Document:

CHINA
      SECURITY & SURVEILLANCE TECHNOLOGY, INC.

    

    2007
      EQUITY INCENTIVE PLAN

    

    

    
      	
              1.

            	
              Purposes
                of the Plan.
                The purposes of this Plan are: to attract and retain the best available
                personnel for positions of substantial responsibility, to provide
                additional incentive to Employees, Directors and Consultants, and
                to
                promote the success of the Company's business. The Plan permits the
                grant
                of Incentive Stock Options, Nonstatutory Stock Options, Restricted
                Stock,
                Restricted Stock Units, Stock Appreciation Rights, Performance Units
                and
                Performance Shares. The
                Administrator may only award or grant those Awards that either comply
                with
                the applicable requirements of Code Section 409A, or do not result
                in the
                deferral of compensation within the meaning of Code Section
                409A.

            

    

     

    
      
        	
                2.

              	
                Definitions.
                  As used herein, the following definitions will
                  apply:

              

      

       

    

    “Administrator”
means
      the Board or any of its Committees as will be administering the Plan, in
      accordance with Section 4.

    

    “Applicable
      Laws”
means
      the requirements relating to the administration of equity-based awards under
      U.S. state corporate laws, U.S. federal and state securities laws, the Code,
      any
      stock exchange or quotation system on which the Common Stock is listed or quoted
      and the applicable laws of any foreign country or jurisdiction where Awards
      are,
      or will be, granted under the Plan.

    

    “Award”
means,
      individually or collectively, a grant under the Plan of Options, SARs,
      Restricted Stock, Restricted Stock Units, Performance Units or Performance
      Shares.

    

    “Award
      Agreement”
means
      the written or electronic agreement setting forth the terms and provisions
      applicable to each Award granted under the Plan. The Award Agreement is subject
      to the terms and conditions of the Plan.

    

    “Board”
means
      the Board of Directors of the Company.

    

    “Change
      in Control”
means
      the occurrence of any of the following events:

    

    (i)    Any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
      becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act),
      directly or indirectly, of securities of the Company representing fifty percent
      (50%) or more of the total voting power represented by the Company's then
      outstanding voting securities; provided however, that for purposes of this
      subsection (i) any acquisition of securities directly from the Company shall
      not
      constitute a Change in Control; or

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    (ii)    The
      consummation of the sale or disposition by the Company of all or substantially
      all of the Company's assets;

    

    (iii)   A
      change
      in the composition of the Board occurring within a two-year period, as a result
      of which fewer than a majority of the directors are Incumbent Directors.
“Incumbent Directors” means directors who either (A) are Directors as of the
      effective date of the Plan, or (B) are elected, or nominated for election,
      to
      the Board with the affirmative votes of at least a majority of the Incumbent
      Directors at the time of such election or nomination (but will not include
      an
      individual whose election or nomination is in connection with an actual or
      threatened proxy contest relating to the election of directors to the Company);
      or

    

    (iv)   The
      consummation of a merger or consolidation of the Company with any other
      corporation, other than a merger or consolidation which would result in the
      voting securities of the Company outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or by being converted
      into voting securities of the surviving entity or its parent) at least fifty
      percent (50%) of the total voting power represented by the voting securities
      of
      the Company or such surviving entity or its parent outstanding immediately
      after
      such merger or consolidation.

    

    “Code”
means
      the Internal Revenue Code of 1986, as amended. Any reference to a section of
      the
      Code herein will be a reference to any successor or amended section of the
      Code.

    

    “Committee”
means
      a
      committee of Directors or of other individuals satisfying Applicable Laws
      appointed by the Board in accordance with Section 4 hereof.

    

    “Common
      Stock”
means
      the common stock of the Company.

    

    “Company”
means
      China Security & Surveillance Technology, Inc., a Delaware corporation, or
      any successor thereto.

    

    “Consultant”
means
      any person, including an advisor, engaged by the Company or a Parent or
      Subsidiary to render services to such entity.

    

    “Director”
means
      a
      member of the Board.

    

    “Disability”
means
      total and permanent disability as defined in Section 22(e)(3) of the Code,
      provided that in the case of Awards other than ISOs, the Administrator in its
      discretion may determine whether a permanent and total disability exists in
      accordance with uniform and non-discriminatory standards adopted by the
      Administrator from time to time.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Employee”
means
      any person, including Officers and Directors, employed by the Company or any
      Parent or Subsidiary of the Company. Neither service as a Director nor payment
      of a director's fee by the Company will be sufficient to constitute "employment"
      by the Company.

    

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

    

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

    

    (i)    
If
      the
      Common Stock is listed on any established stock exchange or a national market
      system, including without limitation the Nasdaq National Market or the Nasdaq
      SmallCap Market of the Nasdaq Stock Market, its Fair Market Value will be the
      closing sales price for such stock (or the closing bid, if no sales were
      reported) as quoted on such exchange or system on the day of determination,
      as
      reported in The Wall Street Journal or such other source as the Administrator
      deems reliable;

    

    (ii)    If
      the
      Common Stock is regularly quoted by a recognized securities dealer but selling
      prices are not reported, the Fair Market Value of a Share will be the mean
      between the high bid and low asked prices for the Common Stock on the day of
      determination, as reported in The Wall Street Journal or such other source
      as
      the Administrator deems reliable; or

    

    (iii)   In
      the
      absence of an established market for the Common Stock, the Fair Market Value
      will be determined in good faith by the Administrator.

    

    “Fiscal
      Year”
means
      the fiscal year of the Company.

    

    “Grant
      Date”
means,
      for all purposes, the date on which the Administrator makes the determination
      granting such Award, or such other later date as is determined by the
      Administrator. Notice of the determination will be provided to each Participant
      within a reasonable time after the date of such grant.

    

    “ISO”
means
      an Option that by its terms qualifies and is otherwise intended to qualify
      as an
      incentive stock option within the meaning of Section 422 of the Code and the
      regulations promulgated thereunder.

    

    “NSO”
means
      an Option that by its terms does not qualify or is not intended to qualify
      as an
      ISO.

    

    “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.

    

    “Option”
means
      a
      stock option granted pursuant to the Plan.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Optioned
      Stock”
means
      the Common Stock subject to an Award.

    

    “Parent”
means
      a
“parent corporation,” whether now or hereafter existing, as defined in Section
      424(e) of the Code.

    

    “Participant”
means
      the holder of an outstanding Award.

    

    “Performance
      Share”
means
      an Award denominated in Shares which may be earned in whole or in part upon
      attainment of performance goals or other vesting criteria as the Administrator
      may determine pursuant to Section 10.

    

    “Performance
      Unit”
means
      an Award which may be earned in whole or in part upon attainment of performance
      goals or other vesting criteria as the Administrator may determine and which
      may
      be settled for cash, Shares or other securities or a combination of the
      foregoing pursuant to Section 10.

    

    “Period
      of Restriction”
means
      the period during which the transfer of Shares of Restricted Stock are subject
      to restrictions and therefore, the Shares are subject to a substantial risk
      of
      forfeiture. Such restrictions may be based on the passage of time, the
      achievement of target levels of performance, or the occurrence of other events
      as determined by the Administrator.

    

    “Plan”
means
      this 2007 Equity Incentive Plan.

    

    “Restricted
      Stock”
means
      Shares issued pursuant to a Restricted Stock award under Section 7.

    

    “Restricted
      Stock Unit”
means
      a
      bookkeeping entry representing an amount equal to the Fair Market Value of
      one
      Share, granted pursuant to Section 8. Each Restricted Stock Unit represents
      an
      unfunded and unsecured obligation of the Company.

    

    “Rule
      16b-3”
means
      Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect
      when
      discretion is being exercised with respect to the Plan.

    

    “Section
      16(b)”
means
      Section 16(b) of the Exchange Act.

    

    “Service
      Provider”
means
      an Employee, Director or Consultant.

    

    “Share”
means
      a
      share of the Common Stock, as adjusted in accordance with Section
      13.

    

    “Stock
      Appreciation Right”
or
      “SAR” means an Award, granted alone or in connection with an Option, that
      pursuant to Section 9 is designated as a Stock Appreciation Right.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Subsidiary”
means
      a
      "subsidiary corporation", whether now or hereafter existing, as defined in
      Section 424(f) of the Code.

    

    “Ten
      Percent Owner”
means
      any Service Provider who is, on the grant date of an ISO, the owner of Shares
      (determined with application of ownership attribution rules of Code Section
      424(d)) possessing more than 10% of the total combined voting power of all
      classes of stock of the Company or any of its Subsidiaries.

    
      

      
        	
                3.

              	
                Stock
                  Subject to the Plan.

              

      

    

    

    
      	 	
              (a)

            	
              Stock
                Subject to the Plan.
                Subject to the provisions of Section 13, the maximum aggregate number
                of
                Shares that may be issued under the Plan under the Plan is eight
                million
                (8,000,000) Shares. The Shares may be authorized, but unissued, or
                reacquired Common Stock.

            

    

    

    
      	 	
              (b)

            	
              Lapsed
                Awards.
                If an Award expires or becomes unexercisable without having been
                exercised
                in full or, with respect to Restricted Stock, Restricted Stock Units,
                Performance Shares or Performance Units, is forfeited in whole or
                in part
                to the Company, the unpurchased Shares (or for Awards other than
                Options
                and SARs, the forfeited or unissued Shares) which were subject to
                the
                Award will become available for future grant or sale under the Plan
                (unless the Plan has terminated). With respect to SARs, only Shares
                actually issued pursuant to an SAR will cease to be available under
                the
                Plan; all remaining Shares subject to the SARs will remain available
                for
                future grant or sale under the Plan (unless the Plan has terminated).
                Shares that have actually been issued under the Plan under any Award
                will
                not be returned to the Plan and will not become available for future
                distribution under the Plan; provided, however, that if Shares issued
                pursuant to Awards of Restricted Stock, Restricted Stock Units,
                Performance Shares or Performance Units are forfeited to the Company,
                such
                Shares will become available for future grant under the Plan. Shares
                withheld by the Company to pay the exercise price of an Award or
                used to
                satisfy tax withholding obligations with respect to an Award will
                become
                available for future grant or sale under the Plan. To the extent
                an Award
                under the Plan is paid out in cash rather than Shares, such cash
                payment
                will not result in reducing the number of Shares available for issuance
                under the Plan. 

            

    

    

    
      	 	
              (c)

            	
              Limitations

            

    

    (i)    
Subject
      to the provisions of Section 13, not more than an aggregate of 8,000,000
      Shares
      shall be available for issuance pursuant to grants of Restricted Stock under
      the
      Plan.

    

    (ii)    Subject
      to the provisions of Section 13, not more than 2,500,000 Shares (or for Awards
      denominated in cash, the Fair Market Value of 2,500,000 Shares on the Grant
      Date), may be made subject to Awards under the Plan to any individual
      Participant in the aggregate in any one fiscal year of the Company, such
      limitation to be applied in a manner consistent with the requirements of, and
      only to the extent required for compliance with, the exclusion from the
      limitation on deductibility of compensation under Code Section
      162(m).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (iii)   Subject
      to the provisions of Section 13, to the extent consistent with Section 424
      of
      the Code, not more than an aggregate of 8,000,000 Shares may be issued under
      ISOs.

     

    
      	 	
              (d)

            	
              Share
                Reserve.
                The Company, during the term of this Plan, will at all times reserve
                and
                keep available such number of Shares as will be sufficient to satisfy
                the
                requirements of the Plan.

            

    

     

    
      
        	
                4. 

              	
                Administration
                  of the Plan.

              

      

       

    

    
      	 	
              (a)

            	
              Procedure.
                The Plan shall be administered by the Board or a committee or committees
                (including subcommittees) appointed by, and consisting of two or
                more
                members of, the Board. If
                and so long as the Common Stock is registered under Section 12(b)
                or 12(g)
                of the Exchange Act, the Board shall consider in selecting the Plan
                Administrator and the membership of any committee acting as Plan
                Administrator the provisions regarding (a) “outside directors” as
                contemplated by Section 162(m) of the Code; (b) “nonemployee directors” as
                contemplated by Rule 16b-3 under the Exchange Act; and (c) “independent
                directors” as contemplated by the listing requirements for any stock
                exchange on which Shares are listed. The
                Board may delegate the responsibility for administering the Plan
                with
                respect to designated classes of eligible Participants to different
                committees consisting of two or more members of the Board, subject
                to such
                limitations as the Board or the Plan Administrator deems appropriate.
                Committee members shall serve for such term as the Board may determine,
                subject to removal by the Board at any time. To the extent consistent
                with
                Applicable Laws, the Board may authorize one or more senior executive
                officers of the Company to grant Awards to designated classes of
                eligible
                employees within the limits prescribed by the
                Board.

            

    

     

    
      	 	
              (b)

            	
              Powers
                of the Administrator.
                Subject to the provisions of the Plan, and in the case of a Committee,
                subject to the specific duties delegated by the Board to such Committee,
                the Administrator will have the authority, in its
                discretion:

            

    

    

    (i)    
to
      determine the Fair Market Value;

    

    (ii)    to
      select
      the Service Providers to whom Awards may be granted hereunder;

    

    
      
        (iii)   to
          determine the number of Shares to be covered by each Award granted hereunder;
          

      

    

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (iv)    to
      approve forms of agreement for use under the Plan;

    

    (v)    
to
      determine the terms and conditions, not inconsistent with the terms of the
      Plan,
      of any Award granted hereunder. Such terms and conditions include, but are
      not
      limited to, the exercise price, the time or times when Awards may be exercised
      (which may be based on performance criteria), any vesting acceleration or waiver
      of forfeiture restrictions, and any restriction or limitation regarding any
      Award or the Shares relating thereto, based in each case on such factors as
      the
      Administrator will determine; 

    

    (vi)    to
      construe and interpret the terms of the Plan and Awards granted pursuant to
      the
      Plan, including the right to construe disputed or doubtful Plan and Award
      provisions; 

    

    (vii)   to
      prescribe, amend and rescind rules and regulations relating to the Plan;

    

    (viii)         
      to
      modify
      or amend each Award (subject to Section 17(c)), including the discretionary
      authority to extend the post-termination exercisability period of Awards, to
      the
      extent that such period can be extended without causing an award to become
      subject to Code Section 409A;

    

    (ix)    to
      allow
      Participants to satisfy withholding tax obligations in such manner as prescribed
      in Section 14;

    

    (x)    
to
      authorize any person to execute on behalf of the Company any instrument required
      to effect the grant of an Award previously granted by the Administrator;
      and

    

    (xi)    to
      make
      all other determinations deemed necessary or advisable for administering the
      Plan.

    

    (c)   Effect
      of Administrator's Decision.
      The
      Administrator’s decisions, determinations and interpretations will be final and
      binding on all Participants and any other holders of Awards. Any decision or
      action taken or to be taken by the Administrator, arising out of or in
      connection with the construction, administration, interpretation and effect
      of
      the Plan and of its rules and regulations, shall, to the maximum extent
      permitted by applicable law, be within its absolute discretion (except as
      otherwise specifically provided herein) and shall be final, binding and
      conclusive upon the Company, all Participants and any person claiming under
      or
      through any Participant.

     

    
      	
              5.

            	
              Eligibility.
                NSOs, Restricted Stock, Restricted Stock Units, SARs, Performance
                Units
                and Performance Shares may be granted to Service Providers. ISOs
                may be
                granted only to Employees.

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
              6. 

            	
              Stock
                Options.

            

    

    

    (a)    Grants.
      Subject
      to the terms and provisions of the Plan, Options may be granted to Service
      Providers at any time as determined by the Administrator in its sole discretion.
      For purposes of the foregoing sentence, Service Providers shall include
      prospective employees or consultants to whom options are granted in connection
      with written offers of employment or engagement of services, respectively,
      with
      the Company; provided that no option granted to a prospective employee or
      consultant may be exercised prior to the commencement of employment or services
      with the Company. The Administrator may grant ISOs, NSOs or any combination
      of
      the two.

    

    (b)    Limitations.
      Each
      Option will be designated in the Award Agreement as either an ISO or an NSO.
      Notwithstanding such designation, to the extent that the aggregate Fair Market
      Value of the Shares with respect to which ISOs are exercisable for the first
      time by the Participant during any calendar year (under all plans of the Company
      and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000),
      Options will be treated as NSOs. For purposes of this Section 6(a), ISOs will
      be
      taken into account in the order in which they were granted. The Fair Market
      Value of the Shares will be determined as of the time the Option with respect
      to
      such Shares is granted.

    

    (c)    Exercise
      Price.
      The per
      Share exercise price for the Shares to be issued pursuant to exercise of an
      Option will be no less than the Fair Market Value per Share on the Grant Date,
      except that in the case of an ISO granted to a Ten Percent Owner, the per Share
      exercise price will be no less than one hundred ten percent (110%) of the Fair
      Market Value per Share on the Grant Date.

    

    (d)    Term
      of Options.
      The
      term of each Option will be stated in the Award Agreement. Unless terminated
      sooner in accordance with the remaining provisions of this Section 6, each
      Option shall expire either five (5) years after the Grant Date, or after a
      shorter term as may be fixed by the Board.

     

    (e)    Exercise
      Date.
      Each
      Award Agreement shall specify how and when shares covered by a Stock Option
      may
      be purchased. The Award Agreement may specify waiting periods, the dates on
      which Options become exercisable or “vested” and, subject to the termination
      provisions of this section, exercise periods. The Administrator may accelerate
      the exercisability of any Option or portion thereof. 

     

    (f)    Exercise
      of Option.
      Any
      Option granted hereunder will be exercisable according to the terms of the
      Plan
      and at such times and under such conditions as determined by the Administrator
      and set forth in the Award Agreement. An Option may not be exercised for a
      fraction of a Share. An Option will be deemed exercised when the Company
      receives: (i) notice of exercise (in such form as the Administrator specify
      from
      time to time) from the person entitled to exercise the Option, and (ii) full
      payment for the Shares with respect to which the Option is exercised (together
      with an applicable withholding taxes). Full payment may consist of any
      consideration and method of payment authorized by the Administrator and
      permitted by the Award Agreement and the Plan (together with an applicable
      withholding taxes). Shares issued upon exercise of an Option will be issued
      in
      the name of the Participant or, if requested by the Participant, in the name
      of
      the Participant and his or her spouse. Until the Shares are issued (as evidenced
      by the appropriate entry on the books of the Company or of a duly authorized
      transfer agent of the Company), no right to vote or receive dividends or any
      other rights as a stockholder will exist with respect to the Optioned Stock,
      notwithstanding the exercise of the Option. The Company will issue (or cause
      to
      be issued) such Shares promptly after the Option is exercised. No adjustment
      will be made for a dividend or other right for which the record date is prior
      to
      the date the Shares are issued, except as provided in Section 13.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (g)    Form
      of Consideration.
      The
      Administrator will determine the acceptable form of consideration for exercising
      an Option, including the method of payment. In the case of an ISO, the
      Administrator will determine the acceptable form of consideration at the time
      of
      grant. Such consideration may consist entirely of: 

     

    (i)    
cash;

    

    (ii)    check;
      

    

    (iii)   to
      the
      extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a
      promissory note; 

    

    (iv)    other
      Shares, provided Shares have a Fair Market Value on the date of surrender equal
      to the aggregate exercise price of the Shares as to which said Option will
      be
      exercised; 

    

    (v)    
to
      the
      extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002,
      consideration received by the Company under a cashless exercise program;

    

    (vi)    any
      combination of the foregoing methods of payment; or 

    

    (vii)   such
      other consideration and method of payment for the issuance of Shares to the
      extent permitted by Applicable Laws.

    

    (h)    Termination
      of Options.
      An
      Option may terminate prior to the end of the term specified in an Award
      Agreement as follows:

     

    (i)    Termination
      of Relationship as a Service Provider.
      If a
      Participant ceases to be a Service Provider, other than upon the Participant's
      death or Disability, the Participant may exercise his or her Option within
      such
      period of time as is specified in the Award Agreement to the extent that the
      Option is vested on the date of termination (but in no event later than the
      expiration of the term of such Option as set forth in the Award Agreement).
      In
      the absence of a specified time in the Award Agreement, the Option will remain
      exercisable for three (3) months following the Participant's termination. Unless
      otherwise provided by the Administrator, if on the date of termination the
      Participant is not vested as to his or her entire Option, the Shares covered
      by
      the unvested portion of the Option will be forfeited and revert to the Plan.
      If
      after termination the Participant does not exercise his or her Option within
      the
      time specified by the Administrator, the Option will terminate, and the Shares
      covered by such Option will be forfeited and revert to the Plan.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (ii)    Disability
      of Participant.
      If a
      Participant ceases to be a Service Provider as a result of the Participant's
      Disability, the Participant may exercise his or her Option within such period
      of
      time as is specified in the Award Agreement to the extent the Option is vested
      on the date of termination (but in no event later than the expiration of the
      term of such Option as set forth in the Award Agreement). In the absence of
      a
      specified time in the Award Agreement, the Option will remain exercisable for
      twelve (12) months following the Participant's termination. Unless otherwise
      provided by the Administrator, if on the date of termination the Participant
      is
      not vested as to his or her entire Option, the Shares covered by the unvested
      portion of the Option will be forfeited and revert to the Plan. If after
      termination the Participant does not exercise his or her Option within the
      time
      specified herein, the Option will terminate, and the Shares covered by such
      Option will be forfeited and revert to the Plan.

    

    (iii)   Death
      of Participant.
      If a
      Participant dies while a Service Provider, the Option may be exercised following
      the Participant's death within such period of time as is specified in the Award
      Agreement to the extent that the Option is vested on the date of death (but
      in
      no event may the option be exercised later than the expiration of the term
      of
      such Option as set forth in the Award Agreement), by the Participant's
      designated beneficiary, provided such beneficiary has been designated prior
      to
      Participant's death in a form acceptable to the Administrator. If no such
      beneficiary has been designated by the Participant, then such Option may be
      exercised by the personal representative of the Participant's estate or by
      the
      person(s) to whom the Option is transferred pursuant to the Participant's will
      or in accordance with the laws of descent and distribution. In the absence
      of a
      specified time in the Award Agreement, the Option will remain exercisable for
      twelve (12) months following Participant's death. Unless otherwise provided
      by
      the Administrator, if at the time of death Participant is not vested as to
      his
      or her entire Option, the Shares covered by the unvested portion of the Option
      will be forfeited and revert to the Plan. If the Option is not so exercised
      within the time specified herein, the Option will terminate, and the Shares
      covered by such Option will be forfeited and revert to the Plan.

    
       

      
        	
                7. 

              	
                Restricted
                  Stock.

              

      

       

    

    
      
        (a)    Grant.
          Subject
          to the terms and provisions of the Plan, the Administrator, at any time
          and from
          time to time, may grant Shares of Restricted Stock to Service Providers
          in such
          amounts as the Administrator, in its sole discretion, will
          determine.

      

    

    

    
      
        (b)    Restricted
          Stock Agreement.
          Each
          Award of Restricted Stock will be evidenced by an Award Agreement that
          will
          specify the Period of Restriction, the number of Shares granted, and such
          other
          terms and conditions as the Administrator, in its sole discretion, will
          determine. Unless the Administrator determines otherwise, the Company as
          escrow
          agent will hold Shares of Restricted Stock until the restrictions on such
          Shares
          have lapsed.

      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (c)    Transferability.
      Except
      as provided in this Section, Shares of Restricted Stock may not be sold,
      transferred, pledged, assigned, or otherwise alienated or hypothecated until
      the
      end of the applicable Period of Restriction.

    

    (d)    Period
      of Restriction.
      The
      Administrator, in its sole discretion, may impose such conditions on the vesting
      of Shares of Restricted Stock as it may deem advisable or appropriate, including
      but not limited to, achievement of Company-wide, business unit, or individual
      goals (including, but not limited to, continued employment), or any other basis
      determined by the Administrator in its discretion. All restrictions imposed
      on
      Restricted Stock shall lapse and the Period of Restriction shall end upon the
      satisfaction of vesting conditions imposed by the Administrator. The
      Administrator may, in its discretion, also provide for such complete or partial
      exceptions to an employment restriction as it deems equitable. 

    

    (e)    Removal
      of Restrictions.
      Except
      as otherwise provided in this Section, Shares of Restricted Stock covered by
      each Restricted Stock grant made under the Plan will be released from escrow
      as
      soon as practicable after the last day of the Period of Restriction or at such
      other time as the Administrator may determine. The Administrator, in its
      discretion, may accelerate the time at which any restrictions will lapse or
      be
      removed.

    

    (f)    Voting
      Rights.
      During
      the Period of Restriction, Service Providers holding Shares of Restricted Stock
      granted hereunder may exercise full voting rights with respect to those Shares,
      unless the Administrator determines otherwise.

    

    (g)    Dividends
      and Other Distributions.
      During
      the Period of Restriction, Service Providers holding Shares of Restricted Stock
      will be entitled to receive all dividends and other distributions paid with
      respect to such Shares, unless the Administrator determines otherwise. If any
      such dividends or distributions are paid in Shares, the Shares will be subject
      to the same restrictions on transferability and forfeitability as the Shares
      of
      Restricted Stock with respect to which they were paid.

    

    (h)    Return
      of Restricted Stock to Company.
      On the
      date set forth in the Award Agreement, the Restricted Stock for which
      restrictions have not lapsed will be forfeited and revert to the Company and
      again will become available for grant under the Plan.

    
      

      
        	
                8. 

              	
                Restricted
                  Stock Units.

              

      

       

    

    (a)    Grant.
      Subject
      to the terms and provisions of the Plan, the Administrator, at any time and
      from
      time to time, may grant Restricted Stock Units to Service Providers in such
      amounts as the Administrator, in its sole discretion, will determine.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (b)    Vesting
      Criteria and Other Terms.
      The
      Administrator shall set vesting criteria in its discretion, which, depending
      on
      the extent to which the criteria are met, will determine the number of
      Restricted Stock Units that will be paid out to the Participant. The
      Administrator may set vesting criteria based upon the achievement of
      Company-wide, business unit, or individual goals (including, but not limited
      to,
      continued employment), or any other basis determined by the Administrator in
      its
      discretion. The Administrator will determine the other terms, conditions, and
      restrictions related to the grant, including the number of Restricted Stock
      Units and the form of payout, which, subject to Section 8(d), may be left to
      the
      discretion of the Administrator.

    

    (c)    Earning
      Restricted Stock Units.
      Upon
      satisfaction of the applicable vesting conditions, the Participant shall be
      entitled to receive a payout at such time as the Administrator determines.
      At
      any time after the grant of Restricted Stock Units, the Administrator, in its
      sole discretion, may reduce or waive any vesting criteria that must be met
      to
      receive a payout.

    

    (d)    Form
      and Timing of Payment.
      Payment
      of earned Restricted Stock Units shall be made as soon as practicable after
      the
      date(s) determined by the Administrator and set forth in the Award Agreement.
      The Administrator, in its sole discretion, may pay earned Restricted Stock
      Units
      in cash, Shares, or a combination thereof. Restricted Stock Units that are
      fully
      paid in cash will not reduce the number of Shares available for issuance under
      the Plan.

    

    (e)    Cancellation.
      On the
      date set forth in the Award Agreement, all unearned Restricted Stock Units
      shall
      be forfeited to the Company. 

    
      

      
        	
                9. 

              	
                Stock
                  Appreciation Rights.

              

      

    

    

    (a)    Grant
      of SARs.
      Subject
      to the terms and conditions of the Plan, SARs may be granted to Service
      Providers at any time and from time to time as will be determined by the
      Administrator, in its sole discretion.

    

    (b)    Number
      of Shares.
      The
      Administrator will have complete discretion to determine the number of SARs
      granted to any Service Provider.

    

    (c)    Exercise
      Price and Other Terms.
      The per
      Share exercise price for the exercise of an SAR will be no less than the Fair
      Market Value per Share on the Grant Date. The Administrator, subject to the
      provisions of the Plan, will have complete discretion to determine the other
      terms and conditions of SARs granted under the Plan.

    

    (d)    Award
      Agreement.
      Each
      SAR grant will be evidenced by an Award Agreement that will specify the exercise
      price, the term of the SAR, the conditions of exercise, and such other terms
      and
      conditions as the Administrator, in its sole discretion, will
      determine.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (e)    Expiration
      of SARs.
      An SAR
      granted under the Plan will expire upon the date determined by the
      Administrator, in its sole discretion, and set forth in the Award Agreement.
      

    

    (f)    Payment
      of SAR Amount.
      Upon
      exercise of an SAR, a Participant will be entitled to receive payment from
      the
      Company in an amount determined by multiplying:

    

    (i)    The
      difference between the Fair Market Value of a Share on the date of exercise
      over
      the exercise price; times 

    

    (ii)    The
      number of Shares with respect to which the SAR is exercised.

    

    (g)    Form
      of Payment.
      At the
      discretion of the Administrator, the payment upon SAR exercise may be in cash,
      in Shares of equivalent value, or in some combination thereof.

    
      

      
        	
                10.

              	
                Performance
                  Units and Performance Shares.

              

      

       

    

    (a)    Grant
      of Performance Units and Performance Shares.
      Performance Units or Performance Shares may be granted to Service Providers
      at
      any time and from time to time, as will be determined by the Administrator,
      in
      its sole discretion. The Administrator will have complete discretion in
      determining the number of Performance Units and Performance Shares granted
      to
      each Participant. 

    

    (b)    Value
      of Performance Units and Shares.
      Each
      Performance Unit will have an initial value that is established by the
      Administrator on or before the Grant Date. Each Performance Share will have
      an
      initial value equal to the Fair Market Value of a Share on the Grant
      Date.

    

    (c)    Performance
      Objectives and Other Terms.
      The
      Administrator will set performance objectives or other vesting provisions
      (including, without limitation, continued status as a Service Provider) in
      its
      discretion which, depending on the extent to which they are met, will determine
      the number or value of Performance Units or Performance Shares that will be
      paid
      out to the Service Providers. The time period during which the performance
      objectives or other vesting provisions must be met will be called the
“Performance Period.” Each Award of Performance Units or Performance Shares will
      be evidenced by an Award Agreement that will specify the Performance Period,
      and
      such other terms and conditions as the Administrator, in its sole discretion,
      will determine. The Administrator may set performance objectives based upon
      the
      achievement of Company-wide, divisional, or individual goals, applicable federal
      or state securities laws, or any other basis determined by the Administrator
      in
      its discretion.

    

    (d)    Earning
      of Performance Units and Shares.
      After
      the applicable Performance Period has ended, the holder of Performance Units
      or
      Performance Shares will be entitled to receive a payout of the number of
      Performance Units or Performance Shares earned by the Participant over the
      Performance Period, to be determined as a function of the extent to which the
      corresponding performance objectives or other vesting provisions have been
      achieved.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (e)    Form
      and Timing of Payment of Performance Units or Shares.
      Payment
      of earned Performance Units or Performance Shares will be made as soon as
      practicable after the expiration of the applicable Performance Period. The
      Administrator, in its sole discretion, may pay earned Performance Units and
      Performance Shares in the form of cash, in Shares (which have an aggregate
      Fair
      Market Value equal to the value of the earned Performance Units or Performance
      Shares at the close of the applicable Performance Period) or in a combination
      thereof.

    

    (f)    Cancellation
      of Performance Units and Performance Shares.
      On the
      date set forth in the Award Agreement, all unearned or unvested Performance
      Units or Performance Shares will be forfeited to the Company, and again will
      be
      available for grant under the Plan.

    

    
      	
              11.

            	
              Leaves
                of Absence/Transfer Between Locations.
                

            

    

    

    
      	 	
              Unless
                the Administrator provides otherwise or as required by Applicable
                Law,
                vesting of Awards granted hereunder will be suspended during any
                unpaid
                leave of absence. An Employee will not cease to be an Employee in
                the case
                of (i) any leave of absence approved by the Company or (ii) transfers
                between locations of the Company or between the Company, its Parent,
                or
                any Subsidiary. For purposes of ISOs, no such leave may exceed ninety
                (90)
                days, unless reemployment upon expiration of such leave is guaranteed
                by
                statute or contract. If reemployment upon expiration of a leave of
                absence
                approved by the Company is not so guaranteed, then three (3) months
                following the ninety-first (91st) day of such leave any ISO held
                by the
                Participant will cease to be treated as an ISO and will be treated
                for tax
                purposes as an NSO.

            

    

    

    
      	
              12.

            	
              Transferability
                of Awards.
                

            

    

    

    
      	 	
              Unless
                determined otherwise by the Administrator, an Award may not be sold,
                pledged, assigned, hypothecated, transferred, or disposed of in any
                manner
                other than by will or by the laws of descent or distribution and
                may be
                exercised, during the lifetime of the Participant, only by the
                Participant. If the Administrator makes an Award transferable, such
                Award
                will contain such additional terms and conditions as the Administrator
                deems appropriate. 

            

    

    
      

      
        	
                13. 

              	
                Adjustments;
                  Dissolution or Liquidation; Merger or Change in Control.

              

      

      
(a)    Adjustments.
        In the
        event that any dividend or other distribution (whether in the form of cash,
        Shares, other securities, or other property), recapitalization, stock split,
        reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
        combination, repurchase, or exchange of Shares or other securities of the
        Company, or other change in the corporate structure of the Company affecting
        the
        Shares occurs, the Administrator, in order to prevent diminution or enlargement
        of the benefits or potential benefits intended to be made available under
        the
        Plan, shall adjust the number and class of Shares that may be delivered under
        the Plan and/or the number, class, and price of Shares covered by each
        outstanding Award, the numerical Share limit in Section 3. 

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (b)    Dissolution
      or Liquidation.
      In the
      event of the proposed dissolution or liquidation of the Company, the
      Administrator will notify each Participant as soon as practicable prior to
      the
      effective date of such proposed transaction. To the extent it has not been
      previously exercised, an Award will terminate immediately prior to the
      consummation of such proposed action.

    

    (c)    Change
      in Control.
      In the
      event of a merger or Change in Control, any or all outstanding Awards may be
      assumed or replaced by the successor corporation, which assumption or
      replacement shall be binding on all Participants. In the alternative, the
      successor corporation may substitute equivalent Awards or provide substantially
      similar consideration to Participants as was provided to stockholders (after
      taking into account the existing provisions of the Awards). The successor
      corporation may also issue, in place of outstanding Shares of the Company held
      by the Participant, substantially similar shares or other property subject
      to
      repurchase restrictions no less favorable to the Participant. 

    

    In
      the
      event that the successor corporation does not assume or substitute for the
      Award, unless the Administrator provides otherwise, the Participant will fully
      vest in and have the right to exercise all of his or her outstanding Options
      and
      SARs, including Shares as to which such Awards would not otherwise be vested
      or
      exercisable, all restrictions on Restricted Stock and Restricted Stock Units
      will lapse, and, with respect to Performance Shares and Performance Units,
      all
      Performance Goals or other vesting criteria will be deemed achieved at target
      levels and all other terms and conditions met. In addition, if an Option or
      SAR
      is not assumed or substituted in the event of a Change in Control, the
      Administrator will notify the Participant in writing or electronically that
      the
      Option or SAR will be exercisable for a period of time determined by the
      Administrator in its sole discretion, and the Option or SAR will terminate
      upon
      the expiration of such period.

    

    For
      the
      purposes of this subsection (c), an Award will be considered assumed if,
      following the Change in Control, the Award confers the right to purchase or
      receive, for each Share subject to the Award immediately prior to the Change
      in
      Control, the consideration (whether stock, cash, or other securities or
      property) or, in the case of an SAR upon the exercise of which the Administrator
      determines to pay cash or a Performance Share or Performance Unit which the
      Administrator can determine to pay in cash, the fair market value of the
      consideration received in the merger or Change in Control by holders of Common
      Stock for each Share held on the effective date of the transaction (and if
      holders were offered a choice of consideration, the type of consideration chosen
      by the holders of a majority of the outstanding Shares); provided, however,
      that
      if such consideration received in the Change in Control is not solely common
      stock of the successor corporation or its Parent, the Administrator may, with
      the consent of the successor corporation, provide for the consideration to
      be
      received upon the exercise of an Option or SAR or upon the payout of a
      Restricted Stock Unit, Performance Share or Performance Unit, for each Share
      subject to such Award (or in the case of Restricted Stock Units and Performance
      Units, the number of implied shares determined by dividing the value of the
      Restricted Stock Units and Performance Units, as applicable, by the per share
      consideration received by holders of Common Stock in the Change in Control),
      to
      be solely common stock of the successor corporation or its Parent equal in
      fair
      market value to the per share consideration received by holders of Common Stock
      in the Change in Control.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	 	
              Notwithstanding
                anything in this Section 13(c) to the contrary, an Award that vests,
                is
                earned or paid-out upon the satisfaction of one or more performance
                goals
                will not be considered assumed if the Company or its successor modifies
                any of such performance goals without the Participant's consent;
                provided,
                however, a modification to such performance goals only to reflect
                the
                successor corporation's post-Change in Control corporate structure
                will
                not be deemed to invalidate an otherwise valid Award
                assumption.

            

    

     

    
      
        	
                14. 

              	
                Tax
                  Withholding.

              

      

    

    

    (a)    Withholding
      Requirements.
      Prior
      to the delivery of any Shares or cash pursuant to an Award (or exercise
      thereof), the Company will have the power and the right to deduct or withhold,
      or require a Participant to remit to the Company, an amount sufficient to
      satisfy federal, state, local, foreign or other taxes (including the
      Participant's FICA obligation) required to be withheld with respect to such
      Award (or exercise thereof).

    

    (b)    Withholding
      Arrangements.
      The
      Administrator, in its sole discretion and pursuant to such procedures as it
      may
      specify from time to time, may permit a Participant to satisfy such tax
      withholding obligation, in whole or in part by (without limitation) (i) paying
      cash, (ii) electing to have the Company withhold otherwise deliverable cash
      or
      Shares having a Fair Market Value equal to the amount required to be withheld,
      or (iii) delivering to the Company already-owned Shares having a Fair Market
      Value equal to the amount required to be withheld. The amount of the withholding
      requirement will be deemed to include any amount which the Administrator agrees
      may be withheld at the time the election is made. The Fair Market Value of
      the
      Shares to be withheld or delivered will be determined as of the date that the
      taxes are required to be withheld.

    

    
      	
              15.

            	
              No
                Effect on Employment or Service.
                

            

      	 	 

    

    
      	 	
              Neither
                the Plan nor any Award will confer upon a Participant any right with
                respect to continuing the Participant's relationship as a Service
                Provider
                with the Company, nor will they interfere in any way with the
                Participant's right or the Company's right to terminate such relationship
                at any time, with or without cause, to the extent permitted by Applicable
                Laws.

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      

      
        	
                16. 

              	
                Term
                  of Plan.
                  

              

      

       

    

    
      	 	
              The
                Plan was adopted by the Board on February 7, 2007. The Plan shall
                become
                effective upon approval by stockholders of the Company, consistent
                with
                applicable laws. The Plan will terminate ten years following the
                earlier
                of (i) the date it was adopted by the Board or (ii) the date it
                became effective upon approval by stockholders of the Company, unless
                sooner terminated by the Board pursuant to Section 17.
                

            

    

     

    
      	
              17. 

            	
              Amendment
                and Termination of the Plan.

            

    

     

    (a)    Amendment
      and Termination.
      The
      Board may at any time amend, alter, suspend or terminate the Plan.

    

    (b)    Stockholder
      Approval.
      The
      Company will obtain stockholder approval of any Plan amendment to the extent
      necessary and desirable to comply with Applicable Laws.

    

    (c)    Effect
      of Amendment or Termination.
      No
      amendment, alteration, suspension or termination of the Plan will impair the
      rights of any Participant, unless mutually agreed otherwise between the
      Participant and the Administrator, which agreement must be in writing and signed
      by the Participant and the Company. Termination of the Plan will not affect
      the
      Administrator’s ability to exercise the powers granted to it hereunder with
      respect to Awards granted under the Plan prior to the date of such
      termination.

    
      

      
        	
                18. 

              	
                Conditions
                  Upon Issuance of Shares.

              

      

       

    

    (a)    Legal
      Compliance.
      Shares
      will not be issued pursuant to the exercise of an Award unless the exercise
      of
      such Award and the issuance and delivery of such Shares will comply with
      Applicable Laws and will be further subject to the approval of counsel for
      the
      Company with respect to such compliance.

    

    (b)    Investment
      Representations.
      As a
      condition to the exercise of an Award, the Company may require the person
      exercising such Award to represent and warrant at the time of any such exercise
      that the Shares are being purchased only for investment and without any present
      intention to sell or distribute such Shares if, in the opinion of counsel for
      the Company, such a representation is required.

    
      

      
        	
                19. 

              	
                Inability
                  to Obtain Authority.
                  

              

      

    

    

    
      	 	
              The
                inability of the Company to obtain authority from any regulatory
                body
                having jurisdiction, which authority is deemed by the Company’s counsel to
                be necessary to the lawful issuance and sale of any Shares hereunder,
                will
                relieve the Company of any liability in respect of the failure to
                issue or
                sell such Shares as to which such requisite authority will not have
                been
                obtained.

            

    

    

    
      	
              20.

            	
              Repricing
                Prohibited; Exchange And Buyout Of Awards.
                The repricing of Options or SARs is prohibited without prior stockholder
                approval. The Administrator may authorize the Company, with prior
                stockholder approval and the consent of the respective Participants,
                to
                issue new Option or SAR Awards in exchange for the surrender and
                cancellation of any or all outstanding Awards. The Administrator
                may at
                any time buy from a Participant an Option previously granted with
                payment
                in cash, Shares or other consideration, based on such terms and conditions
                as the Administrator and the Participant shall
                agree.

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
              21.

            	
              Governing
                Law.
                The Plan and all Agreements shall be construed in accordance with
                and
                governed by the laws of the State of
                Delaware.

            

    

    

    
      	
              22.

            	
              Effective
                Date.
                The
                Plan’s effective date is the date on which it is adopted by the
                Board,
                so
                long as it is approved by the Company’s shareholders at any time within 12
                months of such adoption.

            

    

    

    
      
         

      

      
        18Unassociated Document

    IGIA,
      INC. 2007 INCENTIVE STOCK PLAN

    

    This
      IGIA,
      Inc. 2007 INCENTIVE STOCK PLAN
      (the
      "Plan")
      is
      designed to retain directors, executives and selected employees and consultants
      and reward them for making major contributions to the success of the Company.
      These objectives are accomplished by making long-term incentive awards under
      the
      Plan thereby providing Participants with a proprietary interest in the growth
      and performance of the Company.

    

    	1.  	
            Definitions.

          

    

    	(a)  	
            "Board"
              -
              The Board of Directors of the Company.

          

    

    	(b)  	
            "Code"
              -
              The Internal Revenue Code of 1986, as amended from time to
              time.

          

    

    	(c)  	
            "Committee"
              -
              The Compensation Committee of the Company's Board, or such other committee
              of the Board that is designated by the Board to administer the Plan,
              composed of not less than two members of the Board all of whom are
              disinterested persons, as contemplated by Rule 16b-3 ("Rule
              16b-3")
              promulgated under the Securities Exchange Act of 1934, as amended (the
              "Exchange
              Act").

          

    

    	(d)  	
            "Company"
              -
              IGIA, Inc. and its subsidiaries including subsidiaries of
              subsidiaries.

          

    

    	(e)  	
            "Exchange
              Act"
              -
              The Securities Exchange Act of 1934, as amended from time to
              time.

          

    

    	(f)  	
            "Fair
              Market Value"
              -
              The fair market value of the Company's issued and outstanding Stock
              as
              determined in good faith by the Board or
              Committee.

          

    

    	(g)  	
            "Grant"
              -
              The grant of any form of stock option, stock award, or stock purchase
              offer, whether granted singly, in combination or in tandem, to a
              Participant pursuant to such terms, conditions and limitations as the
              Committee may establish in order to fulfill the objectives of the
              Plan.

          

    

    	(h)  	
            "Grant
              Agreement"
              -
              An agreement between the Company and a Participant that sets forth
              the
              terms, conditions and limitations applicable to a
              Grant.

          

    

    	(i)  	
            "Option"
              -
              Either an Incentive Stock Option, in accordance with Section 422 of
              Code,
              or a Nonstatutory Option, to purchase the Company's Stock that may
              be
              awarded to a Participant under the Plan. A Participant who receives
              an
              award of an Option shall be referred to as an "Optionee."

          

    

    	(j)  	
            "Participant"
              -
              A director, officer, employee or consultant of the Company to whom
              an
              Award has been made under the Plan.

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    	(k)  	
            "Restricted
              Stock Purchase Offer"
              -
              A Grant of the right to purchase a specified number of shares of Stock
              pursuant to a written agreement issued under the
              Plan.

          

    

    	(l)  	
            "Securities
              Act"
              -
              The Securities Act of 1933, as amended from time to
              time.

          

    

    	(m)  	
            "Stock"
              -
              Authorized and issued or unissued shares of common stock of the
              Company.

          

    

    	(n)  	
            "Stock
              Award"
              -
              A Grant made under the Plan in stock or denominated in units of stock
              for
              which the Participant is not obligated to pay additional
              consideration.

          

    

    	2.  	
            Administration.
              The Plan shall be administered by the Board, provided however, that
              the
              Board may delegate such administration to the Committee. Subject to
              the
              provisions of the Plan, the Board and/or the Committee shall have
              authority to (a) grant, in its discretion, Incentive Stock Options
              in
              accordance with Section 422 of the Code, or Nonstatutory Options, Stock
              Awards or Restricted Stock Purchase Offers; (b) determine in good faith
              the fair market value of the Stock covered by any Grant; (c) determine
              which eligible persons shall receive Grants and the number of shares,
              restrictions, terms and conditions to be included in such Grants; (d)
              construe and interpret the Plan; (e) promulgate, amend and rescind
              rules
              and regulations relating to its administration, and correct defects,
              omissions and inconsistencies in the Plan or any Grant; (f) consistent
              with the Plan and with the consent of the Participant, as appropriate,
              amend any outstanding Grant or amend the exercise date or dates thereof;
              (g) determine the duration and purpose of leaves of absence which may
              be
              granted to Participants without constituting termination of their
              employment for the purpose of the Plan or any Grant; and (h) make all
              other determinations necessary or advisable for the Plan's administration.
              The interpretation and construction by the Board of any provisions
              of the
              Plan or selection of Participants shall be conclusive and final. No
              member
              of the Board or the Committee shall be liable for any action or
              determination made in good faith with respect to the Plan or any Grant
              made thereunder.

          

    

    	3.  	
            Eligibility.

          

    

    	(a)  	
            General:
              The persons who shall be eligible to receive Grants shall be directors,
              officers, employees or consultants to the Company. The term consultant
              shall mean any person, other than an employee, who is engaged by the
              Company to render services and is compensated for such services. An
              Optionee may hold more than one Option. Any issuance of a Grant to
              an
              officer or director of the Company subsequent to the first registration
              of
              any of the securities of the Company under the Exchange Act shall comply
              with the requirements of Rule 16b-3.

          

    

    	(b)  	
            Incentive
              Stock Options:
              Incentive Stock Options may only be issued to employees of the Company.
              Incentive Stock Options may be granted to officers or directors, provided
              they are also employees of the Company. Payment of a director's fee
              shall
              not be sufficient to constitute employment by the
              Company.

          

    

    The
      Company shall not grant an Incentive Stock Option under the Plan to any employee
      if such Grant would result in such employee holding the right to exercise for
      the first time in any one calendar year, under all Incentive Stock Options
      granted under the Plan or any other plan maintained by the Company, with respect
      to shares of Stock having an aggregate fair market value, determined as of
      the
      date of the Option is granted, in excess of $100,000. Should it be determined
      that an Incentive Stock Option granted under the Plan exceeds such maximum
      for
      any reason other than a failure in good faith to value the Stock subject to
      such
      option, the excess portion of such option shall be considered a Nonstatutory
      Option. To the extent the employee holds two (2) or more such Options which
      become exercisable for the first time in the same calendar year, the foregoing
      limitation on the exercisability of such Option as Incentive Stock Options
      under
      the Federal tax laws shall be applied on the basis of the order in which such
      Options are granted. If, for any reason, an entire Option does not qualify
      as an
      Incentive Stock Option by reason of exceeding such maximum, such Option shall
      be
      considered a Nonstatutory Option.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    	(c)  	
            Nonstatutory
              Option:
              The provisions of the foregoing Section 3(b) shall not apply to any
              Option
              designated as a "Nonstatutory
              Option"
              or which sets forth the intention of the parties that the Option be
              a
              Nonstatutory Option.

          

    

    	(d)  	
            Stock
              Awards and Restricted Stock Purchase Offers:
              The provisions of this Section 3 shall not apply to any Stock Award
              or
              Restricted Stock Purchase Offer under the
              Plan.

          

    

    	4.  	
            Stock.

          

    

    	(a)  	
            Authorized
              Stock:
              Stock subject to Grants may be either unissued or reacquired
              Stock.

          

    

    	(b)  	
            Number
              of Shares:
              Subject to adjustment as provided in Section 5(i) of the Plan, the
              total
              number of shares of Stock which may be purchased or granted directly
              by
              Options, Stock Awards or Restricted Stock Purchase Offers, or purchased
              indirectly through exercise of Options granted under the Plan shall
              not
              exceed Ninety Million (90,000,000). If any Grant shall for any reason
              terminate or expire, any shares allocated thereto but remaining
              unpurchased upon such expiration or termination shall again be available
              for Grants with respect thereto under the Plan as though no Grant had
              previously occurred with respect to such shares. Any shares of Stock
              issued pursuant to a Grant and repurchased pursuant to the terms thereof
              shall be available for future Grants as though not previously covered
              by a
              Grant.

          

    

    	(c)  	
            Reservation
              of Shares:
              The Company shall reserve and keep available at all times during the
              term
              of the Plan such number of shares as shall be sufficient to satisfy
              the
              requirements of the Plan. If, after reasonable efforts, which efforts
              shall not include the registration of the Plan or Grants under the
              Securities Act, the Company is unable to obtain authority from any
              applicable regulatory body, which authorization is deemed necessary
              by
              legal counsel for the Company for the lawful issuance of shares hereunder,
              the Company shall be relieved of any liability with respect to its
              failure
              to issue and sell the shares for which such requisite authority was
              so
              deemed necessary unless and until such authority is
              obtained.

          

    

    	(d)  	
            Application
              of Funds:
              The
              proceeds received by the Company from the sale of Stock pursuant to
              the
              exercise of Options or rights under Stock Purchase Agreements will
              be used
              for general corporate purposes.

          

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    	(e)  	
            No
              Obligation to Exercise:
              The issuance of a Grant shall impose no obligation upon the Participant
              to
              exercise any rights under such Grant.

          

    

    	5.  	
            Terms
              and Conditions of Options. Options granted hereunder shall be evidenced
              by
              agreements between the Company and the respective Optionees, in such
              form
              and substance as the Board or Committee shall from time to time approve.
              The form of Incentive Stock Option Agreement attached hereto as
              Exhibit
              A
              and the three forms of a Nonstatutory Stock Option Agreement for
              employees, for directors and for consultants, attached hereto as
              Exhibit
              B-1, Exhibit
              B-2
              and
              Exhibit B-3,
              respectively, shall be deemed to be approved by the Board. Option
              agreements need not be identical, and in each case may include such
              provisions as the Board or Committee may determine, but all such
              agreements shall be subject to and limited by the following terms and
              conditions:

          

    

    	(a)  	
            Number
              of Shares:
              Each Option shall state the number of shares to which it
              pertains.

          

    

    	(b)  	
            Exercise
              Price:
              Each Option shall state the exercise price, which shall be determined
              as
              follows:

          

    

    	(i)  	
            Any
              Incentive Stock Option granted to a person who at the time the Option
              is
              granted 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 or value of all classes of stock of the Company ("Ten
              Percent Holder")
              shall have an exercise price of no less than 110% of the Fair Market
              Value
              of the Stock as of the date of grant; and

          

    

    	(ii)  	
            Incentive
              Stock Options granted to a person who at the time the Option is granted
              is
              not a Ten Percent Holder shall have an exercise price of no less than
              100%
              of the Fair Market Value of the Stock as of the date of
              grant.

          

     

    For
      the
      purposes of this Section 5(b), the Fair Market Value shall be as determined
      by
      the Board in good faith, which determination shall be conclusive and binding;
      provided however, that if there is a public market for such Stock, the Fair
      Market Value per share shall be the average of the bid and asked prices (or
      the
      closing price if such stock is listed on the NASDAQ National Market System
      or
      Small Cap Issue Market) on the date of grant of the Option, or if listed on
      a
      stock exchange, the closing price on such exchange on such date of
      grant.

    

    	(c)  	
            Medium
              and Time of Payment:
              The exercise price shall become immediately due upon exercise of the
              Option and shall be paid in cash or check made payable to the Company.
              Should the Company's outstanding Stock be registered under Section
              12(g)
              of the Exchange Act at the time the Option is exercised, then the exercise
              price may also be paid as follows:

          

     

    	(i)  	
            in
              shares of Stock held by the Optionee for the requisite period necessary
              to
              avoid a charge to the Company's earnings for financial reporting purposes
              and valued at Fair Market Value on the exercise date,
              or

          

    

    	(ii)  	
            through
              a special sale and remittance procedure pursuant to which the Optionee
              shall concurrently provide irrevocable written instructions (a) to
              a
              Company designated brokerage firm to effect the immediate sale of the
              purchased shares and remit to the Company, out of the sale proceeds
              available on the settlement date, sufficient funds to cover the aggregate
              exercise price payable for the purchased shares plus all applicable
              Federal, state and local income and employment taxes required to be
              withheld by the Company by reason of such purchase and (b) to the Company
              to deliver the certificates for the purchased shares directly to such
              brokerage firm in order to complete the sale
              transaction.

          

    

    At
      the
      discretion of the Board, exercisable either at the time of Option grant or
      of
      Option exercise, the exercise price may also be paid (i) by Optionee's delivery
      of a promissory note in form and substance satisfactory to the Company and
      permissible under applicable securities rules and bearing interest at a rate
      determined by the Board in its sole discretion, but in no event less than the
      minimum rate of interest required to avoid the imputation of compensation income
      to the Optionee under the Federal tax laws, or (ii) in such other form of
      consideration permitted by the State of Delaware corporations law as may be
      acceptable to the Board.

    

    	(d)  	
            Term
              and Exercise of Options:
              Any Option granted to an employee of the Company shall become exercisable
              over a period of no longer than five (5) years, and no less than twenty
              percent (20%) of the shares covered thereby shall become exercisable
              annually. No Option shall be exercisable, in whole or in part, prior
              to
              one (1) year from the date it is granted unless the Board shall
              specifically determine otherwise, as provided herein. In no event shall
              any Option be exercisable after the expiration of ten (10) years from
              the
              date it is granted, and no Incentive Stock Option granted to a Ten
              Percent
              Holder shall, by its terms, be exercisable after the expiration of
              five
              (5) years from the date of the Option. Unless otherwise specified by
              the
              Board or the Committee in the resolution authorizing such Option, the
              date
              of grant of an Option shall be deemed to be the date upon which the
              Board
              or the Committee authorizes the granting of such Option.
              

          

    

    Each
      Option shall be exercisable to the nearest whole share, in installments or
      otherwise, as the respective Option agreements may provide. During the lifetime
      of an Optionee, the Option shall be exercisable only by the Optionee and shall
      not be assignable or transferable by the Optionee, and no other person shall
      acquire any rights therein. To the extent not exercised, installments (if more
      than one) shall accumulate, but shall be exercisable, in whole or in part,
      only
      during the period for exercise as stated in the Option agreement, whether or
      not
      other installments are then exercisable.

    

    	(e)  	
            Termination
              of Status as Employee, Consultant or Director:
              If
              Optionee's status as an employee shall terminate for any reason other
              than
              Optionee's disability or death, then Optionee (or if the Optionee shall
              die after such termination, but prior to exercise, Optionee's personal
              representative or the person entitled to succeed to the Option) shall
              have
              the right to exercise the portions of any of Optionee's Incentive Stock
              Options which were exercisable as of the date of such termination,
              in
              whole or in part, not less than 30 days nor more than three (3) months
              after such termination (or, in the event of "termination
              for good cause"
              as that term is defined in Delaware case law related thereto, or by
              the
              terms of the Plan or the Option Agreement or an employment agreement,
              the
              Option shall automatically terminate as of the termination of employment
              as to all shares covered by the Option). 

          

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    With
      respect to Nonstatutory Options granted to employees, directors or consultants,
      the Board may specify such period for exercise, not less than 30 days (except
      that in the case of "termination
      for cause"
      or
      removal of a director, the Option shall automatically terminate as of the
      termination of employment or services as to shares covered by the Option,
      following termination of employment or services as the Board deems reasonable
      and appropriate. The Option may be exercised only with respect to installments
      that the Optionee could have exercised at the date of termination of employment
      or services. Nothing contained herein or in any Option granted pursuant hereto
      shall be construed to affect or restrict in any way the right of the Company
      to
      terminate the employment or services of an Optionee with or without
      cause.

    

    	(f)  	
            Disability
              of Optionee:
              If
              an Optionee is disabled (within the meaning of Section 22(e)(3) of
              the
              Code) at the time of termination, the three (3) month period set forth
              in
              Section 5(e) shall be a period, as determined by the Board and set
              forth
              in the Option, of not less than six months nor more than one year after
              such termination. 

          

    

    	(g)  	
            Death
              of Optionee:
              If
              an Optionee dies while employed by, engaged as a consultant to, or
              serving
              as a Director of the Company, the portion of such Optionee's Option
              which
              was exercisable at the date of death may be exercised, in whole or
              in
              part, by the estate of the decedent or by a person succeeding to the
              right
              to exercise such Option at any time within (i) a period, as determined
              by
              the Board and set forth in the Option, of not less than six (6) months
              nor
              more than one (1) year after Optionee's death, which period shall not
              be
              more, in the case of a Nonstatutory Option, than the period for exercise
              following termination of employment or services, or (ii) during the
              remaining term of the Option, whichever is the lesser. The Option may
              be
              so exercised only with respect to installments exercisable at the time
              of
              Optionee's death and not previously exercised by the
              Optionee.

          

    

    	(h)  	
            Nontransferability
              of Option:
              No
              Option shall be transferable by the Optionee, except by will or by
              the
              laws of descent and distribution.

          

    

    	(i)  	
            Recapitalization:
              Subject to any required action of shareholders, the number of shares
              of
              Stock covered by each outstanding Option, and the exercise price per
              share
              thereof set forth in each such Option, shall be proportionately adjusted
              for any increase or decrease in the number of issued shares of Stock
              of
              the Company resulting from a stock split, stock dividend, combination,
              subdivision or reclassification of shares, or the payment of a stock
              dividend, or any other increase or decrease in the number of such shares
              affected without receipt of consideration by the Company; provided,
              however, the conversion of any convertible securities of the Company
              shall
              not be deemed to have been "effected
              without receipt of consideration"
              by the Company.

          

    

    In
      the
      event of a proposed dissolution or liquidation of the Company, a merger or
      consolidation in which the Company is not the surviving entity, or a sale of
      all
      or substantially all of the assets or capital stock of the Company
      (collectively, a "Reorganization"),
      unless otherwise provided by the Board, this Option shall terminate immediately
      prior to such date as is determined by the Board, which date shall be no later
      than the consummation of such Reorganization. In such event, if the entity
      which
      shall be the surviving entity does not tender to Optionee an offer, for which
      it
      has no obligation to do so, to substitute for any unexercised Option a stock
      option or capital stock of such surviving of such surviving entity, as
      applicable, which on an equitable basis shall provide the Optionee with
      substantially the same economic benefit as such unexercised Option, then the
      Board may grant to such Optionee, in its sole and absolute discretion and
      without obligation, the right for a period commencing thirty (30) days prior
      to
      and ending immediately prior to the date determined by the Board pursuant hereto
      for termination of the Option or during the remaining term of the Option,
      whichever is the lesser, to exercise any unexpired Option or Options without
      regard to the installment provisions of Paragraph 6(d) of the Plan; provided,
      that any such right granted shall be granted to all Optionees not receiving
      an
      offer to receive substitute options on a consistent basis, and provided further,
      that any such exercise shall be subject to the consummation of such
      Reorganization.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    Subject
      to any required action of shareholders, if the Company shall be the surviving
      entity in any merger or consolidation, each outstanding Option thereafter shall
      pertain to and apply to the securities to which a holder of shares of Stock
      equal to the shares subject to the Option would have been entitled by reason
      of
      such merger or consolidation.

    

    In
      the
      event of a change in the Stock of the Company as presently constituted, which
      is
      limited to a change of all of its authorized shares without par value into
      the
      same number of shares with a par value, the shares resulting from any such
      change shall be deemed to be the Stock within the meaning of the
      Plan.

    

    To
      the
      extent that the foregoing adjustments relate to stock or securities of the
      Company, such adjustments shall be made by the Board, whose determination in
      that respect shall be final, binding and conclusive. Except as expressly
      provided in this Section 5(i), the Optionee shall have no rights by reason
      of
      any subdivision or consolidation of shares of stock of any class or the payment
      of any stock dividend or any other increase or decrease in the number of shares
      of stock of any class, and the number or price of shares of Stock subject to
      any
      Option shall not be affected by, and no adjustment shall be made by reason
      of,
      any dissolution, liquidation, merger, consolidation or sale of assets or capital
      stock, or any issue by the Company of shares of stock of any class or securities
      convertible into shares of stock of any class.

    

    The
      Grant
      of an Option pursuant to the Plan shall not affect in any way the right or
      power
      of the Company to make any adjustments, reclassifications, reorganizations
      or
      changes in its capital or business structure or to merge, consolidate, dissolve,
      or liquidate or to sell or transfer all or any part of its business or
      assets.

    

    	(j)  	
            Rights
              as a Shareholder:
              An
              Optionee shall have no rights as a shareholder with respect to any
              shares
              covered by an Option until the effective date of the issuance of the
              shares following exercise of such Option by Optionee. No adjustment
              shall
              be made for dividends (ordinary or extraordinary, whether in cash,
              securities or other property) or distributions or other rights for
              which
              the record date is prior to the date such stock certificate is issued,
              except as expressly provided in Section 5(i) hereof.
              

          

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    	(k)  	
            Modification,
              Acceleration, Extension, and Renewal of Options:
              Subject to the terms and conditions and within the limitations of the
              Plan, the Board may modify an Option, or, once an Option is exercisable,
              accelerate the rate at which it may be exercised, and may extend or
              renew
              outstanding Options granted under the Plan or accept the surrender
              of
              outstanding Options (to the extent not theretofore exercised) and
              authorize the granting of new Options in substitution for such Options,
              provided such action is permissible under Section 422 of the Code and
              applicable state securities rules. Notwithstanding the provisions of
              this
              Section 5(k), however, no modification of an Option shall, without
              the
              consent of the Optionee, alter to the Optionee's detriment or impair
              any
              rights or obligations under any Option theretofore granted under the
              Plan.

          

    

    	(l)  	
            Exercise
              Before Exercise Date:
              At
              the discretion of the Board, the Option may, but need not, include
              a
              provision whereby the Optionee may elect to exercise all or any portion
              of
              the Option prior to the stated exercise date of the Option or any
              installment thereof. Any shares so purchased prior to the stated exercise
              date shall be subject to repurchase by the Company upon termination
              of
              Optionee's employment as contemplated by Section 5(n) hereof prior
              to the
              exercise date stated in the Option and such other restrictions and
              conditions as the Board or Committee may deem
              advisable.

          

    

    	(m)  	
            Other
              Provisions:
              The Option agreements authorized under the Plan shall contain such
              other
              provisions, including, without limitation, restrictions upon the exercise
              of the Options, as the Board or the Committee shall deem advisable.
              Shares
              shall not be issued pursuant to the exercise of an Option, if the exercise
              of such Option or the issuance of shares thereunder would violate,
              in the
              opinion of legal counsel for the Company, the provisions of any applicable
              law or the rules or regulations of any applicable governmental or
              administrative agency or body, such as the Code, the Securities Act,
              the
              Exchange Act, applicable state securities rules, Delaware corporation
              law,
              and the rules promulgated under the foregoing or the rules and regulations
              of any exchange upon which the shares of the Company are listed. Without
              limiting the generality of the foregoing, the exercise of each Option
              shall be subject to the condition that if at any time the Company shall
              determine that (i) the satisfaction of withholding tax or other similar
              liabilities, or (ii) the listing, registration or qualification of
              any
              shares covered by such exercise upon any securities exchange or under
              any
              state or federal law, or (iii) the consent or approval of any regulatory
              body, or (iv) the perfection of any exemption from any such withholding,
              listing, registration, qualification, consent or approval is necessary
              or
              desirable in connection with such exercise or the issuance of shares
              thereunder, then in any such event, such exercise shall not be effective
              unless such withholding, listing registration, qualification, consent,
              approval or exemption shall have been effected, obtained or perfected
              free
              of any conditions not acceptable to the
              Company.

          

    

    	(n)  	
            Repurchase
              Agreement:
              The Board may, in its discretion, require as a condition to the Grant
              of
              an Option hereunder, that an Optionee execute an agreement with the
              Company, in form and substance satisfactory to the Board in its discretion
              ("Repurchase
              Agreement"),
              (i) restricting the Optionee's right to transfer shares purchased under
              such Option without first offering such shares to the Company or another
              shareholder of the Company upon the same terms and conditions as provided
              therein; and (ii) providing that upon termination of Optionee's employment
              with the Company, for any reason, the Company (or another shareholder
              of
              the Company, as provided in the Repurchase Agreement) shall have the
              right
              at its discretion (or the discretion of such other shareholders) to
              purchase and/or redeem all such shares owned by the Optionee on the
              date
              of termination of his or her employment at a price equal to: (A) the
              fair
              value of such shares as of such date of termination; or (B) if such
              repurchase right lapses at 20% of the number of shares per year, the
              original purchase price of such shares, and upon terms of payment
              permissible under applicable state securities rules; provided that
              in the
              case of Options or Stock Awards granted to officers, directors,
              consultants or affiliates of the Company, such repurchase provisions
              may
              be subject to additional or greater restrictions as determined by the
              Board or Committee.

          

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    	6.  	
            Stock
              Awards and Restricted Stock Purchase
              Offers.

          

    

    	(a)  	
            Types
              of Grants.

          

    

    	(i)  	
            Stock
              Award.
              All or part of any Stock Award under the Plan may be subject to conditions
              established by the Board or the Committee, and set forth in the Stock
              Award Agreement, which may include, but are not limited to, continuous
              service with the Company, achievement of specific business objectives,
              increases in specified indices, attaining growth rates and other
              comparable measurements of Company performance. Such Awards may be
              based
              on Fair Market Value or other specified valuation. All Stock Awards
              will
              be made pursuant to the execution of a Stock Award Agreement substantially
              in the form attached hereto as Exhibit
              C.

          

    

    	(ii)  	
            Restricted
              Stock Purchase Offer.
              A
              Grant of a Restricted Stock Purchase Offer under the Plan shall be
              subject
              to such (i) vesting contingencies related to the Participant's continued
              association with the Company for a specified time and (ii) other specified
              conditions as the Board or Committee shall determine, in their sole
              discretion, consistent with the provisions of the Plan. All Restricted
              Stock Purchase Offers shall be made pursuant to a Restricted Stock
              Purchase Offer substantially in the form attached hereto as Exhibit
              D.

          

    

    	(b)  	
            Conditions
              and Restrictions.
              Shares of Stock which Participants may receive as a Stock Award under
              a
              Stock Award Agreement or Restricted Stock Purchase Offer under a
              Restricted Stock Purchase Offer may include such restrictions as the
              Board
              or Committee, as applicable, shall determine, including restrictions
              on
              transfer, repurchase rights, right of first refusal, and forfeiture
              provisions. When transfer of Stock is so restricted or subject to
              forfeiture provisions it is referred to as "Restricted
              Stock".
              Further, with Board or Committee approval, Stock Awards or Restricted
              Stock Purchase Offers may be deferred, either in the form of installments
              or a future lump sum distribution. The Board or Committee may permit
              selected Participants to elect to defer distributions of Stock Awards
              or
              Restricted Stock Purchase Offers in accordance with procedures established
              by the Board or Committee to assure that such deferrals comply with
              applicable requirements of the Code including, at the choice of
              Participants, the capability to make further deferrals for distribution
              after retirement. Any deferred distribution, whether elected by the
              Participant or specified by the Stock Award Agreement, Restricted Stock
              Purchase Offers or by the Board or Committee, may require the payment
              be
              forfeited in accordance with the provisions of Section 6(c). Dividends
              or
              dividend equivalent rights may be extended to and made part of any
              Stock
              Award or Restricted Stock Purchase Offers denominated in Stock or units
              of
              Stock, subject to such terms, conditions and restrictions as the Board
              or
              Committee may establish.

          

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    	(c)  	
            Cancellation
              and Rescission of Grants.
              Unless the Stock Award Agreement or Restricted Stock Purchase Offer
              specifies otherwise, the Board or Committee, as applicable, may cancel
              any
              unexpired, unpaid, or deferred Grants at any time if the Participant
              is
              not in compliance with all other applicable provisions of the Stock
              Award
              Agreement or Restricted Stock Purchase Offer, the Plan and with the
              following conditions:

          

    

    	(i)  	
            A
              Participant shall not render services for any organization or engage
              directly or indirectly in any business which, in the judgment of the
              chief
              executive officer of the Company or other senior officer designated
              by the
              Board or Committee, is or becomes competitive with the Company, or
              which
              organization or business, or the rendering of services to such
              organization or business, is or becomes otherwise prejudicial to or
              in
              conflict with the interests of the Company. For Participants whose
              employment has terminated, the judgment of the chief executive officer
              shall be based on the Participant's position and responsibilities while
              employed by the Company, the Participant's post-employment
              responsibilities and position with the other organization or business,
              the
              extent of past, current and potential competition or conflict between
              the
              Company and the other organization or business, the effect on the
              Company's customers, suppliers and competitors and such other
              considerations as are deemed relevant given the applicable facts and
              circumstances. A Participant who has retired shall be free, however,
              to
              purchase as an investment or otherwise, stock or other securities of
              such
              organization or business so long as they are listed upon a recognized
              securities exchange or traded over-the-counter, and such investment
              does
              not represent a substantial investment to the Participant or a greater
              than ten percent (10%) equity interest in the organization or
              business.

          

    

    	(ii)  	
            A
              Participant shall not, without prior written authorization from the
              Company, disclose to anyone outside the Company, or use in other than
              the
              Company's business, any confidential information or material, as defined
              in the Company's Proprietary Information and Invention Agreement or
              similar agreement regarding confidential information and intellectual
              property, relating to the business of the Company, acquired by the
              Participant either during or after employment with the Company.
              

          

    

    	(iii)  	
            A
              Participant, pursuant to the Company's Proprietary Information and
              Invention Agreement, shall disclose promptly and assign to the Company
              all
              right, title and interest in any invention or idea, patentable or not,
              made or conceived by the Participant during employment by the Company,
              relating in any manner to the actual or anticipated business, research
              or
              development work of the Company and shall do anything reasonably necessary
              to enable the Company to secure a patent where appropriate in the United
              States and in foreign countries.

          

    

    	(iv)  	
            Upon
              exercise, payment or delivery pursuant to a Grant, the Participant
              shall
              certify on a form acceptable to the Committee that he or she is in
              compliance with the terms and conditions of the Plan. Failure to comply

              with all of the provisions of this Section 6(c) prior to, or during
              the
              six months after, any exercise, payment or delivery pursuant to a Grant
              shall cause such exercise, payment or delivery to be rescinded. The
              Company shall notify the Participant in writing of any such rescission
              within two years after such exercise, payment or delivery. Within ten
              days
              after receiving such a notice from the Company, the Participant shall
              pay
              to the Company the amount of any gain realized or payment received
              as a
              result of the rescinded exercise, payment or delivery pursuant to a
              Grant.
              Such payment shall be made either in cash or by returning to the Company
              the number of shares of Stock that the Participant received in connection
              with the rescinded exercise, payment or
              delivery.

          

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    	(d)  	
            Nonassignability.

          

    

    	(i)  	
            Except
              pursuant to Section 6(e)(iii) and except as set forth in Section 6(d)(ii),
              no Grant or any other benefit under the Plan shall be assignable or
              transferable, or payable to or exercisable by, anyone other than the
              Participant to whom it was granted.

          

    

    	(ii)  	
            Where
              a Participant terminates employment and retains a Grant pursuant to
              Section 6(e)(ii) in order to assume a position with a governmental,
              charitable or educational institution, the Board or Committee, in its
              discretion and to the extent permitted by law, may authorize a third
              party
              (including but not limited to the trustee of a "blind" trust), acceptable
              to the applicable governmental or institutional authorities, the
              Participant and the Board or Committee, to act on behalf of the
              Participant with regard to such Awards.

          

    

    	(e)  	
            Termination
              of Employment.
              If
              the employment or service to the Company of a Participant terminates,
              other than pursuant to any of the following provisions under this Section
              6(e), all unexercised, deferred and unpaid Stock Awards or Restricted
              Stock Purchase Offers shall be cancelled immediately, unless the Stock
              Award Agreement or Restricted Stock Purchase Offer provides otherwise:
              

          

    

    	(i)  	
            Retirement
              Under a Company Retirement Plan.
              When a Participant's employment terminates as a result of retirement
              in
              accordance with the terms of a Company retirement plan, the Board or
              Committee may permit Stock Awards or Restricted Stock Purchase Offers
              to
              continue in effect beyond the date of retirement in accordance with
              the
              applicable Grant Agreement and the exercisability and vesting of any
              such
              Grants may be accelerated.

          

    

    	(ii)  	
            Rights
              in the Best Interests of the Company.
              When a Participant resigns from the Company and, in the judgment of
              the
              Board or Committee, the acceleration and/or continuation of outstanding
              Stock Awards or Restricted Stock Purchase Offers would be in the best
              interests of the Company, the Board or Committee may (i) authorize,
              where
              appropriate, the acceleration and/or continuation of all or any part
              of
              Grants issued prior to such termination and (ii) permit the exercise,
              vesting and payment of such Grants for such period as may be set forth
              in
              the applicable Grant Agreement, subject to earlier cancellation pursuant
              to Section 9 or at such time as the Board or Committee shall deem the
              continuation of all or any part of the Participant's Grants are not
              in the
              Company's best interest.

          

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    	(iii)  	
            Death
              or Disability of a Participant. 

          

    

    	(1)  	
            In
              the event of a Participant's death, the Participant's estate or
              beneficiaries shall have a period up to the expiration date specified
              in
              the Grant Agreement within which to receive or exercise any outstanding
              Grant held by the Participant under such terms as may be specified
              in the
              applicable Grant Agreement. Rights to any such outstanding Grants shall
              pass by will or the laws of descent and distribution in the following
              order: (a) to beneficiaries so designated by the Participant; if none,
              then (b) to a legal representative of the Participant; if none, then
              (c)
              to the persons entitled thereto as determined by a court of competent
              jurisdiction. Grants so passing shall be made at such times and in
              such
              manner as if the Participant were living.

          

    

    	(2)  	
            In
              the event a Participant is deemed by the Board or Committee to be unable
              to perform his or her usual duties by reason of mental disorder or
              medical
              condition which does not result from facts which would be grounds for
              termination for cause, Grants and rights to any such Grants may be
              paid to
              or exercised by the Participant, if legally competent, or a committee
              or
              other legally designated guardian or representative if the Participant
              is
              legally incompetent by virtue of such
              disability.

          

    

    	(3)  	
            After
              the death or disability of a Participant, the Board or Committee may
              in
              its sole discretion at any time (1) terminate restrictions in Grant
              Agreements; (2) accelerate any or all installments and rights; and
              (3)
              instruct the Company to pay the total of any accelerated payments in
              a
              lump sum to the Participant, the Participant's estate, beneficiaries
              or
              representative; notwithstanding that, in the absence of such termination
              of restrictions or acceleration of payments, any or all of the payments
              due under the Grant might ultimately have become payable to other
              beneficiaries.

          

    

    	(4)  	
            In
              the event of uncertainty as to interpretation of or controversies
              concerning this Section 6, the determinations of the Board or Committee,
              as applicable, shall be binding and
              conclusive.

          

    

    	7.  	
            Investment
              Intent. All Grants under the Plan are intended to be exempt from
              registration under the Securities Act provided by Rule 701 thereunder.
              Unless and until the granting of Options or sale and issuance of Stock
              subject to the Plan are registered under the Securities Act or shall
              be
              exempt pursuant to the rules promulgated thereunder, each Grant under
              the
              Plan shall provide that the purchases or other acquisitions of Stock
              thereunder shall be for investment purposes and not with a view to,
              or for
              resale in connection with, any distribution thereof. Further, unless
              the
              issuance and sale of the Stock have been registered under the Securities
              Act, each Grant shall provide that no shares shall be purchased upon
              the
              exercise of the rights under such Grant unless and until (i) all then
              applicable requirements of state and federal laws and regulatory agencies
              shall have been fully complied with to the satisfaction of the Company
              and
              its counsel, and (ii) if requested to do so by the Company, the person
              exercising the rights under the Grant shall (i) give written assurances
              as
              to knowledge and experience of such person (or a representative employed
              by such person) in financial and business matters and the ability of
              such
              person (or representative) to evaluate the merits and risks of exercising
              the Option, and (ii) execute and deliver to the Company a letter of
              investment intent and/or such other form related to applicable exemptions
              from registration, all in such form and substance as the Company may
              require. If shares are issued upon exercise of any rights under a Grant
              without registration under the Securities Act, subsequent registration
              of
              such shares shall relieve the purchaser thereof of any investment
              restrictions or representations made upon the exercise of such
              rights.

          

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    	8.  	
            Amendment,
              Modification, Suspension or Discontinuance of the Plan. The Board may,
              insofar as permitted by law, from time to time, with respect to any
              shares
              at the time not subject to outstanding Grants, suspend or terminate
              the
              Plan or revise or amend it in any respect whatsoever, except that without
              the approval of the shareholders of the Company, no such revision or
              amendment shall (i) increase the number of shares subject to the Plan,
              (ii) decrease the price at which Grants may be granted, (iii) materially
              increase the benefits to Participants, or (iv) change the class of
              persons
              eligible to receive Grants under the Plan; provided, however, no such
              action shall alter or impair the rights and obligations under any Option,
              or Stock Award, or Restricted Stock Purchase Offer outstanding as of
              the
              date thereof without the written consent of the Participant thereunder.
              No
              Grant may be issued while the Plan is suspended or after it is terminated,
              but the rights and obligations under any Grant issued while the Plan
              is in
              effect shall not be impaired by suspension or termination of the
              Plan.

          

    

    In
      the
      event of any change in the outstanding Stock by reason of a stock split, stock
      dividend, combination or reclassification of shares, recapitalization, merger,
      or similar event, the Board or the Committee may adjust proportionally (a)
      the
      number of shares of Stock (i) reserved under the Plan, (ii) available for
      Incentive Stock Options and Nonstatutory Options and (iii) covered by
      outstanding Stock Awards or Restricted Stock Purchase Offers; (b) the Stock
      prices related to outstanding Grants; and (c) the appropriate Fair Market Value
      and other price determinations for such Grants. In the event of any other change
      affecting the Stock or any distribution (other than normal cash dividends)
      to
      holders of Stock, such adjustments as may be deemed equitable by the Board
      or
      the Committee, including adjustments to avoid fractional shares, shall be made
      to give proper effect to such event. In the event of a corporate merger,
      consolidation, acquisition of property or stock, separation, reorganization
      or
      liquidation, the Board or the Committee shall be authorized to issue or assume
      stock options, whether or not in a transaction to which Section 424(a) of the
      Code applies, and other Grants by means of substitution of new Grant Agreements
      for previously issued Grants or an assumption of previously issued
      Grants.

    

    	9.  	
            Tax
              Withholding. The Company shall have the right to deduct applicable
              taxes
              from any Grant payment and withhold, at the time of delivery or exercise
              of Options, Stock Awards or Restricted Stock Purchase Offers or vesting
              of
              shares under such Grants, an appropriate number of shares for payment
              of
              taxes required by law or to take such other action as may be necessary
              in
              the opinion of the Company to satisfy all obligations for withholding
              of
              such taxes. If Stock is used to satisfy tax withholding, such stock
              shall
              be valued based on the Fair Market Value when the tax withholding is
              required to be made. 

          

     

    	10.  	
            Availability
              of Information. During the term of the Plan and any additional period
              during which a Grant granted pursuant to the Plan shall be exercisable,
              the Company shall make available, not later than one hundred and twenty
              (120) days following the close of each of its fiscal years, such financial
              and other information regarding the Company as is required by the bylaws
              of the Company and applicable law to be furnished in an annual report
              to
              the shareholders of the Company. 

          

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    	11.  	
            Notice.
              Any written notice to the Company required by any of the provisions
              of the
              Plan shall be addressed to the chief personnel officer or to the chief
              executive officer of the Company, and shall become effective when it
              is
              received by the office of the chief personnel officer or the chief
              executive officer. 

          

    

    	12.  	
            Indemnification
              of Board. In addition to such other rights or indemnifications as they
              may
              have as directors or otherwise, and to the extent allowed by applicable
              law, the members of the Board and the Committee shall be indemnified
              by
              the Company against the reasonable expenses, including attorneys' fees,
              actually and necessarily incurred in connection with the defense of
              any
              claim, action, suit or proceeding, or in connection with any appeal
              thereof, to which they or any of them may be a party by reason of any
              action taken, or failure to act, under or in connection with the Plan
              or
              any Grant granted thereunder, and against all amounts paid by them
              in
              settlement thereof (provided such settlement is approved by independent
              legal counsel selected by the Company) or paid by them in satisfaction
              of
              a judgment in any such claim, action, suit or proceeding, except in
              any
              case in relation to matters as to which it shall be adjudged in such
              claim, action, suit or proceeding that such Board or Committee member
              is
              liable for negligence or misconduct in the performance of his or her
              duties; provided that within sixty (60) days after institution of any
              such
              action, suit or Board proceeding the member involved shall offer the
              Company, in writing, the opportunity, at its own expense, to handle
              and
              defend the same. 

          

     

    	13.  	
            Governing
              Law. The Plan and all determinations made and actions taken pursuant
              hereto, to the extent not otherwise governed by the Code or the securities
              laws of the United States, shall be governed by the law of the State
              of
              Delaware and construed accordingly. 

          

    

    	14.  	
            Effective
              and Termination Dates. The Plan shall become effective on the date
              it is
              approved by the holders of a majority of the shares of Stock then
              outstanding. The Plan shall terminate ten years later, subject to earlier
              termination by the Board pursuant to Section 8.

          

    

    The
      foregoing 2007
      INCENTIVE STOCK PLAN
      (consisting of 14 pages, including this page) was duly adopted and approved
      by
      the Board of Directors on February 12, 2007.

    

    
      	 	
              IGIA,
                INC.,

              a
                Delaware corporation

               

               

              By:
                 /s/
                Avi
                Sivan                     
                

              Avi
                Sivan

              Its: Chief
                Executive Officer

            

    

    

    
      
         

      

      
        13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]