Document:

SMARTVIDEO
      TECHNOLOGIES, INC.

     

    INCENTIVE
      STOCK OPTION AGREEMENT

    

    
      	1.	
              Grant
                of Option.
                SmartVideo Technologies, Inc., a Delaware corporation, whose principal
                place of business is at 3505 Koger Boulevard, Suite 400, Duluth,
                GA 30096
                (the “Company”) hereby grants to «First_Name» «Last_Name»,
                an individual whose address is set forth below the optionee signature
                line
                (the “Optionee”), an option, pursuant to the Company’s 2004
                Equity Incentive Plan
                (the “Plan”), to purchase the number of shares of common stock, par value
                $.001 per share, of the Company (“Common Stock”) set forth on Exhibit
                A attached
                hereto at the exercise price per share set forth on Exhibit
                A
                attached hereto, purchasable as set forth in and subject to the terms
                and
                conditions of this option and the Plan. The Plan has been approved
                by the
                stockholders of the Company. No rights and obligations of the parties
                pursuant to this option agreement (this “Agreement”) shall conflict with
                such stockholder approval.

            

    

    

    
      	2.	
              Incentive
                Stock Option.
                This option is intended to qualify as an incentive stock option
                (“Incentive Stock Option”) within the meaning of Section 422 of the
                Internal Revenue Code of 1986, as amended or replaced from time to
                time
                (the “Code”). Any provision of this Agreement or the Plan which conflicts
                with the requirements of qualification as an Incentive Stock Option
                under
                the Code is null and void to the extent of such conflict and any
                ambiguities shall be resolved so that this option qualifies as an
                Incentive Stock Option.

            

    

    

    
      	3.	
              Exercise
                of Option; Provisions for
                Termination

            

    

    

    
      	
            	a.	
              Vesting
                Schedule.
                The shares of Common Stock subject to this Agreement shall vest in
                accordance with Exhibit
                A
                attached hereto.

            

    

    

    
      	
            	b.	
              Change
                In Control.
                Upon a Change in Control (as such term is defined in the Plan), all
                of the
                unvested option will accelerate and be exercisable for a period of
                five
                (5) business days immediately prior to the scheduled consummation
                of a
                Change in Control; provided, however, that any such acceleration
                and any
                exercise of the option during such five (5) day period shall be (i)
                conditioned on the consummation of the Change in Control and (ii)
                effective only immediately before the consummation of the Change
                in
                Control. 

            

    

    

    Upon
      consummation of any Change in Control, the Plan and any outstanding portion
      of
      the option that remains unexercised shall terminate. Notwithstanding the
      foregoing, to the extent provision is made in writing in connection with such
      Change in Control for the continuation of the Plan and the assumption of options
      under the Plan theretofore granted, or for the substitution for such options
      of
      new options covering the stock of a successor company, or a parent or a
      subsidiary thereof, with appropriate adjustments as to the number and kinds
      of
      shares or units and exercise prices, then the Plan and the option granted
      hereunder shall continue in the manner and under the terms so provided, and
      the
      acceleration and termination provisions set forth in this Section 3 shall be
      of
      no effect. The Company will send written notice of a Change in Control to the
      Employee not later than a time at which the Company gives notice thereof to
      its
      stockholders. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	c.	
              Expiration
                Date.
                This option may be exercised as to the number of shares that have
                vested
                in accordance with Section 3(a) above prior to the «Expiration_Date»
                anniversary of the date of grant (hereinafter, the “Expiration Date”),
                provided that
                no
                option may be exercised until it has fully vested in accordance with
                the
                vesting schedule set forth on Exhibit
                A
                attached hereto.

            

    

    

    
      	
            	d.	
              Exercise
                Procedure.
                Subject to the conditions set forth in this Agreement, this option
                once
                vested shall be exercised by the Optionee’s delivery of written notice of
                exercise to the Company, specifying the number of shares to be purchased
                and the purchase price to be paid therefor and accompanied by payment
                in
                full in accordance with Section 4. Such exercise shall be effective
                upon
                receipt by the Company of such written notice together with the required
                payment. The Optionee may purchase less than the number of shares
                covered
                hereby, provided that no partial exercise of this option may be for
                any
                fractional share or for less than one whole
                share.

            

    

    

    
      	
            	e.	
              Continuous
                Employment Required.
                Except as otherwise provided in this Section 3, this option may not
                be
                exercised unless the Optionee, at the time he or she exercises this
                option, is, and has been at all times since the date of grant of
                this
                option, an employee of the Company. For all purposes of this option,
                (i)
                “employment” shall be defined in accordance with the provisions of Section
                1.421-7(h) of the Income Tax Regulations or any successor regulations,
                and
                (ii) if this option shall be assumed or a new option substituted
                therefor
                in a transaction to which Section 424(a) of the Code applies, employment
                by such assuming or substituting corporation (hereinafter called
                the
                “Successor Corporation”) shall be considered for all purposes of this
                option to be employment by the
                Company.

            

    

    

    
      	
            	f.	
              Exercise
                Period Upon Termination of Employment.
                If the Optionee ceases to be employed by the Company for any reason,
                then,
                except as provided in paragraphs (f) and (g) below, the right to
                exercise
                this option shall terminate three months after such cessation (but
                in no
                event after the Expiration Date); provided that
                this option shall be exercisable only to the extent that the Optionee
                was
                entitled to exercise this option on the date of such cessation.
                Notwithstanding the foregoing, if the Optionee, prior to the Expiration
                Date, materially violates any non-competition or confidentiality
                provisions of any agreement between the Optionee and the Company,
                the
                right to exercise this option shall terminate immediately upon such
                violation.

            

    

    

    
      	
            	g.	
              Exercise
                Period Upon Death or Disability.
                If the Optionee dies or becomes disabled (within the meaning of Section
                22(e)(3) of the Code) prior to the Expiration Date while he or she
                is an
                employee of the Company, or if the Optionee dies or becomes disabled
                or
                while on leave within three months after the Optionee ceases to be
                an
                employee of the Company (other than as the result of a discharge
                for
                “Cause” as specified in paragraph (g) below), this option shall be
                exercisable, within the period of one-year following the date of
                death or
                disability of the Optionee (but in no event after the Expiration
                Date), by
                the Optionee or by the person to whom this option is transferred
                by will
                or the laws of descent and distribution; provided that
                this option shall be exercisable only to the extent that this option
                was
                exercisable by the Optionee on the date of his or her death or disability.
                Except as otherwise indicated by the context, the term “Optionee”, as used
                in this option, shall be deemed to include the estate of the Optionee
                or
                any person who acquires the right to exercise this option by bequest
                or
                inheritance or otherwise by reason of the death of the
                Optionee.

            

    

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
      	
            	h.	
              Voluntary
                Resignation; Discharge for Cause.
                If the Optionee, prior to the Expiration Date, ceases his or her
                employment with the Company because he or she voluntarily resigns
                or is
                discharged for “Cause” (as defined below), the right to exercise this
                option shall terminate immediately upon such cessation of employment.
                “Cause” is conduct, as determined by the Board of Directors, involving one
                or more of the following: (i) the commission of an act in deliberate
                disregard of the rules or policies of the Company which results in
                loss,
                damage or injury to the Company or any of its subsidiaries or adversely
                affects the business activities, reputation, goodwill or image of
                the
                Company or any of its subsidiaries; or (ii) the commission of any
                material
                act of disloyalty, dishonesty or breach of fiduciary duty to the
                Company,
                or(iii) the commission of an act of embezzlement, fraud; or (iv)
                the
                unauthorized disclosure of any trade secret or confidential information
                of
                the Company or any third party who has a business relationship with
                the
                Company or the violation of any noncompetition covenant or assignment
                of
                inventions obligation with the Company; or (v) the commission of
                any act
                which induces any customer or prospective customer of the Company
                to break
                a contract with the Company or to decline to do business with the
                Company;
                or (vi) the charge by indictment or information with the commission
                of a
                felony involving charges of dishonesty or moral turpitude or the
                conviction of a felony of any kind; or (vii) the failure of the Optionee
                to perform in a material respect his or her employment obligations
                without
                proper cause. In making such determination, the Board of Directors
                shall
                act fairly and in utmost good faith. For the purposes of this subsection
                (g), termination of employment shall be deemed to occur when the
                Optionee
                receives notice that his or her employment is
                terminated.

            

    

    

    
      	4.	
              Payment
                of Purchase Price

            

    

    

    
      	
            	a.	
              Method
                of Payment.
                Payment of the purchase price for shares purchased upon exercise
                of this
                option shall be made (i) by delivery to the Company of cash or a
                certified
                or bank check to the order of the Company in an amount equal to the
                purchase price of such shares, (ii) subject to the consent of the
                Company,
                by delivery to the Company of shares of Common Stock of the Company
                then
                owned for at least six months prior to the delivery of such Common
                Stock
                by the Optionee and having a fair market value equal in amount to
                the
                purchase price of such shares, (iii) by payment, in whole or in part,
                through the surrender of shares of Common Stock then issuable upon
                exercise of this option having a fair market value as determined
                in
                accordance with Section 4(b) hereof, (iv) subject to the consent
                of the
                Company, by the delivery of an assignment to the Company of a sufficient
                amount of the proceeds from the sale of the Common Stock acquired
                upon
                exercise of this option and an authorization to the broker or selling
                agent to pay that amount to the Company, which sale shall be at the
                Optionee’s direction at the time of exercise; (v) by any other means
                (including, without limitation, by delivery of a promissory note
                of the
                Optionee payable on such terms as are specified by the Board of Directors
                which the Board of Directors determines are consistent with the purpose
                of
                the Plan and with applicable laws and regulations (including, without
                limitation, the provisions of Rule 16b-3 under the Securities Exchange
                Act
                of 1934 and Regulation T promulgated by the Federal Reserve Board)),
                or
                (vi) by any combination of such methods of
                payment.

            

    

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
      	
            	b.	
              Valuation
                of Shares or Other Non-Cash Consideration Tendered in Payment of
                Purchase
                Price.
                For the purposes hereof, unless a recognized market value is available,
                the fair market value of any share of the Company’s Common Stock or other
                non-cash consideration which may be delivered to the Company in exercise
                of this option shall be determined in good faith by the Board of
                Directors
                of the Company.

            

    

    

    
      	
            	c.	
              Delivery
                of Shares Tendered in Payment of Purchase Price.
                If the Optionee exercises this option by delivery of shares of Common
                Stock of the Company, the certificate or certificates representing
                the
                shares of Common Stock of the Company to be delivered shall be duly
                executed in blank by the Optionee or shall be accompanied by a stock
                power
                duly executed in blank suitable for purposes of transferring such
                shares
                to the Company. Fractional shares of Common Stock of the Company
                will not
                be accepted in payment of the purchase price of shares acquired upon
                exercise of this option.

            

    

    

    
      	
            	d.	
              Restrictions
                on Use of Option Stock.
                Notwithstanding the foregoing, no shares of Common Stock of the Company
                may be tendered in payment of the purchase price of shares purchased
                upon
                exercise of this option if the shares to be so tendered were acquired
                within twelve (12) months before the date of such tender through
                the
                exercise of an option granted under the Plan or any other stock option
                or
                restricted stock plan of the
                Company.

            

    

    

    
      	5.	
              Delivery
                of Shares; Compliance With Securities Laws,
                Etc.

            

    

    

    
      	
            	a.	
              General.
                Upon payment of the option price for the number of shares purchased
                and
                paid for, Optionee may request prompt delivery of such shares,
                provided that
                if
                any law or regulation requires the Company to take any action with
                respect
                to such shares before the issuance thereof, then the date of delivery
                of
                such shares shall be extended for the period necessary to complete
                such
                action.

            

    

    

    
      	
            	b.	
              Listing,
                Qualification, Etc.
                This option shall be subject to the requirement that if, at any time,
                counsel to the Company shall determine that the listing, registration
                or
                qualification of the shares subject hereto upon any securities exchange
                or
                under any state or federal law, or the consent or approval of any
                governmental or regulatory body, or that the disclosure of non-public
                information or the satisfaction of any other condition is necessary
                as a
                condition of, or in connection with, the issuance or purchase of
                shares
                hereunder, this option may not be exercised, in whole or in part,
                unless
                such listing, registration, qualification, consent or approval, disclosure
                or satisfaction of such other condition shall have been effected
                or
                obtained on terms acceptable to the Board of Directors. Nothing herein
                shall be deemed to require the Company to apply for, effect or obtain
                such
                listing, registration, qualification, or disclosure, or to satisfy
                such
                other condition.

            

    

    

    
      	6.	
              Nontransferability
                of Option.
                This option is personal and no rights granted hereunder may be
                transferred, assigned, pledged or hypothecated in any way (whether
                by
                operation of law or otherwise), except by will or the laws of descent
                and
                distribution, nor shall any such rights be subject to execution,
                attachment or similar process except that this option may be transferred
                as provided in paragraph (f) of Section 3 above. Upon any attempt
                to
                transfer, assign, pledge, hypothecate or otherwise dispose of this
                option
                or of such rights contrary to the provisions hereof, or upon the
                levy of
                any attachment or similar process upon this option or such rights,
                this
                option and such rights shall, at the election of the Company, become
                null
                and void.

            

    

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
      	7.	
              No
                Special Employment Rights.
                Nothing contained in the Plan or this option shall be construed or
                deemed
                by any person under any circumstances to bind the Company to continue
                the
                employment of the Optionee for the period within which this option
                may be
                exercised, or for any other period.

            

    

    

    
      	8.	
              Rights
                as a Shareholder.
                The Optionee shall have no rights as a shareholder with respect to
                any
                shares covered by this option (including, without limitation, any
                rights
                to receive dividends or non-cash distributions with respect to such
                shares) until the date the Optionee has exercised this option and
                delivered payment of the purchase price for such shares to the Company
                in
                accordance with the terms hereof. No adjustment shall be made for
                dividends or other rights for which the record date is prior to the
                date
                such stock certificate is issued. The Optionee acknowledges that
                he has no
                rights to the grant of any equity interest, either at present or
                in the
                future, in the Company other than this option and any previously
                issued
                options, and that the grant of this option satisfies all obligations,
                including all contingent obligations, of the Company to the
                Optionee.

            

    

    

    
      	9.	
              Adjustment
                Provisions

            

    

    

    
      	
            	a.	
              General.
                If, through or as a result of any reorganization, recapitalization,
                reclassification, stock dividend, stock split, reverse stock split
                or
                other similar transaction, (A) the outstanding shares of Common Stock
                are
                increased, decreased or exchanged for a different number or kind
                of shares
                or other securities of the Company, or (B) 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
                or
                other securities, an appropriate and proportionate adjustment may
                be made
                in (i) the maximum number and kind of shares reserved for issuance
                under
                the Plan, (ii) the number and kind of shares or other securities
                subject
                to this option, and (iii) the price for each share subject to this
                option,
                without changing the aggregate purchase price as to which this option
                remains exercisable. Notwithstanding the foregoing, no adjustment
                shall be
                made pursuant to this Section 9 if such adjustment would cause this
                option
                to fail to comply with Rule 16b-3.

            

    

    

    
      	
            	b.	
              Board
                Authority to Make Adjustments.
                Any adjustments under this Section 9 will be made by the Board of
                Directors, whose determination as to what adjustments, if any will
                be made
                and the extent thereof will be final, binding and conclusive. Upon
                exercise of this option, the Company may at the discretion of the
                Board of
                Directors, pay to the Optionee cash equal to the fair market value
                of any
                fractional shares created by any such
                adjustments.

            

    

    

    
      	
            	c.	
              Limits
                on Adjustments.
                No adjustment shall be made under this Section 9 which would, within
                the
                meaning of any applicable provision of the Code, constitute a
                modification, extension or renewal of this option or a grant of additional
                benefits to the Optionee.

            

    

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    
      	10.	
              Withholding
                Taxes.
                The Company’s obligation to deliver shares of Common Stock upon the
                exercise of this option shall be subject to the Optionee’s satisfaction of
                all applicable federal, state, local and foreign taxes of any kind
                required by law to be withheld with respect to any shares issued
                upon
                exercise of this option. If the Company, in its discretion, determines
                that it must or should withhold or pay over tax with respect to the
                exercise of this option or a Disqualifying Disposition (as defined
                in
                Section 11 below) of shares of Common Stock acquired by the Optionee
                on
                exercise of this option, the Optionee hereby agrees that, at the
                option of
                the Company, Optionee will pay to the Company or the Company may
                withhold
                from the Optionee’s wages the appropriate amount of federal, state, local
                and foreign taxes attributable to such Disqualifying Disposition.
                If any
                portion of this option is treated as a non-qualified option, the
                Optionee
                hereby agrees that, at the option of the Company, Optionee will pay
                to the
                Company or the Company may withhold from the Optionee’s wages the
                appropriate amount of federal, state, local and foreign taxes attributable
                to the Optionee’s exercise of such non-qualified option. At the Company’s
                discretion, the amount required to be withheld may be withheld in
                cash
                from such wages, or (with respect to compensation income attributable
                to
                the exercise of this option) in kind from the Common Stock otherwise
                deliverable to the Optionee on exercise of this option. The Optionee
                further agrees that, if the Company does not withhold an amount from
                the
                Optionee’s wages sufficient to satisfy the Company’s withholding
                obligation, the Optionee will reimburse the Company on demand, in
                cash,
                for the amount under withheld.

            

    

    

    
      	11.	
              Disqualifying
                Disposition.
                Although the parties intend that this option shall qualify as an
                Incentive
                Stock Option, if this option is determined not to be an Incentive
                Stock
                Option, the Optionee understands that the Company is not responsible
                to
                compensate the Optionee or otherwise make up for the treatment of
                this
                option as a non-qualified stock option. The Optionee should consult
                with
                the Optionee’s own tax advisors regarding the tax effects of this option
                and the requirements necessary to obtain favorable treatment under
                the
                Code, including, but not limited to, holding period requirements.
                The
                Optionee agrees to notify the Company in writing immediately after
                the
                Optionee makes a Disqualifying Disposition of any shares of Common
                Stock
                acquired pursuant to the exercise of this option. Generally, a
                Disqualifying Disposition is any disposition (whether by sale, exchange,
                gift, transfer, or otherwise) of such shares before the later of
                (a) two
                years after the date the Optionee was granted this option or (b)
                one-year
                after the date the Optionee acquired shares by exercising this option.
                If
                the Optionee dies before such shares are sold, these holding period
                requirements do not apply and no Disqualifying Disposition would
                occur.
                The Optionee also agrees to provide the Company with any information
                which
                it shall request concerning any such disposition. The Optionee
                acknowledges that he or she will forfeit the favorable income tax
                treatment otherwise available with respect to the exercise of this
                Incentive Stock Option if he or she makes a Disqualifying Disposition
                of
                the shares acquired on exercise of this
                option.

            

    

    

    
      	12.	
              Investment
                Representations; Legends; Limitations on Certain
                Dispositions

            

    

    

    
      	
            	a.	
              Representations.
                The Optionee represents, warrants and covenants
                that:

            

    

    

    
      	
            	(i)	
              Any
                shares purchased upon exercise of this option shall be acquired for
                the
                Optionee’s account for investment only and not with a view to, or for sale
                in connection with, any distribution of the shares in violation of
                the
                Securities Act of 1933, as amended (the “Securities Act”), or any rule or
                regulation under the Securities
                Act.

            

    

    

    
      	
            	(ii)	
              The
                Optionee has had such opportunity as he or she has deemed adequate
                to
                obtain from representatives of the Company such information as is
                necessary to permit the Optionee to evaluate the merits and risks
                of his
                or her investment in the Company.

            

    

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    
      	
            	(iii)	
              The
                Optionee is able to bear the economic risk of holding shares acquired
                pursuant to the exercise of this option for an indefinite
                period.

            

    

    

    
      	
            	(iv)	
              The
                Optionee understands that (A) the shares acquired pursuant to the
                exercise
                of this option will not be registered under the Securities Act and
                are
                “restricted securities” within the meaning of Rule 144 under the
                Securities Act; (B) such shares cannot be sold, transferred or otherwise
                disposed of unless they are subsequently registered under the Securities
                Act or an exemption from registration is then available; (C) in any
                event,
                an exemption from registration under Rule 144 or otherwise under
                the
                Securities Act may not be available for at least one-year and even
                then
                will not be available unless a public market then exists for the
                Common
                Stock, adequate information concerning the Company is then available
                to
                the public and other terms and conditions of Rule 144 are complied
                with;
                and (D) there is now no registration statement on file with the Securities
                and Exchange Commission with respect to any stock of the Company
                and the
                Company has no obligation or current intention to register any shares
                acquired pursuant to the exercise of this option under the Securities
                Act.

            

    

    

    By
      making
      payment upon exercise of this option, the Optionee shall be deemed to have
      reaffirmed, as of the date of such payment, the representations made in this
      Section 12.

    

    
      	
            	c.	
              Limitations
                on Certain Dispositions.
                The Optionee agrees, by accepting this option, that if the Company
                offers
                any of its Common Stock for sale pursuant to a registration statement
                under the Securities Act, the Optionee will not, directly or indirectly,
                without the prior written consent of the Company, sell, offer or
                agree to
                sell, grant any option to purchase or otherwise transfer or dispose
                of any
                shares of Common Stock purchased upon exercise of this option for
                a period
                of 90 days after the effective date of such registration
                statement.

            

    

    

    
      	13.	
              Interpretation
                of this Agreement.
                All decisions and interpretations made by the Committee (as defined
                in
                Section 2 of the Plan) with regard to any question arising under the Plan
                or this Agreement shall be binding and conclusive on the Company
                and the
                Optionee and any other person entitled to exercise this option as
                provided
                herein. In the event there is any inconsistency between the provisions
                of
                this Agreement and of the Plan, the provisions of the Plan shall
                govern,
                subject to the provisions of Section 2
                above.

            

    

    

    
      	14.	
              Miscellaneous

            

    

    

    
      	
            	a.	
              Except
                as provided herein, this Option Agreement may not be amended or otherwise
                modified unless evidenced in writing and signed by the Company and
                the
                Optionee.

            

    

    

    
      	
            	b.	
              All
                notices under this Option Agreement shall be mailed or delivered
                by hand
                to the parties at their respective addresses set forth beneath their
                names
                below or at such other address as may be designated in writing by
                either
                of the parties to one another.

            

    

    

    
      	
            	c.	
              This
                Option shall be governed by and construed in accordance with the
                laws of
                the State of Delaware.

            

    

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    Date
      of Grant: «Month_of_Grant» «Day_of_Grant»,
      «Year_of_Grant»

    

    

    
      	 	
              SMARTVIDEO
                TECHNOLOGIES, INC.

              

              

              

              By:__________________________

              Name: 
                Ronald
                A. Warren

              Title:   
                Corporate
                Secretary

            

    

    

    

    

    

     

    OPTIONEE’S
      ACCEPTANCE

    

    The
      undersigned hereby accepts the foregoing option and agrees to the terms and
      conditions thereof. The undersigned hereby acknowledges receipt of a copy of
      the
      Company’s 2004 Equity Incentive Plan.

    

    OPTIONEE:
      

    

    

    

    ________________________________

    
      	Name:	
              «First_Name» «Last_Name»

            

    

    
      	Address:	
              «Address_Line_1»

            

    

    «Address_Line_2»

    «City»,«State» «ZIP_Code»

    

    

    
      Corporate
        Seal

    

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    OPTIONEE’S
      ACCEPTANCE

    

    EXHIBIT
      A

    

    
      	
              Name
                of Employee (the “Employee”):

            	
              «First_Name» «Last_Name»

            
	
              Date
                of this option grant:

            	
              «Month_of_Grant» «Day_of_Grant»,
                «Year_of_Grant»

            
	
              Number
                of shares of the Company’s Common Stock subject to this option
                (“Option
                Shares”):

            	
              «Shares_Granted»

            
	
              Option
                exercise price per share: «Exercise_Price»

            	
              Vesting
                Start Date: «Vesting_Start_Date»

            
	
              Percent
                of Shares Vesting Annually: «Annually_»
                %

            	
              Number
                of Shares Vesting Annually: «Annual_Shares»

            

    

    

    Vesting
      Schedule

     

     

    
      	Vesting Date	Shares Vested	Percent
              Vested

    

    
      	
              «M_1»

            	
              «Shares_1» 

            	«M__1»
              %
	
              «M_2»

            	
              «Shares_2» 

            	«M__2»
              %
	
              «M_3»

            	
              «Shares_3» 

            	«M__3»
              %
	
              «M_4»

            	
              «Shares_4» 

            	«M__4»
              %
	
              «M_5»

            	
              «Shares_5» 

            	«M__5»
              %
	
              «M_6»

            	
              «Shares_6» 

            	«M__6»
              %
	
              «M_7»

            	
              «Shares_7» 

            	«M__7»
              %
	
              «M_8»

            	
              «Shares_8» 

            	«M__8»
              %
	
              «M_9»

            	
              «Shares_9» 

            	«M__9»
              %
	
              «M_9»

            	
              «Shares_10» 

            	«M__10»
              %
	
              «M_11»

            	
               

            	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

    
      
         

      

      
        -9-SMARTVIDEO
      TECHNOLOGIES, INC.

     

    INCENTIVE
      STOCK OPTION AGREEMENT

    

    
      	1.	
              Grant
                of Option.
                SmartVideo Technologies, Inc., a Delaware corporation, whose principal
                place of business is at 3505 Koger Boulevard, Suite 400, Duluth,
                GA 30096
                (the “Company”) hereby grants to David Ross,
                an individual whose address is set forth below the optionee signature
                line
                (the “Optionee”), an option, pursuant to the Company’s 2005 Equity
                Incentive Plan (the “Plan”), to purchase the number of shares of common
                stock, par value $.001 per share, of the Company (“Common Stock”) set
                forth on Exhibit
                A attached
                hereto at the exercise price per share set forth on Exhibit
                A
                attached hereto, purchasable as set forth in and subject to the terms
                and
                conditions of this option and the Plan. The Plan has been approved
                by the
                stockholders of the Company. No rights and obligations of the parties
                pursuant to this option agreement (this “Agreement”) shall conflict with
                such stockholder approval.

            

    

    

    
      	2.	
              Incentive
                Stock Option.
                This option is intended to qualify as an incentive stock option
                (“Incentive Stock Option”) within the meaning of Section 422 of the
                Internal Revenue Code of 1986, as amended or replaced from time to
                time
                (the “Code”). Any provision of this Agreement or the Plan which conflicts
                with the requirements of qualification as an Incentive Stock Option
                under
                the Code is null and void to the extent of such conflict and any
                ambiguities shall be resolved so that this option qualifies as an
                Incentive Stock Option.

            

    

    

    
      	3.	
              Exercise
                of Option; Provisions for
                Termination

            

    

    

    
      	
            	a.	
              Vesting
                Schedule.
                The shares of Common Stock subject to this Agreement shall vest in
                accordance with Exhibit
                A
                attached hereto.

            

    

    

    
      	
            	b.	
              Change
                In Control.
                Upon a Change in Control (as such term is defined in the Plan), all
                of the
                unvested option will accelerate and be exercisable for a period of
                five
                (5) business days immediately prior to the scheduled consummation
                of a
                Change in Control; provided, however, that any such acceleration
                and any
                exercise of the option during such five (5) day period shall be (i)
                conditioned on the consummation of the Change in Control and (ii)
                effective only immediately before the consummation of the Change
                in
                Control. 

            

    

    

    Upon
      consummation of any Change in Control, the Plan and any outstanding portion
      of
      the option that remains unexercised shall terminate. Notwithstanding the
      foregoing, to the extent provision is made in writing in connection with such
      Change in Control for the continuation of the Plan and the assumption of options
      under the Plan theretofore granted, or for the substitution for such options
      of
      new options covering the stock of a successor company, or a parent or a
      subsidiary thereof, with appropriate adjustments as to the number and kinds
      of
      shares or units and exercise prices, then the Plan and the option granted
      hereunder shall continue in the manner and under the terms so provided, and
      the
      acceleration and termination provisions set forth in this Section 3 shall be
      of
      no effect. The Company will send written notice of a Change in Control to the
      Employee not later than a time at which the Company gives notice thereof to
      its
      stockholders. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	c.	
              Expiration
                Date.
                This option may be exercised as to the number of shares that have
                vested
                in accordance with Section 3(a) above prior to the 10th
                anniversary of the date of grant (hereinafter, the “Expiration Date”),
                provided that
                no
                option may be exercised until it has fully vested in accordance with
                the
                vesting schedule set forth on Exhibit
                A
                attached hereto.

            

    

    

    
      	
            	d.	
              Exercise
                Procedure.
                Subject to the conditions set forth in this Agreement, this option
                once
                vested shall be exercised by the Optionee’s delivery of written notice of
                exercise to the Company, specifying the number of shares to be purchased
                and the purchase price to be paid therefor and accompanied by payment
                in
                full in accordance with Section 4. Such exercise shall be effective
                upon
                receipt by the Company of such written notice together with the required
                payment. The Optionee may purchase less than the number of shares
                covered
                hereby, provided that no partial exercise of this option may be for
                any
                fractional share or for less than one whole
                share.

            

    

    

    
      	
            	e.	
              Continuous
                Employment Required.
                Except as otherwise provided in this Section 3, this option may not
                be
                exercised unless the Optionee, at the time he or she exercises this
                option, is, and has been at all times since the date of grant of
                this
                option, an employee of the Company. For all purposes of this option,
                (i)
                “employment” shall be defined in accordance with the provisions of Section
                1.421-7(h) of the Income Tax Regulations or any successor regulations,
                and
                (ii) if this option shall be assumed or a new option substituted
                therefor
                in a transaction to which Section 424(a) of the Code applies, employment
                by such assuming or substituting corporation (hereinafter called
                the
                “Successor Corporation”) shall be considered for all purposes of this
                option to be employment by the
                Company.

            

    

    

    
      	
            	f.	
              Exercise
                Period Upon Termination of Employment.
                If the Optionee ceases to be employed by the Company for any reason,
                then,
                except as provided in paragraphs (f) and (g) below, the right to
                exercise
                this option shall terminate three months after such cessation (but
                in no
                event after the Expiration Date); provided that
                this option shall be exercisable only to the extent that the Optionee
                was
                entitled to exercise this option on the date of such cessation.
                Notwithstanding the foregoing, if the Optionee, prior to the Expiration
                Date, materially violates any non-competition or confidentiality
                provisions of any agreement between the Optionee and the Company,
                the
                right to exercise this option shall terminate immediately upon such
                violation.

            

    

    

    
      	
            	g.	
              Exercise
                Period Upon Death or Disability.
                If the Optionee dies or becomes disabled (within the meaning of Section
                22(e)(3) of the Code) prior to the Expiration Date while he or she
                is an
                employee of the Company, or if the Optionee dies or becomes disabled
                or
                while on leave within three months after the Optionee ceases to be
                an
                employee of the Company (other than as the result of a discharge
                for
                “Cause” as specified in paragraph (g) below), this option shall be
                exercisable, within the period of one-year following the date of
                death or
                disability of the Optionee (but in no event after the Expiration
                Date), by
                the Optionee or by the person to whom this option is transferred
                by will
                or the laws of descent and distribution; provided that
                this option shall be exercisable only to the extent that this option
                was
                exercisable by the Optionee on the date of his or her death or disability.
                Except as otherwise indicated by the context, the term “Optionee”, as used
                in this option, shall be deemed to include the estate of the Optionee
                or
                any person who acquires the right to exercise this option by bequest
                or
                inheritance or otherwise by reason of the death of the
                Optionee.

            

    

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
      	
            	h.	
              Voluntary
                Resignation; Discharge for Cause.
                If the Optionee, prior to the Expiration Date, ceases his or her
                employment with the Company because he or she voluntarily resigns
                or is
                discharged for “Cause” (as defined below), the right to exercise this
                option shall terminate immediately upon such cessation of employment.
                “Cause” is conduct, as determined by the Board of Directors, involving one
                or more of the following: (i) the commission of an act in deliberate
                disregard of the rules or policies of the Company which results in
                loss,
                damage or injury to the Company or any of its subsidiaries or adversely
                affects the business activities, reputation, goodwill or image of
                the
                Company or any of its subsidiaries; or (ii) the commission of any
                material
                act of disloyalty, dishonesty or breach of fiduciary duty to the
                Company,
                or(iii) the commission of an act of embezzlement, fraud; or (iv)
                the
                unauthorized disclosure of any trade secret or confidential information
                of
                the Company or any third party who has a business relationship with
                the
                Company or the violation of any noncompetition covenant or assignment
                of
                inventions obligation with the Company; or (v) the commission of
                any act
                which induces any customer or prospective customer of the Company
                to break
                a contract with the Company or to decline to do business with the
                Company;
                or (vi) the charge by indictment or information with the commission
                of a
                felony involving charges of dishonesty or moral turpitude or the
                conviction of a felony of any kind; or (vii) the failure of the Optionee
                to perform in a material respect his or her employment obligations
                without
                proper cause. In making such determination, the Board of Directors
                shall
                act fairly and in utmost good faith. For the purposes of this subsection
                (g), termination of employment shall be deemed to occur when the
                Optionee
                receives notice that his or her employment is
                terminated.

            

    

    

    
      	4.	
              Payment
                of Purchase Price

            

    

    

    
      	
            	a.	
              Method
                of Payment.
                Payment of the purchase price for shares purchased upon exercise
                of this
                option shall be made (i) by delivery to the Company of cash or a
                certified
                or bank check to the order of the Company in an amount equal to the
                purchase price of such shares, (ii) subject to the consent of the
                Company,
                by delivery to the Company of shares of Common Stock of the Company
                then
                owned for at least six months prior to the delivery of such Common
                Stock
                by the Optionee and having a fair market value equal in amount to
                the
                purchase price of such shares, (iii) by payment, in whole or in part,
                through the surrender of shares of Common Stock then issuable upon
                exercise of this option having a fair market value as determined
                in
                accordance with Section 4(b) hereof, (iv) subject to the consent
                of the
                Company, by the delivery of an assignment to the Company of a sufficient
                amount of the proceeds from the sale of the Common Stock acquired
                upon
                exercise of this option and an authorization to the broker or selling
                agent to pay that amount to the Company, which sale shall be at the
                Optionee’s direction at the time of exercise; (v) by any other means
                (including, without limitation, by delivery of a promissory note
                of the
                Optionee payable on such terms as are specified by the Board of Directors
                which the Board of Directors determines are consistent with the purpose
                of
                the Plan and with applicable laws and regulations (including, without
                limitation, the provisions of Rule 16b-3 under the Securities Exchange
                Act
                of 1934 and Regulation T promulgated by the Federal Reserve Board)),
                or
                (vi) by any combination of such methods of
                payment.

            

    

    

    
      	
            	b.	
              Valuation
                of Shares or Other Non-Cash Consideration Tendered in Payment of
                Purchase
                Price.
                For the purposes hereof, unless a recognized market value is available,
                the fair market value of any share of the Company’s Common Stock or other
                non-cash consideration which may be delivered to the Company in exercise
                of this option shall be determined in good faith by the Board of
                Directors
                of the Company.

            

    

    

    
      	
            	c.	
              Delivery
                of Shares Tendered in Payment of Purchase Price.
                If the Optionee exercises this option by delivery of shares of Common
                Stock of the Company, the certificate or certificates representing
                the
                shares of Common Stock of the Company to be delivered shall be duly
                executed in blank by the Optionee or shall be accompanied by a stock
                power
                duly executed in blank suitable for purposes of transferring such
                shares
                to the Company. Fractional shares of Common Stock of the Company
                will not
                be accepted in payment of the purchase price of shares acquired upon
                exercise of this option.

            

    

    

    
      	
            	d.	
              Restrictions
                on Use of Option Stock.
                Notwithstanding the foregoing, no shares of Common Stock of the Company
                may be tendered in payment of the purchase price of shares purchased
                upon
                exercise of this option if the shares to be so tendered were acquired
                within twelve (12) months before the date of such tender through
                the
                exercise of an option granted under the Plan or any other stock option
                or
                restricted stock plan of the
                Company.

            

    

    

    
      	5.	
              Delivery
                of Shares; Compliance With Securities Laws,
                Etc.

            

    

    

    
      	
            	a.	
              General.
                Upon payment of the option price for the number of shares purchased
                and
                paid for, Optionee may request prompt delivery of such shares,
                provided that
                if
                any law or regulation requires the Company to take any action with
                respect
                to such shares before the issuance thereof, then the date of delivery
                of
                such shares shall be extended for the period necessary to complete
                such
                action.

            

    

    

    
      	
            	b.	
              Listing,
                Qualification, Etc.
                This option shall be subject to the requirement that if, at any time,
                counsel to the Company shall determine that the listing, registration
                or
                qualification of the shares subject hereto upon any securities exchange
                or
                under any state or federal law, or the consent or approval of any
                governmental or regulatory body, or that the disclosure of non-public
                information or the satisfaction of any other condition is necessary
                as a
                condition of, or in connection with, the issuance or purchase of
                shares
                hereunder, this option may not be exercised, in whole or in part,
                unless
                such listing, registration, qualification, consent or approval, disclosure
                or satisfaction of such other condition shall have been effected
                or
                obtained on terms acceptable to the Board of Directors. Nothing herein
                shall be deemed to require the Company to apply for, effect or obtain
                such
                listing, registration, qualification, or disclosure, or to satisfy
                such
                other condition.

            

    

    

    
      	6.	
              Nontransferability
                of Option.
                This option is personal and no rights granted hereunder may be
                transferred, assigned, pledged or hypothecated in any way (whether
                by
                operation of law or otherwise), except by will or the laws of descent
                and
                distribution, nor shall any such rights be subject to execution,
                attachment or similar process except that this option may be transferred
                as provided in paragraph (f) of Section 3 above. Upon any attempt
                to
                transfer, assign, pledge, hypothecate or otherwise dispose of this
                option
                or of such rights contrary to the provisions hereof, or upon the
                levy of
                any attachment or similar process upon this option or such rights,
                this
                option and such rights shall, at the election of the Company, become
                null
                and void.

            

    

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
      	7.	
              No
                Special Employment Rights.
                Nothing contained in the Plan or this option shall be construed or
                deemed
                by any person under any circumstances to bind the Company to continue
                the
                employment of the Optionee for the period within which this option
                may be
                exercised, or for any other period.

            

    

    

    
      	8.	
              Rights
                as a Shareholder.
                The Optionee shall have no rights as a shareholder with respect to
                any
                shares covered by this option (including, without limitation, any
                rights
                to receive dividends or non-cash distributions with respect to such
                shares) until the date the Optionee has exercised this option and
                delivered payment of the purchase price for such shares to the Company
                in
                accordance with the terms hereof. No adjustment shall be made for
                dividends or other rights for which the record date is prior to the
                date
                such stock certificate is issued. The Optionee acknowledges that
                he has no
                rights to the grant of any equity interest, either at present or
                in the
                future, in the Company other than this option and any previously
                issued
                options, and that the grant of this option satisfies all obligations,
                including all contingent obligations, of the Company to the
                Optionee.

            

    

    

    
      	9.	
              Adjustment
                Provisions

            

    

    

    
      	
            	a.	
              General.
                If, through or as a result of any reorganization, recapitalization,
                reclassification, stock dividend, stock split, reverse stock split
                or
                other similar transaction, (A) the outstanding shares of Common Stock
                are
                increased, decreased or exchanged for a different number or kind
                of shares
                or other securities of the Company, or (B) 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
                or
                other securities, an appropriate and proportionate adjustment may
                be made
                in (i) the maximum number and kind of shares reserved for issuance
                under
                the Plan, (ii) the number and kind of shares or other securities
                subject
                to this option, and (iii) the price for each share subject to this
                option,
                without changing the aggregate purchase price as to which this option
                remains exercisable. Notwithstanding the foregoing, no adjustment
                shall be
                made pursuant to this Section 9 if such adjustment would cause this
                option
                to fail to comply with Rule 16b-3.

            

    

    

    
      	
            	b.	
              Board
                Authority to Make Adjustments.
                Any adjustments under this Section 9 will be made by the Board of
                Directors, whose determination as to what adjustments, if any will
                be made
                and the extent thereof will be final, binding and conclusive. Upon
                exercise of this option, the Company may at the discretion of the
                Board of
                Directors, pay to the Optionee cash equal to the fair market value
                of any
                fractional shares created by any such
                adjustments.

            

    

    

    
      	
            	c.	
              Limits
                on Adjustments.
                No adjustment shall be made under this Section 9 which would, within
                the
                meaning of any applicable provision of the Code, constitute a
                modification, extension or renewal of this option or a grant of additional
                benefits to the Optionee.

            

    

    

    
      	10.	
              Withholding
                Taxes.
                The Company’s obligation to deliver shares of Common Stock upon the
                exercise of this option shall be subject to the Optionee’s satisfaction of
                all applicable federal, state, local and foreign taxes of any kind
                required by law to be withheld with respect to any shares issued
                upon
                exercise of this option. If the Company, in its discretion, determines
                that it must or should withhold or pay over tax with respect to the
                exercise of this option or a Disqualifying Disposition (as defined
                in
                Section 11 below) of shares of Common Stock acquired by the Optionee
                on
                exercise of this option, the Optionee hereby agrees that, at the
                option of
                the Company, Optionee will pay to the Company or the Company may
                withhold
                from the Optionee’s wages the appropriate amount of federal, state, local
                and foreign taxes attributable to such Disqualifying Disposition.
                If any
                portion of this option is treated as a non-qualified option, the
                Optionee
                hereby agrees that, at the option of the Company, Optionee will pay
                to the
                Company or the Company may withhold from the Optionee’s wages the
                appropriate amount of federal, state, local and foreign taxes attributable
                to the Optionee’s exercise of such non-qualified option. At the Company’s
                discretion, the amount required to be withheld may be withheld in
                cash
                from such wages, or (with respect to compensation income attributable
                to
                the exercise of this option) in kind from the Common Stock otherwise
                deliverable to the Optionee on exercise of this option. The Optionee
                further agrees that, if the Company does not withhold an amount from
                the
                Optionee’s wages sufficient to satisfy the Company’s withholding
                obligation, the Optionee will reimburse the Company on demand, in
                cash,
                for the amount under withheld.

            

    

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
      	11.	
              Disqualifying
                Disposition.
                Although the parties intend that this option shall qualify as an
                Incentive
                Stock Option, if this option is determined not to be an Incentive
                Stock
                Option, the Optionee understands that the Company is not responsible
                to
                compensate the Optionee or otherwise make up for the treatment of
                this
                option as a non-qualified stock option. The Optionee should consult
                with
                the Optionee’s own tax advisors regarding the tax effects of this option
                and the requirements necessary to obtain favorable treatment under
                the
                Code, including, but not limited to, holding period requirements.
                The
                Optionee agrees to notify the Company in writing immediately after
                the
                Optionee makes a Disqualifying Disposition of any shares of Common
                Stock
                acquired pursuant to the exercise of this option. Generally, a
                Disqualifying Disposition is any disposition (whether by sale, exchange,
                gift, transfer, or otherwise) of such shares before the later of
                (a) two
                years after the date the Optionee was granted this option or (b)
                one-year
                after the date the Optionee acquired shares by exercising this option.
                If
                the Optionee dies before such shares are sold, these holding period
                requirements do not apply and no Disqualifying Disposition would
                occur.
                The Optionee also agrees to provide the Company with any information
                which
                it shall request concerning any such disposition. The Optionee
                acknowledges that he or she will forfeit the favorable income tax
                treatment otherwise available with respect to the exercise of this
                Incentive Stock Option if he or she makes a Disqualifying Disposition
                of
                the shares acquired on exercise of this
                option.

            

    

    

    
      	12.	
              Investment
                Representations; Legends; Limitations on Certain
                Dispositions

            

    

    

    
      	
            	a.	
              Representations.
                The Optionee represents, warrants and covenants
                that:

            

    

    

    
      	
            	(i)	
              Any
                shares purchased upon exercise of this option shall be acquired for
                the
                Optionee’s account for investment only and not with a view to, or for sale
                in connection with, any distribution of the shares in violation of
                the
                Securities Act of 1933, as amended (the “Securities Act”), or any rule or
                regulation under the Securities
                Act.

            

    

    

    
      	
            	(ii)	
              The
                Optionee has had such opportunity as he or she has deemed adequate
                to
                obtain from representatives of the Company such information as is
                necessary to permit the Optionee to evaluate the merits and risks
                of his
                or her investment in the Company.

            

    

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    
      	
            	(iii)	
              The
                Optionee is able to bear the economic risk of holding shares acquired
                pursuant to the exercise of this option for an indefinite
                period.

            

    

    

    
      	
            	(iv)	
              The
                Optionee understands that (A) the shares acquired pursuant to the
                exercise
                of this option will not be registered under the Securities Act and
                are
                “restricted securities” within the meaning of Rule 144 under the
                Securities Act; (B) such shares cannot be sold, transferred or otherwise
                disposed of unless they are subsequently registered under the Securities
                Act or an exemption from registration is then available; (C) in any
                event,
                an exemption from registration under Rule 144 or otherwise under
                the
                Securities Act may not be available for at least one-year and even
                then
                will not be available unless a public market then exists for the
                Common
                Stock, adequate information concerning the Company is then available
                to
                the public and other terms and conditions of Rule 144 are complied
                with;
                and (D) there is now no registration statement on file with the Securities
                and Exchange Commission with respect to any stock of the Company
                and the
                Company has no obligation or current intention to register any shares
                acquired pursuant to the exercise of this option under the Securities
                Act.

            

    

    

    By
      making
      payment upon exercise of this option, the Optionee shall be deemed to have
      reaffirmed, as of the date of such payment, the representations made in this
      Section 12.

    

    
      	
            	c.	
              Limitations
                on Certain Dispositions.
                The Optionee agrees, by accepting this option, that if the Company
                offers
                any of its Common Stock for sale pursuant to a registration statement
                under the Securities Act, the Optionee will not, directly or indirectly,
                without the prior written consent of the Company, sell, offer or
                agree to
                sell, grant any option to purchase or otherwise transfer or dispose
                of any
                shares of Common Stock purchased upon exercise of this option for
                a period
                of 90 days after the effective date of such registration
                statement.

            

    

    

    
      	13.	
              Interpretation
                of this Agreement.
                All decisions and interpretations made by the Committee (as defined
                in
                Section 2 of the Plan) with regard to any question arising under
                the Plan
                or this Agreement shall be binding and conclusive on the Company
                and the
                Optionee and any other person entitled to exercise this option as
                provided
                herein. In the event there is any inconsistency between the provisions
                of
                this Agreement and of the Plan, the provisions of the Plan shall
                govern,
                subject to the provisions of Section 2
                above.

            

    

    

    
      	14.	
              Miscellaneous

            

    

    

    
      	
            	a.	
              Except
                as provided herein, this Option Agreement may not be amended or otherwise
                modified unless evidenced in writing and signed by the Company and
                the
                Optionee.

            

    

    

    
      	
            	b.	
              All
                notices under this Option Agreement shall be mailed or delivered
                by hand
                to the parties at their respective addresses set forth beneath their
                names
                below or at such other address as may be designated in writing by
                either
                of the parties to one another.

            

    

    

    
      	
            	c.	
              This
                Option shall be governed by and construed in accordance with the
                laws of
                the State of Delaware.

            

    

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    Date
      of Grant: July 6,
      2006

    

    

    
      	 	
              SMARTVIDEO
                TECHNOLOGIES, INC.

              

              

              

              By:__________________________

              Name:  
                Ronald
                A. Warren

              Title:    
                Corporate
                Secretary

            

    

    

    

    OPTIONEE’S
      ACCEPTANCE

    

    The
      undersigned hereby accepts the foregoing option and agrees to the terms and
      conditions thereof. The undersigned hereby acknowledges receipt of a copy of
      the
      Company’s 2005 Equity Incentive Plan.

    

    

    

    OPTIONEE:
      

    

    

    

    ________________________________

    
      	Name:	
              David Ross

            

    

    
      	Address:	
              740
                W. Palm Ave

            

    

     

    Boca
      Raton,
      FL 22432

    

    
      Corporate
        Seal

    

    
 

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    
      	
              Name
                of Employee (the “Employee”):

            	
              David Ross

            
	
              Date
                of this option grant:

            	
              July 6,
                2006

            
	
              Number
                of shares of the Company’s Common Stock subject to this option
                (“Option
                Shares”):

            	
              One
                Hundred Fifty Thousand

            
	
              Option
                exercise price per share: $1.40

            	
              Vesting
                Start Date: October
                1, 2006

            
	
              Percent
                of Shares Vesting Annually: 50%

            	
              Number
                of Shares Vesting Annually: 75,000

            

    

    

    Vesting
      Schedule

     

    
      	Vesting Date 	Shares Vested	Percent
              Vested

    

    
      	
              October
                1, 2006

            	
              18,750 

            	12.5
              %
	
              January
                1, 2007

            	
              18,750

            	12.5
              %
	
              April
                1, 2007

            	
              18,750

            	12.5
              %
	
              July
                1, 2007

            	
              18.750

            	12.5
              %
	
              October
                1, 2007

            	
              18.750

            	12.5
              %
	
              January
                1, 2008

            	
              18,750

            	12.5
              %
	
              April
                1, 2008

            	
              18,750

            	12.5
              %
	
              July
                1, 2008

            	
              18,750

            	12.5
              %

    

    

    
      
         

      

      
        -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]