Document:

Reverse Vesting Stock Option Agreement Pursuant to 2002 Stock Incentive Plan

Grant #2002- IXXX

SMARTE SOLUTIONS, INC.

2002 STOCK INCENTIVE PLAN

REVERSE VESTING STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

I.

NOTICE OF STOCK OPTION GRANT

EMPLOYEE SAMPLE

<address>

The undersigned Optionee has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows:

Date of Grant

<date>

Vesting Commencement Date

<date>

Exercise Price per Share

$x

Total Number of Shares Granted

y

Total Exercise Price

$x*y

Type of Option:

X

Incentive Stock Option

   

Nonstatutory Stock Option

Term/Expiration Date:

Tenth Anniversary of Date of Grant

Vesting Schedule:  One-fourth (1/4th) of the Shares subject to the Option shall vest on the first anniversary of the Vesting Commencement Date and an additional one-forty-eighth (1/48th) of the Shares subject to the Option shall vest on the first day of each full month thereafter until all the Shares are vested, subject to Optionee’s continuing to be a Service Provider on such dates.  

Termination Period:  This Option shall be exercisable for 90 days after Optionee ceases to be a Service Provider.  Upon Optionee’s death or disability, this Option may be exercised for such longer period as provided in the Plan.  In no event may Optionee exercise this Option after the Term/Expiration Date as provided above.

II.

AGREEMENT

1.

Grant of Option.  The Administrator of the Plan hereby grants to the Optionee named in the Notice of Grant (the “Optionee”), an option (the “Option”) to purchase the number of Shares set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”), and subject to the terms and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 15(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan shall prevail.

If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.  Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), this Option shall be treated as a Nonstatutory Stock Option (“NSO”).

2.

Exercise of Option.

(a)

Right to Exercise.  This Option shall be exercisable during its Term for up to 100% of the Shares at any time after the Date of Grant and in accordance with the applicable provisions of the Plan and this Option Agreement.

(b)

Method of Exercise.  This Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit A (the “Exercise Notice”) which shall state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares.  This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price.

No Shares shall be issued pursuant to the exercise of this Option unless such issuance and such exercise complies with Applicable Laws.  Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares.

(c)

Issuance of Option Shares.  Provided that the Exercise Notice and payment are in form and substance satisfactory to counsel for the Company, the Company shall issue the Shares registered in the name of Optionee, Optionee’s authorized assignee, or Optionee’s legal representative, and shall deposit certificates representing the Shares with the appropriate legends affixed thereto in escrow in accordance with Section 7.

3.

Optionee’s Representations.  In the event the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement.

4.

Lock-Up Period.  Optionee hereby agrees that, if so requested by the Company or any representative of the underwriters (the “Managing Underwriter”) in connection with any registration of the offering of any securities of the Company under the Securities Act, Optionee shall not sell or otherwise transfer any Shares or other securities of the Company during the 180-day period (or such other period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) (the “Market Standoff Period”) following the effective date of a registration statement of the Company filed under the Securities Act.  Such restriction shall apply only  to the first registration statement of the Company to become effective under the Securities Act that includes 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 restrictions until the end of such Market Standoff Period. 

5.

Method of Payment.  Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:

(a)

cash or check;

(b)

consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or

(c)

surrender of other Shares which, (i) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

6.

Restrictions on Exercise.  This Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any Applicable Law.

7.

Right of Repurchase.

(a)

Scope of Repurchase Right. Unless they have become vested in accordance with the Notice of Grant and Section 7(c) below, the Option Shares acquired under this Agreement initially shall be restricted (the “Restricted Shares”) and shall be subject to a right (but not an obligation) of repurchase by the Company (the “Right of Repurchase”). Optionee shall not transfer, assign, encumber or otherwise dispose of any Restricted Shares, except as provided in the following sentence. Optionee may transfer Restricted Shares (i) by beneficiary designation, will or intestate succession, (ii) to Optionee’s spouse, children or grandchildren or (iii) to a trust established by Optionee for the benefit of Optionee or Optionee’s spouse, children or grandchildren (each, a “Transferee”), provided that any Transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Agreement. If Optionee transfers any Restricted Shares, then this Section 7 shall apply to the Transferee to the same extent as to Optionee.

(b)

Condition Precedent to Exercise. The Right of Repurchase shall be exercisable with respect to any Restricted Shares only during the 60-day period next following the later of:

(i)

The date when Optionee’s Service ceases to be a Service Provider for any reason, with or without cause, including (without limitation) death or disability; or

(ii)

The date when such Restricted Shares were purchased by Optionee, the executors or administrators of Optionee’s estate or any person who has acquired this option directly from Optionee by bequest, inheritance or beneficiary designation.

(c)

Lapse of Repurchase Right. The Right of Repurchase shall lapse with respect to the Shares in accordance with the vesting schedule set forth in the Notice of Grant. In addition, the Right of Repurchase shall lapse and all of the remaining Restricted Shares shall become vested if the Options are subject to full vesting pursuant to a merger or asset sale as contemplated in Section 13(c) of the Plan before Optionee’s duties as a Service Provider terminate.

(d)

Repurchase Cost.  If the Company exercises the Right of Repurchase, it shall pay Optionee an amount equal to the Exercise Price for each of the Restricted Shares being repurchased.

(e)

Exercise of Repurchase Right. The Right of Repurchase shall be exercisable only by written notice delivered to Optionee prior to the expiration of the 60-day period specified in Section 7(b) above. The notice shall set forth the date on which the repurchase is to be effected. Such date shall not be more than thirty (30) days after the date of the notice. The certificate(s) representing the Restricted Shares to be repurchased shall, prior to the close of business on the date specified for the repurchase, be delivered to the Company properly endorsed for transfer. The Company shall, concurrently with the receipt of such certificate(s), pay to Optionee the purchase price determined according to Section 7(d) above. Payment shall be made in cash or cash equivalents or other form of payment acceptable to the Board of Directors. The Right of Repurchase shall terminate with respect to any Restricted Shares for which it has not been timely exercised pursuant to this Section 7(e).

(f)

Additional Shares or Substituted Securities. In the event of the declaration of a stock dividend, the declaration of an extraordinary dividend payable in a form other than stock, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization or a similar transaction affecting the Company’s outstanding securities without receipt of consideration, any new, substituted or additional securities or other property (including money paid other than as an ordinary cash dividend) which are by reason of such transaction distributed with respect to any Restricted Shares or into which such Restricted Shares thereby become convertible shall immediately be subject to the Right of Repurchase. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of the Restricted Shares. Appropriate adjustments shall also, after each such transaction, be made to the price per share to be paid upon the exercise of the Right of Repurchase in order to reflect any change in the Company’s outstanding securities effected without receipt of consideration therefor; provided, however, that the aggregate purchase price payable for the Restricted Shares shall remain the same. 

(g)

Termination of Rights as Stockholder. If the Company makes available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Restricted Shares to be repurchased in accordance with this Section 7, then after such time the person from whom such Restricted Shares are to be repurchased shall no longer have any rights as a holder of such Restricted Shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such Restricted Shares shall be deemed to have been repurchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Agreement.

(h)

Escrow. Upon issuance, the certificates for Restricted Shares shall be deposited in escrow with the Company to be held in accordance with the provisions of this Agreement. Any new, substituted or additional securities or other property described in Section 7(f) above shall immediately be delivered to the Company to be held in escrow, but only to the extent the Shares are at the time Restricted Shares. All regular cash dividends on Restricted Shares (or other securities at the time held in escrow) shall be paid directly to Optionee and shall not be held in escrow. Restricted Shares, together with any other assets or securities held in escrow hereunder, shall be (i) surrendered to the Company for repurchase and cancellation upon the Company’s exercise of its Right of Repurchase or Right of First Refusal or (ii) released to Optionee upon Optionee’s request to the extent the Shares are no longer Restricted Shares (but not more frequently than once every twelve (12) months). In any event, all Shares which have vested (and any other vested assets and securities attributable thereto) shall be released within sixty (60) days after the earlier of (i) Optionee’s cessation of Service or (ii) the lapse of the Right of First Refusal.

8.

Non-Transferability of Option.  This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by Optionee.  The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

9.

Term of Option.  This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

10.

Tax Consequences.  Set forth below is a brief summary as of the date of this Option of some of the federal tax consequences of exercise of this Option and disposition of the Shares.  THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

(a)

Exercise of ISO.  If this Option qualifies as an ISO, there will be no regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as an adjustment to the alternative minimum tax for federal tax purposes and may subject the Optionee to the alternative minimum tax in the year of exercise.  The U.S. Treasury Department has proposed regulations that, if adopted as final regulations, would cause the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price to be subjected to payroll tax liability in the year of exercise.

(b)

Exercise of ISO Following Disability.  If the Optionee ceases to be an Employee as a result of a disability that is not a total and permanent disability as defined in Section 22(e)(3) of the Code, to the extent permitted on the date of termination, the Optionee must exercise an ISO within three months of such termination for the ISO to be qualified as an ISO.

(c)

Exercise of NSO.  There may be a regular federal income tax liability upon the exercise of an NSO.  The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price.  If Optionee is an Employee or a former Employee, the Company will be required to withhold from Optionee’s compensation or collect from Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.

(d)

Disposition of Shares.  In the case of an NSO, if Shares are held for at least one year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes.  In the case of an ISO, if Shares transferred pursuant to the Option are held for at least one year after exercise and for at least two years after the Date of Grant, any gain realized on disposition of the Shares will also be treated as long-term capital gain for federal income tax purposes.  If Shares purchased under an ISO are disposed of within one year after exercise or two years after the Date of Grant, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (1) the Fair Market Value of the Shares on the date of exercise, or (2) the sale price of the Shares.  Any additional gain will be taxed as capital gain, short-term or long-term depending on the period that the ISO Shares were held.

(e)

Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition.  Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee.

11.

Entire Agreement; Governing Law.  The Plan is incorporated herein by reference.  The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee.  This agreement is governed by the internal substantive laws but not the choice of law rules of the State of Delaware.

12.

No Guarantee of Continued Service.  OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

13.

Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof.  Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the Option.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option.  Optionee further agrees to notify the Company upon any change in the residence address indicated below.

SMARTE SOLUTIONS, INC.

OPTIONEE

By:

Name:

(Signature)

Title

S-1

SCHEDULE OF OPTION GRANTS

	Optionee

	Option Type

	Granted Options 

	Outstanding Options

	Option Price

	Shapiro, Michael

	NSO

	200,000

	0

	$0.05 

	Dye, Thomas

	NSO

	200,000

	0

	$0.05 

	Murphy, Kenneth W.

	NSO

	250,000

	0

	$0.05 

	Webber, Neil

	NSO

	50,000

	0

	$0.05 

	Wall, Craig J.

	NSO

	67,500

	0

	$0.05 

	Taylor, Lewis A. III

	NSO

	67,500

	0

	$0.05 

	Bernard Group

	NSO

	20,000

	0

	$0.05 

	Rodgers, Kelly

	NSO

	40,000

	0

	$0.05 

	Tatum CFO

	NSO

	5,000

	0

	$0.05 

	Lynch, Jack

	NSO

	150,000

	0

	$0.05 

	Kotwas, Matt

	NSO

	100,000

	0

	$0.05 

	Anderson, Rick

	NSO

	25,000

	0

	$0.05 

	Kearns, Terry

	NSO

	40,000

	0

	$0.05 

	Lall, Sanjay

	NSO

	30,000

	0

	$0.05 

	Mahajan, Vijay

	NSO

	20,000

	0

	$0.05 

	Seges Consultants, Inc.

	NSO

	6,000

	0

	$0.05 

	Virutal CFO

	NSO

	5,000

	0

	$0.05 

	Vishwanath, Bala

	ISO

	150,000

	12,500

	$0.05 

	Shapiro, Michael

	ISO

	450,000

	0

	$0.05 

	Eshelman, Mark

	ISO

	150,000

	150,000

	$0.05 

	Apt, Ira

	NSO

	7,500

	0

	$0.05 

	O’Brien, Shawn

	ISO

	85,000

	35,000

	$0.05 

	Eshelman, John

	ISO

	40,000

	0

	$0.05 

	Veeramani, Uma

	ISO

	50,000

	0

	$0.05 

	Saraff, Surya

	ISO

	50,000

	20,000

	$0.05 

	Thomas, Brooke

	ISO

	40,000

	0

	$0.05 

	Lane, Penny

	ISO

	200,000

	0

	$0.05 

	Barger, Jim

	ISO

	80,000

	0

	$0.05 

	Mantz, Brian

	ISO

	100,000

	100,000

	$0.05 

	Porbandarwala, Nimesh

	ISO

	75,000

	75,000

	$0.05 

	Roberts, James

	ISO

	100,000

	50,000

	$0.05 

	McKeand, Kevin

	NSO

	30,000

	0

	$0.05 

	Mardaga, William Jeffrey

	NSO

	75,000

	0

	$0.05 

	Eshelman, Michael

	NSO

	75,000

	0

	$0.05 

	Eshelman, John

	ISO

	30,000

	0

	$0.05 

	Kotwas, Matt

	NSO

	25,000

	0

	$0.05 

	Adams, Anthony

	ISO

	40,000

	0

	$0.05 

	McAllister, Scott

	NSO

	35,000

	0

	$0.05 

	Maples, Michael J.

	NSO

	50,000

	0

	$0.05 

	Commagere, Blake

	ISO

	40,000

	0

	$0.05 

	Eshelman, Michael

	NSO

	33,000

	0

	$0.05 

	Parrish, Jason

	ISO

	753,480

	0

	$0.05 

	Parrish, Jason

	ISO

	150,000

	0

	$0.05 

	Guyton, Ben

	ISO

	20,000

	0

	$0.05 

	Vishwanath, Bala

	ISO

	150,000

	121,875

	$0.05 

	Gullapalli, Neelima

	ISO

	60,000

	0

	$0.05 

	Enright, Todd

	ISO

	150,000

	150,000

	$0.05 

	Eshelman, Mark

	ISO

	150,000

	150,000

	$0.05 

	Porbandarwala, Nimesh

	ISO

	75,000

	75,000

	$0.05 

	Cowie, Nigel

	NSO

	75,000

	0

	$0.05 

	Humphrey, Michael

	ISO

	300,000

	31,250

	$0.05 

	Valentino, David

	ISO

	125,000

	0

	$0.05 

	Guyton, Ben

	ISO

	10,000

	0

	$0.05 

	Gullapalli, Neelima

	ISO

	10,000

	0

	$0.05 

	Vishwanath, Bala

	ISO

	170,000

	148,750

	$0.05 

	Thomas, Brooke

	ISO

	10,000

	0

	$0.05 

	Virtual CFO

	NSO

	5,000

	5,000

	$0.05 

	Clarke, Anthony

	NSO

	50,000

	50,000

	$0.05 

	Deighton, Richard

	NSO

	75,000

	75,000

	$0.05 

	Mantz, Brian

	ISO

	15,000

	15,000

	$0.05 

	Roberts, James

	ISO

	10,000

	625

	$0.05 

	Gottlieb, Jerry

	ISO

	500,000

	500,000

	$0.05 

	Murphy, Kenneth

	NSO

	100,000

	100,000

	$0.05 

	Eshelman, Mark

	ISO

	170,000

	170,000

	$0.05 

	O'Brien, Shawn

	ISO

	20,000

	20,000

	$0.05 

	Saraff, Surya

	ISO

	20,000

	20,000

	$0.05 

	Enright, Todd

	ISO

	200,000

	200,000

	$0.05 

	Veeramani, Uma

	ISO

	20,000

	20,000

	$0.05 

	Jason, Parrish

	NSO

	280,000

	58,334

	$0.05 

	Ford, John

	ISO

	125,000

	0

	$0.05 

	Malmstedt, David

	ISO

	150,000

	0

	$0.05 

	Agrawal, Puru

	ISO

	30,000

	0

	$0.05 

	Gere, Wes

	ISO

	30,000

	0

	$0.05 

	Pham, Trieu

	ISO

	30,000

	0

	$0.05 

	Moreland, Steve

	NSO

	25,000

	25,000

	$0.05 

	

TOTAL

	 	

7,349,980

	

2,378,334Vincera, Inc. 2002 Stock Option Exercise Agreement Pursuant to 2002 Stock Incentive Plan

SMARTE
SOLUTIONS, INC.

2002 STOCK INCENTIVE PLAN

STOCK OPTION EXERCISE AGREEMENT

This Stock Option Exercise Agreement (the “Exercise Agreement”) is made and entered into as of _________________________ (the “Effective Date”) by and between Smarte Solutions, Inc., a Delaware corporation (the “Company”), and the purchaser named below (the “Purchaser”).  Capitalized terms not defined herein shall have the meanings ascribed to them in Smarte Solutions, Inc.’s 2002 Stock Incentive Plan (the “Plan”) or the Stock Option Agreement.

Participant:

 

Social Security Number:

 

Address:

 

Option Shares Being Purchased:

 

Exercise Price Per Share:

 

Date of Grant:

 

Expiration Date:

 

Type of Stock Option:

[  ]  Incentive Stock Option

[  ]  Nonqualified Stock Option

1.

Exercise of Option.

1.1.

Exercise.  Pursuant to exercise of that certain option (the “Option”) granted to Purchaser under the Plan and the Stock Option Agreement and subject to the terms and conditions of this Exercise Agreement, Purchaser hereby purchases from the Company, and the Company hereby sells to Purchaser, the Total Number of Shares set forth above (the “Shares”) of the Company’s Common Stock at the Exercise Price Per Share set forth above (the “Exercise Price”).  As used in this Exercise Agreement, the term “Shares” refers to the Shares purchased under this Exercise Agreement and includes all securities received (a) in replacement of the Shares, (b) as a result of stock dividends or stock splits with respect to the Shares, and (c) all securities received in replacement of the Shares in a merger, recapitalization, reorganization or similar corporate transaction.

1.2.

Title to Shares.  The exact spelling of the name(s) under which Purchaser will take title to the Shares is: 

Purchaser desires to take title to the Shares as follows:

[  ]

Individual, as separate property

[  ]

Husband and wife, as community property

[  ]

Joint Tenants

[  ]

Other; please specify:

1.3.

Payment.  Purchaser hereby delivers payment of the Exercise Price in cash (by check), whether or not acquired through a loan from the Company, in the amount of $______________, receipt of which is acknowledged by the Company.

2.

Delivery.

2.1.

Deliveries by Purchaser.  Purchaser hereby delivers to the Company (a) this Exercise Agreement, (b) if Purchaser is married, a consent of spouse in the form of Exhibit A attached hereto executed by Purchaser’s spouse, (c) the Exercise Price and payment or other provision for any applicable tax obligations in the form of a check, or a secured full recourse promissory note (“Note”) and (d) if the Purchaser has provided a Note for exercise of the Shares, a stock pledge agreement executed by Purchaser (“Pledge Agreement”) and two (2) copies of a blank stock power (“Stock Power”), both executed by Purchaser (and Purchaser’s spouse, if any).  

2.2.

Deliveries by the Company.  Upon its receipt of the Exercise Price, payment or other provision for any applicable tax obligations and all the documents to be executed and delivered by Purchaser to the Company under Section 2.1 hereof, the Company will issue a duly executed stock certificate evidencing the Shares in the name of Purchaser, provided, however, if the Purchaser has (a) provided a Note for exercise of the Shares, such stock certificate shall be placed in escrow as provided in Section 10 hereof to secure payment of Purchaser’s obligation under the Note, or (b) exercised the Shares at any time prior to full vesting, such stock certificate shall be placed in escrow as provided in Section 7 of the Stock Option Agreement.

3.

Representations and Warranties of Purchaser.  Purchaser represents and warrants to the Company that:

3.1.

Agrees to Terms of the Plan.  Purchaser has received a copy of the Plan and the Stock Option Agreement, has read and understands the terms of the Plan, the Stock Option Agreement and this Exercise Agreement, and agrees to be bound by their terms and conditions.  Purchaser acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the Shares, and that Purchaser should consult a tax advisor prior to such exercise or disposition.

3.2.

Purchase for Own Account for Investment.  Purchaser is purchasing the Shares for Purchaser’s own account for investment purposes only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the Securities Act.  Purchaser has no present intention of selling or otherwise disposing of all or any portion of the Shares and no one other than Purchaser has any beneficial ownership of any of the Shares.

3.3.

Access to Information.  Purchaser has had access to all information regarding the Company and its present and prospective business, assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase the Shares, and Purchaser has had ample opportunity to ask questions of the Company’s representatives concerning such matters and this investment.

3.4.

Understanding of Risks.  Purchaser is fully aware of:  (a) the highly speculative nature of the investment in the Shares; (b) the financial hazards involved; (c) the lack of liquidity of the Shares and the restrictions on transferability of the Shares (e.g., that Purchaser may not be able to sell or dispose of the Shares or use them as collateral for loans); (d) the qualifications and backgrounds of the management of the Company; and (e) the tax consequences of investment in the Shares.  Purchaser is capable of evaluating the merits and risks of this investment, has the ability to protect Purchaser’s own interests in this transaction and is financially capable of bearing a total loss of this investment.

3.5.

No General Solicitation.  At no time was Purchaser presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and purchase of the Shares.

4.

Compliance with Securities Laws.  Purchaser understands and acknowledges that the Shares have not been registered with the SEC under the Securities Act and that, notwithstanding any other provision of the Stock Option Agreement to the contrary, the exercise of any rights to purchase any Shares is expressly conditioned upon compliance with the Securities Act and all applicable state securities laws.  Purchaser agrees to cooperate with the Company to ensure compliance with such laws. 

5.

Restricted Securities.

5.1.

No Transfer Unless Registered or Exempt.  Purchaser understands that Purchaser may not transfer any Shares unless such Shares are registered under the Securities Act or qualified under applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration and qualification requirements are available.  Purchaser understands that only the Company may file a registration statement with the SEC and that the Company is under no obligation to do so with respect to the Shares.  Purchaser has also been advised that exemptions from registration and qualification may not be available or may not permit Purchaser to transfer all or any of the Shares in the amounts or at the times proposed by Purchaser.

5.2.

SEC Rule 144.  In addition, Purchaser has been advised that SEC Rule 144 promulgated under the Securities Act, which permits certain limited sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares be held for a minimum of one (1) year, and in certain cases two (2) years, after they have been purchased and paid for (within the meaning of Rule 144).  Purchaser understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Purchaser remains an “affiliate” of the Company or if “current public information” about the Company (as defined in Rule 144) is not publicly available.

5.3.

SEC Rule 701.  If the Shares are issued pursuant to SEC Rule 701 promulgated under the Securities Act, the Shares may become freely tradeable by non-affiliates (under limited conditions regarding the method of sale) ninety (90) days after the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the SEC, subject to the lengthier market standoff agreement contained in Section 7 hereof or any other agreement entered into by Purchaser.  Affiliates must comply with the provisions (in addition to the holding period requirements) of Rule 144.

6.

Restrictions on Transfers.

6.1.

Disposition of Shares.  Purchaser hereby agrees that Purchaser shall make no disposition of the Shares (other than as permitted by this Exercise Agreement) unless and until:

(a)

Purchaser shall have notified the Company of the proposed disposition and provided a written summary of the terms and conditions of the proposed disposition;

(b)

Purchaser shall have complied with all requirements of this Exercise Agreement applicable to the disposition of the Shares;

(c)

Purchaser shall have provided the Company with written assurances, in form and substance satisfactory to counsel for the Company, that (i) the proposed disposition does not require registration of the Shares under the Securities Act or (ii) all appropriate actions necessary for compliance with the registration requirements of the Securities Act or of any exemption from registration available under the Securities Act (including Rule 144) have been taken; and

(d)

Purchaser shall have provided the Company with written assurances, in form and substance satisfactory to the Company, that the proposed disposition will not result in the contravention of any transfer restrictions applicable to the Shares pursuant to the provisions of Section 4 hereof.

6.2.

Restriction on Transfer.  Purchaser shall not transfer, assign, grant a lien or security interest in, pledge, hypothecate, encumber or otherwise dispose of any of the Shares which are subject to the Company’s Repurchase Option or the Company’s Right of First Refusal described below, except as permitted by this Exercise Agreement.

6.3.

Transferee Obligations.  Each person (other than the Company) to whom the Shares are transferred by means of one of the permitted transfers specified in this Exercise Agreement must, as a condition precedent to the validity of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Exercise Agreement and that the transferred Shares are subject to (a) both the Company’s Repurchase Option and the Company’s Right of First Refusal granted hereunder and (b) the market stand-off provisions of Section 7 hereof, to the same extent such Shares would be so subject if retained by the Purchaser.

7.

Market Standoff Agreement.  In the case of the initial underwritten public offering by the Company of shares of Common Stock, if the officers and directors of the Company agree not to effect any disposition of any equity security of the Company or of any security convertible into or exchangeable or exercisable for any equity security of the Company (in each case, other than as part of such underwritten public offering), Purchaser agrees to the same during the one hundred eighty (180) day period (or such longer period as may be reasonably requested by the underwriter of such offering) beginning on the effective date of such registration statement (except as a part of such registration), provided that Purchaser has received written notice of such registration prior to such effective date; provided, however, that any waiver of the foregoing restriction by the Company or the Company’s underwriters shall apply to all persons subject to such restrictions pro rata based on the number of shares of Company capital stock owned.

8.

Company’s Right of First Refusal.  Before any Shares held by Purchaser or any transferee of such Shares (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred by gift (including without limitation any transfer by (a) an assignment of any Shares for the benefit of creditors of the Holder, (b) a transfer by operation of law, (c) an execution of judgment against the Shares or the acquisition of record or beneficial ownership of Shares by a lender or creditor, (d) a transfer by will or under the laws of descent and distribution, (e) a transfer pursuant to any decree of divorce, dissolution or separate maintenance, any property settlement, any separation agreement or any other agreement with a spouse (except for bona fide estate planning purposes) under which any Shares are transferred or awarded to the spouse of the Holder or are required to be sold, or (f) a transfer resulting from the filing by the Holder of a petition for relief or the filing of an involuntary petition against Holder, under the bankruptcy laws of the United States or of any other nation (each instance referred to hereafter as the “Involuntary Transfer”)), the Company and/or its assignee(s) shall have an assignable right of first refusal to purchase the Shares to be sold or transferred (the “Offered Shares”) on the terms and conditions set forth in this Section (the “Right of First Refusal”).  

8.1.

Notice of Proposed Transfer.  In the event the Holder proposes to transfer any Shares, other than by an Involuntary Transfer, the Holder of the Offered Shares shall deliver to the Company a written notice (the “Voluntary Transfer Notice”) stating:  (a) the Holder’s bona fide intention to sell or otherwise transfer the Offered Shares; (b) the name of each proposed bona fide purchaser or other transferee (the “Proposed Transferee”); (c) the number of Offered Shares to be transferred to each Proposed Transferee; (d) the bona fide cash price or other consideration for which the Holder proposes to transfer the Offered Shares (the “Offered Price”); and (e) that the Holder acknowledges this Notice is an offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to the Company’s Right of First Refusal at the Offered Price as provided for in this Exercise Agreement.  In the event of any Involuntary Transfer of any Vested Shares, the Holder shall deliver to the Company a written notice (the “Involuntary Transfer Notice”) stating:  (a) the number of Shares subject to the Involuntary Transfer, (b) the manner, circumstances and date of the Involuntary Transfer, and (c) the name and address of the Holder and transferee.  If the Company subsequently requests additional information concerning the Involuntary Transfer or transferee, Holder agrees to promptly provide the requested information to the Company.

8.2.

Exercise of Right of First Refusal.  At any time within thirty (30) days after the date of the Voluntary Transfer Notice or the Involuntary Transfer Notice (either being sometimes referred to herein as the “Notice”), the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all) the Offered Shares proposed to be transferred to any one or more of the Proposed Transferees named in the Notice, at the purchase price, determined as specified below.

8.3.

Purchase Price.  The purchase price for the Offered Shares purchased under this Section will be the Offered Price.  If no price or other legal consideration is to be paid for the Shares, the transfer will be referred to as a “Donative Transfer”.  If the Offered Price includes consideration other than cash, then the cash equivalent value of the non-cash consideration shall conclusively be deemed to be the present Fair Market Value of such non-cash consideration as conclusively determined in good faith by the Board.  In the case of a Donative Transfer or an Involuntary Transfer, the Offered Price to be paid to the Holder by the Company or its assignee will be the Fair Market Value on the proposed transfer date, as conclusively determined in good faith by the Board.

8.4.

Payment.  Payment of the Offered Price will be payable, at the option of the Company and/or its assignee(s) (as applicable), by check or by cancellation of all or a portion of any outstanding indebtedness owed by the Holder to the Company (or to such assignee, in the case of a purchase of Offered Shares by such assignee) or by a promissory note, not to exceed five (5) years and with an interest rate equal to at least the applicable federal rate as defined in Section 1274(d) of the Code or any combination thereof.  If the Company elects to pay by check, the Offered Price will be paid without interest within ninety (90) days after the Company’s receipt of the Notice, or, at the option of the Company and/or its assignee(s), in the manner and at the time(s) set forth in the Notice.

8.5.

Holder’s Right to Transfer.  If all of the Offered Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Offered Shares to that Proposed Transferee at the Offered Price or at a higher price, provided, however, (a) such sale or other transfer is consummated within one hundred twenty (120) days after the date of the Notice, (b) any such sale or other transfer is effected in compliance with all applicable securities laws, and (c) the Proposed Transferee agrees in writing that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee.  If the Offered Shares described in the Notice are not transferred to the Proposed Transferee within such one hundred twenty (120) day period, then a new Notice must be given to the Company pursuant to which the Company will again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

8.6.

Exempt Transfers.  Notwithstanding anything to the contrary in this Section, the following transfers of Shares will be exempt from the Right of First Refusal: (a) the transfer of any or all of the Shares during Purchaser’s lifetime by gift or on Purchaser’s death by will or intestacy to Purchaser’s “Immediate Family” (as defined below) or to a trust for the benefit of Purchaser or Purchaser’s Immediate Family, provided that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Shares in the hands of such transferee or other recipient; (b) any transfer of Shares made pursuant to a statutory merger or statutory consolidation of the Company with or into another corporation or corporations (except that the Right of First Refusal will continue to apply thereafter to such Shares, in which case the surviving corporation of such merger or consolidation shall succeed to the rights of the Company under this Section unless the agreement of merger or consolidation expressly otherwise provides); or (c) any transfer of Shares pursuant to the winding up and dissolution of the Company.  As used herein, the term “Immediate Family” will mean Purchaser’s spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child, grandchild or adopted grandchild of the Purchaser or the Purchaser’s spouse, or the spouse of any child, adopted child, grandchild or adopted grandchild of Purchaser or the Purchaser’s spouse. 

8.7.

Termination of Right of First Refusal.  The Company’s Right of First Refusal will terminate when the Company’s securities become publicly traded.

9.

Rights as a Stockholder.  Subject to the terms and conditions of this Exercise Agreement, Purchaser will have all of the rights of a stockholder of the Company with respect to the Shares from and after the date that Shares are issued to Purchaser until such time as Purchaser disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Right of First Refusal.  Upon an exercise of the Right of First Refusal, Purchaser will have no further rights as a holder of the Shares so purchased upon such exercise, other than the right to receive payment for the Shares so purchased in accordance with the provisions of this Exercise Agreement, and Purchaser will promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company for transfer or cancellation.

10.

Escrow.  If the Purchaser has provided a Note for exercise of the Shares, as security for Purchaser’s faithful performance of this Exercise Agreement, Purchaser agrees, immediately upon receipt of the stock certificate(s) evidencing the Shares, to deliver such certificate(s), together with the Stock Powers executed by Purchaser and by Purchaser’s spouse, if any (with the date and number of Shares left blank), to the Secretary of the Company or other designee of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) and Stock Powers in escrow and to take all such actions and to effectuate all such transfers and/or releases of such Shares as are in accordance with the terms of this Exercise Agreement.  Purchaser and the Company agree that Escrow Holder will not be liable to any party to this Exercise Agreement (or to any other party) for any actions or omissions unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Exercise Agreement.  Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court with respect to the transactions contemplated by this Exercise Agreement.  The Shares will remain in escrow so long as they are subject to the Pledge Agreement.

11.

Restrictive Legends and Stop-Transfer Orders.

11.1.

Legends.  Purchaser understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s) evidencing the Shares, together with any other legends that may be required by state or U.S. Federal securities laws, the Company’s Certificate of Incorporation or Bylaws, any other agreement between Purchaser and the Company or any agreement between Purchaser and any third party:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING THE RIGHT OF FIRST REFUSAL OPTION HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION EXERCISE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES.  SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS INCLUDING THE RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

11.2.

Stop-Transfer Instructions. Purchaser agrees that, to ensure compliance with the restrictions imposed by this Exercise Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

11.3.

Refusal to Transfer.  The Company will not be required (a) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Agreement or (b) to treat as owner of such Shares, or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares have been so transferred.

12.

Tax Consequences.  PURCHASER UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF PURCHASER’S PURCHASE OR DISPOSITION OF THE SHARES.  PURCHASER REPRESENTS:  (a) THAT PURCHASER HAS CONSULTED WITH ANY TAX ADVISOR THAT PURCHASER DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND (b) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. 

13.

Compliance with Laws and Regulations.  The issuance and transfer of the Shares will be subject to and conditioned upon compliance by the Company and Purchaser with all applicable state, local and U.S. Federal laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Company’s Common Stock may be listed or quoted at the time of such issuance or transfer.

14.

Successors and Assigns.  The Company may assign any of its rights under this Exercise Agreement, including its rights to purchase Shares under the Right of First Refusal.  This Exercise Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Exercise Agreement will be binding upon Purchaser and Purchaser’s heirs, executors, administrators, legal representatives, successors and assigns.

15.

Governing Law; Severability.  This Exercise Agreement shall be governed by and construed in accordance with the laws of the State of Texas without giving effect to its conflict of law principles.  If any provision of this Exercise Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

16.

Notices.  Any notice required to be given or delivered to the Company shall be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered to Purchaser shall be in writing and addressed to Purchaser at the address indicated above or to such other address as Purchaser may designate in writing from time to time to the Company.  All notices shall be deemed effectively given upon personal delivery, (a) five (5) days after deposit in the United States mail by certified or registered mail (return receipt requested), (b) two (2) business day after its deposit with any return receipt express courier (prepaid), or (c) one (1) business day after transmission by facsimile.

17.

Further Instruments.  The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Exercise Agreement.

18.

Headings.  The captions and headings of this Exercise Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Exercise Agreement.  

19.

Entire Agreement.  The Plan, the Stock Option Agreement and this Exercise Agreement, together with all Exhibits thereto, constitute the entire agreement and understanding of the parties with respect to the subject matter of this Exercise Agreement, and supersede all prior understandings and agreements, whether oral or written, between the parties hereto with respect to the specific subject matter hereof.  If there is any inconsistency between the terms of this Exercise Agreement and the terms of the Plan and Stock Option Agreement, the terms of the Plan and Stock Option Agreement shall govern and control.

IN WITNESS WHEREOF, the Company has caused this Exercise Agreement to be executed in triplicate by its duly authorized representative and Purchaser has executed this Exercise Agreement in triplicate as of the Effective Date, indicated above.

SMARTE SOLUTIONS, INC.

By:    Name:  Title:

 

PARTICIPANT:
<signature> Printed Name:

SCHEDULE OF EXERCISED STOCK OPTIONS

	Optionee

	Type

	Option Price

	Exercise Shares

	Exercise Date

	Amount Paid

	O’Brien, Shawn

	ISO

	$0.05 

	50,000

	12/19/2002

	$2,500

	Webber, Neil

	NSO

	$0.05 

	50,000

	6/25/2003

	$2,500

	Wall, Craig J.

	NSO

	$0.05 

	67,500

	6/27/2003

	$3,375

	Taylor, Lewis A. III

	NSO

	$0.05 

	67,500

	7/7/2003

	$3,375

	Eshelman, John

	ISO

	$0.05 

	40,000

	7/16/2003

	$2,000

	Eshelman, John

	ISO

	$0.05 

	30,000

	7/16/2003

	$1,500

	Bernard Group

	NSO

	$0.05 

	20,000

	8/11/2003

	$1,000

	Martaga, William Jeffrey

	NSO

	$0.05 

	75,000

	8/12/2003

	$3,750

	McKeand, Kevin

	NSO

	$0.05 

	30,000

	9/19/2003

	$1,500

	Rodgers, Kelly

	NSO

	$0.05 

	40,000

	10/20/2003

	$2,000

	Murphy, Kenneth W.

	NSO

	$0.05 

	250,000

	11/5/2003

	$12,500

	Tatum CFO

	NSO

	$0.05 

	5,000

	11/24/2003

	$250

	Lynch, Jack

	NSO

	$0.05 

	150,000

	11/25/2003

	$7,500

	Kotwas, Matt

	NSO

	$0.05 

	100,000

	11/26/2003

	$5,000

	Kotwas, Matt

	NSO

	$0.05 

	25,000

	11/26/2003

	$1,250

	Eshelman, Michael

	NSO

	$0.05 

	75,000

	12/10/2003

	$3,750

	Shapiro, Michael

	NSO

	$0.05 

	200

	2/25/2004

	$10

	McAllister, Scott

	NSO

	$0.05 

	35,000

	5/1/2004

	$1,750

	Maples, Michael J.

	NSO

	$0.05 

	50,000

	6/15/2004

	$2,500

	Eshelman, Michael

	NSO

	$0.05 

	33,000

	7/13/2004

	$1,650 

	Veeramani, Uma

	ISO

	$0.05 

	50,000

	7/27/2004

	$2,500

	Parrish, Jason

	ISO

	$0.05 

	209,300

	7/27/2004

	$10,465

	Parrish, Jason

	ISO

	$0.05 

	12,500

	7/27/2004

	$635

	Saraff, Surya

	ISO

	$0.05 

	30,000

	8/28/2004

	$1,500

	Guyton, Ben

	ISO

	$0.05 

	
  6,042

	8/31/2004

	
  $302

	Gullapalli, Neelima

	ISO

	$0.05 

	625

	9/3/2004

	$31

	Vishwanath, Bala

	ISO

	$0.05 

	137,500

	9/9/2004

	$6,875

	Vishwanath, Bala

	ISO

	$0.05 

	28,125

	9/9/2004

	$1,406

	Vishwanath, Bala

	ISO

	$0.05 

	21,250

	9/9/2004

	$1,063

	Thomas, Brooke

	ISO

	$0.05 

	
  20,625

	9/12/2004

	
  $1,031

	Malmstedt, David

	ISO

	$0.05 

	150,000

	9/13/2004

	$7,500

	Agrawal, Puru

	ISO

	$0.05 

	30,000

	9/13/2004

	$1,500

	Gere, Wes

	ISO

	$0.05 

	30,000

	9/13/2004

	$1,500

	Pham, Trieu

	ISO

	$0.05 

	30,000

	9/13/2004

	$1,500

	TOTAL

			1,949,167

		$97,468

EXHIBIT A

Spouse Consent

A-1

SPOUSE CONSENT

The undersigned spouse of ____________________________ (the “Purchaser”) has read, understands, and hereby approves the Stock Option Exercise Agreement (the “Agreement”) between Purchaser and Smarte Solutions, Inc., a Delaware corporation (the “Company”).  In consideration of the Company’s granting my spouse the right to purchase the Shares as set forth in the Agreement, the undersigned hereby agrees to be irrevocably bound by the Agreement and further agrees that any community property interest I may have in the Shares shall similarly be bound by the Agreement.  The undersigned hereby appoints Purchaser as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement.

Dated: 

SPOUSE

(Signature)

Printed Name

Address: 

A-2

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