Document:

ASSET PURCHASE AGREEMENT
                            ------------------------

THIS AGREEMENT made the 7th day of October, 2003, by and between the Seller,
DYNAMIC MATERIALS CORPORATION, a Delaware Corporation, of 5405 Spine Road,
Boulder, Colorado 80301, ("DMC"), and the Purchaser, SILVERTIP, L.L.C., a
Michigan limited liability company,of 5195 Hampton Place, Saginaw, Michigan
48604 ("Buyer"). DMC and Buyer may also be collectively referred to as "the
parties".

1. Assets to Be Purchased. DMC agrees to sell to Buyer and Buyer agrees to
purchase from DMC, all of the following property, assets and rights utilized in
the business commonly known as Precision Machined Products (the "Business"),
wherever located: all personal and fixture property of every kind and nature,
including, without limitation, all goods (including equipment and any
replacements and accessions thereto) and insurance claims and proceeds and use
of the trade name "Precision Machined Products" (it being understood that DMC
has not registered the trade name Precision Machined Products and makes no
representations or warranties of any kind with respect to the use of such trade
name); provided, however, that inventory, cash and accounts receivable are
specifically excluded and further, provided, that the parties agree that Buyer
is not acquiring any interest in equipment leased by DMC and used in the
Business (all of the foregoing assets used in the Business being transferred to
Buyer are hereinafter referred to collectively as the "Assets"). The Assets will
be more fully described on Exhibit A annexed hereto, to be updated no later than
twenty (20) days after closing.

2. Purchase Price/Terms of Payment. The purchase price for the Assets shall be
FIVE HUNDRED EIGHTY THOUSAND DOLLARS ($580,000.00). At close, Buyer shall
execute and deliver to DMC, a Promissory Note (the "Note") for the full purchase
price, which Note shall provide as follows:

       Interest Rate:                          2 1/2% per annum for the first
                                               six months, thereafter,
                                               5% per annum
       Note Term:                              2-1/2 years (30 months)
       Interest & Payment Commencement Date:   Interest only for the first six
                                               months payable monthly in
                                               arrears, thereafter principal
                                               and interest payable monthly
                                               in arrears
       Monthly Payment of Principal:           $17,500 (months 6 through 29)
       Balloon Payment:                        $160,000 (month 30)

Interest shall accrue on the outstanding balance of the Note and shall be
computed on the basis of a year of 360 days and paid for the actual number of
days elapsed, all as more fully provided for in the Note. Buyer shall be
responsible for payment of all applicable sales and use taxes. The Note shall be
secured by a Security Agreement and UCC-1 Financing Statement covering all
Assets, other than inventory. Buyer shall have the right to sell any of the
Assets during the Note term with the prior written consent of DMC; provided
however, that all proceeds of sale are applied to the outstanding amount due
under the Note and provided, further, that the proceeds of sale are at least
equal to the fair market value of the Assets being sold as determined by DMC in
its sole discretion. Buyer shall have the right to further pledge the Assets for
security to third parties with the prior written consent of DMC; provided
however, that DMC shall retain a first position and any such third party shall
be required to enter into an intercreditor and subordination agreement in form
and substance satisfactory to DMC.

"AS IS" Sale of Assets. BUYER REPRESENTS THAT BUYER INSPECTED THE ASSETS AND
AGREES THAT EXCEPT, AS EXPRESSLY SET FORTH BELOW WITH RESPECT TO TITLE , DMC HAS
NOT MADE AND MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE,
DIRECTLY OR INDIRECTLY, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER,
INCLUDING (WITHOUT LIMITATION) THE SUITABILITY OF SUCH ASSETS, THEIR DURABILITY,

                                       1
<PAGE>

THEIR FITNESS FOR ANY PARTICULAR PURPOSE, THEIR MERCHANTABILITY, THEIR
CONDITION, THEIR CAPACITY, THEIR OPERATION, THEIR PERFORMANCE, THEIR DESIGN,
THEIR MATERIALS, THEIR WORKMANSHIP AND/OR THEIR QUALITY. BUYER IS PURCHASING THE
ASSETS "AS IS". DMC SHALL NOT BE LIABLE TO BUYER FOR ANY LOSS, DAMAGE, INJURY OR
EXPENSE OF ANY KIND OR NATURE CAUSED, DIRECTLY OR INDIRECTLY, BY ANY ASSET SOLD
UNDER THIS AGREEMENT OR THE USE OR MAINTENANCE THEREOF OR ANY DEFECT THEREIN,
THE FAILURE OF OPERATION THEREOF, OR ANY REPAIR, SERVICE OR ADJUSTMENT THERETO,
OR BY ANY DELAY OR FAILURE TO PROVIDE ANY THEREOF, OR BY ANY INTERRUPTION OF
SERVICE OR LOSS OF USE THEREOF OR FOR ANY LOSS OF BUSINESS OR DAMAGE WHATSOEVER
AND HOWSOEVER CAUSED, INCLUDING (WITHOUT LIMITATION) ANY LOSS OF ANTICIPATORY
PROFITS OR ANY OTHER INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES, NOR SHALL DMC
BE LIABLE FOR ANY DAMAGES WHICH MAY BE ASSESSED AGAINST BUYER IN ANY ACTION FOR
INFRINGEMENT OF ANY UNITED STATES PATENT, TRADEMARK OR COPYRIGHT. DMC MAKES NO
WARRANTY AS TO THE TREATMENT OF THIS AGREEMENT FOR TAX OR ACCOUNTING PURPOSES.
DMC MAKES NO WARRANTY AS TO THE COMPLIANCE OF THE ASSETS WITH APPLICABLE
GOVERNMENT REGULATIONS OR REQUIREMENTS.

Buyer acknowledges that the business is currently operated on premises leased
from a third party located at 1017 Smithfield Drive, Fort Collins, Colorado
80524, which lease is prepaid through and expires on November 30, 2003. In
consideration of the sum of ONE DOLLAR ($1.00) paid to DMC by Buyer, Buyer shall
have the right to occupy the leased premises through November 30, 2003, and be
entitled to all other rights and privileges granted DMC under the lease
arrangement; provided, however, that it shall be the responsibility of Buyer to
obtain the written consent of the landlord to the occupation and use of the
leased premises by Buyer. All obligations and duties under the lease arrangement
shall remain the responsibility of DMC, excepting however, utilities and
insurance from date of close through November 30, 2003, which shall be assumed
by Buyer and further excepting that Buyer shall assume all responsibility and
obligations with regard to the environmental condition of the leased premises as
of the date of close.

3.  Representations, Warranties and Covenants of DMC. DMC
represents and warrants the following to be true:

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                      a) Corporate. DMC has the power and authority to perform
                      its obligations under this Agreement, which shall be
                      binding upon and enforceable against DMC in
                      accordance with its terms. DMC is a duly organized
                      Delaware Corporation, validly existing and in good
                      standing under the laws of the State of Delaware, and
                      is validly authorized to conduct business in Delaware
                      and to consummate the transaction contemplated by
                      this Agreement. DMC has the power to own its property
                      and to carry on its business as and where its
                      business is now conducted.

                      b) Title. DMC has good and marketable title to the
                      Assets except for liens in favor of Wells Fargo
                      Business Credit which liens shall be released as soon
                      as practicable. DMC, for itself and its successors
                      and assigns, covenants and agrees to and with Buyer
                      to warrant and defend both title to the Assets and
                      the sale of the Assets conveyed hereunder against all
                      and every person whomever.

                      c) Absence of Liens. DMC represents and warrants that
                      the Assets conveyed hereunder are free and clear of
                      all liens, encumbrances, and third-party interests,
                      except liens in favor of Wells Fargo Business Credit.

                      d) Violation/Breach. The execution and/or performance
                      of this Agreement, or any other documents to be
                      executed in accordance herewith, will
                      not violate in any material respect any laws,
                      statutes, local ordinances, state or federal
                      regulations, court or administrative orders or
                      rulings applicable to DMC, nor is the execution
                      and/or performance of this Agreement, or any other
                      documents to be executed in accordance herewith,
                      in violation of any material condition or material
                      restriction in effect for any for material financing
                      ormaterial loan document, whether secured or unsecured
                      to which DMC is a party or by which DMC is bound.

                      e) Environmental Report. DMC has delivered to Buyer a
                      copy of the Report of a Phase I Environmental Site
                      Assessment prepared for Precision Machine Products
                      and dated October, 1998.

4. Representations, Warranties and Covenants of Buyer. Buyer makes the
following representations, warranties and covenants:

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<PAGE>

                      a) Name . Buyer is a validly existing limited liability
                      company duly organized under the laws of the State of
                      Michigan. Buyer will qualify to do business in the
                      State of Colorado within twenty (20) days of the date
                      hereof. Buyer agrees to give DMC at least twenty (20)
                      days' prior written notice of any change of its name,
                      address, or state of organization.

                      b) Authority. Buyer the power and authority to own its
                      assets, to conduct its business as now being
                      conducted and to perform its obligations under this
                      Agreement, which shall be binding upon and
                      enforceable against Buyer accordance with its terms.
                      Buyer is authorized to consummate the transaction
                      contemplated by this Agreement, to deliver this
                      Agreement and the documents and instruments to be
                      delivered herewith.

                      c) Location of Assets. Buyer hereby represents that the
                      Assets shall be owned by it and held at the leased
                      premises located at 1017 Smithfield Drive, Fort
                      Collins, Colorado 80524. Buyer agrees to give DMC at
                      least twenty (20) days' prior written notice of any
                      change in the ownership or location of the Assets.

                      d) Solvency. Buyer hereby represents and warrants that
                      it is solvent as of the date hereof and, after giving
                      effect to the transactions contemplated by this
                      Agreement, will be solvent, will have assets in
                      excess of liabilities and will be generally able to
                      pay its debts as they become due in the ordinary
                      course.

                      e) Violation/Breach. The execution and/or performance
                      of this Agreement, or any other documents to be
                      executed in accordance herewith, will not violate in
                      any material respect any laws, statutes, local ordinances,
                      state or federal regulations, court or administrative
                      orders or rulings applicable to Buyer, nor is the
                      execution and/or performance of this Agreement, or
                      any other documents to be executed in accordance
                      herewith, in violation of any material condition or
                      material restriction in effect for any for material
                      financing or material loan document, whether secured
                      or unsecured to which Buyer is a party or by which Buyer
                      is bound.

5. Close/Closing Documents/Possession. Close shall take place at a
place mutually agreed upon by the parties, on or before October 7, 2003. At
close, each party shall execute and deliver to the appropriate party or entity,
any and all documents required to consummate the transaction contemplated by
this Agreement, to include, but not by way of limitation, Bill of Sale, Note,
Security Agreement, UCC-1 Financing Statement, Resolution(Buyer), Corporate
Resolution (DMC), Certificate of Good Standing (DMC), and applicable sales tax
forms. Possession of the Assets shall be given to Buyer immediately following
close. All risk of loss shall be borne by DMC until final sale is closed, and
thereafter by Buyer, provided however, that Buyer shall, at his sole discretion,
have the right to terminate this Agreement, upon notice to DMC, if the Assets
are materially damaged at any time prior to close, and, prior to close the
damage cannot reasonably be repaired upon payment of the sums available by
insurance settlement.

6. Right to Assign. This Agreement and the covenants herein contained
shall be binding upon and inure to the benefit of the parties and their
respective heirs, administrators, representatives, successors, and assigns;
provided, however, that Buyer may not assign this Agreement without the prior
written consent of DMC, which consent shall not be unreasonably withheld.

7. Representations, Warranties and Covenants to Survive Close. Except
to the extent that the rights and duties of the parties are altered by the
documents executed at time of close, the agreement of the parties with respect
to all matters addressed in this Agreement shall survive close.

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<PAGE>

8. Default. In the event either DMC or Buyer shall default in the
performance of their obligations herein, the non-defaulting party may: (a)
specifically enforce the terms hereof; and (b) pursue such other remedies as are
available at law. All rights shall be cumulative.

9. Notices. Except for any notice required under applicable law to be
given in another manner, any notice or demand required or permitted to be given
pursuant to this Agreement shall be deemed effective only if in writing and
delivered either personally or by certified mail, postage fully prepaid, return
receipt requested, or by ordinary mail with proof of mailing, to the appropriate
party at the addresses listed on page one (1) of this Agreement, or to such
other address as may be designated by any party, from time to time, in writing
and in conformity with the terms of this Section. Additionally, a copy of any
notice to Buyer shall also be furnished to James J. Shinners of Shinners & Cook,
P.C., Attorneys at Law, 5195 Hampton Place, Saginaw, Michigan 48604-9576, via
regular first-class mail.

10. Covenant of Further Assurances. The parties covenant, each with
the other, and their respective heirs, administrators, representatives,
successors, and assigns, that each party shall, at any time and at all times
hereafter, upon reasonable request, make, do, execute and/or deliver all such
other and further reasonable assurances, acts, deeds, documentation, and things
as in the opinion of competent counsel may be necessary or proper to effectuate
the intentions of the parties and complete this transaction.

11. General Construction/Miscellaneous. This Agreement and all other
documentation executed in accordance herewith shall be governed in all respects,
whether as to validity, construction, capacity, performance or otherwise, by the
laws of the State of Michigan. The individual executing this Agreement on behalf
of DMC represents that he is authorized to execute this Agreement and bind the
Corporation. Words of any gender shall be held to include the other gender and
the words in the singular number shall be held to include the plural when the
context so requires. Unless the context clearly indicates to the contrary, time
shall be deemed to be of the essence in the interpretation of this Agreement. In
the event the time for performance of any act falls on a Saturday, Sunday, or
legal holiday, the time for performance shall be extended through the next
business day. Section titles have been utilized for convenience and are not part
of this Agreement or interpretive of any of its language or intent. This
Agreement, together with Exhibit A, the Bill of Sale, Note and Security
Agreement, sets forth the entire agreement of the parties on the subjects
contained herein. All prior agreements between the parties on those subjects
have been merged herein. Each party acknowledges that they have not agreed to,
or relied on any representation, inducement, or condition not expressly set
forth in this Agreement, Exhibit A, the Bill of Sale, Note and Security
Agreement. No modification of this Agreement shall be effective unless in
writing and executed by all parties. The invalidation or unenforceability of one
or more of the provisions of this Agreement shall not affect the validity of the
remaining provisions. No provision of this Agreement shall be interpreted for or
against any party because that party or that party's legal representative
drafted the Agreement or its provisions.

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<PAGE>

IN WITNESS WHEREOF, this Asset Purchase Agreement has been executed the day and
year first written.

Witnesses:                           Signed and Sealed:

                                     DYNAMIC MATERIALS CORPORATION, a Delaware
                                     Corporation, Seller

---------------------------          By:   RICHARD A. SANTA
(As To Seller Only)                  Its:  Vice President, Secretary, and Chief
                                           Financial Officer

---------------------------          SILVERTIP, L.L.C., a
(As To Seller Only)                  Michigan Limited Liability Corporation

---------------------------
(As To Purchaser Only)               ------------------------------------------
                                      By:   R. James Paas
                                      Its:   Member

---------------------------
(As To Purchaser Only)

                                       6F5 Networks-- 1998 Equity Incentive Plan

EXHIBIT 10.1

 

F5 NETWORKS, INC.

UROAM ACQUISITION
EQUITY INCENTIVE PLAN

Adopted July 15, 2003

Termination Date:  July 14, 2013

       
1.          Purposes.

       
(a)        Eligible Stock Award Recipients.  The persons eligible to receive
Stock Awards are those employees of uRoam, Inc. to whom the Company extends an offer of employment in connection with its purchase
of substantially all the assets of uRoam.

       
(b)        Available Stock Awards.  The purpose of the Plan is to provide an
inducement for employees of uRoam, Inc. to accept offers of employment by the Company, and a means by which they   may be
given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock
Awards:  (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights to acquire
restricted stock.

       
(c)        General Purpose.  The Company, by means of the Plan, seeks to induce
eligible recipients of Stock Awards to accept offers of employment from the Company, to retain the services of these individuals
and to provide an incentive for them to exert maximum efforts for the success of the Company and its Affiliates.

       
2.         Definitions.

       
(a)        "Affiliate" means any parent corporation or subsidiary
corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively,
of the Code.

       
(b)        "Board" means the Board of Directors of the Company.

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

       
(d)        "Committee" means a Committee appointed by the Board in
accordance with subsection 3(c).

       
(e)        "Common Stock" means the common stock of the
Company.

       
(f)        "Company" means F5 Networks, Inc., a Washington
corporation.

       
(g)        "Consultant" means any person, including an advisor, (i)
who is engaged by the Company or an Affiliate to render services other than as an Employee or as a Director or (ii) who is a member
of the Board of Directors of an Affiliate.

1

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

       
(i)         "Covered Employee" means the chief executive
officer and the four (4) other highest compensated officers of the Company for whom total compensation is required to be reported
to shareholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

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

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

       
(l)         "Employee" means any person employed by the
Company or an Affiliate.  Mere service as a Director or payment of a director's fee by the Company or an Affiliate shall
not be sufficient to constitute "employment" by the Company or an Affiliate.

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

       
(n)        "Fair Market Value" means, as of any date, the value of
the Common Stock determined as follows:

               
(i)          If the Common Stock is listed on any established stock exchange or
traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the
exchange or market with the greatest volume of trading in the Common Stock) on the day of determination or, if the day of
determination is not a market trading day, then on the last market trading day prior to the day of determination, as reported in
The Wall Street Journal or such other source as the Board deems reliable.

2

 

               
(ii)         In the absence of such markets for the Common Stock, the Fair Market Value
shall be determined in good faith by the Board.

       
(o)       "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

       
(p)        "Listing Date" means the first date upon which the
Common Stock is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for
designation) upon notice of issuance as a national market security on an interdealer quotation system if such securities exchange
or interdealer quotation system has been certified in accordance with the provisions of Section 25100(o) of the California
Corporate Securities Law of 1968.

       
(q)        "Non-Employee Director" means a Director of the Company
who either (i) is not a current Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation
(directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or in any capacity
other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K
promulgated pursuant to the Securities Act ("Regulation S-K")), does not possess an interest in any other transaction
as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship as to
which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee
director" for purposes of Rule 16b-3.

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

       
(s)        "Officer" means a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

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

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

       
(v)        "Optionholder" means a person to whom an Option is
granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

       
(w)       "Outside Director" means a Director of the Company who either
(i) is not a current employee of the Company or an "affiliated corporation" (within the meaning of Treasury Regulations
promulgated under Section 162(m) of the Code), is not a former employee of the Company or an
"affiliated corporation"
receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the
Company or an "affiliated corporation" at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other than as a Director or (ii) is otherwise
considered an "outside director" for purposes of Section 162(m) of the Code.

3

       
(x)        "Participant" means a person to whom a Stock Award is
granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.

       
(y)        "Plan" means this F5 Networks, Inc. 1998 Equity
Incentive Plan.

       
(z)        "Rule 16b-3" means Rule 16b-3 promulgated under the
Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

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

       
(bb)      "Stock Award" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

       
(cc)      "Stock Award Agreement" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant.  Each Stock
Award Agreement shall be subject to the terms and conditions of the Plan.

       
(dd)      "Ten Percent Shareholder" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company or of any of its Affiliates.

       
3.         Administration.

       
(a)        Administration by Board.  The Board shall administer the Plan unless
and until the Board delegates administration to a Committee or an administrator, as provided in subsection 3(c).

       
(b)        Powers of Board.  The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

               
(i)          To determine from time to time which of the persons eligible under
the Plan shall be granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of types of Stock
Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time or times when
a person shall be permitted to receive stock pursuant to a Stock Award; and the number of shares with respect to which a Stock
Award shall be granted to each such person.

               
(ii)         To construe and interpret the Plan and Stock Awards granted under it, and
to establish, amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may
correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall
deem necessary or expedient to make the Plan fully effective.

4

               
(iii)        To amend the Plan or a Stock Award as provided in Section 12.

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

       
(c)        Delegation to Committee.

               
(i)         General.  The Board may delegate administration of the Plan to a
Committee or Committees of one or more members of the Board, and the term "Committee" shall apply to any person or
persons to whom such authority has been delegated.  The Board or the Committee may further delegate its authority and
responsibilities under the Plan to an Officer.  However, if administration is delegated to an Officer, such Officer may grant
Stock Awards only within guidelines established by the Board or the Committee, and only the Board or the Committee may make a Stock
Award to an Officer or Director.  If administration is delegated to a Committee, the Committee shall have, in connection with
the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee
any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter
be to the Committee or subcommittee, or an Officer to whom authority has been delegated), subject, however, to such resolutions,
not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  The Board may abolish the
Committee at any time and revest in the Board the administration of the Plan.

               
(ii)        Committee Composition.  In the discretion of the Board, a Committee
may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3.  Within the scope of such authority, the Board or the Committee may (i)
delegate to a committee of one or more members of the Board who are not Outside Directors the authority to grant Stock Awards to
eligible persons who are either (1) not then Covered Employees and are not expected to be Covered Employees at the time of
recognition of income resulting from such Stock Award or (2) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code and/or) (ii) delegate to a committee of one or more members of the Board who are not Non-Employee
Directors the authority to grant Stock Awards to eligible persons who are not then subject to Section 16 of the Exchange Act.

       
4.         Shares Subject to the Plan.

       
(a)        Share Reserve.  Subject to the provisions of Section 11 relating to
adjustments upon changes in stock, the stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate Three
Million (3,000,000) shares of Common Stock.

5

       
(b)        Reversion of Shares to the Share Reserve.  If any Stock Award shall
for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full, the stock not acquired
under such Stock Award shall revert to and again become available for issuance under the Plan.  The number of shares of Common
Stock that may be issued pursuant to Stock Awards, as specified in subsection 4(a), shall only be reduced to reflect new shares
that are actually delivered under the Plan.  Therefore, a stock-for-stock exercise of an Option shall result in only the net
number of additional shares of Common Stock being counted against the share reserve.

       
(c)        Source of Shares.  The stock subject to the Plan may be unissued
shares or reacquired shares, bought on the market or otherwise.

       
5.         Eligibility.

       
(a)        Eligibility for Specific Stock Awards.  Incentive Stock Options may be
granted only to Employees.  Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and
Consultants.

       
(b)        Ten Percent Shareholders.  No Ten Percent Shareholder shall be
eligible for the grant of an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent
(110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not exercisable after the expiration of
five (5) years from the date of grant.

       
(c)        Section 162(m) Limitation.  Subject to the provisions of Section 11
relating to adjustments upon changes in stock, no employee shall be eligible to be granted Options covering more than Two Hundred
Thousand (200,000) shares of the Common Stock during any calendar year.  This subsection 5(c) shall not apply prior to the
Listing Date and, following the Listing Date, this subsection 5(c) shall not apply until (i) the earliest of:  (1) the first
material modification of the Plan (including any increase in the number of shares reserved for issuance under the Plan in
accordance with Section 4); (2) the issuance of all of the shares of Common Stock reserved for issuance under the Plan; (3) the
expiration of the Plan; or (4) the first meeting of shareholders at which Directors of the Company are to be elected that occurs
after the close of the third calendar year following the calendar year in which occurred the first registration of an equity
security under Section 12 of the Exchange Act; or (ii) such other date required by Section 162(m) of the Code and the rules and
regulations promulgated thereunder.

       
6.         Option Provisions.

       
Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  All
Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if a
certificate is issued for shares purchased on exercise of an Option, a separate certificate or certificates will be issued for
shares purchased on exercise of each type of Option.  The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of
the following provisions:

6

       
(a)        Term.  Subject to the provisions of subsection 5(b) regarding Ten
Percent Shareholders, no Option shall be exercisable after the expiration of ten (10) years from the date it was granted.

       
(b)        Exercise Price of an Incentive Stock Option.  Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise price of each Incentive Stock Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is
granted.  Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set
forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424(a) of the Code.

       
(c)        Exercise Price of a Nonstatutory Stock Option.  Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise price of each Nonstatutory Stock Option granted
prior to the Listing Date shall be not less than eighty-five percent (85%) of the Fair Market Value of the stock subject to the
Option on the date the Option is granted.  The exercise price of each Nonstatutory Stock Option granted on or after the
Listing Date shall be not less than fifty percent (50%) of the Fair Market Value of the stock subject to the Option on the date the
Option is granted.  Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower
than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another
option in a manner satisfying the provisions of Section 424(a) of the Code.

       
(d)        Consideration.  The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is
exercised or (ii) at the discretion of the Board at the time of the grant of the Option (or subsequently in the case of a
Nonstatutory Stock Option) by (1) delivery to the Company of other Common Stock, (2) according to a deferred payment or other
arrangement (which may include, without limiting the generality of the foregoing, the use of other Common Stock) with the
Participant or (3) in any other form of legal consideration that may be acceptable to the Board.  Notwithstanding the
foregoing, no Officer or Director may pay the exercise price of an Option by a deferred payment arrangement.

       
In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the
minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts
other than amounts stated to be interest under the deferred payment arrangement. 

       
(e)        Transferability of an Incentive Stock Option.  An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the
lifetime of the Optionholder only by the Optionholder.  Notwithstanding the foregoing provisions of this subsection 6(e), the
Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who,
in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

7

       
(f)        Transferability of a Nonstatutory Stock Option.  A Nonstatutory Stock Option
granted prior to the Listing Date shall be transferable to the extent that transferability is both permitted by Section
260.140.41(d) of Title 10 of the California Code of Regulations at the time the Option is granted and provided for in the Option
Agreement.  A Nonstatutory Stock Option granted on or after the Listing Date shall be transferable to the extent provided in
the Option Agreement.  If the Nonstatutory Stock Option does not provide for transferability, then the Nonstatutory Stock
Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the
lifetime of the Optionholder only by the Optionholder.  Notwithstanding the foregoing provisions of this subsection 6(f), the
Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who,
in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

       
(g)        Vesting Generally.  The total number of shares of Common Stock subject
to an Option may, but need not, vest and therefore become exercisable in periodic installments which may, but need not, be
equal.  The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may
be based on performance or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options
may vary.  The provisions of this subsection 6(g) are subject to any Option provisions governing the minimum number of shares
as to which an Option may be exercised.

       
(h)        Termination of Continuous Service.  In the event an
Optionholder's Continuous Service terminates (other than upon the Optionholder's death or Disability), the Optionholder
may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination) but
only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the
Optionholder's Continuous Service (or such longer or shorter period specified in the Option Agreement, which, for Options
granted prior to the Listing Date, shall not be less than thirty (30) days, unless such termination is for cause), or (ii) the
expiration of the term of the Option as set forth in the Option Agreement.  If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate.

       
(i)         Extension of Termination Date.  An Optionholder's Option
Agreement may also provide that if the exercise of the Option following the termination of the Optionholder's Continuous
Service (other than upon the Optionholder's death or Disability) would be prohibited at any time solely because the issuance
of shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of
(i) the expiration of the term of the Option set forth in subsection 6(a) or (ii) the expiration of a period of three (3) months
after the termination of the Optionholder's Continuous Service during which the exercise of the Option would not be in
violation of such registration requirements.

       
(j)         Disability of Optionholder.  In the event an
Optionholder's Continuous Service terminates as a result of the Optionholder's Disability, the Optionholder may
exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination), but
only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer
or shorter period specified in the Option Agreement, which, for Options granted prior to the Listing Date, shall not be less than
six (6) months) or (ii) the expiration of the term of the Option as set forth in the Option Agreement.  If, after termination,
the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate.

8

       
(k)       Death of Optionholder.  In the event (i) an Optionholder's Continuous
Service terminates as a result of the Optionholder's death or (ii) the Optionholder dies within the period (if any) specified
in the Option Agreement after the termination of the Optionholder's Continuous Service for a reason other than death, then
the Option may be exercised (to the extent the Optionholder was entitled to exercise the Option as of the date of death) by the
Optionholder's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person
designated to exercise the option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but only within the
period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period
specified in the Option Agreement, which, for Options granted prior to the Listing Date, shall not be less than six (6) months) or
(2) the expiration of the term of such Option as set forth in the Option Agreement.  If, after death, the Option is not
exercised within the time specified herein, the Option shall terminate.

       
(l)         Re-Load Options.  Without in any way limiting the authority of
the Board to make or not to make grants of Options hereunder, the Board shall have the authority (but not an obligation) to include
as part of any Option Agreement a provision entitling the Optionholder to a further Option (a
"Re-Load Option") in the
event the Optionholder exercises the Option evidenced by the Option Agreement, in whole or in part, by surrendering other shares of
Common Stock in accordance with this Plan and the terms and conditions of the Option Agreement.  Any such Re-Load Option shall
(i) provide for a number of shares equal to the number of shares surrendered as part or all of the exercise price of such Option;
(ii) have an expiration date which is the same as the expiration date of the Option the exercise of which gave rise to such Re-Load
Option; and (iii) have an exercise price which is equal to one hundred percent (100%) of the Fair Market Value of the Common Stock
subject to the Re-Load Option on the date of exercise of the original Option.  Notwithstanding the foregoing, a Re-Load Option
shall be subject to the same exercise price and term provisions heretofore described for Options under the Plan.

       
Any such Re-Load Option may be an Incentive Stock Option or a Nonstatutory Stock Option, as the Board may designate at the time
of the grant of the original Option; provided, however, that the designation of any Re-Load Option as an Incentive Stock Option
shall be subject to the one hundred thousand dollars ($100,000) annual limitation on exercisability of Incentive Stock Options
described in subsection 10(d) and in Section 422(d) of the Code.  There shall be no Re-Load Options on a Re-Load Option. 
Any such Re-Load Option shall be subject to the availability of sufficient shares under subsection 4(a) and the
"Section
162(m) Limitation" on the grants of Options under subsection 5(c) and shall be subject to such other terms and conditions as
the Board may determine which are not inconsistent with the express provisions of the Plan regarding the terms of Options.

9

       
7.         Provisions of Stock Awards other than Options.

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

               
(i)         Consideration.  A stock bonus shall be awarded in consideration
for past services actually rendered to the Company for its benefit.

               
(ii)        Vesting.  Subject to the
"Repurchase Limitation" in
subsection 10(g), shares of Common Stock awarded under the stock bonus agreement may, but need not, be subject to a share
repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board.

               
(iii)       Termination of Participant's Continuous Service.  Subject to the
"Repurchase Limitation" in subsection 10(g), in the event a Participant's Continuous Service terminates, the
Company may reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of
termination under the terms of the stock bonus agreement.

               
(iv)       Transferability.  For a stock bonus award made before the Listing Date,
rights to acquire shares under the stock bonus agreement shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Participant only by the Participant.  For a stock bonus award
made on or after the Listing Date, rights to acquire shares under the stock bonus agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its
discretion, so long as stock awarded under the stock bonus agreement remains subject to the terms of the stock bonus agreement.

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

               
(i)         Purchase Price.  Subject to the provisions of subsection 5(b)
regarding Ten Percent Shareholders, the purchase price under each restricted stock purchase agreement shall be such amount as the
Board shall determine and designate in such restricted stock purchase agreement.  For restricted stock awards, the purchase
price shall not be less than fifty percent (50%) of the stock's Fair Market Value on the date such award is made or at the
time the purchase is consummated.

10

               
(ii)        Consideration.  The purchase price of stock acquired pursuant to the
restricted stock purchase agreement shall be paid either:  (i) in cash at the time of purchase; (ii) at the discretion of the
Board, according to a deferred payment or other arrangement with the Participant; or (iii) in any other form of legal consideration
that may be acceptable to the Board in its discretion.  Notwithstanding the foregoing, no Officer or Director may pay the
purchase price for restricted stock by a deferred payment arrangement.

               
(iii)       Vesting.  Subject to the
"Repurchase Limitation" in subsection
10(g), shares of Common Stock acquired under the restricted stock purchase agreement must be subject to a share repurchase option
in favor of the Company in accordance with a vesting schedule to be determined by the Board.

               
(iv)       Termination of Participant's Continuous Service.  Subject to the
"Repurchase Limitation" in subsection 10(g), in the event a Participant's Continuous Service terminates, the
Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not
vested as of the date of termination under the terms of the restricted stock purchase agreement.

               
(v)        Transferability.  For a restricted stock award made before the Listing
Date, rights to acquire shares under the restricted stock purchase agreement shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant.  For
a restricted stock award made on or after the Listing Date, rights to acquire shares under the restricted stock purchase agreement
shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase
agreement, as the Board shall determine in its discretion, so long as stock awarded under the restricted stock purchase agreement
remains subject to the terms of the restricted stock purchase agreement.

       
8.         Covenants of the Company.

       
(a)        Availability of Shares.  During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock required to satisfy such Stock Awards.

       
(b)        Securities Law Compliance.  The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to
issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require
the Company to register under the Securities Act the Plan, any Stock Award or any stock issued or issuable pursuant to any such
Stock Award.  If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance and sale of stock under the Plan, the Company shall
be relieved from any liability for failure to issue and sell stock upon exercise of such Stock Awards unless and until such
authority is obtained.

11

       
9.         Use of Proceeds from Stock.

       
Proceeds from the sale of stock pursuant to Stock Awards shall constitute general funds of the Company.

       
10.       Miscellaneous.

       
(a)        Acceleration of Exercisability and Vesting.  The Board shall have the
power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part
thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may
first be exercised or the time during which it will vest.

       
(b)        Shareholder Rights.  No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares subject to such Stock Award unless and until such
Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms.

       
(c)        No Employment or other Service Rights.  Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon any Participant or other holder of Stock Awards any
right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall
affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or
without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant's agreement with the Company or an
Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions
of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

       
(d)        Incentive Stock Option $100,000 Limitation.  To the extent that the
aggregate Fair Market Value (determined at the time of grant) of stock with respect to which Incentive Stock Options are
exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates)
exceeds one hundred thousand dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in
which they were granted) shall be treated as Nonstatutory Stock Options.

       
(e)        Investment Assurances.  The Company may require a Participant, as a
condition of exercising or acquiring stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to
the Participant's knowledge and experience in financial and business matters and/or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and
(ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring the stock subject to the
Stock Award for the Participant's own account and not with any present intention of selling or otherwise distributing the
stock.  

12

 The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (iii) the
issuance of the shares upon the exercise or acquisition of stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act or (iv) as to any particular requirement, a determination is made by
counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. 
The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel
deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends
restricting the transfer of the stock.

       
(f)        Withholding Obligations.  To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise
or acquisition of stock under a Stock Award by any of the following means (in addition to the Company's right to withhold
from any compensation paid to the Participant by the Company) or by a combination of such means:  (i) tendering a cash
payment; (ii) authorizing the Company to withhold shares from the shares of the Common Stock otherwise issuable to the Participant
as a result of the exercise or acquisition of stock under the Stock Award; or (iii) delivering to the Company owned and
unencumbered shares of the Common Stock.

       
(g)        Repurchase Limitation.  The terms of any repurchase option shall be
specified in the Stock Award and may be either at Fair Market Value at the time of repurchase or at the original purchase
price.  To the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the California Code of Regulations,
any repurchase option contained in a Stock Award granted prior to the Listing Date to a Participant who is not an Officer, Director
or Consultant shall be upon the terms described below:

               
(i)         Fair Market Value.  If the repurchase option gives the Company
the right to repurchase the shares upon termination of employment at not less than the Fair Market Value of the shares to be
purchased on the date of termination of Continuous Service, then (i) the right to repurchase shall be exercised for cash or
cancellation of purchase money indebtedness for the shares within ninety (90) days of termination of Continuous Service (or in the
case of shares issued upon exercise of Stock Awards after such date of termination, within ninety (90) days after the date of the
exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the
requirements of Section 1202(c)(3) of the Code regarding "qualified small business stock") and (ii) the right
terminates when the shares become publicly traded.

               
(ii)        Original Purchase Price.  If the repurchase option gives the Company
the right to repurchase the shares upon termination of Continuous Service at the original purchase price, then (i) the right to
repurchase at the original purchase price shall lapse at the rate of at least twenty percent (20%) of the shares per year over five
(5) years from the date the Stock Award is granted (without respect to the date the Stock Award was exercised or became
exercisable) and (ii) the right to 

13

 repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the
shares within  ninety (90) days of termination of Continuous Service (or in the case of shares issued upon exercise of Options
after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to
by the Company and the Participant (for example, for purposes of satisfying the requirements of Section 1202(c)(3) of the Code
regarding "qualified small business stock").

       
(h)        Cancellation and Re-Grant of Options.

               
(i)         Authority to Reprice.  Without the approval of the shareholders
of the Company, the Board shall not have the authority to effect, at any time and from time to time, (i) the repricing of any
outstanding Options under the Plan and/or (ii) with the consent of any adversely affected holders of Options, the cancellation
of any outstanding Options under the Plan and the grant in substitution therefor of new Options under the Plan covering the same or
different numbers of shares of Common Stock.

               
(ii)        Effect of Repricing under Section 162(m) of the Code.  Shares subject
to an Option which is amended or canceled in order to set a lower exercise price per share shall continue to be counted against the
maximum award of Options permitted to be granted pursuant to subsection 5(c).  The repricing of an Option under this
subsection 10(i) resulting in a reduction of the exercise price shall be deemed to be a cancellation of the original Option and the
grant of a substitute Option; in the event of such repricing, both the original and the substituted Options shall be counted
against the maximum awards of Options permitted to be granted pursuant to subsection 5(c).  The provisions of this subsection
10(i)(b) shall be applicable only to the extent required by Section 162(m) of the Code.

       
11.       Adjustments upon Changes in Stock.

       
(a)        Capitalization Adjustments.  If any change is made in the stock
subject to the Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not
involving the receipt of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number
of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any person
pursuant to subsection 5(c), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of
securities and price per share of stock subject to such outstanding Stock Awards.  The Board, the determination of which shall
be final, binding and conclusive, shall make such adjustments.  (The conversion of any convertible securities of the Company
shall not be treated as a transaction "without receipt of consideration" by the Company.)

14

       
(b)        Change in Control--Dissolution or Liquidation.  In the event of a
dissolution or liquidation of the Company, then such Stock Awards shall be terminated if not exercised (if applicable) prior to
such event.

       
(c)        Change in Control--Asset Sale, Merger, Consolidation or Reverse
Merger. 

               
(i)          In the event of (1) a sale of substantially all of the assets of the
Company, (2) a merger or consolidation in which the Company is not the surviving corporation or (3) a reverse merger in which the
Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities, cash or otherwise, then any surviving corporation or
acquiring corporation shall assume any Stock Awards outstanding under the Plan or shall substitute similar stock awards (including
an award to acquire the same consideration paid to the shareholders in the transaction described in this subsection 11(c) for those
outstanding under the Plan). 

               
(ii)         For purposes of subsection 11(c) an Award shall be deemed assumed if,
following the change in control, the Award confers the right to purchase in accordance with its terms and conditions, for each
share of Common Stock subject to the Award immediately prior to the change in control, the consideration (whether stock, cash or
other securities or property) to which a holder of a share of Common Stock on the effective date of the change in control was
entitled.

               
(iii)        In the event any surviving corporation or acquiring corporation refuses to
assume such Stock Awards or to substitute similar stock awards for those outstanding under the Plan, then with respect to Stock
Awards held by Participants whose Continuous Service has not terminated, the vesting of 50% of such Stock Awards (and, if
applicable, the time during which such Stock Awards may be exercised) shall be accelerated in full, and the Stock Awards shall
terminate if not exercised (if applicable) at or prior to such event.  With respect to any other Stock Awards outstanding
under the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to such event.

       
12.       Amendment of the Plan and Stock Awards.

       
(a)        Amendment of Plan.  The Board at any time, and from time to time, may
amend the Plan.  However, except as provided in Section 11 relating to adjustments upon changes in stock, no amendment shall
be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy the
requirements of Section 422 of the Code, Rule 16b-3 or any Nasdaq or securities exchange listing requirements.

       
(b)        Shareholder Approval.  The Board may, in its sole discretion, submit
any other amendment to the Plan for shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy
the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of compensation paid to certain executive officers.

15

       
(c)        Contemplated Amendments.  It is expressly contemplated that the Board
may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees with the maximum benefits
provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock
Options and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith.

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

       
(e)        Amendment of Stock Awards.  The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be
impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in
writing.

       
13.       Termination or Suspension of the Plan.

       
(a)        Plan Term.  The Board may suspend or terminate the Plan at any
time.  Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the Plan
is adopted by the Board or approved by the shareholders of the Company, whichever is earlier.  No Stock Awards may be granted
under the Plan while the Plan is suspended or after it is terminated.

       
(b)        No Impairment of Rights.  Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the
Participant.

       
14.       Effective Date of Plan.

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

       
15.       Choice of Law.

       
All questions concerning the construction, validity and interpretation of this Plan shall be governed by the law of the State of
Washington, without regard to such states conflict of laws rules.

 

 

16

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