Document:

THIS
      WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
      OR ANY OTHER SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED,
      PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE REGISTRATION
      STATEMENT COVERING SUCH SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER
      APPLICABLE SECURITIES LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY
      TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

    

    IN
      ADDITION, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
MAY
      NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR BE THE SUBJECT
      OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD
      RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF SUCH SECURITIES BY ANY PERSON
      FOR A PERIOD OF SIX (6) MONTHS IMMEDIATELY FOLLOWING THE DATE OF EFFECTIVENESS
      OF THE PUBLIC OFFERING OF THE COMPANY’S SECURITIES PURSUANT TO REGISTRATION
      STATEMENT NO.: 333-139534
      AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, EXCEPT IN ACCORDANCE
      WITH
      NASD RULE 2710(G)(2).

    

    RESPONSE
      GENETICS, INC.

    

    UNDERWRITERS’
      WARRANT

    

    [                     
       ] shares of Common Stock

    

    [                      
      ], 2007

    

    This
      UNDERWRITERS’ WARRANT
      (this
“Warrant”)
      of
      Response Genetics, Inc., a corporation duly organized and validly existing
      under
      the laws of the State of Delaware (the “Company”),
      is
      being issued pursuant to that certain Underwriting Agreement, dated as of
[                  
       ], 2007 (the “Underwriting
      Agreement”),
      by
      and between the Company and Maxim Group LLC, the representative of the
      underwriters named therein (the “Representative”)
      relating to a firm commitment public offering (the “Offering”)
      of
      [                  
 ] shares of common stock, $0.01 par value per share, of the Company (the
“Common
      Stock”)
      underwritten by the Representative and the underwriters named in the
      Underwriting Agreement.

    

    FOR
      VALUE RECEIVED,
      the
      Company hereby grants to
      [                    
] and [his/her/its] permitted successors and assigns (collectively, the
“Holder”)
      the
      right to purchase from the Company up to
      [                   
 ]
      ([                    
 ]) [5%
      of the shares sold in the offering in the aggregate]
      shares
      of Common Stock (such shares underlying this Warrant, the “Warrant
      Shares”),
      at a
      per share purchase price equal to $[110%
      of offering price]
      (the
“Exercise
      Price”),
      subject to the terms, conditions and adjustments set forth below in this
      Warrant. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1. Date
      of Warrant Exercise.
      This
      Warrant shall become exercisable on the date that is six (6) months from the
      Base Date (the “Exercise
      Date”).
      As
      used in this Warrant, the term “Base
      Date”
shall
      mean
      [                      ],
      2007. Except as otherwise provided for herein or as permitted by applicable
      rules of the National Association of Securities Dealers, Inc., this Warrant
      shall not be sold, transferred, assigned, pledged or hypothecated prior to
      the
      Exercise Date.

    

    2.
       Expiration
      of Warrant.
      This
      Warrant shall expire on the five (5) year anniversary of the Base Date (the
      “Expiration
      Date”).

    

    3.
       Exercise
      of Warrant.
      This
      Warrant shall be exercisable pursuant to the terms of this Section
      3.

    

    3.1
       Manner
      of Exercise.
      

    

    (a) This
      Warrant may only be exercised by the Holder hereof on or after the Exercise
      Date
      and on or prior to the Expiration Date, in accordance with the terms and
      conditions hereof, in whole or in part (but not as to fractional shares) with
      respect to any portion of this Warrant, during the Company’s normal business
      hours on any day other than a Saturday or a Sunday or a day on which commercial
      banking institutions in New York, New York are authorized by law to be closed
      (a
“Business
      Day”),
      by
      surrender of this Warrant to the Company at its office maintained pursuant
      to
      Section 10.2(a) hereof, accompanied by a written exercise notice in the form
      attached as Exhibit
      A
      to this
      Warrant (or a reasonable facsimile thereof) duly executed by the Holder,
      together with the payment of the aggregate Exercise Price for the number of
      Warrant Shares purchased upon exercise of this Warrant. Upon surrender of this
      Warrant, the Company shall cancel this Warrant document and shall, in the event
      of partial exercise, replace it with a new Warrant document in accordance with
      Section 3.3

    

    (b) Except
      as
      provided for in Section 3.1(c) below, each exercise of this Warrant must be
      accompanied by payment in full of the aggregate Exercise Price in cash by check
      or wire transfer in immediately available funds for the number of Warrant Shares
      being purchased by the Holder upon such exercise. 

    

    (c) The
      aggregate Exercise Price for the number of Warrant Shares being purchased may
      also, in the sole discretion of the Holder, be paid in full or in part on a
      “cashless basis” at the election of the Holder: 

    

    (i)
       in
      the
      form of Common Stock owned by the Holder (based on the Fair Market Value (as
      defined below) of such Common Stock on the date of exercise);

    

    (ii)
       in
      the
      form of Warrant Shares withheld by the Company from the Warrant Shares otherwise
      to be received upon exercise of this Warrant having an aggregate Fair Market
      Value on the date of exercise equal to the aggregate Exercise Price of the
      Warrant Shares being purchased by the Holder; or 

    

    (iii)
       by
      a
      combination of the foregoing, provided that the combined value of all cash
      and
      the Fair Market Value of any shares surrendered to the Company is at least
      equal
      to the aggregate Exercise Price for the number of Warrant Shares being purchased
      by the Holder.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    For
      purposes of this Warrant, the term “Fair
      Market Value”
means
      with respect to a particular date, the average closing price of the Common
      Stock
      for the five (5) trading days immediately preceding the applicable exercise
      herein as officially reported by the principal securities exchange on which
      the
      Common Stock is then listed or admitted to trading, or, if the Common Stock
      is
      not listed or admitted to trading on any securities exchange as determined
      in
      good faith by resolution of the Board of Directors of the Company, based on
      the
      best information available to it.

    

    For
      purposes of illustration of a cashless exercise of this Warrant under Section
      3.1(c)(ii) (or for a portion thereof for which cashless exercise treatment
      is
      requested as contemplated by Section 3.1(c)(iii) hereof), the calculation of
      such exercise shall be as follows:

    

    X
      = Y
      (A-B)/A

    

    where:

    

    X
      =
 the
      number of Warrant
      Shares
      to be issued to the Holder (rounded to the nearest whole share).

    

    Y
      =
 the
      number of Warrant
      Shares
      with respect to which this Warrant
      is being
      exercised.

    

    A
      =
 the
      Fair
      Market Value of the Common Stock.

    

    B
      =
 the
      Exercise Price.

    

    (d) For
      purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is intended,
      understood, and acknowledged that the Common Stock issuable upon exercise of
      this Warrant in a cashless exercise transaction as described in Section 3.1(c)
      above shall be deemed to have been acquired at the time this Warrant was issued.
      Moreover, it is intended, understood, and acknowledged that the holding period
      for the Common Stock issuable upon exercise of this Warrant in a cashless
      exercise transaction as described in Section 3.1(c) above shall be deemed to
      have commenced on the date this Warrant was issued.

    

    3.2 When
      Exercise Effective.
      Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the Business Day on which this Warrant shall have
      been duly surrendered to the Company as provided in Sections 3.1 and 12 hereof,
      and, at such time, the Holder in whose name any certificate or certificates
      for
      Warrant Shares shall be issuable upon exercise as provided in Section 3.3 hereof
      shall be deemed to have become the holder or holders of record thereof of the
      number of Warrant Shares purchased upon exercise of this Warrant. 

    

    
      
         

      

      
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    3.3 Delivery
      of Common Stock Certificates and New Warrant.
      As soon
      as reasonably practicable after each exercise of this Warrant, in whole or
      in
      part, and in any event within five (5) Business Days thereafter, the Company,
      at
      its expense (including the payment by it of any applicable issue taxes), will
      cause to be issued in the name of and delivered to the Holder hereof or, subject
      to Sections 9 and 10 hereof, as the Holder (upon payment by the Holder of any
      applicable transfer taxes) may direct:

    

    (a) a
      certificate or certificates (with appropriate restrictive legends, as
      applicable) for the number of duly authorized, validly issued, fully paid and
      nonassessable Warrant Shares to which the Holder shall be entitled upon
      exercise; and 

    

    (b) in
      case
      exercise is in part only, a new Warrant document of like tenor, dated the date
      hereof, for the remaining number of Warrant Shares issuable upon exercise of
      this Warrant after giving effect to the partial exercise of this Warrant
      (including the delivery of any Warrant Shares as payment of the Exercise Price
      for such partial exercise of this Warrant). 

    

    4. Certain
      Adjustments.
      For so
      long as this Warrant is outstanding:

    

    4.1 Mergers
      or Consolidations.
      If at
      any time after the date hereof there shall be a capital reorganization (other
      than a combination or subdivision of Common Stock otherwise provided for herein)
      resulting in a reclassification to or change in the terms of securities issuable
      upon exercise of this Warrant (a “Reorganization”),
      or a
      merger or consolidation of the Company with another corporation, association,
      partnership, organization, business, individual, government or political
      subdivision thereof or a governmental agency (a “Person”
or
      the
“Persons”)
      (other
      than a merger with another Person in which the Company is a continuing
      corporation and which does not result in any reclassification or change in
      the
      terms of securities issuable upon exercise of this Warrant or a merger effected
      exclusively for the purpose of changing the domicile of the Company) (a
“Merger”),
      then,
      as a part of such Reorganization or Merger, lawful provision and adjustment
      shall be made so that the Holder shall thereafter be entitled to receive, upon
      exercise of this Warrant, the number of shares of stock or any other equity
      or
      debt securities or property receivable upon such Reorganization or Merger by
      a
      holder of the number of shares of Common Stock which might have been purchased
      upon exercise of this Warrant immediately prior to such Reorganization or
      Merger. In any such case, appropriate adjustment shall be made in the
      application of the provisions of this Warrant with respect to the rights and
      interests of the Holder after the Reorganization or Merger to the end that
      the
      provisions of this Warrant (including adjustment of the Exercise Price then
      in
      effect and the number of Warrant Shares) shall be applicable after that event,
      as near as reasonably may be, in relation to any shares of stock, securities,
      property or other assets thereafter deliverable upon exercise of this Warrant.
      The provisions of this Section 4.1 shall similarly apply to successive
      Reorganizations and/or Mergers.

    

    4.2 Splits
      and Subdivisions; Dividends.
      In the
      event the Company should at any time or from time to time effectuate a split
      or
      subdivision of the outstanding shares of Common Stock or pay a dividend in
      or
      make a distribution payable in additional shares of Common Stock or Common
      Stock
      Equivalents without payment of any consideration by such holder for the
      additional shares of Common Stock or Common Stock Equivalents (including the
      additional shares of Common Stock issuable upon conversion or exercise thereof),
      then, as of the applicable record date (or the date of such distribution, split
      or subdivision if no record date is fixed), the per share Exercise Price shall
      be appropriately decreased and the number of Warrant Shares shall be
      appropriately increased in proportion to such increase (or potential increase)
      of outstanding shares; provided, however, that no adjustment shall be made
      in
      the event the split, subdivision, dividend or distribution is not effectuated.
      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    4.3 Combination
      of Shares.
      If the
      number of shares of Common Stock outstanding at any time after the date hereof
      is decreased by a combination of the outstanding shares of Common Stock, the
      per
      share Exercise Price shall be appropriately increased and the number of shares
      of Warrant Shares shall be appropriately decreased in proportion to such
      decrease in outstanding shares. 

    

    4.4 Adjustments
      for Other Distributions.
      In the
      event the Company shall declare a distribution payable in securities of other
      Persons, evidences of indebtedness issued by the Company or other Persons,
      assets (excluding cash dividends or distributions to the holders of Common
      Stock
      paid out of current or retained earnings and declared by the Company’s board of
      directors) or options or rights not referred to in Sections 4.2, 4.3 or 4.4,
      then, in
      each
      such case for the purpose of this Section 4.5, upon exercise of this Warrant,
      the Holder shall be entitled to a proportionate share of any such distribution
      as though the Holder was the actual record holder of the number of Warrant
      Shares as of the record date fixed for the determination of the holders of
      Common Stock of the Company entitled to receive such distribution. 

    

    5. No
      Impairment.
      The
      Company will not, by amendment of its articles of incorporation or by-laws
      or
      through any consolidation, merger, reorganization, transfer of assets,
      dissolution, issue or sale of securities or any other voluntary action, avoid
      or
      seek to avoid the observance or performance of any of the terms of this Warrant,
      but will at all times in good faith assist in the carrying out of all of the
      terms and in the taking of all actions necessary or appropriate in order to
      protect the rights of the Holder against impairment. 

    

    6. Chief
      Financial Officer’s Report as to Adjustments.
      With
      respect to each adjustment pursuant to Section 4 of this Warrant, the Company,
      at its expense, will promptly compute the adjustment or re-adjustment in
      accordance with the terms of this Warrant and cause its Chief Financial Officer
      to certify the computation (other than any computation of the fair value of
      property of the Company, as the case may be) and prepare a report setting forth,
      in reasonable detail, the event requiring the adjustment or re-adjustment and
      the amount of such adjustment or re-adjustment, the method of calculation
      thereof and the facts upon which the adjustment or re-adjustment is based,
      and
      the Exercise Price and the number of Warrant Shares or other securities
      purchasable hereunder after giving effect to such adjustment or re-adjustment,
      which report shall be mailed by first class mail, postage prepaid to the Holder.
      The Company will also keep copies of all reports at its office maintained
      pursuant to Section 10.2(a) hereof and will cause them to be available for
      inspection at the office during normal business hours upon reasonable notice
      by
      the Holder or any prospective purchaser of the Warrant designated by the Holder
      thereof. 

    

    
      
         

      

      
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    7. Reservation
      of Shares.
      The
      Company shall, solely for the purpose of effecting the exercise of this Warrant,
      at all times during the term of this Warrant, reserve and keep available out
      of
      its authorized shares of Common Stock, free from all taxes, liens and charges
      with respect to the issue thereof and not subject to preemptive rights or other
      similar rights of shareholders of the Company, such number of its shares of
      Common Stock as shall from time to time be sufficient to effect in full the
      exercise of this Warrant. If at any time the number of authorized but unissued
      shares of Common Stock shall not be sufficient to effect in full the exercise
      of
      this Warrant, in addition to such other remedies as shall be available to
      Holder, the Company will promptly take such corporate action as may, in the
      opinion of its counsel, be necessary to increase the number of authorized but
      unissued shares of Common Stock to such number of shares as shall be sufficient
      for such purposes, including without limitation, using its Reasonable Best
      Efforts (as defined in Section 14 hereof) to obtain the requisite shareholder
      approval necessary to increase the number of authorized shares of Common Stock.
      The Company hereby represents and warrants that all shares of Common Stock
      issuable upon exercise of this Warrant shall be duly authorized and, when issued
      and paid for upon exercise, shall be validly issued, fully paid and
      nonassessable.

    

    8. Registration
      and Listing.
      

    

    8.1 Definition
      of Registrable Securities; Majority.
      As used
      herein, the term “Registrable
      Securities”
means
      any shares of Common Stock issuable upon the exercise of this Warrant, until
      the
      date (if any) on which such shares shall have been transferred or exchanged
      and
      new certificates for them not bearing a legend restricting further transfer
      shall have been delivered by the Company and subsequent disposition of them
      shall not require registration or qualification of them under the Securities
      Act
      or any similar state law then in force. For purposes of this Warrant, the term
      “Majority”,
      in
      reference to the holders of Registrable Securities, shall mean in excess of
      fifty percent (50%) of the then outstanding Warrant Shares (assuming the
      exercise of the entire Warrant) that: (i) are not held by the Company, an
      affiliate, officer, creditor, employee or agent thereof or any of their
      respective affiliates, members of their family, Persons acting as nominees
      or in
      conjunction therewith and (ii) have not be resold to the public pursuant to
      a
      registration statement filed under the Securities Act.

    

    8.2 Required
      Registration.
      

    

    (a) At
      any
      time on or after the Exercise Date and on or before the five (5) year
      anniversary of the Base Date, but in no event on more than one (1) occasion,
      upon the written request of the holders of the Registrable Securities
      representing a Majority of such Registrable Securities, the Company will use
      its
      Reasonable Best Efforts to effect the registration of the respective shares
      of
      the holders of Registrable Securities under the Securities Act to
      the
      extent requisite to permit the public disposition thereof as expeditiously
      as
reasonably
      possible, but in no event later than 120 days from the date of such
      request.

    

    (b) Registration
      of Registrable Securities under this Section 8.2 shall be on such appropriate
      registration form: (i) as shall be selected by the Company, and (ii) as shall
      permit the public disposition of such Registrable Securities in accordance
      with
      this Section 8.2. The Company agrees to include in any such registration
      statement all information which the requesting holders of Registrable Securities
      shall reasonably request, which is required to be contained therein. The Company
      will pay all Registration Expenses in connection with each registration of
      Registrable Securities pursuant to this Section 8.2.

    

    
      
         

      

      
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    (c) A
      registration requested pursuant to this Section 8.2 shall not be deemed to
      have
      been effected: (i) unless a registration statement with respect thereto has
      become effective or (ii) if, after it has become effective, such registration
      is
      interfered with by any stop order, injunction or other order or requirement
      of
      the Securities and Exchange Commission (the “SEC”)
      or
      other governmental agency or court of competent jurisdiction for any reason,
      other than by reason of some act or omission by a holder of Registrable
      Securities.

    

    8.3 Incidental
      Registration Rights.

    

    (a) If
      the
      Company, at any time on or after the Exercise Date and on or before the five
      (5)
      year anniversary of the Base Date, proposes to register any of its securities
      under the Securities Act (other than in connection with a registration on Form
      S-4 or S-8 or any successor forms) whether for its own account or for the
      account of any holder or holders of its shares other than Registrable Securities
      (any shares of such holder or holders (but not those of the Company and not
      Registrable Securities) with respect to any registration are referred to herein
      as, “Other
      Shares”),
      the
      Company shall each such time give prompt (but not less than thirty (30) days
      prior to the anticipated effectiveness thereof) written notice to the holders
      of
      Registrable Securities of its intention to do so. Upon the written request
      of
      any such holder of Registrable Securities made within twenty (20) days after
      the
      receipt of any such notice (which request shall specify the Registrable
      Securities intended to be disposed of by such holder), except as set forth
      in
      Section 8.3(b), the Company will use its Reasonable Best Efforts to effect
      the
      registration under the Securities Act of all of the Registrable Securities
      which
      the Company has been so requested to register by such holder, to the extent
      requisite to permit the disposition of the Registrable Securities so to be
      registered, by inclusion of such Registrable Securities in the registration
      statement which covers the securities which the Company proposes to register;
      provided,
      however,
      that if,
      at any time after giving written notice of its intention to register any
      securities and prior to the effective date of the registration statement filed
      in connection with such registration, the Company shall determine for any reason
      in its sole discretion either to not register, to delay or to withdraw
      registration of such securities, the Company may, at its election, give written
      notice of such determination to such holder and, thereupon: (i) in the case
      of a
      determination not to register, shall be relieved of its obligation to register
      any Registrable Securities in connection with such registration (but not from
      its obligation to pay the Registration Expenses in connection therewith),
      without prejudice, however, to the rights of the holders of Registrable
      Securities entitled to request that such registration be effected as a
      registration under Section 8.2, (ii) in the case of a determination to delay
      registration, shall be permitted to delay registering any Registrable Securities
      for the same period as the delay in registering such other securities (including
      the Other Shares), without prejudice, however, to the rights of the holders
      of
      Registrable Securities entitled to request that such registration be effected
      as
      a registration under Section 8.2 and (iii) in the case of a determination to
      withdraw registration, shall be permitted to withdraw registration, without
      prejudice, however, to the rights of the holders of Registrable Securities
      entitled to request that such registration be effected as a registration under
      Section 8.2. No registration effected under this Section 8.3 shall relieve
      the
      Company of its obligation to effect any registration upon request under Section
      8.2, nor shall any such registration hereunder be deemed to have been effected
      pursuant to Section 8.2. The Company will pay all Registration Expenses in
      connection with each registration of Registrable Securities pursuant to this
      Section 8.3. 

    

    
      
         

      

      
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    (b) If
      the
      Company at any time proposes to register any of its securities under the
      Securities Act as contemplated by this Section 8.3 and such securities are
      to be
      distributed by or through one or more underwriters, the Company will, if
      requested by a holder of Registrable Securities, use its Reasonable Best Efforts
      to arrange for such underwriters to include all the Registrable Securities
      to be
      offered and sold by such holder among the securities to be distributed by such
      underwriters, provided that if the managing underwriter of such underwritten
      offering shall inform the Company by letter of its belief that inclusion in
      such
      distribution of all or a specified number of such securities proposed to be
      distributed by such underwriters would interfere with the successful marketing
      of the securities being distributed by such underwriters (such letter to state
      the basis of such belief and the approximate number of such Registrable
      Securities, such Other Shares and shares held by the Company proposed so to
      be
      registered which may be distributed without such effect), then the Company
      may,
      upon written notice to such holder, the other holders of Registrable Securities,
      and holders of such Other Shares, reduce pro rata in accordance with the number
      of shares of Common Stock desired to be included in such registration (if and
      to
      the extent stated by such managing underwriter to be necessary to eliminate
      such
      effect) the number of such Registrable Securities and Other Shares the
      registration of which shall have been requested by each holder thereof so that
      the resulting aggregate number of such Registrable Securities and Other Shares
      so included in such registration, together with the number of securities to
      be
      included in such registration for the account of the Company, shall be equal
      to
      the number of shares stated in such managing underwriter’s letter. 

    

    8.4 Registration
      Procedures.
      Whenever the holders of Registrable Securities have properly requested that
      any
      Registrable Securities be registered pursuant to the terms of this Warrant,
      the
      Company shall use its Reasonable Best Efforts to effect the registration and
      the
      sale of such Registrable Securities in accordance with the intended method
      of
      disposition thereof, and pursuant thereto the Company shall as expeditiously
      as
      possible:

    

    (a) prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use its Reasonable Best Efforts to cause such registration
      statement to become effective;

     

    (b) notify
      such holders of the effectiveness of each registration statement filed hereunder
      and prepare and file with the SEC such amendments and supplements to such
      registration statement and the prospectus used in connection therewith as may
      be
      necessary to (i) keep such registration statement effective and the prospectus
      included therein usable for a period commencing on the date that such
      registration statement is initially declared effective by the SEC and ending
      on
      the date when all Registrable Securities covered by such registration statement
      have been sold pursuant to the registration statement or cease to be Registrable
      Securities, and (ii) comply with the provisions of the Securities Act with
      respect to the disposition of all securities covered by such registration
      statement during such period in accordance with the intended methods of
      disposition by the sellers thereof set forth in such registration
      statement;

     

    
      
         

      

      
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    (c) furnish
      to such holders such number of copies of such registration statement, each
      amendment and supplement thereto, the prospectus included in such registration
      statement (including each preliminary prospectus) and such other documents
      as
      such seller may reasonably request in order to facilitate the disposition of
      the
      Registrable Securities owned by such holders;

    

    (d) use
      its
      Reasonable Best Efforts to register or qualify such Registrable Securities
      under
      such other securities or blue sky laws of such jurisdictions as such holders
      reasonably request and do any and all other acts and things which may be
      reasonably necessary or advisable to enable such holders to consummate the
      disposition in such jurisdictions of the Registrable Securities owned by such
      holders; provided,
      however,
      that the
      Company shall not be required to: (i) qualify generally to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      subparagraph; (ii) subject itself to taxation in any such jurisdiction; or
      (iii)
      consent to general service of process in any such jurisdiction;

    

    (e) notify
      such holders, at any time when a prospectus relating thereto is required to
      be
      delivered under the Securities Act, of the happening of any event as a result
      of
      which the prospectus included in such registration statement contains an untrue
      statement of a material fact or omits any material fact necessary to make the
      statements therein, in light of the circumstances in which they are made, not
      materially misleading, and, at the reasonable request of such holders, the
      Company shall prepare a supplement or amendment to such prospectus so that,
      as
      thereafter delivered to the purchasers of such Registrable Securities, such
      prospectus shall not contain an untrue statement of a material fact or omit
      to
      state any material fact necessary to make the statements therein, in light
      of
      the circumstances in which they are made, not materially
      misleading;

    

    (f) provide
      a
      transfer agent and registrar for all such Registrable Securities not later
      than
      the effective date of such registration statement;

    

    (g) make
      available for inspection by any underwriter participating in any disposition
      pursuant to such registration statement, and any attorney, accountant or other
      agent retained by any such underwriter, all financial and other records,
      pertinent corporate documents and properties of the Company, and cause the
      Company’s officers, directors, managers, employees and independent accountants
      to supply all information reasonably requested by any such underwriter,
      attorney, accountant or agent in connection with such registration
      statement;

    

    (h) otherwise
      use its Reasonable Best Efforts to comply with all applicable rules and
      regulations of the SEC, and make available to its security holders, as soon
      as
      reasonably practicable, an earnings statement of the Company, which earnings
      statement shall satisfy the provisions of Section 11(a) of the Securities Act
      and, at the option of the Company, Rule 158 thereunder;

    

    (i) in
      the
      event of the issuance of any stop order suspending the effectiveness of a
      registration statement, or of any order suspending or preventing the use of
      any
      related prospectus or suspending the qualification of any Registrable Securities
      included in such registration statement for sale in any jurisdiction, the
      Company shall use its Reasonable Best Efforts promptly to obtain the withdrawal
      of such order;

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (j) use
      its
      Reasonable Best Efforts to cause any Registrable Securities covered by such
      registration statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary to enable the sellers
      thereof to consummate the disposition of such Registrable Securities;
      and

    

    (k) if
      the
      offering is underwritten, use its Reasonable Best Efforts to furnish on the
      date
      that Registrable Securities are delivered to the underwriters for sale pursuant
      to such registration, an opinion dated such date of counsel representing the
      Company for the purposes of such registration, addressed to the underwriters
      covering such issues as are reasonably required by such
      underwriters.

    

    8.5 Listing.
      The
      Company shall secure the listing of the Common Stock underlying this Warrant
      upon each national securities exchange or automated quotation system upon which
      shares of Common Stock are then listed or quoted (subject to official notice
      of
      issuance) and shall maintain such listing of shares of Common Stock. The Company
      shall at all times comply in all material respects with the Company’s reporting,
      filing and other obligations under the by-laws or rules of the American Stock
      Exchange (or such other national securities exchange or market on which the
      Common Stock may then be listed, as applicable).

    

    8.6 Expenses.
      The
      Company shall pay all Registration Expenses relating to the registration and
      listing obligations set forth in this Section 8. For purposes of this Warrant,
      the term “Registration
      Expenses”
means:
      (a)
      all
      registration, filing and NASD fees, (b) all reasonable fees and expenses of
      complying with securities or blue sky laws, (c) all word processing, duplicating
      and printing expenses, (d) the fees and disbursements of counsel for the Company
      and of its independent public accountants, including the expenses of any special
      audits or “cold comfort” letters required by or incident to such performance and
      compliance, (e) premiums and other costs of policies of insurance (if any)
      against liabilities arising out of the public offering of the Registrable
      Securities being registered if the Company desires such insurance, if any,
      and
      (f) fees and disbursements of one counsel for the selling holders of Registrable
      Securities; provided
      however,
      that, in
      any case where Registration Expenses are not to be borne by the Company, such
      expenses shall not include (and such expenses shall be borne by the Company):
      (i) salaries of Company personnel or general overhead expenses of the Company,
      (ii) auditing fees, (iii) premiums or other expenses relating to liability
      insurance required by underwriters of the Company, or (iv) other expenses for
      the preparation of financial statements or other data, to the extent that any
      of
      the foregoing either is normally prepared by the Company in the ordinary course
      of its business or would have been incurred by the Company had no public
      offering taken place. Registration Expenses shall not include any underwriting
      discounts and commissions which may be incurred in the sale of any Registrable
      Securities and transfer taxes of the selling holders of Registrable
      Securities.

     

    8.7 Information
      Provided by Holders.
      Any
      holder of Registrable Securities included in any registration shall furnish
      to
      the Company such information as the Company may reasonably request in writing
      to
      enable the Company to comply with the provisions hereof in connection with
      any
      registration referred to in this Warrant.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    8.8 NASD
      Cobradesk Filings.
      In the
      event that a registration statement covering the Registrable Securities is
      filed, within one (1) Business Day of the filing of such registration statement,
      the Company will prepare and file the selling stockholder resale offering
      described in such registration statement for review by the National Association
      of Securities Dealers, Inc. (“NASD”)
      via
      the NASD’s CobraDesk filing system (“CobraDesk
      Filing”)
      for
      the purpose of having the prospectus contained within such registration
      statement treated as a “base prospectus” in connection with such resale
      offering. The Company will use its Reasonable Best Efforts to have the CobraDesk
      Filing approved by the NASD within thirty (30) days of such filing date. The
      Company shall bear all expenses of the CobraDesk Filing, including fees and
      expenses of counsel or other advisors to the Holder. In all circumstances,
      the
      Company shall pay for all NASD filing fees associated with the CobraDesk Filing.
      

    

    8.9 Effectiveness
      Period.
      The
      Company shall use its Reasonable Best Efforts to keep each registration
      statement contemplated hereunder continuously effective under the Securities
      Act
      until the date which is the earlier date of when (i) all Registrable Securities
      covered by such Registration Statement have been sold or (ii) all Registrable
      Securities covered by such Registration Statement may be sold immediately
      without registration under the Securities Act and without volume restrictions
      pursuant to Rule 144(k) under the Securities Act, as determined by the counsel
      to the Company pursuant to a written opinion letter to such effect, addressed
      and reasonably acceptable to the Company’s transfer agent and the affected
      holders of Registrable Securities.

    

    8.10 Net
      Cash Settlement.
      Notwithstanding anything herein to the contrary, in no event will the Holder
      hereof be entitled to receive a net-cash settlement as liquidated damages in
      lieu of physical settlement in shares of Common Stock, regardless of whether
      the
      Common Stock underlying this Warrant is registered pursuant to an effective
      registration statement; provided, however, that the foregoing will not preclude
      the Holder from seeking other remedies at law or equity for breaches by the
      Company of its registration obligations hereunder, it being agreed, however, that such remedies resulting from legal claims for damages shall not exceed 20% of the fair market value of the aggregate registered shares to be delivered to the Holder upon the exercise of this Warrant.

    

    9. Restrictions
      on Transfer.

    

    9.1 Restrictive
      Legends.
      This
      Warrant and each Warrant issued upon transfer or in substitution for this
      Warrant pursuant to Section 10 hereof, each certificate for Common Stock issued
      upon the exercise of the Warrant and each certificate issued upon the transfer
      of any such Common Stock shall be transferable only upon satisfaction of the
      conditions specified in this Section 9. Each of the foregoing securities shall
      be stamped or otherwise imprinted with a legend reflecting the restrictions
      on
      transfer set forth herein and any restrictions required under the Securities
      Act
      or other applicable securities laws.

    

    9.2 Notice
      of Proposed Transfer.
      Prior
      to any transfer of any securities which are not registered under an effective
      registration statement under the Securities Act (“Restricted
      Securities”),
      which
      transfer may only occur if there is an exemption from the registration
      provisions of the Securities Act and all other applicable securities laws,
      the
      Holder will give written notice to the Company of the Holder’s intention to
      effect a transfer (and shall describe the manner and circumstances of the
      proposed transfer). The following provisions shall apply to any proposed
      transfer of Restricted Securities:

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (i) If
      in the
      opinion of counsel for the Holder reasonably satisfactory to the Company the
      proposed transfer may be effected without registration of the Restricted
      Securities under the Securities Act (which opinion shall state in detail the
      basis of the legal conclusions reached therein), the Holder shall thereupon
      be
      entitled to transfer the Restricted Securities in accordance with the terms
      of
      the notice delivered by the Holder to the Company. Each certificate representing
      the Restricted Securities issued upon or in connection with any transfer shall
      bear the restrictive legends required by Section 9.1 hereof.

    

    (ii) If
      the
      opinion called for in (i) above is not delivered, the Holder shall not be
      entitled to transfer the Restricted Securities until either: (x) receipt by
      the
      Company of a further notice from such Holder pursuant to the foregoing
      provisions of this Section 9.2 and fulfillment of the provisions of clause
      (i)
      above, or (y) such Restricted Securities have been effectively registered under
      the Securities Act.

    

    9.3 Certain
      Other Transfer Restrictions.
      Notwithstanding any other provision of this Section 9: (i) prior to the Exercise
      Date, this Warrant or the Restricted Securities thereunder may only be
      transferred or assigned to the persons permitted under NASD Rule 2710(g), and
      (ii) no opinion of counsel shall be necessary for a transfer of Restricted
      Securities by the holder thereof to any Person employed by or owning equity
      in
      the Holder, if the transferee agrees in writing to be subject to the terms
      hereof to the same extent as if the transferee were the original purchaser
      hereof and such transfer is permitted under applicable securities laws.

    

    9.4
       Termination
      of Restrictions.
      Except
      as set forth in Section 9.3 hereof, the restrictions imposed by this Section
      9
      upon the transferability of Restricted Securities shall cease and terminate
      as
      to any particular Restricted Securities: (a) which shall have been effectively
      registered under the Securities Act, or (b) when, in the opinions of both
      counsel for the holder thereof and counsel for the Company, such restrictions
      are no longer required in order to insure compliance with the Securities Act
      or
      Section 10 hereof. Whenever such restrictions shall cease and terminate as
      to
      any Restricted Securities, the Holder thereof shall be entitled to receive
      from
      the Company, without expense (other than applicable transfer taxes, if any),
      new
      securities of like tenor not bearing the applicable legends required by Section
      9.1 hereof.

    

    10.
       Ownership,
      Transfer, Sale and Substitution of Warrant.

    

    10.1 Ownership
      of Warrant.
      The
      Company may treat any Person in whose name this Warrant is registered in the
      Warrant Register maintained pursuant to Section 10.2(b) hereof as the owner
      and
      holder thereof for all purposes, notwithstanding any notice to the contrary,
      except that, if and when any Warrant is properly assigned in blank, the Company
      may (but shall not be obligated to) treat the bearer thereof as the owner of
      such Warrant for all purposes, notwithstanding any notice to the contrary.
      Subject to Sections 9 and 10 hereof, this Warrant, if properly assigned, may
      be
      exercised by a new holder without a new Warrant first having been issued.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    10.2 Office;
      Exchange of Warrant.

    

    (a) The
      Company will maintain its principal office at the location identified in the
      prospectus relating to the Offering or at such other offices as set forth in
      the
      Company’s most current filing (as of the date notice is to be given) under the
      Exchange Act or as the Company otherwise notifies the Holder.

    

    (b) The
      Company shall cause to be kept at its office maintained pursuant to Section
      10.2(a) hereof a Warrant Register for the registration and transfer of the
      Warrant. The name and address of the holder of the Warrant, the transfers
      thereof and the name and address of the transferee of the Warrant shall be
      registered in such Warrant Register. The Person in whose name the Warrant shall
      be so registered shall be deemed and treated as the owner and holder thereof
      for
      all purposes of this Warrant, and the Company shall not be affected by any
      notice or knowledge to the contrary.

    

    (c) Upon
      the
      surrender of this Warrant, properly endorsed, for registration of transfer
      or
      for exchange at the office of the Company maintained pursuant to Section 10.2(a)
      hereof, the Company at its expense will (subject to compliance with Section
      9
      hereof, if applicable) execute and deliver to or upon the order of the Holder
      thereof a new Warrant of like tenor, in the name of such holder or as such
      holder (upon payment by such holder of any applicable transfer taxes) may
      direct, calling in the aggregate on the face thereof for the number of shares
      of
      Common Stock called for on the face of the Warrant so surrendered (after giving
      effect to any previous adjustment(s) to the number of Warrant
      Shares).

    

    10.3
       Replacement
      of Warrant.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, upon delivery of indemnity reasonably
      satisfactory to the Company in form and amount or, in the case of any
      mutilation, upon surrender of this Warrant for cancellation at the office of
      the
      Company maintained pursuant to Section 10.2(a) hereof, the Company, at its
      expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor
      and dated the date hereof.

    

    10.4 Opinions.
      In
      connection with the sale of the Warrant Shares by Holder, the Company agrees
      to
      cooperate with the Holder, and at the Company’s expense, have its counsel
      provide any legal opinions required to remove the restrictive legends from
      the
      Warrant Shares in connection with a sale, transfer or legend removal request
      of
      Holder. 

    

    11.
       No
      Rights or Liabilities as Stockholder.
      No
      Holder shall be entitled to vote or receive dividends or be deemed the holder
      of
      any shares of Common Stock or any other securities of the Company which may
      at
      any time be issuable on the exercise hereof for any purpose, nor shall anything
      contained herein be construed to confer upon the Holder, as such, any of the
      rights of a stockholder of the Company or any right to vote for the election
      of
      directors or upon any matter submitted to stockholders at any meeting thereof,
      or to give or withhold consent to any corporate action (whether upon any
      recapitalization, issuance of stock, reclassification of stock, change of par
      value, consolidation, merger, conveyance, or otherwise) or to receive notice
      of
      meetings, or to receive dividends or subscription rights or otherwise until
      the
      Warrant shall have been exercised and the shares of Common Stock purchasable
      upon the exercise hereof shall have become deliverable, as provided herein.
      The
      Holder will not be entitled to share in the assets of the Company in the event
      of a liquidation, dissolution or the winding up of the Company.

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    12.
       Notices.
      Any
      notice or other communication in connection with this Warrant shall be given
      in
      writing and directed to the parties hereto as follows: (a) if to the Holder,
      [                
           ], Fax No:
      [                   
 ]; or (b) if to the Company, to the attention of its Chief Executive
      Officer at its office maintained pursuant to Section 10.2(a) hereof;
provided,
      that the
      exercise of the Warrant shall also be effected in the manner provided in Section
      3 hereof. Notices shall be deemed properly delivered and received when delivered
      to the notice party (i) if personally delivered, upon receipt or refusal to
      accept delivery, (ii) if sent via facsimile, upon mechanical confirmation of
      successful transmission thereof generated by the sending telecopy machine,
      (iii)
      if sent by a commercial overnight courier for delivery on the next Business
      Day,
      on the first Business Day after deposit with such courier service, or (iv)
      if
      sent by registered or certified mail, five (5) Business Days after deposit
      thereof in the U.S. mail.

    

    13. Payment
      of Taxes.
      The
      Company will pay all documentary stamp taxes attributable to the issuance of
      shares of Common Stock underlying this Warrant upon exercise of this Warrant;
      provided,
      however,
      that the
      Company shall not be required to pay any tax which may be payable in respect
      of
      any transfer involved in the transfer or registration of this Warrant or any
      certificate for shares of Common Stock underlying this Warrant in a name other
      that of the Holder. The Holder is responsible for all other tax liability that
      may arise as a result of holding or transferring this Warrant or receiving
      shares of Common Stock underlying this Warrant upon exercise
      hereof.

    

    14.
       Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of the change, waiver, discharge or termination is sought. This Warrant shall
      be
      construed and enforced in accordance with and governed by the laws of the State
      of New Jersey. The section headings in this Warrant are for purposes of
      convenience only and shall not constitute a part hereof. When used herein,
      the
      term “Reasonable
      Best Efforts”
means,
      with respect to the applicable obligation of the Company, reasonable best
      efforts for similarly situated, publicly-traded companies.

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Underwriters’ Warrant to be duly executed as of the date
      first above written.

     

    
      	 	 	 
	 	RESPONSE
              GENETICS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title: 

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    FORM
      OF EXERCISE NOTICE

    [To
      be
      executed only upon exercise of Warrant]

    

    To
      RESPONSE GENETICS, INC.:

    

    The
      undersigned registered holder of the within Warrant hereby irrevocably exercises
      the Warrant pursuant to Section 3.1 of the Warrant with respect to __________
      Warrant Shares, at an exercise price per share of
      $[              ],
      and requests that the certificates for such Warrant Shares be issued, subject
      to
      Sections 9 and 10, in the name of, and delivered to:

    

    ______________________________________

    ______________________________________

    ______________________________________

    ______________________________________

    

    The
      undersigned is hereby making payment for the Warrant Shares in the following
      manner: [check one]

    

    [     
      ] by
      cash
      in accordance with Section 3.1(b) of the Warrant

    

    [     
      ] via
      cashless exercise in accordance with Section 3.1(c) of the Warrant in the
      following manner:

    

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    

    The
      undersigned hereby represents and warrants that it is, and has been since its
      acquisition of the Warrant, the record and beneficial owner of the
      Warrant.

    

    Dated:
      _______________ 

    

    ________________________________________

    Print
      or
      Type Name

    

    ________________________________________

    (Signature
      must conform in all respects to name of holder as specified on the face of
      Warrant)

    

    ________________________________________

    (Street
      Address)

    

    ________________________________________

    (City)
      (State) (Zip Code)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    FORM
      OF ASSIGNMENT

    [To
      be
      executed only upon transfer of Warrant]

    

    For
      value
      received, the undersigned registered holder of the within Warrant hereby sells,
      assigns and transfers unto _____________________ [include name and addresses]
      the rights represented by the Warrant to purchase __________ shares of Common
      Stock of RESPONSE GENETICS, INC. to which the Warrant relates, and appoints
      _____________________ Attorney to make such transfer on the books of RESPONSE
      GENETICS, INC. maintained for the purpose, with full power of substitution
      in
      the premises.

    

    

    Dated:  
      ________________________________________

    (Signature
      must conform in all respects 

    to
      name
      of holder as specified on the

    face
      of
      Warrant)

    

    ________________________________________

    (Street
      Address)

    

    ________________________________________

    (City)
      (State) (Zip Code)

    

    Signed
      in
      the presence of:

    

    ________________________________________

    (Signature
      of Transferee)

    

    ________________________________________

    (Street
      Address)

    

    ________________________________________

    (City)
      (State) (Zip Code)

     

    Signed
      in
      the presence of:Unassociated Document

    
      Exhibit
        10.13

    

     

    RESPONSE
      GENETICS, INC.

    

    2006
      EMPLOYEE, DIRECTOR AND CONSULTANT STOCK PLAN

    

    
      	1.	
              DEFINITIONS.

            

    

    

    
      	 	
              Unless
                otherwise specified or unless the context otherwise requires, the
                following terms, as used in this Response Genetics, Inc. 2006 Employee,
                Director and Consultant Stock Plan, have the following
                meanings:

            

    

    

    
      	 	 	
              Administrator
                means the Board of Directors, unless it has delegated power to act
                on its
                behalf to the Committee, in which case the Administrator means the
                Committee.

            

    

    

    
      	 	 	
              Affiliate
                means a corporation which, for purposes of Section 424 of the Code,
                is a
                parent or subsidiary of the Company, direct or
                indirect.

            

    

    

    
      	 	 	
              Agreement
                means an agreement between the Company and a Participant delivered
                pursuant to the Plan, in such form as the Administrator shall
                approve.

            

    

    

    
      	 	 	
              Board
                of Directors
                means the Board of Directors of the
                Company.

            

    

    

    
      	 	 	
              Code
                means the United States Internal Revenue Code of 1986, as
                amended.

            

    

    

    
      	 	 	
              Committee
                means the committee of the Board of Directors to which the Board
                of
                Directors has delegated power to act under or pursuant to the provisions
                of the Plan.

            

    

    

    
      	 	 	
              Common
                Stock
                means shares of the Company’s common stock, $.01 par value per
                share.

            

    

    

    
      	 	 	
              Company
                means Response Genetics, Inc., a Delaware corporation.

            

    

    

    
      	 	 	
              Disability
                or
                Disabled
                means permanent and total disability as defined in Section 22(e)(3)
                of the
                Code.

            

    

    

    
      	 	 	
              Employee
                means any employee of the Company or of an Affiliate (including,
                without
                limitation, an employee who is also serving as an officer or director
                of
                the Company or of an Affiliate), designated by the Administrator
                to be
                eligible to be granted one or more Stock Rights under the
                Plan.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	 	 	
              Fair
                Market Value
                of
                a Share of Common Stock means:

            

    

    

    (1) If
      the
      Common Stock is listed on a national securities exchange or traded in the
      over-the-counter market and sales prices are regularly reported for the Common
      Stock, the closing or last price of the Common Stock on the composite tape
      or
      other comparable reporting system for the trading day on the applicable date
      and
      if such applicable date is not a trading day, the last market trading day prior
      to such date; 

    

    (2) If
      the
      Common Stock is not traded on a national securities exchange but is traded
      on
      the over-the-counter market, if sales prices are not regularly reported for
      the
      Common Stock for the trading day referred to in clause (1), and if bid and
      asked prices for the Common Stock are regularly reported, the mean between
      the
      bid and the asked price for the Common Stock at the close of trading in the
      over-the-counter market for the trading day on which Common Stock was traded
      on
      the applicable date and if such applicable date is not a trading day, the last
      market trading day prior to such date; and

    

    (3) If
      the
      Common Stock is neither listed on a national securities exchange nor traded
      in
      the over-the-counter market, such value as the Board, in good faith, shall
      determine.

    

    
      	 	 	
              ISO
                means an option meant to qualify as an incentive stock option under
                Section 422 of the Code.

            

    

    

    
      	 	 	
              Non-Qualified
                Option
                means an option which is not intended to qualify as an
                ISO.

            

    

    

    
      	 	 	
              Option
                means an ISO or Non-Qualified Option granted under the
                Plan.

            

    

    

    
      	 	 	
              Participant
                means an Employee, director or consultant of the Company or an Affiliate
                to whom one or more Stock Rights are granted under the Plan. As
                used herein, “Participant” shall include “Participant’s Survivors” where
                the context requires.

            

    

    

    
      	 	 	
              Plan
                means this Response Genetics, Inc. 2006 Employee, Director and Consultant
                Stock Plan.

            

    

    

    
      	 	 	
              Shares
                means shares of the Common Stock as to which Stock Rights have been
                or may
                be granted under the Plan or any shares of capital stock into which
                the
                Shares are changed or for which they are exchanged within the provisions
                of Paragraph 3 of the Plan. The Shares issued under the Plan may be
                authorized and unissued shares or shares held by the Company in its
                treasury, or both.

            

    

    

    
      	 	 	
              Stock-Based
                Award
                means a grant by the Company under the Plan of an equity award or
                an
                equity based award which is not an Option or a Stock Grant.
                

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	 	 	
              Stock
                Grant
                means a grant by the Company of Shares under the
                Plan.

            

    

    

    
      	 	 	
              Stock
                Right
                means a right to Shares or the value of Shares of the Company granted
                pursuant to the Plan -- an ISO, a Non-Qualified Option, a Stock Grant
                or a
                Stock-Based Award.

            

    

    

    
      	 	 	
              Survivor
                means a deceased Participant’s legal representatives and/or any person or
                persons who acquired the Participant’s rights to a Stock Right by will or
                by the laws of descent and
                distribution.

            

    

    

    
      	2.	
              PURPOSES
                OF THE PLAN.

            

    

    

    The
      Plan
      is intended to encourage ownership of Shares by Employees and directors of
      and
      certain consultants to the Company and its Affiliates in order to attract and
      retain such people, to induce them to work for the benefit of the Company or
      of
      an Affiliate and to provide additional incentive for them to promote the success
      of the Company or of an Affiliate. The Plan provides for the granting of ISOs,
      Non-Qualified Options, Stock Grants and Stock-Based Awards.

    

    
      	
              3.

            	
              SHARES
                SUBJECT TO THE PLAN.

            

    

    

    (a)
      The number of Shares which may be
      issued from time to time pursuant to this Plan shall be the sum of: (i)
      2,160,000 shares of Common Stock and (ii) any shares of Common Stock that are
      represented by awards granted under the Company’s 2000 Stock Option Plan that
      are forfeited, expire or are cancelled without delivery of shares of Common
      Stock or which result in the forfeiture of shares of Common Stock back to the
      Company on or after October 18, 2006, or the equivalent of such number of Shares
      after the Administrator, in its sole discretion, has interpreted the effect
      of
      any stock split, stock dividend, combination, recapitalization or similar
      transaction in accordance with Paragraph 24 of this Plan; provided, however,
      that no more than 210,000 Shares shall be added to the Plan pursuant to this
      provision. 

    

    (b) Notwithstanding
      Subparagraph
      (a) above, on the first day of each fiscal year of the Company during the period
      beginning in fiscal year 2008, and ending on the second day of fiscal year
      2017,
      the number of Shares that may be issued from time to time pursuant to the Plan,
      shall be increased by an amount equal to the lesser of (i) 200,000 or the
      equivalent of such number of Shares after the Administrator, in its sole
      discretion, has interpreted the effect of any stock split, stock dividend,
      combination, recapitalization or similar transaction in accordance with
      Paragraph 24 of the Plan; (ii) 5% of the number of outstanding shares of Common
      Stock on such date; and (iii) an amount determined by the Board. However, in
      no
      event shall the number of Shares available for issuance under this Plan be
      increased as set forth in this Subparagraph (c) to the extent such increase,
      in
      addition to any other increases proposed by the Board in the number of shares
      of
      Common Stock available for issuance under all other employee or director stock
      plans, including, without limitation, employee stock purchase plans, would
      result in the total number of shares of Common Stock then available for issuance
      under all employee and director stock plans exceeding 25% of the outstanding
      shares of the Company on the first day of the applicable fiscal
      year.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (c)
      If an
      Option ceases to be “outstanding”, in whole or in part (other than by exercise),
      or if the Company shall reacquire (at not more than its original issuance price)
      any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any
      Stock Right expires or is forfeited, cancelled, or otherwise terminated or
      results in any Shares not being issued, the unissued Shares which were subject
      to such Stock Right shall again be available for issuance from time to time
      pursuant to this Plan. Notwithstanding the foregoing, if a Stock Right is
      exercised, in whole or in part, by tender of Shares or if the Company’s tax
      withholding obligation is satisfied by withholding Shares, the number of Shares
      deemed to have been issued under the Plan for purposes of the limitation set
      forth in Paragraph 3(a) above shall be the number of Shares that were subject
      to
      the Stock Right or portion thereof, and not the net number of Shares actually
      issued.

    

    
      	
              4.

            	
              ADMINISTRATION
                OF THE PLAN.

            

    

    

    The
      Administrator of the Plan will be the Board of Directors, except to the extent
      the Board of Directors delegates its authority to the Committee, in which case
      the Committee shall be the Administrator. Subject to the provisions of the
      Plan,
      the Administrator is authorized to:

    

    
      	 	
              a.

            	
              Interpret
                the provisions of the Plan and all Stock Rights and to make all rules
                and
                determinations which it deems necessary or advisable for the
                administration of the Plan;

            

    

    

    
      	 	
              b.

            	
              Determine
                which Employees, directors and consultants shall be granted Stock
                Rights;

            

    

    

    
      	 	
              c.

            	
              Determine
                the number of Shares for which a Stock Right or Stock Rights shall
                be
                granted,
                provided,
                however, that in no event shall Stock Rights with respect to more
                than
                1,000,000 Shares be granted to any Participant in any fiscal
                year;

            

    

    

    
      	 	
              d.

            	
              Specify
                the terms and conditions upon which a Stock Right or Stock Rights
                may be
                granted; 

            

    

    

    
      	 	
              e.

            	
              Make
                changes to any outstanding Stock Right, including, without limitation,
                to
                reduce or increase the exercise price or purchase price, accelerate
                the
                vesting schedule or extend the expiration date, provided that no
                such
                change shall impair the rights of a Participant under any grant previously
                made without such Participant’s consent;

            

    

    

    
      	 	
              f.

            	
              Buy
                out for a payment in cash or Shares, a Stock Right previously granted
                and/or cancel any such Stock Right and grant in substitution therefor
                other Stock Rights, covering the same or a different number of Shares
                and
                having an exercise price or purchase price per share which may be
                lower or
                higher than the exercise price or purchase price of the cancelled
                Stock
                Right, based on such terms and conditions as the Administrator shall
                establish and the Participant shall accept;
                and

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    
      	 	
              g.

            	
              Adopt
                any sub-plans applicable to residents of any specified jurisdiction
                as it
                deems necessary or appropriate in order to comply with or take advantage
                of any tax or other laws applicable to the Company or to Plan Participants
                or to otherwise facilitate the administration of the Plan, which
                sub-plans
                may include additional restrictions or conditions applicable to Stock
                Rights or Shares issuable pursuant to a Stock
                Right.

            

    

    

    provided,
      however, that all such interpretations, rules, determinations, terms and
      conditions shall be made and prescribed in the context of not causing any
      adverse tax consequences pursuant to Section 409A of the Code and preserving
      the
      tax status under Section 422 of the Code of those Options which are designated
      as ISOs. Subject to the foregoing, the interpretation and construction by the
      Administrator of any provisions of the Plan or of any Stock Right granted under
      it shall be final, unless otherwise determined by the Board of Directors, if
      the
      Administrator is the Committee. In addition, if the Administrator is the
      Committee, the Board of Directors may take any action under the Plan that would
      otherwise be the responsibility of the Committee.

    

    To
      the
      extent permitted under applicable law, the Board of Directors or the Committee
      may allocate all or any portion of its responsibilities and powers to any one
      or
      more of its members and may delegate all or any portion of its responsibilities
      and powers to any other person selected by it. The Board of Directors or the
      Committee may revoke any such allocation or delegation at any time.

    

    
      	5.	
              ELIGIBILITY
                FOR PARTICIPATION.

            

    

    

    The
      Administrator will, in its sole discretion, name the Participants in the Plan,
      provided, however, that each Participant must be an Employee, director or
      consultant of the Company or of an Affiliate at the time a Stock Right is
      granted. Notwithstanding the foregoing, the Administrator may authorize the
      grant of a Stock Right to a person not then an Employee, director or consultant
      of the Company or of an Affiliate; provided, however, that the actual grant
      of
      such Stock Right shall be conditioned upon such person becoming eligible to
      become a Participant at or prior to the time of the execution of the Agreement
      evidencing such Stock Right. ISOs may be granted only to Employees.
      Non-Qualified Options, Stock Grants and Stock-Based Awards may be granted to
      any
      Employee, director or consultant of the Company or an Affiliate. The granting
      of
      any Stock Right to any individual shall neither entitle that individual to,
      nor
      disqualify him or her from, participation in any other grant of Stock
      Rights.

    

    
      	6.	
              TERMS
                AND CONDITIONS OF OPTIONS.

            

    

    

    Each
      Option shall be set forth in writing in an Option Agreement, duly executed
      by
      the Company and, to the extent required by law or requested by the Company,
      by
      the Participant. The Administrator may provide that Options be granted subject
      to such terms and conditions, consistent with the terms and conditions
      specifically required under this Plan, as the Administrator may deem appropriate
      including, without limitation, subsequent approval by the shareholders of the
      Company of this Plan or any amendments thereto. The Option Agreements shall
      be
      subject to at least the following terms and conditions:

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	 	
              a.

            	
              Non-Qualified
                Options:
                Each Option intended to be a Non-Qualified Option shall be subject
                to the
                terms and conditions which the Administrator determines to be appropriate
                and in the best interest of the Company, subject to the following
                minimum
                standards for any such Non-Qualified
                Option:

            

    

    

    
      	 	 	
              i.

            	
              Option
                Price:
                Each Option Agreement shall state the option price (per share) of
                the
                Shares covered by each Option, which option price shall be determined
                by
                the Administrator but shall not be less than the
                Fair Market Value per share of Common Stock.

            

    

    

    
      	 	 	
              ii.

            	
              Number
                of Shares:
                Each Option Agreement shall state the number of Shares to which it
                pertains.

            

    

     

    
      	 	 	
              iii.

            	
              Option
                Periods:
                Each Option Agreement shall state the date or dates on which it first
                is
                exercisable and the date after which it may no longer be exercised,
                and
                may provide that the Option rights accrue or become exercisable in
                installments over a period of months or years, or upon the occurrence
                of
                certain conditions or the attainment of stated goals or
                events.

            

    

    

    
      	 	 	
              iv.

            	
              Option
                Conditions:
                Exercise of any Option may be conditioned upon the Participant’s execution
                of a Share purchase agreement in form satisfactory to the Administrator
                providing for certain protections for the Company and its other
                shareholders, including requirements
                that:

            

    

    

    
      	 	 	 	
              A.

            	
              The
                Participant’s or the Participant’s Survivors’ right to sell or transfer
                the Shares may be restricted; and

            

    

    

    
      	 	 	 	
              B.

            	
              The
                Participant or the Participant’s Survivors may be required to execute
                letters of investment intent and must also acknowledge that the Shares
                will bear legends noting any applicable
                restrictions.

            

    

    

    
      	 	
              b.

            	
              ISOs:
                Each Option intended to be an ISO shall be issued only to an Employee
                and
                be subject to the following terms and conditions, with such additional
                restrictions or changes as the Administrator determines are appropriate
                but not in conflict with Section 422 of the Code and relevant regulations
                and rulings of the Internal Revenue
                Service:

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    
      	 	 	
              i.

            	
              Minimum
                standards:
                The ISO shall meet the minimum standards required of Non-Qualified
                Options, as described in Paragraph 6(a) above, except clause (i)
                thereunder.

            

    

    

    
      	 	 	
              ii.

            	
              Option
                Price:
                Immediately before the ISO is granted, if the Participant owns, directly
                or by reason of the applicable attribution rules in Section 424(d) of
                the Code:

            

    

    

    
      	 	 	 	
              A.

            	
              10%
                or
                less
                of
                the total combined voting power of all classes of stock of the Company
                or
                an Affiliate, the Option price per share of the Shares covered by
                each ISO
                shall not be less than 100% of the Fair Market Value per share of
                the
                Shares on the date of the grant of the Option;
                or

            

    

    

    
      	 	 	 	
              B.

            	
              More
                than 10% of the total combined voting power of all classes of stock
                of the
                Company or an Affiliate, the Option price per share of the Shares
                covered
                by each ISO shall not be less than 110% of the Fair Market Value
                on the
                date of grant.

            

    

    

    
      	 	 	
              iii.

            	
              Term
                of Option:
                For Participants who own:

            

    

    

    
      	 	 	 	
              A.

            	
              10%
                or
                less
                of
                the total combined voting power of all classes of stock of the Company
                or
                an Affiliate, each ISO shall terminate not more than ten years from
                the
                date of the grant or at such earlier time as the Option Agreement
                may
                provide; or

            

    

    

    
      	 	 	 	
              B.

            	
              More
                than 10% of the total combined voting power of all classes of stock
                of the
                Company or an Affiliate, each ISO shall terminate not more than five
                years
                from the date of the grant or at such earlier time as the Option
                Agreement
                may provide.

            

    

    

    
      	 	 	
              iv.

            	
              Limitation
                on Yearly Exercise:
                The Option Agreements shall restrict the amount of ISOs which may
                become
                exercisable in any calendar year (under this or any other ISO plan
                of the
                Company or an Affiliate) so that the aggregate Fair Market Value
                (determined at the time each ISO is granted) of the stock with respect
                to
                which ISOs are exercisable for the first time by the Participant
                in any
                calendar year does not exceed
                $100,000.

            

    

    

    
      	
              7.

            	
              TERMS
                AND CONDITIONS OF STOCK GRANTS.

            

    

    

    Each
      offer of a Stock Grant to a Participant shall state the date prior to which
      the
      Stock Grant must be accepted by the Participant, and the principal terms of
      each
      Stock Grant shall be set forth in an Agreement, duly executed by the Company
      and, to the extent required by law or requested by the Company, by the
      Participant. The Agreement shall be in a form approved by the Administrator
      and
      shall contain terms and conditions which the Administrator determines to be
      appropriate and in the best interest of the Company, subject to the following
      minimum standards:

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (a)

            	
              Each
                Agreement shall state the purchase price (per share), if any, of
                the
                Shares covered by each Stock Grant, which purchase price shall be
                determined by the Administrator but shall not be less than the minimum
                consideration required by the Delaware General Corporation Law on
                the date
                of the grant of the Stock Grant;

            

    

    

    
      	 	
              (b)

            	
              Each
                Agreement shall state the number of Shares to which the Stock Grant
                pertains; and

            

    

    

    
      	 	
              (c)

            	
              Each
                Agreement shall include the terms of any right of the Company to
                restrict
                or reacquire the Shares subject to the Stock Grant, including the
                time and
                events upon which such rights shall accrue and the purchase price
                therefor, if any.

            

    

    

    
      	
              8.

            	
              TERMS
                AND CONDITIONS OF OTHER STOCK-BASED AWARDS.
                

            

    

    

    The
      Administrator shall have the right to grant other Stock-Based Awards based
      upon
      the Common Stock having such terms and conditions as the Administrator may
      determine, including, without limitation, the grant of Shares based upon certain
      conditions, the grant of securities convertible into Shares and the grant of
      stock appreciation rights, phantom stock awards or stock units. The principal
      terms of each Stock-Based Award shall be set forth in an Agreement, duly
      executed by the Company and, to the extent required by law or requested by
      the
      Company, by the Participant. The Agreement shall be in a form approved by the
      Administrator and shall contain terms and conditions which the Administrator
      determines to be appropriate and in the best interest of the Company.

    

    
      	9.	
              EXERCISE
                OF OPTIONS AND ISSUE OF SHARES.

            

    

    

    An
      Option
      (or any part or installment thereof) shall be exercised by giving written notice
      to the Company or its designee, together with provision for payment of the
      full
      purchase price in accordance with this Paragraph for the Shares as to which
      the
      Option is being exercised, and upon compliance with any other condition(s)
      set
      forth in the Option Agreement. Such notice shall be signed by the person
      exercising the Option, shall state the number of Shares with respect to which
      the Option is being exercised and shall contain any representation required
      by
      the Plan or the Option Agreement. Payment of the purchase price for the Shares
      as to which such Option is being exercised shall be made (a) in United
      States dollars in cash or by check, or (b) at the discretion of the
      Administrator, through delivery of shares of Common Stock having a Fair Market
      Value equal as of the date of the exercise to the cash exercise price of the
      Option and held for at least six months, or (c) at the discretion of the
      Administrator, by having the Company retain from the shares otherwise issuable
      upon exercise of the Option, a number of shares having a Fair Market Value
      equal
      as of the date of exercise to the exercise price of the Option, or (d) at the
      discretion of the Administrator, by delivery of the grantee’s personal recourse
      note bearing interest payable not less than annually at no less than 100% of
      the
      applicable Federal rate, as defined in Section 1274(d) of the Code, or
      (e) at the discretion of the Administrator, in accordance with a cashless
      exercise program established with a securities brokerage firm, and approved
      by
      the Administrator, or (f) at the discretion of the Administrator, by any
      combination of (a), (b), (c), (d) and (e) above or (g) at the discretion of
      the
      Administrator, payment of such other lawful consideration as the Administrator
      may determine. Notwithstanding the foregoing, the Administrator shall accept
      only such payment on exercise of an ISO as is permitted by Section 422 of the
      Code.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    The
      Company shall then reasonably promptly deliver the Shares as to which such
      Option was exercised to the Participant (or to the Participant’s Survivors, as
      the case may be). In determining what constitutes “reasonably promptly,” it is
      expressly understood that the issuance and delivery of the Shares may be delayed
      by the Company in order to comply with any law or regulation (including, without
      limitation, state securities or “blue sky” laws) which requires the Company to
      take any action with respect to the Shares prior to their issuance. The Shares
      shall, upon delivery, be fully paid, non-assessable Shares.

    

    The
      Administrator shall have the right to accelerate the date of exercise of any
      installment of any Option; provided that the Administrator shall not accelerate
      the exercise date of any installment of any Option granted to an Employee as
      an
      ISO (and not previously converted into a Non-Qualified Option pursuant to
      Paragraph 27) without the prior approval of the Employee if such acceleration
      would violate the annual vesting limitation contained in Section 422(d) of
      the
      Code, as described in Paragraph 6(b)(iv).

    

    The
      Administrator may, in its discretion, amend any term or condition of an
      outstanding Option provided (i) such term or condition as amended is permitted
      by the Plan, (ii) any such amendment shall be made only with the consent of
      the
      Participant to whom the Option was granted, or in the event of the death of
      the
      Participant, the Participant’s Survivors, if the amendment is adverse to the
      Participant, and (iii) any such amendment of any Option shall be made only
      after
      the Administrator determines whether such amendment would constitute a
“modification” of any Option which is an ISO (as that term is defined in Section
      424(h) of the Code) or would cause any adverse tax consequences for the holder
      of any Option including, but not limited to, pursuant to Section 409A of the
      Code.

    

    
      	
              10.

            	
              ACCEPTANCE
                OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES.

            

    

    

    A
      Stock
      Grant or Stock-Based Award (or any part or installment thereof) shall be
      accepted by executing the applicable Agreement and delivering it to the Company
      or its designee, together with provision for payment of the full purchase price,
      if any, in accordance with this Paragraph for the Shares as to which such Stock
      Grant or Stock-Based Award is being accepted, and upon compliance with any
      other
      conditions set forth in the applicable Agreement. Payment of the purchase price
      for the Shares as to which such Stock Grant or Stock-Based Award is being
      accepted shall be made (a) in United States dollars in cash or by check, or
      (b)
      at the discretion of the Administrator, through delivery of shares of Common
      Stock held for at least six months and having a Fair Market Value equal as
      of
      the date of acceptance of the Stock Grant or Stock Based-Award to the purchase
      price of the Stock Grant or Stock-Based Award, or (c) at the discretion of
      the
      Administrator, by delivery of the grantee’s personal recourse note bearing
      interest payable not less than annually at no less than 100% of the applicable
      Federal rate, as defined in Section 1274(d) of the Code, or (d) at the
      discretion of the Administrator, by any combination of (a), (b) and (c) above;
      or (e) at the discretion of the Administrator, payment of such other lawful
      consideration as the Administrator may determine.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    The
      Company shall then, if required by the applicable Agreement, reasonably promptly
      deliver the Shares as to which such Stock Grant or Stock-Based Award was
      accepted to the Participant (or to the Participant’s Survivors, as the case may
      be), subject to any escrow provision set forth in the applicable Agreement.
      In
      determining what constitutes “reasonably promptly,” it is expressly understood
      that the issuance and delivery of the Shares may be delayed by the Company
      in
      order to comply with any law or regulation (including, without limitation,
      state
      securities or “blue sky” laws) which requires the Company to take any action
      with respect to the Shares prior to their issuance.

    

    The
      Administrator may, in its discretion, amend any term or condition of an
      outstanding Stock Grant, Stock-Based Award or applicable Agreement provided
      (i)
      such term or condition as amended is permitted by the Plan, (ii) any such
      amendment shall be made only with the consent of the Participant to whom the
      Stock Grant or Stock-Based Award was made, if the amendment is adverse to the
      Participant, and (iii) any such amendment shall be made only after the
      Administrator determines whether such amendment would cause any adverse tax
      consequences to the Participant, including, but not limited to, pursuant to
      Section 409A of the Code.

    

    
      	
              11.

            	
              RIGHTS
                AS A SHAREHOLDER.

            

    

    

    No
      Participant to whom a Stock Right has been granted shall have rights as a
      shareholder with respect to any Shares covered by such Stock Right, except
      after
      due exercise of the Option or acceptance of the Stock Grant or as set forth
      in
      any Agreement, and tender of the full purchase price, if any, for the Shares
      being purchased pursuant to such exercise or acceptance and registration of
      the
      Shares in the Company’s share register in the name of the
      Participant.

    

    
      	
              12.

            	
              ASSIGNABILITY
                AND TRANSFERABILITY OF STOCK RIGHTS.

            

    

    

    By
      its
      terms, a Stock Right granted to a Participant shall not be transferable by
      the
      Participant other than (i) by will or by the laws of descent and distribution,
      or (ii) as approved by the Administrator in its discretion and set forth in
      the
      applicable Agreement. Notwithstanding the foregoing, an ISO transferred except
      in compliance with clause (i) above shall no longer qualify as an ISO. The
      designation of a beneficiary of a Stock Right by a Participant, with the prior
      approval of the Administrator and in such form as the Administrator shall
      prescribe, shall not be deemed a transfer prohibited by this Paragraph. Except
      as provided above, a Stock Right shall only be exercisable or may only be
      accepted, during the Participant’s lifetime, by such Participant (or by his or
      her legal representative) and shall not be assigned, pledged or hypothecated
      in
      any way (whether by operation of law or otherwise) and shall not be subject
      to
      execution, attachment or similar process. Any attempted transfer, assignment,
      pledge, hypothecation or other disposition of any Stock Right or of any rights
      granted thereunder contrary to the provisions of this Plan, or the levy of
      any
      attachment or similar process upon a Stock Right, shall be null and
      void.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              13.

            	
              EFFECT
                ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR
                DISABILITY.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Option Agreement, in the event of a
      termination of service (whether as an employee, director or consultant) with
      the
      Company or an Affiliate before the Participant has exercised an Option, the
      following rules apply:

    

    
      	 	
              a.

            	
              A
                Participant who ceases to be an employee, director or consultant
                of the
                Company or of an Affiliate (for any reason other than termination
“for
                cause”, Disability, or death for which events there are special rules in
                Paragraphs 14, 15, and 16, respectively), may exercise any Option
                granted
                to him or her to the extent that the Option is exercisable on the
                date of
                such termination of service, but only within such term as the
                Administrator has designated in a Participant’s Option
                Agreement.

            

    

    

    
      	 	
              b.

            	
              Except
                as provided in Subparagraph (c) below, or Paragraph 15 or 16, in
                no event
                may an Option intended to be an ISO, be exercised later than three
                months
                after the Participant’s termination of
                employment.

            

    

    

    
      	 	
              c.

            	
              The
                provisions of this Paragraph, and not the provisions of Paragraph
                15 or
                16, shall apply to a Participant who subsequently becomes Disabled
                or dies
                after the termination of employment, director status or consultancy;
                provided, however, in the case of a Participant’s Disability or death
                within three months after the termination of employment, director
                status
                or consultancy, the Participant or the Participant’s Survivors may
                exercise the Option within one year after the date of the Participant’s
                termination of service, but in no event after the date of expiration
                of
                the term of the Option.

            

    

    

    
      	 	
              d.

            	
              Notwithstanding
                anything herein to the contrary, if subsequent to a Participant’s
                termination of employment, termination of director status or termination
                of consultancy, but prior to the exercise of an Option, the Board
                of
                Directors determines that, either prior or subsequent to the Participant’s
                termination, the Participant engaged in conduct which would constitute
                “cause”, then such Participant shall forthwith cease to have any right to
                exercise any Option.

            

    

    

    
      	 	
              e.

            	
              A
                Participant to whom an Option has been granted under the Plan who
                is
                absent from the Company or an Affiliate because of temporary disability
                (any disability other than a Disability as defined in Paragraph 1
                hereof),
                or who is on leave of absence for any purpose, shall not, during
                the
                period of any such absence, be deemed, by virtue of such absence
                alone, to
                have terminated such Participant’s employment, director status or
                consultancy with the Company or with an Affiliate, except as the
                Administrator may otherwise expressly provide; provided however that
                for
                ISOs any leave of absence granted by the Administrator of greater
                than
                ninety days unless pursuant to a contract or statute that guarantees
                the
                right to reemployment shall cause such ISO to become a Non-Qualified
                Option.

            

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    
      	 	
              f.

            	
              Except
                as required by law or as set forth in a Participant’s Option Agreement,
                Options granted under the Plan shall not be affected by any change
                of a
                Participant’s status within or among the Company and any Affiliates, so
                long as the Participant continues to be an employee, director or
                consultant of the Company or any
                Affiliate.

            

    

    

    
      	
              14.

            	
              EFFECT
                ON OPTIONS OF TERMINATION OF SERVICE “FOR CAUSE”.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Option Agreement, the following rules
      apply if the Participant’s service (whether as an employee, director or
      consultant) with the Company or an Affiliate is terminated “for cause” prior to
      the time that all his or her outstanding Options have been
      exercised:

    

    
      	 	
              a.

            	
              All
                outstanding and unexercised Options as of the time the Participant
                is
                notified his or her service is terminated “for cause” will immediately be
                forfeited.

            

    

    

    
      	 	
              b.

            	
              For
                purposes of this Plan, “cause” shall include (and is not limited to)
                dishonesty with respect to the Company or any Affiliate, insubordination,
                substantial malfeasance or non-feasance of duty, unauthorized disclosure
                of confidential information, breach by the Participant of any provision
                of
                any employment, consulting, advisory, nondisclosure, non-competition
                or
                similar agreement between the Participant and the Company, and conduct
                substantially prejudicial to the business of the Company or any Affiliate.
                The determination of the Administrator as to the existence of “cause” will
                be conclusive on the Participant and the
                Company.

            

    

    

    
      	 	
              c.

            	
              “Cause”
                is not limited to events which have occurred prior to a Participant’s
                termination of service, nor is it necessary that the Administrator’s
                finding of “cause” occur prior to termination. If the Administrator
                determines, subsequent to a Participant’s termination of service but prior
                to the exercise of an Option, that either prior or subsequent to
                the
                Participant’s termination the Participant engaged in conduct which would
                constitute “cause”, then the right to exercise any Option is
                forfeited.

            

    

    

    
      	 	
              d.

            	
              Any
                provision in an agreement between the Participant and the Company
                or an
                Affiliate, which contains a conflicting definition of “cause” for
                termination and which is in effect at the time of such termination,
                shall
                supersede the definition in this Plan with respect to that
                Participant.

            

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    
      	
              15.

            	
              EFFECT
                ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Option Agreement:

    

    
      	 	
              a.
                

            	
              A
                Participant who ceases to be an employee, director or consultant
                of the
                Company or of an Affiliate by reason of Disability may exercise any
                Option
                granted to such Participant:

            

    

    

    (i) To
      the
      extent that the Option has become exercisable but has not been exercised on
      the
      date of Disability; and

    

    (ii) In
      the
      event rights to exercise the Option accrue periodically, to the extent of a
      pro
      rata portion through the date of Disability of any additional vesting rights
      that would have accrued on the next vesting date had the Participant not become
      Disabled. The proration shall be based upon the number of days accrued in the
      current vesting period prior to the date of Disability.

    

    
      	 	
              b.

            	
              A
                Disabled Participant may exercise such rights only within the period
                ending one year after the date of the Participant’s Disability,
                notwithstanding that the Participant might have been able to exercise
                the
                Option as to some or all of the Shares on a later date if the Participant
                had not become Disabled and had continued to be an employee, director
                or
                consultant or, if earlier, within the originally prescribed term
                of the
                Option.

            

    

    

    
      	 	
              c.

            	
              The
                Administrator shall make the determination both of whether Disability
                has
                occurred and the date of its occurrence (unless a procedure for such
                determination is set forth in another agreement between the Company
                and
                such Participant, in which case such procedure shall be used for
                such
                determination). If requested, the Participant shall be examined by
                a
                physician selected or approved by the Administrator, the cost of
                which
                examination shall be paid for by the
                Company.

            

    

    

    
      	
              16.

            	
              EFFECT
                ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR
                CONSULTANT.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Option Agreement:

    

    
      	 	
              a.

            	
              In
                the event of the death of a Participant while the Participant is
                an
                employee, director or consultant of the Company or of an Affiliate,
                such
                Option may be exercised by the Participant’s
                Survivors:

            

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (i)
       To
      the
      extent that the Option has become exercisable but has not been exercised on
      the
      date of death; and

    

    (ii) In
      the
      event rights to exercise the Option accrue periodically, to the extent of a
      pro
      rata portion through the date of death of any additional vesting rights that
      would have accrued on the next vesting date had the Participant not died. The
      proration shall be based upon the number of days accrued in the current vesting
      period prior to the Participant’s date of death.

    

    
      	 	
              b.

            	
              If
                the Participant’s Survivors wish to exercise the Option, they must take
                all necessary steps to exercise the Option within one year after
                the date
                of death of such Participant, notwithstanding that the decedent might
                have
                been able to exercise the Option as to some or all of the Shares
                on a
                later date if he or she had not died and had continued to be an employee,
                director or consultant or, if earlier, within the originally prescribed
                term of the Option.

            

    

    

    
      	
              17.

            	
              EFFECT
                OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS.

            

    

    

    In
      the
      event of a termination of service (whether as an employee, director or
      consultant) with the Company or an Affiliate for any reason before the
      Participant has accepted a Stock Grant, such offer shall terminate.

    

    For
      purposes of this Paragraph 17 and Paragraph 18 below, a Participant to whom
      a
      Stock Grant has been offered and accepted under the Plan who is absent from
      work
      with the Company or with an Affiliate because of temporary disability (any
      disability other than a Disability as defined in Paragraph 1 hereof), or who
      is
      on leave of absence for any purpose, shall not, during the period of any such
      absence, be deemed, by virtue of such absence alone, to have terminated such
      Participant’s employment, director status or consultancy with the Company or
      with an Affiliate, except as the Administrator may otherwise expressly
      provide.

    

    In
      addition, for purposes of this Paragraph 17 and Paragraph 18 below, any change
      of employment or other service within or among the Company and any Affiliates
      shall not be treated as a termination of employment, director status or
      consultancy so long as the Participant continues to be an employee, director
      or
      consultant of the Company or any Affiliate.

    

    
      	
              18.

            	
              EFFECT
                ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH
                OR DISABILITY.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Stock Grant Agreement, in the event of a
      termination of service (whether as an employee, director or consultant), other
      than termination “for cause,” Disability, or death for which events there are
      special rules in Paragraphs 19, 20, and 21, respectively, before all forfeiture
      provisions or Company rights of repurchase shall have lapsed, then the Company
      shall have the right to cancel or repurchase that number of Shares subject
      to a
      Stock Grant as to which the Company’s forfeiture or repurchase rights have not
      lapsed.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    
      	
              19.

            	
              EFFECT
                ON STOCK GRANTS OF TERMINATION OF SERVICE “FOR CAUSE”.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Stock Grant Agreement, the following rules
      apply if the Participant’s service (whether as an employee, director or
      consultant) with the Company or an Affiliate is terminated “for
      cause”:

    

    
      	 	
              a.

            	
              All
                Shares subject to any Stock Grant shall be immediately subject to
                repurchase by the Company at the purchase price, if any,
                thereof.

            

    

    

    
      	 	
              b.

            	
              For
                purposes of this Plan, “cause” shall include (and is not limited to)
                dishonesty with respect to the employer, insubordination, substantial
                malfeasance or non-feasance of duty, unauthorized disclosure of
                confidential information, breach by the Participant of any provision
                of
                any employment, consulting, advisory, nondisclosure, non-competition
                or
                similar agreement between the Participant and the Company, and conduct
                substantially prejudicial to the business of the Company or any Affiliate.
                The determination of the Administrator as to the existence of “cause” will
                be conclusive on the Participant and the
                Company.

            

    

    

    
      	 	
              c.

            	
              “Cause”
                is not limited to events which have occurred prior to a Participant’s
                termination of service, nor is it necessary that the Administrator’s
                finding of “cause” occur prior to termination. If the Administrator
                determines, subsequent to a Participant’s termination of service, that
                either prior or subsequent to the Participant’s termination the
                Participant engaged in conduct which would constitute “cause,” then the
                Company’s right to repurchase all of such Participant’s Shares shall
                apply.

            

    

    

    
      	 	
              d.

            	
              Any
                provision in an agreement between the Participant and the Company
                or an
                Affiliate, which contains a conflicting definition of “cause” for
                termination and which is in effect at the time of such termination,
                shall
                supersede the definition in this Plan with respect to that
                Participant.

            

    

    

    
      	
              20.

            	
              EFFECT
                ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Stock Grant Agreement, the following rules
      apply if a Participant ceases to be an employee, director or consultant of
      the
      Company or of an Affiliate by reason of Disability: to the extent the forfeiture
      provisions or the Company’s rights of repurchase have not lapsed on the date of
      Disability, they shall be exercisable; provided, however, that in the event
      such
      forfeiture provisions or rights of repurchase lapse periodically, such
      provisions or rights shall lapse to the extent of a pro rata portion of the
      Shares subject to such Stock Grant through the date of Disability as would
      have
      lapsed had the Participant not become Disabled. The proration shall be based
      upon the number of days accrued prior to the date of Disability.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    The
      Administrator shall make the determination both of whether Disability has
      occurred and the date of its occurrence (unless a procedure for such
      determination is set forth in another agreement between the Company and such
      Participant, in which case such procedure shall be used for such determination).
      If requested, the Participant shall be examined by a physician selected or
      approved by the Administrator, the cost of which examination shall be paid
      for
      by the Company.

    

    
      	
              21.

            	
              EFFECT
                ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR
                CONSULTANT.

            

    

    

    Except
      as
      otherwise provided in a Participant’s Stock Grant Agreement, the following rules
      apply in the event of the death of a Participant while the Participant is an
      employee, director or consultant of the Company or of an Affiliate: to the
      extent the forfeiture provisions or the Company’s rights of repurchase have not
      lapsed on the date of death, they shall be exercisable; provided, however,
      that
      in the event such forfeiture provisions or rights of repurchase lapse
      periodically, such provisions or rights shall lapse to the extent of a pro
      rata
      portion of the Shares subject to such Stock Grant through the date of death
      as
      would have lapsed had the Participant not died. The proration shall be based
      upon the number of days accrued prior to the Participant’s
      death.

    

    
      	22.	
              PURCHASE
                FOR INVESTMENT.

            

    

    

    Unless
      the offering and sale of the Shares to be issued upon the particular exercise
      or
      acceptance of a Stock Right shall have been effectively registered under the
      Securities Act of 1933, as now in force or hereafter amended (the “1933 Act”),
      the Company shall be under no obligation to issue the Shares covered by such
      exercise unless and until the following conditions have been
      fulfilled:

    

    
      	 	
              a.

            	
              The
                person(s) who exercise(s) or accept(s) such Stock Right shall warrant
                to
                the Company, prior to the receipt of such Shares, that such person(s)
                are
                acquiring such Shares for their own respective accounts, for investment,
                and not with a view to, or for sale in connection with, the distribution
                of any such Shares, in which event the person(s) acquiring such Shares
                shall be bound by the provisions of the following legend which shall
                be
                endorsed upon the certificate(s) evidencing their Shares issued pursuant
                to such exercise or such grant:

            

    

    

    
      	 	 	 	
              “The
                shares represented by this certificate have been taken for investment
                and
                they may not be sold or otherwise transferred by any person, including
                a
                pledgee, unless (1) either (a) a Registration Statement with respect
                to
                such shares shall be effective under the Securities Act of 1933,
                as
                amended, or (b) the Company shall have received an opinion of counsel
                satisfactory to it that an exemption from registration under such
                Act is
                then available, and (2) there shall have been compliance with all
                applicable state securities laws.”

            

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    
      	 	
              b.

            	
              At
                the discretion of the Administrator, the Company shall have received
                an
                opinion of its counsel that the Shares may be issued upon such particular
                exercise or acceptance in compliance with the 1933 Act without
                registration thereunder.

            

    

    

    
      	
              23.

            	
              DISSOLUTION
                OR LIQUIDATION OF THE COMPANY.

            

    

    

    Upon
      the
      dissolution or liquidation of the Company, all Options granted under this Plan
      which as of such date shall not have been exercised and all Stock Grants and
      Stock-Based Awards which have not been accepted will terminate and become null
      and void; provided, however, that if the rights of a Participant or a
      Participant’s Survivors have not otherwise terminated and expired, the
      Participant or the Participant’s Survivors will have the right immediately prior
      to such dissolution or liquidation to exercise or accept any Stock Right to
      the
      extent that the Stock Right is exercisable or subject to acceptance as of the
      date immediately prior to such dissolution or liquidation. Upon the dissolution
      or liquidation of the Company, any outstanding Stock-Based Awards shall
      immediately terminate unless otherwise determined by the Administrator or
      specifically provided in the applicable Agreement.

    

    
      	
              24.

            	
              ADJUSTMENTS.

            

    

    

    Upon
      the
      occurrence of any of the following events, a Participant’s rights with respect
      to any Stock Right granted to him or her hereunder shall be adjusted as
      hereinafter provided, unless otherwise specifically provided in a Participant’s
      Agreement:

    

    a. Stock
      Dividends and Stock Splits.
      If
      (i) the shares of Common Stock shall be subdivided or combined into a
      greater or smaller number of shares or if the Company shall issue any shares
      of
      Common Stock as a stock dividend on its outstanding Common Stock, or
      (ii) additional shares or new or different shares or other securities of
      the Company or other non-cash assets are distributed with respect to such shares
      of Common Stock, the number of shares of Common Stock deliverable upon the
      exercise of an Option or acceptance of a Stock Grant shall be appropriately
      increased or decreased proportionately, and appropriate adjustments shall be
      made including, in the purchase price per share, to reflect such events. The
      number of Shares subject to the limitations in Paragraph 3 and 4(c) shall also
      be proportionately adjusted upon the occurrence of such events.

    

    b. Corporate
      Transactions.
      If the
      Company is to be consolidated with or acquired by another entity in a merger,
      sale of all or substantially all of the Company’s assets other than a
      transaction to merely change the state of incorporation (a “Corporate
      Transaction”), the Administrator or the board of directors of any entity
      assuming the obligations of the Company hereunder (the “Successor Board”),
      shall, as to outstanding Options, either (i) make appropriate provision for
      the
      continuation of such Options by substituting on an equitable basis for the
      Shares then subject to such Options either the consideration payable with
      respect to the outstanding shares of Common Stock in connection with the
      Corporate Transaction or securities of any successor or acquiring entity; or
      (ii) upon written notice to the Participants, provide that such Options must
      be
      exercised (either (A) to the extent then exercisable or, (B) at the discretion
      of the Administrator, any such Options being made fully exercisable for purposes
      of this Subparagraph), within a specified number of days of the date of such
      notice, at the end of which period such Options shall terminate; or (iii)
      terminate such Options in exchange for a cash payment equal to the excess of
      the
      Fair Market Value of the Shares subject to such Options (either (A) to the
      extent then exercisable or, (B) at the discretion of the Administrator, any
      such
      Options being made fully exercisable for purposes of this Subparagraph) over
      the
      exercise price thereof.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

       

    

    With
      respect to outstanding Stock Grants, the Administrator or the Successor Board,
      shall either (i) make appropriate provisions for the continuation of such Stock
      Grants on the same terms and conditions by substituting on an equitable basis
      for the Shares then subject to such Stock Grants either the consideration
      payable with respect to the outstanding Shares of Common Stock in connection
      with the Corporate Transaction or securities of any successor or acquiring
      entity; or (ii) terminate such Stock Grants in exchange for a cash payment
      equal
      to the excess of the Fair Market Value of the Shares subject to such Stock
      Grants over the purchase price thereof, if any. In addition, in the event of
      a
      Corporate Transaction, the Administrator may waive any or all Company forfeiture
      or repurchase rights with respect to outstanding Stock Grants.

    

    c. Recapitalization
      or Reorganization.
      In the
      event of a recapitalization or reorganization of the Company other than a
      Corporate Transaction pursuant to which securities of the Company or of another
      corporation are issued with respect to the outstanding shares of Common Stock,
      a
      Participant upon exercising an Option or accepting a Stock Grant after the
      recapitalization or reorganization shall be entitled to receive for the purchase
      price paid upon such exercise or acceptance of the number of replacement
      securities which would have been received if such Option had been exercised
      or
      Stock Grant accepted prior to such recapitalization or
      reorganization.

    

    d. Adjustments
      to Stock-Based Awards.
      Upon
      the happening of any of the events described in Subparagraphs a, b or c above,
      any outstanding Stock-Based Award shall be appropriately adjusted to reflect
      the
      events described in such Subparagraphs. The Administrator or the Successor
      Board
      shall determine the specific adjustments to be made under this Paragraph 24,
      including, but not limited to the effect if any, of a change of control and,
      subject to Paragraph 4, its determination shall be conclusive.

    

    e. Modification
      of Options.
      Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph
      a,
      b or c above with respect to Options shall be made only after the Administrator
      determines whether such adjustments would constitute a “modification” of any ISO
      (as that term is defined in Section 424(h) of the Code) or would cause any
      adverse tax consequences for the holders of such Options, including, but not
      limited to, pursuant to Section 409A of the Code. If the Administrator
      determines that such adjustments made with respect to Options would constitute
      a
      modification or other adverse tax consequence, it may refrain from making such
      adjustments, unless the holder of an Option specifically agrees in writing
      that
      such adjustment be made and such writing indicates that the holder has full
      knowledge of the consequences of such “modification” on his or her income tax
      treatment with respect to the Option. This paragraph shall not apply to the
      acceleration of the vesting of any ISO that would cause any portion of the
      ISO
      to violate the annual vesting limitation contained in Section 422(d) of the
      Code, as described in Paragraph 6b(iv). 

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    
      	
              25.

            	
              ISSUANCES
                OF SECURITIES.

            

    

    

    Except
      as
      expressly provided herein, no issuance by the Company of shares of stock of
      any
      class, or securities convertible into shares of stock of any class, shall
      affect, and no adjustment by reason thereof shall be made with respect to,
      the
      number or price of shares subject to Stock Rights. Except as expressly provided
      herein, no adjustments shall be made for dividends paid in cash or in property
      (including without limitation, securities) of the Company prior to any issuance
      of Shares pursuant to a Stock Right.

    

    
      	
              26.

            	
              FRACTIONAL
                SHARES.

            

    

    

    No
      fractional shares shall be issued under the Plan and the person exercising
      a
      Stock Right shall receive from the Company cash in lieu of such fractional
      shares equal to the Fair Market Value thereof.

    

    
      	
              27.

            	
              CONVERSION
                OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

            

    

    

    The
      Administrator, at the written request of any Participant, may in its discretion
      take such actions as may be necessary to convert such Participant’s ISOs (or any
      portions thereof) that have not been exercised on the date of conversion into
      Non-Qualified Options at any time prior to the expiration of such ISOs,
      regardless of whether the Participant is an employee of the Company or an
      Affiliate at the time of such conversion. At the time of such conversion, the
      Administrator (with the consent of the Participant) may impose such conditions
      on the exercise of the resulting Non-Qualified Options as the Administrator
      in
      its discretion may determine, provided that such conditions shall not be
      inconsistent with this Plan. Nothing in the Plan shall be deemed to give any
      Participant the right to have such Participant’s ISOs converted into
      Non-Qualified Options, and no such conversion shall occur until and unless
      the
      Administrator takes appropriate action. The Administrator, with the consent
      of
      the Participant, may also terminate any portion of any ISO that has not been
      exercised at the time of such conversion.

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    
      	
              28.

            	
              WITHHOLDING.

            

    

    

    In
      the
      event that any federal, state, or local income taxes, employment taxes, Federal
      Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts are
      required by applicable law or governmental regulation to be withheld from the
      Participant’s salary, wages or other remuneration in connection with the
      exercise or acceptance of a Stock Right or in connection with a Disqualifying
      Disposition (as defined in Paragraph 29) or upon the lapsing of any forfeiture
      provision or right of repurchase or for any other reason required by law, the
      Company may withhold from the Participant’s compensation, if any, or may require
      that the Participant advance in cash to the Company, or to any Affiliate of
      the
      Company which employs or employed the Participant, the statutory minimum amount
      of such withholdings unless a different withholding arrangement, including
      the
      use of shares of the Company’s Common Stock or a promissory note, is authorized
      by the Administrator (and permitted by law). For purposes hereof, the fair
      market value of the shares withheld for purposes of payroll withholding shall
      be
      determined in the manner set forth under the definition of Fair Market Value
      provided in Paragraph 1 above, as of the most recent practicable date prior
      to
      the date of exercise. If the fair market value of the shares withheld is less
      than the amount of payroll withholdings required, the Participant may be
      required to advance the difference in cash to the Company or the Affiliate
      employer. The Administrator in its discretion may condition the exercise of
      an
      Option for less than the then Fair Market Value on the Participant’s payment of
      such additional withholding. 

    

    
      	
              29.

            	
              NOTICE
                TO COMPANY OF DISQUALIFYING DISPOSITION.

            

    

    

    Each
      Employee who receives an ISO must agree to notify the Company in writing
      immediately after the Employee makes a Disqualifying Disposition of any shares
      acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is
      defined in Section 424(c) of the Code and includes any disposition (including
      any sale or gift) of such shares before the later of (a) two years after the
      date the Employee was granted the ISO, or (b) one year after the date the
      Employee acquired Shares by exercising the ISO, except as otherwise provided
      in
      Section 424(c) of the Code. If the Employee has died before such stock is sold,
      these holding period requirements do not apply and no Disqualifying Disposition
      can occur thereafter.

    

    
      	
              30.

            	
              TERMINATION
                OF THE PLAN.

            

    

    

    The
      Plan
      will terminate on May 1, 2017, the
      date
      which is ten years from the earlier
      of the
      date of its adoption by the Board of Directors and the date of its approval
      by
      the shareholders of the Company. The Plan may be terminated at an earlier date
      by vote of the shareholders or the Board of Directors of the Company; provided,
      however, that any such earlier termination shall not affect any Agreements
      executed prior to the effective date of such termination.

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    
      	
              31.

            	
              AMENDMENT
                OF THE PLAN AND AGREEMENTS.

            

    

    

    The
      Plan
      may be amended by the shareholders of the Company. The Plan may also be amended
      by the Administrator, including, without limitation, to the extent necessary
      to
      qualify any or all outstanding Stock Rights granted under the Plan or Stock
      Rights to be granted under the Plan for favorable federal income tax treatment
      (including deferral of taxation upon exercise) as may be afforded incentive
      stock options under Section 422 of the Code, and to the extent necessary to
      qualify the shares issuable upon exercise or acceptance of any outstanding
      Stock
      Rights granted, or Stock Rights to be granted, under the Plan for listing on
      any
      national securities exchange or quotation in any national automated quotation
      system of securities dealers. Any amendment approved by the Administrator which
      the Administrator determines is of a scope that requires shareholder approval
      shall be subject to obtaining such shareholder approval. Any modification or
      amendment of the Plan shall not, without the consent of a Participant, adversely
      affect his or her rights under a Stock Right previously granted to him or her.
      With the consent of the Participant affected, the Administrator may amend
      outstanding Agreements in a manner which may be adverse to the Participant
      but
      which is not inconsistent with the Plan. In the discretion of the Administrator,
      outstanding Agreements may be amended by the Administrator in a manner which
      is
      not adverse to the Participant.

    

    
      	
              32.

            	
              EMPLOYMENT
                OR OTHER RELATIONSHIP.

            

    

    

    Nothing
      in this Plan or any Agreement shall be deemed to prevent the Company or an
      Affiliate from terminating the employment, consultancy or director status of
      a
      Participant, nor to prevent a Participant from terminating his or her own
      employment, consultancy or director status or to give any Participant a right
      to
      be retained in employment or other service by the Company or any Affiliate
      for
      any period of time.

    

    
      	
              33.

            	
              GOVERNING
                LAW.

            

    

    

    This
      Plan
      shall be construed and enforced in accordance with the law of the State of
      Delaware.

    

    
      
        
        

      

      
        21

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