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                                                                    EXHIBIT 10.2

                              AMENDED AND RESTATED
                             1999 STOCK OPTION PLAN
                                       OF
                             BOFI.COM HOLDING, INC.

         1. PURPOSES OF PLAN

            The purposes of the 1999 Stock Option Plan ("PLAN") of BofI.com
Holding, Inc., a Delaware corporation (the "COMPANY"), are to:

            (a) Encourage selected employees and directors to improve operations
and increase profits of the Company;

            (b) Encourage selected employees and directors to accept or continue
employment or association with the Company or its Affiliates; and

            (c) Increase the interest of selected employees and directors in the
Company's welfare through participation in the growth in value of the common
stock, par value $0.01 per share, of the Company (the "COMMON STOCK").

            Options granted under this Plan ("OPTIONS") may be "incentive stock
options" ("ISOS") intended to satisfy the requirements of Section 422 of the
Internal Revenue Code of 1986, as amended (the "CODE"), or "nonqualified
options" ("NQOS").

         2. ELIGIBLE PERSONS

            Every person who at the date of grant of an Option is an employee of
the Company or of any Affiliate (as defined below) of the Company is eligible to
receive NQOs or ISOs under this Plan. Every person who at the date of grant is a
nonemployee director of the Company or any Affiliate (as defined below) of the
Company is eligible to receive NQOs under this Plan. The term "AFFILIATE" as
used in this Plan means a parent or subsidiary corporation as defined in the
applicable provisions (currently Sections 424(e) and (f), respectively) of the
Code. The term "EMPLOYEE" includes an officer or director who is an employee of
the Company.

         3. STOCK SUBJECT TO THIS PLAN

            (a) SHARE RESERVE. Subject to the provisions of Section 6.1.1
relating to adjustments upon changes in Common Stock and subsection (b), below,
the Common Stock that may be issued pursuant to Options shall not exceed in
aggregate 553,875 shares of Common Stock, which amount reflects the amount of
shares of Common Stock originally reserved for issuance under this Plan
(211,000), adjusted in accordance with Section 6.1.1 for two stock splits
effected by the Company in 2001.

            (b) EVERGREEN SHARE RESERVE INCREASE. Notwithstanding Section 3(a)
hereof and subject to the provisions of Section 6.1.1 relating to adjustments
upon changes

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in Common Stock, for a period of eight (8) years, commencing with
the annual meeting of stockholders in 2001, the aggregate number of shares of
Common Stock that is available for issuance under the Plan on any date shall
automatically be increased to that number of shares equal to the lesser of: (1)
fifteen percent (15%) of the Shares Outstanding; or (2) such lesser number of
shares as determined by the Board; provided, however, that in no event shall the
number of shares of Common Stock which may be issued under this Plan exceed
3,000,000 shares. As used herein, "Shares Outstanding" shall mean the sum of:
(i) the number of issued and outstanding shares of Common Stock of the Company
on the date Options are issued, plus (ii) the number of shares of Common Stock
of the Company into which any convertible securities of the Company (whether
debt or equity) ("Convertible Securities") may be converted ("Conversion
Shares"), computed in accordance with the procedures described below. When
computing the number of Conversion Shares (a) Conversion Shares shall be counted
as Shares Outstanding as of the date of issuance of the underlying Convertible
Securities; (b) assume that the Convertible Securities are converted into
Conversion Shares at the price per share equal to the weighted average
conversion price in accordance with the terms of the Convertible Securities,
regardless of the actual conversion experience (for example, if the Convertible
Securities may be converted at $10 per share for three years, $15 per share for
two years and $20 per share for one year, assume that all Conversion Shares are
converted at $13.33 per share conversion rate [[(3 years "times" $15] + (2 years
"times" $15) + (1 year "times" $20)]/"divided by" 6 years]); and (c) assume that
Conversion Shares are issued in perpetuity, regardless of any expiration of the
Convertible Securities, any redemption or repurchase of such securities and
regardless of whether any such Convertible Securities are converted.

            (c) REVERSION OF SHARES TO THE SHARE RESERVE. If any Option shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Option shall revert to and again become available for issuance under the
Plan.

            (d) SOURCE OF SHARES. The shares of Common Stock subject to the Plan
may be unissued shares or reacquired shares bought on the market or otherwise.

         4. ADMINISTRATION

            4.1 GENERAL. This Plan shall be administered by the Board of
Directors of the Company (the "BOARD") or, either in its entirety or only
insofar as required pursuant to Section 4.2 hereof, by a committee (the
"COMMITTEE") of at least two Board members to which administration of this Plan,
or of part of this Plan, is delegated (in either case, the "ADMINISTRATOR"). If
the Committee is comprised of two Board members, both members comprising the
Committee shall be "non-employee directors" as that term is defined in Rule
16b-3 promulgated by the Securities and Exchange Commission ("RULE 16B-3"), or
any successor rule thereto.

            4.2 PUBLIC COMPANY. From and after such time as the Company
registers a class of equity securities under Section 12 of the Securities
Exchange Act of

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1934 (the "EXCHANGE ACT"), it is intended that this Plan shall be administered
in accordance with the disinterested administration requirements of Rule 16b-3.

            4.3 AUTHORITY OF ADMINISTRATOR. Subject to the other provisions of
this Plan, the Administrator shall have the authority, in its discretion, to
grant Options under the Plan and to determine the persons (each an "OPTIONEE")
to whom Options are to be granted. The Administrator shall have the authority
(subject to the provisions of this Plan) to establish such rules and regulations
as it deems appropriate for the proper administration of this Plan and to make
such determinations and interpretations concerning this Plan and Options granted
under this Plan as it deems necessary or advisable. The Administrator shall have
the authority to authorize any person to execute on behalf of the Company any
instrument evidencing the grant of an Option. The Administrator may delegate
nondiscretionary administrative duties to such employees of the Company as it
deems proper.

            4.4 INTERPRETATION BY ADMINISTRATOR. All questions of
interpretation, implementation, and application of this Plan shall be determined
by the Administrator. Such determinations shall be final and binding on all
persons.

            4.5 RULE 16B-3. With respect to persons subject to Section 16 of the
Exchange Act, if any, transactions under this Plan are intended to comply with
the applicable conditions of Rule 16b-3, or any successor rule thereto. To the
extent any provision of this Plan or action by the Administrator fails to so
comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Administrator. Notwithstanding the above, it shall be
the responsibility of such persons, not of the Company or the Administrator, to
comply with the requirements of Section 16 of the Exchange Act; and neither the
Company nor the Administrator shall be liable if this Plan or any transaction
under this Plan fails to comply with the applicable conditions of Rule 16b-3 or
any successor rule thereto, or if any such person incurs any liability under
Section 16 of the Exchange Act.

         5. GRANTING OF OPTIONS; OPTION AGREEMENT

            5.1 TERMINATION OF PLAN. No options shall be granted under this Plan
after ten years from the date of adoption of this Plan by the Board.

            5.2 STOCK OPTION AGREEMENT. Each Option shall be evidenced by a
written stock option agreement (the "OPTION AGREEMENT"), in form satisfactory to
the Company, executed by the Company and the person to whom such Option is
granted; provided, however, that the failure by the Company, the Optionee, or
both, to execute the Option Agreement shall not invalidate the granting of an
Option, although the exercise of each option shall be subject to Section 6.1.3.

            5.3 TYPE OF OPTION. The Option Agreement shall specify whether each
Option it evidences is an NQO or an ISO.

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         6. TERMS AND CONDITIONS OF OPTIONS

            Each Option granted under this Plan shall be subject to the terms
and conditions set forth in Section 6.1. NQOs shall be also subject to the terms
and conditions set forth in Section 6.2, but not those set forth in Section 6.3.
ISOs shall also be subject to the terms and conditions set forth in Section 6.3,
but not those set forth in Section 6.2.

            6.1 TERMS AND CONDITIONS TO WHICH ALL OPTIONS ARE SUBJECT. Options
granted under this Plan shall be subject to the following terms and conditions:

                6.1.1 CHANGES IN CAPITAL STRUCTURE. Subject to Section 6.1.2,
if the stock of the Company is changed by reason of a stock split, reverse stock
split, stock dividend, or recapitalization, combination or reclassification,
appropriate adjustments shall be made by the Board in (a) the number and class
of shares of stock subject to this Plan and each Option outstanding under this
Plan, and (b) the exercise price of each outstanding Option; provided, however,
that the Company shall not be required to issue fractional shares as a result of
any such adjustments. Each such adjustment shall be subject to approval by the
Board in its absolute discretion.

                6.1.2 CORPORATE TRANSACTIONS.

                     (a) DISSOLUTION OR LIQUIDATION. In the event of the
proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee at least 30 days prior to such proposed action. To the
extent not previously exercised, all Options will terminate immediately prior to
the consummation of such proposed action.

                     (b) In the event of a "change in control" of the Company,
options granted pursuant to the Plan shall automatically be accelerated in full
so as to become fully exercisable. In such event, the Administrator shall notify
each Optionee at least 30 days prior to such proposed action that the options
shall be fully exercisable for a period of 30 days from the date of such notice,
and all such options shall terminate upon the expiration of such 30-day period.

                         For purposes of the foregoing, a change in control
means the occurrence of either of the following:

                         (i) any "person" (as used in Section 13(d) of the
Securities Exchange Act of 1934 and the rules promulgated thereunder) becomes
the "beneficial owner" (as defined in Rule 13d-3) of securities representing a
majority of the voting power of the then outstanding securities of the Company;
or

                         (ii) a sale of assets involving all or substantially
all of the assets of the Company, or a merger or consolidation of the Company in
which the holders of securities of the Company immediately prior to such event
hold in the aggregate less than a majority of the securities of the Company or
any other surviving or resulting entity immediately after such event.

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                6.1.3 TIME OF OPTION EXERCISE. Subject to Section 5 and
Section 6.3.3, Options granted under this Plan shall be exercisable commencing
in accordance with a schedule related to the date of the grant of the Option,
the date of first employment, or such other date as may be set by the
Administrator (in any case, the "VESTING BASE DATE") and specified in the Option
Agreement relating to such Option; provided that the right to exercise an Option
must vest at the rate of (a) at least 20% per year over five years from the date
the Option was granted and (b) not more than 33.33% per year over three years
from the date the Option was granted. In any case, no Option shall be
exercisable until a written Option Agreement in form satisfactory to the Company
is executed by the Company and the Optionee.

                6.1.4 OPTION GRANT DATE. The date of grant of an Option under
this Plan shall be the date as of which the Administrator approves the grant.

                6.1.5 NONTRANSFERABILITY OF OPTION RIGHTS.

                     (a) INCENTIVE STOCK OPTIONS. No ISOs granted under this
Plan may be sold, transferred, pledged, assigned, encumbered or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution; provided that the deceased Optionee's beneficiary or the
representative of the Optionee's estate acknowledges and agrees in writing, in a
form reasonably acceptable to the Company, to be bound by the provisions of this
Plan (including the exercise procedures described in Section 7) and the Option
Agreement covering such Options as if such beneficiary or estate were the
Optionee. All rights with respect to ISOs granted to an Optionee under this Plan
shall be exercisable during the Optionee's life-time by such Optionee only.
Following an Optionee's death, all rights with respect to ISOs that were
exercisable at the time of such Optionee's death and have not terminated shall
be exercised by the Optionee's designated beneficiary or by the Optionee's
estate.

                     (b) NON-QUALIFIED STOCK OPTIONS. No NQO is assignable or
transferable by Optionee except by will or by the laws of descent and
distribution. During the life of Optionee, the NQO is exercisable only by the
Optionee. Any attempt to assign, pledge, transfer, hypothecate or otherwise
dispose of this NQO in a manner not herein permitted, and any levy of execution,
attachment, or similar process on this NQO, shall be null and void. All rights
with respect to such NQO that were exercisable at the time of the Optionee's
death and have not terminated shall be exercised by the Optionee's designated
beneficiary or by the Optionee's estate.

                6.1.6 PAYMENT. Except as provided below, payment in full, in
cash, shall be made for all stock purchased at the time written notice of
exercise of an Option is given to the Company, and proceeds of any payment shall
constitute general funds of the Company. At the time an Option is granted or
exercised, the Administrator, in the exercise of its absolute discretion after
considering any tax or accounting consequences, may authorize as an additional
method of payment the delivery by the Optionee of Common Stock already owned by
the Optionee for all or part of the Option price, provided the value (determined
as set forth in Section 6.1.10) of such Common Stock is equal on the date of
exercise to the Option exercise price, or such portion thereof

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as the Optionee is authorized to pay by delivery of such stock; provided,
however, that if an Optionee has exercised any portion of any Option granted by
the Company by delivery of Common Stock, the Optionee may not, within six months
following such exercise, exercise any Option granted under this Plan by delivery
of Common Stock without the consent of the Administrator.

                6.1.7 TERMINATION OF EMPLOYMENT.

                      (a) If, for any reason other than death, disability or
"cause" (as defined below), an Optionee ceases to be employed by the Company or
any of its Affiliates (such event being called a "TERMINATION"), Options held at
the date of Termination (to the extent then exercisable) may be exercised in
whole or in part at any time within three months of the date of such
Termination, or such other period of not less than 30 days after the date of
such Termination as is specified in the Option Agreement (but in no event after
the Expiration Date); provided, that if such exercise of the Option would result
in liability for the Optionee under Section 16(b) of the Exchange Act, then such
90-day period automatically shall be extended until the tenth day following the
last date upon which Optionee has any liability under Section 16(b) (but in no
event after the Expiration Date).

                     (b) If an Optionee dies while employed by the Company or an
Affiliate or within the period that the Option remains exercisable after
Termination, Options then held (to the extent then exercisable) may be
exercised, in whole or in part, by the Optionee, by the Optionee's personal
representative, or by the person to whom the Option is transferred by devise or
the laws of descent and distribution, at any time within 12 months after the
death of the Optionee, or such other period of not less than six months from the
date of Termination as is specified in the Option Agreement (but in no event
after the Expiration Date).

                     (c) If an Optionee ceases to be employed by the Company as
a result of his or her disability, the Optionee may, but only within six months
after the date of Termination (and in no event after the Expiration Date),
exercise the Option to the extent otherwise entitled to exercise it at the date
of Termination; provided, however, that if such disability is not a "disability"
as such term is defined in Section 22(e)(3) of the Code, in the case of an ISO
such ISO shall automatically convert to a NQO on the day three months and one
day following such Termination. To the extent that the Optionee was not entitled
to exercise the Option at the date of Termination or if the Optionee does not
exercise such Option to the extent so entitled within the time specified herein,
the Option shall terminate, and the shares covered by such Option shall revert
to this Plan.

                     (d) If an Optionee is terminated for "cause" all Options
then held by such Optionee shall terminate and no longer be exercisable as of
the date of Termination.

                     (e) For purposes of this Section 6.1.7, "EMPLOYMENT"
includes service as an employee or a director.

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                     (f) For purposes of this Section 6.1.7, an Optionee's
employment shall not be deemed to terminate by reason of sick leave, military
leave or other leave of absence approved by the Administrator, if the period of
any such leave does not exceed three months or, if longer, if the Optionee's
right to reemployment by the Company or any Affiliate is guaranteed either
contractually or by statute.

                     (g) For purposes of this Section 6.1.7, "CAUSE" shall mean
Termination (i) by reason of Optionee's commission of a felony, misdemeanor or
other illegal conduct involving dishonesty, fraud or personal injury to others,
(ii) by reason of Optionee's dishonesty towards, fraud upon, or deliberate
injury or attempted injury to the Company or any of its Affiliates, or (iii) by
reason of Optionee's willfully engaging in misconduct which is materially and
demonstrably injurious to the Company or any of its Affiliates.

                6.1.8 WITHHOLDING AND EMPLOYMENT TAXES. At the time of
exercise of an Option or at such other time as the amount of such obligations
becomes determinable (the "TAX DATE"), the Optionee shall remit to the Company
in cash all applicable federal and state withholding and employment taxes. If
authorized by the Administrator in its absolute discretion, after considering
any tax or accounting consequences, an Optionee may elect to (i) tender to the
Company previously owned shares of Stock or other securities of the Company, or
(ii) have shares of Common Stock which are acquired upon exercise of the Option
withheld by the Company to pay some or all of the amount of tax that is required
by law to be withheld by the Company as a result of the exercise of such Option,
subject to the following limitations:

                      (a) Any election pursuant to clause (i) above by an
Optionee subject to Section 16 of the Exchange Act shall either (x) be made at
least six months before the Tax Date and shall be irrevocable; or (y) shall be
made in (or made earlier to take effect in) any ten-day period beginning on the
third business day following the date of release for publication of the
Company's quarterly or annual summary statements of earnings and shall be
subject to approval by the Administrator, which approval may be given at any
time after such election has been made. In addition, in the case of (y), the
Option shall be held at least six months prior to the Tax Date.

                      (b) Any election pursuant to clause (ii) above, where the
Optionee is tendering Common Stock issued pursuant to the exercise of an Option,
shall require that such shares be held at least six months prior to the Tax
Date.

                          Any of the foregoing limitations may be waived (or
additional limitations may be imposed) by the Administrator, in its absolute
discretion, if the Administrator determines that such foregoing limitations are
not required (or that such additional limitations are required) in order that
the transaction shall be exempt from Section 16(b) of the Exchange Act pursuant
to Rule 16b-3, or any successor rule thereto. In addition, any of the foregoing
limitations may be waived by the Administrator, in its sole discretion, if the
Administrator determines that Rule 16b-3, or any successor rule thereto, is not
applicable to the exercise of the Option by the Optionee or for any other
reason.

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                         Any securities tendered or withheld in accordance
with this Section 6.1.8 shall be valued by the Company as of the Tax Date.

                6.1.9 OTHER PROVISIONS. Each Option granted under this Plan
may contain such other terms, provisions, and conditions not inconsistent with
this Plan as may be determined by the Administrator, and each ISO granted under
this Plan shall include such provisions and conditions as are necessary to
qualify the Option as an "incentive stock option" within the meaning of Section
422 of the Code. If Options provide for a right of first refusal in favor of the
Company with respect to stock acquired by employees or directors, such Options
shall provide that the right of first refusal shall terminate upon the earlier
of (i) the closing of the Company's initial public offering of Common Stock, or
(ii) the date ten years after the grant date as set forth in Section 6.1.4.

                6.1.10 DETERMINATION OF VALUE. For purposes of this Plan, the
fair market value of Common Stock or other securities of the Company shall be
determined as follows:

                      (a) If the stock of the Company is listed on any
established stock exchange or a national market system, including without
limitation the National Market System of the National Association of Securities
Dealers, Inc. Automated Quotation System, its fair market value shall be the
closing sales price for such stock or the closing bid if no sales were reported,
as quoted on such system or exchange (or the largest such exchange) for the date
the value is to be determined (or if there are no sales for such date, then for
the last preceding business day on which there were sales), as reported in the
Wall Street Journal or similar publication.

                      (b) If the stock of the Company is regularly quoted by a
recognized securities dealer but selling prices are not reported, its fair
market value shall be the mean between the high bid and low asked prices for the
stock on the date the value is to be determined (or if there are no quoted
prices for such date, then for the last preceding business day on which there
were quoted prices).

                      (c) In the absence of an established market for the stock,
the fair market value thereof shall be determined in good faith by the
Administrator, by consideration of such factors as the Administrator in its
discretion deems appropriate among the recent issue price of other securities of
the Company, the Company's net worth, prospective earning power, dividend-paying
capacity, and other relevant factors, including the goodwill of the Company, the
economic outlook in the Company's industry, the Company's position in the
industry and its management, and the values of stock of other corporations in
the same or a similar line of business.

                6.1.11 OPTION TERM. Subject to Section 6.3.4, no Option shall
be exercisable more than ten years after the date of grant, or such lesser
period of time as is set forth in the Option Agreement (the end of the maximum
exercise period stated in the stock option agreement is referred to in this Plan
as the "EXPIRATION DATE").

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                6.1.12 EXERCISE PRICE. The exercise price of any Option
granted to any person who owns, directly or by attribution under the Code
(currently Section 424(d)), stock possessing more than ten percent of the total
combined voting power of all classes of stock of the Company or of any Affiliate
(a "TEN PERCENT STOCKHOLDER") shall in no event be less than 110% of the fair
market value (determined in accordance with Section 6.1.10) of the stock covered
by the Option at the time the Option is granted.

                6.1.13 CAPITAL REQUIREMENTS OF BANKING SUBSIDIARY. The Office
of Thrift Supervision (the "OTS"), the primary regulator of the Bank of
Internet, USA, a federal banking subsidiary of the Company, may direct the
Company to require all Optionees who are employed by, or are directors of, such
bank to exercise or forfeit their Options if such bank's capital falls below the
minimum regulatory requirements as determined by the OTS. In such event, any
Options which are so directed by the OTS to be exercised, but which are not
exercised, shall terminate and be forfeited by the Optionees.

                6.2 EXERCISE PRICE OF NQOS. The exercise price of any NQO
granted under this Plan shall in no event be less than the fair market value
(determined in accordance with Section 6.1.10) of the stock subject to the
Option at the time the Option is granted.

                6.3 TERMS AND CONDITIONS TO WHICH ONLY ISOS ARE SUBJECT.
Options granted under this Plan which are designated as ISOs shall be subject to
the following terms and conditions:

                    6.3.1 EXERCISE PRICE. Except as set forth in Section 6.1.12,
the exercise price of an ISO shall be determined in accordance with the
applicable provisions of the Code and shall in no event be less than the fair
market value (determined in accordance with Section 6.1.10) of the stock subject
to the Option at the time the Option is granted.

                    6.3.2 DISQUALIFYING DISPOSITIONS. If stock acquired by
exercise of an ISO granted pursuant to this Plan is disposed of in a
"disqualifying disposition" within the meaning of Section 422 of the Code, the
holder of the stock immediately before the disposition shall promptly notify the
Company in writing of the date and terms of the disposition and shall provide
such other information regarding the Option as the Company may reasonably
require.

                    6.3.3 VESTING. Notwithstanding any other provision of this
Plan, ISOs granted to any single Optionee under all incentive stock option plans
of the Company and its subsidiaries may not "vest" for more than $100,000 in
fair market value of stock (measured on the grant date(s)) in any calendar year.
For purposes of the preceding sentence, an option "vests" when it first becomes
exercisable. If, by their terms, such ISOs held by an Optionee taken together
would vest to a greater extent in a calendar year, and unless otherwise provided
by the Administrator, the vesting limitation described above shall be applied by
deferring the exercisability of those ISOs or portions of ISOs which have the
highest per share exercise prices; but in no event shall more than

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$100,000 in fair market value of stock (measured on the grant date(s)) vest in
any calendar year. The ISOs or portions of ISOs whose exercisability is so
deferred shall become exercisable on the first day of the first subsequent
calendar year during which they may be exercised, as determined by applying
these same principles and all other provisions of this Plan including those
relating to the expiration and termination of ISOs. In no event, however, will
the operation of this Section 6.3.3 cause an ISO to vest before its terms or,
having vested, cease to be vested.

                    6.3.4 TERM. Notwithstanding Section 6.1.11, no ISO granted
to any Ten Percent Stockholder shall be exercisable more than five years after
the date of grant.

         7. MANNER OF EXERCISE

            7.1 WRITTEN NOTICE; PAYMENT. An Optionee wishing to exercise an
Option shall give written notice to the Company at its principal executive
office, to the attention of the officer of the Company designated by the
Administrator, accompanied by payment of the exercise price as provided in
Section 6.1.6. The date the Company receives written notice of an exercise
hereunder accompanied by payment of the exercise price will be considered as the
date such Option was exercised.

            7.2 DELIVERY OF STOCK. Promptly after receipt of written notice of
exercise of an Option, the Company shall, without stock issue or transfer taxes
to the Optionee or other person entitled to exercise the Option, deliver to the
Optionee or such other person a certificate or certificates for the requisite
number of shares of stock. An Optionee or permitted transferee of an Optionee
shall not have any privileges as a stockholder with respect to any shares of
stock covered by the Option until the date of issuance (as evidenced by the
appropriate entry on the books of the Company or a duly authorized transfer
agent) of such shares.

         8. EMPLOYMENT RELATIONSHIP

            Nothing in this Plan or any Option granted thereunder shall
interfere with or limit in any way the right of the Company or of any of its
Affiliates to terminate any Optionee's employment or director relationship at
any time, nor confer upon any Optionee any right to continue in the employ of,
or consult with, the Company or any of its Affiliates, nor interfere in any way
with provisions in the Company's charter documents or applicable law relating to
the election, appointment, terms of office, and removal of members of the Board.

         9. FINANCIAL INFORMATION

            The Company shall provide to each Optionee during the period such
Optionee holds an outstanding Option, and to each holder of Common Stock
acquired upon exercise of Options granted under this Plan for so long as such
person is a holder of such Common Stock, annual financial statements of the
Company as prepared either by the Company or independent certified public
accountants of the Company. Such financial statements shall include, at a
minimum, a balance sheet and an income

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statement, and shall be delivered as soon as practicable following the end of
the Company's fiscal year. The provisions of this Section 9 shall not apply with
respect to Optionees who are key employees of the Company whose duties in
connection with the Company assures them access to information equivalent to the
information provided in the financial statements.

         10. CONDITIONS UPON ISSUANCE OF SHARES

             Shares of Common Stock shall not be issued pursuant to the exercise
of an Option unless the exercise of such Option and the issuance and delivery of
such shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933 (the "SECURITIES
ACT").

         11. NONEXCLUSIVITY OF PLAN

             The adoption of this Plan shall not be construed. as creating any
limitations on the power of the Company to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options other than under this Plan.

         12. MARKET STANDOFF

             Each Optionee, if so requested by the Company or any representative
of the underwriters in connection with any registration of the offering of any
securities of the Company under the Securities Act shall not sell or otherwise
transfer any shares of Common Stock acquired upon exercise of Options during a
period not to exceed 180 days following the effective date of a registration
statement of the Company filed under the Securities Act; provided, however, that
such restriction shall apply only to the first two registration statements of
the Company to become effective under the Securities Act which include
securities to be sold on behalf of the Company to the public in an underwritten
public offering under the Securities Act. The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restriction
until the end of the above period.

         13. AMENDMENTS TO PLAN

             The Board may at any time amend, alter, suspend or discontinue this
Plan. Without the consent of an Optionee, no amendment, alteration, suspension
or discontinuance may adversely affect outstanding Options except to conform
this Plan and ISOs granted under this Plan to the requirements of federal or
other tax laws relating to incentive stock options. No amendment, alteration,
suspension or discontinuance shall require stockholder approval unless (a) such
amendment materially alters the terms of the Plan, (b) stockholder approval is
required to preserve incentive stock option treatment for federal income tax
purposes, or (c) the Board otherwise concludes that stockholder approval is
advisable.

                                       11
<PAGE>

         14. EFFECTIVE DATE OF PLAN

             This Plan shall become effective upon adoption by the Board,
provided, however, that no Option shall be exercisable unless and until written
consent of the stockholders of the Company, or approval of stockholders of the
Company voting at a validly called stockholders' meeting, is obtained within 12
months after adoption by the Board. If such stockholder approval is not obtained
within such time, Options granted hereunder shall terminate and be of no force
and effect from and after expiration of such 12-month period. Options may be
granted and exercised under this Plan only after there has been compliance with
all applicable federal and state securities laws.

                                       12<PAGE>

                                                                    EXHIBIT 10.3

                               BOFI HOLDING, INC.

                            2004 STOCK INCENTIVE PLAN

      1.    Purposes of the Plan. The purposes of this Plan are to attract and
retain the best available personnel, to provide additional incentives to
Employees, Directors and Consultants and to promote the success of the Company's
business.

      2.    Definitions. The following definitions shall apply as used herein
and in the individual Award Agreements except as defined otherwise in an
individual Award Agreement. In the event a term is separately defined in an
individual Award Agreement, such definition shall supercede the definition
contained in this Section 2.

            (a)   "Administrator" means the Board or any of the Committees
appointed to administer the Plan.

            (b)   "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

            (c)   "Applicable Laws" means the legal requirements relating to the
Plan and the Awards under applicable provisions of federal securities laws,
state corporate and securities laws, the Code, the rules of any applicable stock
exchange or national market system, and the rules of any non-U.S. jurisdiction
applicable to Awards granted to residents therein.

            (d)   "Assumed" means that pursuant to a Corporate Transaction
either (i) the Award is expressly affirmed by the Company or (ii) the
contractual obligations represented by the Award are expressly assumed (and not
simply by operation of law) by the successor entity or its Parent in connection
with the Corporate Transaction with appropriate adjustments to the number and
type of securities of the successor entity or its Parent subject to the Award
and the exercise or purchase price thereof which at least preserves the
compensation element of the Award existing at the time of the Corporate
Transaction as determined in accordance with the instruments evidencing the
agreement to assume the Award.

            (e)   "Award" means the grant of an Option, SAR, Dividend Equivalent
Right, Restricted Stock, Restricted Stock Unit or other right or benefit under
the Plan.

            (f)   "Award Agreement" means the written agreement evidencing the
grant of an Award executed by the Company and the Grantee, including any
amendments thereto.

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

            (h)   "Cause" means, with respect to the termination by the Company
or a Related Entity of the Grantee's Continuous Service, that such termination
is for "Cause" as such term is expressly defined in a then-effective written
agreement between the Grantee and the Company or such Related Entity, or in the
absence of such then-effective written agreement and definition, is based on, in
the determination of the Administrator, the Grantee's: (i) performance of any
act or failure to perform any act in bad faith and to the detriment of the
Company or a Related Entity; (ii) dishonesty, intentional misconduct or material
breach of any agreement with

                                        1

<PAGE>

the Company or a Related Entity; or (iii) commission of a crime involving
dishonesty, breach of trust, or physical or emotional harm to any person.

            (i)   "Change in Control" means a change in ownership or control of
the Company after the Registration Date effected through either of the following
transactions:

                  (i)   the direct or indirect acquisition by any person or
related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities pursuant to
a tender or exchange offer made directly to the Company's stockholders which a
majority of the Continuing Directors who are not Affiliates or Associates of the
offeror do not recommend such stockholders accept, or

                  (ii)  a change in the composition of the Board over a period
of thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who are
Continuing Directors.

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

            (k)   "Committee" means any committee composed of members of the
Board appointed by the Board to administer the Plan.

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

            (m)   "Company" means BofI Holding, Inc., a Delaware corporation, or
any successor entity that adopts the Plan in connection with a Corporate
Transaction.

            (n)   "Consultant" means any person (other than an Employee or a
Director, solely with respect to rendering services in such person's capacity as
a Director) who is engaged by the Company or any Related Entity to render
consulting or advisory services to the Company or such Related Entity.

            (o)   "Continuing Directors" means members of the Board who either
(i) have been Board members continuously for a period of at least thirty-six
(36) months or (ii) have been Board members for less than thirty-six (36) months
and were elected or nominated for election as Board members by at least a
majority of the Board members described in clause (i) who were still in office
at the time such election or nomination was approved by the Board.

            (p)   "Continuous Service" means that the provision of services to
the Company or a Related Entity in any capacity of Employee, Director or
Consultant is not interrupted or terminated. In jurisdictions requiring notice
in advance of an effective termination as an Employee, Director or Consultant,
Continuous Service shall be deemed terminated upon the actual cessation of
providing services to the Company or a Related Entity notwithstanding any
required notice period that must be fulfilled before a termination as an
Employee, Director or

                                        2

<PAGE>

Consultant can be effective under Applicable Laws. A Grantee's Continuous
Service shall be deemed to have terminated either upon an actual termination of
Continuous Service or upon the entity for which the Grantee provides services
ceasing to be a Related Entity. Continuous Service shall not be considered
interrupted in the case of (i) any approved leave of absence, (ii) transfers
among the Company, any Related Entity, or any successor, in any capacity of
Employee, Director or Consultant, or (iii) any change in status as long as the
individual remains in the service of the Company or a Related Entity in any
capacity of Employee, Director or Consultant (except as otherwise provided in
the Award Agreement). An approved leave of absence shall include sick leave,
military leave, or any other authorized personal leave.

            (q)   "Corporate Transaction" means any of the following
transactions, provided, however, that the Administrator shall determine under
parts (iv) and (v) whether multiple transactions are related, and its
determination shall be final, binding and conclusive:

                  (i)   a merger or consolidation in which the Company is not
the surviving entity, except for a transaction the principal purpose of which is
to change the state in which the Company is incorporated;

                  (ii)  the sale, transfer or other disposition of all or
substantially all of the assets of the Company;

                  (iii) the complete liquidation or dissolution of the Company;

                  (iv)  any reverse merger or series of related transactions
culminating in a reverse merger (including, but not limited to, a tender offer
followed by a reverse merger) in which the Company is the surviving entity but
(A) the shares of Common Stock outstanding immediately prior to such merger are
converted or exchanged by virtue of the merger into other property, whether in
the form of securities, cash or otherwise, or (B) in which securities possessing
more than forty percent (40%) of the total combined voting power of the
Company's outstanding securities are transferred to a person or persons
different from those who held such securities immediately prior to such merger
or the initial transaction culminating in such merger, but excluding any such
transaction or series of related transactions that the Administrator determines
shall not be a Corporate Transaction; or

                  (v)   acquisition in a single or series of related
transactions by any person or related group of persons (other than the Company
or by a Company-sponsored employee benefit plan) of beneficial ownership (within
the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more
than fifty percent (50%) of the total combined voting power of the Company's
outstanding securities but excluding any such transaction or series of related
transactions that the Administrator determines shall not be a Corporate
Transaction.

            (r)   "Covered Employee" means an Employee who is a "covered
employee" under Section 162(m)(3) of the Code.

            (s)   "Director" means a member of the Board or the board of
directors of any Related Entity.

                                        3

<PAGE>

            (t)   "Disability" means as defined under the long-term disability
policy of the Company or the Related Entity to which the Grantee provides
services regardless of whether the Grantee is covered by such policy. If the
Company or the Related Entity to which the Grantee provides service does not
have a long-term disability plan in place, "Disability" means that a Grantee is
unable to carry out the responsibilities and functions of the position held by
the Grantee by reason of any medically determinable physical or mental
impairment for a period of not less than ninety (90) consecutive days. A Grantee
will not be considered to have incurred a Disability unless he or she furnishes
proof of such impairment sufficient to satisfy the Administrator in its
discretion.

            (u)   "Dividend Equivalent Right" means a right entitling the
Grantee to compensation measured by dividends paid with respect to Common Stock.

            (v)   "Employee" means any person, including an Officer or Director,
who is in the employ of the Company or any Related Entity, subject to the
control and direction of the Company or any Related Entity as to both the work
to be performed and the manner and method of performance. The payment of a
director's fee by the Company or a Related Entity shall not be sufficient to
constitute "employment" by the Company.

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

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

                  (i)   If the Common Stock is listed on one or more established
stock exchanges or national market systems, including without limitation The
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on the principal exchange or
system on which the Common Stock is listed (as determined by the Administrator)
on the date of determination (or, if no closing sales price or closing bid was
reported on that date, as applicable, on the last trading date such closing
sales price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Administrator deems reliable;

                  (ii)  If the Common Stock is regularly quoted on an automated
quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, its Fair Market Value shall be the closing sales price for
such stock as quoted on such system on the date of determination, but if selling
prices are not reported, the Fair Market Value of a share of Common Stock shall
be the mean between the high bid and low asked prices for the Common Stock on
the date of determination (or, if no such prices were reported on that date, on
the last date such prices were reported), 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 of the type described in (i) and (ii), above, the Fair Market Value
thereof shall be determined by the Administrator in good faith.

                                        4

<PAGE>

            (y)   "Grantee" means an Employee, Director or Consultant who
receives an Award under the Plan.

            (z)   "Non-Qualified Stock Option" means an Option not intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

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

            (bb)  "Option" means a Non-Qualified Stock Option to purchase Shares
pursuant to an Award Agreement granted under the Plan.

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

            (dd)  "Performance-Based Compensation" means compensation qualifying
as "performance-based compensation" under Section 162(m) of the Code.

            (ee)  "Plan" means this 2004 Stock Incentive Plan.

            (ff)  "Registration Date" means the first to occur of (i) the
closing of the first sale to the general public pursuant to a registration
statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act of 1933, as amended, of (A) the Common Stock
or (B) the same class of securities of a successor corporation (or its Parent)
issued pursuant to a Corporate Transaction in exchange for or in substitution of
the Common Stock; and (ii) in the event of a Corporate Transaction, the date of
the consummation of the Corporate Transaction if the same class of securities of
the successor corporation (or its Parent) issuable in such Corporate Transaction
shall have been sold to the general public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended, on or prior to the date of
consummation of such Corporate Transaction.

            (gg)  "Related Entity" means any Parent or Subsidiary of the Company
and any business, corporation, partnership, limited liability company or other
entity in which the Company or a Parent or a Subsidiary of the Company holds a
substantial ownership interest, directly or indirectly.

            (hh)  "Replaced" means that pursuant to a Corporate Transaction the
Award is replaced with a comparable stock award or a cash incentive program of
the Company, the successor entity (if applicable) or Parent of either of them
which preserves the compensation element of such Award existing at the time of
the Corporate Transaction and provides for subsequent payout in accordance with
the same (or a more favorable) vesting schedule applicable to such Award. The
determination of Award comparability shall be made by the Administrator and its
determination shall be final, binding and conclusive.

            (ii)  "Restricted Stock" means Shares issued under the Plan to the
Grantee for such consideration, if any, and subject to such restrictions on
transfer, rights of first refusal,

                                        5

<PAGE>

repurchase provisions, forfeiture provisions, and other terms and conditions as
established by the Administrator.

            (jj)  "Restricted Stock Units" means an Award which may be earned in
whole or in part upon the passage of time or the attainment of performance
criteria established by the Administrator and which may be settled for cash,
Shares or other securities or a combination of cash, Shares or other securities
as established by the Administrator.

            (kk)  "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange
Act or any successor thereto.

            (ll)  "SAR" means a stock appreciation right entitling the Grantee
to Shares or cash compensation, as established by the Administrator, measured by
appreciation in the value of Common Stock.

            (mm)  "Share" means a share of the Common Stock.

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

      3.    Stock Subject to the Plan.

            (a)   Subject to the provisions of Section 10, below, the maximum
aggregate number of Shares which may be issued pursuant to (i) all Awards plus
(ii) awards under the Company's 1999 Stock Option Plan may not exceed 14.8% of
the number of Shares outstanding from time to time; provided, however, that the
maximum aggregate number of Shares which may be issued pursuant to Awards of
Restricted Stock under the Plan may not exceed 5.0% of the number of Shares
outstanding from time to time (subject to the overall maximum of 14.8% of
outstanding Shares); provided, further, that each Share of Restricted Stock that
is issued under the Plan and vests will be deemed to be the issuance of three
(3) Shares for purposes of calculating the overall maximum aggregate number of
Shares that may be issued under the Plan but not for purposes of calculating the
above 5.0% limit applicable to Awards of Restricted Stock.

            (b)   Any Shares covered by an Award (or portion of an Award) which
is forfeited, canceled or expires (whether voluntarily or involuntarily) shall
be deemed not to have been issued for purposes of determining the maximum
aggregate number of Shares which may be issued under the Plan. Shares that
actually have been issued under the Plan pursuant to an Award shall not be
returned to the Plan and shall not become available for future issuance under
the Plan, except that if unvested Shares are forfeited, or repurchased by the
Company at the lower of their original purchase price or their Fair Market Value
at the time of repurchase, such Shares shall become available for future grant
under the Plan. To the extent not prohibited by the listing requirements of The
Nasdaq National Market (or other established stock exchange or national market
system on which the Common Stock is traded) and Applicable Law, any Shares
covered by an Award which are surrendered (i) in payment of the Award exercise
or purchase price or (ii) in satisfaction of tax withholding obligations
incident to the exercise of an Award shall be deemed not to have been issued for
purposes of determining the maximum number of

                                        6

<PAGE>

Shares which may be issued pursuant to all Awards under the Plan, unless
otherwise determined by the Administrator.

      4.    Administration of the Plan.

            (a)   Plan Administrator.

                  (i)   Administration with Respect to Directors and Officers.
With respect to grants of Awards to Directors or Employees who are also Officers
or Directors of the Company, the Plan shall be administered by (A) the Board or
(B) a Committee designated by the Board, which Committee shall be constituted in
such a manner as to satisfy the Applicable Laws and to permit such grants and
related transactions under the Plan to be exempt from Section 16(b) of the
Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board.

                  (ii)  Administration With Respect to Consultants and Other
Employees. With respect to grants of Awards to Employees or Consultants who are
neither Directors nor Officers of the Company, the Plan shall be administered by
(A) the Board or (B) a Committee designated by the Board, which Committee shall
be constituted in such a manner as to satisfy the Applicable Laws. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. The Board may authorize one or more
Officers to grant such Awards and may limit such authority as the Board
determines from time to time.

                  (iii) Administration With Respect to Covered Employees.
Notwithstanding the foregoing, as of and after the date that the exemption for
the Plan under Section 162(m) of the Code expires, as set forth in Section 18
below, grants of Awards to any Covered Employee intended to qualify as
Performance-Based Compensation shall be made only by a Committee (or
subcommittee of a Committee) which is comprised solely of two or more Directors
eligible to serve on a committee making Awards qualifying as Performance-Based
Compensation. In the case of such Awards granted to Covered Employees,
references to the "Administrator" or to a "Committee" shall be deemed to be
references to such Committee or subcommittee.

                  (iv)  Administration Errors. In the event an Award is granted
in a manner inconsistent with the provisions of this subsection (a), such Award
shall be presumptively valid as of its grant date to the extent permitted by the
Applicable Laws.

            (b)   Powers of the Administrator. Subject to Applicable Laws and
the provisions of the Plan (including any other powers given to the
Administrator hereunder), and except as otherwise provided by the Board, the
Administrator shall have the authority, in its discretion:

                  (i)   to select the Employees, Directors and Consultants to
whom Awards may be granted from time to time hereunder;

                  (ii)  to determine whether and to what extent Awards are
granted hereunder;

                                        7

<PAGE>

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

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

                  (v)   to determine the terms and conditions of any Award
granted hereunder;

                  (vi)  to amend the terms of any outstanding Award granted
under the Plan, provided that (A) any amendment that would adversely affect the
Grantee's rights under an outstanding Award shall not be made without the
Grantee's written consent, (B) the reduction of the exercise price of any Option
awarded under the Plan shall be subject to stockholder approval and (C)
canceling an Option at a time when its exercise price exceeds the Fair Market
Value of the underlying Shares, in exchange for another Option, Restricted
Stock, or other Award shall be subject to stockholder approval, unless the
cancellation and exchange occurs in connection with a Corporate Transaction;

                  (vii) to construe and interpret the terms of the Plan and
Awards, including without limitation, any notice of award or Award Agreement,
granted pursuant to the Plan;

                  (viii) to grant Awards to Employees, Directors and Consultants
employed outside the United States on such terms and conditions different from
those specified in the Plan as may, in the judgment of the Administrator, be
necessary or desirable to further the purpose of the Plan;

                  (ix)  to take such other action, not inconsistent with the
terms of the Plan, as the Administrator deems appropriate.

            (c)   Indemnification. In addition to such other rights of
indemnification as they may have as members of the Board or as Officers or
Employees of the Company or a Related Entity, members of the Board and any
Officers or Employees of the Company or a Related Entity to whom authority to
act for the Board, the Administrator or the Company is delegated shall be
defended and indemnified by the Company to the extent permitted by law on an
after-tax basis against all reasonable expenses, including attorneys' fees,
actually and necessarily incurred in connection with the defense of any claim,
investigation, action, suit or proceeding, or in connection with any appeal
therein, 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 Award
granted hereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by the Company) or paid by them in
satisfaction of a judgment in any such claim, investigation, action, suit or
proceeding, except in relation to matters as to which it shall be adjudged in
such claim, investigation, action, suit or proceeding that such person is liable
for gross negligence, bad faith or intentional misconduct; provided, however,
that within thirty (30) days after the institution of such claim, investigation,
action, suit or proceeding, such person shall offer to the Company, in writing,
the opportunity at the Company's expense to defend the same.

                                        8

<PAGE>

      5.    Eligibility. Awards may be granted to Employees, Directors and
Consultants. An Employee, Director or Consultant who has been granted an Award
may, if otherwise eligible, be granted additional Awards. Awards may be granted
to such Employees, Directors or Consultants who are residing in non-U.S.
jurisdictions as the Administrator may determine from time to time.

      6.    Terms and Conditions of Awards.

            (a)   Types of Awards. The Administrator is authorized under the
Plan to award any type of arrangement to an Employee, Director or Consultant
that is not inconsistent with the provisions of the Plan and that by its terms
involves or might involve the issuance of (i) Shares, (ii) cash or (iii) an
Option, a SAR, or similar right with a fixed or variable price related to the
Fair Market Value of the Shares and with an exercise or conversion privilege
related to the passage of time, the occurrence of one or more events, or the
satisfaction of performance criteria or other conditions. Such awards include,
without limitation, Options, SARs, sales or bonuses of Restricted Stock,
Restricted Stock Units or Dividend Equivalent Rights, and an Award may consist
of one such security or benefit, or two (2) or more of them in any combination
or alternative.

            (b)   Designation of Award. Each Award shall be designated in the
Award Agreement.

            (c)   Conditions of Award. Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions, form of payment
(cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance
criteria established by the Administrator may be based on any one of, or
combination of, the following: (i) increase in share price, (ii) earnings per
share, (iii) total stockholder return, (iv) operating margin, (v) gross margin,
(vi) return on equity, (vii) return on assets, (viii) return on investment, (ix)
operating income, (x) net operating income, (xi) pre-tax profit, (xii) cash
flow, (xiii) revenue, (xiv) expenses, (xv) earnings before interest, taxes and
depreciation, (xvi) economic value added, (xvii) market share and (xviii)
personal management objectives. The performance criteria may be applicable to
the Company, Related Entities and/or any individual business units of the
Company or any Related Entity. Partial achievement of the specified criteria may
result in a payment or vesting corresponding to the degree of achievement as
specified in the Award Agreement.

            (d)   Acquisitions and Other Transactions. The Administrator may
issue Awards under the Plan in settlement, assumption or substitution for,
outstanding awards or obligations to grant future awards in connection with the
Company or a Related Entity acquiring another entity, an interest in another
entity or an additional interest in a Related Entity whether by merger, stock
purchase, asset purchase or other form of transaction.

            (e)   Deferral of Award Payment. The Administrator may establish one
or more programs under the Plan to permit selected Grantees the opportunity to
elect to defer receipt of consideration upon exercise of an Award, satisfaction
of performance criteria, or other event that absent the election would entitle
the Grantee to payment or receipt of Shares or other

                                        9

<PAGE>

consideration under an Award. The Administrator may establish the election
procedures, the timing of such elections, the mechanisms for payments of, and
accrual of interest or other earnings, if any, on amounts, Shares or other
consideration so deferred, and such other terms, conditions, rules and
procedures that the Administrator deems advisable for the administration of any
such deferral program.

            (f)   Separate Programs. The Administrator may establish one or more
separate programs under the Plan for the purpose of issuing particular forms of
Awards to one or more classes of Grantees on such terms and conditions as
determined by the Administrator from time to time.

            (g)   Individual Limitations on Awards. Following the date that the
exemption from application of Section 162(m) of the Code described in Section 18
(or any exemption having similar effect) ceases to apply to Awards, the
following limitations shall apply.

                  (i)   Individual Limit for Options and SARs. The maximum
number of Shares with respect to which Options and SARs may be granted to any
Grantee in any fiscal year of the Company shall be 100,000 Shares. In connection
with a Grantee's commencement of Continuous Service, a Grantee may be granted
Options or SARs for up to an additional 100,000 Shares which shall not count
against the limit set forth in the previous sentence. The foregoing limitations
shall be adjusted proportionately in connection with any change in the Company's
capitalization pursuant to Section 10, below. To the extent required by Section
162(m) of the Code or the regulations thereunder, in applying the foregoing
limitations with respect to a Grantee, if any Option or SAR is canceled, the
canceled Option or SAR shall continue to count against the maximum number of
Shares with respect to which Options and SARs may be granted to the Grantee. For
this purpose, the repricing of an Option (or in the case of a SAR, the base
amount on which the stock appreciation is calculated is reduced to reflect a
reduction in the Fair Market Value of the Common Stock) shall be treated as the
cancellation of the existing Option or SAR and the grant of a new Option or SAR.

                  (ii)  Individual Limit for Restricted Stock and Restricted
Stock Units. For awards of Restricted Stock and Restricted Stock Units that are
intended to be Performance-Based Compensation, the maximum number of Shares with
respect to which such Awards may be granted to any Grantee in any fiscal year of
the Company shall be 100,000 Shares. The foregoing limitation shall be adjusted
proportionately in connection with any change in the Company's capitalization
pursuant to Section 10, below. In connection with a Grantee's commencement of
Continuous Service, a Grantee may be granted Restricted Stock and Restricted
Stock Units for up to an additional 100,000 Shares which shall not count against
the limit set forth in the previous sentence.

                  (iii) Deferral. If the vesting or receipt of Shares under an
Award is deferred to a later date, any amount (whether denominated in Shares or
cash) paid in addition to the original number of Shares subject to such Award
will not be treated as an increase in the number of Shares subject to the Award
if the additional amount is based either on a reasonable rate of interest or on
one or more predetermined actual investments such that the amount payable by the
Company at the later date will be based on the actual rate of return of a
specific investment (including any decrease as well as any increase in the value
of an investment).

                                       10

<PAGE>

            (h)   Early Exercise. The Award Agreement may, but need not, include
a provision whereby the Grantee may elect at any time while an Employee,
Director or Consultant to exercise any part or all of the Award prior to full
vesting of the Award. Any unvested Shares received pursuant to such exercise may
be subject to a repurchase right in favor of the Company or a Related Entity or
to any other restriction the Administrator determines to be appropriate.

            (i)   Term of Award. The term of each Award shall be the term stated
in the Award Agreement. The specified term of any Award shall not include any
period for which the Grantee has elected to defer the receipt of the Shares or
cash issuable pursuant to the Award.

            (j)   Transferability of Awards. Awards shall be transferable (i) by
will and by the laws of descent and distribution and (ii) during the lifetime of
the Grantee, to the extent and in the manner authorized by the Administrator.
Notwithstanding the foregoing, the Grantee may designate one or more
beneficiaries of the Grantee's Award in the event of the Grantee's death on a
beneficiary designation form provided by the Administrator.

            (k)   Time of Granting Awards. The date of grant of an Award shall
for all purposes be the date on which the Administrator makes the determination
to grant such Award, or such other date as is determined by the Administrator.

      7.    Award Exercise or Purchase Price, Consideration and Taxes.

            (a)   Exercise or Purchase Price. The exercise or purchase price, if
any, for an Award shall be as follows:

                  (i)   In the case of an Option, the per Share exercise price
shall be not less than eighty-five percent (85%) of the Fair Market Value per
Share on the date of grant unless otherwise determined by the Administrator.

                  (ii)  In the case of Options or SARs intended to qualify as
Performance-Based Compensation, the exercise or base appreciation amount shall
be not less than one hundred percent (100%) of the Fair Market Value per Share
on the date of grant.

                  (iii) In the case of other Awards, such price as is determined
by the Administrator.

                  (iv)  Notwithstanding the foregoing provisions of this Section
7(a), in the case of an Award issued pursuant to Section 6(d), above, the
exercise or purchase price for the Award shall be determined in accordance with
the provisions of the relevant instrument evidencing the agreement to issue such
Award.

            (b)   Consideration. Subject to Applicable Laws, the consideration
to be paid for the Shares to be issued upon exercise or purchase of an Award
including the method of payment, shall be determined by the Administrator. In
addition to any other types of consideration the Administrator may determine,
the Administrator is authorized to accept as consideration for Shares issued
under the Plan the following, provided that the portion of the consideration
equal to the par value of the Shares must be paid in cash or other legal
consideration permitted by the Delaware General Corporation Law:

                                       11

<PAGE>

                  (i)   cash;

                  (ii)  check;

                  (iii) if the exercise or purchase occurs on or after the
Registration Date, surrender of Shares or delivery of a properly executed form
of attestation of ownership of Shares as the Administrator may require which
have a Fair Market Value on the date of surrender or attestation equal to the
aggregate exercise price of the Shares as to which said Award shall be
exercised, provided, however, that Shares acquired under the Plan or any other
equity compensation plan or agreement of the Company must have been held by the
Grantee for a period of more than six (6) months (and not used for another Award
exercise by attestation during such period);

                  (iv)  with respect to Options, if the exercise occurs on or
after the Registration Date, payment through a broker-dealer sale and remittance
procedure pursuant to which the Grantee (A) shall provide written instructions
to a Company designated brokerage firm to effect the immediate sale of some or
all of the purchased Shares and remit to the Company sufficient funds to cover
the aggregate exercise price payable for the purchased Shares and (B) shall
provide written directives to the Company to deliver the certificates for the
purchased Shares directly to such brokerage firm in order to complete the sale
transaction; or

                  (v)   any combination of the foregoing methods of payment.

The Administrator may at any time or from time to time, by adoption of or by
amendment to the standard forms of Award Agreement described in Section
4(b)(iv), or by other means, grant Awards which do not permit all of the
foregoing forms of consideration to be used in payment for the Shares or which
otherwise restrict one or more forms of consideration.

            (c)   Taxes. No Shares shall be delivered under the Plan to any
Grantee or other person until such Grantee or other person has made arrangements
acceptable to the Administrator for the satisfaction of any non-U.S., federal,
state, or local income and employment tax withholding obligations, including,
without limitation, obligations incident to the receipt of Shares. Upon exercise
or vesting of an Award the Company shall withhold or collect from Grantee an
amount sufficient to satisfy such tax obligations, including, but not limited
too, by surrender of the whole number of Shares covered by the Award sufficient
to satisfy the minimum applicable tax withholding obligations incident to the
exercise or vesting of an Award.

      8.    Exercise of Award.

            (a)   Procedure for Exercise; Rights as a Stockholder.

                  (i)   Any Award granted hereunder shall be exercisable at such
times and under such conditions as determined by the Administrator under the
terms of the Plan and specified in the Award Agreement.

                  (ii)  An Award shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Award by the

                                       12

<PAGE>

person entitled to exercise the Award and full payment for the Shares with
respect to which the Award is exercised, including, to the extent selected, use
of the broker-dealer sale and remittance procedure to pay the purchase price as
provided in Section 7(b)(iv).

            (b)   Exercise of Award Following Termination of Continuous Service.

                  (i)   An Award may not be exercised after the termination date
of such Award set forth in the Award Agreement and may be exercised following
the termination of a Grantee's Continuous Service only to the extent provided in
the Award Agreement.

                  (ii)  Where the Award Agreement permits a Grantee to exercise
an Award following the termination of the Grantee's Continuous Service for a
specified period, the Award shall terminate to the extent not exercised on the
last day of the specified period or the last day of the original term of the
Award, whichever occurs first.

      9.    Conditions Upon Issuance of Shares.

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

            (b)   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 by any
Applicable Laws.

      10.   Adjustments Upon Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the number of Shares covered by each
outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan, the exercise or purchase price of each such
outstanding Award, the maximum number of Shares with respect to which Awards may
be granted to any Grantee in any fiscal year of the Company, as well as any
other terms that the Administrator determines require adjustment shall be
proportionately adjusted for (i) any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Shares, or similar transaction affecting
the Shares, (ii) any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company, or (iii) as the
Administrator may determine in its discretion, any other transaction with
respect to Common Stock including a corporate merger, consolidation, acquisition
of property or stock, separation (including a spin-off or other distribution of
stock or property), reorganization, liquidation (whether partial or complete) or
any similar transaction; provided, however that conversion of any convertible
securities of the Company shall not be deemed to have been "effected without
receipt of consideration." Such adjustment shall be made by the Administrator
and its determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no

                                       13

<PAGE>

adjustment by reason hereof shall be made with respect to, the number or price
of Shares subject to an Award.

      11.   Corporate Transactions and Changes in Control.

            (a)   Termination of Award to Extent Not Assumed in Corporate
Transaction. Effective upon the consummation of a Corporate Transaction, all
outstanding Awards under the Plan shall terminate. However, all such Awards
shall not terminate to the extent they are Assumed in connection with the
Corporate Transaction.

            (b)   Acceleration of Award Upon Corporate Transaction or Change in
Control. The Administrator shall have the authority, exercisable either in
advance of any actual or anticipated Corporate Transaction or Change in Control
or at the time of an actual Corporate Transaction or Change in Control and
exercisable at the time of the grant of an Award under the Plan or any time
while an Award remains outstanding, to provide for the full or partial automatic
vesting and exercisability of one or more outstanding unvested Awards under the
Plan and the release from restrictions on transfer and repurchase or forfeiture
rights of such Awards in connection with a Corporate Transaction or Change in
Control, on such terms and conditions as the Administrator may specify. The
Administrator also shall have the authority to condition any such Award vesting
and exercisability or release from such limitations upon the subsequent
termination of the Continuous Service of the Grantee within a specified period
following the effective date of the Corporate Transaction or Change in Control.
The Administrator may provide that any Awards so vested or released from such
limitations in connection with a Change in Control, shall remain fully
exercisable until the expiration or sooner termination of the Award.

      12.   Effective Date and Term of Plan. The Plan shall become effective
upon its approval by the stockholders of the Company. It shall continue in
effect for a term of ten (10) years unless sooner terminated. Subject to Section
17, below, and Applicable Laws, Awards may be granted under the Plan upon its
becoming effective.

      13.   Amendment, Suspension or Termination of the Plan.

            (a)   The Board may at any time amend, suspend or terminate the
Plan; provided, however, that no such amendment shall be made without the
approval of the Company's stockholders to the extent such approval is required
by Applicable Laws, or if such amendment would change any of the provisions of
Section 4(b)(vi) or this Section 13(a).

            (b)   No Award may be granted during any suspension of the Plan or
after termination of the Plan.

            (c)   No suspension or termination of the Plan (including
termination of the Plan under Section (a), above) shall adversely affect any
rights under Awards already granted to a Grantee.

                                       14

<PAGE>

      14.   Reservation of Shares.

            (a)   The Company, during the term of the Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

            (b)   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,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

      15.   No Effect on Terms of Employment/Consulting Relationship. The Plan
shall not confer upon any Grantee any right with respect to the Grantee's
Continuous Service, nor shall it interfere in any way with his or her right or
the right of the Company or any Related Entity to terminate the Grantee's
Continuous Service at any time, with or without Cause, and with or without
notice. The ability of the Company or any Related Entity to terminate the
employment of a Grantee who is employed at will is in no way affected by its
determination that the Grantee's Continuous Service has been terminated for
Cause for the purposes of this Plan.

      16.   No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Related Entity, Awards shall not be deemed compensation for purposes of
computing benefits or contributions under any retirement plan of the Company or
a Related Entity, and shall not affect any benefits under any other benefit plan
of any kind or any benefit plan subsequently instituted under which the
availability or amount of benefits is related to level of compensation. The Plan
is not a "Retirement Plan" or "Welfare Plan" under the Employee Retirement
Income Security Act of 1974, as amended.

      17.   Stockholder Approval. The Plan shall be subject to approval by the
stockholders of the Company. Such stockholder approval shall be obtained in the
degree and manner required under Applicable Laws.

      18.   Effect of Section 162(m) of the Code. Section 162(m) of the Code
does not apply to the Plan prior to the Registration Date. Following the
Registration Date, the Plan, and all Awards issued thereunder, are intended to
be exempt from the application of Section 162(m) of the Code, which restricts
under certain circumstances the Federal income tax deduction for compensation
paid by a public company to named executives in excess of $1 million per year.
The exemption is based on Treasury Regulation Section 1.162-27(f), in the form
existing on the effective date of the Plan, with the understanding that such
regulation generally exempts from the application of Section 162(m) of the Code
compensation paid pursuant to a plan that existed before a company becomes
publicly held. Under such Treasury Regulation, this exemption is available to
the Plan for the duration of the period that lasts until the earlier of (i) the
expiration of the Plan, (ii) the material modification of the Plan, (iii) the
exhaustion of the maximum number of shares of Common Stock available for Awards
under the Plan, as set forth in Section 3(a), (iv) the first meeting of
shareholders at which directors are to be elected that occurs after the close of
the third calendar year following the calendar year in which the Company first
becomes subject to the reporting obligations of Section 12 of the Exchange Act,
or (v) such other

                                       15

<PAGE>

date required by Section 162(m) of the Code and the rules and regulations
promulgated thereunder. To the extent that the Administrator determines as of
the date of grant of an Award that (i) the Award is intended to qualify as
Performance-Based Compensation and (ii) the exemption described above is no
longer available with respect to such Award, such Award shall not be effective
until any stockholder approval required under Section 162(m) of the Code has
been obtained.

      19.   Unfunded Obligation. Grantees shall have the status of general
unsecured creditors of the Company. Any amounts payable to Grantees pursuant to
the Plan shall be unfunded and unsecured obligations for all purposes,
including, without limitation, Title I of the Employee Retirement Income
Security Act of 1974, as amended. Neither the Company nor any Related Entity
shall be required to segregate any monies from its general funds, or to create
any trusts, or establish any special accounts with respect to such obligations.
The Company shall retain at all times beneficial ownership of any investments,
including trust investments, which the Company may make to fulfill its payment
obligations hereunder. Any investments or the creation or maintenance of any
trust or any Grantee account shall not create or constitute a trust or fiduciary
relationship between the Administrator, the Company or any Related Entity and a
Grantee, or otherwise create any vested or beneficial interest in any Grantee or
the Grantee's creditors in any assets of the Company or a Related Entity. The
Grantees shall have no claim against the Company or any Related Entity for any
changes in the value of any assets that may be invested or reinvested by the
Company with respect to the Plan.

      20.   Construction. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular. Use
of the term "or" is not intended to be exclusive, unless the context clearly
requires otherwise.

                                       16

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