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                                                                    EXHIBIT 10.2

                               WEBSIDESTORY, INC.
                        2004 EQUITY INCENTIVE AWARD PLAN

                                    ARTICLE 1

                                     PURPOSE

The purpose of the WebSideStory, Inc. 2004 Equity Incentive Award Plan (the
"PLAN") is to promote the success and enhance the value of WebSideStory, Inc.
(the "COMPANY") by linking the personal interests of members of the Board,
Employees, and Consultants to those of the Company's stockholders and by
providing an incentive to members of the Board, Employees, and Consultants for
outstanding performance to generate superior returns to the Company's
stockholders. The Plan is also intended to provide flexibility to the Company in
its ability to motivate, attract, and retain the services of members of the
Board, Employees, and Consultants upon whose judgment, interest, and special
effort the successful conduct of the Company's operation largely depends.
All share numbers set forth in this Plan give effect to the 3.5-for-1 reverse
stock split implemented by the Company in connection with its initial public
offering.

                                   ARTICLE 2

                          DEFINITIONS AND CONSTRUCTION

Wherever the following terms are used in the Plan they will have the meanings
given below, unless the context clearly indicates otherwise. The singular
pronoun includes the plural where the context so indicates.

      2.1   "AWARD" means an Option, a Restricted Stock award, a Stock
Appreciation Right award, a Performance Share award, a Performance Stock Unit
award, a Dividend Equivalents award, a Stock Payment award, a Deferred Stock
award, a Restricted Stock Unit award, an Other Stock-Based Award, a Performance
Bonus Award, or a Performance-Based Award granted to a Participant pursuant to
the Plan.

      2.2   "AWARD AGREEMENT" means any written agreement, contract, or other
instrument or document evidencing an Award.

      2.3   "BOARD" means the board of directors of the Company.

      2.4   "CHANGE IN CONTROL" means and includes each of the following:

            (a)   A transaction or series of transactions (other than an
offering of Stock to the general public through a registration statement filed
with the Securities and Exchange Commission) whereby any "person" or related
"group" of "persons" (as such terms are used in Sections 13(d) and 14(d)(2) of
the Exchange Act) (other than the Company, any of its subsidiaries, an employee
benefit plan maintained by the Company or any of its subsidiaries or a "person"
that, prior to such transaction, directly or indirectly controls, is controlled
by, or is under common control with, the Company) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of securities of the Company possessing more than 50% of the total
combined voting power of the Company's securities outstanding immediately after
such acquisition; or

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            (b)   During any period of two consecutive years, individuals who,
at the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have entered
into an agreement with the Company to effect a transaction described in Section
2.4(a) or Section 2.4(c)) whose election by the Board or nomination for election
by the Company's stockholders was approved by a vote of at least two-thirds of
the directors then still in office who either were directors at the beginning of
the two year period or whose election or nomination for election was previously
so approved, cease for any reason to constitute a majority thereof; or

            (c)   The consummation by the Company (whether directly involving
the Company or indirectly involving the Company through one or more
intermediaries) of (x) a merger, consolidation, reorganization, or business
combination or (y) a sale or other disposition of all or substantially all of
the Company's assets or (z) the acquisition of assets or stock of another
entity, in each case other than a transaction:

                  (i)   Which results in the Company's voting securities
outstanding immediately before the transaction continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
Company or the person that, as a result of the transaction, controls, directly
or indirectly, the Company or owns, directly or indirectly, all or substantially
all of the Company's assets or otherwise succeeds to the business of the Company
(the Company or such person, the "SUCCESSOR ENTITY")) directly or indirectly, at
least a majority of the combined voting power of the Successor Entity's
outstanding voting securities immediately after the transaction, and

                  (ii)  After which no person or group beneficially owns voting
securities representing 50% or more of the combined voting power of the
Successor Entity; provided, however, that no person or group will be treated for
purposes of this Section 2.4(c)(ii) as beneficially owning 50% or more of
combined voting power of the Successor Entity solely as a result of the voting
power held in the Company prior to the consummation of the transaction; or

            (d)   The Company's stockholders approve a liquidation or
dissolution of the Company.

The Committee will have full and final authority, which will be exercised in its
discretion, to determine conclusively whether a Change in Control of the Company
has occurred pursuant to the above definition, and the date of the occurrence of
such Change in Control and any incidental matters relating thereto.

      2.5   "CODE" means the Internal Revenue Code of 1986, as amended.

      2.6   "COMMITTEE" means the committee of the Board described in Article
12.

      2.7   "CONSULTANT" means any consultant or adviser if:

            (a)   The consultant or adviser renders bona fide services to the
Company;

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            (b)   The services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a capital-raising transaction
and do not directly or indirectly promote or maintain a market for the Company's
securities; and

            (c)   The consultant or adviser is a natural person who has
contracted directly with the Company to render such services.

     2.8   "COVERED EMPLOYEE" means an Employee who is, or could be, a "covered
employee" within the meaning of Section 162(m) of the Code.

     2.9   "DEFERRED STOCK" means a right to receive a specified number of
shares of Stock during specified time periods pursuant to Article 8.

     2.10  "DISABILITY" means that the Participant qualifies to receive
long-term disability payments under the Company's long-term disability insurance
program, as it may be amended from time to time.

     2.11  "DIVIDEND EQUIVALENTS" means a right granted to a Participant
pursuant to Article 8 to receive the equivalent value (in cash or Stock) of
dividends paid on Stock.

     2.12  "EFFECTIVE DATE" has the meaning set forth in Section 13.1.

     2.13  "ELIGIBLE INDIVIDUAL" means any person who is a member of the Board,
Consultant or Employee, as determined by the Committee.

     2.14  "EMPLOYEE" means any officer or other employee (as defined in
accordance with Section 3401(c) of the Code) of the Company or any Subsidiary.

     2.15  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

     2.16  "FAIR MARKET VALUE" means, as of any date, the value of Stock
determined as follows:

           (1)   If the Stock is listed on any established stock exchange or a
national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value
will be the closing sales price for such stock (or the closing bid, if no sales
were reported) as quoted on such exchange or system for the last market trading
day prior to the date of determination, as reported in The Wall Street Journal
or such other source that the Committee deems reliable;

           (2)   If the Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value will be the
mean of the closing bid and asked prices for the Stock on the date prior to the
date of determination as reported in The Wall Street Journal or such other
source as the Committee deems reliable; or

           (3)   In the absence of an established market for the Stock, the Fair
Market Value thereof will be determined in good faith by the Committee.

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      2.17  "INCENTIVE STOCK OPTION" means an Option that is intended to meet
the requirements of Section 422 of the Code or any successor provision thereto.

      2.18  "INDEPENDENT DIRECTOR" means a member of the Board who is not an
Employee of the Company.

      2.19  "NON-EMPLOYEE DIRECTOR" means a member of the Board who qualifies as
a "Non-Employee Director" as defined in Rule 16b-3(b)(3) of the Exchange Act, or
any successor definition adopted by the Board.

      2.20  "NON-QUALIFIED STOCK OPTION" means an Option that is not intended to
be an Incentive Stock Option.

      2.21  "OPTION" means a right granted to a Participant pursuant to Article
5 of the Plan to purchase a specified number of shares of Stock at a specified
price during specified time periods. An Option may be either an Incentive Stock
Option or a Non-Qualified Stock Option.

      2.22  "OTHER STOCK-BASED AWARD" means an Award granted or denominated in
Stock or units of Stock pursuant to Section 8.7 of the Plan.

      2.23  "PARTICIPANT" means any Eligible Individual who, as a member of the
Board, Consultant or Employee, has been granted an Award pursuant to the Plan.

      2.24  "PERFORMANCE-BASED AWARD" means an Award granted to selected Covered
Employees pursuant to Articles 6 and 8, but which is subject to the terms and
conditions set forth in Article 9. All Performance-Based Awards are intended to
qualify as Qualified Performance-Based Compensation.

      2.25  "PERFORMANCE BONUS AWARD" has the meaning set forth in Section 8.8.

      2.26  "PERFORMANCE CRITERIA" means the criteria that the Committee selects
for purposes of establishing the Performance Goal or Performance Goals for a
Participant for a Performance Period. The Performance Criteria that will be used
to establish Performance Goals are limited to the following: net earnings
(either before or after interest, taxes, depreciation and amortization),
economic value-added (as determined by the Committee), sales or revenue, net
income (either before or after taxes), operating earnings, cash flow (including,
but not limited to, operating cash flow and free cash flow), cash flow return on
capital, return on net assets, return on stockholders' equity, return on assets,
return on capital, stockholder returns, return on sales, gross or net profit
margin, productivity, expense, margins, operating efficiency, customer
satisfaction, working capital, earnings per share, price per share of Stock, and
market share, any of which may be measured either in absolute terms or as
compared to any incremental increase or as compared to results of a peer group.
The Committee will, within the time prescribed by Section 162(m) of the Code,
define in an objective fashion the manner of calculating the Performance
Criteria it selects to use for such Performance Period for such Participant.

      2.27  "PERFORMANCE GOALS" means, for a Performance Period, the goals
established in writing by the Committee for the Performance Period based upon
the Performance Criteria. Depending on the Performance Criteria used to
establish such Performance Goals, the

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Performance Goals may be expressed in terms of overall Company performance or
the performance of a division, business unit, or an individual. The Committee,
in its discretion, may, within the time prescribed by Section 162(m) of the
Code, adjust or modify the calculation of Performance Goals for such Performance
Period in order to prevent the dilution or enlargement of the rights of
Participants (i) in the event of, or in anticipation of, any unusual or
extraordinary corporate item, transaction, event, or development, or (ii) in
recognition of, or in anticipation of, any other unusual or nonrecurring events
affecting the Company, or the financial statements of the Company, or in
response to, or in anticipation of, changes in applicable laws, regulations,
accounting principles, or business conditions.

      2.28  "PERFORMANCE PERIOD" means the one or more periods of time, which
may be of varying and overlapping durations, as the Committee may select, over
which the attainment of one or more Performance Goals will be measured for the
purpose of determining a Participant's right to, and the payment of, a
Performance-Based Award.

      2.29  "PERFORMANCE SHARE" means a right granted to a Participant pursuant
to Article 8, to receive Stock, the payment of which is contingent upon
achieving certain Performance Goals or other performance based targets
established by the Committee.

      2.30  "PERFORMANCE STOCK UNIT" means a right granted to a Participant
pursuant to Article 8, to receive Stock, the payment of which is contingent upon
achieving certain Performance Goals or other performance-based targets
established by the Committee.

      2.31  "PLAN" means this WebSideStory, Inc. 2004 Equity Incentive Award
Plan, as it may be amended from time to time.

      2.32  "PUBLIC TRADING DATE" means the first date upon which Stock is
listed (or approved for listing) upon notice of issuance on any securities
exchange or designated (or approved for designation) upon notice of issuance as
a national market security on an interdealer quotation system.

      2.33  "QUALIFIED PERFORMANCE-BASED COMPENSATION" means any compensation
that is intended to qualify as "qualified performance-based compensation" as
described in Section 162(m)(4)(C) of the Code.

      2.34  "RESTRICTED STOCK" means Stock awarded to a Participant pursuant to
Article 6 that is subject to certain restrictions and may be subject to risk of
forfeiture.

      2.35  "RESTRICTED STOCK UNIT" means an Award granted pursuant to Section
8.6.

      2.36  "SECURITIES ACT" means the Securities Act of 1933, as amended.

      2.37  "STOCK" means the common stock of the Company, par value $0.001 per
share, and such other securities of the Company that may be substituted for
Stock pursuant to Article 11.

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      2.38 "STOCK APPRECIATION RIGHT" or "SAR" means a right granted pursuant to
Article 7 to receive a payment equal to the excess of the Fair Market Value of a
specified number of shares of Stock on the date the SAR is exercised over the
Fair Market Value on the date the SAR was granted as set forth in the applicable
Award Agreement.

      2.39  "STOCK PAYMENT" means (a) a payment in the form of shares of Stock,
or (b) an option or other right to purchase shares of Stock, as part of any
bonus, deferred compensation or other arrangement, made in lieu of all or any
portion of the compensation, granted pursuant to Article 8.

      2.40  "SUBSIDIARY" means any "subsidiary corporation" as defined in
Section 424(f) of the Code and any applicable regulations promulgated thereunder
or any other entity of which a majority of the outstanding voting stock or
voting power is beneficially owned directly or indirectly by the Company.

                                    ARTICLE 3

                           SHARES SUBJECT TO THE PLAN

      3.1   Number of Shares.

            (a)   Subject to Article 11 and Section 3.1(b), the aggregate number
of shares of Stock which may be issued or transferred pursuant to Awards under
the Plan will be 2,100,000 shares. In addition to the foregoing, subject to
Article 11, commencing on January 1, 2005 and on each January 1 thereafter
during the term of the Plan through and including January 1, 2014, the number of
shares of Stock which may be issued or transferred pursuant to Awards under the
Plan will be increased by that number of shares of Stock equal to the least of
(i) four percent (4%) of the Company's outstanding shares of Stock on such date,
(ii) 1,000,000 shares, or (iii) a lesser amount determined by the Board. To
satisfy the applicable regulations under the Code relating to Incentive Stock
Options, the maximum number of shares of Stock that may be delivered in
connection with Awards under the Plan will be 12,100,000 shares.

            (b)   To the extent that an Award terminates, expires, or lapses for
any reason, any shares of Stock subject to the Award will again be available for
the grant of an Award pursuant to the Plan. Additionally, any shares of Stock
tendered or withheld to satisfy the grant or exercise price or tax withholding
obligation pursuant to any Award will again be available for the grant of an
Award pursuant to the Plan. To the extent permitted by applicable law or any
exchange rule, shares of Stock issued in assumption of, or in substitution for,
any outstanding awards of any entity acquired in any form of combination by the
Company or any Subsidiary will not be counted against shares of Stock available
for grant pursuant to this Plan.

      3.2   Stock Distributed. Any Stock distributed pursuant to an Award may
consist, in whole or in part, of authorized and unissued Stock, treasury Stock
or Stock purchased on the open market.

      3.3   Limitation on Number of Shares Subject to Awards. Notwithstanding
any provision in the Plan to the contrary, and subject to Article 11, the
maximum number of shares of Stock with respect to one or more Awards that may be
granted to any one Participant during a

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rolling three-year period (measured from the date of any grant) will be
1,500,000; provided, however, that the foregoing limitation will not apply prior
to the Public Trading Date and, following the Public Trading Date, the foregoing
limitation will not apply until the earliest of: (a) the first material
modification of the Plan (including any increase in the number of shares
reserved for issuance under the Plan in accordance with Section 3.1); (b) the
issuance of all of the shares of Stock reserved for issuance under the Plan; (c)
the expiration of the Plan; (d) the first meeting of stockholders at which
members of the Board are to be elected that occurs after the close of the third
calendar year following the calendar year in which occurred the first
registration of an equity security of the Company under Section 12 of the
Exchange Act; or (e) such other date required by Section 162(m) of the Code and
the rules and regulations promulgated thereunder.

                                   ARTICLE 4

                          ELIGIBILITY AND PARTICIPATION

      4.1   Eligibility.

            (a)   General. Persons eligible to participate in this Plan include
Employees, Consultants and all members of the Board, as determined by the
Committee.

            (b)   Foreign Participants. In order to assure the viability of
Awards granted to Participants employed in foreign countries, the Committee may
provide for such special terms as it may consider necessary or appropriate to
accommodate differences in local law, tax policy, or custom. Moreover, the
Committee may approve such supplements to, or amendments, restatements, or
alternative versions of, the Plan as it may consider necessary or appropriate
for such purposes without thereby affecting the terms of the Plan as in effect
for any other purpose; provided, however, that no such supplements, amendments,
restatements, or alternative versions will increase the share limitations
contained in Sections 3.1 and 3.3 of the Plan.

      4.2   Participation. Subject to the provisions of the Plan, the Committee
may, from time to time, select from among all Eligible Individuals, those to
whom Awards will be granted and will determine the nature and amount of each
Award. No individual will have any right to be granted an Award pursuant to this
Plan.

                                    ARTICLE 5

                                  STOCK OPTIONS

      5.1   General. The Committee is authorized to grant Options to
Participants on the following terms and conditions:

            (a)   Exercise Price. The exercise price per share of Stock subject
to an Option will be determined by the Committee and set forth in the Award
Agreement; provided that the exercise price for any Option will not be less than
par value of a share of Stock on the date of grant.

            (b)   Time and Conditions of Exercise. The Committee will determine
the time

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or times at which an Option may be exercised in whole or in part; provided that
the term of any Option granted under the Plan will not exceed ten years. The
Committee will also determine the performance or other conditions, if any, that
must be satisfied before all or part of an Option may be exercised.

            (c)   Payment. The Committee will determine the methods by which the
exercise price of an Option may be paid, the form of payment, including, without
limitation, cash, promissory note bearing interest at no less than such rate as
will then preclude the imputation of interest under the Code, shares of Stock
held for such period of time as may be required by the Committee in order to
avoid adverse accounting consequences and having a Fair Market Value on the date
of delivery equal to the aggregate exercise price of the Option or exercised
portion thereof, or other property acceptable to the Committee (including
through the delivery of a notice that the Participant has placed a market sell
order with a broker with respect to shares of Stock then issuable upon exercise
of the Option, and that the broker has been directed to pay a sufficient portion
of the net proceeds of the sale to the Company in satisfaction of the Option
exercise price; provided that payment of such proceeds is then made to the
Company upon settlement of such sale), and the methods by which shares of Stock
will be delivered or deemed to be delivered to Participants. Notwithstanding any
other provision of the Plan to the contrary, no Participant who is a member of
the Board or an "executive officer" of the Company within the meaning of Section
13(k) of the Exchange Act will be permitted to pay the exercise price of an
Option in any method which would violate Section 13(k) of the Exchange Act.

            (d)   Evidence of Grant. All Options will be evidenced by a written
Award Agreement between the Company and the Participant. The Award Agreement
will include such additional provisions as may be specified by the Committee.

      5.2   Incentive Stock Options. Incentive Stock Options may be granted only
to employees (as defined in accordance with Section 3401(c) of the Code) of the
Company and the Company's "subsidiary corporations" as that term is defined in
Section 424(f) of the Code and any applicable regulations promulgated
thereunder, and the terms of any Incentive Stock Options granted pursuant to the
Plan must comply with the following additional provisions of this Section 5.2:

            (a)   Exercise Price. The exercise price per share of Stock will be
set by the Committee; provided that the exercise price for any Incentive Stock
Option will not be less than 100% of the Fair Market Value on the date of grant.

            (b)   Expiration of Option. An Incentive Stock Option may not be
exercised to any extent by anyone after the tenth anniversary of the date it is
granted, unless an earlier time is set in the Award Agreement.

            (c)   Individual Dollar Limitation. The aggregate Fair Market Value
(determined as of the time the Option is granted) of all shares of Stock with
respect to which Incentive Stock Options are first exercisable by a Participant
in any calendar year may not exceed $100,000.00 or such other limitation as
imposed by Section 422(d) of the Code, or any successor provision. To the extent
that Incentive Stock Options are first exercisable by a

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Participant in excess of such limitation, the excess will be considered
Non-Qualified Stock Options.

            (d)   Ten Percent Owners. An Incentive Stock Option will be granted
to any individual who, at the date of grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of Stock of the
Company or any "subsidiary corporation" of the Company or "parent corporation"
of the Company (each within the meaning of Section 424 of the Code) only if such
Option is granted at a price that is not less than 110% of Fair Market Value on
the date of grant and the Option is exercisable for no more than five years from
the date of grant.

            (e)   Transfer Restriction. The Participant will give the Company
prompt notice of any disposition of shares of Stock acquired by exercise of an
Incentive Stock Option within (i) two years from the date of grant of such
Incentive Stock Option or (ii) one year after the transfer of such shares of
Stock to the Participant.

            (f)   Expiration of Incentive Stock Options. No Award of an
Incentive Stock Option may be made pursuant to this Plan after the Expiration
Date.

            (g)   Right to Exercise. During a Participant's lifetime, an
Incentive Stock Option may be exercised only by the Participant.

      5.3   Substitution of Stock Appreciation Rights. The Committee may provide
in the Award Agreement evidencing the grant of an Option that the Committee, in
its sole discretion, will have to right to substitute a Stock Appreciation Right
for such Option at any time prior to or upon exercise of such Option, subject to
the provisions of Section 7.2 hereof; provided that such Stock Appreciation
Right will be exercisable for the same number of shares of Stock as such
substituted Option would have been exercisable for.

      5.4   Paperless Exercise. In the event that the Company establishes, for
itself or using the services of a third party, an automated system for the
exercise of Options, such as a system using an internet website or interactive
voice response, then the paperless exercise of Options by a Participant may be
permitted through the use of such an automated system.

                                    ARTICLE 6

                             RESTRICTED STOCK AWARDS

      6.1   Grant of Restricted Stock. The Committee is authorized to make
Awards of Restricted Stock to any Participant selected by the Committee in such
amounts and subject to such terms and conditions as determined by the Committee.
All Awards of Restricted Stock will be evidenced by a written Restricted Stock
Award Agreement.

      6.2   Issuance and Restrictions. Restricted Stock will be subject to such
restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the
Committee determines at the time of the

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grant of the Award or thereafter.

      6.3   Forfeiture. Except as otherwise determined by the Committee at the
time of the grant of the Award or thereafter, upon termination of employment or
service during the applicable restriction period, Restricted Stock that is at
that time subject to restrictions will be forfeited; provided, however, that,
the Committee may (a) provide in any Restricted Stock Award Agreement that
restrictions or forfeiture conditions relating to Restricted Stock will be
waived in whole or in part in the event of terminations resulting from specified
causes, and (b) in other cases waive in whole or in part restrictions or
forfeiture conditions relating to Restricted Stock.

      6.4   Certificates for Restricted Stock. Restricted Stock granted pursuant
to the Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing shares of Restricted Stock are registered in the name
of the Participant, certificates must bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Stock, and
the Company may, at its discretion, retain physical possession of the
certificate until such time as all applicable restrictions lapse.

                                    ARTICLE 7

                            STOCK APPRECIATION RIGHTS

      7.1   Grant of Stock Appreciation Rights. A Stock Appreciation Right may
be granted to any Participant selected by the Committee. A Stock Appreciation
Right may be granted (a) in connection and simultaneously with the grant of an
Option, (b) with respect to a previously granted Option, or (c) independent of
an Option. A Stock Appreciation Right will be subject to such terms and
conditions not inconsistent with the Plan as the Committee shall impose and will
be evidenced by an Award Agreement.

      7.2   Coupled Stock Appreciation Rights.

            (a)   A Coupled Stock Appreciation Right ("CSAR") will be related to
a particular Option and will be exercisable only when and to the extent the
related Option is exercisable.

            (b)   A CSAR may be granted to a Participant for no more than the
number of shares subject to the simultaneously or previously granted Option to
which it is coupled.

            (c)   A CSAR will entitle the Participant (or other person entitled
to exercise the Option pursuant to the Plan) to surrender to the Company the
unexercised portion of the Option to which the CSAR relates (to the extent then
exercisable pursuant to its terms) and to receive from the Company in exchange
therefor an amount determined by multiplying the difference obtained by
subtracting the Option exercise price from the Fair Market Value of a share of
Stock on the date of exercise of the CSAR by the number of shares of Stock with
respect to which the CSAR will have been exercised, subject to any limitations
the Committee may impose.

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      7.3   Independent Stock Appreciation Rights.

            (a)   An Independent Stock Appreciation Right ("ISAR") will be
unrelated to any Option and will have a term set by the Committee. An ISAR will
be exercisable in such installments as the Committee may determine. An ISAR will
cover such number of shares of Stock as the Committee may determine. The
exercise price per share of Stock subject to each ISAR will be set by the
Committee; provided, however, that the Committee, in its sole and absolute
discretion, may provide that the ISAR may be exercised subsequent to a
termination of employment or service, as applicable, or following a Change in
Control of the Company, or because of the Participant's retirement, death or
disability, or otherwise.

            (b)   An ISAR will entitle the Participant (or other person entitled
to exercise the ISAR pursuant to the Plan) to exercise all or a specified
portion of the ISAR (to the extent then exercisable pursuant to its terms) and
to receive from the Company an amount determined by multiplying the difference
obtained by subtracting the exercise price per share of the ISAR from the Fair
Market Value of a share of Stock on the date of exercise of the ISAR by the
number of shares of Stock with respect to which the ISAR will have been
exercised, subject to any limitations the Committee may impose.

      7.4   Payment and Limitations on Exercise.

            (a)   Payment of the amounts determined under Sections 7.2(c) and
7.3(b) above will be in cash, in Stock (based on its Fair Market Value as of the
date the Stock Appreciation Right is exercised) or a combination of both, as
determined by the Committee.

            (b)   To the extent any payment under Section 7.2(c) or 7.3(b) is
effected in Stock it will be made subject to satisfaction of all provisions of
Article 5 above pertaining to Options.

                                    ARTICLE 8

                              OTHER TYPES OF AWARDS

      8.1   Performance Share Awards. Any Participant selected by the Committee
may be granted one or more Performance Share awards which will be denominated in
a number of shares of Stock and which may be linked to any one or more of the
Performance Criteria or other specific performance criteria determined
appropriate by the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee. In making such
determinations, the Committee will consider (among such other factors as it
deems relevant in light of the specific type of award) the contributions,
responsibilities and other compensation of the particular Participant.

      8.2   Performance Stock Units. Any Participant selected by the Committee
may be granted one or more Performance Stock Unit awards which will be
denominated in units of value including dollar value of shares of Stock and
which may be linked to any one or more of the Performance Criteria or other
specific performance criteria determined appropriate by the Committee, in each
case on a specified date or dates or over any period or periods determined by

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the Committee. In making such determinations, the Committee will consider (among
such other factors as it deems relevant in light of the specific type of award)
the contributions, responsibilities and other compensation of the particular
Participant.

      8.3   Dividend Equivalents.

            (a)   Any Participant selected by the Committee may be granted
Dividend Equivalents based on the dividends declared on the shares of Stock that
are subject to any Award, to be credited as of dividend payment dates, during
the period between the date the Award is granted and the date the Award is
exercised, vests or expires, as determined by the Committee. Such Dividend
Equivalents will be converted to cash or additional shares of Stock by such
formula and at such time and subject to such limitations as may be determined by
the Committee.

            (b)   Dividend Equivalents granted with respect to Options or SARs
that are intended to be Qualified Performance-Based Compensation will be
payable, with respect to pre-exercise periods, regardless of whether such Option
or SAR is subsequently exercised.

      8.4   Stock Payments. Any Participant selected by the Committee may
receive Stock Payments in the manner determined from time to time by the
Committee; provided, that unless otherwise determined by the Committee such
Stock Payments will be made in lieu of base salary, bonus, or other cash
compensation otherwise payable to such Participant. The number of shares will be
determined by the Committee and may be based upon the Performance Criteria or
other specific performance criteria determined appropriate by the Committee,
determined on the date such Stock Payment is made or on any date thereafter.

      8.5   Deferred Stock. Any Participant selected by the Committee may be
granted an award of Deferred Stock in the manner determined from time to time by
the Committee. The number of shares of Deferred Stock will be determined by the
Committee and may be linked to the Performance Criteria or other specific
performance criteria determined to be appropriate by the Committee, in each case
on a specified date or dates or over any period or periods determined by the
Committee. Stock underlying a Deferred Stock award will not be issued until the
Deferred Stock award has vested, pursuant to a vesting schedule or performance
criteria set by the Committee. Unless otherwise provided by the Committee, a
Participant awarded Deferred Stock will have no rights as a Company stockholder
with respect to such Deferred Stock until such time as the Deferred Stock Award
has vested and the Stock underlying the Deferred Stock Award has been issued.

      8.6   Restricted Stock Units. The Committee is authorized to make Awards
of Restricted Stock Units to any Participant selected by the Committee in such
amounts and subject to such terms and conditions as determined by the Committee.
At the time of grant, the Committee will specify the date or dates on which the
Restricted Stock Units will become fully vested and nonforfeitable, and may
specify such conditions to vesting as it deems appropriate. At the time of
grant, the Committee will specify the maturity date applicable to each grant of
Restricted Stock Units which will be no earlier than the vesting date or dates
of the Award and may be determined at the election of the grantee. On the
maturity date, the Company will transfer to the Participant one unrestricted,
fully transferable share of Stock for each Restricted

                                       12
<PAGE>

Stock Unit scheduled to be paid out on such date and not previously forfeited.
The Committee will specify the purchase price, if any, to be paid by the grantee
to the Company for such shares of Stock.

      8.7   Other Stock-Based Awards. Any Participant selected by the Committee
may be granted one or more Awards that provide Participants with shares of Stock
or the right to purchase shares of Stock or that have a value derived from the
value of, or an exercise or conversion privilege at a price related to, or that
are otherwise payable in shares of Stock and which may be linked to any one or
more of the Performance Criteria or other specific performance criteria
determined appropriate by the Committee, in each case on a specified date or
dates or over any period or periods determined by the Committee. In making such
determinations, the Committee will consider (among such other factors as it
deems relevant in light of the specific type of Award) the contributions,
responsibilities and other compensation of the particular Participant.

      8.8   Performance Bonus Awards. Any Participant selected by the Committee
may be granted one or more Performance-Based Awards in the form of a cash bonus
(a "PERFORMANCE BONUS AWARD") payable upon the attainment of Performance Goals
that are established by the Committee and relate to one or more of the
Performance Criteria, in each case on a specified date or dates or over any
period or periods determined by the Committee. Any such Performance Bonus Award
paid to a Covered Employee will be based upon objectively determinable bonus
formulas established in accordance with Article 9. The maximum amount of any
Performance Bonus Award payable to a Covered Employee with respect to any fiscal
year of the Company will not exceed $500,000.

      8.9   Term. Except as otherwise provided herein, the term of any Award of
Performance Shares, Performance Stock Units, Dividend Equivalents, Stock
Payments, Deferred Stock, Restricted Stock Units, Other Stock-Based Awards or
Performance Bonus Awards will be set by the Committee in its discretion.

      8.9   Exercise or Purchase Price. The Committee may establish the exercise
or purchase price, if any, of any Award of Performance Shares, Performance Stock
Units, Deferred Stock, Stock Payments, Restricted Stock Units or Other
Stock-Based Awards; provided, however, that such price will not be less than the
par value of a share of Stock on the date of grant, unless otherwise permitted
by applicable state law.

      8.10  Exercise Upon Termination of Employment or Service. An Award of
Performance Shares, Performance Stock Units, Dividend Equivalents, Deferred
Stock, Stock Payments, Restricted Stock Units and Other Stock-Based Awards will
only be exercisable or payable while the Participant is an Employee, Consultant
or a member of the Board, as applicable; provided, however, that the Committee
in its sole and absolute discretion may provide that an Award of Performance
Shares, Performance Stock Units, Dividend Equivalents, Stock Payments, Deferred
Stock, Restricted Stock Units or Other Stock-Based Awards may be exercised or
paid subsequent to a termination of employment or service, as applicable, or
following a Change in Control of the Company, or because of the Participant's
retirement, death or disability, or otherwise; provided, however, that any such
provision with respect to

                                       13
<PAGE>

Performance Shares or Performance Stock Units will be subject to the
requirements of Section 162(m) of the Code that apply to Qualified
Performance-Based Compensation.

      8.11  Form of Payment. Payments with respect to any Awards granted under
this Article 8 will be made in cash, in Stock or a combination of both, as
determined by the Committee.

      8.12  Award Agreement. All Awards under this Article 8 will be subject to
such additional terms and conditions as determined by the Committee and will be
evidenced by a written Award Agreement.

                                    ARTICLE 9

                            PERFORMANCE-BASED AWARDS

      9.1   Purpose. The purpose of this Article 9 is to provide the Committee
the ability to qualify Awards other than Options and SARs and that are granted
pursuant to Articles 6 and 8 as Qualified Performance-Based Compensation. If the
Committee, in its discretion, decides to grant a Performance-Based Award to a
Covered Employee, the provisions of this Article 9 will control over any
contrary provision contained in Articles 6 or 8; provided, however, that the
Committee may in its discretion grant Awards to Covered Employees that are based
on Performance Criteria or Performance Goals but that do not satisfy the
requirements of this Article 9.

      9.2   Applicability. This Article 9 will apply only to those Covered
Employees selected by the Committee to receive Performance-Based Awards. The
designation of a Covered Employee as a Participant for a Performance Period will
not in any manner entitle the Participant to receive an Award for the period.
Moreover, designation of a Covered Employee as a Participant for a particular
Performance Period will not require designation of such Covered Employee as a
Participant in any subsequent Performance Period and designation of one Covered
Employee as a Participant will not require designation of any other Covered
Employees as a Participant in such period or in any other period.

      9.3   Procedures with Respect to Performance-Based Awards. To the extent
necessary to comply with the Qualified Performance-Based Compensation
requirements of Section 162(m)(4)(C) of the Code, with respect to any Award
granted under Articles 6 and 8 which may be granted to one or more Covered
Employees, no later than ninety (90) days following the commencement of any
fiscal year in question or any other designated fiscal period or period of
service (or such other time as may be required or permitted by Section 162(m) of
the Code), the Committee will, in writing, (a) designate one or more Covered
Employees, (b) select the Performance Criteria applicable to the Performance
Period, (c) establish the Performance Goals, and amounts of such Awards, as
applicable, which may be earned for such Performance Period, and (d) specify the
relationship between Performance Criteria and the Performance Goals and the
amounts of such Awards, as applicable, to be earned by each Covered Employee for
such Performance Period. Following the completion of each Performance Period,
the Committee will certify in writing whether the applicable Performance Goals
have been achieved for such Performance Period. In determining the amount earned
by a Covered Employee, the Committee

                                       14
<PAGE>

will have the right to reduce or eliminate (but not to increase) the amount
payable at a given level of performance to take into account additional factors
that the Committee may deem relevant to the assessment of individual or
corporate performance for the Performance Period.

      9.4   Payment of Performance-Based Awards. Unless otherwise provided in
the applicable Award Agreement, a Participant must be employed by the Company or
a Subsidiary on the day a Performance-Based Award for such Performance Period is
paid to the Participant. Furthermore, a Participant will be eligible to receive
payment pursuant to a Performance-Based Award for a Performance Period only if
the Performance Goals for such period are achieved.

      9.5   Additional Limitations. Notwithstanding any other provision of the
Plan, any Award which is granted to a Covered Employee and is intended to
constitute Qualified Performance-Based Compensation will be subject to any
additional limitations set forth in Section 162(m) of the Code (including any
amendment to Section 162(m) of the Code) or any regulations or rulings issued
thereunder that are requirements for qualification as qualified
performance-based compensation as described in Section 162(m)(4)(C) of the Code,
and the Plan will be deemed amended to the extent necessary to conform to such
requirements.

                                   ARTICLE 10

                         PROVISIONS APPLICABLE TO AWARDS

      10.1  Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan
may, in the discretion of the Committee, be granted either alone, in addition
to, or in tandem with, any other Award granted pursuant to the Plan. Awards
granted in addition to or in tandem with other Awards may be granted either at
the same time as or at a different time from the grant of such other Awards.

      10.2  Award Agreement. Awards under the Plan will be evidenced by Award
Agreements that set forth the terms, conditions and limitations for each Award
which may include the term of an Award, the provisions applicable in the event
the Participant's employment or service terminates, and the Company's authority
to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an
Award.

      10.3  Limits on Transfer. No right or interest of a Participant in any
Award may be pledged, encumbered, or hypothecated to or in favor of any party
other than the Company or a Subsidiary, or will be subject to any lien,
obligation, or liability of such Participant to any other party other than the
Company or a Subsidiary. Except as otherwise provided by the Committee, no Award
will be assigned, transferred, or otherwise disposed of by a Participant other
than by will or the laws of descent and distribution. The Committee by express
provision in the Award or an amendment thereto may permit an Award (other than
an Incentive Stock Option) to be transferred to, exercised by and paid to
certain persons or entities related to the Participant, including but not
limited to members of the Participant's family, charitable institutions, or
trusts or other entities whose beneficiaries or beneficial owners are members of
the Participant's family and/or charitable institutions, or to such other
persons or entities as may be expressly approved by the Committee, pursuant to
such conditions and procedures as the Committee may establish.

                                       15
<PAGE>

Any permitted transfer will be subject to the condition that the Committee
receive evidence satisfactory to it that the transfer is being made for estate
and/or tax planning purposes (or to a "blind trust" in connection with the
Participant's termination of employment or service with the Company or a
Subsidiary to assume a position with a governmental, charitable, educational or
similar non-profit institution) and on a basis consistent with the Company's
lawful issue of securities.

      10.4  Beneficiaries. Notwithstanding Section 10.3, a Participant may, in
the manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant's death. A beneficiary, legal guardian, legal
representative, or other person claiming any rights pursuant to the Plan is
subject to all terms and conditions of the Plan and any Award Agreement
applicable to the Participant, except to the extent the Plan and Award Agreement
otherwise provide, and to any additional restrictions deemed necessary or
appropriate by the Committee. If the Participant is married and resides in a
community property state, a designation of a person other than the Participant's
spouse as his or her beneficiary with respect to more than 50% of the
Participant's interest in the Award will not be effective without the prior
written consent of the Participant's spouse. If no beneficiary has been
designated or survives the Participant, payment will be made to the person
entitled thereto pursuant to the Participant's will or the laws of descent and
distribution. Subject to the foregoing, a beneficiary designation may be changed
or revoked by a Participant at any time provided the change or revocation is
filed with the Committee.

      10.5  Stock Certificates; Book Entry Procedures.

            (a)   Notwithstanding anything herein to the contrary, the Company
will not be required to issue or deliver any certificates evidencing shares of
Stock pursuant to the exercise of any Award, unless and until the Board has
determined, with advice of counsel, that the issuance and delivery of such
certificates is in compliance with all applicable laws, regulations of
governmental authorities and, if applicable, the requirements of any exchange on
which the shares of Stock are listed or traded. All Stock certificates delivered
pursuant to the Plan are subject to any stop-transfer orders and other
restrictions as the Committee deems necessary or advisable to comply with
federal, state, or foreign jurisdiction, securities or other laws, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Stock is listed, quoted, or traded. The Committee
may place legends on any Stock certificate to reference restrictions applicable
to the Stock. In addition to the terms and conditions provided herein, the Board
may require that a Participant make such reasonable covenants, agreements, and
representations as the Board, in its discretion, deems advisable in order to
comply with any such laws, regulations, or requirements. The Committee will have
the right to require any Participant to comply with any timing or other
restrictions with respect to the settlement or exercise of any Award, including
a window-period limitation, as may be imposed in the discretion of the
Committee.

            (b)   Notwithstanding any other provision of the Plan, unless
otherwise determined by the Committee or required by any applicable law, rule or
regulation, the Company will not deliver to any Participant certificates
evidencing shares of Stock issued in connection with any Award and instead such
shares of Stock will be recorded in the books of the Company (or, as applicable,
its transfer agent or stock plan administrator).

                                       16
<PAGE>

                                   ARTICLE 11

                          CHANGES IN CAPITAL STRUCTURE

      11.1  Adjustments.

            (a)   In the event of any stock dividend, stock split, combination
or exchange of shares, merger, consolidation, spin-off, recapitalization or
other distribution (other than normal cash dividends) of Company assets to
stockholders, or any other change affecting the shares of Stock or the share
price of the Stock, the Committee will make such proportionate adjustments, if
any, as the Committee in its discretion may deem appropriate to reflect such
change with respect to (i) the aggregate number and type of shares that may be
issued under the Plan (including, but not limited to, adjustments of the
limitations in Sections 3.1 and 3.3); (ii) the terms and conditions of any
outstanding Awards (including, without limitation, any applicable performance
targets or criteria with respect thereto); and (iii) the grant or exercise price
per share for any outstanding Awards under the Plan. Any adjustment affecting an
Award intended as Qualified Performance-Based Compensation must be made
consistent with the requirements of Section 162(m) of the Code.

            (b)   In the event of any transaction or event described in Section
11.1(a) or any unusual or nonrecurring transactions or events affecting the
Company, any affiliate of the Company, or the financial statements of the
Company or any affiliate (including without limitation any Change in Control),
or of changes in applicable laws, regulations or accounting principles, the
Committee, in its sole discretion and on such terms and conditions as it deems
appropriate, either by the terms of the Award or by action taken prior to the
occurrence of such transaction or event and either automatically or upon the
Participant's request, is hereby authorized to take any one or more of the
following actions whenever the Committee determines that such action is
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or with respect
to any Award under the Plan, to facilitate such transactions or events or to
give effect to such changes in laws, regulations or principles:

                  (i)   To provide for either (A) termination of any such Award
in exchange for an amount of cash and/or other property, if any, equal to the
amount that would have been attained upon the exercise of such Award or
realization of the Participant's rights (and, for the avoidance of doubt, if as
of the date of the occurrence of the transaction or event described in this
Section 11.1(b), the Committee determines in good faith that no amount would
have been attained upon the exercise of such Award or realization of the
Participant's rights, then such Award may be terminated by the Company without
payment) or (B) the replacement of such Award with other rights or property
selected by the Committee in its sole discretion;

                  (ii)  To provide that such Award be assumed by the successor
or survivor corporation, or a parent or subsidiary thereof, or will be
substituted for by similar options, rights or awards covering the stock of the
successor or survivor corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kind of shares and prices; and

                                       17
<PAGE>

                  (iii) To make adjustments in the number and type of shares of
Stock (or other securities or property) subject to outstanding Awards, and in
the number and kind of outstanding Restricted Stock or Deferred Stock and/or in
the terms and conditions of (including the grant or exercise price), and the
criteria included in, outstanding options, rights and awards and options, rights
and awards which may be granted in the future.

      11.2  Acceleration Upon Change in Control. Notwithstanding Section 11.1,
if a Change in Control occurs and a Participant's Awards are not converted,
assumed, or replaced by a successor entity or its parent or Subsidiary, then
immediately prior to the Change in Control such Awards will become fully
exercisable and all forfeiture restrictions on such Awards will lapse. Upon, or
in anticipation of, a Change in Control, the Committee may cause any and all
Awards outstanding under this Plan to terminate at a specific time in the
future, including but not limited to the date of such Change in Control, and
will give each Participant the right to exercise such Awards during a period of
time as the Committee, in its sole and absolute discretion, shall determine. The
Committee will have sole discretion to determine whether an Award has been
converted, assumed or replaced by the surviving or successor entity or its
parent or Subsidiary in connection with a Change in Control.

      11.3  Outstanding Awards - Certain Mergers. Subject to any required action
by the stockholders of the Company, in the event that the Company is the
surviving corporation in any merger or consolidation (except a merger or
consolidation as a result of which the holders of shares of Stock receive
securities of another corporation), each Award outstanding on the date of such
merger or consolidation will pertain to and apply to the securities that a
holder of the number of shares of Stock subject to such Award would have
received in such merger or consolidation.

      11.4  Outstanding Awards - Other Changes. In the event of any other change
in the capitalization of the Company or corporate change other than those
specifically referred to in this Article 11, the Committee may, in its absolute
discretion, make such adjustments in the number and kind of shares or other
securities subject to Awards outstanding on the date on which such change occurs
and in the per share grant or exercise price of each Award as the Committee may
consider appropriate to prevent dilution or enlargement of rights.

      11.5  No Other Rights. Except as expressly provided in the Plan, no
Participant will have any rights by reason of any subdivision or consolidation
of shares of stock of any class, the payment of any dividend, any increase or
decrease in the number of shares of stock of any class or any dissolution,
liquidation, merger, or consolidation of the Company or any other corporation.
Except as expressly provided in the Plan or pursuant to action of the Committee
under the Plan, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, will affect, and no
adjustment by reason thereof will be made with respect to, the number of shares
of Stock subject to an Award or the grant or exercise price of any Award.

                                       18
<PAGE>

                                   ARTICLE 12

                                 ADMINISTRATION

      12.1  Committee. Unless and until the Board delegates administration of
the Plan to a Committee as set forth below, the Plan will be administered by the
full Board, and for such purposes the term "Committee" as used in this Plan will
be deemed to refer to the Board. The Board may delegate administration of the
Plan to a Committee or Committees of one or more members of the Board, and the
term "Committee" will apply to any person or persons to whom such authority has
been delegated. If administration is delegated to a Committee, the Committee
will have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board will thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. Notwithstanding the foregoing, however, from and after the
Public Trading Date, a Committee of the Board will administer the Plan and the
Committee will consist solely of two or more members of the Board each of whom
is both an "outside director," within the meaning of Section 162(m) of the Code,
and a Non-Employee Director. Notwithstanding the foregoing, (a) the full Board,
acting by a majority of its members in office, will conduct the general
administration of the Plan with respect to all Awards granted to Independent
Directors and for purposes of such Awards the term "Committee" as used in this
Plan will be deemed to refer to the Board and (b) the Committee may delegate its
authority under this Plan to the extent permitted by Section 12.5. Appointment
of Committee members will be effective upon acceptance of appointment. The Board
may abolish the Committee at any time and re-vest in the Board the
administration of the Plan. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee may only be
filled by the Board.

      12.2  Action by the Committee. A majority of the Committee will constitute
a quorum. The acts of a majority of the members present at any meeting at which
a quorum is present, and acts approved in writing by a majority of the Committee
in lieu of a meeting, will be deemed the acts of the Committee. Each member of
the Committee is entitled to, in good faith, rely or act upon any report or
other information furnished to that member by any officer or other employee of
the Company or any Subsidiary, the Company's independent certified public
accountants, or any executive compensation consultant or other professional
retained by the Company to assist in the administration of the Plan.

      12.3  Authority of Committee. Subject to any specific designation in the
Plan, the Committee has the exclusive power, authority and discretion to:

            (a)   Designate Participants to receive Awards;

            (b)   Determine the type or types of Awards to be granted to each
Participant;

            (c)   Determine the number of Awards to be granted and the number of
shares of Stock to which an Award will relate;

                                       19
<PAGE>

            (d)   Determine the terms and conditions of any Award granted
pursuant to the Plan, including, but not limited to, the exercise price, grant
price, or purchase price, any reload provision, any restrictions or limitations
on the Award, any schedule for lapse of forfeiture restrictions or restrictions
on the exercisability of an Award, and accelerations or waivers thereof, any
provisions related to non-competition and recapture of gain on an Award, based
in each case on such considerations as the Committee in its sole discretion
determines; provided, however, that the Committee will not have the authority to
accelerate the vesting or waive the forfeiture of any Performance-Based Awards;

            (e)   Determine whether, to what extent, and pursuant to what
circumstances an Award may be settled in, or the exercise price of an Award may
be paid in, cash, Stock, other Awards, or other property, or an Award may be
canceled, forfeited, or surrendered;

            (f)   Prescribe the form of each Award Agreement, which need not be
identical for each Participant;

            (g)   Decide all other matters that must be determined in connection
with an Award;

            (h)   Establish, adopt, or revise any rules and regulations as it
may deem necessary or advisable to administer the Plan;

            (i)   Interpret the terms of, and any matter arising pursuant to,
the Plan or any Award Agreement; and

            (j)   Make all other decisions and determinations that may be
required pursuant to the Plan or as the Committee deems necessary or advisable
to administer the Plan.

      12.4  Decisions Binding. The Committee's interpretation of the Plan, any
Awards granted pursuant to the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

      12.5  Delegation of Authority. To the extent permitted by applicable law,
the Committee may from time to time delegate to a committee of one or more
members of the Board or one or more officers of the Company the authority to
grant or amend Awards to Participants other than (a) senior executives of the
Company who are subject to Section 16 of the Exchange Act, (b) Covered
Employees, or (c) officers of the Company (or members of the Board) to whom
authority to grant or amend Awards has been delegated under this Plan. Any
delegation under this Plan will be subject to the restrictions and limits that
the Committee specifies at the time of such delegation, and the Committee may at
any time rescind the authority so delegated or appoint a new delegatee. At all
times, the delegatee appointed under this Section 12.5 will serve in such
capacity at the pleasure of the Committee.

                                   ARTICLE 13

                          EFFECTIVE AND EXPIRATION DATE

      13.1  Effective Date. The Plan is effective as of the Public Trading Date
(the "EFFECTIVE

                                       20
<PAGE>

DATE"); provided, that the Plan has been approved by the Company's stockholders
prior to such date.

      13.2  Expiration Date. The Plan will expire on, and no Award may be
granted pursuant to the Plan after, the earlier of the tenth anniversary of (i)
the date this Plan is approved by the Company's stockholders or (ii) the date
this Plan is approved by the Board (the "EXPIRATION DATE"). Any Awards that are
outstanding on the Expiration Date will remain in force according to the terms
of the Plan and the applicable Award Agreement.

                                   ARTICLE 14

                    AMENDMENT, MODIFICATION, AND TERMINATION

      14.1  Amendment, Modification, And Termination. With the approval of the
Board, at any time and from time to time, the Committee may terminate, amend or
modify the Plan; provided, however, that (a) to the extent necessary and
desirable to comply with any applicable law, regulation, or stock exchange rule,
the Company will obtain stockholder approval of any Plan amendment in such a
manner and to such a degree as required, and (b) stockholder approval is
required for any amendment to the Plan that (i) increases the number of shares
available under the Plan (other than any adjustment as provided by Article 11),
or (ii) permits the Committee to extend the exercise period for an Option beyond
ten years from the date of grant. Notwithstanding any provision in this Plan to
the contrary, absent approval of the stockholders of the Company, no Option may
be amended to reduce the per share exercise price of the shares subject to such
Option below the per share exercise price as of the date the Option is granted
and, except as permitted by Article 11, no Option may be granted in exchange
for, or in connection with, the cancellation or surrender of an Option having a
higher per share exercise price.

      14.2  Awards Previously Granted. No termination, amendment, or
modification of the Plan will adversely affect in any material way any Award
previously granted pursuant to the Plan without the prior written consent of the
Participant.

                                   ARTICLE 15

                               GENERAL PROVISIONS

      15.1  No Rights to Awards. No Participant, employee, or other person will
have any claim to be granted any Award pursuant to the Plan, and neither the
Company nor the Committee is obligated to treat Participants, employees, and
other persons uniformly.

      15.2  No Stockholders Rights. Except as otherwise provided herein, a
Participant will have none of the rights of a stockholder with respect to shares
of Stock covered by any Award until the Participant becomes the record owner of
such shares of Stock.

      15.3  Withholding. The Company or any Subsidiary will have the authority
and the right to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy federal, state, local and foreign taxes
(including the Participant's FICA obligation) required by law to be withheld
with respect to any taxable event concerning a Participant arising as a result
of this Plan. The Committee may in its discretion and in

                                       21
<PAGE>

satisfaction of the foregoing requirement allow a Participant to elect to have
the Company withhold shares of Stock otherwise issuable under an Award (or allow
the return of shares of Stock) having a Fair Market Value equal to the sums
required to be withheld. Notwithstanding any other provision of the Plan, the
number of shares of Stock which may be withheld with respect to the issuance,
vesting, exercise or payment of any Award (or which may be repurchased from the
Participant of such Award within six months (or such other period as may be
determined by the Committee) after such shares of Stock were acquired by the
Participant from the Company) in order to satisfy the Participant's federal,
state, local and foreign income and payroll tax liabilities with respect to the
issuance, vesting, exercise or payment of the Award will be limited to the
number of shares which have a Fair Market Value on the date of withholding or
repurchase equal to the aggregate amount of such liabilities based on the
minimum statutory withholding rates for federal, state, local and foreign income
tax and payroll tax purposes that are applicable to such supplemental taxable
income.

      15.4  No Right to Employment or Services. Nothing in the Plan or any Award
Agreement will interfere with or limit in any way the right of the Company or
any Subsidiary to terminate any Participant's employment or services at any
time, nor confer upon any Participant any right to continue in the employ or
service of the Company or any Subsidiary.

      15.5  Unfunded Status of Awards. The Plan is intended to be an "unfunded"
plan for incentive compensation. With respect to any payments not yet made to a
Participant pursuant to an Award, nothing contained in the Plan or any Award
Agreement will give the Participant any rights that are greater than those of a
general creditor of the Company or any Subsidiary.

      15.6  Indemnification. To the extent allowable pursuant to applicable law,
each member of the Committee or of the Board will be indemnified and held
harmless by the Company from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by such member in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action or failure
to act pursuant to the Plan and against and from any and all amounts paid by him
or her in satisfaction of judgment in such action, suit, or proceeding against
him or her; provided he or she gives the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and
defend it on his or her own behalf. The foregoing right of indemnification will
not be exclusive of any other rights of indemnification to which such persons
may be entitled pursuant to the Company's Certificate of Incorporation or
Bylaws, as a matter of law, or otherwise, or any power that the Company may have
to indemnify them or hold them harmless.

      15.7  Relationship to other Benefits. No payment pursuant to the Plan will
be taken into account in determining any benefits pursuant to any pension,
retirement, savings, profit sharing, group insurance, welfare or other benefit
plan of the Company or any Subsidiary except to the extent otherwise expressly
provided in writing in such other plan or an agreement thereunder.

      15.8  Expenses. The expenses of administering the Plan will be borne by
the Company and its Subsidiaries.

                                       22
<PAGE>

      15.9  Titles and Headings. The titles and headings of the Sections in the
Plan are for convenience of reference only and, in the event of any conflict,
the text of the Plan, rather than such titles or headings, will control.

      15.10 Fractional Shares. No fractional shares of Stock will be issued and
the Committee will determine, in its discretion, whether cash will be given in
lieu of fractional shares or whether such fractional shares will be eliminated
by rounding up or down as appropriate.

      15.11 Limitations Applicable to Section 16 Persons. Notwithstanding any
other provision of the Plan, the Plan, and any Award granted or awarded to any
Participant who is then subject to Section 16 of the Exchange Act, will be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of
the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, the Plan and Awards granted or
awarded under this Plan will be deemed amended to the extent necessary to
conform to such applicable exemptive rule.

      15.12 Government and Other Regulations. The obligation of the Company to
make payment of awards in Stock or otherwise will be subject to all applicable
laws, rules, and regulations, and to such approvals by government agencies as
may be required. The Company will be under no obligation to register pursuant to
the Securities Act of 1933, as amended, any of the shares of Stock paid pursuant
to the Plan. If the shares paid pursuant to the Plan may in certain
circumstances be exempt from registration pursuant to the Securities Act of
1933, as amended, the Company may restrict the transfer of such shares in such
manner as it deems advisable to ensure the availability of any such exemption.

      15.13 Governing Law. The Plan and all Award Agreements will be construed
in accordance with and governed by the laws of the State of Delaware.

                                       23
<PAGE>

                                    * * * * *

      I certify that the foregoing Plan was duly adopted by the board of
directors of WebSideStory, Inc. on July 14, 2004.

                                    * * * * *

      I certify that the foregoing Plan was approved by the stockholders of
WebSideStory, Inc. on July 21, 2004.

      Executed on this 21st day of July, 2004.

                                         /s/ Michael Christian
                                         ---------------------------------------
                                         Michael Christian, Corporate Secretary

                                       24<PAGE>

                                                                   EXHIBIT 10.16

               AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

      This Amended and Restated Executive Employment Agreement (this
"AGREEMENT") is entered into effective as of July 21, 2004 (the "EFFECTIVE
DATE") by and between WebSideStory, Inc. (the "COMPANY") and Jeff Lunsford (the
"EXECUTIVE").

      This Agreement amends and restates that certain Executive Employment
Agreement, dated as of April 1, 2003, between Executive and Company (the
"ORIGINAL AGREEMENT").

      All share numbers set forth in this Agreement give effect to the
3.5-for-1 reverse stock split to be implemented by the Company in connection
with its initial public offering ("IPO").

      1. Employment. Company hereby agrees to continue to employ Executive, and
Executive hereby accepts such continued employment, upon the terms and
conditions set forth herein.

      2. Duties.

            2.1 Position. Executive is employed as President, Chief Executive
Officer and Chairman of Company's Board of Directors (the "BOARD") and shall
have the duties and responsibilities assigned by the Board both upon initial
hire and as may be reasonably assigned from time to time. Executive shall
perform faithfully and diligently all duties assigned to him.

            2.2 Best Efforts/Full-time. Executive will expend his best efforts
on behalf of Company, and will abide by all policies and decisions made by
Company, as well as all applicable federal, state and local laws, regulations or
ordinances. Executive will act in the best interest of Company at all times.
Executive shall devote his full business time and efforts to the performance of
his assigned duties for Company, unless Executive notifies the Board in advance
of his intent to engage in other paid work and receives the Board's express
written consent to do so. Notwithstanding the foregoing, Executive may serve on
up to two (2) boards of for-profit companies and one (1) board of a
not-for-profit entity provided that Executive's service thereon does not impair
Executive's ability to perform his duties under this Agreement.

      3. At-Will Employment Relationship. Executive's employment with Company is
at-will and not for any specified period and may be terminated at any time, with
or without cause or advance notice, by either Executive or Company. In addition,
subject to Executive's right to terminate his employment for Good Reason (as
defined below) as set forth in Section 7.1, Company reserves the right to modify
Executive's position or duties to meet business needs and to use discretion in
deciding on appropriate discipline. No representative of Company, other than an
authorized representative of the Board, has the authority to alter the at-will
employment relationship. Any change to the at-will employment relationship must
be by specific, written agreement signed by Executive and an authorized
representative of the Board. Nothing in this Agreement is intended to or should
be construed to contradict, modify or alter this at-will relationship.

      4. Compensation.

            4.1 Base Salary. As compensation for Executive's performance of his
duties hereunder, Company shall pay to Executive a base salary of $310,500 per
year, less applicable withholdings and deductions, in accordance with Company's
normal payroll procedures (the "BASE SALARY").

            4.2 Performance Bonus. In addition to the Base Salary and
conditioned upon Executive's continued employment with Company, Executive will
be eligible to earn an annual

<PAGE>

"PERFORMANCE BONUS" of up to $175,000 as determined by the Compensation
Committee of the Board (the "COMPENSATION COMMITTEE") and based upon Executive's
achievement of goals and objectives to be mutually agreed upon by Executive and
the Compensation Committee. The Performance Bonus will be determined by the
Compensation Committee and paid on an annual basis during the first quarter of
each fiscal year.

            4.3 Equity Compensation. As further compensation for Executive's
performance of his duties hereunder, Company agrees as follows:

                  (a) Company has granted to Executive a right to purchase up to
48 shares of Series D Convertible Redeemable Participating Preferred Stock (the
"WARRANT SHARES") of Company, at an exercise price of $0.001 per share, pursuant
to the terms and conditions of that certain Warrant to Purchase Series D
Preferred Stock dated as of April 1, 2003 entered into between the parties (the
"WARRANT").

                  (b) Executive has purchased 571,248 shares (the "COMMON
SHARES") of Company's common stock (the "COMMON STOCK") of Company, at a
purchase price of $0.001 per share (the "PURCHASE PRICE"), subject to the terms
and conditions of that certain Common Stock Purchase Agreement dated as of April
1, 2003 entered into between the parties (the "PURCHASE AGREEMENT").

                  (c) Effective as of the date on which the registration
statement on Form S-1 filed in connection with Company's IPO is declared
effective, provided that such date occurs on or before December 31, 2004,
Company will grant to Executive a stock option to purchase 285,714 shares of
Company Common Stock, at a per share exercise price equal to the initial price
to the public of a share of Common Stock (the "IPO OPTION"). Such options shall
vest in forty-eight (48) equal monthly installments on the first day of each
calendar month commencing on April 1, 2006, subject to Executive's continued
employment by or service to Company on each such date. The IPO Option will be an
incentive stock option to the extent permissible under the Internal Revenue Code
of 1986, as amended. The IPO Option will be granted pursuant to, and subject to
the terms and conditions of, Company's incentive award plan.

                  (d) Upon a Change of Control (as defined below), (i)
Executive's right to purchase Warrant Shares shall accelerate with respect to
one hundred percent (100%) of the Warrant Shares unvested on the effective date
of such Change of Control, and (ii) Company's right to repurchase the Common
Shares issued pursuant to the Purchase Agreement shall lapse with respect to
seventy-five percent (75%) of such Common Shares unvested on the effective date
of such Change of Control. In addition, in the event of a Change of Control on
or after April 1, 2006, the vesting of the IPO Option shall accelerate with
respect to seventy-five percent (75%) of the unvested portion thereof. For
purposes hereof, a "CHANGE OF CONTROL" is defined as (A) a merger or
consolidation of Company with or into another corporation or other entity (with
respect to which less than a majority of the outstanding voting power of the
surviving or consolidated corporation is held by persons who are shareholders of
the Corporation immediately prior to such event); (B) the sale or transfer of
all or substantially all of the properties and assets of Company; (C) any
purchase by any party (or group of affiliated parties) of shares of capital
stock of Company (either through a negotiated stock purchase or a tender for
such shares), the effect of which is that such party (or group of affiliated
parties) that did not beneficially own a majority of the voting power of the
outstanding shares of capital stock of Company immediately prior to such
purchase beneficially owns at least a majority of such voting power immediately
after such purchase; (D) the redemption or repurchase of shares representing a
majority of the voting power of the outstanding shares of capital stock of
Company; or (E) of any other change of control of fifty percent (50%) or more of
the outstanding voting power of Company in a single transaction or series of
related transactions, but

                                      -2-
<PAGE>

for purposes of this subsection (E) excluding an underwritten public offering by
Company of shares of Common Stock or other securities.

            4.4 Change of Control Bonus. Subject to Executive's continued
employment with Company, Executive shall be entitled to receive a "CHANGE OF
CONTROL BONUS" equal to $500,000.00, less applicable withholdings and
deductions, payable, in the form of consideration to be received in such Change
of Control, within five (5) business days of the effective date of any Change of
Control resulting in net proceeds (whether cash, stock or other property) to
Company's stockholders having an aggregate Fair Market Value (as defined below)
sufficient to cover all then existing liabilities and obligations of Company
including, without limitation, the payment of this Change of Control Bonus.
Notwithstanding the foregoing, the amount of the Change of Control Bonus shall
be reduced on a dollar-for-dollar basis by the aggregate Fair Market Value of
the Warrant Shares and the Common Shares issued pursuant to the Purchase
Agreement (or the consideration to be received in exchange therefor) on the
effective date of such Change of Control; provided, however, that the Change of
Control Bonus shall cease to be payable at such time as Executive shall have
received aggregate gross proceeds from the sale of the Warrant Shares, the
Common Shares issued pursuant to the Purchase Agreement or any other shares of
the Company's capital stock which may be issued or awarded to Executive by the
Company (whether pursuant to the exercise of stock options or otherwise) equals
$500,000. For purposes of this Agreement, "FAIR MARKET VALUE" means the value of
a share of stock or other property as stated in the operative merger or other
change of control transaction document, or if no such document exists or any
such document is silent as to such, then as reasonably determined in good faith
by the Board.

            4.5 Performance and Salary Review. The Compensation Committee will
periodically review Executive's performance on no less than an annual basis.
Executive's salary or other compensation, if any, may be increased by the
Compensation Committee in its sole and absolute discretion but may not be
decreased without Executive's written consent. Any changes to Executive's salary
or other compensation will be reflected in an amendment to this Agreement.

            4.6 Withholdings and Taxes. All payments made by Company under this
Agreement will be less all employment taxes, insurance payments and any other
applicable withholdings and deductions in accordance with state and federal law.

      5. Benefits.

            5.1 Benefits Generally. Executive shall have the right, on the same
basis as other employees of Company, to participate in and to receive the
benefits of Company's employee benefit plans and vacation, holiday and business
expense reimbursement policies, each as in effect from time to time.

            5.2 Customary Fringe Benefits. Executive will be eligible for all
customary and usual fringe benefits generally available to executives of Company
subject to the terms and conditions of Company's benefit plan documents. Company
reserves the right to change or eliminate the fringe benefits on a prospective,
company-wide basis, at any time.

            5.3 Relocation Expenses. Company agrees to reimburse Executive up to
a maximum of $30,000, for reasonable relocation expenses incurred in connection
with his move to San Diego, California. Reasonable relocation expenses include
costs incurred while searching for a new residence, moving and storage of
household goods, relocation travel and attorney's fees. To obtain reimbursement,
Executive agrees to furnish receipts documenting actual moving and relocation
expenses incurred. All payments made to Executive for relocation expenses will
be taxable as required by applicable law.

                                      -3-
<PAGE>

            5.4 Vacation. Executive shall be eligible to accrue at least three
(3) weeks of paid vacation per year. All other terms and conditions of
Executive's vacation will be governed by Company policy.

      6. Business Expenses. Executive will be reimbursed for all reasonable,
out-of-pocket business expenses incurred in the performance of his duties on
behalf of Company including, without limitation, reasonable expenses incurred by
Executive as he commutes from Atlanta, Georgia to San Diego, California prior to
Executive's relocation to California. To obtain reimbursement, expenses must be
submitted promptly with appropriate supporting documentation in accordance with
Company's policies.

      7. Termination of Executive's Employment. Upon the termination
(voluntarily or otherwise) of Executive's employment with Company, neither party
shall have any continuing obligations or liabilities with respect to
compensation, benefits, or severance except as set forth in this Section 7. In
the event of any termination (voluntarily or otherwise) of Executive's
employment, Executive shall be entitled to accrued and unpaid compensation and
benefits through the date of termination.

            7.1 Termination Without Cause or for Good Reason/Severance. Although
Executive's employment is at-will and either Executive or Company can terminate
the employment relationship at any time, with or without cause or advance
notice, in the event Company terminates Executive's employment without Cause (as
defined below) or Executive terminates his employment for Good Reason (as
defined below), Executive will receive the "SEVERANCE PACKAGE" described in
subsection 7.1(a) below, provided that he complies with all of the conditions
set forth in subsection 7.1(b) below:

                  (a) Severance Package. The Severance Package will consist of
the following:

                        (i) A "SEVERANCE PAYMENT" equal to (a) one (1) year of
Base Salary, less applicable taxes and withholdings, payable in twelve (12)
equal monthly installments; and (b) continuation of Executive's group health
benefits for a one (1)-year period following the date of termination, provided
Company's insurance carrier allows for such benefits continuation. In the event
Company's insurance carrier does not allow for such coverage continuation,
Company agrees to pay the premiums required to continue Executive's group health
care coverage for the 1-year period, under the applicable provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"), provided that
Executive elects to continue and remains eligible for these benefits under COBRA
and does not obtain health coverage through another employer during this period.

                        (ii) Effective on the date of termination, Executive's
right to purchase Warrant Shares shall accelerate with respect to fifty percent
(50%) of the Warrant Shares unvested on the date of termination (provided that
if such termination occurs within one hundred thirty-five (135) days prior to
the date Company enters into an agreement for a Change of Control, then
effective on the date Company enters into an agreement for a Change of Control,
Executive's right to purchase Warrant Shares shall accelerate with respect to
one hundred percent (100%) of the Warrant Shares). Further, Executive's rights
to exercise the Warrant with respect to vested Warrant Shares shall continue for
a period of one hundred forty (140) days following the date of Company's
termination of Executive's employment; provided that, except as set forth in the
previous sentence, vesting of Warrant Shares shall not continue during such
140-day period;

                        (iii) Effective on the date of termination, Company's
right to repurchase Common Shares issued pursuant to the Purchase Agreement
shall lapse with respect to fifty

                                      -4-
<PAGE>

percent (50%) of the Common Shares which are unvested on the date of
termination. Any remaining unvested Common Shares issued pursuant to the
Purchase Agreement with respect to which Company's repurchase right does not
lapse pursuant to the previous sentence shall remain outstanding subject to the
terms of the Purchase Agreement for a period of one hundred thirty-five (135)
days following the date of termination; provided that, except as set forth in
the next sentence, vesting of such Common Shares shall not continue during such
135-day period. If Company enters into an agreement for a Change of Control on
or before the end of such 135-day period, then effective on the date Company
enters into an agreement for a Change of Control, Company's rights to repurchase
the Common Shares issued pursuant to the Purchase Agreement shall lapse in full.
If Company does not enter into an agreement for a Change of Control on or before
the end of such 135-day period, Company may exercise its right to repurchase
such unvested Common Shares pursuant to the Purchase Agreement and the period
during which such repurchase right may be exercised pursuant to the Purchase
Agreement shall commence on the 136th day following Executive's termination. If
such termination occurs within twelve (12) months following a Change of Control,
then Company's rights to repurchase the Common Shares issued pursuant to the
Purchase Agreement shall lapse in full on the date of termination.

                        (iv) If such termination occurs prior to April 1, 2006
and within one hundred thirty-five (135) days prior to the date Company enters
into an agreement for a Change of Control or within twelve (12) months following
a Change of Control, the vesting of the IPO Option shall accelerate with respect
to fifty percent (50%) of the unvested portion thereof on (A) with respect to a
termination prior to the date Company enters into an agreement for a Change of
Control, the date Company enters into an agreement for a Change of Control, or
(B) with respect to a termination within twelve (12) months following a Change
of Control, the date of such termination; provided that if termination is for
Good Reason, such accelerated vesting will occur only if Good Reason for such
termination arises as a result of one of the events described in clause (ii) or
(iii) of Section 7.4(b) below.

                        (v) If such termination occurs within one hundred
thirty-five (135) days prior to the date Company enters into an agreement for a
Change of Control, then effective on the date Company enters into an agreement
for a Change of Control, Executive shall be entitled to receive the Change of
Control Bonus, subject to the limitations and reductions set forth in Section
4.4.

                  (b) Conditions Precedent to Severance Package. Company's
obligations to provide, and Executive's rights to receive, the Severance Package
are conditioned precedent upon: (i) Executive's compliance with all surviving
provisions of this Agreement as specified in subsection 13.10 below; (ii)
Executive's execution and delivery a full general, mutual release of all claims
in substantially the form attached hereto as Exhibit A; and (3) Executive's
agreement to act as a consultant for Company, without further compensation, for
thirty (30) days following the termination of the employment relationship, if
requested to do so by Company.

            7.2 Termination For Cause by Company/Voluntary Resignation By
Executive. In the event Company terminates Executive's employment for Cause or
Executive voluntarily resigns from his employment without Good Reason, (i)
Executive will only be entitled to receive accrued and unpaid compensation and
benefits through the date of termination and (ii) Company will be deemed to have
provided to Executive the notice, if any, required by the Purchase Agreement for
Company's exercise of its rights to repurchase all shares of Common Stock
subject to repurchase rights in favor of Company. Executive will be entitled to
receive no other compensation or benefits from Company including, without
limitation, the Severance Package described in subsection 7.1(a) above.

            7.3 Termination For Disability or Death. In the event that,
following Executive's relocation to California, Company terminates Executive's
employment for (i) Executive's failure to perform the essential functions of
Executive's position, with or without reasonable accommodation, due

                                      -5-
<PAGE>

to a mental or physical disability or (ii) Executive's death, Executive will be
entitled to receive accrued and unpaid compensation and benefits through the
date of termination. In addition, Executive's right to purchase Warrant Shares
shall accelerate with respect to twenty-five percent (25%) of the Warrant Shares
unvested on the date of termination, and Company's right to repurchase the
Common Shares issued pursuant to the Purchase Agreement shall lapse with respect
to twenty-five percent (25%) of the Common Shares which are unvested on the date
of termination. Further, Executive's rights (or his estate's rights as the case
may be) to exercise the Warrant with respect to vested Warrant Shares shall
continue for a period of one hundred forty (140) days following the date of the
termination of Executive's employment; provided that vesting of Warrant Shares
shall not continue during such 140-day period. Executive will be entitled to
receive no other compensation or benefits from Company including, without
limitation, the Severance Package described in subsection 7.1(a) above.

            7.4 Definitions.

                  (a) "CAUSE" is defined as: (i) acts or omissions constituting
gross negligence, recklessness or willful misconduct on the part of Executive
with respect to Executive's obligations or otherwise relating to the business of
Company; (ii) Executive's material breach of this Agreement or any other
agreement between Executive and Company; (iii) Executive's conviction or entry
of a plea of nolo contendere for fraud or embezzlement, or any felony or crime
of moral turpitude; or (iv) Executive's willful neglect of duties. In the case
of subparts (i), (ii) and (iv), unless the deficiency cannot reasonably be
cured, no Cause shall exist if Executive cures such deficiency within ten (10)
business days after his receipt of notice from Company. Executive shall have an
opportunity during any such 10-day period to appear before the Board, with his
counsel, and present such evidence as he may deem appropriate. Any final
decision that Cause exists, after notice and opportunity to present as described
above, if applicable, shall be made only by a majority of the Board.

                  (b) "GOOD REASON" shall be deemed to exist following the
occurrence of any of the following events: (i) a reduction in Executive's title
or position or an assignment to Executive of operational authority or duties
which are materially inconsistent with the usual and customary operational
authority and duties of a person in Executive's position in similarly-situated
companies, (ii) a reduction in Executive's Base Salary or Performance Bonus
target or any failure to pay any compensation or benefits earned by Executive,
provided that Good Reason shall not be deemed for such non-payment unless
Executive provides written notice to Company thereof and following a reasonable
cure period, or (iii) Company's requiring Executive to relocate to any place
outside a fifty (50) mile radius of Company's current headquarters.

      8. No Conflict of Interest. During Executive's employment with Company and
during any period Executive is receiving payments from Company pursuant to this
Agreement, Executive must not engage in any work, paid or unpaid, that creates
an actual conflict of interest with Company. Such work shall include, but is not
limited to, directly or indirectly competing with Company in any way, or acting
as an officer, director, employee, consultant, stockholder, volunteer, lender,
or agent of any business enterprise of the same nature as, or which is in direct
competition with, the business in which Company is now engaged or in which
Company becomes engaged during Executive's employment with Company. If the Board
believes such a conflict exists during Executive's employment with Company, the
Board may ask Executive to choose to discontinue the other work or resign
employment with Company. If the Board believes such a conflict exists during any
period in which Executive is receiving payments pursuant to this Agreement, the
Board may ask Executive to choose to discontinue the other work or forfeit the
remaining severance payments. In addition, Executive agrees not to refer any
client or potential client of Company to competitors of Company, without
obtaining Company's prior written consent, during Executive's employment with
Company and during any period in which Executive is receiving payments from
Company pursuant to this Agreement.

                                      -6-
<PAGE>

      9. Confidentiality and Proprietary Rights. Executive agrees to read, sign
and abide by Company's Employee Innovations and Proprietary Rights Assignment
Agreement, which is provided with this Agreement and incorporated herein by
reference (the "ASSIGNMENT AGREEMENT").

      10. Non-Solicitation; Non-Disparagement. Executive understands and agrees
that Company's employees and customers and any information regarding Company
employees and/or customers is confidential and constitutes trade secrets.
Accordingly, Executive agrees that during his employment and for a period of one
(1) year after the termination of his employment, Executive will not, either
directly or indirectly, separately or in association with others: (1) interfere
with, impair, disrupt or damage Company's relationship with any of its customers
or customer prospects by soliciting or encouraging others to solicit any of them
for the purpose of diverting or taking away business from Company; or (2)
interfere with, impair, disrupt or damage Company's business by soliciting,
encouraging or attempting to hire any of Company's employees or causing others
to solicit or encourage any of Company's employees to discontinue their
employment with Company. Executive further agrees that he will not, directly or
indirectly, engage during the one (1) year period after termination of his
employment, in any defamatory, disparaging or critical communication with any
other person or entity concerning the business, operations, services, marketing
strategies, pricing policies, management, business practices, officers,
directors, employees, attorneys, representatives, affiliates, agents affairs
and/or financial condition of Company, its subsidiaries or affiliates. Company
agrees that it will not, directly or indirectly, engage during the one (1) year
period after termination of Executive's employment in any defamatory,
disparaging or critical comments regarding Executive.

      11. Injunctive Relief. Executive acknowledges that his breach of the
covenants contained in Sections 8, 9 or 10 would cause irreparable injury to
Company and agrees that in the event of any such breach, Company shall be
entitled to seek temporary, preliminary and permanent injunctive relief without
the necessity of proving actual damages or posting any bond or other security.

      12. Agreement to Arbitrate.

            12.1 Scope of Arbitration. To the fullest extent permitted by law,
Executive and Company agree to arbitrate any controversy, claim or dispute
between them arising out of or in any way related to this Agreement, the
employment relationship between Company and Executive and any disputes upon
termination of employment, including but not limited to breach of contract,
tort, discrimination, harassment, wrongful termination, demotion, discipline,
failure to accommodate, family and medical leave, compensation or benefits
claims, constitutional claims; and any claims for violation of any local, state
or federal law, statute, regulation or ordinance or common law. For the purpose
of this agreement to arbitrate, references to "Company" include all parent,
subsidiary or related entities and their employees, supervisors, officers,
directors, agents, pension or benefit plans, pension or benefit plan sponsors,
fiduciaries, administrators, affiliates and all successors and assigns of any of
them, and this agreement shall apply to them to the extent Executive's claims
arise out of or relate to their actions on behalf of Company.

            12.2 Arbitration Procedure. Either party may exercise the right to
arbitrate by providing the other party with written notice of any and all claims
forming the basis of such right in sufficient detail to inform the other party
of the substance of such claims. In no event shall the request for arbitration
be made after the date when institution of legal or equitable proceedings based
on such claims would be barred by the applicable statute of limitations. The
arbitration will be conducted in San Diego, California by a single neutral
arbitrator and in accordance with the then current rules for resolution of
employment disputes of the American Arbitration Association. The parties are
entitled to representation by an attorney or other representative of their
choosing. The arbitrator shall have the power to enter any award that could be
entered by a judge of the trial court of the State of California, and only such
power,

                                      -7-
<PAGE>

and shall follow the law. The parties agree to abide by and perform any award
rendered by the arbitrator. The arbitrator shall issue the award in writing and
therein state the essential findings and conclusions on which the award is
based. Judgment on the award may be entered in any court having jurisdiction
thereof. Company shall bear the costs of the arbitration filing and hearing fees
and the cost of the arbitrator.

      13. General Provisions.

            13.1 Successors and Assigns. The rights and obligations of Company
under this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of Company. Except with respect to certain transfers for
estate planning purposes of Executives rights under the Warrant and the Purchase
Agreement, in each case set forth therein, Executive shall not be entitled to
assign any of Executive's rights or obligations under this Agreement.

            13.2 Waiver. Either party's failure to enforce any provision of this
Agreement shall not in any way be construed as a waiver of any such provision,
or prevent that party thereafter from enforcing each and every other provision
of this Agreement.

            13.3 Attorneys' Fees. Each side will bear its own attorneys' fees in
any dispute unless a statutory section at issue, if any, authorizes the award of
attorneys' fees to the prevailing party.

            13.4 Severability. In the event any provision of this Agreement is
found to be unenforceable by an arbitrator or court of competent jurisdiction,
such provision shall be deemed modified to the extent necessary to allow
enforceability of the provision as so limited, it being intended that the
parties shall receive the benefit contemplated herein to the fullest extent
permitted by law. If a deemed modification is not satisfactory in the judgment
of such arbitrator or court, the unenforceable provision shall be deemed
deleted, and the validity and enforceability of the remaining provisions shall
not be affected thereby.

            13.5 Interpretation; Construction. The headings set forth in this
Agreement are for convenience only and shall not be used in interpreting this
Agreement. This Agreement has been drafted by legal counsel representing
Company, but Executive has participated in the negotiation of its terms.
Furthermore, Executive acknowledges that he has had an opportunity to review and
revise the Agreement and have it reviewed by legal counsel, if desired, and,
therefore, the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement.

            13.6 Governing Law. This Agreement will be governed by and construed
in accordance with the laws of the United States and the State of California.
Each party consents to the jurisdiction and venue of the state or federal courts
in San Diego, California, if applicable, in any action, suit, or proceeding
arising out of or relating to this Agreement.

            13.7 No Representations; Independent Counsel. Executive acknowledges
that he is not relying, and has not relied, on any promise, representation or
statement made by or on behalf of Company or any agent thereof which is not set
forth in this Agreement. Each of the parties acknowledges and agrees that Latham
& Watkins LLP is counsel to Company and not to Executive and that Executive has
had reasonable opportunity to consult with separate counsel with respect to the
matters contained herein.

                                      -8-
<PAGE>

            13.8 Counterparts. This Agreement may be executed in any number of
counterparts, provided, however, that each of such counterparts when taken
together shall constitute one and the same agreement.

            13.9 Notices. Any notice required or permitted by this Agreement
shall be in writing and shall be delivered as follows with notice deemed given
as indicated: (a) by personal delivery when delivered personally; (b) by
overnight courier upon written verification of receipt; (c ) by telecopy or
facsimile transmission upon acknowledgment of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested,
upon verification of receipt. Notice shall be sent to the addresses set forth
below, or such other address as either party may specify in writing.

            13.10 Survival. Sections 8 ("No Conflict of Interest"), 9
("Confidentiality and Proprietary Rights"), 10 ("Non-Solicitation;
Non-Disparagement"), 11 ("Injunctive Relief"), 12 ("Agreement to Arbitrate"), 13
("General Provisions") and 14 ("Entire Agreement") of this Agreement shall
survive any termination of this Agreement and Executive's employment with
Company.

            14. Entire Agreement. This Agreement, the Assignment Agreement, the
Warrant and the Purchase Agreement constitutes the entire agreement between the
parties relating to this subject matter and supersedes all prior or simultaneous
representations, discussions, negotiations, and agreements, whether written or
oral, including, without limitation, the Original Agreement. This Agreement may
be amended, modified or waived only in a writing signed by Executive and the
Board. No oral waiver, amendment or modification will be effective under any
circumstances whatsoever. Any amendment, waiver or modification not effected in
accordance with the Section 14 shall be null and void. In the event of a
conflict between the terms of the Warrant or the Purchase Agreement and this
Agreement, the terms of this Agreement shall control.

                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.

                                      -9-
<PAGE>

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY
UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES
HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

                                         JEFF LUNSFORD

Dated: July 21, 2004                     /s/ Jeff Lunsford
       ______________________            ________________________________
                                         Jeff Lunsford

                                         ADDRESS: c/o 10182 Telesis Court, 6th
                                                  Floor
                                                  _______________________

                                                  San Diego CA 92121
                                                  _______________________

                                         WEBSIDESTORY, INC.

Dated: July 21, 2004                     By: /s/ Tom Willardson
       ______________________                ____________________________

                                         Name: Tom Willardson
                                               __________________________

                                         Title: CFO
                                                _________________________

                                         ADDRESS: 10182 Telesis Court, 6th Floor
                                                  San Diego, CA 92121

      SIGNATURE PAGE TO AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

<PAGE>

                                    EXHIBIT A

                        FORM OF GENERAL RELEASE OF CLAIMS

GENERAL RELEASE. Executive unconditionally, irrevocably and absolutely releases
and discharges Company, and any parent and subsidiary corporations, divisions
and affiliated corporations, partnerships or other affiliated entities of
Company, past and present, as well as Company's employees, officers, directors,
shareholders, agents, successors and assigns (collectively, "RELEASED PARTIES"),
and Company unconditionally, irrevocably and absolutely releases and discharges
Executive, from all claims related in any way to Executive's employment with
Company, or termination there from, to the fullest extent permitted by law, and
all other losses, liabilities, claims, charges, demands and causes of action,
known or unknown, suspected or unsuspected, arising directly or indirectly out
of or in any way connected with Executive's relationship with Company, whether
as an employee, officer, director or shareholder. Notwithstanding the foregoing,
nothing in this release shall in any way constitute a release or waiver to
Executive's rights to any payments due to him under the Amended and Restated
Executive Employment Agreement entered into effective as of July 21, 2004 by and
between Company and Executive, and Executive's rights to purchase securities
under the Common Stock Purchase Agreement and the Warrant to Purchase Series D
Preferred Stock, each between Executive and Company and dated as of April 1,
2003. This release is intended to have the broadest possible application to
claims in respect of Company and Executive, and includes, but is not limited to,
any tort, contract, common law, constitutional or other statutory claims,
including, but not limited to alleged violations of the California Labor Code or
the federal Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964
and the California Fair Employment and Housing Act, the Americans with
Disabilities Act, the Age Discrimination in Employment Act of 1967, as amended
(the "ADEA"), and all claims for attorneys' fees, costs and expenses. Each of
Company and Executive expressly waive its or his right to recovery of any type,
including damages or reinstatement, in any administrative or court action,
whether state or federal, and whether brought by Company or Executive, or on
Company's or Executive's behalf, related in any way to the matters released
herein.

CALIFORNIA CIVIL CODE SECTION 1542 MUTUAL WAIVER. Executive and Company
expressly acknowledge and agree that all rights under Section 1542 of the
California Civil Code are expressly waived. That section provides:

            A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
            NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING
            THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
            SETTLEMENT WITH THE DEBTOR.

      If Executive is 40 years of age or older, Executive acknowledges that he
is waiving and releasing any rights he may have under the ADEA and that the
waiver and release is knowing and voluntary. Company and Executive agree that
the waiver and release does not apply to any rights or claims that may arise
under the ADEA after the date of termination of Executive's employment with
Company. Executive acknowledges that the consideration given for this waiver and
release is in addition to anything of value to which you were already entitled.
Executive further acknowledges that he has been advised by Company in writing
that (a) he should consult with an attorney prior to executing this release; (b)
he has twenty-one (21) days within which to consider this release; (c) he has
seven (7) days following the execution of this release by the parties to revoke
this release (the "REVOCATION PERIOD"); and (d) this release shall not be
effective until the Revocation Period has expired without Executive revoking or
purporting to revoke this release or any other provision of this release.
Executive hereby agrees to waive

         EXHIBIT TO AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

<PAGE>

the additional twenty-one (21) day period to review and consider this release,
to which Executive would otherwise be entitled.

REPRESENTATION CONCERNING FILING OF LEGAL ACTIONS. The parties represent that,
as of the date of this Agreement, they have not filed any lawsuits, charges,
complaints, petitions, claims or other accusatory pleadings against each other
or any of the other Released Parties in any court or with any governmental
agency. The parties further agree that, to the fullest extent permitted by law,
they will not prosecute, nor allow to be prosecuted on their behalf, in any
administrative agency, whether state or federal, or in any court, whether state
or federal, any claim or demand of any type related to the matters released
above, it being the intention of the parties that with the execution of this
release, the parties will be absolutely, unconditionally and forever discharged
of and from all obligations to or on behalf of each other related in any way to
the matters discharged herein.

         EXHIBIT TO AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

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