Document:

Unassociated Document

    OVDAT,
      INC.

     

    2000
      STOCK INCENTIVE PLAN

     

    SECTION
      1

     

    Purpose

     

    The
      purpose of the 2000 Stock Incentive Plan (the “Plan”) is to secure for Ovdat
      Inc., a Delaware corporation (the “Company”), and subsidiaries, if any, of the
      Company (collectively the “Related Corporations”) the benefits arising from
      capital stock ownership by those Associates (herein “employees”), directors,
      officers and consultants of the Company and any Related Corporations who will
      be
      responsible for the Company’s future growth and continued success.

     

    The
      Plan
      will provide a means whereby (a) employees of the Company and any Related
      Corporations may purchase stock in the Company pursuant to options that qualify
      as “incentive stock options” (“Incentive Stock Options”) under Section 422 of
      the Internal Revenue Code of 1986, as amended (the “Code”), (b) directors,
      employees and consultants of the Company and any Related Corporations may
      purchase stock in the Company pursuant to options granted hereunder that do
      not
      qualify as Incentive Stock Options (“Non-Qualified Option” or “Non-Qualified
      Options”); (c) directors, employees and consultants of the Company and any
      Related Corporations may be awarded stock in the Company (“Awards”); (d)
      directors, employees and consultants of the Company and any Related Corporations
      may receive stock appreciation rights (“SARs”), and (e) directors, employees and
      consultants of the Company and any Related Corporations may make direct
      purchases of stock in the Company (“Purchases”). Both Incentive Stock Options
      and Non-Qualified Options are referred to hereafter individually as an “Option”
and collectively as “Options.” As used herein, the term subsidiary means
“subsidiary corporation” as such term is defined in Section 424 of the Code.
      Options, Awards, SARs and Purchases are referred to hereafter individually
      as a
“Plan Benefit” and collectively as “Plan Benefits.” Directors, employees and
      consultants of the Company and any Related Corporations are referred to herein
      as “Participants.”

     

    SECTION
      2

     

    Administration

     

    2.1 Board
      of Directors and the Committee. The
      Plan
      will be administered by the Board of Directors of the Company whose construction
      and interpretation of the terms and provisions hereof shall be final and
      conclusive. Any director to whom a Plan Benefit is awarded shall be ineligible
      to vote upon his or her Plan Benefit, but Plan Benefits may be granted any
      such
      director by a vote of the remainder of the directors, except as limited below.
      The Board of Directors may in its sole discretion grant Options, issue shares
      upon exercise of such Options, grant Awards, grant SARs and approve Purchases,
      all as provided in the Plan. The Board of Directors shall have authority,
      subject to the express provisions of the Plan, to construe the Plan and its
      related agreements, to prescribe, amend and rescind rules and regulations
      relating to the Plan, to determine the terms and provisions of the respective
      Option, Award, SAR and Purchase agreements, which need not be identical, and
      to
      make all other determinations in the judgment of the Board of Directors
      necessary or desirable for the administration of the Plan. The Board of
      Directors may correct any defect or supply any omission or reconcile any
      inconsistency in the Plan or in any related agreement in the manner and to
      the
      extent it shall deem expedient to carry the Plan into effect and it shall be
      the
      sole and final judge of such expediency. No director shall be liable for any
      action or determination made in good faith. The Board of Directors may delegate
      any or all of its powers under the Plan to a Compensation Committee or other
      Committee (the “Committee”) appointed by the Board of Directors consisting of at
      least one member of the Board of Directors. If the Company has a class of stock
      registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
      amended (the “Exchange Act”), then members of the Committee shall at all times
      be: (i) “outside directors” as such term is defined in Treas. Reg. §
1.162-27(e)(3) (or any successor regulation); and (ii) “non-employee directors”
within the meaning of Rule 16b-3 (or any successor rule) under the Exchange
      Act,
      as such terms are interpreted from time to time. If the Committee is so
      appointed, all references to the Board of Directors herein shall mean and relate
      to such Committee, unless the context otherwise requires.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.2 Compliance
      with Section 162(m) of the Code. Section
      162(m) of the Code, added by the Omnibus Budget Reconciliation Act of 1993,
      generally limits the tax deductibility to publicly held companies of
      compensation in excess of $1,000,000 paid to certain “covered employees”
(“Covered Employees”). If the Company is subject to Section 162(m) of the Code,
      it is the Company’s intention to preserve the deductibility of such compensation
      to the extent it is reasonably practicable and to the extent it is consistent
      with the Company’s compensation objectives. For purposes of this Plan, Covered
      Employees of the Company shall be those employees of the Company described
      in
      Section 162(m)(3) of the Code. 

     

    SECTION
      3

     

    Eligibility

     

    1.1 Incentive
      Stock Options. Participants
      who are employees shall be eligible to receive Incentive Stock Options pursuant
      to the Plan; provided that no person shall be granted any Incentive Stock Option
      under the Plan who, at the time such Option is granted, owns, directly or
      indirectly, Common Stock of the Company possessing more than 10% of the total
      combined voting power of all classes of stock of the Company or of its Related
      Corporations, unless the requirements of Section 6.6(b) hereof are satisfied.
      In
      determining whether this 10% threshold has been reached, the stock attribution
      rules of Section 424(d) of the Code shall apply. Directors who are not regular
      employees are not eligible to receive Incentive Stock Options.

     

    3.1 Non-Qualified
      Options, Awards, SARs and Purchases. Non-Qualified
      Options, Awards, SARs and authorizations to make Purchases may be granted to
      any
      Participant.

     

    3.2 Generally.
      The
      Board
      of Directors may take into consideration a Participant’s individual
      circumstances in determining whether to grant an Incentive Stock Option, a
      Non-Qualified Option, an Award or an SAR or to approve a Purchase. Granting
      of
      any Option, Award or SAR or approval of any Purchase for any individual shall
      neither entitle that individual to, nor disqualify that individual from,
      participation in any other grant of Plan Benefits.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      4

     

    Stock
      Subject to Plan

     

    Subject
      to adjustment as provided in Sections 10 and 11 hereof, the stock to be offered
      under the Plan shall consist of shares of the Company’s Common Stock with par
      value $0.01 per share, and the maximum number of shares of stock that will
      be
      reserved for issuance, and in respect of which Plan Benefits may be granted
      pursuant to the provisions of the Plan, shall not exceed in the aggregate
2,307
      shares.
      Such shares may be authorized and unissued shares or may be treasury shares.
      If
      an Option or SAR granted hereunder shall expire or terminate for any reason
      without having been exercised in full, or if the Company shall reacquire any
      unvested shares issued pursuant to Awards or Purchases, the unpurchased shares
      subject thereto and any unvested shares so reacquired shall again be available
      for subsequent grants of Plan Benefits under the Plan. Stock issued pursuant
      to
      the Plan may be subject to such restrictions on transfer, repurchase rights
      or
      other restrictions as shall be determined by the Board of
      Directors.

     

    SECTION
      5

     

    Granting
      of Options, Awards and SARs and Approvals of Purchases

     

    Options,
      Awards and SARs may be granted and Purchases may be approved under the Plan
      at
      any time after July 15, 2000 and prior to July 15, 2010. The date of grant
      of an
      Option, Award or SAR or approval of a Purchase under the Plan will be the date
      specified by the Board of Directors at the time the Board of Directors grants
      such Option, Award or SAR or approves such Purchase; provided, however, that
      such date shall not be prior to the date on which the Board of Directors takes
      such action. The Board of Directors shall have the right, with the consent
      of a
      Participant, to convert an Incentive Stock Option granted under the Plan to
      a
      Non-Qualified Option pursuant to Section 6.7. Plan Benefits may be granted
      alone
      or in addition to other grants under the Plan.

     

    SECTION
      6

     

    Special
      Provisions Applicable to Options and SARs

     

    6.1 Purchase
      Price and Shares Subject to Options and SARs.

     

    (a) The
      purchase price per share of stock deliverable upon the exercise of an Option
      shall be determined by the Board of Directors, provided,
      however,
      that
      (i) in the case of an Incentive Stock Option, the exercise price shall not
      be
      less than 100% of the fair market value of such stock on the day the option
      is
      granted (except as modified in Section 6.6(b) hereof), and (ii) in the case
      of a
      Non-Qualified Option, the exercise price shall not be less than 75% of the
      fair
      market value of such stock on the day such Option is granted.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Options
      granted under the Plan may provide for the payment of the exercise price by
      delivery of (i) cash or a check payable to the order of the Company in an amount
      equal to the exercise price of such Options, (ii) shares of Common Stock of
      the
      Company owned by the Participant having a fair market value equal in amount
      to
      the exercise price of the Options being exercised, or (iii) any combination
      of
      (i) and (ii). The fair market value of any shares of the Company’s Common Stock
      that may be delivered upon exercise of an Option shall be determined by the
      Board of Directors. The Board of Directors may also permit Participants, either
      on a selective or aggregate basis, to simultaneously exercise Options and sell
      the shares of Common Stock thereby acquired, pursuant to a brokerage or similar
      arrangement, approved in advance by the Board of Directors, and to use the
      proceeds from such sale as payment of the purchase price of such
      shares.

     

    (c) If,
      at
      the time an Option is granted under the Plan, the Company’s Common Stock is
      publicly traded, “fair market value” shall be determined as of the last business
      day for which the prices or quotes discussed in this sentence are available
      prior to the date such Option is granted (the “Determination Date”) and shall
      mean (i) the average (on the Determination Date) of the high and low prices
      of
      the Common Stock on the principal national securities exchange on which the
      Common Stock is traded, if such Common Stock is then traded on a national
      securities exchange; (ii) the last reported sale price (on the Determination
      Date) of the Common Stock on the Nasdaq Stock Market if the Common Stock is
      not
      then traded on a national securities exchange; or (iii) the closing bid price
      (or average of bid prices) last quoted (on the Determination Date) by an
      established quotation service for over-the-counter securities, if the Common
      Stock is not reported on the Nasdaq Stock Market. However, if the Common Stock
      is not publicly traded at the time an Option is granted under the Plan, “fair
      market value” shall be deemed to be the fair value of the Common Stock as
      determined by the Board of Directors after taking into consideration all factors
      that it deems appropriate, including, without limitation, recent sale and offer
      prices of the Common Stock in private transactions negotiated at arm’s
      length.

     

    (d) If
      the
      Company is subject to Section 162(m) of the Code, the maximum number of shares
      with respect to which Options or SARs may be granted to any employee, including
      any cancellations or repricings that may occur, shall be limited to 2,307 shares
      in any calendar year. 

     

    6.2 Duration
      of Options and SARs. Subject
      to Section 6.6(b) hereof, each Option and SAR and all rights thereunder shall
      be
      expressed to expire on such date as the Board of Directors may determine, but
      in
      no event later than ten (10) years from the day on which the Option or SAR
      is
      granted and shall be subject to earlier termination as provided
      herein.

     

    6.3 Exercise
      of Options and SARs.

     

    (a) Subject
      to Section 6.6(b) hereof, each Option and SAR granted under the Plan shall
      be
      exercisable at such time or times and during such period as shall be set forth
      in the instrument evidencing such Option or SAR. To the extent that an Option
      or
      SAR is not exercised by a Participant when it becomes initially exercisable,
      it
      shall not expire but shall be carried forward and shall be exercisable, on
      a
      cumulative basis, until the expiration of the exercise period. No partial
      exercise may be for less than five (5) full shares of Common Stock (or its
      equivalent).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) The
      Board
      of Directors shall have the right to accelerate the date of exercise of any
      installments of any Option or SAR; provided that the Board of Directors shall
      not accelerate the exercise date of any installment of any Option granted to
      a
      Participant as an Incentive Stock Option (and not previously converted into
      a
      Non-Qualified Option pursuant to Section 6.7) if such acceleration would violate
      the annual vesting limitation contained in Section 422(d)(1) of the Code, which
      provides generally that the aggregate fair market value (determined at the
      time
      the Option is granted) of the stock with respect to which Incentive Stock
      Options granted to any Participant are exercisable for the first time by such
      Participant during any calendar year (under all plans of the Company and any
      Related Corporations) shall not exceed $100,000.

     

    6.4 Nontransferability
      of Options and SARs.

     

    No
      Option
      or SAR granted under the Plan shall be assignable or transferable by the
      Participant, either voluntarily or by operation of law, except by will or the
      laws of descent and distribution or unless, with respect to Non-Qualified
      Options and SARs, the Participant’s non-qualified stock option agreement
      granting such options (the “Non-Qualified Stock Option Agreement”) or the
      Participant’s SAR agreement granting such SARs (the “SAR Agreement”) provides
      otherwise. Unless otherwise provided by the Non-Qualified Stock Option Agreement
      or the SAR Agreement, during the life of the Participant, the Option or SAR
      shall be exercisable only by him or her. If any Participant should attempt
      to
      dispose of or encumber his or her Options or SARs, other than in accordance
      with
      the applicable terms of a Non-Qualified Stock Option Agreement or SAR Agreement,
      his or her interest in such Options or SARs shall terminate.

     

    6.5 Effect
      of Termination of Employment or Death.

     

    (a) If
      a
      Participant ceases to be employed by the Company or a Related Corporation for
      any reason, including retirement but other than death, any Option or SAR granted
      to such Participant under the Plan shall immediately terminate; provided,
      however,
      that
      any portion of such Option or SAR that was otherwise exercisable on the date
      of
      termination of the Participant’s employment may be exercised, unless a different
      period, approved by the Committee, is provided for in the applicable agreement,
      (i) within the twelve (12) month period following the date on which the
      Participant ceased to be so employed, but in no event after the expiration
      of
      the exercise period, if such Participant’s employment was terminated due to
      death or to a “disability” within Section 22(e)(3) of the Code, or (ii) within
      the two (2) month period following the date on which the Participant ceased
      to
      be so employed, but in no event after the expiration of the exercise period,
      if
      such Participant’s employment was terminated for any other reason (other than
      death or disability). Any such exercise may be made only to the extent of the
      number of shares subject to the Option or SAR that were purchasable on the
      date
      of such termination of employment. If the Participant dies during such twelve
      (12) month or three (3) month period, as applicable, the Option or SAR shall
      be
      exercisable by the Participant’s personal representatives, heirs or legatees to
      the same extent and during the same period that the Participant could have
      exercised the Option or SAR on the date of his or her death.

     

    (b) If
      the
      Participant dies while an employee of the Company or any Related Corporation,
      any Option or SAR granted to such Participant under the Plan shall be
      exercisable by the Participant’s personal representatives, heirs or legatees,
      for the purchase of that number of shares and to the same extent that the
      Participant could have exercised the Option or SAR on the date of his or her
      death. The Option or SAR or any unexercised portion thereof shall terminate
      unless so exercised prior to the earlier of the expiration of twelve (12) months
      from the date of such death or the expiration of the exercise
      period.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) In
      the
      case of a Non-Qualified Option or SAR, the Board of Directors may vary the
      terms
      set forth in Sections 6.5(a) and 6.5(b) by providing for different provisions
      in
      the applicable Non-Qualified Stock Option Agreement or SAR
      Agreement.

     

    6.6 Designation
      of Incentive Stock Options; Limitations.

     

    Options
      granted under the Plan that are intended to be Incentive Stock Options
      qualifying under Section 422 of the Code shall be designated as Incentive Stock
      Options and shall be subject to the following additional terms and
      conditions:

     

    (a) Dollar
      Limitation.
      The
      aggregate fair market value (determined at the time the option is granted)
      of
      the Common Stock for which Incentive Stock Options are exercisable for the
      first
      time during any calendar year by any person under the Plan (and all other
      incentive stock option plans of the Company and any Related Corporations) shall
      not exceed $100,000. In the event that Section 422(d)(1) of the Code is amended
      to alter the limitation set forth therein so that following such amendment
      such
      limitation shall differ from the limitation set forth in this Section 6.6(a),
      the limitation of this Section 6.6(a) shall be automatically adjusted
      accordingly.

     

    (b) 10%
      Stockholder.
      If any
      employee to whom an Incentive Stock Option is to be granted pursuant to the
      provisions of the Plan is on the date of grant the owner of stock possessing
      more than 10% of the total combined voting power of all classes of stock of
      the
      Company or any Related Corporations, then the following special provisions
      shall
      be applicable to the Incentive Stock Option granted to such
      individual:

     

    (i) The
      option price per share of the Common Stock subject to such Incentive Stock
      Option shall not be less than 110% of the fair market value of one share of
      Common Stock on the date of grant; and

     

    (ii) The
      option exercise period shall not exceed five (5) years from the date of
      grant.

     

    In
      determining whether the 10% threshold has been reached, the stock attribution
      rules of Section 424(d) of the Code shall apply.

     

    (c) Except
      as
      modified by the preceding provisions of this Section 6.6, all of the provisions
      of the Plan shall be applicable to Incentive Stock Options granted hereunder;
      provided that, in the case of an Incentive Stock Option, notwithstanding the
      provisions of the applicable agreement, the periods to exercise following a
      termination of employment for any reason shall not exceed the periods prescribed
      by Section 422 of the Code.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
            	6.7	
              Conversion
                of Incentive Stock Options into Non-Qualified Options; Termination
                of
                Incentive Stock Options.

            

    

     

    The
      Board
      of Directors, at the written request of any Participant, may in its discretion
      take such actions as may be necessary to convert such Participant’s Incentive
      Stock Options (or any installments or portions of installments thereof) that
      have not been exercised on the date of conversion into Non-Qualified Options
      at
      any time prior to the expiration of such Incentive Stock Options, regardless
      of
      whether the Participant is an employee of the Company or a Related Corporation
      at the time of such conversion. Such actions may include, but not be limited
      to,
      extending the exercise period or reducing the exercise price of the appropriate
      installments of such Options. At the time of such conversion, the Board of
      Directors (with the consent of the Participant) may impose such conditions
      on
      the exercise of the resulting Non-Qualified Options as the Board of Directors
      in
      its discretion may determine, provided that such conditions shall not be
      inconsistent with the Plan. Nothing in the Plan shall be deemed to give any
      Participant the right to have such Participant’s Incentive Stock Options
      converted into Non-Qualified Options, and no such conversion shall occur until
      and unless the Board of Directors takes appropriate action. The Board of
      Directors, with the consent of the Participant, may also terminate any portion
      of any Incentive Stock Option that has not been exercised at the time of such
      termination.

     

    6.8 Stock
      Appreciation Rights.

     

    An
      SAR is
      the right to receive, without payment, an amount equal to the excess, if any,
      of
      the fair market value of a share of Common Stock on the date of exercise over
      the grant price, which amount will be multiplied by the number of shares with
      respect to which the SARs shall have been exercised. The grant of SARs under
      the
      Plan shall be subject to the following terms and conditions and shall contain
      such additional terms and conditions, not inconsistent with the express terms
      of
      the Plan, as the Board of Directors shall deem desirable:

     

    (a) Grant.
      SARs
      may be granted in tandem with, in addition to or completely independent of
      any
      Plan Benefit.

     

    (b) Grant
      Price.
      The
      grant price of an SAR may be the fair market value of a share of Common Stock
      on
      the date of grant or such other price as the Board of Directors may
      determine.

     

    (c) Exercise.
      An SAR
      may be exercised by a Participant in accordance with procedures established
      by
      the Board of Directors or as otherwise provided in any agreement evidencing
      any
      SARs. The Board of Directors may provide that an SAR shall be automatically
      exercised on one or more specified dates.

     

    (d) Form
      of Payment.
      Payment
      upon exercise of an SAR may be made in cash, in shares of Common Stock or any
      combination thereof, as the Board of Directors shall determine.

     

    (e) Fair
      Market Value.
      Fair
      market value shall be determined in accordance with Section 6.1(c) with the
      “Determination Date” being determined by reference to the date of grant or the
      date of exercise of an SAR, as applicable.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.9 Rights
      as a Stockholder.

     

    The
      holder of an Option or SAR shall have no rights as a stockholder with respect
      to
      any shares covered by the Option or SAR until the date of issue of a stock
      certificate to him or her for such shares. Except as otherwise expressly
      provided in the Plan, 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.

     

    
      
        6.10
          Special
          Provisions Applicable to Non-Qualified Options and SARs Granted to Covered
          Employees.

      

    

     

    If
      the
      Company is subject to Section 162(m) of the Code, in order for the full value
      of
      Non-Qualified Options or SARs granted to Covered Employees to be deductible
      by
      the Company for federal income tax purposes, the Company may intend for such
      Non-Qualified Options or SARs to be treated as “qualified performance-based
      compensation” as described in Treas. Reg. §1.162-27(e) (or any successor
      regulation). In such case, Non-Qualified Options or SARs granted to Covered
      Employees shall be subject to the following additional
      requirements:

     

    (a) such
      options and rights shall be granted only by the Committee; and

     

    (b) the
      exercise price of such Options and the grant price of such SARs granted shall
      in
      no event be less than the fair market value of the Common Stock as of the date
      of grant of such Options or SARs.

     

    SECTION
      7

     

    Special
      Provisions Applicable to Awards

     

    7.1 Grants
      of Awards.

     

    The
      Board
      of Directors may grant a Participant an Award subject to such terms and
      conditions as the Board of Directors deems appropriate, including, without
      limitation, restrictions on the pledging, sale, assignment, transfer or other
      disposition of such shares and the requirement that the Participant forfeit
      all
      or a portion of such shares back to the Company upon termination of
      employment.

     

    7.2 Conditions.

     

    Approvals
      of Awards may be subject to the following conditions:

     

    (a) Each
      Participant receiving an Award shall enter into an agreement (a “Stock
      Restriction Agreement”) with the Company, if required by the Board of Directors,
      in a form specified by the Board of Directors agreeing to such terms and
      conditions of the Award as the Board of Directors deems
      appropriate.

     

    (b) Shares
      issued and transferred to a Participant pursuant to an Award may, if required
      by
      the Board of Directors, be deposited with the Treasurer or other officer of
      the
      Company designated by the Board of Directors to be held until the lapse of
      the
      restrictions upon such shares, and each Participant shall execute and deliver
      to
      the Company stock powers enabling the Company to exercise its rights
      hereunder.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Certificates
      for shares issued pursuant to an Award shall, if the Company shall deem it
      advisable, bear a legend to the effect that they are issued subject to specified
      restrictions.

     

    (d) Certificates
      representing the shares issued pursuant to an Award shall be registered in
      the
      name of the Participant and shall be owned by such Participant. Such Participant
      shall be the holder of record of such shares for all purposes, including voting
      and receipt of dividends paid with respect to such shares.

     

    7.3 Nontransferability.

     

    Shares
      issued pursuant to an Award may not be sold, assigned, transferred, alienated,
      commuted, anticipated, or otherwise disposed of (except, subject to the
      provisions of such Participant’s Stock Restriction Agreement, by will or the
      laws of descent and distribution), or pledged or hypothecated as collateral
      for
      a loan or as security for the performance of any obligation, or be otherwise
      encumbered, and are not subject to attachment, garnishment, execution or other
      legal or equitable process, prior to the lapse of restrictions on such shares,
      and any attempt at action in contravention of this Section shall be null and
      void. If any Participant should attempt to dispose of or encumber his or her
      shares issued pursuant to an Award prior to the lapse of the restrictions
      imposed on such shares, his or her interest in such shares shall
      terminate.

     

    7.4 Effect
      of Termination of Employment or Death on Awards.

     

    Unless
      otherwise provided in the applicable Stock Restriction Agreement, if, prior
      to
      the lapse of restrictions applicable to Awards, the Participant ceases to be
      an
      employee of the Company or the Related Companies for any reason, Awards to
      such
      Participant, as to which restrictions have not lapsed, shall be forfeited to
      the
      Company, effective on the date of the Participant’s termination of employment.
      The Board of Directors shall have the sole power to decide in each case to
      what
      extent leaves of absence shall be deemed a termination of
      employment.

     

    SECTION
      8

     

    Special
      Provisions Applicable to Purchases

     

    All
      approvals of Purchases that provide that the Company has a right to repurchase
      the shares subject to such Purchase (the “Restricted Shares”) shall be subject
      to the terms and conditions set forth in the related agreement (the “Stock
      Purchase Restriction Agreement”) approved by the Board of Directors, and shall
      be subject to the other terms and conditions of this Section 8.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.1 Conditions.

     

    All
      approvals of Purchases shall be subject to the following
      conditions:

     

    (a) Prior
      to
      the issuance and transfer of Restricted Shares, the Participant shall pay to
      the
      Company the purchase price (the “Purchase Price”) of the Restricted Shares in
      cash or in such other manner as shall be as approved by the Board of
      Directors.

     

    (b) Restricted
      Shares issued and transferred to a Participant may, if required by the Board
      of
      Directors, be deposited with the Treasurer or other officer of the Company
      designated by the Board of Directors to be held until the lapse of the
      restrictions upon such Restricted Shares, and each Participant shall execute
      and
      deliver to the Company stock powers enabling the Company to exercise its rights
      hereunder.

     

    (c) Certificates
      for Restricted Shares shall, if the Company shall deem it advisable, bear a
      legend to the effect that they are issued subject to specified
      restrictions.

     

    (d) Certificates
      representing the Restricted Shares shall be registered in the name of the
      Participant and shall be owned by such Participant. Such Participant shall
      be
      the holder of record of such Restricted Shares for all purposes, including
      voting and receipt of dividends paid with respect to such Restricted
      Shares.

     

    8.2 Nontransferability.

     

    A
      Participant’s Restricted Shares may not be sold, assigned, transferred,
      alienated, commuted, anticipated, or otherwise disposed of (except, subject
      to
      the provisions of such Participant’s Stock Purchase Restriction Agreement by
      will or the laws of descent and distribution), or pledged or hypothecated as
      collateral for a loan or as security for the performance of any obligation,
      or
      be otherwise encumbered, and are not subject to attachment, garnishment,
      execution or other legal or equitable process, prior to the lapse of
      restrictions on such Restricted Shares, and any attempt at action in
      contravention of this Section shall be null and void. If any Participant should
      attempt to dispose of or encumber his or her Restricted Shares prior to the
      lapse of the restrictions imposed on such Restricted Shares, his or her interest
      in the Restricted Shares awarded to him or her shall terminate.

     

    SECTION
      9

     

    Requirements
      of Law

     

    9.1 Violations
      of Law.

     

    No
      shares
      shall be issued and delivered upon exercise of any Option or the making of
      any
      Award or Purchase or the payment of any SAR unless and until, in the opinion
      of
      counsel for the Company, any applicable registration requirements of the
      Securities Act of 1933, as amended, any applicable listing requirements of
      any
      national securities exchange on which stock of the same class is then listed,
      and any other requirements of law or of any regulatory bodies having
      jurisdiction over such issuance and delivery, shall have been fully complied
      with in respect to such issuance and delivery. Each Participant may, by
      accepting Plan Benefits, be required to represent and agree in writing, for
      himself or herself and for his or her transferees by will or the laws of descent
      and distribution, that the stock acquired by him, her or them is being acquired
      for investment. The requirement for any such representation may be waived at
      any
      time by the Board of Directors.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.2 Compliance
      with Rule 16b-3.

     

    If
      the
      Company has a class of stock registered pursuant to Section 12 of the Exchange
      Act, the intent of this Plan is to qualify for the exemption provided by Rule
      16b-3 under the Exchange Act. To the extent any provision of the Plan does
      not
      comply with the requirements of Rule 16b-3, it shall be deemed inoperative
      to
      the extent permitted by law and deemed advisable by the Board of Directors
      and
      shall not affect the validity of the Plan. In the event Rule 16b-3 is revised
      or
      replaced, the Board of Directors may exercise discretion to modify this Plan
      in
      any respect necessary to satisfy the requirements of the revised exemption
      or
      its replacement.

     

    SECTION
      10

     

    Recapitalization

     

    In
      the
      event that dividends are payable in Common Stock of the Company or in the event
      there are splits, sub-divisions or combinations of shares of Common Stock of
      the
      Company, the number of shares available under the Plan shall be increased or
      decreased proportionately, as the case may be, and the number of shares
      deliverable upon the exercise thereafter of any Option previously granted shall
      be increased or decreased proportionately, as the case may be, without change
      in
      the aggregate purchase price, and the number of shares to which granted SARs
      relate shall be increased or decreased proportionately, as the case may be,
      and
      the grant price of such SARs shall be decreased or increased proportionately,
      as
      the case may be.

     

    SECTION
      11

     

    Reorganization

     

    In
      case
      the Company is merged or consolidated with another corporation and the Company
      is not the surviving corporation, or, in case the property or stock of the
      Company is acquired by any other corporation, or in case of a reorganization
      or
      liquidation of the Company, the Board of Directors of the Company, or the board
      of directors of any corporation assuming the obligations of the Company
      hereunder, shall, as to outstanding Plan Benefits, either (i) make appropriate
      provision for the protection of any such outstanding Plan Benefits by the
      substitution on an equitable basis of appropriate stock of the Company or of
      the
      merged, consolidated or otherwise reorganized corporation that will be issuable
      in respect of the shares of Common Stock of the Company, provided only that
      the
      excess of the aggregate fair market value of the shares subject to the Plan
      Benefits immediately after such substitution over the purchase price thereof
      is
      not more than the excess of the aggregate fair market value of the shares
      subject to such Plan Benefits immediately before such substitution over the
      purchase price thereof, (ii) upon written notice to the Participants, provide
      that all unexercised Plan Benefits must be exercised within a specified number
      of days of the date of such notice or such Plan Benefits will be terminated,
      or
      (iii) upon written notice to the Participants, provide that the Company or
      the
      merged, consolidated or otherwise reorganized corporation shall have the right,
      upon the effective date of any such merger, consolidation, sale of assets or
      reorganization, to purchase all Plan Benefits held by each Participant and
      unexercised as of that date at an amount equal to the aggregate fair market
      value on such date of the shares subject to the Plan Benefits held by such
      Participant over the aggregate purchase price therefor, such amount to be paid
      in cash or, if stock of the merged, consolidated or otherwise reorganized
      corporation is issuable in respect of the shares of the Common Stock of the
      Company, then, in the discretion of the Board of Directors, in stock of such
      merged, consolidated or otherwise reorganized corporation equal in fair market
      value to the aforesaid amount. In any such case the Board of Directors shall,
      in
      good faith, determine fair market value and may, in its discretion, advance
      the
      lapse of any waiting or installment periods and exercise dates.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SECTION
      12

     

    No
      Special Employment Rights

     

    Nothing
      contained in the Plan or in any Plan Benefit documentation shall confer upon
      any
      Participant receiving a grant of any Plan Benefit any right with respect to
      the
      continuation of his or her employment by the Company (or any Related
      Corporation) or interfere in any way with the right of the Company (or any
      Related Corporation), subject to the terms of any separate employment agreement
      to the contrary, at any time to terminate such employment or to increase or
      decrease the compensation of the Participant from the rate in existence at
      the
      time of the grant of any Plan Benefit. Whether an authorized leave of absence,
      or absence in military or government service, shall constitute termination
      of
      employment shall be determined by the Board of Directors.

     

    SECTION
      13

     

    Amendment
      of the Plan

     

    The
      Board
      of Directors may at any time and from time to time modify or amend the Plan
      in
      any respect. The termination or any modification or amendment of the Plan shall
      not, without the consent of a recipient of any Plan Benefit, affect his or
      her
      rights under any Plan Benefit previously granted. With the consent of the
      affected Participant, the Board of Directors may amend outstanding agreements
      relating to any Plan Benefit, in a manner not inconsistent with the Plan. The
      Board of Directors hereby reserves the right to amend or modify the terms and
      provisions of the Plan and of any outstanding Options to the extent necessary
      to
      qualify any or all Options under the Plan for such favorable federal income
      tax
      treatment (including deferral of taxation upon exercise) as may be afforded
      incentive stock options under Section 422 of the Code, provided, however, that
      the consent of an optionee is required if such amendment or modification would
      cause unfavorable income tax treatment for such optionee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      14

     

    Withholding

     

    The
      Company’s obligation to deliver shares of stock upon the exercise of any Option
      or the granting of an Award or to make payment upon any exercise of any SAR
      or
      making of a Purchase shall be subject to the satisfaction by the Participant
      of
      all applicable federal, state and local income and employment tax withholding
      requirements. Subject in particular cases to the approval of the Board of
      Directors, the Company may accept shares of stock of equivalent fair market
      value (as determined in accordance with Section 6.1(c)) in payment of any such
      withholding tax obligations if the Participant selects to make payment in such
      manner.

     

    SECTION
      15

     

    Effective
      Date and Duration of the Plan

     

    15.1 Effective
      Date.

     

    The
      Plan
      shall become effective when adopted by the Board of Directors, but no Incentive
      Stock Option granted under the Plan (or any other Plan Benefits granted to
      Covered Employees, if the Company is subject to Section 162(m) of the Code)
      shall become exercisable unless and until the Plan shall have been approved
      by
      the Company’s stockholders. If such stockholder approval is not obtained within
      twelve (12) months after the date of the Board’s adoption of the Plan, then any
      Incentive Stock Options previously granted under the Plan shall terminate and
      no
      further Incentive Stock Options shall be granted. Subject to such limitation,
      Options may be granted under the Plan at any time after the effective date
      and
      before the date fixed herein for termination of the Plan.

     

    15.2 Duration.

     

    Unless
      sooner terminated in accordance with Section 11 hereof, the Plan shall terminate
      upon the earlier of (i) the tenth anniversary of the date of its adoption by
      the
      Board of Directors or (ii) the date on which all shares available for issuance
      under the Plan shall have been issued pursuant to any Awards or Purchases or
      the
      exercise or cancellation of Options and SARs granted hereunder. If the date
      of
      termination is determined under (i) above, then Plan Benefits outstanding on
      such date shall continue to have force and effect in accordance with the
      provisions of the instruments evidencing such Plan Benefits.

     

    SECTION
      16

     

    Governing
      Law

     

    The
      Plan
      and all actions taken thereunder shall be governed by the laws of the State
      of
      New York.OVDAT,
      INC.

     

    THE
      2000 

    ISRAELI
      EMPLOYEE STOCK OPTION PLAN

    

    
      	1.	
              NAME

            

    

     

    This
      Plan, as amended from time to time, shall be known as the OVDAT, INC. 2000
      Israeli Employee Stock Option Plan (the“Option
      Plan”).

     

    
      	2.	
              PURPOSE
                OF THE OPTION PLAN

            

    

     

    The
      Option Plan is intended as an incentive to retain, in the employ of OVDAT,
      INC.
      (the“Company”)
      and
      its Subsidiaries, persons of training, experience, and ability, to attract
      new
      employees directors or consultants, whose services are considered valuable,
      to
      encourage the sense of proprietorship of such persons, and to stimulate the
      active interest of such persons in the development and financial success of
      the
      Company by providing them with opportunities to purchase Shares in the Company,
      pursuant to the Option Plan approved by the board of directors of the company
      (the“Board”).
      Options granted under the Option Plan may or may not contain such terms as
      will
      qualify such Options for the special tax treatment under section 102 of the
      Israeli Tax Ordinance (“Section
      102”).

    

    Options
      containing such terms as will qualify them for the special tax treatment under
      section 102 of the Israeli Tax Ordinance , shall be referred to herein as
“102
      Options”.

    

    Options
      that do not contain such terms as will qualify them for the special tax
      treatment under section 102 of the Israeli Tax Ordinance, shall be referred
      to
      herein as “3(i)
      Options”.

    

    All
      Options granted hereunder, whether together or separately, shall be hereinafter
      referred to as “Options”.

    

    The
      term
“Subsidiary”
      shall
      mean for the purposes of the Option Plan: any company (other than the Company)
      in an unbroken chain of companies beginning with the Company if, at the time
      of
      granting an option, each of the companies other than the last company in the
      unbroken chain owns shares possessing fifty percent (50%) or more of the total
      combined voting power of all classes of shares in one of the other companies
      in
      such chains.

     

    The
      term
“Parent”
      shall
      mean for the purposes of the Plan: any
      company (other than the Company) in an unbroken chain of companies ending with
      the Company if, at the time of granting an Option, each of the companies (other
      than the Company), owns stock possessing fifty percent (50%) or more of total
      combined voting power of all classes of stock in one of the other companies
      in
      such chain. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    The
      term
“Cause”
shall
      mean for the purposes of the Plan: (i) conviction of any felony involving moral
      turpitude or affecting the Company; (ii) any refusal to carry out a reasonable
      directive of the CEO which involves the business of the Company or its
      affiliates and was capable of being lawfully performed; (iii) embezzlement
      of
      funds of the Company or its affiliates; and (iv) any breach of the Optionee’s
      fiduciary duties or duties of care of the Company; including without limitation
      disclosure of confidential information of the Company; 

     

    The
      term
“Continuous
      Service”
means
      that the provision of services to the Company or its affiliates in any capacity
      of employee, director or consultant, is not interrupted or terminated.
      Continuous Service shall not be considered interrupted in the case of (i) any
      approved leave of absence, (ii) transfers among the Company, any affiliate,
      or
      any successor, in any capacity of employee, director or consultant, or (iii)
      any
      change in status as long as the individual remains in the service of the Company
      or an affiliate in any capacity of employee, director or consultant (except
      as
      otherwise provided in the Option Agreement). An approved leave of absence shall
      include sick leave, military leave, or any other authorized personal
      leave.

     

    
      	3.	
              ADMINISTRATION
                OF THE OPTION PLAN

            

    

     

    The
      Board
      or a committee appointed and maintained by the Board for such purpose
      (the“Committee”)
      shall
      have the power to administer the Option Plan. Notwithstanding the above, the
      Board shall automatically have a residual authority if no Committee shall be
      constituted or if such Committee shall cease to operate for any reason
      whatsoever. Notwithstanding the above, the Board will have the full power and
      authority to appoint in its absolute discretion the Committee and replace it
      at
      any time in the future.

     

    The
      Committee shall consist of such number of members (not less than two (2) in
      number) as may be fixed by the Board. The Committee shall select one of its
      members as its chairman (“the
      Chairman”)
      and
      shall hold its meetings at such times and places as the Chairman shall
      determine. The Committee shall keep records of its meetings and shall make
      such
      rules and regulations for the conduct of its business as it shall deem
      advisable.

     

    Any
      member of such Committee shall be eligible to receive Options under the Option
      Plan while serving on the Committee, unless otherwise specified
      herein.

     

    The
      Committee shall have full power and authority (i) to designate participants;
      (ii) to determine the terms and provisions of respective Option Agreements
      (which need not be identical) including, but not limited to, the number of
      Shares in the Company to be covered by each Option, provisions concerning the
      time or times when and the extent to which the Options may be exercised and
      the
      nature and duration of restrictions as to transferability or restrictions
      constituting substantial risk of forfeiture; (iii) to accelerate the right
      of an
      Participant to exercise, in whole or in part, any previously granted Option;
      (iv) to interpret the provisions and supervise the administration of the Option
      Plan; (v) to determine the Fair Market value( as defined below) of the Shares
      (
      as defined below); (vi) to designate Options as 102 Options or 3(i)Options
      and
      (vii) to determine any other matter which is necessary or desirable for, or
      incidental to administration of the Option Plan.

     

    The
      Committee shall have the authority to grant, in its discretion, to the holder
      of
      an outstanding Option, in exchange for the surrender and cancellation of such
      Option, a new Option having a purchase price equal to, lower than or higher
      than
      the Purchase Price provided in the Option so surrendered and canceled, and
      containing such other terms and conditions as the Committee may prescribe in
      accordance with the provisions of the Option Plan.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    All
      decisions and selections made by the Board or the Committee pursuant to the
      provisions of the Option Plan shall be made by a majority of its members except
      that no member of the Board or the Committee shall vote on, or be counted for
      quorum purposes, with respect to any proposed action of the Board or the
      Committee relating to any Option to be granted to that member. Any decision
      reduced to writing and signed by a majority of the members who are authorized
      to
      make such decision shall be fully effective as if it had been made by a majority
      at a meeting duly held.

     

    The
      interpretation and construction by the Committee of any provision of the Option
      Plan or of any Option thereunder shall be final and conclusive unless otherwise
      determined by the Board.

     

    Each
      member of the Board or the Committee shall be indemnified and held harmless
      by
      the Company against any cost or expense (including counsel fees) reasonably
      incurred by him, or any liability (including any sum paid in settlement of
      a
      claim with the approval of the Company) arising out of any act or omission
      to
      act in connection with the Option Plan unless arising out of such member's
      own
      fraud or bad faith, to the extent permitted by applicable law. Such
      indemnification shall be in addition to any rights of indemnification the member
      may have as a director or otherwise under the Company's By Law, any agreement,
      any vote of shareholders or disinterested directors, insurance policy or
      otherwise.

     

    “Fair
      Market Value”
      means,
      as of any date, the value of a Share determined as follows:

     

    
      	 	
              (i)

            	
              If
                the Shares are listed on any established stock exchange or a national
                market system, including without limitation the Nasdaq National Market
                system, or The Nasdaq SmallCap Market of the Nasdaq Stock Market
                , the
                Fair Market Value shall be the closing sales price for such Shares
                (or the
                closing bid, if no sales were reported), as quoted on such exchange
                or
                system for the last market trading day prior to time of determination,
                as
                reported in the Wall
                Street Journal,
                or such other source as the Administrator deems
                reliable.

            

    

     

    
      	 	
              (ii)

            	
              If
                the Shares are regularly quoted by a recognized securities dealer
                but
                selling prices are not reported, the Fair Market Value shall be the
                mean
                between the high bid and low asked prices for the Shares on the last
                market trading day prior to the day of determination,
                or;

            

    

     

    
      	 	
              (iii)

            	
              In
                the absence of an established market for the Shares, the Fair Market
                Value
                thereof shall be determined in good faith by the Committee.
                

            

    

     

    
      	4.	
              DESIGNATION
                OF PARTICIPANTS

            

    

     

    The
      persons eligible for participation in the Option Plan as recipients of Options
      shall include any employees, directors and consultants of the Company or of
      any
      Subsidiary of the Company. The grant of an Option hereunder shall neither
      entitle the recipient thereof to participate nor disqualify him from
      participating in, any other grant of Options pursuant to the Option Plan or
      any
      other option or stock plan of the Company or any of its affiliates.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    To
      the
      extent applicable and anything in the Option Plan to the contrary
      notwithstanding, all grants of Options to directors and office holders, (“Nosei
      Misra” - as such term is defined in the Israeli Companies Law - the“Companies
      Law”)
      shall
      be authorized and implemented in accordance with the provisions of the Israeli
      Companies Law, as in effect from time to time.

     

    
      	5.	
              TRUSTEE

            

    

     

    102
      Options which shall be granted under the Option Plan and/or any Shares issued
      upon exercise of such 102 Options and/or other shares received subsequently
      following any realization of rights, shall be issued to a Trustee nominated
      by
      the Committee, and approved in accordance with the provisions of Section 102
      (the“Trustee”)
      and
      held for the benefit of the Participants. 

     

    102
      Options and any Shares received subsequently following exercise of 102 Options,
      shall be held by the Trustee for a period of not less than two years (24 months)
      from the Date Of Grant. 

     

    3(i)
      Options which shall be granted under the Option Plan, may be issued to a Trustee
      nominated by the Committee, and held for the benefit of the Participants.

     

    Anything
      to the contrary notwithstanding, the Trustee shall not release any Options
      which
      were not already exercised into Shares by the Participant or release any Shares
      issued upon exercise of Options prior to the full payment of the Participant’s
      tax liabilities arising from Options which were granted to him and/or any Shares
      issued upon exercise of such Options.

     

    Upon
      receipt of the Option, the Participant will sign an undertaking to release
      the
      Trustee from any liability in respect of any action or decision duly taken
      and
bona
      fide executed
      in relation with the Option Plan, or any Option or Share granted to him
      thereunder.

     

    
      	6.	
              SHARES
                RESERVED FOR THE OPTION PLAN;
                RESTRICTION THEREON

            

    

     

    
      	
            	6.1	
              Subject
                to adjustments as set forth in Section 7 below, a total of 2,307
                shares of
                Common Stock, of $0.01 par value in the share capital of the Company
                (“the Shares”) shall be subject to
                the Option Plan. Until termination of the Option Plan the Company
                shall,
                at any time reserve sufficient number of Shares to meet the requirements
                of the Option Plan, but any of the Shares covered by the Option Plan,
                which remain unissued and are not subject to outstanding Options
                at the
                termination of the Option Plan, shall cease to be reserved for the
                purpose
                of the Option Plan. Should any Option for any reason expire or be
                canceled
                prior to its exercise or relinquishment in full, the Shares therefore
                subject to such Option may again be subjected to an Option under
                the
                Option Plan.

            

    

     

    
      	 	
              6.2

            	
              An
                Participant who purchased Shares hereunder upon exercise of Options
                shall
                have no voting rights as a shareholder (in any and all matters whatsoever)
                until the consummation of a public offering of the Company's shares
                (“the
                IPO").
                Until an IPO, such Shares shall be voted by an irrevocable proxy
                pursuant
                to the directions of the Board, such proxy to be to the person or
                persons
                designated by the Board. Such person or persons designated by the
                Board
                shall be indemnified and held harmless by the Company against any
                cost or
                expense (including counsel fees) reasonably incurred by him/her,
                or any
                liability (including any sum paid in settlement of a claim with the
                approval of the Company) arising out of any act or omission to act
                in
                connection with the voting of such proxy unless arising out of such
                member's own fraud or bad faith, to the extent permitted by applicable
                law. Such indemnification shall be in addition to any rights of
                indemnification the person(s) may have as a director or otherwise
                under
                the Company's By Law, any agreement, any vote of shareholders or
                disinterested directors, insurance policy or
                otherwise.

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    
      	 	
              6.3

            	
              Each
                Option granted pursuant to the Plan, shall be evidenced by a written
                agreement between the Company and the Participant (“the
                Option Agreement”),
                in such form as the Board or the Committee shall from time to time
                approve. Each Option Agreement shall state a number of the Shares
                to which
                the Option relates and the type of Option granted thereunder (whether
                a
                102 Option or a 3(i) Option).

            

    

     

    
      	 	
              6.4

            	
              All
                Shares issued upon exercise of the Options shall entitle the holder
                thereof to receive dividends and other distributions
                thereon.

            

    

     

    
      	7.	
              PURCHASE
                PRICE

            

    

     

    
      	 	
              7.1

            	
              The
                purchase price of each Share subject to a new Option to be granted
                or any
                portion thereof shall be determined by the Committee in its sole
                and
                absolute discretion in accordance with applicable law, subject to
                any
                guidelines as may be determined by the Board from time to time, but
                not
                beyond the Fair Market Value as defined in section 3 above (“the
                Purchase Price”).

            

    

     

    
      	 	
              7.2

            	
              The
                Purchase Price shall be payable upon the exercise of the Option in
                a form
                satisfactory to the Committee, including without limitation, by cash
                or
                check. The Committee shall have the authority to postpone the date
                of
                payment on such terms as it may
                determine.

            

    

     

    
      	8.	
              ADJUSTMENTS

            

    

     

    Upon
      the
      occurrence of any of the following described events, Participant's rights to
      purchase Shares under the Option Plan shall be adjusted as hereafter
      provided:

     

    
      	 	
              8.1

            	
              In
                case the Company is merged or consolidated with another corporation
                and
                the Company is not the surviving corporation, or, in case the property
                or
                stock of the Company is acquired by any other corporation, or in
                case of a
                reorganization or liquidation of the Company, the Board of Directors
                of
                the Company, or the board of directors of any corporation assuming
                the
                obligations of the Company hereunder, shall, as to outstanding Options,
                either (i) make appropriate provision for the protection of any such
                outstanding Options by the substitution on an equitable basis of
                appropriate stock of the Company or of the merged, consolidated or
                otherwise reorganized corporation that will be issuable in respect
                of the
                shares of Common Stock of the Company, provided only that the excess
                of
                the aggregate fair market value of the shares subject to the Options
                immediately after such substitution over the purchase price thereof
                is not
                more than the excess of the aggregate fair market value of the shares
                subject to such Options immediately before such substitution over
                the
                purchase price thereof, (ii) upon written notice to the Participants,
                provide that all vested and unexercised Options must be exercised
                within a
                specified number of days of the date of such notice or such Options
                will
                be terminated, or (iii) upon written notice to the Participants,
                provide
                that the Company or the merged, consolidated or otherwise reorganized
                corporation shall have the right, upon the effective date of any
                such
                merger, consolidation, sale of assets or reorganization, to purchase
                all
                Options held by each Participant which are vested and unexercised
                as of
                that date, or all Shares purchased by Participant hereunder, at an
                amount
                equal to the aggregate fair market value on such date of the shares
                subject to the Options held by such Participant over the aggregate
                purchase price therefor, such amount to be paid in cash or, if stock
                of
                the merged, consolidated or otherwise reorganized corporation is
                issuable
                in respect of the shares of the Common Stock of the Company, then,
                in the
                discretion of the Board of Directors, in stock of such merged,
                consolidated or otherwise reorganized corporation equal in fair market
                value to the aforesaid amount. In any such case the Board of Directors
                shall, in good faith, determine fair market value and may, in its
                discretion, advance the lapse of any waiting or installment periods
                and
                exercise dates. Unless otherwise determined by the Board of Directors,
                except in the circumstances of subsection 7.1(i) above, any unvested
                Options shall terminate upon the effective date of such merger, sale
                of
                assets, reorganization,
                liquidation,[detail].

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              8.2

            	
              If
                the Company is liquidated or dissolved while unexercised Options
                remain
                outstanding under the Option Plan, then all such outstanding Options
                may
                be exercised in full by the Participants as of the effective date
                of any
                such liquidation or dissolution of the Company without regard to
                the
                installment exercise provisions of Paragraph 10(2) of the Option
                Plan, by
                the Participants giving notice in writing to the Company of their
                intention to so exercise.

            

    

     

    
      	 	
              8.3

            	
              If
                the outstanding shares of the Company shall at any time be changed
                or
                exchanged by declaration of a stock dividend (bonus shares), stock
                split,
                combination or exchange of shares, recapitalization, or any other
                like
                event by or of the Company, and as often as the same shall occur,
                then the
                number, class and kind of Shares subject to the Option Plan or subject
                to
                any Options therefore granted, and the purchase prices, shall be
                appropriately and equitably adjusted so as to maintain the proportionate
                number of Shares without changing the aggregate purchase price, provided,
                however, that no adjustment shall be made by reason of the distribution
                of
                subscription rights (rights offering) on outstanding stock. Upon
                happening
                of any of the foregoing, the class and aggregate number of Shares
                issuable
                pursuant to the Option Plan(as set forth in paragraph 6 hereof),
                in
                respect of which Options have not yet been exercised, shall be
                appropriately adjusted, all as will be determined by the Board whose
                determination shall be final.

            

    

     

    
      	9.	
              PURCHASE
                FOR INVESTMENT

            

    

     

    The
      Company’s obligation to issue Shares upon exercise of an Option granted under
      the Plan is expressly conditioned upon (a) the Company’s completion of any
      registration or other qualifications of such Shares under any state and/or
      federal law, rulings or regulations or (b) representations and undertakings
      by
      the Participant (or his legal representative, heir or legatee, in the event
      of
      the Participant’s death) to assure that the sale of the Shares complies with any
      registration exemption requirements which the Company in its sole discretion
      shall deem necessary or advisable. Such required representations and
      undertakings may include representations and agreements that such Participant
      (or his legal representative, heir, or legatee): (a) is purchasing such Shares
      for investment and not with any present intention of selling or otherwise
      disposing thereof; and (b) agrees to have placed upon the face and reverse
      of
      any certificates evidencing such Shares a legend setting forth (i) any
      representations and undertakings which such Participant has given to the Company
      or a reference thereto and (ii) that, prior to effecting any sale or other
      disposition of any such Shares, the Participant must furnish to the Company
      an
      opinion of counsel, satisfactory to the Company, that such sale or disposition
      will not violate the applicable requirements of State and federal laws and
      regulatory agencies. 

     

    
      
        
        

      

      
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      	10.	
              TERM
                AND EXERCISE OF OPTIONS

            

    

     

    
      	
            	10.1	
              Options
                shall be exercised by the Participant by giving written notice to
                the
                Company, in such form and method as may be determined by the Company
                and
                the Trustee and when applicable, in accordance with the requirements
                of
                Section 102, which exercise shall be effective upon receipt of such
                notice
                by the Company at its principal office. The notice shall specify
                the
                number of Shares with respect to which the Option is being exercised.Each
                Option granted under the Option Plan shall be exercisable following
                the
                exercise dates and for the number of Shares as shall be provided
                in
                Exhibit B to the Option Agreement. However, no Option shall be exercisable
                after the Expiration Date, as defined for each Participant in his
                or her
                Option Agreement.

            

    

     

    
      	
            	10.2	
              Options
                granted under the Option Plan shall not be transferable by Participants
                other than by will or laws of descent and distribution, and during
                an
                Participant's lifetime shall be exercisable only by that
                Participant.

            

    

     

    
      	
            	10.3	
              The
                Options may be exercised by the Participant in whole at any time
                or in
                part from time to time, to the extent that the Options become vested
                and
                excercisable, prior to the Expiration Date, and provided that, subject
                to
                the provisions of Sections 10.5 and 10.6 below, the Participant is
                an
                employee or service provider of the Company or any of its Subsidiaries,
                at
                all times during the period beginning with the granting of the Option
                and
                ending upon the date of exercise.

            

    

     

    
      	
            	10.4	
              Subject
                to the provisions of Section 10.6 below, in the event of termination
                for
                Cause (as defined above) of Participant’s Continuous Service with the
                Company or a Subsidiary of the Company, the Participant’s right to
                exercise the Options shall terminate concurrently with the termination
                of
                the Participant’s Continuous Service, except as otherwise determined by
                the Committee. A notice of termination of employment shall be deemed
                to
                constitute termination of
                employment.

            

    

     

    
      	
            	10.5	
              Notwithstanding
                anything to the contrary hereinabove, in the event the Participant’s
                Continuous Service terminates, other than for Cause, all vested and
                unexpired Options may be exercised after the date of termination
                of
                Participant’s employment with the Company or any Subsidiary of the Company
                thereof, during the period set forth in Exhibit
                B
                hereto (the “Post
                Termination Exercise Period”).
                

            

    

     

    
      	
            	10.6	
              In
                the event that the Participant’s Continuous Service terminated as a result
                of death or disability, all vested and unexpired Options may be exercised
                within the later of: the “Post Termination Exercise Period” set forth in
                Section 5 of Exhibit
                B,
                or, a period of 12 (twelve) months from the date of such
                termination;

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
            	10.7	
              Subject
                to the provisions of Section 11 below, the holders of Options shall
                not
                have any of the rights or privileges of shareholders of the Company
                in
                respect of any Shares purchasable upon the exercise of any part of
                an
                Option, nor shall they be deemed to be a class of shareholders or
                creditors of the Company for purpose of the operation of section
                350 and
                351 of the Israeli Companies Law or any successor to such section,
                until
                registration of the Participant as holder of such Shares in the Company’s
                register of members upon exercise of the Option in accordance with
                the
                provisions of the Option Plan.

            

    

     

    
      	
            	10.8	
              Any
                form of Option Agreement authorized by the Option Plan may contain
                such
                other provisions as the Committee may, from time to time, deem advisable.
                Without limiting the foregoing, the Committee may, with the consent
                of the
                Participant, from time to time cancel all or any portion of any Option
                then subject to exercise, and the Company's obligation in respect
                of such
                Option may be discharged by (i) payment to the Participant of an
                amount in
                cash equal to the excess, if any, of the Fair Market Value of the
                Shares
                at the date of such cancellation subject to the portion of the Option
                so
                canceled over the aggregate Purchase Price of such Shares, (ii) the
                issuance or transfer to the Participant of Shares of the Company
                with a
                Fair Market Value at the date of such transfer equal to any such
                excess,
                or (iii) a combination of cash and shares with a combined value equal
                to
                any such excess, all as determined by the Committee in its sole
                discretion.

            

    

     

    
      	11.	
              SHARES
                SUBJECT TO RIGHT OF FIRST
                REFUSAL

            

    

     

    
      	
            	11.1	
              Notwithstanding
                anything to the contrary in the By law of the Company, none of the
                Participants shall have a right of first refusal in relation with
                any sale
                of shares in the Company.

            

    

     

    
      	
            	11.2	
              Sale
                of Shares by the Participant shall be subject to the right of first
                refusal of other shareholders as set forth in the Certificate of
                Incorporation or By Laws of the Company. In the event that the Certificate
                of Incorporation or By Laws of the Company shall not contain any
                provision
                regarding rights of first refusal, then, unless otherwise provided
                by the
                Board, until such time as the Company shall effectuate an IPO, the
                sale of
                Shares issuable upon exercise of an Option, shall be subject to a
                right of
                first refusal on the part of the Repurchaser(s). Repurchaser(s) means
                (i)
                the Company, if permitted by applicable laws; ( ii) if the Company
                is not
                permitted by applicable laws, then any affiliate or Subsidiary of
                the
                Company designated by a unanimous decision is reached by the Board
                of
                Directors; or ( iii) if no unanimous decision is reached by the Board
                of
                Directors , then the company existing shareholders (save, for avoidance
                of
                doubt , for other Participants who already exercised their Options),
                pro
                rata in accordance with their shareholding. The Participant shall
                give a
                notice of sale (“the
                Notice“)
                to the Company in order to offer the Shares to the Repurchaser(s),
                and the
                Company will forward the Notice to the existing shareholders.
                

            

    

     

    The
      Notice shall specify the Number of Shares offered for sale, the price per Share,
      the payment terms the name of each proposed purchaser or other Transferee
      (“Proposed
      Transferee”).
      The
      Repurchaser(s) will be entitled for 30 days from the day of receipt of the
      Notice (“the 30 Days Period”), to purchase all or part of the offered Shares. If
      by the end of the 30 Days Period not all of the offered Shares have been
      purchased by the Repurchaser(s), the Participant will be entitled to sell such
      Shares at any time during the 60 days following the end of the 30 Days Period
      on
      terms not more favorable than those set out in the Notice, provided that the
      proposed Transferee agrees in writing that the provisions of this section shall
      continue to apply to the Shares in the hands of such proposed
      Transferee.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	12.	
              DIVIDENDS

            

    

     

    With
      respect to all Shares (in contrast to unexercised Options) issued upon the
      exercise of Options purchased by the Participant and held by the Trustee, the
      Participant shall be entitled to receive dividends in accordance with the
      quantity of such Shares, and subject to any applicable taxation on distribution
      of dividends. During the period in which Shares issued to the Trustee on behalf
      of a Participant are held by the Trustee, the cash dividends paid with respect
      thereto shall be paid directly to the Participant.

     

    
      	13.	
              ASSIGNABILITY
                AND SALE OF OPTIONS

            

    

     

    No
      Option, purchasable hereunder, whether fully paid or not, shall be assignable,
      transferable or given as collateral or any right with respect to them given
      to
      any third party whatsoever, and during the lifetime of the Participant each
      and
      all of such Participant's rights to purchase Shares hereunder shall be
      exercisable only by the Participant.

    As
      long
      as the Shares are held by the Trustee in favor of the Participant, than all
      rights the last possesses over the Shares are personal, can not be transferred,
      assigned, pledged or mortgaged, other than by will or laws of descent and
      distribution. 

     

    
      	14.	
              TERM
                OF THE OPTION PLAN

            

    

     

    The
      Option Plan shall be effective as of the date that it is adopted by the Board
      and shall terminate at the end of 10 years from such day of
      adoption.

     

    
      	15.	
              AMENDMENTS
                OR TERMINATION

            

    

     

    The
      Board
      may, at any time and from time to time, but after consultation with the Trustee,
      amend, alter or discontinue the Option Plan, except that no amendment or
      alteration shall be made which would impair the rights of the holder of any
      Option therefore granted, without his consent.

     

    
      	16.	
              GOVERNMENT
                REGULATIONS

            

    

     

    The
      Option Plan, the granting and exercise of Options hereunder, and the obligation
      of the Company to sell and deliver Shares under such Options, shall be subject
      to all applicable laws, rules, and regulations, whether of the State of Israel
      or of the United States or any other State having jurisdiction over the Company
      and the Participant, including the registration of the Shares under the United
      States Securities Act of 1933, and to such approvals by any governmental
      agencies or national securities exchanges as may be required.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	17.	
              CONTINUANCE
                OF EMPLOYMENT 

            

    

     

    Neither
      the Option Plan nor the Option Agreement with the Participant shall impose
      any
      obligation on the Company or a Subsidiary thereof, to continue any Participant
      in its employ, or the hiring by the Company of the Participant’s services and
      nothing in the Option Plan or in any Option granted pursuant thereto shall
      confer upon any Participant any right to continue in the employ or service
      of
      the Company or a Subsidiary thereof or restrict the right of the Company or
      a
      Subsidiary thereof to terminate such employment or service at any
      time.

     

    
      	18.	
              GOVERNING
                LAW & JURISDICTION

            

    

     

    The
      Option Plan shall be governed by and construed and enforced in accordance with
      the laws of the State of Israel applicable to contracts made and to be performed
      therein, without giving effect to the principles of conflict of laws. The
      competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters
      pertaining to the Option Plan.

     

    
      	19.	
              TAX
                CONSEQUENCES

            

    

     

    Any
      tax
      consequences arising from the grant or exercise of any Option, from the payment
      for Shares covered thereby or from any other event or act (of the Company,
      Full
      Access Ltd. ,the Trustee or the Participant), hereunder, shall be borne solely
      by the Participant. Full Access Ltd. and/or the Trustee shall withhold taxes
      according to the requirements under the applicable laws, rules, and regulations,
      including withholding taxes at source. Furthermore, the Participant shall agree
      to indemnify Full Access Ltd. and the Trustee and hold them harmless against
      and
      from any and all liability for any such tax or interest or penalty thereon,
      including without limitation, liabilities relating to the necessity to withhold,
      or to have withheld, any such tax from any payment made to the
      Participant.

    The
      Committee and/or the Trustee shall not be required to release any Share
      certificate to an Participant until all required payments have been fully made.
      

     

    
      	20.	
              NON-EXCLUSIVITY
                OF THE OPTION PLAN

            

    

     

    The
      adoption of the Option Plan by the Board shall not be construed as amending,
      modifying or rescinding any previously approved incentive arrangements or as
      creating any limitations on the power of the Board to adopt such other incentive
      arrangements as it may deem desirable, including, without limitation, the
      granting of stock Options otherwise then under the Option Plan, and such
      arrangements may be either applicable generally or only in specific cases.
      For
      the avoidance of doubt, prior grant of options to Participants of the Company
      under their employment agreements, and not in the framework of any previous
      option plan, shall not be deemed an approved incentive arrangement for the
      purpose of this Section.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    
      	21.	
              MULTIPLE
                AGREEMENTS

            

    

     

    The
      terms
      of each Option may differ from other Options granted under the Option Plan
      at
      the same time, or at any other time. The Committee may also grant more than
      one
      Option to a given Participant during the term of the Option Plan, either in
      addition to, or in substitution for, one or more Options previously granted
      to
      that Participant.

     

    [END]

     

    
      
        
        

      

      
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