Document:

Mysis Agreement with MGSI

 Exhibit 10.13 
 Medic Purchase Agreement 
 for 
 Medical Group Services, Inc. 
 October 16, 2000 
 Proposal Valid Through November 15, 2000 
 Prepared By: 
 Gregor Treanor

 Territory Manager 
 Confidential Information 
 Property of Medic Computer Systems, Inc. 

 This Master Agreement (“Agreement”) is made this      day of
                    , 2000, between Medic Computer Systems, LLC, having its principal offices at 8529 Six Forks Road, Raleigh, North Carolina
27615 (“Medic”) and Medical Group Services, Inc., having its principal offices at 6800 North Dale Mabry Highway Suite 100 Tampa, FL 33614 (“Client”) 
 1. Definitions 
 Unless the context otherwise requires, the following definitions
shall apply: 
 “Designated Location” shall mean the Client’s premises at which the System is to be installed and operated.

 “Hardware” shall mean the computer and any ancillary equipment to be supplied by Medic as identified in the Schedule. 
 “Maintenance” means the Software maintenance. Hardware maintenance, and Operating System and Third Party Software maintenance, as each is defined
herein. 
 “Operating System” shall mean the third party foundation software required to communicate with the Hardware and to be supplied by
Medic as identified in the Schedule. 
 “Price” means the amount to be paid by client for the System and Services as identified in the
Schedule. 
 “Schedule” means the schedule or schedules hereto, and/or subsequently added by consent of the parties, which identify the
elements of the System to be provided and the Services to be performed by Medic under this Agreement. 
 “Services” means those services
specifically identified in the Schedule to be performed by or on behalf of Medic, including but not limited to training, maintenance, Implementation services, and conversion, 
 “Software” shall mean the Medic proprietary application software and its accompanying documentation as identified in the Schedule. 
 “System” shall mean the Software, Hardware, Operating System, and Third Party Software 
 “Third
Party Software” shall mean proprietary application software owned by third parties to be supplied by Medic as identified in the Schedule. 
 “Third Party Vendors” shall mean all third parties whose software is licensed to Client or whose Hardware is re-sold to Client as set forth in the Schedule. 
 2. Software License 
 In accordance with the terms herein, Medic grants to Client, and Client accepts from Medic, a
personal, nonexclusive and nontransferable license to use the Software for the number of concurrent users, and if applicable user sessions, set forth in the Schedule unless and until terminated hereunder. Client shall be entitled to license
additional concurrent users at Medic’s then prevailing rates by written agreement of the parties. All modifications, enhancements, and updates to the Software provided by Medic shall become part of the Software and be subject to the terms and
conditions herein. 
 The Software shall be used only for Client’s internal business needs and is only licensed on a single central processing unit, as
identified in the Schedule (“CPU”), at the Designated Location. Client may use the Software in combination with a different central processing unit upon a written agreement of the parties which shall Include payment of an additional
license fee at Medic’s then prevailing rate. Client shall not permit any third party to use the Software or grant a sublicense for the use of the Software. Violating of any provision of this paragraph shall entitle Medic to terminate this
Agreement and the Software license granted hereunder. 
 3. Copies 
 The Software license granted herein includes the right to copy the object code only in non-printed, machine readable form in whole or part as necessary for Client’s authorized use hereunder, including the making
of back-up copies. In order to protect the trade secrets and copyrights in the Software, Operating System and Third Party Software. Client agrees to reproduce and incorporate all copyright notices in any authorized copies, compilations,
modifications or partial copies. Violation of any provision of this paragraph shall entitle Medic to immediately terminate this Agreement and the Software, Operating System and Third Party Software licenses granted hereunder. 
 4. Operating System and Third Party Software License. 
 The Client
acknowledges that its use of the Operating System and/or Third Party Software may be subject to additional licensing terms from the relevant third party, and that the Client is authorized to use the Operating System and Third Party Software subject
to the terms of this Agreement and such additional licensing terms. 
 5. Hardware 
 Client agrees to purchase the Hardware from Medic subject to the terms of this Agreement or any third party agreement executed herewith. 
 6. Services 
 Client agrees to accept and Medic agrees to perform the Services
subject to the terms of this Agreement. 
 7. Price and Payment 
 Client shall pay Medic an initial non-refundable payment of twenty-five percent (25%) of the Price upon the execution of this Agreement and the remaining 75% of the Price upon the Initial installation of the System at the Designated
Location. In addition to the Price, Client shall pay, upon receipt of Medic’s invoice therefore, (i) all reasonable transportation charges, insurance, and such other reasonable charges not included in the Price, and (ii) all taxes
(including, but not limited to, sales, use, privilege, ad valorem and excise taxes) and customs duties paid or payable by Medic, however designated, leveled or based on amounts payable to Medic under this Agreement, excluding only taxes based on
Medic’s Income. 

 
In event that Client is leasing the System, 
 Client shall pay
Medic an initial non-refundable payment as indicated on the Schedule upon the execution of this Agreement and shall procure that Medic is paid the remaining portion of the Price the initial installation of the System at the Designated Location.

 All payments hereunder shall be made in United States Dollars. Unless otherwise stated herein, all invoices shall be due and payable within thirty
(30) days of date of invoice. On any invoice not paid within thirty (30) days, Medic may assess a Client shall pay a service charge accruing thereafter until the date of payment equal to the lesser of (i) the rate of one and one-half
percent (1.5%) per month, or (ii) the maximum lawful interest rate applicable. 
 In the event Client’s account is in arrears for more than
sixty (60) days for ANY reason, Medic shall be entitled to immediately place Client on support hold. No services, including EDI Services and Maintenance, will be provided while Client is on support hold, although Maintenance fees shall continue
to accrue. Client shall remain on support hold until Client’s account is paid current. 
 8. Delivery and Installation. 
 Delivery of the System shall be made F.O.B. to the Designated Location. The carrier, method of shipment and other matters relating to shipment shall be determined by
Medic. Medic shall have no liability for delays in delivery of the System. Client agrees to have the site adequately and properly prepared, in accordance with the provided manufacturer’s instructions, prior to delivery of the System.
Installation shall be deemed complete upon delivery and the initial set-up of the System at the Designated Location. 
 9. Substitutions 

Medic may, at its sole option and prior to delivery to Client, substitute System components with similar components of equal or better performance and functionality,
if reasonable under the circumstances. 
 10. Title to and Security Interest in the Hardware. 
 Title to the Hardware shall pass to Client upon Medic’s receipt of payment in full for such Hardware. Pursuant to the Uniform Commercial Code, Medic reserves and
Client grants to Medic a purchase money security interest in the Hardware, including all additions thereto, replacements and substitutions thereof and any proceeds from the sale or disposal thereof, until Client receives title thereto. Client shall
execute, upon presentation by Medic, any documentation required to perfect Medic’s security interest in the Hardware. Any attempt by Client to sell, assign, mortgage or otherwise encumber or convey the Hardware prior to receiving title thereto
shall be a material breach under this Agreement entitling Medic terminate this Agreement and the Software license granted hereunder. 
 11. Title to
Software. 
 The Software, Third Party Software, Operating System, all programs developed by Medic for the Client hereunder, and all copies thereof are
proprietary to Medic or the respective third party and title thereto remains with Medic or such third party. All applicable rights to patents, copyrights, trademarks and trade secrets in the Software, Third Party Software, Operating System or any
programs developed at Client’s request are and shall remain in Medic or the respective third party. Client shall not modify, reverse assemble or decompile, in whole or part, the Software, Third Party Software or Operating System. Client shall
not sell, license, transfer, publish, disclose, display or otherwise make available the Software, Third Party Software or Operating System or copies thereof to others. Client agrees to secure and protect the Software, Third Party Software and
Operating System and copies thereof in a manner consistent with the maintenance of Medic’s and/or the third party’s rights therein and to take appropriate action by instruction or agreement with its employees or consultants who are
permitted access to the Software, Third Party Software or Operating System to satisfy its obligations hereunder. Violation of any provision of this paragraph shall entitle Medic to terminate this Agreement and licenses granted hereunder. 

12. Confidentiality 
 Each part acknowledges that it will be
exposed to Confidential Information of the other party to the third parties without the prior written consent of said other party. The receiving party may disclose Confidential Information of the other party to the receiving party’s employees
and/or authorized agents only on a need to know basis. The receiving party shall inform its employees and agents, by way of policy and agreement, that they are bound by the aforementioned obligations of confidentiality. In addition, each party shall
only be entitled to use Confidential Information for the purpose intended hereunder. 
 “Confidential Information” means (i) the terms and
conditions of this Agreement, and (ii) any other information that the disclosing party desires to protect against unrestricted disclosure by the receiving party and that (A) is disclosed in tangible form, is marked in writing as
“confidential” or with a similar designation, (B) if disclosed orally or visually, is designated orally at the time of disclosure as “confidential,” or (C) with respect to Confidential Information of Client, is
information maintained on the System. Confidential Information will not include any information that (1) is already in the possession of the receiving party without obligation of confidence, (2) is independently developed by the receiving
party, (3) is or becomes publicly available without breach of this Agreement, (4) is rightfully received by the receiving party without obligation of confidence, (5) is released for public disclosure by disclosing party, or
(6) is commingled with other third party information for statistical purposes. 
 13. Performance of Services 
 Medic shall exercise reasonable skill and care in the provision and performance of Services under this 

 Agreement but shall have no liability for any delay in the provision or performance of such Services. Medic makes no
representations as to the effectiveness of its Services or the ability of such Services to meet Client’s individual needs. 
 14. Maintenance of
Software 
 Medic agrees to provide Software maintenance, to the extent it is itemized in the Schedule and subject to Client’s payment of the
applicable maintenance fees, as follows: 
 (a) 1-800 Helpdesk support during Medic’s standard Helpdesk hours, with Medic recognized holidays excluded.
Any beeper service provided by Medic is billable at Medic’s then prevailing rates. “Helpdesk support” is defined as reasonable telephone support for he Software, which ranges from addressing simple application questions to providing
in-depth technical assistance. Helpdesk support does not provide unlimited training to Client. Rather, Client shall be responsible for ensuring that key personnel attend Software training and that new staff additions are subsequently trained on the
proper use of the Software. Software maintenance shall commence on the initial installation of the Software at the Designated Location. 
 (b) Medic shall,
in its sole discretion, provide periodic releases of the Software which include enhancements, corrections, and/or state and national insurance changes, as applicable. 
 (c) Medic shall be responsible for maintaining only the current and next most current release of the Software. 
 15.
Maintenance of Operating System and Third Party Software 
 To the extent it is included in the Schedule, Medic will provide routine Helpdesk support for
the Operating System and third Party Software. In addition, Medic shall communicate with the respective third party in an attempt to obtain and provide to Client any applicable corrections to the Operating System and Third Party Software. Client
shall, however, be responsible for ensuring that key personnel and new staff additions are properly trained on the use and general maintenance of the Operating System and Third Party Software. 
 16. Maintenance of Hardware 
 Medic agrees to provide Hardware
maintenance, to the extent it is itemized in the Schedule and subject to Client’s payment of the applicable maintenance fees, as follows: 
 (a) 1-800
Helpdesk support during Medic’s then prevailing rates. In this context. “Helpdesk support” is defined as telephone support for the Hardware, which ranges from addressing simple use questions to providing in-depth technical 

(b) Medic shall, at its sole discretion, provide on-site remedial maintenance during Medic’s normal business hours if Client requires more than Helpdesk support.
On-site remedial maintenance shall consist of repair of replacement, at Medic’s sole discretion of such parts or other materials required to maintain the Hardware in good working order, but shall not include (1) changes or alternations in
specifications; (2) installation, moving or removing of Hardware, including peripherals; (3) furnishing consumable supplies or accessories, such as ink and ribbons; (4) repair or replacement of parts required as a result of
(i) accident, transportation, acts of God, neglect, misuse, failure of electric power, air conditioning or humidity control, (ii) wiring, or (iii) excessive wear and tear or unauthorized use. Repairs or replacements not included in
the Hardware maintenance will be invoiced at Medic’s then prevailing rates. Parts removed during repair or replacement of the Hardware, whether under maintenance or otherwise, become the property of Medic. 
 (c) Hardware maintenance commences upon the expiration of the respective manufacturer’s warranty. Medic reserves the right to discontinue maintenance on any
Hardware upon thirty (30) days written notice and shall not be responsible for maintenance of any Hardware not purchases from Medic. 
 17.
Maintenance Fees and Term 
 (a) The Maintenance fees are specified in the Schedule and are payable one year in advance. Client hereby acknowledges that
there are currently no Maintenance fees for the operating System, but Client shall be required to purchase any and all Operating System upgrades. 
 (b) If
Client elects not to purchase Maintenance or Client discontinues Maintenance and then subsequently elects to obtain or recommence Maintenance, Maintenance will be available at Medic’s then prevailing rates plus a one-time fee equal to all
missed Maintenance fees and the cost required to upgrade the System to its then supported levels. 
 (c) The initial term of each Maintenance agreement shall
be one year. All Maintenance fees are subject to change at any time after the end of the initial term. Thereafter, the term of the Maintenance portions of this Agreement shall be automatically extended for successive one year periods until
terminated by either party upon at least ninety (90) days prior written notice to the other or as otherwise provided herein. Maintenance for any additional System components shall commence upon Client’s payment of the applicable,
additional Maintenance fees to Medic. 
 18. Client’s Responsibilities 
 (a) Client shall properly backup its financial and patient data on a daily basis. In addition, Client shall use the Software in accordance with the documentation provided therewith. 
 (b) Client shall ensure Hardware is kept in good working order in accordance with the manufacturer’s recommendations and requirements. 
 (c) Client shall identify and provide a “key” individual contact, who has been trained by Medic, to serve as Client’s first line of support on routine
System issues for Client’s authorized users and to serve as a liaison between Client and Medic on these issues which need to be escalated to Medic. 
 (d) Client shall provide Medic access to the System via a support modem over a data quality telephone line. Such access shall allow Medic, from to time, to conduct an audit of the Software as required by Medic and to support, monitor and
test Client’s System. 

 (e) Client shall take all reasonable steps to ensure that no virus is loaded on the System. Virus diagnosis and removal
services are not covered by Maintenance and are billable at Medic’s then prevailing rates. 
 (f) Client shall promptly install all new releases of
Software when provided by Medic. If the installation of a new release of the Operating System of Third Party Software, the Client shall also obtain and promptly install such new release(s). 
 (g) Client shall be responsible for the following, unless otherwise set forth in the Schedule: adherence to specified electrical requirements; running all cable and
phone connections for the System; all data conversion, media, and other charges related to the transfer of Client’s data; all networking design and administration charges relating to the set-up and support of the Client’s network; and, all
reasonable travel, lodging, and food expenses incurred by Medic in providing the set-up, installation and training Services for the System. 
 19. Data
Conversion 
 Medic shall use reasonable efforts in attempting to convert Client’s data to the extent specified in the Schedule. Where a conversion
is required, client agrees to provide the contract person and the telephone number of its current practice management vendor, and will provide or procure the provision to Medic of all necessary data in a flat ASCIL format and/or the file components
and documentation required to perform the electronic conversion. All costs associated with the electronic conversion (e.g. media, freight, current vendor costs, readable data format and, if necessary, data conversion lab) are the responsibility of
Client. A conversion implementation schedule will be developed and agreed upon by Medic and Client. 
 20. Indemnity 
 Medic at its own expense will defend and hold Client harmless from any judgment against Client to the extent that such judgment is based in a claim that Software used
within the scope of this Agreement infringes any patents, copyrights, license or other property right of a third party. Client shall promptly notify Medic in writing of such claim. Medic shall have the right to control the defense of all such
claims, lawsuits and other proceedings. In no event shall Client make any prejudicial statement in relation thereto, or settle any such claim, lawsuit or proceeding without Medic’s prior written approval. Client shall, if and when requested by
Medic and at Medic’s expense, promptly provide all reasonable assistance in the defense of such claims. If as a result of any claims of infringement by the Software against and patent, copyright, license or other right of a third part, Medic or
Client is enjoined from using the Software, of if Medic believes that the Software is likely to result in a judgment of infringement, Medic at its option and expense may (i) procure the right for Client to continue to use the Software,
(ii) replace or modify the Software so as to make it non-infringing, with similar functionality, or (iii) discontinue the license granted herein and refund to the Client the respective license fees paid hereunder according to a three
(3) year depreciation scale. The foregoing states the entire EVEN liability of Medic with respect to infringement of any third party property rights by the Software or any parts thereof. This indemnity shall not apply if the infringement is
caused in whole or part by modifications to the System made by Client or other non-Medic personnel; use of the Software in a manner other than in accordance with this Agreement or use of the Software in conjunction with hardware of software not
supplied by Medic under this Agreement. 
 21. Warranties 
 (a) Medic represents that during the term of Software maintenance hereunder, the Software will (i) substantially conform to the operational features detailed in the documentation that properly accompanies the Software, provided the
Software is installed and used according to such documentation and (ii) be free of material defects which substantially affect its performance under normal use. Medic’s sole obligation under normal use. Medic’s sole obligation under
this warranty is to remedy any material defects in the Software. 
 (b) Client acknowledges and agrees that any warranties applying to the Hardware and the
component parts thereof are limited to those offered by the manufacturer thereof and, Medic shall use reasonable efforts to assign all manufacturers’ warranties to Client. Client hereby acknowledges and accepts that Hardware and the component
parts thereof, whether originally supplied or replaced under warranty or during maintenance, may not be new and may have been previously installed. 
 (c)
Client acknowledges and agrees that any warranties applying to the Operating System and Third Party Software are limited to those offered by the third party licensor thereof and Medic shall use reasonable efforts to assign all of the third party
licensors’ warranties to Client. 
 (d) THE ABOVE WARRANTIES ARE THE ONLY WARRANTIES MADE BY MEDIC TO CLIENT HEREUNDER. MEDIC MAKES AND CLIENT RECEIVES
NO OTHER WARRANTY, EXPRESS OR IMPLIED AND THERE ARE EXPRESSLY EXCLUDED ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. MEDIC DOES NOT REPRESENT THAT THE SYSTEM WILL MEET CLIENT’S REQUIREMENTS OR THAT THE OPERATION OF THE
SOFTWARE WILL BE UNINTERRUPTED OR ERROR FREE. 
 22. Limitation of Liability 
 IN NO EVENT SHALL MEDIC OR THIRD PARTY VENDORS BE LIABLE IN THE AGGREGATE FOR ANY DIRECT LOSS OR DAMAGE SUFFERED BY THE CLIENT IN AN AMOUNT EXCEEDING THAT PAID BY CLIENT TO MEDIC UNDER THIS AGREEMENT DURING THE
PREVIOUS TWELVE MONTHS. MEDIC AND THIRD PARTY VENDORS SHALL HAVE NO LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, EMEPLARY, OR INCIDENTAL DAMAGES OR FOR ANY DAMAGES WHATSOEVER RESULTING FROM UNAUTHORIZED ACCESS TO THE SYSTEM, LOSS OF DATA OR LOSS
OF PROFITS, ARISING OUT OF 

 OR IN CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE THEREOF, EVEN IF MEDIC OF THIRD PARTY VENDORS HAVE BEEN ADVISED
OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES. 
 23. Termination 
 If Client fails to pay the Price or otherwise commits a breach hereof, and persists in such failure for ten (10) days after receiving written notice thereof from Medic, Medic may terminate this Agreement and declare any unpaid amounts
owned hereunder immediately due and payable. Thereupon Client shall immediately return the System and all copies of the Software to Medic. Cancellation of the license granted hereunder shall be in addition to and not in lieu of any other remedies
available to Medic. Sections 7, 10, 11, 12, 20, and 22 shall survive termination of this Agreement. 
 24. Returns 
 Any returns of the System, or components thereof, by Client must be requested within 90 days after delivery to Client and must have Medic’s prior written approval.
Client shall be subject to payment of any or all of the following for each approved return: 1) an amount equal to the depreciation of the returned Hardware: 2) a ten percent (10%) re-stocking fee: and, 3) the amount owed for Services already
rendered in relation thereto. 
 25. Source Code Escrow 
 A current version of the Software source code and the accompanying documentation have been put into escrow with a third party. Source code is eligible for release in the event Medic liquidates or shall be declared bankrupt. If Client
receives source code under the above circumstances, such source code shall be deemed to be Software and subject to the term and conditions herein. The source code is to be used solely for Client’s maintenance of the Software. 
 26. General 
 (a) Unless otherwise specifically agreed in writing by
an authorized representative of Client and a Vice President or higher ranking officer of Medic, this Master Agreement will solely govern any present or future purchases/licenses by Client from Medic. Any additional Schedules shall be attached and
incorporated into this Agreement by reference. 
 (b) Each party acknowledges that it, and agrees to be bound by its Agreement, understands it, and agrees to
be bound by its terms. This Agreement, along with respective Schedule(s), is the complete and exclusive statement of the parties with the respect to the System and shall supersede all prior proposals, understandings and all other agreements, oral
and written. The terms and conditions in this Agreement shall take precedence over the terms and conditions included in al purchase orders and other documentation submitted by Client pursuant to this Agreement. The Client acknowledges and accepts
that in entering into this Agreement it has not relied on any representation made by or on behalf of Medic that has not been expressly authorized in writing by a Vice President or higher ranking office of Medic. This Agreement may not be modified or
altered except by a written instrument duly executed by both parties. 
 (c) Neither party hereto shall be liable or deemed in default for any delay or
failure in performance hereunder resulting from any cause beyond its reasonable control. 
 (d) This Agreement, and any action arising out of or related to
it, shall be governed by and construed in accordance with the laws of the State of North Carolina; however, except as otherwise expressly stated herein, the parties specifically waive and disclaim the applicability of the Uniform Commercial Code,
Uniform Electronic Transactions act, and Uniform Computer Information Transactions Act to this Agreement. In the event any action or proceeding is bought in connection with this Agreement, the prevailing party shall be entitled to recover its costs
and reasonable attorneys’ fees. 
 (e) If any provision of this Agreement is held to be invalid or otherwise unenforceable, the validity, legality and
enforceability of the remaining provisions shall in no way be affected or impaired. 
 (f) This Agreement shall be binding upon and for the benefit only of
the parties hereto and their respective successors and permitted assigns. Client may not assign this Agreement nor any of its rights, duties or obligations hereunder without the prior written consent of Medic. Any valid assignment of Client’s
rights and obligations in relation to the Software will require an additional Software license fee paid to Medic at Medic’s then prevailing rates unless otherwise specified. 
 (g) The waiver or failure of either party to exercise any right provided for in this Agreement shall not be deemed a waiver of any further hereunder. 
 (h) All communications or notices permitted or required to be given or served under this Agreement shall be in writing, shall be addressed to the other parties at the appropriate party’s address or as set forth
above, and shall be deemed to have been duly given or served if delivered in person or deposited in the United States mail, certified mail, return receipt requested. 
 (i) during the term of the Agreement and for one year thereafter, Client will not, without the prior written consent of Medic, offer employment to, employ or subcontract work to any person employed then or within the
preceding three months by Medic. 
 (j) Any dispute or claim arising out of, or in connection with, this Agreement shall be finally settled by binding
arbitration in Raleigh, North Carolina, in accordance with the then-current rules and procedures of the American Arbitration Association. The arbitrator shall apply the law of the State of North Carolina, without reference to rules of arbitration,
to the merits of any dispute or claim. Judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction. The parties agree that, any provision of applicable law notwithstanding, they will not request, and the
arbitrator shall have no authority to award punitive or exemplary damages against any party. 
 (k) This Agreement shall become effective upon the signature
hereof by an authorized representative of the Client and Medic and receipt by Medic of the initial payment specified herein. 

 Approval 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized representative. 
  

									
	Approved By:	  		  	Approved By:
			
	Medic Computer Systems, LLC	  		  	Client
					
	By:	 	  
	  		  	By:	 	  

		 	Authorized Signature	  		  		 	Authorized Signature
					
	Name:	 	  
	  		  	Name:	 	  

	Printed	  		  	Printed
					
	Title:	 	  
	  		  	Title:	 	  

					
	Date:	 	  
	  		  	Date:	 	  

 Tiger Hardware and Network Recommended Minimums 
 The items listed below dictate the current minimum requirements* for each component of the client-server environment to initially operate the existing + Medic Tiger
application. 
 LAN 
  

	 	•	 	Minimum 10BaseT Ethernet or equivalent IP network 

  

	 	•	 	Cat5 cabling and connectors must be installed per industry standards to all devices and PCs devices 

  

	 	•	 	Hubs, Switches, Routers and other Ethernet LAN components must be approved equivalent to Medic recommendations 

  

	 	•	 	TCP/IP stack on all PCs and network components should be installed with only the necessary protocols required for normal application operations. Other protocols such as NETBUI,
NETBIOS, and IPX must be reviewed and approved prior to installation. 

  

	 	•	 	The pre-existing network shall be considered in reasonable health and void of known adverse conditions. In addition, the average bandwidth utilization shall not exceed 30%.

 WAN 
  

	 	•	 	Minimum service requirement for WAN lines is 128K Frame Relay with a minimum CIR of 48. Performance of a service with less than the recommended minimum CIR cannot be guaranteed.

  

	 	•	 	Device limit for the minimum WAN service requirement is 5-7 devices (PCs or printers). 

 NETWOK MODEM 
  

	 	•	 	A Shiva Net Modem or similar modem is required for any +Medic Tiger client installation. 

 This type of modem enables support to access PCs connected to the network and support the +Medic Tiger application. 
 CLIENT
PC 
  

	 	•	 	Microsoft ‘s Internet Explorer 4.0 must be loaded. 

  

	 	•	 	10 BaseT Ethernet adapter 

  

	 	•	 	Win95 or higher with TCP/IP 

  

	 	•	 	Pentium 300MHz with 64MB RAM 

  

	 	•	 	400MB Free disk space 

  

	 	•	 	800x600 Resolution with 1MB Video RAM 

 PRINTERS 
  

	 	•	 	Printers must have a Win95 or higher print driver 

  

	 	•	 	Printers can be connected to a Win95 or higher PC or may be connected directly to the network. 

 Printers can not be connected asynchronously to the AIX server. 
  

	 	•	 	Medic requires a HP JetDirect print server for any network printer requiring print jobs to be received from the +MEDIC Tiger application. (Note: An internal HP Jetdirect
print server can be used for network HP laser printers, otherwise an external HP JetDirect print server is required for other network printers). 

	*	These minimum requirements are subject to change with each release of a new module within the +Medic Tiger application. In addition, these requirements are intended as minimum
specifications only and shall not be interpreted as an optimal configuration for +Medic Tiger application. 

 Accepted

  

			
	By:	 	  

		
	Title:	 	  

		
	Date:2005 Equity Incentive Plan

 Exhibit 10.1 
 AER VENTURES, INC. 
 2005 EQUITY INCENTIVE PLAN 
 ADOPTED: August 18, 2005 
 APPROVED BY BOARD OF DIRECTORS: August 15, 2005 
 APPROVED BY SHAREHOLDERS:
                    , 2005 
 TERMINATION DATE: August 18, 2015 
 1. PURPOSES. 
 (a) ELIGIBLE STOCK AWARD RECIPIENTS. The persons eligible to receive Stock Awards are the Employees, Directors and Consultants of the Company and its
Affiliates. 
 (b) AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards may be
given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Incentive Stock Options, (ii) Non-statutory Stock Options, (iii) stock bonuses and (iv) rights to
acquire restricted stock. 
 (c) GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain the services of the group of persons
eligible to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
 2. DEFINITIONS. 
 (a) “AFFILIATE”
means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 
 (b) “BOARD” means the Board of Directors of the Company. 
 (c) “CODE” means the Internal Revenue Code of 1986, as amended. 
 (d) “COMMITTEE” means
a Committee appointed by the Board in accordance with subsection 3(c). 
 (e) “COMMON STOCK” means the common stock of the Company.

 (f) “COMPANY” means AER Ventures, Inc., a Nevada corporation. 
 (g) “CONSULTANT” means any person, including an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory
services and who is compensated for such services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term “Consultant” shall not include either Directors of the Company who are not compensated by the
Company for their services as Directors or Directors of the Company who are merely paid a director’s fee by the Company for their services as Directors. 

 (h) “CONTINUOUS SERVICE” means that the Participant’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders
service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continuous
Service. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or a Director of the Company will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company,
in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

(i) “COVERED EMPLOYEE” means the chief executive officer and the four (4) other highest compensated officers of the Company for whom
total compensation is required to be reported to shareholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code. 
 (j) “DIRECTOR” means a member of the Board of Directors of the Company. 
 (k)
“DISABILITY” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. 
 (l)
“EMPLOYEE” means any person employed by the Company or an Affiliate. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company
or an Affiliate. 
 (m) “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended. 
 (n) “FAIR MARKET VALUE” means, as of any date, the value of the Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq Small Cap Market, the Fair
Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common
Stock) on the last market trading day prior to the day of determination, as reported in THE WALL STREET JOURNAL or such other source as the Board deems reliable. 
 (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board. 
  

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 (iii) Prior to the Listing Date, the value of the Common Stock shall be determined in a manner
consistent with Section 260.140.50 of Title 10 of the California Code of Regulations. 
 (o) “INCENTIVE STOCK OPTION”
means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (p) “LISTING DATE” means the first date upon which any security of the Company 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 inter-dealer quotation system if such securities exchange or inter-dealer quotation system has been certified in accordance with the provisions of Section 25100(o) of the
California Corporate Securities Law of 1968. 
 (q) “NON-EMPLOYEE DIRECTOR” means a Director of the Company who either 

(i) is not a current Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the
Company or its parent or a subsidiary for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated
pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business
relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or 
 (ii) is otherwise considered a
“non-employee director” for purposes of Rule 16b-3. 
 (r) “NONSTATUTORY STOCK OPTION” means an Option not intended
to qualify as an Incentive Stock Option. 
 (s) “OFFICER” means (i) before the Listing Date, any person designated by the
Company as an officer and (ii) on and after the Listing Date, a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (t) “OPTION” means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the Plan. 
 (u) “OPTION AGREEMENT” means a written agreement between the Company and an Option holder evidencing the terms and conditions of an individual
Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 
 (v) “OPTIONHOLDER” means a person
to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option. 
  

 3 

 (w) “OUTSIDE DIRECTOR” means a Director of the Company who either 
 (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under
Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company
or an “affiliated corporation” at any time and is not currently receiving direct or indirect remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director or 
 (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code. 
 (x) “PARTICIPANT” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award. 
 (y) “PLAN” means this AER Ventures, Inc. 2005 Equity Incentive Plan. 
 (z) “RULE 16B-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

 (aa) “SECURITIES ACT” means the Securities Act of 1933, as amended. 
 (bb) “STOCK AWARD” means any right granted under the Plan, including an Option, a stock bonus and a right to acquire restricted stock.

 (cc) “STOCK AWARD AGREEMENT” means a written agreement between the Company and a holder of a Stock Award evidencing the terms
and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
 (dd) “TEN PERCENT SHAREHOLDER” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock
of the Company or of any of its Affiliates. 
 3. ADMINISTRATION. 
 (a) ADMINISTRATION BY BOARD. The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as provided in
subsection 3(c). 
 (b) POWERS OF BOARD. The Board shall have the power, subject to, and within the limitations of, the express
provisions of the Plan: 
 (i) To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards;
when and how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock 
  

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 Award granted (which need not be identical), including the time or times when a person shall be permitted to receive
stock pursuant to a Stock Award; and the number of shares with respect to which a Stock Award shall be granted to each such person. 
 (ii)
To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the
Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
 (iii) To amend the Plan or a Stock Award as provided in Section 12. 
 (iv) Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 
 (c) DELEGATION TO COMMITTEE. 
 (i) GENERAL. 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” shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall 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 shall 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. The Board may abolish the Committee at any
time and revest in the Board the administration of the Plan. 
 (ii) COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY TRADED. At such
time as the Common Stock is publicly traded, in the discretion of the Board, a Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in
accordance with Rule 16b-3. Within the scope of such authority, the Board or the Committee may (i) delegate to a committee of one or more members of the Board who are not Outside Directors the authority to grant Stock Awards to eligible
persons who are either (1) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award or (2) not persons with respect to whom the Company wishes to comply
with Section 162(m) of the Code and/or) (ii) delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Stock Awards to eligible persons who are not then subject to Section 16
of the Exchange Act. 
 4. SHARES SUBJECT TO THE PLAN. 
 (a) SHARE RESERVE. Subject to the provisions of Section 11 relating to adjustments upon changes in stock, the stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate 5,000,000 shares
of Common Stock. 
  

 5 

 (b) REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full (or vested in the case of Restricted Stock), the stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan. If any Common
Stock acquired pursuant to the exercise of an Option shall for any reason be repurchased by the Company under an unvested share repurchase option provided under the Plan, the stock repurchased by the Company under such repurchase option shall not
revert to and again become available for issuance under the Plan. 
 (c) SOURCE OF SHARES. The stock subject to the Plan may be unissued
shares or reacquired shares, bought on the market or otherwise. 
 5. ELIGIBILITY. 
 (a) ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Incentive Stock Options may be granted only to Employees. Stock Awards other than Incentive Stock Options may
be granted to Employees, Directors and Consultants. 
 (b) TEN PERCENT SHAREHOLDERS. No Ten Percent Shareholder shall be eligible for the
grant of an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not exercisable after the expiration of
five (5) years from the date of grant. 
 Prior to the Listing Date, no Ten Percent Shareholder shall be eligible for the grant of a
Nonstatutory Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant. 
 Prior to the Listing Date, no Ten Percent Shareholder shall be eligible for a restricted stock award unless the purchase price of the restricted stock is
at least one hundred percent (100%) of the Fair Market Value of the Common Stock at the date of grant. 
 (c) SECTION 162(m)
LIMITATION. Subject to the provisions of Section 11 relating to adjustments upon changes in stock, no employee shall be eligible to be granted Options covering more than 100,000 shares of the Common Stock during any calendar year. This
subsection 5(c) shall not apply prior to the Listing Date and, following the Listing Date, this subsection 5(c) shall not apply until 
 (i) the earliest of: (1) 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 4); (2) the issuance of all of the shares of
Common Stock reserved for issuance under the Plan; (3) the expiration of the Plan; or (4) the first meeting of shareholders at which Directors of the Company 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 under Section 12 of the Exchange Act; or 
  

 6 

 (ii) such other date required by Section 162(m) of the Code and the rules and regulations
promulgated thereunder. 
 6. OPTION PROVISIONS. 
 Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at
the time of grant, and a separate certificate or certificates will be issued for shares purchased on exercise of each type of Option. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of
provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
 (a) TERM. Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, no Option shall be exercisable after the expiration of ten (10) years from the date it was granted. 
 (b) EXERCISE PRICE OF AN INCENTIVE STOCK OPTION. Subject to the provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise price
of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option may be
granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.

 (c) EXERCISE PRICE OF A NONSTATUTORY STOCK OPTION. Subject to the provisions of subsection 5(b) regarding Ten Percent Shareholders,
the exercise price of each Nonstatutory Stock Option granted prior to the Listing Date shall be not less than eighty-five percent (85%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. The exercise
price of each Nonstatutory Stock Option granted on or after the Listing Date shall be not less than eighty-five percent (85%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. Notwithstanding the
foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the
provisions of Section 424(a) of the Code. 
 (d) CONSIDERATION. The purchase price of stock acquired pursuant to an Option shall be
paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the discretion of the Board at the time of the grant of the Option (or subsequently in the case of a
Nonstatutory Stock Option) by (1) delivery to the Company of other Common Stock, (2) according to a deferred payment or other arrangement (which may include, without limiting the generality of the foregoing, the use of other Common Stock)
with the Participant or (3) in any other form of legal consideration that may be acceptable to the Board; provided, however, that at any time that the Company is incorporated in Delaware, payment of the Common Stock’s “par
value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 
  

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 In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall
be charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 
 (e) TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing provisions of this subsection 6(e), the Optionholder may, by delivering written notice to the Company, in a
form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 
 (f) TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory Stock Option granted prior to the Listing Date shall not be transferable except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder. A Nonstatutory Stock Option granted on or after the Listing Date shall be transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option
does not provide for transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing provisions of this subsection 6(f), the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option. 
 (g) VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in periodic installments which may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised
(which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(g) are subject to any Option provisions governing the minimum
number of shares as to which an Option may be exercised. 
 (h) MINIMUM VESTING PRIOR TO THE LISTING DATE. Notwithstanding the foregoing
subsection 6(g), Options granted prior to the Listing Date shall provide for vesting of the total number of shares at a rate of at least twenty percent (20%) per year over five (5) years from the date the Option was granted, subject
to reasonable conditions such as continued employment. However, in the case of such Options granted to Officers, Directors or Consultants, the Option may become fully exercisable, subject to reasonable conditions such as continued employment, at any
time or during any period established by the Company; for example, the vesting provision of the Option may provide for vesting of less than twenty percent (20%) per year of the total number of shares subject to the Option. 
 (i) TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death
or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder 
  

 8 

 was entitled to exercise it as of the date of termination) but only within such period of time ending on the earlier of
(i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement, which, for Options granted prior to the Listing Date, shall not be
less than thirty (30) days, unless such termination is for cause), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within
the time specified in the Option Agreement, the Option shall terminate. 
 (j) EXTENSION OF TERMINATION DATE. An Optionholder’s Option
Agreement may also provide that if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the
issuance of shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in subsection 6(a) or (ii) the
expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements. 
 (k) DISABILITY OF OPTIONHOLDER. In the event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination), but only within such period of time ending on the earlier of 
 (i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option Agreement, which, for Options
granted prior to the Listing Date, shall not be less than six (6) months) or 
 (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 
 (l) DEATH OF OPTIONHOLDER. In the event (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if any)
specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise the Option as of the date
of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death pursuant to subsection 6(e) or
6(f), but only within the period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement, which, for Options granted prior to the Listing
Date, shall not be less than six (6) months) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate.

 (m) EARLY EXERCISE. The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the
Optionholder’s Continuous Service 
  

 9 

 terminates to exercise the Option as to any part or all of the shares subject to the Option prior to the full vesting of
the Option. Subject to the “Repurchase Limitation” in subsection 10(h), any unvested shares so purchased may be subject to an unvested share repurchase option in favor of the Company or to any other restriction the Board determines to
be appropriate. 
 (n) RIGHT OF REPURCHASE. Subject to the “Repurchase Limitation” in subsection 10(h), the Option may, but
need not, include a provision whereby the Company may elect, prior to the Listing Date, to repurchase all or any part of the vested shares acquired by the Optionholder pursuant to the exercise of the Option. 
 (o) RIGHT OF FIRST REFUSAL. The Option may, but need not, include a provision whereby the Company may elect, prior to the Listing Date, to exercise a
right of first refusal following receipt of notice from the Optionholder of the intent to transfer all or any part of the shares exercised pursuant to the Option. Except as expressly provided in this subsection 6(o), such right of first refusal
shall otherwise comply with any applicable provisions of the Bylaws of the Company. 
 (p) RE-LOAD OPTIONS. Without in any way limiting the
authority of the Board to make or not to make grants of Options hereunder, the Board shall have the authority (but not an obligation) to include as part of any Option Agreement a provision entitling the Optionholder to a further Option (a
“Re-Load Option”) in the event the Optionholder exercises the Option evidenced by the Option Agreement, in whole or in part, by surrendering other shares of Common Stock in accordance with this Plan and the terms and conditions of the
Option Agreement. Any such Re-Load Option shall (i) provide for a number of shares equal to the number of shares surrendered as part or all of the exercise price of such Option; (ii) have an expiration date which is the same as the
expiration date of the Option the exercise of which gave rise to such Re-Load Option; and (iii) have an exercise price which is equal to one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Re-Load Option
on the date of exercise of the original Option. Notwithstanding the foregoing, a Re-Load Option shall be subject to the same exercise price and term provisions heretofore described for Options under the Plan. 
 Any such Re-Load Option may be an Incentive Stock Option or a Nonstatutory Stock Option, as the Board may designate at the time of the grant of the
original Option; provided, however, that the designation of any Re-Load Option as an Incentive Stock Option shall be subject to the one hundred thousand dollars ($100,000) annual limitation on exercisability of Incentive Stock Options described
in subsection 10(d) and in Section 422(d) of the Code. There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load Option shall be subject to the availability of sufficient shares under subsection 4(a) and the
“Section 162(m) Limitation” on the grants of Options under subsection 5(c) and shall be subject to such other terms and conditions as the Board may determine which are not inconsistent with the express provisions of the Plan
regarding the terms of Options. 
 7. PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS. 
 (a) STOCK BONUS AWARDS. Each stock bonus agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.
The 
  

 10 

 terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate
stock bonus agreements need not be identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 
 (i) CONSIDERATION. A stock bonus shall be awarded in consideration for past services actually rendered to the Company for its benefit. 
 (ii) VESTING. Subject to the “Repurchase Limitation” in subsection 10(h), shares of Common Stock awarded under the stock bonus agreement
may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
 (iii) TERMINATION OF PARTICIPANT’S CONTINUOUS SERVICE. Subject to the “Repurchase Limitation” in subsection 10(h), in the event a Participant’s Continuous Service terminates, the Company may
reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the stock bonus agreement. 
 (iv) TRANSFERABILITY. For a stock bonus award made before the Listing Date, rights to acquire shares under the stock bonus agreement shall not be
transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. For a stock bonus award made on or after the Listing Date, rights to acquire shares under
the stock bonus agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as stock awarded under the stock bonus
agreement remains subject to the terms of the stock bonus agreement. 
 (b) RESTRICTED STOCK AWARDS. Each restricted stock purchase agreement
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of separate
restricted stock purchase agreements need not be identical, but each restricted stock purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions: 
 (i) PURCHASE PRICE. Subject to the provisions of subsection 5(b) regarding Ten Percent Shareholders, the purchase price
under each restricted stock purchase agreement shall be such amount as the Board shall determine and designate in such restricted stock purchase agreement. For restricted stock awards made prior to the Listing Date, the purchase price shall not be
less than eighty-five percent (85%) of the stock’s Fair Market Value on the date such award is made or at the time the purchase is consummated. For restricted stock awards made on or after the Listing Date, the purchase price shall not be
less than eighty-five percent (85%) of the stock’s Fair Market Value on the date such award is made or at the time the purchase is consummated. 
  

 11 

 (ii) CONSIDERATION. The purchase price of stock acquired pursuant to the restricted stock purchase
agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or other arrangement with the Participant; or (iii) in any other form of legal consideration
that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, then payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation
Law, shall not be made by deferred payment. 
 (iii) VESTING. Subject to the “Repurchase Limitation” in subsection 10(h),
shares of Common Stock acquired under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
 (iv) TERMINATION OF PARTICIPANT’S CONTINUOUS SERVICE. Subject to the “Repurchase Limitation” in subsection 10(h), in the event a
Participant’s Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the
restricted stock purchase agreement. 
 (v) TRANSFERABILITY. For a restricted stock award made before the Listing Date, rights to acquire
shares under the restricted stock purchase agreement shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. For a restricted stock
award made on or after the Listing Date, rights to acquire shares under the restricted stock purchase agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement,
as the Board shall determine in its discretion, so long as stock awarded under the restricted stock purchase agreement remains subject to the terms of the restricted stock purchase agreement. 
 8. COVENANTS OF THE COMPANY. 
 (a)
AVAILABILITY OF SHARES. During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Stock Awards. 
 (b) SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan,
any Stock Award or any stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Stock Awards unless and until such authority is obtained. 
  

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 9. USE OF PROCEEDS FROM STOCK. Proceeds from the sale of stock pursuant to Stock Awards shall constitute
general funds of the Company. 
 10. MISCELLANEOUS. 
 (a) ACCELERATION OF EXERCISABILITY AND VESTING. The Board shall have the power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest. 
 (b) SHAREHOLDER RIGHTS. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award pursuant to its terms. 
 (c) NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in
the Plan or any instrument executed or Stock Award granted pursuant thereto shall confer upon any Participant or other holder of Stock Awards any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock
Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such
Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the
Affiliate is incorporated, as the case may be. 
 (d) INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that the aggregate Fair
Market Value (determined at the time of grant) of stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates) exceeds one
hundred thousand dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 
 (e) INVESTMENT ASSURANCES. The Company may require a Participant, as a condition of exercising or acquiring stock under any Stock Award, (i) to give
written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory
to the Company stating that the Participant is acquiring the stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the stock. The foregoing requirements, and
any assurances given pursuant to such requirements, shall be inoperative if (iii) the issuance of the shares upon the exercise or acquisition of stock under the Stock Award has been registered under a then currently effective registration
statement under the Securities Act or (iv) as to any particular 
  

 13 

 requirement, a determination is made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with
applicable securities laws, including, but not limited to, legends restricting the transfer of the stock. 
 (f) WITHHOLDING OBLIGATIONS. To
the extent provided by the terms of a Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of stock under a Stock Award by any of the following means (in
addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares
of the Common Stock otherwise issuable to the participant as a result of the exercise or acquisition of stock under the Stock Award; or (iii) delivering to the Company owned and unencumbered shares of the Common Stock. 
 (g) INFORMATION OBLIGATION. Prior to the Listing Date, to the extent required by Section 260.140.46 of Title 10 of the California Code of
Regulations, the Company shall deliver financial statements to Participants at least annually. This subsection 10(g) shall not apply to key Employees whose duties in connection with the Company assure them access to equivalent information.

 (h) REPURCHASE LIMITATION. The terms of any repurchase option shall be specified in the Stock Award and may be either at Fair Market Value
at the time of repurchase or at not less than the original purchase price. To the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the California Code of Regulations, any repurchase option contained in a
Stock Award granted prior to the Listing Date to a person who is not an Officer, Director or Consultant shall be upon the terms described below: 
 (i) FAIR MARKET VALUE. If the repurchase option gives the Company the right to repurchase the shares upon termination of employment at not less than the Fair Market Value of the shares to be purchased on the date of termination of
Continuous Service, then (i) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares within ninety (90) days of termination of Continuous Service (or in the case of shares issued
upon exercise of Stock Awards after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the
requirements of Section 1202(c)(3) of the Code regarding “qualified small business stock”) and (ii) the right terminates when the shares become publicly traded. 
 (ii) ORIGINAL PURCHASE PRICE. If the repurchase option gives the Company the right to repurchase the shares upon termination of Continuous Service at
the original purchase price, then (i) the right to repurchase at the original purchase price shall lapse at the rate of at least twenty percent (20%) of the shares per year over five (5) years from the date the Stock Award is granted
(without respect to the date the Stock Award was exercised or became exercisable) and (ii) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares within ninety (90) days of
termination of 
  

 14 

 Continuous Service (or in the case of shares issued upon exercise of Options after such date of termination, within
ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the requirements of Section 1202(c)(3) of the Code regarding
“qualified small business stock”). 
 11. ADJUSTMENTS UPON CHANGES IN STOCK. 
 (a) CAPITALIZATION ADJUSTMENTS. If any change is made in the stock subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares,
change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to
subsection 4(a) and the maximum number of securities subject to award to any person pursuant to subsection 5(c), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of securities and price per share
of stock subject to such outstanding Stock Awards. The Board, the determination of which shall be final, binding and conclusive, shall make such adjustments. (The conversion of any convertible securities of the Company shall not be treated as a
transaction “without receipt of consideration” by the Company.) 
 (b) DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company other than in an Acquisition (as defined below), then such Stock Awards shall be terminated if not exercised (if applicable) prior to such event, unless such outstanding Stock Awards are assumed by a subsequent purchaser.

 (c) CHANGE IN CONTROL. 
 (i)
For the purposes of this Section 11, “Acquisition” shall mean (1) any consolidation or merger of the Company with or into any other corporation or other entity or person in which the shareholders of the Company prior to such
consolidation or merger own less than fifty percent (50%) of the Company’s voting power immediately after such consolidation or merger, excluding any consolidation or merger effected exclusively to change the domicile of the Company; or
(2) a sale of all or substantially all of the assets of the Company. 
 (ii) In the event the Company undergoes an Acquisition then any
surviving corporation or acquiring corporation shall assume any Stock Awards outstanding under the Plan or shall substitute similar stock awards (including an award to acquire the same consideration paid to the shareholders in the transaction
described in this subsection 11(c)) for those outstanding under the Plan. 
 (iii) In the event any surviving corporation or acquiring
corporation in an Acquisition refuses to assume such Stock Awards or to substitute similar stock awards for those outstanding under the Plan, then with respect to (1) Stock Awards which (i) are held by Participants whose Continuous Service
has not terminated prior to such event, and (ii) would otherwise vest and become exercisable within one (1) year of the closing of the Acquisition, the vesting of such Stock Awards (and, if applicable, the time during which such Stock
Awards may 
  

 15 

 be exercised) shall be accelerated and made fully exercisable at least thirty (30) days prior to the closing of the
Acquisition (and the Stock Awards terminated if not exercised prior to the closing of such Acquisition), and (2) any other Stock Awards outstanding under the Plan, such Stock Awards shall be terminated if not exercised prior to the closing of
the Acquisition. 
 (iv) In the event the Company undergoes an Acquisition and the surviving corporation or acquiring corporation does assume
such Stock Awards (or substitutes similar stock awards for those outstanding under the Plan), then, with respect to each Stock Award held by persons then performing services as Employees or Directors, the vesting of each such Stock Award (and, if
applicable, the time during which such Stock Award may be exercised) shall be accelerated and such Stock Award shall become fully vested and exercisable, if any of the following events occurs within one (1) month before or eighteen (18)
months after the effective date of the Acquisition: (1) the service to the Company or an Affiliate of the Employee or Director holding such Stock Award is terminated without Cause (as defined below); (2) the Employee holding such Stock
Award terminates his or her service to the Company or an Affiliate due to the fact that the principal place of the performance of the responsibilities and duties of the Employee is changed to a location more than fifty (50) miles from such
Employee’s existing work location without the Employee’s express consent (not applicable to Directors); or (3) the Employee holding such Stock Award terminates his or her service to the Company or Affiliate due to the fact that there
is a material reduction in such Employee’s responsibilities and duties without the Employee’s express consent (not applicable to Directors). 
 (v) For the purposes of this Section 11(c), “Cause” means an individual’s misconduct, including but not limited to: (1) conviction of any felony or any crime involving moral turpitude or
dishonesty, (2) participation in a fraud or act of dishonesty against the Company, (3) conduct that, based upon a good faith and reasonable factual investigation and determination by the Board, demonstrates your gross unfitness to serve,
or (4) intentional, material violation of any contract with the Company or any statutory duty to the Company that is not corrected within thirty (30) days after written notice thereof. Physical or mental disability shall not constitute
“Cause.” 
 (vi) The acceleration of vesting provided for under this Section 11(c) may be limited in certain circumstances as
follows: If any such acceleration (the “Benefit”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for such acceleration, be subject to the excise tax imposed
by Section 4999 of the Code, then such Benefit shall be reduced to the extent necessary so that no portion of the Benefit would be subject to such excise tax, as determined in good faith by the Company; provided, however, that if, in the
absence of any such reduction (or after such reduction), such Employee believes that the Benefit or any portion thereof (as reduced, if applicable) would be subject to such excise tax, the Benefit shall be reduced (or further reduced) to the extent
determined by such Employee in his or her discretion so that the excise tax would not apply. If, notwithstanding any such reduction (or in the absence of such reduction), the Internal Revenue Service (“IRS”) determines that such Employee
is liable for the excise tax as a result of the Benefit, then such Employee shall be obligated to return to the Company, within thirty (30) days of such determination by the IRS, a portion of the Benefit sufficient such that none of the Benefit
retained by such Employee constitutes a “parachute payment” within the meaning of Section 280G of the Code that is subject to the excise tax. 
  

 16 

 12. AMENDMENT OF THE PLAN AND STOCK AWARDS. 
 (a) AMENDMENT OF PLAN. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in stock, no amendment shall be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3 or any
NASDAQ or securities exchange listing requirements. 
 (b) SHAREHOLDER APPROVAL. The Board may, in its sole discretion, submit any other
amendment to the Plan for shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 
 (c) CONTEMPLATED AMENDMENTS. It
is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith. 
 (d) NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing. 
 (e) AMENDMENT OF STOCK AWARDS. The Board at any time, and from time to time, may amend the
terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in
writing. 
 13. TERMINATION OR SUSPENSION OF THE PLAN. 
 (a) PLAN TERM. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the
Board or approved by the shareholders of the Company, whichever is earlier. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 
 (b) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan
is in effect except with the written consent of the Participant. 
  

 17 

 14. EFFECTIVE DATE OF PLAN. 
 The Plan shall become effective as determined by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be granted) unless and until the Plan has been approved by the shareholders of
the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 

 STOCK OPTION GRANT NOTICE 
  

			
	AER Ventures, Inc.	  	Company’s Name
		
	2005	  	 Year of Incentive Plan

		
	 6197 Cornerstone Court E.
 Suite 108
 San Diego, CA 92121
	  	 Company’s Address

		
	[AMT. INITIAL VESTING]	  	 Amount of Shares that vest after one year

		
	[PERCENT OF VESTING]	  	 Percentage of Shares that vest monthly after initial vesting

		
	[LENGTH OF VESTING]	  	 Length of time (in years) over which Shares vest

 AER VENTURES, INC. 
 STOCK OPTION GRANT NOTICE 
 (2005 INCENTIVE PLAN) 
 AER Ventures, Inc. (the “Company”), pursuant to its 2005 Equity Incentive Plan (the “Plan”), hereby grants to Option
holder an option to purchase the number of shares of the Company’s Common Stock set forth below. This option is subject to all of the terms and conditions as set forth herein and in the Stock Option Agreement, the Plan and the Notice of
Exercise, all of which are attached hereto and incorporated herein in their entirety. 
 Option
holder: ______________________________________________________________________________________________ 
 Date of Grant: 
 Vesting Commencement Date: _________________________________________________________________________________ 
 Number of Shares Subject to Option: ____________________________________________________________________________ 
 Exercise Price Per Share: _____________________________________________________________________________________ 
 Expiration Date: ____________________________________________________________________________________________ 
  

					
	TYPE OF GRANT:	  	 ̈    Incentive Stock Option	  	 ̈    Nonstatutory Stock Option
			
	EXERCISE SCHEDULE:	  	 ̈    Same as Vesting Schedule	  	 ̈    Early Exercise Permitted

 VESTING SCHEDULE: [AMT. INITIAL VESTING] of the shares vest one year after the Vesting Commencement Date.
[PERCENT OF VESTING] of the shares vest monthly thereafter over the next [LENGTH OF VESTING] years. 
 PAYMENT: By one or a combination of the following items (described in the Stock Option Agreement): 
 [By cash or
check] 
 [Pursuant to a Regulation T Program if the Shares are publicly traded] 
 [By delivery of already-owned shares if the Shares are publicly traded] 
 ADDITIONAL TERMS/ACKNOWLEDGMENTS: The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Grant Notice, the Stock Option Agreement, and the Plan. Optionholder further acknowledges
that as of the Date of Grant, this Grant Notice, the Stock Option Agreement, and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and
written agreements on that subject with the exception of options previously granted and delivered to Optionholder under the Plan. 
  

 1 

			
	AER VENTURES, INC.
		
	 By:
	 	  
		 	[signature above/name typed below line]
		
	 Date:
	 	  
	
	OPTIONHOLDER:
		
	 By:
	 	  
		 	[signature above/name typed below line]
		
	 Date:
	 	  
	
	 ATTACHMENTS: Stock Option Agreement
   2005 Equity Incentive Plan

		
		 	

  

 2 

 ATTACHMENT I 
 STOCK OPTION AGREEMENT 
 AER VENTURES, INC. 2005 EQUITY INCENTIVE PLAN 
 (INCENTIVE AND NONSTATUTORY STOCK OPTIONS) 
 Pursuant to the Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement, AER Ventures, Inc. (the “Company”) has granted you an option under its 2005 Equity Incentive Plan (the
“Plan”) to purchase the number of shares of the Company’s Common Stock indicated in the Grant Notice at the exercise price indicated in the Grant Notice. Defined terms not explicitly defined in this Stock Option Agreement but
defined in the Plan shall have the same definitions as in the Plan. 
 The details of your option are as follows: 
 1. VESTING. Subject to the limitations contained herein, your option will vest as provided in the Grant Notice, provided that vesting will cease upon the
termination of your Continuous Service. 
 2. NUMBER OF SHARES AND EXERCISE PRICE. The number of shares subject to your option and your
exercise price per share referenced in the Grant Notice may be adjusted from time to time for Capitalization Adjustments, as provided in the Plan. 
 3. EXERCISE PRIOR TO VESTING (“EARLY EXERCISE”). If permitted in the Grant Notice (i.e., the “Exercise Schedule” indicates that “Early Exercise” of your option is permitted) and subject to the provisions
of this option, you may elect at any time that is both (i) during the period of your Continuous Service and (ii) during the term of your option, to exercise all or part of your option, including the non-vested portion of your option;
provided, however, that: 
 (a) a partial exercise of your option shall be deemed to cover first vested shares and then the earliest vesting
installment of unvested shares; 
 (b) any shares so purchased from installments which have not vested as of the date of exercise shall be
subject to the purchase option in favor of the Company as described in the Company’s form of Early Exercise Stock Purchase Agreement; 
 (c) you shall enter into the Company’s form of Early Exercise Stock Purchase Agreement with a vesting schedule that will result in the same vesting as if no early exercise had occurred; and 
 (d) if your option is an incentive stock option, then, as provided in the Plan, to the extent that the aggregate Fair Market Value (determined at the
time of grant) of stock with respect to which your option plus all other incentive stock options you hold are exercisable for 
  

 1 

 the first time by you during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred
thousand dollars ($100,000), the options or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as nonstatutory stock options. 
 4. METHOD OF PAYMENT. Payment of the exercise price is due in full upon exercise of all or any part of your option. You may elect to make payment of the
exercise price in cash or by check or in any other manner PERMITTED BY THE GRANT NOTICE, which may include one or more of the following: 
 (a) In the Company’s sole discretion at the time your option is exercised and provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed
under Regulation T as promulgated by the Federal Reserve Board which, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise
price to the Company from the sales proceeds. 
 (b) Provided that at the time of exercise the Common Stock is publicly traded and quoted
regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock that either have been held for the period required to avoid a charge to the Company’s reported earnings (generally six months) or were not acquired,
directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes, in the sole
discretion of the Company at the time your option is exercised, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the Company. Notwithstanding the foregoing, your option may
not be exercised by tender to the Company of Common Stock to the extent such tender would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. 
 5. WHOLE SHARES. Your option may only be exercised for whole shares. 
 6. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein, your option may not be exercised unless the shares issuable upon exercise of your option are then registered under the
Securities Act or, if such shares are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with
other applicable laws and regulations governing the option, and the option may not be exercised if the Company determines that the exercise would not be in material compliance with such laws and regulations. 
 7. TERM. The term of your option commences on the Date of Grant and expires upon the EARLIEST of the following: 
 (a) three (3) months after the termination of your Continuous Service for any reason other than Disability or death, provided that if during any part
of such three (3) month period the option is not exercisable solely because of the condition set forth in paragraph 6, the 
  

 2 

 option shall not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate
period of three (3) months after the termination of your Continuous Service; 
 (b) twelve (12) months after the termination of
your Continuous Service due to Disability; 
 (c) eighteen (18) months after your death if you die either during your Continuous Service
or within three (3) months after your Continuous Service terminates; 
 (d) the Expiration Date indicated in the Grant Notice; or

 (e) the tenth (10th) anniversary of the Date of Grant. 
 If your option is an incentive stock option, note that, to obtain the federal income tax advantages associated with an “incentive stock option,” the Code requires that at all times beginning on the date of
grant of the option and ending on the day three (3) months before the date of the option’s exercise, you must be an employee of the Company or an Affiliate, except in the event of your death or your Disability. The Company has provided for
extended exercisability of your option under certain circumstances for your benefit, but cannot guarantee that your option will necessarily be treated as an “incentive stock option” if you provide services to the Company or an Affiliate as
a Consultant or Director or if you exercise your option more than three (3) months after the date your employment with the Company or an Affiliate terminates. 
 8. EXERCISE. 
 (a) You may exercise the vested portion of your option (and the unvested portion of your
option if the Grant Notice so permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate,
during regular business hours, together with such additional documents as the Company may then require. 
 (b) By exercising your option you
agree that, as a condition to any exercise of your option, the Company may require you to enter an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the
exercise of your option, (2) the lapse of any substantial risk of forfeiture to which the shares are subject at the time of exercise, or (3) the disposition of shares acquired upon such exercise. 
 (c) If your option is an incentive stock option, by exercising your option you agree that you will notify the Company in writing within fifteen (15)
days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within two (2) years after the date of your option grant or within one (1)year after such shares of Common
Stock are transferred upon exercise of your option. 
 (d) By exercising your option you agree that the Company (or a representative of the
underwriters) may, in connection with the first underwritten registration of the offering of 
  

 3 

 any securities of the Company under the Securities Act, require that you not sell, dispose of, transfer, make any short
sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any shares of Common Stock or other securities of the Company held by you, for a period of time specified by the
underwriter(s) (not to exceed one hundred eighty (180) days) following the effective date of the registration statement of the Company filed under the Securities Act. You further agree to execute and deliver such other agreements as may be
reasonably requested by the Company and/or the underwriter(s) which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to your Common Stock until the end of such period. 
 9. TRANSFERABILITY. Your option is not transferable, except
by will or by the laws of descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party
who, in the event of your death, shall thereafter be entitled to exercise your option. 
 10. RIGHT OF FIRST REFUSAL. Vested shares that are
received upon exercise of your option are subject to any right of first refusal that may be described in the Company’s bylaws in effect at such time the Company elects to exercise its right. 
 [Include Section 11 if the Committee has approved a Repurchase Option, exercisable by the Company, as part of it grant of Stock Awards for this particular
recipient.] [Requires discussion] 
 11. REPURCHASE OPTION. 
 (a) The Company shall have the right to purchase all Common Stock held by you or any unexercised Stock Award held by you which has been obtained pursuant to the Plan, together with any rights, securities or additional
stock that has been received pursuant to a stock dividend, stock split, reorganization or other similar transaction that has been received as a result of an option or Common Stock acquired pursuant thereto [Select Option A or B; Option A:]
Fair Market Value [or Option B:] the original purchase price of such Common Stock or Stock Award in the event (i) you terminate Continuous Service with the Company, or (ii) the Company so elects, in the event of an Acquisition.

 (b) [Option A: If the Committee desires the Repurchase Option to give the Company the right to repurchase the Common Stock and/or Stock
Award upon termination of Continuous Service at Fair Market Value, then use this alternative] The right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares within ninety (90) days of
termination of Continuous Service (or in the case of shares issued upon exercise of Stock Awards after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company
and you. 
 (c) [Option B: If the Committee desires the Repurchase Option to give the Company the right to repurchase the Common Stock
and/or Stock Award upon 
  

 4 

 termination of Continuous Service at the original purchase price, then use this alternative]. The right to
repurchase at the original purchase price shall lapse at the rate of twenty percent (20%) of the shares per year over five (5) years from the date the Stock Award is granted (without respect to the date the Stock Award was exercised or
became exercisable) and (ii) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares within ninety (90) days of termination of Continuous Service (or in the case of shares issued
upon exercise of Stock Awards after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to by the Company and you. 
 (d) If the Company desires to purchase the Common Stock or Stock Awards held by an employee as set forth in this Section, then the Company shall provide
written notice to you at your last known address within 120 days after the termination of your employment, or at least 30 days prior to an Acquisition. 
 (e) The Board of Directors may assign the Company’s repurchase option under this Section to any person selected by the Board of Directors, including one or more of the shareholders of the Company. 
 (f) The repurchase option set forth in this Section shall terminate upon the consummation of an underwritten public offering of the Company’s Common
Stock registered under the Securities Act. 
 12. OPTION NOT A SERVICE CONTRACT. Your option is not an employment or service contract, and
nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in your
option shall obligate the Company or an Affiliate, their respective shareholders, Boards of Directors, Officers or Employees to continue any relationship that you might have as a Director or Consultant for the Company or an Affiliate. 
 13. WITHHOLDING OBLIGATIONS. 
 (a) At the
time your option is exercised, in whole or in part, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for
(including by means of a “cashless exercise” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state,
local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with your option. 
 (b) Upon
your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable conditions or restrictions of law, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the
exercise of your option a number of whole shares having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law. If the date of determination of any tax
withholding obligation is deferred to a 
  

 5 

 date later than the date of exercise of your option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to
accelerate the determination of such tax withholding obligation to the date of exercise of your option. Notwithstanding the filing of such election, shares shall be withheld solely from fully vested shares of Common Stock determined as of the date
of exercise of your option that are otherwise issuable to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility. 
 (c) Your option is not exercisable unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, you may not be
able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares or release such shares from any escrow provided for herein. 
 14. NOTICES. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 
 15. GOVERNING PLAN DOCUMENT. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and
is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your option and those of the Plan, the
provisions of the Plan shall control. 
  

 6 

 ATTACHMENT II 
 2005 EQUITY INCENTIVE PLAN 
  

 1 

 ATTACHMENT III 
 NOTICE OF EXERCISE 
  

	AER	Ventures, Inc. 

 6197 Cornerstone Court E.

 Suite 108 

			
	 San Diego, CA 92121
	  	 Date of Exercise:
                        

 Ladies and Gentlemen: 
 This constitutes notice under my stock option that I elect to purchase the number of shares for the price set forth below. 
  

					
	 Type of option (check one):
	  	Incentive  ̈	 	Nonstatutory  ̈
		
	 Stock option dated:
	  	________
		
	 Number of shares as to which option is exercised:
	  	________
		
	 Certificates to be issued in name of:
	  	________
		
	 Total exercise price:
	  	$_______
		
	 Cash payment delivered herewith:
	  	$_______
		
	 Value of              shares of AER Ventures, Inc. common stock delivered
herewith(1):
	  	$_______

 By this exercise, I agree (i) to provide such additional documents as you may require
pursuant to the terms of the 2005 Equity Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of your withholding obligation, if any, relating to the exercise of this option, and (iii) if this
exercise relates to an incentive stock option, to notify you in writing within fifteen (15) days after the date of any disposition of any of the shares of Common Stock issued upon exercise of this option that occurs within two (2) years
after the date of grant of this option or within one (1) year after such shares of Common Stock are issued upon exercise of this option. 
 (1) Shares must meet the public trading requirements set forth in the option. Shares must be valued in accordance with the terms of the option being exercised, must have been 
  

 2 

 owned for the minimum period required in the option, and must be owned free and clear of any liens, claims, encumbrances
or security interests. Certificates must be endorsed or accompanied by an executed assignment separate from certificate. 
 I hereby make the
following certifications and representations with respect to the number of shares of Common Stock of the Company listed above (the “Shares”), which are being acquired by me for my own account upon exercise of the Option as set forth above:

 I acknowledge that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and
are deemed to constitute “restricted securities” under Rule 701 and “control securities” under Rule 144 promulgated under the Securities Act. I warrant and represent to the Company that I have no present intention of
distributing or selling said Shares, except as permitted under the Securities Act and any applicable state securities laws. 
 I further
acknowledge that I will not be able to resell the Shares for at least ninety days (90) after the stock of the Company becomes publicly traded (i.e., subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934) under Rule 701 and that more restrictive conditions apply to affiliates of the Company under Rule 144. 
 I further
acknowledge that all certificates representing any of the Shares subject to the provisions of the Option shall have endorsed thereon appropriate legends reflecting the foregoing limitations, as well as any legends reflecting restrictions pursuant to
the Company’s Articles of Incorporation, Bylaws and/or applicable securities laws. 
 I further agree that, if required by the Company
(or a representative of the underwriters) in connection with the first underwritten registration of the offering of any securities of the Company under the Securities Act, I will not sell or otherwise transfer or dispose of any shares of Common
Stock or other securities of the Company during such period (not to exceed one hundred eighty (180) days) following the effective date of the registration statement of the Company filed under the Securities Act as may be requested by the
Company or the representative of the underwriters. I further agree that the Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such period. 
  

	
	Very truly yours,
	
	 By:

	
	 Name:

  

 3

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