Document:

Exhibit
10.1

APPENDIX
A

ENTERprise informatics INC.

2007 STOCK INCENTIVE PLAN

1.                                      Purpose
of the Plan.

The purpose of the Plan is to enable the Company and
its Affiliates to attract, retain and motivate their Directors, Officers,
Employees and Consultants by providing for or increasing the proprietary
interests of such persons in the Company through the granting of Stock
Awards.  The Company expects that it will
benefit from the added interest that such persons will have in the welfare of
the Company and its Affiliates as a result of their proprietary interest in the
Company.

2.                                      Definitions.

(a)                                  Affiliate.  Affiliate means any Entity directly, or
indirectly through one or more intermediaries, controlling or controlled by
(but not under common control with) the Company.  Solely with respect to the granting of any
Incentive Stock Options, Affiliate of the Company 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)                                  Beneficial Owner.  The
term “beneficial owner” shall have the meaning given to such term in Rule
13d-3 and Rule 13d-5 under the Exchange Act (or any successor rules thereto).

(c)                                  Board.  Board means the Board of Directors
of the Company.

(d)                                  Change in Control. 
Change in Control means the occurrence, in a single transaction or in
a series of related transactions, of any one or more of the following events:

(i)                                    the sale,
exchange, lease or other disposition, in one or a series of related
transactions, of all or substantially all, of the assets of the Company to any “person”
or “group” (as such terms are defined in Sections 3(a)(9) and 13(d)(3) of the
Exchange Act) other than one or more of the Permitted Holders or any group
controlled by one or more of the Permitted Holders; or

(ii)                                any “person” or
“group” (as such terms are defined in Sections 3(a)(9) and 13(d)(3) of the
Exchange Act), other than one or more of the Permitted Holders or any group
controlled by one or more of the Permitted Holders, is or becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the total voting
power of the voting stock of the Company (or any Entity which controls the
Company or which is a successor to all or substantially all of the assets of
the Company), including by way of merger, consolidation, tender or exchange
offer or otherwise; or

(iii)                            either a merger
or consolidation in which the shareholders of the Company immediately prior to
the merger or consolidation fail to possess direct or indirect beneficial
Ownership of more than fifty percent (50%) of the voting power of the
securities of the surviving corporation (or if the surviving corporation is a
subsidiary of another Entity, then the required beneficial Ownership shall be
determined with respect to the securities of that Entity which controls the
surviving corporation and is not itself a subsidiary of any other Entity)
immediately following such transaction (for purposes of this clause 2(d)(iii),
any person who acquired securities of the Company prior to the occurrence of a
merger or consolidation in contemplation of such transaction and who
immediately following such

 1
 

transaction
possesses direct or indirect beneficial Ownership of at least ten percent (10%)
of the securities of the surviving corporation (or if the Company or the
surviving corporation is a subsidiary, then of the appropriate Entity as
determined above) shall not be included in the group of shareholders of the
Company immediately prior to such transaction).

(e)                                  Code.  Code means the Internal Revenue Code of
1986, as amended.

(f)                                    Committee.  Committee
means a committee of two or more members of the Board appointed by the
Board in accordance with Section 3(c).

(g)                                 Common Stock.  Common
Stock  means the common stock of the Company.

(h)                                 Company.  Company means Enterprise Informatics Inc., a
California corporation.

(i)                                    Consultant.  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 Directors who are not compensated by the Company for their services as
Directors, and the payment of a director’s fee by the Company for services as a
Director shall not cause a Director to be considered a “Consultant” for
purposes of the Plan.  For the purposes
of determining eligibility to participate in the Plan, the term Consultant
shall be clarified pursuant to the provisions of Section 5(d).

(j)                                    Continuous Service. 
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.  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 service with the Company or an
Affiliate, shall not terminate a 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 shall 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.  Notwithstanding the
foregoing, a leave of absence shall be treated as Continuous Service for
purposes of vesting only to such extent as may be provided in the Company’s
leave of absence policy or in the written terms of the Participant’s leave of
absence.

(k)                                Covered Employee.  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.

(l)                                    Director.  Director means a member of the Board of
Directors of the Company.

(m)                              Disability.  Disability means (i) before the Listing Date,
the inability of a person, in the opinion of a qualified physician acceptable
to the Company, to perform the major duties of that person’s position with the
Company or an Affiliate of the Company because of the sickness or injury of
that person and (ii) after the Listing Date, the permanent and total disability
of a person within the meaning of Section 22(e)(3) of the Code.

 2
 

(n)                                 Employee.  Employee means any person employed by the
Company or an Affiliate.  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.

(o)                                  Entity.  Entity means a corporation, partnership,
limited liability company, trust or other entity.

(p)                                  Exchange Act.  Exchange Act means the Securities Exchange
Act of 1934, as amended.

(q)                                  Fair Market Value.  Fair Market Value means, as of any date, the
value of a share of Common Stock determined as follows:

(i)                                    If the Common
Stock is listed on any established stock exchange or traded on the Nasdaq
National Market, the Nasdaq SmallCap Market, or the OTC Bulletin Board, 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, market, or quotation service (or the exchange, market, or
quotation service with the greatest volume of trading in the Common Stock) on
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.

(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.

(r)                                  Incentive Stock Option.  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.

(s)                                  Listing Date.  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 interdealer
quotation system if such securities exchange or interdealer quotation system
has been certified in accordance with the provisions of Section 25100(o) of the
California Corporate Securities Law of 1968.

(t)                                    Non-Employee Director.  Non-Employee Director  means a
Director 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 under the federal securities laws (“Regulation S-K”))
and does not possess an interest in any other transaction as to which
disclosure would be required under Item 404(a) of Regulation S-K; or (ii) is
otherwise considered a “non-employee director” for purposes of Rule 16b-3.

(u)                                 Nonstatutory Stock Option.  Nonstatutory Stock Option means an Option
not intended to qualify as an Incentive Stock Option.

(v)                                   Officer.  Officer means 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.

 3
 

(w)                                Option.  Option means an Incentive Stock Option or a
Nonstatutory Stock Option granted pursuant to the Plan.

(x)                                  Option Agreement.  Option Agreement means a written agreement
between the Company and an Optionholder evidencing the terms and conditions of
an individual Option grant.  Each Option
Agreement shall be subject to the terms and conditions of the Plan.

(y)                                  Optionholder.  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.

(z)                                  Outside Director.  Outside Director means a Director 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.

(aa)                            Own, Owned, Owner, Ownership.  A person or Entity shall be
deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership”
of securities if such person or Entity, directly or indirectly, through any
contract, arrangement, understanding, relationship or otherwise, has or shares
voting power, which includes the power to vote or to direct the voting, with
respect to such securities.

(bb)                            Participant.  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.

(cc)                            Permitted
Holder.  Permitted Holder means, as of
the date of determination, any and all of (i) an employee benefit plan (or
trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person of which a majority of its voting power, of its
voting equity securities or of the value of its equity securities is Owned,
directly or indirectly, by the Company, and (ii) Spescom Ltd. or any of its
controlled Affiliates; provided, however, that
if a change in control of Spescom Ltd. has occurred it shall no longer be a
Permitted Holder.  For the purposes of
determining whether a change in control of Spescom Ltd. has occurred, the
definition of Change in Control contained in Section 2(d) shall apply in its
entirety, except that each instance in such definition of the words “the
Company” shall be replaced with the words “Spescom Ltd.” and each instance in
such definition of the words “other than one or more of the Permitted Holders
or any group controlled by one or more of the Permitted Holders” shall be
disregarded.

(dd)                            Permitted
Transferee.  Permitted
Transferee means any person to whom a Stock Award or share of Common Stock is
transferred pursuant to the provisions of Section 12(d) of this Plan.

(ee)                            Person.  The term “person” shall have the meaning
ascribed to such term by Sections 3(a)(9) and 13(d)(3) of the Exchange Act (or
any successor section thereto).

(ff)                                Phantom Stock Unit. 
Phantom Stock Unit means the right to receive an amount equal to the
Fair Market Value of one (1) share of the Company’s Common Stock on the day the
Phantom Stock Unit is redeemed.  These
Phantom Stock Units are subject to the provisions of Subsection 7(c) of the
Plan.

 4
 

(gg)                          Plan.  Plan means this Enterprise Informatics Inc.
2007 Stock Incentive Plan.

(hh)                          Restricted Stock Unit.  Restricted Stock Unit means the right to
receive one (1) share of the Company’s Common Stock at the time the Restricted
Stock Unit vests, with the further right to elect to defer receipt of shares of
Common Stock otherwise deliverable upon the vesting of an award of Restricted
Stock Units.  These Restricted Stock
Units are subject to the provisions of Subsection 7(d) of the Plan. 

(ii)                                Rule 16b-3.  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.

(jj)                                Securities Act.  Securities Act means the Securities Act of
1933, as amended.

(kk)                        Stock Award.  Stock Award means any right granted under
the Plan, including, but not limited to: (i) Options, (ii) Stock Bonus
Awards, (iii) Stock Appreciation Rights, (iv) Phantom Stock Units,
and (v) Restricted Stock Units.

(ll)                                Stock Appreciation Right.  Stock Appreciation Right means the right to
receive an amount equal to the Fair Market Value of one (1) share of the
Company’s Common Stock on the day the Stock Appreciation Right is redeemed,
reduced by the deemed exercise price or base price of such right.  These Stock Appreciation Rights are subject
to the provisions of Subsection 7(b) of the Plan.

(mm)                    Stock Award Agreement.  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.  Each Stock Award Agreement shall be subject
to the terms and conditions of the Plan.

(nn)                          Stock Bonus Award.  Stock Bonus Award means a grant of shares of
the Company’s Common Stock not requiring a Participant to pay any amount of
monetary consideration, and subject to the provisions of Subsection 7(a) of the
Plan.

(oo)                            Ten Percent Shareholder.  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
Section 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 Award granted (which need not be identical), including the time or times
when a Person shall be permitted to receive Common Stock pursuant to a Stock
Award; and the number of shares of Common Stock 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

 5
 

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 13.

(iv)                               To terminate or
suspend the Plan as provided in Section 14.

(v)                                   Generally, to
exercise such powers and to perform such acts as the Board deems necessary,
desirable, convenient or expedient to promote the best interests of the Company
that are not in conflict with the provisions of the Plan.

(vi)                               To adopt sub plans and/or special provisions
applicable to Stock Awards regulated by the laws of a jurisdiction other than
and outside of the United States.  Such
sub plans and/or special provisions may take precedence over other provisions
of the Plan, with the exception of Section 4 of the Plan, but unless otherwise
superseded by the terms of such sub plans and/or special provisions, the
provisions of the Plan shall govern.

(c)                                  Delegation to Committee.

(i)                                    General.  The Board
may delegate administration of the Plan to a Committee or Committees of two (2)
or more members of the Board, and the term “Committee” shall apply to any
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
some or all of the administration of the Plan. 
The Board or the Committee may delegate to one or more Officers of the
Company the authority to grant Stock Awards under this Plan to Participants who
are not Officers in accordance with the requirements of the California
Corporations Code and/or other applicable law.

(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 (1) 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 (a) 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 (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code and/or (2)
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.  The Board or the Committee may delegate to
one or more Officers of the Company the authority to grant Stock Awards under
this Plan to Participants who are not Officers in accordance with the
requirements of the California Corporations Code and/or other applicable law.

(d)                                  Effect of Board’s Decision.  All determinations,
interpretations and constructions made by the Board in good faith shall not be
subject to review by any person and shall be final, binding and conclusive on
all persons.

 6
 

(e)                                  Compliance with Section 16 of Exchange Act.  With
respect to Persons subject to Section 16 of the Exchange Act, transactions
under this Plan are intended to comply with the applicable conditions of Rule
16b-3, or any successor rule thereto.  To
the extent any provision of this Plan or action by the Board fails to so
comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Board. 
Notwithstanding the above, it shall be the responsibility of such
Persons, not of the Company or the Board, to comply with the requirements of
Section 16 of the Exchange Act; and neither the Company nor the Board shall be
liable if this Plan or any transaction under this Plan fails to comply with the
applicable conditions of Rule 16b-3 or any successor rule thereto, or if any
person incurs any liability under 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 Common
Stock, the Common Stock that may be issued pursuant to Stock Awards shall not
exceed in the aggregate seven million five hundred thousand (7,500,000) shares
of Common Stock, reduced by the number of shares of Common Stock issued.  To the extent that a distribution pursuant to
a Stock Award is made in cash, the share reserve shall not be reduced.

(b)                                  Reversion of Shares to the Share Reserve.  If any Stock Award shall for any reason (i)
expire, be cancelled or otherwise terminate, in whole or in part, without
having been exercised or redeemed in full, (ii) be reacquired by the Company
prior to vesting, or (iii) be repurchased at cost by the Company prior to
vesting, the shares of Common Stock not acquired under such Stock Award shall
revert to and again become available for issuance under the Plan.

(c)                                  Source of Shares.  The
shares of Common Stock subject to the Plan may be unissued shares or reacquired
shares.

(d)                                  Share Reserve Limitation.  Prior to the Listing Date and to the extent
then required by Section 260.140.45 of Title 10 of the California Code of
Regulations (“Section 260.140.45”), the total number of shares of Common Stock
issuable upon exercise of all outstanding Options and the total number of
shares of Common Stock provided for under any stock bonus or similar or other
plan or award of the Company shall not exceed thirty percent (30%) (or such
higher percentage limitation as may be approved by the shareholders of the
Company pursuant to Section 260.140.45) of the then outstanding shares of Common
Stock of the Company as calculated in accordance with the conditions and
exclusions of Section 260.140.45. Notwithstanding the foregoing, the maximum
aggregate number of shares of Common Stock that may be issued under the Plan
pursuant to Incentive Stock Options is seven million five hundred thousand
(7,500,000) shares of Common Stock (“ISO Limit”), subject to the adjustments
provided for in Section 11 of the Plan.

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. 

(i)                                    A Ten Percent
Shareholder shall not be granted 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.

 7
 

(ii)                                Prior to the
Listing Date, a Ten Percent Shareholder shall not be granted a Nonstatutory
Stock Option unless the exercise price of such Option is at least (i) one
hundred ten percent (110%) of the Fair Market Value of the Common Stock at the
date of grant or (ii) such lower percentage of the Fair Market Value of the
Common Stock at the date of grant as is permitted by Section 260.140.41 of
Title 10 of the California Code of Regulations at the time of the grant of the
Option.

(iii)                            Prior to the
Listing Date, a Ten Percent Shareholder shall not be granted any Phantom Stock
Unit or Stock Appreciation Right unless the grant exercise/purchase price of
such Stock Award is at least (i) one hundred percent (100%) of the Fair Market
Value of the Common Stock either at the time the Stock Award is granted or at
the time the purchase of the Common Stock is consummated or (ii) such lower
percentage of the Fair Market Value of the Common Stock at the date of grant or
the time the purchase is consummated as is permitted by Section 260.140.42 of
Title 10 of the California Code of Regulations at the time of the grant of the
Stock Award.

(c)                                  Section 162(m) Limitation.  Subject to the provisions of
Section 11(a) relating to adjustments upon changes in the shares of Common
Stock, no Employee shall be eligible to be granted Options and Stock
Appreciation Rights covering more than two million (2,000,000) shares of Common
Stock during any calendar year.  This
Section 5(c) shall not apply prior to the Listing Date and, following the
Listing Date, this Section 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 of Common Stock 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 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 (ii) such other date
required by Section 162(m) of the Code and the rules and regulations
promulgated thereunder.

(d)                                  Consultants.  A Consultant shall not be eligible for the
grant of a Stock Award if, at the time of grant, a Form S-8 Registration
Statement under the Securities Act (“Form S-8”) is not available to register
either the offer or the sale of the Company’s securities to such Consultant
because of the nature of the services that the Consultant is providing to the
Company, or because the Consultant is not a natural person, or as otherwise
provided by the rules governing the use of Form S-8, unless the Company
determines both (1) that such grant (A) shall be registered in another manner
under the Securities Act (e.g., on a Form
S-3 Registration Statement) or (B) does not require registration under the
Securities Act in order to comply with the requirements of the Securities Act,
if applicable, and (2) that such grant complies with the securities laws of all
other relevant jurisdictions.

(e)                                  International Participants.  With
respect to Participants who reside or work outside the United States of
America, subject to the terms of Sections 13(a) and 13(e), the Committee may,
in its sole discretion, amend the terms of the Plan (including, but not limited
to, the adoption of appendices or subplans) or Stock Awards with respect to
such Participants in order to conform such terms with the requirements of local
law.

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

 8
 

Stock Options at the time of grant, and, if
certificates are issued, a separate certificate or certificates will be issued
for shares of Common Stock 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.  The term of
an Option shall be set forth in the Option Agreement; provided, however, that,
subject to the provisions of Section 5(b) regarding Ten Percent Shareholders,
no Option granted under the Plan 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 Section 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 Common 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 Section 5(b)
regarding Ten Percent Shareholders, the exercise price of each Nonstatutory
Stock Option shall be not less than one hundred percent (100%) of the Fair
Market Value of the Common 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 Common Stock acquired pursuant to an Option shall be paid, to
the extent permitted by applicable statutes and regulations, either (i) in cash
or by check at the time the Option is exercised, (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) in another form of legal consideration that may be
acceptable to the Board, provided, however, that a promissory note or other
form of deferred payment shall not constitute a permissible form of consideration
for an Option granted under the Plan, or (iii) by some combination of the
foregoing. In the absence of a provision to the contrary in the individual
Optionholder’s Option Agreement, payment for Common Stock pursuant to an Option
may only be made in the form of cash or check.

Wherever a Participant is permitted to pay the exercise price of an
Option or taxes relating to the exercise of an Option by delivering Common
Stock, the Participant may, subject to procedures satisfactory to the Board,
satisfy such delivery requirement (i) by presenting proof of beneficial
ownership of such Common Stock, in which case the Company shall treat the
Option as exercised without further payment and shall withhold such number of
shares of Common Stock from the Common Stock acquired by the exercise of the
Option and (ii) by complying with such restrictions as shall be necessary to
ensure that the Option is treated as an equity instrument for financial
accounting purposes.

(e)                                  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 that 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 Section 6(e) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option
may be exercised.

 9
 

(f)                                    Minimum Vesting Prior to the Listing Date.  Notwithstanding the foregoing Section 6(e),
to the extent that the following restrictions on vesting are required by
Section 260.140.41(f) of Title 10 of the California Code of Regulations at the
time of the grant of the Option, then:

(i)                                    Options granted
prior to the Listing Date to an Employee who is not an Officer, Director or
Consultant shall provide for vesting of the total number of shares of Common
Stock 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; and

(ii)                                Options granted
prior to the Listing Date to Officers, Directors or Consultants may be made
fully exercisable, subject to reasonable conditions such as continued
employment, at any time or during any period established by the Company.

(g)                                 Termination of
Continuous Service.  In the event an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability), subject to
Section 6(j), the Optionholder may exercise his or her Option (to the extent
that the Optionholder was entitled to exercise such Option as of the date of
termination or as otherwise permitted by the Company) 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 period shall not be
less than thirty (30) days for Options granted prior to the Listing Date), 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.

(h)                                 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 of Common
Stock would violate the registration requirements under the Securities Act, or
similar requirements of applicable law of another jurisdiction to which the
Option is subject, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in the Option Agreement 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 or similar requirements.

(i)                                    Disability of
Optionholder.  In the event that 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 such Option 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 period shall not be
less than six (6) months for Options granted prior to the Listing Date) 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.

(j)                                    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 such Option as of the date of death or as
otherwise permitted by the Company) 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 Section 12, but only within the period

 10
 

ending
on the earlier of (i) the date eighteen (18) months following the date of death
(or such longer or shorter period specified in the Option Agreement, which
period shall not be less than six (6) months for Options granted prior to the
Listing Date) or (ii) 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.

(k)                                Termination for Cause. 
Notwithstanding any other provision of the Plan to the contrary, if the
Optionholder’s Continuous Service is terminated for “Cause” (as defined below),
the Option shall terminate and cease to be exercisable immediately upon such
termination of Continuous Service.

For
the purposes of this Section 6(j), “Cause” shall mean any of the following: (1) the Optionholder’s
theft, dishonesty, or falsification of any documents or records related to the
Company or any of its Affiliates or theft or conversion of any property of the
Company or any of its Affiliates; (2) the Optionholder’s improper use or
disclosure of the Company’s or any of its Affiliates’ confidential or
proprietary information; (3) any action by the Optionholder which has a
materially detrimental effect on the reputation or business of the Company or
any of its Affiliates; (4) the Optionholder’s failure or inability to
perform satisfactorily any reasonable assigned material duties of his or her
position; (5) any material breach by the Optionholder of (i) any
employment or service agreement between the Optionholder and the Company or any
of its Affiliates, which breach is not cured pursuant to the terms of such
agreement or (ii) any policy or procedure established by the Company; or
(6) the Optionholder’s conviction (including any plea of guilty or nolo
contendere) of any criminal act which impairs the Optionholder’s ability to
perform his or her duties with the Company or any of its Affiliates, which
shall be deemed to include any felony. 
Notwithstanding the foregoing, the definition of “Cause” in an
individual written agreement between the Company or any of its Affiliates and
the Participant shall supersede the foregoing definition with respect to Stock
Awards subject to such individual agreement (it being understood, however, that
if no definition of the term Cause is set forth in such an individual written
agreement, the foregoing definition shall apply).

(l)                                    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 terminates to
exercise the Option as to any part or all of the shares of Common Stock subject
to the Option prior to the full vesting of the Option. Subject to the “Repurchase
Limitation” in Section 10(h), any shares of Common Stock so purchased may be
subject, prior to vesting, to a repurchase option in favor of the Company or to
any other restriction the Board determines to be appropriate.  Provided that the “Repurchase Limitation” in
Section 10(h) is not violated, the Company will not exercise its repurchase
option until at least six (6) months (or such longer or shorter period of time
required to avoid a charge to earnings for financial accounting purposes) have
elapsed following exercise of the Option unless the Board otherwise
specifically provides in the Option.

7.                                      Provisions
of Stock Awards Other Than Options.

(a)                                  Stock Bonus Awards.  Each
Stock Bonus Award agreement shall be in such form and shall contain such terms
and conditions as the Board shall deem appropriate.  The terms and conditions of Stock Bonus Award
agreements may change from time to time, and the terms and conditions of
separate Stock Bonus Award agreements need not be identical, but each Stock
Bonus Award 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 Award may be awarded in consideration for past services actually rendered
to the Company or an Affiliate for its benefit; provided, however, that in the
event that a Stock Bonus Award is granted to a new Employee, Director, or
Consultant who has not

 11
 

performed
prior services for the Company or an Affiliate, the Stock Bonus Award will not
be granted until the Board determines that such person has rendered services to
the Company or an Affiliate for a sufficient period of time to ensure proper
issuance of the shares of Common Stock underlying the Stock Bonus Award in
compliance with the California Corporations Code.

(ii)                                Vesting Generally.  The
total number of shares of Common Stock subject to a Stock Bonus Award may, but
need not, vest in periodic installments that may, but need not, be equal,
and/or may, but need not, vest upon the achievement of certain performance
criteria, whether financial, transactional or otherwise, as determined by the
Board.

(iii)                            Repurchase.  Subject to
the “Repurchase Limitation” in Section 10(h), shares of Common Stock awarded
under a Stock Bonus Award agreement may, but need not, be subject to a share
repurchase option or reacquisition right in favor of the Company.

(iv)                               Termination of Participant’s Continuous Service.  Subject to the “Repurchase Limitation” in
Section 10(h), in the event a Participant’s Continuous Service terminates, the
Company shall automatically 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 Award agreement.

(b)                                  Stock
Appreciation Rights.  Two types
of Stock Appreciation Rights (“SARs”) shall be authorized for issuance under
the Plan: (i) stand-alone SARs and (ii) stapled SARs.

(i)                                    Stand-Alone
SARs.  The following terms and
conditions shall govern the grant and redeemability of stand-alone SARs:

(A)                           The stand-alone SAR shall cover a specified
number of underlying shares of Common Stock and shall be redeemable upon such
terms and conditions as the Board may establish.  Upon redemption of the stand-alone SAR, the
holder shall be entitled to receive a distribution from the Company in an
amount equal to the excess of (i) the aggregate Fair Market Value (on the
redemption date) of the shares of Common Stock underlying the redeemed right
over (ii) the aggregate base price in effect for those shares.

(B)                             The number of shares of Common Stock
underlying each stand-alone SAR and the base price in effect for those shares
shall be determined by the Board in its sole discretion at the time the
stand-alone SAR is granted.  In no event,
however, may the base price per share be less than one hundred percent (100%)
of the Fair Market Value per underlying share of Common Stock on the grant
date.

(C)                             The distribution with respect to any redeemed
stand-alone SAR may be made in shares of Common Stock valued at Fair Market
Value on the redemption date, in cash, or partly in shares and partly in cash,
as the Board shall in its sole discretion deem appropriate.

(ii)                                Stapled SARs.  The following terms and conditions shall
govern the grant and redemption of stapled SARs:

 12
 

(A)                           Stapled SARs may only be granted concurrently
with an Option to acquire the same number of shares of Common Stock as the
number of such shares underlying the stapled SARs.

(B)                             Stapled SARs shall be redeemable upon such
terms and conditions as the Board may establish and shall grant a holder the
right to elect among (i) the exercise of the concurrently granted Option for
shares of Common Stock, whereupon the number of shares of Common Stock subject
to the stapled SARs shall be reduced by an equivalent number, (ii) the
redemption of such stapled SARs in exchange for a distribution from the Company
in an amount equal to the excess of the Fair Market Value (on the redemption
date) of the number of vested shares which the holder redeems over the
aggregate base price for such vested shares, whereupon the number of shares of
Common Stock subject to the concurrently granted Option shall be reduced by any
equivalent number, or (iii) a combination of (i) and (ii).

(C)                             The distribution to which the holder of
stapled SARs shall become entitled under this Section 7 upon the redemption of
stapled SARs as described in Section 7(b)(ii)(B) above may be made in shares of
Common Stock valued at Fair Market Value on the redemption date, in cash, or
partly in shares and partly in cash, as the Board shall in its sole discretion
deem appropriate.

(c)                                  Phantom Stock
Units.  The following terms and
conditions shall govern the grant and redeemability of Phantom Stock Units:

(i)                                    Phantom Stock
Unit awards shall be redeemable by the Participant to the Company upon such
terms and conditions as the Board may establish.  The value of a single Phantom Stock Unit
shall be equal to the Fair Market Value of a share of Common Stock, unless the
Board otherwise provides in the terms of the Stock Award Agreement.

(ii)                                The
distribution with respect to any exercised Phantom Stock Unit award may be made
in shares of Common Stock valued at Fair Market Value on the redemption date,
in cash, or partly in shares and partly in cash, as the Board shall in its sole
discretion deem appropriate.

(d)                                  Restricted
Stock Units.  The
following terms and conditions shall govern the grant and redeemability of
Restricted Stock Units:

(i)                                    A Restricted
Stock Unit is the right to receive one (1) share of the Company’s Common Stock
at the time the Restricted Stock Unit vests. 
To the extent permitted under the terms of the applicable Stock Award
Agreement, a Participant may elect to defer receipt of shares of Common Stock
otherwise deliverable upon the vesting of an award of Restricted Stock Units,
so long as such deferral election complies with applicable law, including but
not limited to Section 409A of the Code. 
An election to defer such delivery shall be irrevocable and shall be
made in writing on a form acceptable to the Company.  The election form shall be filed prior to the
vesting date of such Restricted Stock Units in a manner determined by the
Board.  When the Participant vests in
such Restricted Stock Units, the Participant will be credited with a number of
Restricted Stock Units equal to the number of shares of Common Stock for which
delivery is deferred.  Restricted Stock
Units shall be paid by delivery of shares of Common Stock, in cash, or a
combination thereof, as the Board in its sole discretion shall deem
appropriate, in accordance with the timing and manner of payment elected by the
Participant on his or her election form, or if no deferral election is made, as
soon as administratively practicable following the vesting of the Restricted
Stock Unit.

 13
 

(ii)                                Each Restricted
Stock Unit agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. 
The terms and conditions of Restricted Stock Unit agreements may change
from time to time, and the terms and conditions of separate Restricted Stock
Unit agreements need not be identical, but each Restricted Stock Unit agreement
shall include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

(A)                              Consideration.  A Restricted Stock Unit may be awarded in
consideration for past services actually rendered to the Company or an
Affiliate for its benefit.  The Board
shall have the discretion to provide that the Participant pay for such
Restricted Stock Unit with cash or other consideration permitted by law.

(B)                                Vesting.  Vesting shall generally be based on the
Participant’s Continuous Service and/or on the achievement of certain
performance criteria, whether financial, transactional or otherwise, as
determined by the Board.

(C)                                Termination of
Participant’s Continuous Service.  The unvested portion of any award of
Restricted Stock Units held by a Participant shall expire immediately upon the
termination of such Participant’s Continuous Service.

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 grant of Stock Awards and the issuance of
Common Stock pursuant to Stock Awards shall be subject to compliance with all
applicable requirements of federal, state and foreign law with respect to such
securities.  Stock Awards may not be
issued if the issuance of such Stock Awards would constitute a violation of any
applicable federal, state or foreign securities laws or other law or
regulations or the requirements of any stock exchange or market system or
quotation service upon which the Common Stock may then be listed.  In addition, no Option may be exercised
unless (a) a registration statement under the Securities Act shall at the
time of exercise of the Option be in effect with respect to the shares issuable
upon exercise of the Option or (b) in the opinion of legal counsel to the
Company, the shares issuable upon exercise of the Option may be issued in
accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act.  The
inability of the Company to obtain from any regulatory body having jurisdiction
the authority, if any, deemed by the Company’s legal counsel to be necessary
for the lawful issuance and sale of any Stock Award or share of Common Stock
hereunder shall relieve the Company of any liability in respect of the failure
to issue or sell such Stock Award or Common Stock. Nothing in this Section 8(b)
shall be read to require the Company to register under the Securities Act the
Plan, any Stock Award, or any Common Stock issued or issuable pursuant to any
such Stock Award.

9.                                      Use of
Proceeds from Stock.

Proceeds from the sale of
Common 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.

 14
 

(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 of Common Stock subject to a Stock
Award unless and until such Participant has satisfied all requirements for
issuance of the Common Stock pursuant to the terms of the Stock Award.

(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 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 for any reason, or no reason, with or without Cause and with or
without notice, (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 or a director of an Affiliate pursuant to the Bylaws of the Company
or the Affiliate, as the case may be, 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 Common 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 redeeming a Stock Award or
acquiring Common 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; (ii) to give written assurances satisfactory to the
Company stating that the Participant is acquiring Common Stock subject to the
Stock Award for the Participant’s own account and not with any present
intention of selling or otherwise distributing the Common Stock and (iii) to
give such other written assurances as the Company may determine are reasonable
in order to comply with applicable law. 
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 Common Stock.

(f)                                    Withholding
Obligations.  To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state, local,
or foreign tax withholding obligation relating to the grant, vesting, exercise
or redemption of a Stock Award or the acquisition, vesting, distribution or
transfer of Common Stock under a Stock Award or any other event relating to a
Stock Award as provided by applicable law, 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 of Common Stock from the shares of
Common Stock otherwise issuable to the Participant as a result of the exercise
or redemption of a Stock Award or the acquisition of Common Stock under the
Stock Award, provided, however, that no shares of Common Stock are withheld
with a value exceeding the minimum amount of tax required to be withheld by
law; or (iii) delivering to the Company Owned and unencumbered shares of Common
Stock.

 15
 

(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 Section 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 applicable
to the unvested portion of a Stock Award or shares of Common Stock subject to
the unvested portion of a Stock Award shall be at the original purchase price,
which original purchase price shall be deemed to be zero (0) dollars for the
portion of any Stock Award that was awarded without payment of monetary
consideration (e.g., Stock Awards granted in consideration of past services
rendered to the Company or an Affiliate). 
To the extent required by Section 260.140.41 and Section 260.140.42 of
Title 10 of the California Code of Regulations at the time a Stock Award is
made, any repurchase option applicable to the unvested portion of a Stock Award
or share of Common Stock issued pursuant to a Stock Award granted prior to the
Listing Date to a person who is not an Officer, Director or Consultant shall be
upon the following terms.  The right to
repurchase at the original purchase price shall lapse at the rate of at least
twenty percent (20%) of the shares of Common Stock 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 the right to repurchase shall be
exercised for cash or cancellation of purchase money indebtedness for the
shares of Common Stock within ninety (90) days of termination of Continuous
Service (or in the case of shares of Common Stock 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.

(i)                                    Section 409A.  Notwithstanding anything in the Plan to the
contrary, it is the intent of the Company that all Stock Awards granted under
this Plan (including, but not limited to, Restricted Stock Units and Phantom
Stock Units) shall not cause an imposition of the additional taxes provided for
in Section 409A(a)(1)(B) of the Code; furthermore, it is the intent of the
Company that the Plan shall be administered so that the additional taxes
provided for in Section 409A(a)(1)(B) of the Code are not imposed.

11.                               Adjustments
Upon Changes in Stock.

(a)                                  Capitalization Adjustments.

(i)  In the event of any change in the outstanding
Common Stock subject to the Plan, or subject to or underlying any Stock Award,
by reason of any stock dividend, forward stock split or reverse stock split,
reorganization, recapitalization, merger, consolidation, spin-off, combination,
exchange of shares of Common Stock or other corporate exchange, any
distribution to holders of Common Stock other than regular cash dividends, or
any transaction similar to the foregoing, then (A) the number of shares of
Common Stock reserved for issuance under this Plan, (B) the number of shares
set forth in Section 5(c), (C) the exercise price, base price or redemption
price applicable to outstanding Stock Awards, and (D) the number of shares of
Common Stock subject to outstanding Stock Awards shall be proportionately
adjusted, subject to any required action by the Board or the shareholders of
the Company and compliance with applicable law. 
Fractions of a share of Common Stock will not be issued but will be paid
in cash at the Fair Market Value of such fraction of a share or will be rounded
down to the nearest whole share, as determined by the Board in its sole
discretion.

 16
 

(ii)  Any
determination, substitution or adjustment made by the Board under this Section
11(a) shall be final, binding and conclusive on all persons.  The conversion of any convertible securities
of the Company shall not be treated as a transaction that will cause the Board
to make any determination, substitution or adjustment under this Section 11(a).

(b)                                  Adjustments Upon A Change in Control.

(i)                                    In the event of
a Change in Control, any surviving Entity or acquiring Entity may assume or
continue any Stock Awards outstanding under the Plan or may substitute similar
stock awards with substantially equivalent economic value (including an award
to acquire the same consideration paid to the shareholders in the transaction
by which the Change in Control occurs) for those outstanding under the
Plan.  In the event any surviving Entity
or acquiring Entity declines to assume or continue such Stock Awards or to
substitute similar stock awards for those outstanding under the Plan, then with
respect to Stock Awards held by Participants whose Continuous Service has not
terminated, the Board in its sole discretion and without liability to any
person may (A) provide for the payment of a cash amount in exchange for the
cancellation of a Stock Award equal to its fair value (as determined in the
good faith determination of the Board) which, in the case of certain Stock
Awards (i.e., Incentive Stock Options, Nonstatutory Stock Options, and Stock
Appreciation Rights), shall equal the product of (x) the excess, if any, of the
Fair Market Value per share of Common Stock at such time over the exercise
price, base price or redemption price, if any, times (y) the total
number of shares then subject to such Stock Award, (B) continue the Stock
Awards, or (C) notify Participants holding certain Stock Awards that they must
exercise or redeem any portion of such Stock Award (including, at the
discretion of the Board, any unvested portion of such Stock Award) at or prior
to the closing of the transaction by which the Change in Control occurs and
that the Stock Awards shall terminate if not so exercised or redeemed at or
prior to the closing of the transaction by which the Change in Control
occurs.  With respect to any other Stock
Awards outstanding under the Plan, including Stock Awards held by Participants
whose Continuous Service has terminated, such Stock Awards shall terminate if
not exercised or redeemed prior to the closing of the transaction by which the
Change in Control occurs.  The Board
shall not be obligated to treat all Stock Awards, even those that are of the
same type, in the same manner.

(ii)                                In the event of a dissolution or liquidation
of the Company, all outstanding Stock Awards shall terminate immediately prior
to such event.

(c)                                  Other Written Agreements.  A Stock Award held by any Participant whose
Continuous Service has not terminated prior to the effective time of a Change
in Control may be subject to additional acceleration of vesting and
exercisability or other terms and conditions as set forth in the Stock Award
Agreement for such Stock Award or as set forth in any other written agreement
between the Company or any Affiliate and the Participant.  In the event of any conflict between written
documents relating to the treatment of a Stock Award held by a Participant,
such additional acceleration provisions and other terms and conditions shall be
controlling.

12.                               Limitations
on Transfers.

(a)                                  Transferability of Stock Awards.  No Stock Award issued under
this Plan prior to the Listing Date may be sold, exchanged, transferred
(including, without limitation, any transfer to a nominee or agent of a
Participant), assigned, pledged, hypothecated or otherwise disposed of, except
by will or by the laws of descent and distribution and, to the extent provided
in the Stock Award Agreement, to such further extent permitted by applying the
standard set forth in Section 260.140.41(c) and Section 260.140.42(d) of Title
10 of the California Code of Regulations at the time of the grant of the Stock
Award.  Any unauthorized transfer of a
Stock Award shall be void.  A Stock Award
issued under this Plan on or after the Listing Date shall be transferable to
the extent provided in the Stock Award

 17
 

Agreement.  If a Stock Award Agreement issued under this
Plan on or after the Listing Date does not provide for transferability, then
the Stock Award shall not be transferable except by will or by the laws of
descent and distribution. 
Notwithstanding the foregoing, a Participant 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 Participant, shall thereafter be
entitled to exercise applicable rights under a Stock Award Agreement.

(b)                                  Special Rule Applicable to Incentive Stock Options.  Notwithstanding the
provisions of Section 12(a), an Incentive Stock Option issued under this Plan
shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of an Optionholder
only by the Optionholder; provided, however, that 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.

(c)                                  Limited
Transfers for the Benefit of Family Members.  Notwithstanding any other provision set forth
in this Section 12, the Board, in its sole discretion, may permit a Stock Award
or share of Common Stock issued under this Plan to be assigned or transferred
subject to the applicable limitations, if any, set forth in Section
260.140.41(d) and Section 260.140.42(c) of Title 10 of the California Code of
Regulations, the General Instructions to Form S-8 Registration Statement
under the Securities Act, and other applicable law.

(d)                                  Permitted
Transferees.  Any
Permitted Transferee will be subject to all of the terms and conditions
applicable to a person transferring a Stock Award or share of Common Stock
issued under this Plan, including, but not limited to, the terms and conditions
set forth in this Plan and the applicable Stock Award Agreement.

13.                               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 Common Stock and Section 13(b), 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, any applicable state corporate or securities law
requirements, or any securities exchange listing requirements.

(b)                                  Securities Law
Compliance.  The Board
may amend the Plan, and any such amendment shall be effective without the
approval of the shareholders of the Company, if such amendment is necessary in
order for the Plan to comply with federal and state securities law
requirements, including without limitation those requirements contained in
Section 260.140 of Title 10 of the California Code of Regulations.

(c)                                  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.

(d)                                  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.

 18
 

(e)                                  No Material Impairment of Rights.  Rights under any Stock Award granted before
amendment of the Plan shall not be materially impaired by any amendment of the
Plan unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

(f)                                    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 materially impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

14.                               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.

15.                               Effective
Date of Plan.

The Plan shall become effective immediately upon its adoption by the
Board, but no Stock Awards may 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.

16.                               Choice
of Law.

The law of the State of
California shall govern all
questions concerning the construction, validity and interpretation of this
Plan, without regard to such state’s conflict of laws rules.

 19Exhibit
10.2

ENTERPRISE
INFORMATICS INC.

2007
STOCK INCENTIVE PLAN

NOTICE
OF STOCK OPTION GRANT

Unless otherwise defined herein, the terms defined in
the Enterprise Informatics Inc. 2007 Stock Incentive Plan (the “Plan”) shall
have the same defined meanings in this Notice of Stock Option Grant (“Notice of
Grant”) and the attached Stock Option Agreement and Exercise Notice.

Employee:                                                                                              

Address:                                                                                                        
                                                                                            
                                                                                            

The person named above (the “Optionholder”) has been
granted an option (this “Option”) to purchase shares of Common Stock of Enterprise
Informatics Inc. (the “Company”), subject to the terms and conditions of the
Plan, this Notice of Grant, and the attached Stock Option Agreement. The
material terms relating to the grant of this Option are as follows:

Option Terms:

Date of Grant:                                                                       

Vesting Commencement Date:                                           

Exercise Price per Share:                                                     

Total Number of Shares Granted:                                      

Total Exercise Price:                                                             

Type of Option (check one): o
Incentive Stock Option o Nonstatutory
Stock Option

Term/Expiration Date: [10 years from the Date of Grant]

Payment:

o
By cash or check

o
Other:  Refer to Stock Option Agreement
(attached hereto as Exhibit A-1)

Vesting Schedule:

Subject in all cases to the Optionholder’s Continuous
Service to the Company on such dates and the other provisions and limitations
set forth in this Notice of Grant, the attached Stock 

 

Option Agreement and the Plan, the Option may be
exercised, in whole or in part, in accordance with the following schedule:

 

	
   

  	
  Shares

  	
   

  	
   

  	
   

  	
  Vest Type

  	
   

  	
   

  	
   

  	
  Full Vesting Date

  	
   

  	
   

  	
   

  	
  Expiration Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

Vesting Acceleration:
 In the event that the Optionholder’s
Continuous Service is terminated for any reason, or for no reason, within one
year after a Change in Control, then (i) the portion of this Option that
has not vested on or prior to the date of such termination shall become fully
vested and exercisable on such date and (ii) this Option shall terminate
upon the earlier of the Expiration Date set forth above or the first
anniversary of the date of such termination.

Termination Period:

Except as set forth above in connection with a Change
in Control, if the Optionholder’s Continuous Service is terminated for any
reason (i) this Option shall, to the extent not then vested, cease to be exercisable
on the date of such termination, and (ii) the portion of this Option which
has become vested and exercisable pursuant to the Vesting Schedule set forth
above (the “Vested Portion”) shall remain exercisable for the periods set forth
below:

(a)           The
Vested Portion of this Option may be exercised for a period of 30 days
following the date upon which the Optionholder’s Continuous Service to the
Company terminates for any reason other than upon Optionholder’s death, Disability
or Retirement (as defined below) or upon termination by the Company for Cause.  If the Optionholder’s Continuous Service is
terminated by the Company for Cause, this Option shall immediately terminate
and cease to be exercisable as of the date of such termination.

(b)           Upon
termination of the Optionholder’s Continuous Service due to death or Disability
of the Optionholder, the Vested Portion of this Option may be exercised for a
period of 12 months following the date of such termination.

(c)           Upon
termination of the Optionholder’s Continuous Service due to retirement in
accordance with the Company’s then-current retirement policy (“Retirement”),
the Vested Portion of this Option may be exercised for a period of 90 days
following the date of such termination.

(d)           If
the exercise of the Vested Portion of this Option following a termination of
the Optionholder’s Continuous Service (other than a termination upon the
Optionholder’s death or Disability or by the Company for Cause) is prevented at
any time solely because the issuance of shares of Common Stock would violate
the registration requirements of the Securities Act or similar requirements of
applicable law to which this Option or the Company are subject, then the 

 2
 

 

Vested Portion of this Option shall remain exercisable
until the expiration of a period of 30 days during which the exercise of this
Option would not be in violation of such registration or similar requirements,
and which period follows the date of such termination of Continuous Service.

(e)           Notwithstanding
anything to the contrary contained herein, in no event shall any portion of
this Option be exercised later than the Expiration Date as provided above.  This Option shall terminate when no portion of
this Option remains exercisable.

The undersigned Optionholder acknowledges receipt of,
and understands and agrees to, this Notice of Grant, the Stock Option
Agreement, attached hereto as Exhibit A-1, and the Plan, both of which are made
a part of this document. Optionholder further acknowledges that as of the Date
of Grant, this Notice of Grant, the Stock Option Agreement, and the Plan set
forth the entire understanding between the 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 the Optionholder under the Plan.

[Remainder of Page Intentionally Left Blank]

 3
 

 

This Notice of Grant may be executed in one or more
counterparts, all of which taken together shall be deemed one original.

	
  OPTIONHOLDER:

  	
  ENTERPRISE INFORMATICS INC.:

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  [Name]

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 4
 

 

EXHIBIT
A-1

ENTERPRISE
INFORMATICS INC.

2007
STOCK INCENTIVE PLAN

STOCK
OPTION AGREEMENT

1.             Grant
of Option. The Company hereby grants to the Optionholder named in the
Notice of Grant (the “Optionholder”), to which this Stock Option Agreement
(this “Agreement”) is attached, an option (the “Option”) to purchase the number
of shares of Common Stock (the “Shares”), as set forth in the Notice of Grant,
at the exercise price per share set forth in the Notice of Grant (the “Exercise
Price”), subject to adjustment in accordance with Section 11 of the Plan,
and further subject to the other terms and conditions of the Plan, which are
incorporated herein by reference. Subject to Section 13(e) of the Plan, in the
event of a conflict between the terms and conditions of the Plan and the terms
and conditions of this Agreement, the terms and conditions of the Plan shall prevail.

If designated in the Notice of Grant as an Incentive
Stock Option (“ISO”), the Option is intended to qualify as an ISO under Section
422 of the Code. However, if the Option is intended to be an ISO, to the extent
that it exceeds the $100,000 rule of Code Section 422(d) it shall be treated as
a Nonstatutory Stock Option (“NSO”).

2.             Exercise
of Option.

(a)           Right
to Exercise. The Option is exercisable during its term in accordance with the
Vesting Schedule set out in the Notice of Grant and the applicable provisions
of the Plan and this Agreement.

(b)           Method
of Exercise. The Option is exercisable by delivery of an exercise notice, in
the form attached as Exhibit A-2 to the Notice of Grant (the “Exercise Notice”),
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the “Exercised Shares”), and
such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan. The Exercise Notice shall be completed
by the Optionholder and delivered to the Secretary of the Company. The Exercise
Notice shall be accompanied by payment of the aggregate Exercise Price as to
all Exercised Shares. The Optionholder shall also be required to make adequate
provision for all withholding taxes relating to the exercise as a condition to
the exercise of the Option. The Option shall be deemed to be exercised upon
receipt by the Company of such fully executed Exercise Notice accompanied by
the payment of such aggregate Exercise Price and the adequate provision for the
withholding taxes relating to the exercise.

No Shares shall be issued pursuant to the exercise of
the Option unless such issuance, exercise, and the method of payment of
consideration for such Shares complies with applicable laws or the requirements
of any stock exchange or quotation system upon which the Shares may then be
listed or quoted. The Option may not be exercised for a fraction of a share.
Assuming such compliance, for income tax purposes the Exercised Shares shall be
considered transferred to the Optionholder on the date the Option is exercised
with respect to such Exercised Shares.

 5
 

 

3.             Method
of Payment. Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionholder:

(a)           cash;

(b)           check;

(c)           to
the extent permitted by the Committee:

(i)                                     by
payment under an arrangement with a broker where payment is made pursuant to an
irrevocable commitment by a broker to deliver in the future all or part of the
proceeds from the sale of the shares of Common Stock otherwise issuable to the
Optionholder upon the exercise of the Option (or portion thereof);

(ii)                                  by
tendering (either physically or by attestation) whole shares of Common Stock
owned by the Optionholder and having a Fair Market Value on the date of
exercise equal to the Exercise Price, but only if such tender will not result
in an accounting charge to the Company; or

(iii)                               by the Company
withholding from the shares of Common Stock otherwise issuable to the
Optionholder upon the exercise of the Option (or portion thereof) the whole
number of shares of Common Stock (rounded down) having a Fair Market Value on
the date of exercise sufficient to satisfy the Exercise Price.

4.             Non-Transferability
of Option. The Option may not be transferred in any manner otherwise than
by will or by the laws of descent or distribution and may be exercised during
the lifetime of the Optionholder only by the Optionholder. Notwithstanding the
foregoing, 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. The terms of the Plan and this Agreement shall be binding
upon the executors, administrators, heirs, successors and assigns of the
Optionholder.

5.             Notice
of Disqualifying Disposition of ISO Shares. If the Optionholder sells or
otherwise disposes of any of the Shares acquired pursuant to an ISO on or
before the later of (i) two years after the grant date, or (ii) one year after
the exercise date, the Optionholder shall immediately notify the Company in
writing of such disposition.

6.             Term
of Option. The Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with
the Plan and the terms of this Agreement.

7.             Shareholder
Rights. The Optionholder shall not be deemed to be a holder of, or to have
any of the rights of a holder with respect to, any shares of Common Stock
subject to an Option unless and until the Optionholder has satisfied all
requirements for issuance of the Common Stock pursuant to the terms of the
Option, the Notice of Grant, this Agreement and the Plan.

8.             Withholding.
The Optionholder shall be required to pay to the Company or any Affiliate, and
the Company shall have the right and is hereby authorized to withhold from any 

 6
 

 

compensation paid to the Optionholder by the Company
or an Affiliate, any applicable withholding taxes in respect of the Option, the
grant, vesting, or exercise thereof, or any payment or transfer of Common
Stock, or any other event relating to the Option, and to take such other action
as may be necessary in the opinion of the Company to satisfy all obligations
for the payment of such withholding taxes. The Optionholder may satisfy the
withholding obligations of the Company in a manner designated by the Company,
including by any of the following methods if so designated:  (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares
otherwise issuable to the Optionholder upon exercise of the Option; (iii)
delivering owned and unencumbered shares of Common Stock to the Company; or
(iv) a combination of any of the foregoing.

9.             Entire
Agreement; Governing Law. The Plan is incorporated herein by reference. The
Plan, the Notice of Grant, any Other Agreement listed in the Notice of Grant
and this Agreement 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 Company and the Optionholder with respect to
the subject matter hereof. The Company may amend the terms of the Option; provided
that the rights under any Option shall not be materially impaired by any such
amendment unless the Optionholder consents in writing. This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
the State of California.

10.           Notice.
Any notice, demand or request required or permitted to be given by either the
Company or the Optionholder pursuant to the terms of this Agreement shall be in
writing and shall be deemed given when delivered personally or deposited in the
U.S. Mail, First Class with postage prepaid, and addressed to the parties at
the address of the Optionholder set forth in the Notice of Grant or the address
of the Company set forth in the Exercise Notice, or such other address as a
party may request by notifying the other in writing.

11.           Waiver.
No waiver of any breach or default hereunder shall be considered valid unless
in writing, and no such waiver shall be deemed a waiver of any subsequent
breach or default of the same or similar nature.

12.           Successors
and Assigns. Except as otherwise expressly provided herein, this Agreement
shall be binding upon and inure to the benefit of the Company and its
successors and assigns and the Optionholder and his or her heirs and personal
representatives.

13.           Severability.
If any provision of this Agreement shall be invalid or unenforceable, such
invalidity or unenforceability shall attach only to such provision and shall
not in any manner affect or render invalid or unenforceable any other severable
provision of this Agreement, and this Agreement shall be carried out as if any
such invalid or unenforceable provision were not contained herein.

14.           Further
Assurances. The Optionholder hereby agrees to do such further acts and
things and to execute and deliver to the Company such additional conveyances,
assignments, agreements, certificates and instruments as the Company from time
to time may reasonably require or deem reasonably advisable to carry into
effect this Agreement or to further assure and confirm unto the Company the
rights, powers and remedies intended to be granted hereunder or under the Plan.

15.           NO
GUARANTEE OF CONTINUED SERVICE. THE OPTIONHOLDER ACKNOWLEDGES AND AGREES
THAT THE VESTING OF THE OPTION PURSUANT TO THE VESTING SCHEDULE SET OUT IN THE
NOTICE OF GRANT IS EARNED ONLY 

 7
 

 

BY CONTINUING AS AN EMPLOYEE, DIRECTOR, OR CONSULTANT AT
THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED
AN OPTION OR PURCHASING SHARES HEREUNDER). THE OPTIONHOLDER FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH IN THE NOTICE OF GRANT DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN
EMPLOYEE, DIRECTOR, OR CONSULTANT FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT
ALL, AND SHALL NOT INTERFERE WITH THE OPTIONHOLDER’S RIGHT OR THE COMPANY’S
RIGHT TO TERMINATE THE OPTIONHOLDER’S RELATIONSHIP (I) AS AN EMPLOYEE AT ANY
TIME, FOR ANY REASON OR NO REASON, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT
NOTICE; (II) AS A CONSULTANT PURSUANT TO THE TERMS OF THE OPTIONHOLDER’S
CONSULTING AGREEMENT WITH THE COMPANY OR AN AFFILIATE; OR (III) AS A DIRECTOR OR
A DIRECTOR OF AN AFFILIATE PURSUANT TO THE BYLAWS OF THE COMPANY OR THE
AFFILIATE, AS THE CASE MAY BE, AND ANY APPLICABLE PROVISIONS OF THE CORPORATE
LAW OF THE STATE OR OTHER JURISDICTION IN WHICH THE COMPANY OR THE AFFILIATE IS
DOMICILED, AS THE CASE MAY BE.

By the Optionholder’s signature in the Notice of
Grant, the Optionholder agrees that the Option is granted under and governed by
the terms and conditions of the Plan and this Agreement. The Optionholder has
reviewed the Plan and this Agreement in their entirety, has had an opportunity
to obtain the advice of counsel prior to executing this Agreement and fully understands
all provisions of the Plan and this Agreement. The Optionholder hereby agrees
to accept as binding, conclusive and final all decisions or interpretations of
the Board of Directors (or any Committee to whom the Board has delegated
administration of the Plan) upon any questions relating to the Plan and this
Agreement. The Optionholder further agrees to notify the Company upon any
change in the residence address indicated in the Notice of Grant.

 8
 

 

EXHIBIT
A-2

ENTERPRISE
INFORMATICS INC.

2007
STOCK INCENTIVE PLAN

EXERCISE
NOTICE

Enterprise Informatics
Inc.

c/o [                          ]

10052 Mesa Ridge Court, Suite #100

San Diego, California  92121

Attention: John Low, Secretary

1.             Exercise
of Option. Effective as of today,                           ,
200 , the undersigned (“Purchaser”) hereby elects to purchase                           
shares (the “Shares”) of the Common Stock of Enterprise Informatics Inc. (the “Company”)
under and pursuant to the Company’s 2007 Stock Incentive Plan (the “Plan”) and
the Notice of Stock Option Grant and attached Stock Option Agreement dated                           ,
200  (together, the “Option Agreement”). The total purchase price for the
Shares shall be $                          ,
as required by the Option Agreement.

2.             Delivery
of Payment. Purchaser herewith delivers to the Company the full purchase
price for the Shares in the form of:

o    Cash
or check in the amount of $                           .

if permitted by the Committee:

o
         by payment under an
arrangement with a broker where payment is made pursuant to an irrevocable
commitment by a broker to deliver in the future all or part of the proceeds
from the sale of the shares of Common Stock otherwise issuable to the
Optionholder upon the exercise of the Option (or portion thereof).

o
         by tendering (either
physically or by attestation) whole shares of Common Stock owned by the
Optionholder and having a Fair Market Value on the date of exercise equal to
the Exercise Price, but only if such tender will not result in an accounting
charge to the Company.

o
         by the Company
withholding from the shares of Common Stock otherwise issuable to the
Optionholder upon the exercise of the Option (or portion thereof) the whole
number of shares of Common Stock (rounded down) having a Fair Market Value on
the date of exercise sufficient to satisfy the Exercise Price.

3.             Representations
of Purchaser.

(a)           Purchaser
has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

 9
 

 

(b)           Purchaser
agrees: (i) to provide such additional documents as the Company may require
pursuant to the terms of the Plan, (ii) to provide for the payment by Purchaser
to the Company (in the manner designated by the Company) of the Company’s
withholding obligation, if any, relating to the exercise of this Option or the
issuance of the Shares, and (iii) if this exercise relates to an Incentive
Stock Option, to notify the Company in writing promptly 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.

(c)           Purchaser
hereby makes the following certifications and representations with respect to
the Shares, which are being acquired by the Purchaser in compliance with
applicable law upon exercise of the Option as set forth above:

(i)            If
Purchaser is an officer and/or director of the Company, Purchaser has
communicated with the Company to determine whether he or she is subject to
Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and if so:

·              Purchaser has reviewed his or her
transactions relative to Section 16 of the Exchange Act (“Section 16”);

·              The Company has informed the
Purchaser that the grant of the Option is exempt from Section 16(b) of the
Exchange Act either because (i) it was approved by the Company’s board of
directors or a committee of the board of directors that is composed solely of
two (2) or more “non-employee directors” (as that term is defined in the rules
issued under Section 16), or (ii) Purchaser has held the Option for six (6)
months or more, and, therefore, this transaction may not be matched with a
nonexempt purchase; and

·              Purchaser understands that the
filing of a Form 4 with the U.S. Securities and Exchange Commission will be
required because of this transaction.

(ii)           Purchaser
understands that if he or she is an officer and/or director of the Company,
Purchaser may be deemed an “affiliate” of the Company and is therefore subject
to certain of the conditions set forth in Rule 144 of the Securities Act of
1933, as amended.

(iii)          Purchaser
further acknowledges 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 applicable, as well as any
legends reflecting restrictions pursuant to applicable securities laws.
Purchaser agrees that the Shares are being acquired in accordance with and
subject to the terms, provisions and conditions of his or her Option Agreement,
this Agreement and the Plan, to all of which the Purchaser hereby expressly
assents. This Agreement shall inure to the benefit of and be binding upon the
Purchaser’s heirs, executors, administrators, successors and assigns.

(iv)          If
Purchaser is selling some or all of these Shares in accordance with the terms
of the Company’s “same day sale” program, Purchaser does not have access to,
nor is Purchaser aware of, any nonpublic, material information regarding the
Company that could or has influenced his or her decision to sell these Shares.

(v)           Purchaser
hereby agrees to notify the Company upon the transfer or sale or other
disposition of the Shares acquired under any Incentive Stock Option exercise
and agrees to hold 

 10
 

 

the Company harmless regarding the reporting of income
subject to the disposition of these Shares.

(vi)          Purchaser
further acknowledges that he or she has received a copy of the prospectus
prepared by the Company, which provides information regarding the Company, the
Plan and the Shares.

(vii)         Purchaser
represents that he or she is entitled to exercise the Option with respect to
the number of Shares that the Purchaser wishes to purchase hereby.

4.             Rights
as Shareholder. Until the issuance (as evidenced by the appropriate entry
on the books of the Company or of a duly authorized transfer agent of the
Company) of the Shares, no right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the shares of the Company’s
Common Stock subject to the Option, notwithstanding the exercise of the Option.
The Shares so acquired shall be issued to the Optionholder as soon as
practicable after exercise of the Option. No adjustment will be made for a
dividend or other right for which the record date is prior to the date of
issuance, except as provided in Section 11 of the Plan.

5.             Tax
Consultation. Purchaser understands that Purchaser may suffer adverse tax
consequences as a result of Purchaser’s purchase or disposition of the Shares.
Purchaser represents that Purchaser has consulted with any tax consultants
Purchaser deems advisable in connection with the purchase or disposition of the
Shares and that Purchaser is not relying on the Company for any tax advice.

6.             Entire
Agreement; Governing Law. The Plan and Option Agreement are incorporated
herein by reference. This Agreement, the Plan and the Option Agreement 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
Company and Purchaser with respect to the subject matter hereof, and may not be
modified adversely to the Purchaser’s interest except by means of a writing
signed by the Company and Purchaser. This agreement is governed by the internal
substantive laws, but not the choice of law rules, of the State of California.

Submitted by:

	
  

  	
  Date

  	
   

  
	
  [Purchaser]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Address]

  	
   

  	
   

  

 

Accepted by:

ENTERPRISE INFORMATICS INC.

	
  By:

  	
   

  	
  Date

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

10052 Mesa Ridge Court,
Suite #100

San Diego, California  92121

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]