Document:

Exhibit 10.10

                           STOCK REPURCHASE AGREEMENT

                This Stock Repurchase Agreement (the "AGREEMENT") is made and
entered into effective as of June 4, 2002, by and between Passave Inc., a
Delaware corporation (separately or collectively with its subsidiary, Passave
Ltd., as applicable, "PASSAVE" or the "COMPANY"), Victor Vaisleib ("VV") and
Pshoo, LLC ("PSHOO" or the "SHAREHOLDER").

                                    RECITALS

                A. Passave and certain investors (the "INVESTORS"), have entered
into a Stock Purchase Agreement and related agreements (the "INVESTMENT
AGREEMENTS"), pursuant to which the Investors shall purchase Series B Preferred
Stock of the Company (the "INVESTMENT"), under the terns set forth therein.

                B. Following the consummation of the Investment (the "CLOSING"),
VV (holding his Shares via Pshoo will be the beneficial owner of such amount of
shares of Common Stock of Passave as set forth opposite his signature herein
(the "SHARES").

                C. Following the Closing, VV will continue to be employed by
Passave.

                D. As an inducement for the Investors to consummate the
Investment, the Investors desire VV to, and VV is willing to, subject the
Unvested Shares (as defined below) to repurchase by the Company, subject to the
terms and conditions provided herein.

                NOW, THEREFORE, in consideration of the premises and mutual
covenants and agreements hereinafter set forth, the parties hereto, intending to
be legally bound, hereby agree as follows:

1. VESTING; COMPANY RIGHT TO REPURCHASE.

          1.1 VESTING. Upon the Closing, twenty-five percent (25%) of the Shares
will be deemed "Vested" and fully owned by the Shareholder, and the Company
shall have no right with respect thereto. The remaining seventy-five percent
(75%) of the Shares will be deemed "Unvested." Although all of the Shares
(whether Vested or Unvested) will entitle the Shareholder to all of the rights
accorded to a holder of Common Stock of Passave Inc. (including the right to
cash dividends, if any, and the right to vote such Shares), the Unvested Shares
(as defined in Section 1.5 below) will remain subject to repurchase pursuant to
Section 1.3. The Unvested Shares shall become Vested Shares in equal portions on
a quarterly basis over the forty-eight (48) month period following the Closing,
beginning on June 4, 2002.

          1.2 ESCROW. As security for the faithful performance of this
Agreement, Shareholder agrees to deliver such certificate(s) together with stock
power in the form attached hereto as EXHIBIT A, executed by Stockholder (with
the date and number of Shares left blank), to Naschitz, Brandes & Co., Israeli
counsel to the Company ("ESCROW AGENT"); said documents are to be held by the
Escrow Agent pursuant to the Joint Escrow Instructions of the Company and the
Stockholder as set forth in EXHIBIT B hereto and incorporated herein by this
reference, which instructions shall also be delivered to the Escrow Agent.

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          1.3 PASSAVE'S RIGHT TO REPURCHASE UNVESTED SHARES.

              (a) In the event that (i) The Company terminates VV's employment
with the Company for Cause; or (ii) VV resigns or voluntarily departs from his
employment with Passave for any reason other than Good Reason (each, a "Trigger
Event"), then, for a period of thirty (30) days after the Trigger Event, the
Company shall have the right, but not an obligation, to repurchase all of the
Shares owned or held by VV and/or the Shareholder or any Permitted Transferee
thereof that remain Unvested as of the date of such Trigger Event, for a price
equal to the par value of such Unvested Shares.

              (b) In the event that the Company terminates VV's employment with
the Company for any reason other than for Cause, then, for a period of thirty
(30) days after the date of termination of employment, the Company shall have a
right, but not an obligation, to repurchase fifty percent (50%) of the Unvested
Shares owned or held by the Shareholder, and/or VV, or any Permitted Transferee
thereof, that remain Unvested on the date of such termination, for a price equal
to the par value of such Unvested Shares (such exercise by the Company of its
right to repurchase Shares pursuant to this Sections 1.3(a) and 1.3(b) herein, a
"REPURCHASE") and the balance of the shares (i.e., the Shares that are not
subject to a Repurchase) shall immediately and automatically vest, PROVIDED that
the Repurchase right granted under this Subsection 1.3(b) is approved by at
least five (5) out of the six (6) members of the Board of Directors of the
Company.

              (c) The Repurchase shall be performed by the Company by written
notice to VV. The Company shall become the legal and beneficial owner of the
Shares being repurchased and all rights and interest therein or related thereto,
and the Company shall have the right to transfer to its own name the number of
Unvested Shares being repurchased by the Company, without further action by VV.

          1.4 ACCELERATED VESTING OF SHARES. All of VV's Unvested Shares shall
immediately and automatically Vest and no longer be subject to repurchase by the
Company pursuant to Section 1.3 of this Agreement, upon the termination of VV's
employment with the Company (i) by the Company, for any reason other than for
Cause, and other than as set forth in Section 13(b), (ii) by VV for Good Reason,
at any time within thirty (30) days of the occurrence of the event that
constitutes such Good Reason, or (iii) due to death or disability.

          1.5 CHANGE OF CONTROL.

              1.5.1 In the event of a Change of Control, in which the
consideration received by the stockholders of the Company is OTHER THAN (i)
cash, or (ii) stock of a corporation which is actively traded on an active
public market, any Unvested Shares which are assumed or substituted by shares
covering the stock of a successor entity, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kinds of shares or units and
exercise prices, shall continue in the manner and under the terms so provided.
The Unvested Shares shall be considered assumed if, the surviving entity assumes
this agreement and if following consummation of the Change of Control, the
Unvested Shares immediately prior to the consummation of the Change of Control,
are replaced by the consideration (whether shares, or other securities or
property) received in the transaction by the Shareholder of the Company for

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each share held on the effective date of the transaction (and if shareholders
were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares);

          1.5.2 In the event of a Change of Control in which the consideration
received by the stockholders of the Company is OTHER THAN (i) cash, or (ii)
stock of a corporation which is actively traded on an active public market, AND
VV's employment is terminated by the Company for any reason other than Cause
within nine (9) months after the Change of Control, then All of VV's Unvested
Shares shall immediately and automatically Vest and no longer be subject to
repurchase by the Company pursuant to Section 1.3 of this Agreement.

          1.5.3 In the event of a Change of Control in which the consideration
received by the stockholders of the Company is (i) cash, or (ii) stock of a
corporation which is actively traded on an active public market, then All of
VV's Unvested Shares shall immediately and automatically Vest and no longer be
subject to repurchase by the Company pursuant to Section 1.3 of this Agreement.

          1.5.4 "Change of Control" shall mean (A) the acquisition of the
Company by another entity by means of any transaction or series of related
transactions (including, without limitation, any reorganization, merger or
consolidation); or (B) a sale of all or substantially all of the assets of the
Corporation; unless in each case, the Company's stockholders of record as
constituted immediately prior to such acquisition or sale will, immediately
after such acquisition or sale (by virtue of securities issued as consideration
for the Corporation's acquisition or sale or otherwise) hold at least fifty
percent (50%) of the voting power of the surviving or acquiring entity.

          1.6 STOCK SPLITS, STOCK DIVIDENDS, ETC. Any shares of capital stock of
Passave received by VV with respect to the Unvested Shares as the result of any
stock dividend, stock split, recapitalization or other similar event, shall be
considered "Unvested Shares" for all purposes of this Agreement and shall be
subject to the same vesting schedule as VV's Unvested Shares with respect to
which they were received.

2. TRANSFER OF UNVESTED SHARES.

          2.1 PROHIBITED AND PERMITTED TRANSFERS. In addition to any other
limitation on Transfer (as defined below), VV may not Transfer any Unvested
Shares, or any interest therein, except to a Permitted Transferee and as
expressly provided in this Section 2, and in any event only after compliance
with the specific limitations and conditions set forth in this Section 2 and all
applicable securities laws. Any purported Transfer other than a Permitted
Transfer is void and is of no effect, and no purported transferee thereof will
be recognized as a holder of the Unvested Shares for any purpose whatsoever.
Should such a Transfer purport to occur, Passave may refuse to carry out the
Transfer on its books, set aside the Transfer, or exercise any other legal or
equitable remedy.

          2.2 CONDITIONS TO TRANSFER. It shall be a condition to any Permitted
Transfer that:

                    (1) The transferee of the Unvested Shares shall execute all
such documents as Passave reasonably may require to ensure that Passave's rights
under this

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Agreement are adequately protected with respect to such Unvested Shares,
including, without limitation, the transferee's agreement to be bound by all
terms and conditions of this Agreement, as if he, she or it were the original
holder of such Unvested Shares; and

                    (2) Passave is reasonably satisfied that such Transfer
complies in all respects with the requirements imposed by applicable securities
laws and regulations.

3.       CERTAIN DEFINITIONS. For purposes of this Agreement:

          3.1 "Cause" shall mean the existence of:

                    (1) VV's conviction of or pleading guilty to any felony
which the board of directors of the Company reasonably believes had or will have
a material detrimental effect on the company's reputation or business; or

                    (2) VV's willful breach of his fiduciary duties to Passave
(it being understood that an action taken by VV which VV reasonably believes is
in the best interests of Passave shall not be deemed a "willful breach") or any
act of personal dishonesty in connection with his responsibilities to the
Company that is intended to result in substantial, direct or indirect, personal
enrichment of VV; or

                    (3) any material breach by VV of his Confidentiality and Non
Disclosure Agreement that is capable of being cured and is not so cured within
30 days following written notice by the Company specifying the breach; or (4)
continued non performance of VV's duties under his Employment Agreement that is
not cured within 30 days following receipt of notice by the Company specifying
such material non performance.

          3.2 "Good Reason" shall mean:

                    (1) without VV's express written consent, a significant
reduction of W's duties, position or responsibilities (as compared to the
position he currently holds at Passave), or the removal of VV from such position
and responsibilities unless he is provided with a comparable position (i.e., a
position of equal or greater organizational level, duties, authority,
compensation and status); provided that in the event that the Company hires a
new CEO, removal of VV from his position to a suitable position or a change of
title that comply with the above shall not be deemed a significant reduction in
VV's position and responsibilities; or

                    (2) a material reduction in VV's level of compensation,
other than a reduction due to lack of financial resources of the Company that is
effected with respect to all Company employees.

          3.3 "Permitted Transfer" shall mean (i) a Transfer by will or under
laws of descent and distribution; or (ii) a Transfer by a holder of the Shares
or W (the "Transferor") to his ancestors, descendants, siblings or spouse, or to
a trust, partnership, limited liability company, custodianship or other
fiduciary account for the benefit of the Transferor and/or such ancestors,
descendants or spouse, including any Transfer in the form of a distribution from
any such trust,

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partnership, limited liability company, custodianship or other fiduciary account
to any of the foregoing permitted beneficial owners or beneficiaries thereof.

          3.4 "Permitted Transferee" shall mean the recipient of a Permitted
Transfer.

          3.5 "Transfer" shall mean a voluntary or involuntary sale, assignment,
transfer, conveyance, pledge, hypothecation, encumbrance, disposal, loan, gift,
attachment or levy of the Unvested Shares.

4. STOP-TRANSFER NOTICES. Stockholder agrees that, in order to ensure compliance
with the restrictions referred to herein, the Company may issue appropriate
"stop transfer" instructions to its transfer agent, if any, and that, if the
Company transfers its own securities, it may make appropriate notations to the
same effect in its own records.

5. REFUSAL TO TRANSFER. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of
any of the provisions of this Agreement or (ii) to treat as owner of such Shares
or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such Shares shall have been so transferred.

6. MISCELLANEOUS.

          6.1 ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties in respect of the subject matter hereof, and supersedes all prior
negotiations and understandings between the parties with respect to such subject
matter.

          6.2 LEGENDS. Any stock certificates representing the Unvested Shares
shall be legended at the request of Passave with the following legend:

                  THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
                  CERTAIN RESTRICTIONS UPON TRANSFER AND RIGHTS OF REPURCHASE AS
                  SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
                  SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF
                  THE COMPANY.

6.3 REPRESENTATIONS AND WARRANTIES. Shareholder represents and warrants that
this Agreement is a legal, valid and binding obligation, enforceable against the
Shareholder in accordance with its terms.

6.4 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and
construed according to the laws of the State of Israel, without regard to the
conflict of laws provisions thereof. Any dispute arising under or in relation to
this Agreement shall be resolved in the competent court for the Tel Aviv-Jaffa
district, and each of the parties hereby submits irrevocably to the exclusive
jurisdiction of such court.

6.5 INVESTMENT. In the event the Investment is not consummated and the
Investment Agreements are terminated for any reason in accordance with their
terms, this Agreement shall be null and void.

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<PAGE>

6.6 SEVERABILITY. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, then the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

6.7 BINDING EFFECT AND ASSIGNMENT. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but, except as otherwise
specifically provided herein, neither this Agreement nor any of the rights,
interests or obligations of the parties hereto may be assigned by either of the
parties hereto without prior written consent of the other party hereto.

6.8 AMENDMENTS AND MODIFICATION. This Agreement may not be modified, amended,
altered or supplemented except upon the execution and delivery of a written
agreement executed by the parties hereto.

6.9 COUNTERPARTS. This Agreement may be executed in several counterparts, each
of which shall be an original, but all of which together shall constitute one
and the same agreement.

6.10 EFFECT OF HEADINGS. The section headings herein are for convenience only
and shall not affect the construction or interpretation of this Agreement.

6.11 NOTICES. All notices, requests, claims, demands and other communications
hereunder shall be in writing and sufficient if delivered in person, by cable,
telegram, telex or telecopy, or sent by mail (registered or certified mail,
postage prepaid, return receipt requested) or overnight courier (prepaid) to the
respective parties as follows:

                  If to Passave:            Passave Inc., C/o Passave Ltd.
                                            7 Rival St., Tel Aviv Israel
                                            Fax:
                                            Tel:

                  If to VV:                 Victor Vaisleib or Pshoo, LLC
                                            Rotem 31, Netania, Israel

                  With a copy to:           Naschitz, Brandes & Co.
                                            5 Tuval Street
                                            Tel Aviv, Israel 67897
                                            Facsimile No.:  (972-3) 623-5000
                                            Attn: Sharon Amir

                                       6

<PAGE>

                IN WITNESS WHEREOF, the parses have caused this Stock Repurchase
Agreement to be duly executed on the date and year first above written.

Passave Inc.

By: /S/ ARIEL MAISLOS
---------------------
Name:  Ariel Maislos
Title: President

Victor Vaisleib               Number of Shares of Common Stock of Passave Inc.:
/S/ VICTOR VAISLEIB           10,510

Pshoo, LLC

By: /S/ VICTOR VAISLEIB
-----------------------
Name:  Victor Vaisleib
Title: President

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<PAGE>

                                    EXHIBIT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED I, __________________________, hereby sell, assign and
transfer unto ______________________________________________________________,
(______) shares of the Common Stock of Passave Inc. standing in my name of the
books of said corporation represented by Certificate No. _________ herewith and
do hereby irrevocably constitute and appoint _________________________ to
transfer the said stock on the books of the within named corporation with full
power of substitution in the premises.

This Stock Assignment may be used only in accordance with the Stock Repurchase
Agreement between Passave Inc. and the undersigned dated as of May 30, 2002.

Dated: _____________________________________
       Signature:  /S/ VICTOR VAISLEIB

INSTRUCTIONS: Please do not fill in any blanks other than the signature line.
The purpose of this assignment is to enable the Company to exercise its
Repurchase Option as set forth in the Agreement, without requiring additional
signatures on the part of the Stockholder.

                                    EXHIBIT B

                            JOINT ESCROW INSTRUCTIONS

Naschitz, Brandes & Co.,
Israeli counsel to Passave Inc.
Attn.  Sharon Amir, Adv.

Dear Sir:

As Escrow Agent for both Passave Inc. (the "Company") and the undersigned
purchaser of stock of the Company (the "Purchaser"), you are hereby authorized
and directed to hold the documents delivered to you pursuant to the terms of
that certain Restricted Stock Purchase Agreement ("Agreement") between the
Company and the undersigned, in accordance with the following instructions:

In the event the Company and/or any assignee of the Company (referred to
collectively for convenience herein as the "Company") exercises the Company's
repurchase option set forth in the Agreement (the "Repurchase Option"), the
Company shall give to Purchaser and you a written notice specifying the number
of shares of stock to be purchased, the purchase price, and the time for a
closing hereunder, which shall not be prior to 21 days from the delivery of such

<PAGE>

notice, at the principal office of the Company. Purchaser and the Company hereby
irrevocably authorize and direct you to close the transaction contemplated by
such notice in accordance with the terms of said notice, subject only to the
provisions below with respect to dispute resolution.

At the closing, you are directed (a) to date the stock assignments necessary for
the transfer in question, (b) to fill in the number of shares being transferred,
and (c) to deliver same, together with the certificate evidencing the shares of
stock to be transferred, to the Company or its assignee, against the
simultaneous delivery to you of the purchase price (by cash, a check, or some
combination thereof) for the number of shares of stock being purchased pursuant
to the exercise of the Company's Repurchase Option.

Purchaser irrevocably authorizes the Company to deposit with you any
certificates evidencing shares of stock to be held by you hereunder and any
additions and substitutions to said shares as defined in the Agreement.
Purchaser does hereby irrevocably constitute and appoint you as Purchaser's
attorney-in-fact and agent for the term of this escrow to execute with respect
to such securities all documents necessary or appropriate to make such
securities negotiable and to complete any transaction herein contemplated,
including but not limited to the filing with any applicable state blue sky
authority of any required applications for consent to, or notice of transfer of,
the securities. Subject to the provisions of this paragraph 3, Purchaser shall
exercise all rights and privileges of a shareholder of the Company while the
stock is held by you.

Upon written request of the Purchaser, but no more than once per calendar year,
unless the Company's Repurchase Option has been exercised, you will deliver to
Purchaser a certificate or certificates representing so many shares of stock as
are not then subject to the Company's Repurchase Option. Within ninety (90) days
after cessation of Purchaser's continuous employment by or services to the
Company, or any parent or subsidiary of the Company, you will deliver to
Purchaser a certificate or certificates representing the aggregate number of
shares held or issued pursuant to the Agreement and not purchased by the Company
or its assignees pursuant to exercise of the Company's Repurchase, Option.

If at the time of termination of this escrow you should have in your possession
any documents, securities, or other property belonging to Purchaser, you shall
deliver all of the same to Purchaser and shall be discharged of all further
obligations hereunder.

Your duties hereunder may be altered, amended, modified or revoked only by a
writing signed by all of the parties hereto.

You shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by you to be
genuine and to have been signed or presented by the proper party or parties. You
shall not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith,
and any act done or omitted by you pursuant to the advice of your own attorneys
shall be conclusive evidence of such good faith.

You are hereby expressly authorized to disregard any and all warnings given by
any of the parties hereto or by any other person or corporation, excepting only
orders or process of courts of

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<PAGE>

law and are hereby expressly authorized to comply with and obey orders,
judgments or decrees of any court. In case you obey or comply with any such
order, judgment or decree, you shall not be liable to any of the parties hereto
or to any other person, firm or corporation by reason of such compliance,
notwithstanding any such order, judgment or decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without
jurisdiction.

You shall not be liable in any respect on account of the identity, authorities
or rights of the parties executing or delivering or purporting to execute or
deliver the Agreement or any documents or papers deposited or called for
hereunder.

You shall not be liable for the outlawing of any rights under the Statute of
Limitations with respect to these Joint Escrow Instructions or any documents
deposited with you.

Your responsibilities as Escrow Agent hereunder shall terminate if you shall
cease to be an agent of the Company or if you shall resign by written notice to
each party. In the event of any such termination, the Company shall appoint a
successor Escrow Agent.

If you reasonably require other or further instruments in connection with these
Joint Escrow Instructions or obligations in respect hereto, the necessary
parties hereto shall join in furnishing such instruments.

In the event that during the 21 day period described above, the Purchaser
notifies you that it disputes the Company's exercise of the Repurchase Option,
or should you otherwise learn of any dispute with respect to the delivery and/or
ownership or right of possession of the securities held by you hereunder, you
are authorized and directed to retain in your possession without liability to
anyone all or any part of said securities until such disputes shall have been
settled either by mutual written agreement of the parties concerned or by a
final order, decree or judgment of a court of competent jurisdiction after the
time for appeal has expired and no appeal has been perfected, but you shall be
under no duty whatsoever to institute or defend any such proceedings.

Any notices, requests, claims, demands and other communications hereunder shall
be in writing and sufficient if delivered in person, by cable, telegram, telex
or telecopy, or sent by mail (registered or certified mail, postage prepaid,
return receipt requested) or overnight courier (prepaid) to the respective
parties as follows:

                  COMPANY:                  Passave Inc.
                                            C/o Passave Ltd.
                                            Beit Amgar, 7 Rival St
                                            Tel Aviv, Israel
                                            Tel:  972-3-6887272
                                            Facsimile: (972-3-6887062)

                  PURCHASER:                Pshoo, LLC.
                                            C/o Victor Vaiseib
                                            31 Rotem
                                            Netania, Israel

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<PAGE>

                  ESCROW AGENT:
                                            Naschitz, Brandes & Co.
                                            5 Tuval St.
                                            Tel Aviv
                                            Tel: 03-6235090
                                            Fax: 03-6235021

By signing these Joint Escrow Instructions, you become a party hereto only for
the purpose of said Joint Escrow Instructions; you do not become a party to the
Agreement.

This instrument shall be binding upon and inure to the benefit of the parties
hereto, and their respective successors and permitted assigns.

The Repurchase Agreement is incorporated herein by reference. These Joint Escrow
Instructions, the Repurchase Agreement (including the exhibits referenced
therein) constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Escrow Agent, the Purchaser and the Company with respect to
the subject matter hereof, and may not be modified except by means of a writing
signed by the Escrow Agent, the Purchaser and the Company.

These Joint Escrow Instructions shall be governed by, and construed and enforced
in accordance with, the laws of Israel.

                                         Very truly yours,

                                         Passave Inc.

                                         By: ARIEL MAISLOS  /S/ ARIEL MAISLOS

                                         Title: PRESIDENT

PURCHASER:

Pshoo, LLC

By: /S/ VICTOR VAISLEIB
-----------------------
Victor Vaisleib
Title:  President

Address:

/S/ NASCHITZ, BRANDES & CO.
---------------------------
Naschitz, Brandes & Co., Israeli
counsel to Passave Inc.

                                       11Exhibit 10.1

                               INDEMNITY AGREEMENT

          This Indemnity Agreement ("Agreement"), dated as of ______________, is
made by and between LION, Inc., a Washington Corporation (the "Company), and
_____________ (the "Indemnitee").

                                    RECITALS

          A. The Company is aware that competent and experienced persons are
increasingly reluctant to serve as directors and officers of corporations unless
they are protected by comprehensive liability insurance or indemnification, due
to increased exposure to litigation costs and risks resulting from their service
to such corporations, and due to the fact that the exposure frequently bears no
reasonable relationship to the compensation of such directors or officers.

          B. The statutes and judicial decisions regarding the duties of
directors and officers are often difficult to apply, ambiguous, or conflicting,
and therefore fail to provide such directors and officers with adequate,
reliable knowledge of legal risks to which they are exposed or information
regarding the proper course of action to take.

          C. Plaintiffs often seek damages in such large amounts and the costs
of litigation may be so enormous (whether or not the case is meritorious), that
the defense and/or settlement of such litigation is often beyond the personal
resources of directors and officers.

          D. The Company believes that it is unfair for its directors and
officers and the directors and officers of its subsidiaries to assume the risk
of huge judgments and other expenses which may occur in cases in which the
director or officer received no personal profit and in cases where the director
or officer was not culpable.

          E. The Company recognizes that the issues in controversy in litigation
against a director or officer of a corporation such as the Company or its
subsidiaries are often related to the knowledge, motives, and intent of such
director or officer, that he or she is usually the only witness with knowledge
of the essential facts and exculpating circumstances regarding such matters and
that the long period of time which usually elapses before the trial or other
disposition of such litigation often extends beyond the time the director or
officer can reasonably recall such matters and may extend beyond the normal time
for retirement of such director or officer with the result that he or she, after
retirement (or in the event of death, his or her spouse, heirs, executors or
administrators), may be faced with limited ability and undue hardship in
maintaining an adequate defense, which may discourage such director or officer
from serving in that position.

          F. Based upon their experience as business managers, the Board of
Directors of the Company (the "Board") has concluded that, to retain and attract
talented and experienced individuals to serve as directors and officers of the
Company and its subsidiaries and to encourage such individuals to take the
business risks necessary for the success of the Company

<PAGE>

and its subsidiaries, it is necessary for the Company to contractually indemnify
its directors and officers and the directors and officers of its subsidiaries,
and to assume for itself maximum liability for expenses and damages in
connection with claims against such directors and officers in connection with
their service to the Company and its subsidiaries, and has further concluded
that the failure to provide such contractual indemnification could result in
great harm to the Company and its subsidiaries and the Company's shareholders.

          G. The Company has adopted Articles of Incorporation (the "Articles")
providing for indemnification of the officers, directors, agents and employees
of the Company as contemplated by the Washington Business Corporation Act (the
"Statute").

          H. Section 23B.08.510 and .570 of the Statute, under which the Company
is organized ("Section 510/570"), empowers the Company to indemnify persons who
serve, at the request of the Company, as the directors, officers, employees or
agents of the Company or of other corporations or enterprises.

          I. The Articles specifically provide that the rights provided thereby
are not exclusive, and Section 510/570 contemplates that contracts may be
entered into between the Company and the members of the Board and its officers,
employees and agents with respect to indemnification of such persons.

          J. The Company desires and has requested the Indemnitee to serve or
continue to serve as a director or officer of the Company and/or one or more
subsidiaries of the Company free from undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more
subsidiaries of the Company.

          K. Indemnitee is willing to serve, or to continue to serve, the
Company, and/or one or more subsidiaries of the Company, provided that he or she
is furnished the indemnity provided for herein.

                                    AGREEMENT

          NOW THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

          1.        DEFINITIONS

          As used herein, the following terms shall have the following meanings:

          (a) AGENT. "Agent" of the Company means any person who is or was a
director, officer, employee or other agent of the Company or a Subsidiary (as
defined below); or is or was serving at the request of, for the convenience of,
or to represent the interests of the Company or a Subsidiary as a director,
officer, employee or agent of another foreign or domestic corporation,
partnership, joint venture, trust or other enterprise; or was a director,
officer, employee or agent of a foreign or domestic corporation which was a
predecessor corporation of the Company or a

                                       2
<PAGE>

Subsidiary, or is or was a director,
officer, employee or agent of another enterprise at the request of, for the
convenience of, or to represent the interests of such predecessor corporation.

          (b) EXPENSES. "Expenses" include all direct and indirect costs of any
type or nature whatsoever (including, without limitation, all attorneys' fees
and related disbursements, other out-of-pocket costs and reasonable compensation
for time spent by the Indemnitee for which he or she is not otherwise
compensated by the Company or any third party) actually and reasonably incurred
by the Indemnitee in connection with either the investigation, defense or appeal
of a Proceeding (as defined below) or establishing or enforcing a right to
indemnification under this Agreement, Section 510/570 or otherwise; provided,
however, that expenses shall not include any judgments, fines, ERISA excise
taxes or penalties or amounts paid in settlement of a Proceeding.

          (c) PROCEEDING. "Proceeding" means any threatened, pending, or
completed action, suit or other proceeding, whether civil, criminal,
administrative, investigative or any other type whatsoever.

          (d) SUBSIDIARY. "Subsidiary" means any corporation of which more than
50% of the outstanding voting securities is owned directly or indirectly by the
Company, by the Company and one or more other subsidiaries, or by one or more
other subsidiaries.

          2. AGREEMENT TO SERVE. The Indemnitee agrees to serve and/or continue
to serve as a director or officer of the Company, at its will, (or under
separate agreement, if such agreement exists), in the capacity Indemnitee
currently serves as an agent of the Company, so long as the Indemnitee is duly
appointed or elected and qualified in accordance with the applicable provisions
of the bylaws of the Company or any Subsidiary or until such time as the
Indemnitee tenders his or her resignation in writing; provided however, that
nothing contained in this Agreement is intended to create any right to continued
employment by Indemnitee.

          3. LIABILITY INSURANCE.

          (a) MAINTENANCE OF D&O INSURANCE. The Company hereby covenants and
agrees that, so long as the Indemnitee shall continue to serve as a director or
officer of the Company and thereafter so long as the Indemnitee shall be subject
to any possible proceeding by reason of the fact that Indemnitee was an Agent of
the Company, the Company, subject to Section 3(c), shall use its best efforts,
consistent with prudent business practice, to obtain and maintain in full force
and effect directors' and officers' liability insurance ("D&O Insurance") of
which the Indemnitee will be an insured, in reasonable amounts from established
and reputable insurers.

          (b) RIGHTS AND BENEFITS. In all policies of D&O Insurance, the
Indemnitee shall be named as an insured in such a manner as to provide the
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company's directors, if the Indemnitee is a director; or of the
Company's officers, if the Indemnitee is not a director of the Company but is an
officer; or of the Company's key employees, if the Indemnitee is not a director
or officer but is a key employee.

                                       3
<PAGE>

          (c) LIMITATION ON REQUIRED MAINTENANCE OF D&O INSURANCE.
Notwithstanding the foregoing, the Company shall have no obligation to obtain or
maintain D&O Insurance if the Company determines in good faith that such
insurance is not reasonably available, the premium costs for such insurance are
disproportionate to the amount of coverage provided, the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient
benefit, or the Indemnitee is covered by similar insurance maintained by a
Subsidiary.

          4. MANDATORY INDEMNIFICATION. Subject to Section 9, if the Indemnitee
is a person who was or is a party or is threatened to be made a party to any
Proceeding by reason of the fact that the Indemnitee is or was an Agent of the
Company, or by reason of anything done or not done by the Indemnitee in any such
capacity, the Company shall indemnify and hold harmless the Indemnitee to the
fullest extent permitted by applicable law, as then in effect, without the
requirement of any further approval or finding by the shareholders, the Board or
independent legal counsel, against all Expenses, liabilities and losses
(including, but not limited to, judgments, fines, ERISA excise taxes or
penalties, and amounts paid in settlement) actually and reasonably incurred by
the Indemnitee in connection with the investigation, defense, settlement or
appeal of the Proceeding. The Company shall be obligated to provide such
indemnification even if the Indemnitee should be deceased prior to, during the
pendency of, or after completion of any Proceeding to which such indemnification
applies.

          5. PARTIAL INDEMNIFICATION. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of any Expenses, liabilities or losses of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes or
penalties, and amounts paid in settlement) actually and reasonably incurred by
the Indemnitee in connection with the investigation, defense, settlement or
appeal of a Proceeding but not entitled, however, to indemnification for all of
the total amount thereof, the Company shall nevertheless indemnify the
Indemnitee for that portion thereof to which the Indemnitee is entitled.

          6. MANDATORY ADVANCEMENT OF EXPENSES. Subject to Section 9(f) below,
the Company shall advance all reasonable expenses incurred by the Indemnitee in
connection with the investigation, defense, settlement or appeal of any
Proceeding to which the Indemnitee is a party or is threatened to be made a
party by reason of the fact that the Indemnitee is or was an Agent of the
Company. The Indemnitee hereby undertakes to repay such amounts advanced only
if, and to the extent that, it shall ultimately be determined pursuant to
Section 8 that the Indemnitee is not entitled to be indemnified by the Company
as authorized hereby. The advances to be made hereunder shall be paid by the
Company to the Indemnitee within twenty (20) days following delivery of a
written request therefor by the Indemnitee to the Company. In the event that the
Company fails to pay expenses as incurred by the Indemnitee as required by this
paragraph, Indemnitee may seek mandatory injunctive relief from any court having
jurisdiction to require the Company to pay expenses as set forth in this
paragraph. If Indemnitee seeks mandatory injunctive relief pursuant to this
paragraph, it shall not be a defense to enforcement of the Company's obligations
as set forth in this paragraph that Indemnitee has an adequate remedy at law for
damages.

                                       4
<PAGE>

          7. NOTICE AND OTHER INDEMNIFICATION PROCEDURES.

          (a) NOTICE BY INDEMNITEE. Promptly after receipt by the Indemnitee of
notice of the commencement of, or the threat of commencement of, any Proceeding,
the Indemnitee shall, if the Indemnitee believes that indemnification with
respect thereto may be sought from the Company under this Agreement, notify the
Company of the commencement or threat of commencement thereof.

          (b) NOTICE BY COMPANY. If, at the time of receipt of a notice of the
commencement of a Proceeding pursuant to Section 7(a), the Company has D&O
Insurance in effect, the Company shall give prompt notice of the commencement of
such Proceeding to the insurers in accordance with the procedures set forth in
the respective policies. The Company shall thereafter take all necessary or
desirable action to cause such insurers to pay, on behalf of the Indemnitee, all
amounts payable as a result of such Proceeding in accordance with the terms of
such policies.

          (c) DEFENSE. If the Company shall be obligated to pay the Expenses of
any Proceeding against the Indemnitee, the Company, if appropriate, shall be
entitled to assume the defense of such Proceeding, with counsel approved by the
Indemnitee (which approval shall not be unreasonably withheld), upon the
delivery to the Indemnitee of written notice of its election so to do. After
delivery of such notice, approval of such counsel by the Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to the
Indemnitee under this Agreement for any fees of counsel subsequently incurred by
the Indemnitee with respect to the same Proceeding, provided that: (i) the
Indemnitee shall have the right to employ his or her counsel in any such
Proceeding at the Indemnitee's expense; and (ii) if (A) the employment of
counsel by the Indemnitee has been previously authorized by the Company, (B) the
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and the Indemnitee in the conduct of any such
defense, or (C) the Company shall not, in fact, have employed counsel to assume
the defense of such Proceeding, the fees and Expenses of Indemnitee's counsel
shall be at the expense of the Company.

          (d) CONFLICT OF INTEREST. The Company shall not be entitled to assume
the defense of any action, suit or Proceeding brought by or on behalf of the
Company or as to which the Indemnitee shall have reached the conclusion provided
for in Section 7(c)(ii)(B).

          8. DETERMINATION OF RIGHT TO INDEMNIFICATION

          (a) SUCCESSFUL DEFENSE. To the extent the Indemnitee has been
successful on the merits or otherwise in defense of any Proceeding referred to
in Section 4 or in the defense of any claim, issue or matter described therein,
the Company shall indemnify the Indemnitee against Expenses actually and
reasonably incurred by him or her in connection with the investigation, defense,
or appeal of such Proceeding.

          (b) OTHER SITUATIONS. In the event that Section 8(a) is inapplicable,
the Company shall also indemnify the Indemnitee unless, and only to the extent,
that it is determined by a forum described in Section 8(c) that the Indemnitee
has not met the applicable standard of

                                       5
<PAGE>

conduct required to entitle the Indemnitee to such indemnification. The
Indemnitee shall be presumed to be entitled to indemnification hereunder upon
submission of a written claim (and, in any action brought to enforce a claim for
expenses incurred in defending any Proceeding, in advance of its final
disposition) and thereafter the Company shall have the burden of proof to
overcome the presumption that the Indemnitee is not so entitled.

          (c) SELECTION OF FORUM. The Indemnitee shall be entitled to select the
forum in which the validity of the Company's claim under Section 8(b) that the
Indemnitee is not entitled to indemnification will be heard from among the
following:

                    (1) A quorum of the Board consisting of directors who are
not at the time parties to the Proceeding for which indemnification is being
sought;

                    (2) If a quorum cannot be obtained under (1) of this
subsection, by a majority vote of a committee duly designated by the Board, in
which designation directors who are parties may participate, consisting solely
of two or more directors who are not at the time parties to the Proceeding for
which indemnification is being sought;

                    (3) The shareholders of the Company (provided that shares
owned by or voted under the control of directors who are at the time parties to
the Proceeding may not be voted on the determination); or

                    (4) Special legal counsel (i) selected by the Board or its
committee in the manner prescribed in (1) or (2) of this subsection or (ii) if a
quorum of the Board cannot be obtained under (1) of this subsection and a
committee cannot be designated under (2) of this subsection, selected by
majority vote of the full Board, in which selection directors who are parties
may participate.

          (d) SUBMISSION TO FORUM. As soon as practicable, and in no event later
than thirty (30) days after written notice of the Indemnitee's choice of forum
pursuant to Section 8(c), the Company shall, at its own expense, submit to the
selected forum, in such manner as the Indemnitee or the Indemnitee's counsel may
reasonably request, its claim that the Indemnitee is not entitled to
indemnification; and the Company shall act in the utmost good faith to ensure
the Indemnitee a complete opportunity to defend against such claim.

          (e) APPLICATION TO COURT. If the forum listed in Section 8(c) selected
by the Indemnitee determines that the Indemnitee is entitled to indemnification
with respect to a specific Proceeding, such determination shall be final and
binding on the Company. If the forum listed in Section 8(c) selected by the
Indemnitee determines that the Indemnitee is not entitled to indemnification
with respect to a specific Proceeding, the Indemnitee shall have the right to
apply to the court in which that Proceeding is or was pending or any other court
of competent jurisdiction for the purpose of enforcing the Indemnitee's right to
indemnification pursuant to this Agreement.

          (f) EXPENSES RELATED TO THIS AGREEMENT. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the
Indemnitee against all

                                       6
<PAGE>

reasonable Expenses incurred by the Indemnitee in connection with any hearing or
Proceeding under this Section 8 involving the Indemnitee and against all
reasonable Expenses incurred by the Indemnitee in connection with any other
Proceeding between the Company and the Indemnitee involving the interpretation
or enforcement of the rights of the Indemnitee under this Agreement unless a
court of competent jurisdiction finds that each of the claims and/or defenses of
the Indemnitee in any such Proceeding was frivolous or made in bad faith.

          9. EXCEPTIONS. Any other provisions herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement to indemnify the Indemnitee for Expenses, liabilities or losses
of any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes or penalties, and amounts paid in settlement):

          (a) D&O INSURANCE. Which have been paid directly to the Indemnitee
pursuant to policy of D&O Insurance purchased and maintained by the Company; or

          (b) CERTAIN REMUNERATION. With respect to remuneration paid to the
Indemnitee if it shall be determined by a final judgment or other final
adjudication that such remuneration was in violation of law; or

          (c) CERTAIN STATUTORY CLAIMS. On account of any suit in which judgment
is rendered against the Indemnitee for an accounting of profits made from the
purchase or sale by the Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Securities Exchange Act of 1934 and
amendments thereto or similar provisions of any federal, state or local
statutory law; or

          (d) CERTAIN CONDUCT. On account of the Indemnitee's conduct which is
determined by the forum described in Section 8(c) or by a court pursuant to
Section 8(e) to have been intentional misconduct, a knowing violation of law or
RCW 23B.08.310 or any successor provision of Section 510/570, or a transaction
from which the Indemnitee derived benefit in money, property or services to
which the Indemnitee is not legally entitled, unless and only to the extent that
a court shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably entitled to indemnity for such amounts which the court
shall deem proper; or

          (e) COURT DECISION. In the event a determination has not been made by
the forum described in Section 8(c) or in the event of a determination by such
forum from which the Indemnitee has applied to a court pursuant to Section 8(e),
if a final decision by a court having jurisdiction in the matter shall determine
that such indemnification is not lawful; or

          (f) CLAIMS INITIATED BY INDEMNITEE. With respect to Proceedings or
claims initiated or brought voluntarily by the Indemnitee and not by way of
defense, except with respect to Proceedings brought to establish or enforce a
right to indemnification under this Agreement or any other statute or law or
otherwise as required under Section 510/570, but such indemnification or
advancement of Expenses may be provided by the Company in specific cases if the
Board finds it to be appropriate; or

                                       7
<PAGE>

          (g) LACK OF GOOD FAITH. With respect to any Proceeding instituted by
the Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such Proceeding was not made in good faith or was frivolous; or

          (h) UNAUTHORIZED SETTLEMENTS. For any amounts paid in settlement of
any action or claim effected without its written consent. The Company shall not
settle any action or claim in any manner which would impose any penalty or
limitation on the Indemnitee without the Indemnitee's written consent. Neither
the Company nor the Indemnitee will unreasonably withhold its, his or her
consent to any proposed settlement.

          10. NONEXCLUSIVITY. The provisions for indemnification and advancement
of Expenses set forth in this Agreement shall not be deemed exclusive of any
other rights which the Indemnitee may have under any provision of law, the
Company's Articles of Incorporation or Bylaws, the vote of the Company's
shareholders or disinterested directors, other agreements, or otherwise, both as
to action in the Indemnitee's official capacity and to action in another
capacity while occupying the position as an Agent of the Company, and the
Indemnitee's rights hereunder shall continue after the Indemnitee has ceased
acting as an Agent of the Company and shall inure to the benefit of the heirs,
executors and administrators of the Indemnitee.

          11. ENFORCEMENT. Any right to indemnification or advances granted by
this Agreement to Indemnitee shall be enforceable by or on behalf of Indemnitee
in any court of competent jurisdiction if (i) the claim for indemnification or
advances is denied, in whole or in part, or (ii) no disposition of such claim is
made within ninety (90) days after written request therefor. Indemnitee, in such
enforcement action, if successful in whole or in part, shall be entitled to be
paid also the expense of prosecuting Indemnitee's claim. It shall be a defense
to any action for which a claim for indemnification is made under this Agreement
(other than an action brought to enforce a claim for expenses pursuant to
Section 6 hereof, provided that the required undertaking has been tendered to
the Company) that Indemnitee is not entitled to indemnification because of the
limitations set forth in Section 9 hereof. Neither the failure of the Company
(including its Board of Directors or its shareholders) to have made a
determination prior to the commencement of such enforcement action that
indemnification of Indemnitee is proper in the circumstances, nor an actual
determination by the Company (including its Board of Directors or its
shareholders) that such indemnification is improper, shall be a defense to the
action or create a presumption that Indemnitee is not entitled to
indemnification under this Agreement or otherwise.

          12. SURVIVAL OF RIGHTS.

          (a) All agreements and obligations of the Company contained herein
shall continue during the period Indemnitee is an Agent of the Company and shall
continue thereafter so long as the Indemnitee shall be subject to any possible
claim or threatened, pending or completed action, suit or Proceeding, whether
civil, criminal, arbitrational, administrative or investigative, by reason of
the fact that Indemnitee was an Agent of the Company.

                                       8
<PAGE>

          (b) The Company shall require any successor to the Company (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business assets of the Company, expressly to assume and
agree to perform this Agreement in the same manner and to the same extent that
the Company would be required to perform if no such succession had taken place.

          13. INTERPRETATION OF AGREEMENT. It is understood that the parties
hereto intend this Agreement to be interpreted and enforced so as to provide
indemnification to the Indemnitee to the fullest extent now or hereafter
permitted by law.

          14. SEVERABILITY. If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(i) the validity, legality and enforceability of the remaining provisions of
this Agreement (including, without limitation, all portions of any paragraphs of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall
not in any way be affected or impaired thereby; and (ii) to the fullest extent
possible, the provisions of this Agreement (including, without limitation, all
portions of any paragraph of this Agreement containing any such provision held
to be invalid, illegal or unenforceable, that are not themselves invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, illegal or unenforceable and to give
effect to Section 13 hereof.

          15. MODIFICATION AND WAIVER. No supplement, modification or amendment
of this Agreement shall be binding unless executed in writing by both parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provision hereof (whether or not similar)
nor shall such waiver constitute a continuing waiver.

          16. NOTICES. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed duly given: (i) if
delivered by hand and receipted for by the party addressee; or (ii) if mailed by
certified or registered mail with postage prepaid, on the third business day
after the mailing date. Address for notice to either party is as shown on the
signature pages of this Agreement, or as subsequently modified by written
notice.

          17. GOVERNING LAW. This Agreement shall be governed exclusively by and
construed according to the laws of the State of Washington, as applied to
contracts between Washington residents entered into and to be performed entirely
within Washington.

          18. CONSENT TO JURISDICTION. The Company and the Indemnitee each
hereby irrevocably consent to the jurisdiction of the state and federal courts
in the State of Washington for all purposes in connection with any action or
proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state or
federal courts in the State of Washington.

          The parties hereto have entered into this Agreement effective as of
the date first above written.

                            [Signature Page Follows]

                                       9
<PAGE>

                                   LION, Inc.

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

                                   Address:
                                               4700-42nd Ave. SW,
                                               Suite 430 Seattle,
                                               WA 98116 Fax:
                                               206-577-1441

                                   INDEMNITEE

                                   ---------------------------------------------
                                   Print Name:

                                   Address:

SCHEDULE OF INDEMNITEES
-----------------------

John A. McMillan
J.C. Marshall
Griffith Straw
Sam Ringer
James Russo
Randall D. Miles
David Stedman
Steve Thomson
Chris Johnson
Charles Sern Clementson

                                       10

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