested shares of Common Stock.
      Each such option accelerated in connection with a Change in Control shall
      terminate upon the Change in Control, except to the extent assumed by the
      successor corporation (or parent thereof) or otherwise continued in full force
      and effect pursuant to the terms of the Change in Control. Each such option
      accelerated in connection with a Hostile Take-Over shall remain exercisable
      until the expiration or sooner termination of the option term.

     

    B.  Each
      option which is assumed in connection with a Change in Control shall be
      appropriately adjusted to apply to the number and class of securities which
      would have been issuable to the Optionee in consummation of such Change in
      Control had the option been exercised immediately prior to such Change in
      Control. Appropriate adjustments shall also be made to the exercise price
      payable per share under each outstanding option, provided
      the
      aggregate exercise price payable for such securities shall remain the same.
      To
      the extent the actual holders of the Corporation’s outstanding Common Stock
      receive cash consideration for their Common Stock in consummation of the Change
      in Control, the successor corporation may, in connection with the assumption
      of
      the outstanding options, substitute one or more shares of its own common stock
      with a fair market value equivalent to the cash consideration paid per share
      of
      Common Stock in such Change in Control.

     

    C.  Upon
      the
      occurrence of a Hostile Take-Over, the Optionee shall have a thirty (30)-day
      period in which to surrender to the Corporation each of his or her outstanding
      options. The Optionee shall in return be entitled to a cash distribution from
      the Corporation in an amount equal to the excess of (i) the Option Surrender
      Value of the shares of Common Stock at the time subject to each surrendered
      option (whether or not the Optionee is otherwise at the time vested in those
      shares) over (ii) the aggregate exercise price payable for such shares. Such
      cash distribution shall be paid within five (5) days following the surrender
      of
      the option to the Corporation. 

     

    
      	
            	IV.	
              REMAINING
                TERMS

            

    

     

    The
      remaining terms of each option granted under the Salary Investment Option Grant
      Program shall be the same as the terms in effect for options made under the
      Discretionary Option Grant Program. 

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    ARTICLE
      FOUR

     

    STOCK
      ISSUANCE PROGRAM

     

    
      	
            	I.	
              STOCK
                ISSUANCE TERMS

            

    

     

    Shares
      of
      Common Stock may be issued under the Stock Issuance Program through direct
      and
      immediate stock issuances without any intervening options. Shares of Common
      Stock may also be issued under the Stock Issuance Program pursuant to stock
      issuances which entitle the recipients to receive those shares upon the
      attainment of designated performance objectives or Service requirements. Each
      such stock issuance shall be evidenced by one or more documents which comply
      with the terms specified below.

     

    A.  Purchase
      Price.

     

    1.  The
      purchase price per share of Common Stock subject to direct issuance shall be
      fixed by the Plan Administrator and may be less than, equal to or greater than
      the Fair Market Value per share of Common Stock on the issue date.

     

    2.  Subject
      to the provisions of Section II of Article Seven, shares of Common Stock may
      be
      issued under the Stock Issuance Program for any of the following items of
      consideration which the Plan Administrator may deem appropriate in each
      individual instance:

     

    (i)  cash
      or
      check made payable to the Corporation, or

     

    (ii)  past
      services rendered to the Corporation (or any Parent or Subsidiary).

     

    B.  Vesting/Issuance
      Provisions.

     

    1.  The
      Plan
      Administrator may issue shares of Common Stock which are fully and immediately
      vested upon issuance or which are to vest in one or more installments over
      the
      Participant’s period of Service or upon attainment of specified performance
      objectives (including the Performance Goals specified in Appendix
      B
      hereto)
      or such other factors as the Plan Administrator may determine, in its sole
      discretion, including to comply with the requirements of Section 162(m) of
      the
      Code. Alternatively, the Plan Administrator may issue stock issuances which
      shall entitle the recipient to receive a specified number of vested shares
      of
      Common Stock upon the attainment of one or more Performance Goals or Service
      requirements established by the Plan Administrator.

     

    2.  Notwithstanding
      the foregoing, if the stock issuance is intended to comply with the “performance
      based” compensation exception under Section 162(m) of the Code and if the lapse
      of restrictions on such stock issuance is based on the attainment of Performance
      Goals, the Plan Administrator shall establish the objective Performance Goals
      or
      grant conditions relating to the applicable vesting percentage of the Common
      Stock applicable to each Participant or class of Participants in writing prior
      to the beginning of the applicable fiscal year or at such later date as
      otherwise determined by the Plan Administrator and while the outcome of the
      Performance Goals are substantially uncertain. Such Performance Goals may
      incorporate provisions for disregarding (or adjusting for) changes in accounting
      methods, corporate transactions (including, without limitation, dispositions
      and
      acquisitions) and other similar type events or circumstances. The Performance
      Goals are set forth in Appendix
      B
      hereto.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    3.  A
      Participant selected to receive a stock issuance shall not have any rights
      with
      respect to such issuance, unless and until such Participant has delivered a
      fully executed copy of the award agreement evidencing the stock issuance to
      the
      Corporation and has otherwise complied with the applicable terms and conditions
      of such issuance.

     

    4.  Any
      new,
      substituted or additional securities or other property (including money paid
      other than as a regular cash dividend) which the Participant may have the right
      to receive with respect to his or her unvested shares of Common Stock by reason
      of any stock dividend, stock split, recapitalization, combination of shares,
      exchange of shares or other change affecting the outstanding Common Stock as
      a
      class without the Corporation’s receipt of consideration shall be issued subject
      to (i) the same vesting requirements applicable to the Participant’s
      unvested shares of Common Stock and (ii) such escrow arrangements as
      the
      Plan Administrator shall deem appropriate.

     

    5.  The
      Participant shall have full stockholder rights with respect to the issued shares
      of Common Stock, whether or not the Participant’s interest in those shares is
      vested. Accordingly, the Participant shall have the right to vote such shares
      and to receive any regular cash dividends paid on such shares, but shall have
      no
      right to transfer such shares until vested. Unless otherwise determined by
      the
      Plan Administrator, the Participant shall not be permitted to transfer shares
      of
      Common Stock awarded under this Plan during a period set by the Plan
      Administrator commencing with the date of such award, as set forth in the
      applicable award agreement.

     

    6.  Should
      the Participant cease to remain in Service while holding one or more unvested
      shares of Common Stock, or should the performance objectives not be attained
      with respect to one or more such unvested shares of Common Stock, then those
      shares shall be immediately surrendered to the Corporation for cancellation,
      and
      the Participant shall have no further stockholder rights with respect to those
      shares. To the extent the surrendered shares were previously issued to the
      Participant for consideration paid in cash or cash equivalent (including the
      Participant’s purchase-money indebtedness), the Corporation shall repay to the
      Participant the cash consideration paid for the surrendered shares and shall
      cancel the unpaid principal balance of any outstanding purchase-money note
      of
      the Participant attributable to the surrendered shares.

     

    7.  The
      Plan
      Administrator may waive the surrender and cancellation of one or more unvested
      shares of Common Stock (or other assets attributable thereto) which would
      otherwise occur upon the cessation of the Participant’s Service or the
      non-attainment of the performance objectives applicable to those shares. Such
      waiver shall result in the immediate vesting of the Participant’s interest in
      the shares of Common Stock as to which the waiver applies. Such waiver may
      be
      effected at any time, whether before or after the Participant’s cessation of
      Service or the attainment or non-attainment of the applicable performance
      objectives.

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    8.  Outstanding
      stock issuances shall automatically terminate, and no shares of Common Stock
      shall actually be issued in satisfaction of those issuances, if the performance
      objectives or Service requirements established for such issuances are not
      attained. The Plan Administrator, however, shall have the authority to issue
      shares of Common Stock in satisfaction of one or more outstanding stock
      issuances as to which the designated performance objectives or Service
      requirements are not attained.

     

    
      	
            	II.	
              CHANGE
                IN CONTROL/HOSTILE
                TAKE-OVER

            

    

     

    A.  All
      of
      the Corporation’s outstanding repurchase rights shall terminate automatically,
      and all the shares of Common Stock subject to those terminated rights shall
      immediately vest in full, in the event of any Change in Control, except to
      the
      extent (i) those repurchase rights are assigned to the successor corporation
      (or
      parent thereof) or otherwise continue in full force and effect pursuant to
      the
      terms of the Change in Control or (ii) such accelerated vesting is precluded
      by
      other limitations imposed by the Plan Administrator at the time the repurchase
      right is issued.

     

    B.  The
      Plan
      Administrator may at any time provide for the automatic termination of one
      or
      more of those outstanding repurchase rights and the immediate vesting of the
      shares of Common Stock subject to those terminated rights upon (i) a Change
      in
      Control or Hostile Take-Over or (ii) an Involuntary Termination of the
      Participant’s Service within a designated period (not to exceed eighteen (18)
      months) following the effective date of any Change in Control or Hostile
      Take-Over in which those repurchase rights are assigned to the successor
      corporation (or parent thereof) or otherwise continue in full force and
      effect.

     

    
      	
            	III.	
              SHARE
                ESCROW/LEGENDS

            

    

     

    Unvested
      shares may, in the Plan Administrator’s discretion, be held in escrow by the
      Corporation until the Participant’s interest in such shares vests or may be
      issued directly to the Participant with restrictive legends on the certificates
      evidencing those unvested shares.

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    ARTICLE
      FIVE 

     

    AUTOMATIC
      OPTION GRANT PROGRAM

     

    
      	
            	I.	
              OPTION
                TERMS

            

    

     

    A.  Grant
      Dates.
      Options
      shall be made on the dates specified below:

     

    1.  Each
      individual who is first elected or appointed as a non-employee Board member
      at
      any time after April 21, 2005 shall automatically be granted, on the date of
      such initial election or appointment, a Non-Statutory Option to purchase Thirty
      Five Thousand (35,000) shares of Common Stock, provided that individual has
      not
      previously been in the employ of the Corporation (or any Parent or
      Subsidiary).

     

    2.  On
      the
      date of the 2005 Annual Stockholder Meeting, each individual who is to continue
      to serve as a non-employee Board member shall automatically be granted a
      Non-Statutory Option to purchase Thirty Five Thousand (35,000) shares of Common
      Stock. On the date of each Annual Stockholders Meeting beginning with the 2006
      Annual Stockholder Meeting, each individual who is to continue to serve as
      a
      non-employee Board member shall automatically be granted a Non-Statutory Option
      to purchase Ten Thousand (10,000) shares of Common Stock, provided that
      individual has served as a non-employee Board member for at least six (6)
      months.

     

    B.  Exercise
      Price.

     

    1.  The
      exercise price per share shall be equal to one hundred percent (100%) of the
      Fair Market Value per share of Common Stock on the option grant
      date.

     

    2.  The
      exercise price shall be payable in one or more of the alternative forms
      authorized under the Discretionary Option Grant Program. Except to the extent
      the sale and remittance procedure specified thereunder is utilized, payment
      of
      the exercise price for the purchased shares must be made on the Exercise
      Date.

     

    C.  Option
      Term.
      Each
      option shall have a term of ten (10) years measured from the option grant
      date.

     

    D.  Exercise
      and Vesting of Options.
      Each
      option shall be immediately exercisable for any or all of the option shares.
      However, any unvested shares purchased under the option shall be subject to
      repurchase by the Corporation, at the exercise price paid per share, upon the
      Optionee’s cessation of Board service prior to vesting in those shares. Each
      initial 35,000-share option shall vest, and the Corporation’s repurchase right
      shall lapse, in a series of three (3) successive equal annual installments
      over
      the Optionee’s period of continued service as a Board member, with the first
      such installment to vest upon the Optionee’s completion of one (1) year of Board
      service measured from the option grant date. Each 35,000-share option granted
      on
      the date of the 2005 Annual Stockholder Meeting, and each annual 10,000-share
      option granted thereafter, shall vest, and the Corporation’s repurchase right
      shall lapse, upon the Optionee’s completion of one (1) year of Board service
      measured from the option grant date.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    E.  Cessation
      of Board Service.
      The
      following provisions shall govern the exercise of any options outstanding at
      the
      time of the Optionee’s cessation of Board service:

     

    (i)  Any
      option outstanding at the time of the Optionee’s cessation of Board service for
      any reason shall remain exercisable for a twelve (12)-month period following
      the
      date of such cessation of Board service, but in no event shall such option
      be
      exercisable after the expiration of the option term.

     

    (ii)  Any
      option exercisable in whole or in part by the Optionee at the time of death
      may
      be subsequently exercised by his or her Beneficiary.

     

    (iii)  Following
      the Optionee’s cessation of Board service, the option may not be exercised in
      the aggregate for more than the number of shares for which the option was
      exercisable on the date of such cessation of Board service. Upon the expiration
      of the applicable exercise period or (if earlier) upon the expiration of the
      option term, the option shall terminate and cease to be outstanding for any
      vested shares for which the option has not been exercised. However, the option
      shall, immediately upon the Optionee’s cessation of Board service, terminate and
      cease to be outstanding for any and all shares for which the option is not
      otherwise at that time exercisable.

     

    (iv)  However,
      should the Optionee cease to serve as a Board member by reason of death or
      Permanent Disability, then all shares at the time subject to the option shall
      immediately vest so that such option may, during the twelve (12)-month exercise
      period following such cessation of Board service, be exercised for all or any
      portion of those shares as fully-vested shares of Common Stock.

     

    
      	
            	II.	
              CHANGE
                IN CONTROL/HOSTILE
                TAKE-OVER

            

    

     

    A.  In
      the
      event of any Change in Control or Hostile Take-Over, the shares of
      Common
      Stock at the time subject to each outstanding option but not otherwise vested
      shall automatically vest in full so that each such option may, immediately
      prior
      to the effective date of such Change in Control or Hostile Take-Over, became
      fully exercisable for all of the shares of Common Stock at the time subject
      to
      such option and maybe exercised for all or any of those shares as fully-vested
      shares of Common Stock. Each such option accelerated in connection with a Change
      in Control shall terminate upon the Change in Control, except to the extent
      assumed by the successor corporation (or parent thereof) or otherwise continued
      in full force and effect pursuant to the terms of the Change in Control. Each
      such option accelerated in connection with a Hostile Take-Over shall remain
      exercisable until the expiration or sooner termination of the option
      term.

     

    B.  All
      outstanding repurchase rights shall automatically terminate and the shares
      of
      Common Stock subject to those terminated rights shall immediately vest in full,
      in the event of any Change in Control or Hostile Take-Over.

     

    C.  Upon
      the
      occurrence of a Hostile Take-Over, the Optionee shall have a thirty (30)-day
      period in which to surrender to the Corporation each of his or her outstanding
      options. The Optionee shall in return be entitled to a cash distribution from
      the Corporation in an amount equal to the excess of (i) the Option Surrender
      Value of the shares of Common Stock at the time subject to each surrendered
      option (whether or not the option is otherwise at the time exercisable for
      those
      shares) over (ii) the aggregate exercise price payable for such shares. Such
      cash distribution shall be paid within five (5) days following the surrender
      of
      the option to the Corporation. 

     

    D.  Each
      option which is assumed in connection with a Change in Control shall be
      appropriately adjusted to apply to the number and class of securities which
      would have been issuable to the Optionee in consummation of such Change in
      Control had the option been exercised immediately prior to such Change in
      Control. Appropriate adjustments shall also be made to the exercise price
      payable per share under each outstanding option, provided
      the
      aggregate exercise price payable for such securities shall remain the same.
      To
      the extent the actual holders of the Corporation’s outstanding Common Stock
      receive cash consideration for their Common Stock in consummation of the Change
      in Control, the successor corporation may, in connection with the assumption
      of
      the outstanding options, substitute one or more shares of its own common stock
      with a fair market value equivalent to the cash consideration paid per share
      of
      Common Stock in such Change in Control.

     

    
      	
               

               

            	III.	
              REMAINING
                TERMS

            

    

     

    The
      remaining terms of each option granted under the Automatic Option Grant Program
      shall be the same as the terms in effect for options made under the
      Discretionary Option Grant Program.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    ARTICLE
      SIX

     

    DIRECTOR
      FEE OPTION GRANT PROGRAM

     

    
      	
            	I.	
              OPTION
                GRANTS

            

    

     

    The
      Board
      may implement the Director Fee Option Grant Program as of the first day of
      any
      calendar year beginning after the Underwriting Date. Upon such implementation
      of
      the Program, each non-employee Board member may elect to apply all or any
      portion of the annual retainer fee otherwise payable in cash for his or her
      service on the Board to the acquisition of a special option grant under this
      Director Fee Option Grant Program. Such election must be filed with the
      Corporation’s Chief Financial Officer prior to the first day of the calendar
      year for which the election is to be in effect. Each non-employee Board member
      who files such a timely election with respect to the annul retainer fee shall
      automatically be granted an option under this Director Fee Option Grant Program
      on the first trading day in January in the calendar year for which that fee
      would otherwise be payable. 

     

    
      	
            	II.	
              OPTION
                TERMS

            

    

     

    Each
      option shall be a Non-Statutory Option governed by the terms and conditions
      specified below.

     

    A.  Exercise
      Price.

     

    1.  The
      exercise price per share shall be thirty-three and one-third percent (33-1/3%)
      of the Fair Market Value per share of Common Stock on the option grant
      date.

     

    2.  The
      exercise price shall become immediately due upon exercise of the option and
      shall be payable in one or more of the alternative forms authorized under the
      Discretionary Option Grant Program. Except to the extent the sale and remittance
      procedure specified thereunder is utilized, payment of the exercise price for
      the purchased shares must be made on the Exercise Date.

     

    B.  Number
      of Option Shares.
      The
      number of shares of Common Stock subject to the option shall be determined
      pursuant to the following formula (rounded down to the nearest whole
      number):

     

    X
      = A ÷
      (B x 66-2/3%), where

     

    X
      is the
      number of option shares,

     

    A
      is the
      portion of the annual retainer fee subject to the non-employee Board member’s
      election, and 

     

    B
      is the
      Fair Market Value per share of Common Stock on the option grant date.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    C.  Exercise
      and Term of Options.
      The
      option shall become exercisable in a series of twelve (12) successive equal
      monthly installments upon the Optionee’s completion of each month of Board
      service during the calendar year in which the option is granted. Each option
      shall have a maximum term of ten (10) years measured from the option grant
      date.

     

    D.  Cessation
      of Board Service.
      Should
      the Optionee cease Board service for any reason (other than death or Permanent
      Disability) while holding one or more options, then each such option shall
      remain exercisable, for any or all of the shares for which the option is
      exercisable at the time of such cessation of Board service, until the
earlier
      of (i)
      the expiration of the ten (10)-year option term or (ii) the expiration of the
      three (3)-year period measured from the date of such cessation of Board service.
      However, each option held by the Optionee at the time of such cessation of
      Board
      service shall immediately terminate and cease to remain outstanding with respect
      to any and all shares of Common Stock for which the option is not otherwise
      at
      that time exercisable. 

     

    E.  Death
      or Permanent Disability.
      Should
      the Optionee’s service as a Board member cease by reason of death or Permanent
      Disability, then each option held by such Optionee shall immediately become
      exercisable for all the shares of Common Stock at the time subject to that
      option, and the option may be exercised for any or all of those shares as
      fully-vested shares until the earlier
      of (i)
      the expiration of the ten (10)-year option term or (ii) the expiration of the
      three (3)-year period measured from the date of such cessation of Board
      service.

     

    Should
      the Optionee die after cessation of Board service but while holding one or
      more
      options, then each such option may be exercised, for any or all of the shares
      for which the option is exercisable at the time of the Optionee’s cessation of
      Board service (less any shares subsequently purchased by Optionee prior to
      death), by the Optionee’s Beneficiary. Such right of exercise shall lapse, and
      the option shall terminate, upon the earlier
      of (i)
      the expiration of the ten (10)-year option term or (ii) the three (3)-year
      period measured from the date of the Optionee’s cessation of Board service.

     

    
      	
            	III.	
              CHANGE
                IN CONTROL/HOSTILE
                TAKE-OVER

            

    

     

    A.  In
      the
      event of any Change in Control or Hostile Take-Over while the Optionee remains
      in Board service, each outstanding option held by such Optionee shall
      automatically accelerate so that each such option shall, immediately prior
      to
      the effective date of the Change in Control or Hostile Take-Over, become fully
      exercisable with respect to the total number of shares of Common Stock at the
      time subject to such option and may be exercised for any or all of those shares
      as fully-vested shares of Common Stock. Each such option accelerated in
      connection with a Change in Control shall terminate upon the Change in Control,
      except to the extent assumed by the successor corporation (or parent thereof)
      or
      otherwise expressly continued in full force and effect pursuant to the terms
      of
      the Change in Control. Each such option accelerated in connection with a Hostile
      Take-Over shall remain exercisable until the expiration or sooner termination
      of
      the option term.

     

    B.  Upon
      the
      occurrence of a Hostile Take-Over, the Optionee shall have a thirty (30)-day
      period in which to surrender to the Corporation each of his or her outstanding
      options. The Optionee shall in return be entitled to a cash distribution from
      the Corporation in an amount equal to the excess of (i) the Option Surrender
      Value of the shares of Common Stock at the time subject to each surrendered
      option (whether or not the Optionee is otherwise at the time vested in those
      shares) over (ii) the aggregate exercise price payable for such shares. Such
      cash distribution shall be paid within five (5) days following the surrender
      of
      the option to the Corporation. 

     

    C.  Each
      option which is assumed in connection with a Change in Control shall be
      appropriately adjusted, immediately after such Change in Control, to apply
      to
      the number and class of securities which would have been issuable to the
      Optionee in consummation of such Change in Control had the option been exercised
      immediately prior to such Change in Control. Appropriate adjustments shall
      also
      be made to the exercise price payable per share under each outstanding option,
      provided
      the
      aggregate exercise price payable for such securities shall remain the same.
      To
      the extent the actual holders of the Corporation’s outstanding Common Stock
      receive cash consideration for their Common Stock in consummation of the Change
      in Control, the successor corporation may, in connection with the assumption
      of
      the outstanding options under the Director Fee Option Grant Program, substitute
      one or more shares of its own common stock with a fair market value equivalent
      to the cash consideration paid per share of Common Stock in such Change in
      Control.

     

    
      	
            	IV.	
              REMAINING
                TERMS

            

    

     

    The
      remaining terms of each option granted under this Director Fee Option Grant
      Program shall be the same as the terms in effect for options made under the
      Discretionary Option Grant Program. 

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    ARTICLE
      SEVEN

     

    MISCELLANEOUS

     

    
      	
            	I.	
              NO
                IMPAIRMENT OF AUTHORITY

            

    

     

    Outstanding
      awards shall in no way affect the right of the Corporation to adjust,
      reclassify, reorganize or otherwise change its capital or business structure
      or
      to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
      of its business or assets.

     

    
      	
            	II.	
              FINANCING

            

    

     

    The
      Plan
      Administrator may permit any Optionee or Participant to pay the option exercise
      price under the Discretionary Option Grant Program or the purchase price of
      shares issued under the Stock Issuance Program by delivering a full-recourse,
      interest bearing promissory note payable in one or more installments. The terms
      of any such promissory note (including the interest rate and the terms of
      repayment) shall be established by the Plan Administrator in its sole
      discretion. In no event may the maximum credit available to the Optionee or
      Participant exceed the sum of (i) the aggregate option exercise price or
      purchase price payable for the purchased shares (less the par value of such
      shares) plus (ii) any Federal, state and local income and employment tax
      liability incurred by the Optionee or the Participant in connection with the
      option exercise or share purchase. Notwithstanding the foregoing, no Optionee
      or
      Participant may utilize this Section in violation of the prohibition on personal
      loans to or for executive officers or directors contained in Section 402 of
      the
      Sarbanes-Oxley Act of 2002.

     

    
      	
            	III.	
              TAX
                WITHHOLDING 

            

    

     

    A.  The
      Corporation’s obligation to deliver shares of Common Stock upon the exercise of
      options or the issuance or vesting of such shares under the Plan shall be
      subject to the satisfaction of all applicable Federal, state and local income
      and employment tax withholding requirements.

     

    B.  The
      Plan
      Administrator may, in its discretion, provide any or all holders of
      Non-Statutory Options or unvested shares of Common Stock under the Plan with
      the
      right to use shares of Common Stock in satisfaction of all or part of the
      Withholding Taxes incurred by such holders in connection with the exercise
      of
      their options or the vesting of their shares. Such right may be provided to
      any
      such holder in either or both of the following formats:

     

    Stock
      Withholding:
      The
      election to have the Corporation withhold, from the shares of Common Stock
      otherwise issuable upon the exercise of such Non-Statutory Option or the vesting
      of such shares, a portion of those shares with an aggregate Fair Market Value
      equal to the percentage of the Withholding Taxes (not to exceed one hundred
      percent (100%)) designated by the holder.

     

    Stock
      Delivery:
      The
      election to deliver to the Corporation, at the time the Non-Statutory Option
      is
      exercised or the shares vest, one or more shares of Common Stock previously
      acquired by such holder (other than in connection with the option exercise
      or
      share vesting triggering the Withholding Taxes) with an aggregate Fair Market
      Value equal to the percentage of the Taxes (not to exceed one hundred percent
      (100%)) designated by the holder.

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    
      	
            	IV.	
              EFFECTIVE
                DATE AND TERM OF THE PLAN

            

    

     

    A.  The
      Plan
      shall become effective immediately upon the Plan Effective Date. However, the
      Salary Investment Option Grant and Director Fee Option Grant Programs shall
      not
      be implemented until such time as the Primary Committee or the Board may deem
      appropriate. Options may be granted under the Discretionary Option Grant Program
      at any time on or after the Plan Effective Date. However, no options granted
      under the Plan may be exercised, and no shares shall be issued under the Plan,
      until the Plan is approved by the Corporation’s stockholders. If such
      stockholder approval is not obtained within twelve (12) months after the Plan
      Effective Date, then all options previously granted under this Plan shall
      terminate and cease to be outstanding, and no further options shall be granted
      and no shares shall be issued under the Plan.

     

    B.  The
      Plan
      shall serve as the successor to the Predecessor Plan, and no further options
      or
      direct stock issuances shall be made under the Predecessor Plan after the
      Section 12 Registration Date. All options outstanding under the Predecessor
      Plan
      on the Section 12 Registration Date shall be incorporated into the Plan at
      that
      time and shall be treated as outstanding options under the Plan. However, each
      outstanding option so incorporated shall continue to be governed solely by
      the
      terms of the documents evidencing such option, and no provision of the Plan
      shall be deemed to affect or otherwise modify the rights or obligations of
      the
      holders of such incorporated options with respect to their acquisition of shares
      of Common Stock.

     

    C.  One
      or
      more provisions of the Plan, including (without limitation) the option/vesting
      acceleration provisions of Article Two relating to Changes in Control, may,
      in
      the Plan Administrator’s discretion, be extended to one or more options
      incorporated from the Predecessor Plan which do not otherwise contain such
      provisions.

     

    D.  The
      Plan
      shall terminate upon the earliest
      of
      (i) March 20, 2010, (ii) the date on which all shares available
      for
      issuance under the Plan shall have been issued as fully-vested shares or (iii)
      the termination of all outstanding options in connection with a Change in
      Control. Upon such plan termination, all outstanding options and unvested stock
      issuances shall thereafter continue to have force and effect in accordance
      with
      the provisions of the documents evidencing such grants or
      issuances.

     

    
      	
            	V.	
              AMENDMENT
                OF THE PLAN

            

    

     

    A.  The
      Board
      shall have complete and exclusive power and authority to amend or modify the
      Plan in any or all respects. However, no such amendment or modification shall
      adversely affect the rights and obligations with respect to stock options or
      unvested stock issuances at the time outstanding under the Plan unless the
      Optionee or the Participant consents to such amendment or modification. In
      addition, certain amendments may require stockholder approval pursuant to
      applicable laws or regulations. 

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    B.  Options
      to purchase shares of Common Stock may be granted under the Discretionary Option
      Grant and Salary Investment Option Grant Programs and shares of Common
      Stock may be issued under the Stock Issuance Program that are in each instance
      in excess of the number of shares then available for issuance under the Plan,
      provided any excess shares actually issued under those programs shall be held
      in
      escrow until there is obtained stockholder approval of an amendment sufficiently
      increasing the number of shares of Common Stock available for issuance under
      the
      Plan. If such stockholder approval is not obtained within twelve (12) months
      after the date the first such excess issuances are made, then (i) any
      unexercised options granted on the basis of such excess shares shall terminate
      and cease to be outstanding and (ii) the Corporation shall promptly refund
      to
      the Optionees and the Participants the exercise or purchase price paid for
      any
      excess shares issued under the Plan and held in escrow, together with interest
      (at the applicable Short Term Federal Rate) for the period the shares were
      held
      in escrow, and such shares shall thereupon be automatically cancelled and cease
      to be outstanding.

     

    
      	
            	VI.	
              USE
                OF PROCEEDS

            

    

     

    Any
      cash
      proceeds received by the Corporation from the sale of shares of Common Stock
      under the Plan shall be used for general corporate purposes.

     

    
      	
            	VII.	
              REGULATORY
                APPROVALS

            

    

     

    A.  The
      implementation of the Plan, the granting of any stock option under the Plan
      and
      the issuance of any shares of Common Stock (i) upon the exercise of any granted
      option or (ii) under the Stock Issuance Program shall be subject to the
      Corporation’s procurement of all approvals and permits required by regulatory
      authorities having jurisdiction over the Plan, the stock options granted under
      it and the shares of Common Stock issued pursuant to it.

     

    B.  No
      shares
      of Common Stock or other assets shall be issued or delivered under the Plan
      unless and until there shall have been compliance with all applicable
      requirements of Federal and state securities laws and all applicable listing
      requirements of any stock exchange (or the Nasdaq Stock Market, if applicable)
      on which Common Stock is then listed for trading, and shall be further subject
      to the approval of counsel for the Corporation with respect to such compliance.
      

     

    
      	
            	VIII.	
              NO
                EMPLOYMENT/SERVICE RIGHTS

            

    

     

    Nothing
      in the Plan shall confer upon the Optionee or the Participant any right to
      continue in Service for any period of specific duration or interfere with or
      otherwise restrict in any way the rights of the Corporation (or any Parent
      or
      Subsidiary employing or retaining such person) or of the Optionee or the
      Participant, which rights are hereby expressly reserved by each, to terminate
      such person’s Service at any time for any reason, with or without
      cause.

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    APPENDIX
      A 

     

     

    The
      following definitions shall be in effect under the Plan:

     

    A.  Automatic
      Option Grant Program
      shall
      mean the automatic option grant program in effect under the Plan.

     

    B.  Beneficiary
      shall
      mean, in the event the Plan Administrator implements a beneficiary designation
      procedure, the person designated by an Optionee or Participant, pursuant to
      such
      procedure, to succeed to such person’s rights under any outstanding awards held
      by him or her at the time of death. In the absence of such designation or
      procedure, the Beneficiary shall be the personal representative of the estate
      of
      the Optionee or Participant or the person or persons to whom the award is
      transferred by will or the laws of inheritance.

     

    C.  Board
      shall
      mean the Corporation’s Board of Directors.

     

    D.  Change
      in Control shall
      mean a change in ownership or control of the Corporation effected through any
      of
      the following transactions:

     

    (i)  a
      merger,
      consolidation or reorganization approved by the Corporation’s stockholders,
unless
      securities representing more than fifty percent (50%) of the total combined
      voting power of the voting securities of the successor corporation are
      immediately thereafter beneficially owned, directly or indirectly and in
      substantially the same proportion, by the persons who beneficially owned the
      Corporation’s outstanding voting securities immediately prior to such
      transaction,

     

    (ii)  any
      stockholder-approved transfer or other disposition of all or substantially
      all
      of the Corporation’s assets, or

     

    (iii)  the
      acquisition, directly or indirectly by any person or related group of persons
      (other than the Corporation or a person that directly or indirectly controls,
      is
      controlled by, or is under common control with, the Corporation), of beneficial
      ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities
      possessing more than fifty percent (50%) of the total combined voting power
      of
      the Corporation’s outstanding securities pursuant to a tender or exchange offer
      made directly to the Corporation’s stockholders which the Board recommends such
      stockholders accept.

     

    E.  Code shall
      mean the Internal Revenue Code of 1986, as amended.

     

    F.  Common
      Stock
      shall
      mean the Corporation’s common stock.

     

    G.  Corporation shall
      mean LivePerson, Inc., a Delaware corporation, and any corporate successor
      to
      all or substantially all of the assets or voting stock of LivePerson, Inc.
      which
      shall by appropriate action adopt the Plan.

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    H.  Director
      Fee Option Grant Program
      shall
      mean the director fee option grant program in effect under the
      Plan.

     

    I.  Discretionary
      Option Grant Program shall
      mean the discretionary option grant program in effect under the
      Plan.

     

    J.  Employee shall
      mean an individual who is in the employ of the Corporation (or any Parent or
      Subsidiary), subject to the control and direction of the employer entity as
      to
      both the work to be performed and the manner and method of
      performance.

     

    K.  Exercise
      Date shall
      mean the date on which the Corporation shall have received written notice of
      the
      option exercise.

     

    L.  Fair
      Market Value per
      share
      of Common Stock on any relevant date shall be determined in accordance with
      the
      following provisions:

     

    (i)  If
      the
      Common Stock is at the time traded on the Nasdaq Stock Market, then the Fair
      Market Value shall be the closing selling price per share of Common Stock on
      the
      date in question, as such price is reported on the Nasdaq Stock Market or any
      successor system and in The Wall Street Journal. If there is no closing selling
      price for the Common Stock on the date in question, then the Fair Market Value
      shall be the closing selling price on the last preceding date for which such
      quotation exists.

     

    (ii)  If
      the
      Common Stock is at the time listed on any Stock Exchange, then the Fair Market
      Value shall be the closing selling price per share of Common Stock on the date
      in question on the Stock Exchange determined by the Plan Administrator to be
      the
      primary market for the Common Stock, as such price is officially quoted in
      the
      composite tape of transactions on such exchange and reported in The Wall Street
      Journal. If there is no closing selling price for the Common Stock on the date
      in question, then the Fair Market Value shall be the closing selling price
      on
      the last preceding date for which such quotation exists.

     

    (iii)  For
      purposes of any option grants made on the Underwriting Date, the Fair Market
      Value shall be deemed to be equal to the price per share at which the Common
      Stock is to be sold in the initial public offering pursuant to the Underwriting
      Agreement.

     

    (iv)  For
      purposes of any options made prior to the Underwriting Date, the Fair Market
      Value shall be determined by the Plan Administrator, after taking into account
      such factors as it deems appropriate.

     

    M.  Hostile
      Take-Over
      shall
      mean: 

     

    (i)  the
      acquisition, directly or indirectly, by any person or related group of persons
      (other than the Corporation or a person that directly or indirectly controls,
      is
      controlled by, or is under common control with, the Corporation) of beneficial
      ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities
      possessing more than fifty percent (50%) of the total combined voting power
      of
      the Corporation’s outstanding securities pursuant to a tender or exchange offer
      made directly to the Corporation’s stockholders which the Board does not
      recommend such stockholders to accept, or 

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    (ii)  a
      change
      in the composition of the Board over a period of thirty-six (36) consecutive
      months or less such that a majority of the Board members ceases, by reason
      of
      one or more contested elections for Board membership, to be comprised of
      individuals who either (A) have been Board members continuously since the
      beginning of such period or (B) have been elected or nominated for election
      as
      Board members during such period by at least a majority of the Board members
      described in clause (A) who were still in office at the time the Board approved
      such election or nomination. 

     

    N.  Incentive
      Option
      shall
      mean an option which satisfies the requirements of Code Section
      422.

     

    O.  Involuntary
      Termination shall
      mean the termination of the Service of any individual which occurs by reason
      of:

     

    (i)  such
      individual’s involuntary dismissal or discharge by the Corporation for reasons
      other than Misconduct, or 

     

    (ii)  such
      individual’s voluntary resignation following (A) a change in his or her position
      with the Corporation or Parent or Subsidiary employing the individual which
      materially reduces his or her duties and responsibilities or the level of
      management to which he or she reports, (B) a reduction in his or her level
      of
      compensation (including base salary, fringe benefits and target bonus under
      any
      corporate-performance based bonus or incentive programs) by more than fifteen
      percent (15%) or (C) a relocation of such individual’s place of employment by
      more than fifty (50) miles, provided and only if such change, reduction
      or
      relocation is effected by the Corporation without the individual’s
      consent.

     

    P.  Misconduct shall
      mean the commission of any act of fraud, embezzlement or dishonesty by the
      Optionee or Participant, any unauthorized use or disclosure by such person
      of
      confidential information or trade secrets of the Corporation (or any Parent
      or
      Subsidiary), or any intentional wrongdoing by such person, whether by omission
      or commission, which adversely affects the business or affairs of the
      Corporation (or any Parent or Subsidiary) in a material manner. This shall
      not
      limit the grounds for the dismissal or discharge of any person in the Service
      of
      the Corporation (or any Parent or Subsidiary). 

     

    Q.  1934
      Act
      shall
      mean the Securities Exchange Act of 1934, as amended.

     

    R.  Non-Statutory
      Option shall
      mean an option not intended to satisfy the requirements of Code Section
      422.

     

    S.  Option
      Surrender Value
      shall
      mean the Fair Market Value per share of Common Stock on the date the option
      is
      surrendered to the Corporation or, in the event of a Hostile Take-Over, effected
      through a tender offer, the highest reported price per share of Common Stock
      paid by the tender offeror in effecting such Hostile Take-Over, if greater.
      However, if the surrendered option is an Incentive Option, the Option Surrender
      Value shall not exceed the Fair Market Value per share.

     

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    T.  Optionee shall
      mean any person to whom an option is granted under the Discretionary Option
      Grant, Salary Investment Option Grant, Automatic Option Grant or Director Fee
      Option Grant Program.

     

    U.  Parent shall
      mean any corporation (other than the Corporation) in an unbroken chain of
      corporations ending with the Corporation, provided each corporation in the
      unbroken chain (other than the Corporation) owns, at the time of the
      determination, stock possessing fifty percent (50%) or more of the total
      combined voting power of all classes of stock in one of the other corporations
      in such chain. 

     

    V.  Participant shall
      mean any person who is issued shares of Common Stock under the Stock Issuance
      Program.

     

    W.  Performance
      Goals, as
      defined in Article Four and Appendix
      B,
      shall
      mean specified performance objectives as determined by the Plan
      Administrator.

     

    X.  Permanent
      Disability or Permanently Disabled shall
      mean the inability of the Optionee or the Participant to engage in any
      substantial gainful activity by reason of any medically determinable physical
      or
      mental impairment expected to result in death or to be of continuous duration
      of
      twelve (12) months or more. However, solely for purposes of the Automatic Option
      Grant and Director Fee Option Grant Programs, Permanent Disability or
      Permanently Disabled shall mean the inability of the non-employee Board member
      to perform his or her usual duties as a Board member by reason of any medically
      determinable physical or mental impairment expected to result in death or to
      be
      of continuous duration of twelve (12) months or more.

     

    Y.  Plan shall
      mean the Corporation’s 2000 Stock Incentive Plan, as set forth in this
      document.

     

    Z.  Plan
      Administrator shall
      mean the particular entity, whether the Primary Committee, the Board or the
      Secondary Committee, which is authorized to administer the Discretionary Option
      Grant, Salary Investment Option Grant and Stock Issuance Programs with respect
      to one or more classes of eligible persons, to the extent such entity is
      carrying out its administrative functions under those programs with respect
      to
      the persons under its jurisdiction. However, the Primary Committee shall have
      the plenary authority to make all factual determinations and to construe and
      interpret any and all ambiguities under the Plan to the extent such authority
      is
      not otherwise expressly delegated to any other Plan Administrator.

     

    AA.  Plan
      Effective Date
      shall
      mean March 21, 2000, the date on which the Plan was adopted by the
      Board.

     

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    BB.  Predecessor
      Plan
      shall
      mean the Corporation’s pre-existing Stock Option and Restricted Stock Purchase
      Plan in effect immediately prior to the Plan Effective Date
      hereunder.

     

    CC.  Primary
      Committee shall
      mean the committee of two (2) or more non-employee Board members appointed
      by
      the Board (each of whom is intended to be a “Non-Employee Director” (within the
      meaning of Rule 16b-3), an “independent director” (within the meaning of NASD
      Rule 4200(a)(15) or such other applicable stock exchange rule) and an “outside
      director” (within the meaning of Code Section 162(m)) to administer the
      Discretionary Option Grant and Stock Issuance Programs with respect to Section
      16 Insiders and to administer the Salary Investment Option Grant Program with
      respect to all eligible individuals.

     

    DD.  Rule
      16b-3
      shall
      mean Rule 16b-3 of the 1934 Act or any successor to Rule 16b-3, as in effect
      when discretion is being exercised with respect to the Plan.

     

    EE.  Salary
      Investment Option Grant Program
      shall
      mean the salary investment grant program in effect under the Plan.

     

    FF.  Secondary
      Committee shall
      mean a committee of one (1) or more Board members appointed by the Board to
      administer the Discretionary Option Grant and Stock Issuance Programs with
      respect to eligible persons other than Section 16 Insiders. 

     

    GG.  Section
      12 Registration Date
      shall
      mean the date on which the Common Stock is first registered under Section 12(g)
      of the 1934 Act.

     

    HH.  Section
      16 Insider shall
      mean an officer or director of the Corporation subject to the short-swing profit
      liabilities of Section 16 of the 1934 Act.

     

    II.  Service shall
      mean the performance of services for the Corporation (or any Parent or
      Subsidiary) by a person in the capacity of an Employee, a non-employee member
      of
      the board of directors or a consultant or independent advisor (whether a natural
      person or entity), except to the extent otherwise specifically provided in
      the
      documents evidencing the option grant or stock issuance.

     

    JJ.  Stock
      Exchange shall
      mean either the American Stock Exchange or the New York Stock
      Exchange.

     

    KK.  Stock
      Issuance Program shall
      mean the stock issuance program in effect under the Plan.

     

    LL.  Subsidiary
      shall
      mean any corporation (other than the Corporation) in an unbroken chain of
      corporations beginning with the Corporation, provided each corporation (other
      than the last corporation) in the unbroken chain owns, at the time of the
      determination, stock possessing fifty percent (50%) or more of the total
      combined voting power of all classes of stock in one of the other corporations
      in such chain.

     

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

    MM.  10%
      Stockholder
      shall
      mean the owner of stock (as determined under Code Section 424(d)) possessing
      more than ten percent (10%) of the total combined voting power of all classes
      of
      stock of the Corporation (or any Parent or Subsidiary).

     

    NN.  Underwriting
      Agreement
      shall
      mean the agreement between the Corporation and the underwriter or underwriters
      managing the initial public offering of the Common Stock.

     

    OO.  Underwriting
      Date
      shall
      mean the date on which the Underwriting Agreement is executed and priced in
      connection with an initial public offering of the Common Stock.

     

    PP.  Withholding
      Taxes
      shall
      mean the Federal, state and local income and employment withholding tax
      liabilities to which the holder of Non-Statutory Options or unvested shares
      of
      Common Stock may become subject in connection with the exercise of those options
      or the vesting of those shares.

     

    

    

    
      
         

      

      
        A-6

        
          

        

      

      
         

        
        

      

    

    APPENDIX
      B 

     

    Performance
      Goals

     

    Performance
      goals established for purposes of the grant and/or vesting of Common Stock
      intended to be “performance-based” under Section 162(m) of the Code shall be
      based on one or more of the following performance goals (“Performance Goals”):
      (i) the attainment of certain target levels of, or a specified increase in,
      enterprise value or value creation targets of the Corporation (or any
      subsidiary, division or other operational unit of the Corporation); (ii) the
      attainment of certain target levels of, or a percentage increase in after-tax
      or
      pre-tax profits of the Corporation, including without limitation that
      attributable to continuing and/or other operations of the Corporation (or in
      either case a subsidiary, division, or other operational unit of the
      Corporation); (iii) the attainment of certain target levels of, or a specified
      increase in, operational cash flow of the Corporation (or a subsidiary,
      division, or other operational unit of the Corporation); (iv) the attainment
      of
      a certain level of reduction of, or other specified objectives with regard
      to
      limiting the level of increase in all or a portion of, the Corporation’s bank
      debt or other long-term or short-term public or private debt or other similar
      financial obligations of the Corporation, which may be calculated net of cash
      balances and/or other offsets and adjustments as may be established by the
      Plan
      Administrator; (v) the attainment of a specified percentage increase in earnings
      per share or earnings per share from continuing operations of the Corporation
      (or a subsidiary, division or other operational unit of the Corporation); (vi)
      the attainment of certain target levels of, or a specified percentage increase
      in, net sales, revenues, net income or earnings before income tax or other
      exclusions of the Corporation (or a subsidiary, division, or other operational
      unit of the Corporation); (vii) the attainment of certain target levels of,
      or a
      specified increase in, return on capital employed or return on invested capital
      of the Corporation (or any subsidiary, division or other operational unit of
      the
      Corporation); (viii) the attainment of certain target levels of, or a percentage
      increase in, after-tax or pre-tax return on stockholder equity of the
      Corporation (or any subsidiary, division or other operational unit of the
      Corporation); (ix) the attainment of certain target levels in the fair market
      value of the shares of the Corporation’s Common Stock; or (x) the growth in the
      value of an investment in the Corporation’s Common Stock assuming the
      reinvestment of dividends.

     

    In
      addition, such Performance Goals may be based upon the attainment of specified
      levels of Corporation (or subsidiary, division or other operational unit of
      the
      Corporation) performance under one or more of the measures described above
      relative to the performance of other corporations. To the extent permitted
      under
      Section 162(m) of the Code, but only to the extent permitted under Section
      162(m) of the Code (including, without limitation, compliance with any
      requirements for stockholder approval), the Plan Administrator may: (i)
      designate additional business criteria on which the Performance Goals may be
      based, or (ii) adjust, modify or amend the aforementioned business
      criteria.

     

    
      
         

      

      
        B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]