Document:

Prepared by R.R. Donnelley Financial -- Bluelark Systems, Inc. 2000 Equity Incentive Plan

 EXHIBIT 10.4 
  
 BLUELARK SYSTEMS, INC. 
  
 2000 EQUITY INCENTIVE PLAN 
  
 1. PURPOSE. 
  
 (a) The purpose of the Plan is to provide a means by which selected Employees and Directors of and Consultants to the Company, and its Affiliates,
may be given an opportunity to benefit from increases in value of the stock of the Company through the granting of (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) stock bonuses, (iv) rights to purchase restricted stock, and (v)
stock appreciation rights, all as defined below. 
  
 (b)
The Company, by means of the Plan, seeks to retain the services of persons who are now Employees or Directors of or Consultants to the Company or its Affiliates, to secure and retain the services of new Employees, Directors and Consultants, and
to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
  
 (c) The Company intends that the Stock Awards issued under the Plan shall, in the discretion of the Board or any Committee to which responsibility
for administration of the Plan has been delegated pursuant to subsection 3(c), be either (i) Options granted pursuant to Section 6 hereof, including Incentive Stock Options and Nonstatutory Stock Options, (ii) stock bonuses or rights to purchase
restricted stock granted pursuant to Section 7 hereof, or (iii) stock appreciation rights granted pursuant to Section 8 hereof. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant,
and in such form as issued pursuant to Section 6, and a separate certificate or certificates will be issued for shares purchased on exercise of each type of Option. 
  

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 2. DEFINITIONS. 
  
 (a) “Affiliate” means any parent corporation or subsidiary corporation. whether now or hereafter existing, as those terms are
defined in Sections 424(e) and (f) respectively, of the Code. 
  
 (b) “Board” means the Board of Directors of the Company. 
  
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d) “Committee” means a Committee appointed by the Board in accordance with subsection 3(c) of the Plan. 
  
 (e) “Company” means B1ueLark Systems, Inc., a
California corporation. 
  
 (f) “Concurrent Stock
Appreciation Right” or “Concurrent Right” means a right granted pursuant to subsection 8(b)(2) of the Plan. 
  
 (g) “Consultant” means any person, including an advisor, engaged by the Company or an Affiliate to render services and who is compensated
for such services, who provides bona fide services not related to securities offers or sales in capital-raising transactions, provided that the term “Consultant” shall not include Directors who are paid only a director’s fee by the
Company or who are not compensated by the Company for their services as Directors, 
  
 (h) “Continuous Status as an Employee, Director or Consultant” means the employment or relationship as a Director or Consultant is not interrupted or terminated by the Company or any Affiliate.
The Board, in its sole discretion, may determine whether Continuous Status as an Employee, Director or Consultant shall be considered interrupted in the case of (i) any leave of absence approved by the Board, including sick leave, military leave, or
any other personal leave; or (ii) transfers between locations of the Company or between the Company, Affiliates or their successors. 
  

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 (i) “Director” means a member of the Board. 
  
 (j) “Disinterested Person” means a Director: (i) who
was not during the one year prior to service as an administrator of the Plan granted or awarded equity securities pursuant to the Plan or any other plan of the Company or any of its affiliates entitling the participants therein to acquire equity
securities of the Company or any of its affiliates except as permitted by Rule 16b-3(c)(2)(i); or (ii) who is otherwise considered to be a “disinterested person” in accordance with Rule 16b-3(c)(2)(i), or any other applicable rules,
regulations or interpretations of the Securities and Exchange Commission. 
  
 (k) “Employee” means any person, including Officers and Directors, employed by the Company or any Affiliate of the Company. Neither service as a Director nor payment of a director’s fee by
the Company shall be sufficient to constitute “employment” by the Company. 
  
 (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (m) “Fair Market Value” means the value of the common stock as determined in good faith by the Board in a manner consistent with
Section 260.140.50 of Title 10 of the California Code of Regulations. 
  
 (n) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
  
 (o) “Independent Stock Appreciation Right” or
“Independent Right” means a right granted under subsection 8(b)(3) of the Plan. 
  
 (p) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
  

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 (q) “Officer” means a person who is an officer of the Company within the meaning
of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (r) “Option” means a stock option granted pursuant to the Plan. 
  
 (s) “Option Agreement” means a written agreement between the Company and an Optionee evidencing the terms and conditions of an
individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 
  
 (t) “Optioned Stock” means the common stock of the Company subject to an Option. 
  
 (u) “Optionee” means an Employee, Director or
Consultant who holds an outstanding Option. 
  
 (v)
“Plan” means this 2000 Equity Incentive Plan. 
  
 (w) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b3, as in effect when discretion is being exercised with respect to the Plan. 
  
 (x) “Stock Appreciation Right” means any of the
various types of rights which may be granted under Section 8 of the Plan. 
  
 (y) “Stock Award” means any right granted under the Plan, including any Option, any stock bonus, any right to purchase restricted stock, and any Stock Appreciation Right. 
  
 (aa) “Stock Award Agreement” means a written
agreement between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
  
 (bb) “Tandem Stock Appreciation Right” or “Tandem
Right” means a right granted under subsection 8(b)(1) of the Plan. 
  

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 3. ADMINISTRATION. 
  
 (a) The Plan shall be administered by the Board unless and until the Board delegates administration to a Committee, as provided in subsection 3(c).

  
 (b) The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan: 
  
 (1) To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how Stock Awards shall be granted; whether a Stock Award will be an Incentive Stock Option, a Nonstatutory Stock
Option, a stock bonus, a right to purchase restricted stock, a Stock Appreciation Right, or a combination of the foregoing; the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be
permitted to receive stock pursuant to a Stock Award; whether a person shall be permitted to receive stock upon exercise of an Independent Stock Appreciation Right; and the number of shares with respect to which Stock Awards shall be granted to each
such person. 
  
 (2) To construe and interpret the Plan and
Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
  
 (3) To amend the Plan as provided in Section 14. 
  
 (c) The Board may delegate administration of the Plan to a committee composed of not fewer than two (2) members (the “Committee”), all of
the members of such Committee shall be Disinterested Persons, if required under subsection 3(d). If administration is delegated to a 

  

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Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board (and references
in this Plan to the Board shall thereafter be to the Committee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any
time and revest in the Board the administration of the Plan. Additionally, prior to the date of the first registration of an equity security of the Company under Section 12 of the Exchange Act, and notwithstanding anything to the contrary contained
herein, the Board may delegate administration of the Plan to any person or persons and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. 
  
 (d) Any requirement that an administrator of the Plan be a
Disinterested Person shall not apply (i) prior to the date of the first registration of an equity security of the Company under Section 12 of the Exchange Act, or (ii) if the Board or the Committee expressly declares that such requirement shall not
apply. Any Disinterested Person shall otherwise comply with the requirements of Rule 16b-3. 
  
 4. SHARES SUBJECT TO THE PLAN. 
  
 (a) Subject to the provisions of Section 13 relating to adjustments upon changes in stock, the stock that may be sold pursuant to Stock Awards shall not exceed in the aggregate 2,000,000 shares of the Company’s common stock and
shall at no time exceed the applicable percentage as calculated in accordance with Section 260.140.45 of Chapter 3 of Title 10 of the California Code of Regulations. If any Stock Award shall for any reason expire or otherwise terminate, in whole or
in part, without having been exercised in full, the stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan. Shares subject to Stock Appreciation Rights exercised in accordance with Section 8
of the Plan shall not be available for subsequent issuance under the Plan. 
  

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 (b) The stock subject to the Plan may be unissued shares or reacquired shares, bought on the
market or otherwise. 
  
 5. ELIGIBILITY. 
  
 (a) Incentive Stock Options and Stock Appreciation Rights appurtenant
thereto may be granted only to Employees. Stock Awards other than Incentive Stock Options and Stock Appreciation Rights appurtenant thereto may be granted only to Employees, Directors or Consultants. 
  
 (b) A Director shall in no event be eligible for the benefits of the
Plan unless at the time discretion is exercised in the selection of the Director as a person to whom Stock Awards may be granted, or in the determination of the number of shares which may be covered by Stock Awards granted to the Director: (i) the
Board has delegated its discretionary authority over the Plan to a Committee which consists solely of Disinterested Persons; or (ii) the Plan otherwise complies with the requirements of Rule 16b-3. The Board shall otherwise comply with the
requirements of Rule 16b-3. This subsection 5(b) shall not apply (i) prior to the date of the first registration of an equity security of the Company under Section 12 of the Exchange Act, or (ii) if the Board or Committee expressly declares that it
shall not apply. 
  
 (c) No person shall be eligible for
the grant of an Option if, at the time of grant, such person owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or
of any of its Affiliates unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of such stock at the date of grant and the Option is not exercisable after the expiration of five (5) years from
the date of grant. 
  

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 6. OPTION PROVISIONS. 
  
 Each Option shall be in such form and shall contain such terns and conditions as the Board shall deem appropriate. The provisions of separate Options need
not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
  
 (a) Term. No Option shall be exercisable after the expiration of ten (10) years from the date it was granted.

  
 (b) Price. The exercise price of each Incentive
Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. The exercise price of each Nonstatutory Stock Option shall be not less than eighty-five
percent (85%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. 
  
 (c) Consideration. The purchase price of stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes
and regulations, either (1) in cash at the time the option is exercised, or (2) at the discretion of the Board or the Committee, either at the time of the grant or exercise of the Option, (a) by delivery to the Company of other common stock of the
Company, (b) according to a deferred payment or other arrangement (which may include, without limiting the generality of the foregoing, the use of other common stock of the Company) with the person to whom the Option is granted or to whom the Option
is transferred pursuant to subsection 6(d), or (c) in any other form of legal consideration that may be acceptable to the Board. 
  

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 In the case of any deferred payment arrangement, interest shall be payable at least annually and shall be
charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 
  
 (d) Transferability. An Option shall not be transferable except
by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the person to whom the Option is granted only by such person. 
  
 (e) Vesting. The total number of shares of stock subject to an Option may, but need not, be allotted in
periodic installments (which may, but need not, be equal). The Option Agreement may provide that from time to time during each of such installment periods, the Option may become exercisable (“vest”) with respect to some or all of the
shares allotted to that period, and may be exercised with respect to some or all of the shares allotted to such period and/or any prior period as to which the Option became vested but was not fully exercised. The vesting provisions of individual
Options may vary but in each case will provide for vesting of at least twenty-percent (20%) per year of the total number of shares subject to the Option. During the remainder of the term of the Option (if its term extends beyond the end of the
installment periods), the option may be exercised from time to time with respect to any shares then remaining subject to the Option. The provisions of this subsection 6(e) are subject to any Option provisions governing the minimum number of shares
as to which an Option may be exercised. 
  
 (f)
Termination of Employment or Relationship as a Director or Consultant. In the event an Optionee’s Continuous Status as an Employee, Director or Consultant terminates (other than upon the Optionee’s death or Disability), the
Optionee may exercise his or her Option only within the period ending on the earlier of (i) the date thirty (30) days after the termination of the Optionee’s Continuous Status as an Employee, Director or Consultant (or such later date specified
in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. 
  

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 (g) Disability of Optionee. In the event an Optionee’s Continuous Status as an
Employee, Director or Consultant terminates as a result of the Optionee’s disability. the Optionee may exercise his or her Option only within the period ending on the earlier of (i) the date twelve (12) months following such termination (or
such longer or shorter period, which in no event shall be less than six (6) months, specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. 
  
 (h) Death of Optionee. In the event of the death of an
Optionee, the Option may be exercised only within the period ending on the earlier of (i) the date eighteen (18) months following the date of death (or such longer or shorter period, which in no event shall be less than six (6) months, specified in
the Option Agreement), or (ii) the expiration of the term of such Option as set forth in the Option Agreement. 
  
 (i) Early Exercise. The Option may, but need not, include a provision whereby the Optionee may elect at any time while an Employee, Director
or Consultant to exercise the Option as to any part or all of the shares subject to the Option prior to the full vesting of the Option. Any unvested shares so purchased shall be subject to a repurchase right in favor of the Company, with the
repurchase price to be equal to the original purchase price of the stock, or to any other restriction the Board determines to be appropriate provided, however, that the right to repurchase at the original purchase price shall lapse at a minimum rate
of twenty percent (20%) per year over five (5) years from the date the Option was granted and such right shall be exercised within ninety (90) days of termination of employment for cash or cancellation of purchase money 

  

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indebtedness for the shares. Should the right of repurchase be assigned by the Company, the assignee shall pay the Company cash equal to the difference
between the original purchase price and the stock’s Fair Market Value if the original purchase price is less than the stock’s Fair Market Value. 
  
 7. TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK. 
  
 Each stock bonus or restricted stock purchase agreement shall be in such form and shall contain such terms and conditions as the Board or the Committee
shall deem appropriate. The terms and conditions of stock bonus or restricted stock purchase agreements may change from time to time, and the terms and conditions of separate agreements need not be identical, but each stock bonus or restricted stock
purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions as appropriate: 
  
 (a) Purchase Price. The purchase price under each restricted stock purchase agreement shall be such amount as
the Board or Committee shall determine and designate in such agreement, but in no event shall the purchase price be less than eighty-five percent (85%) of the stock’s Fair Market Value on the date such award is made. In the case of any purchase
made by holder who owns stock of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, the purchase price shall be equal to one hundred percent (100%) of the Fair Market Value
of the stock purchased. Notwithstanding the foregoing, the Board or the Committee may determine that eligible participants in the Plan may be awarded stock pursuant to a stock bonus agreement in consideration for past services actually rendered to
the Company or for its benefit. 
  

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 (b) Transferability. No rights under a stock bonus or restricted stock purchase agreement
shall be transferable except by will or by the laws of descent and distribution so long as stock awarded under such agreement remains subject to the terns of the agreement. 
  
 (c) Consideration. The purchase price of stock acquired pursuant to a stock purchase agreement shall be paid
either: (i) in cash at the time of purchase; (ii) at the discretion of the Board or the Committee, according to a deferred payment or other arrangement with the person to whom the stock is sold; or (iii) in any other form of legal consideration that
may be acceptable to the Board or the Committee in their discretion. Notwithstanding the foregoing, the Board or the Committee to which administration of the Plan has been delegated may award stock pursuant to a stock bonus agreement in
consideration for past services actually rendered to the Company or for its benefit. 
  
 (d) Vesting. Shares of stock sold or awarded under the Plan may, but need not, be subject to a repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the
Board or the Committee. 
  
 (e) Termination of
Employment or Relationship as a Director or Consultant. In the event a Participant’s Continuous Status as an Employee, Director or Consultant terminates, the Company may repurchase or otherwise reacquire any or all of the shares of stock
held by that person which have not vested as of the date of termination under the terms of the stock bonus or restricted stock purchase agreement between the Company and such person. 
  
 8. STOCK APPRECIATION RIGHTS. 
  
 (a) The Board or Committee shall have full power and authority, exercisable in its sole discretion, to grant Stock Appreciation Rights to Employees
or Directors of or Consultants to the Company or its Affiliates under the Plan. To exercise any outstanding Stock Appreciation 

  

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Right, the holder must provide written notice of exercise to the Company in compliance with the provisions of the Stock Award Agreement evidencing such
right. If a Stock Appreciation Right is granted to an individual who is at the time subject to Section 16(b) of the Exchange Act (a “Section 16(b) Insider”), the Stock Award Agreement of grant shall incorporate all the terns and conditions
at the time necessary to assure that the subsequent exercise of such right shall qualify for the safe-harbor exemption from short-swing profit liability provided by Rule 16b-3 promulgated under the Exchange Act (or any successor rule or regulation).
No limitation shall exist on the aggregate amount of cash payments the Company may make under the Plan in connection with the exercise of a Stock Appreciation Rights. 
  
 (b) Three types of Stock Appreciation Rights shall be authorized for issuance under the Plan: 
  
 (1) Tandem Stock Appreciation Rights. Tandem Stock
Appreciation Rights will be granted appurtenant to an Option, and if Tandem Stock Appreciation Rights are granted appurtenant to an Incentive Stock Option, they shall satisfy any applicable Treasury Regulations so as not to disqualify such Option as
an Incentive Stock Option under the Code. Tandem Stock Appreciation Rights will require the holder to elect between the exercise of the underlying Option for shares of stock and the surrender, in whole or in part, of such Option for an appreciation
distribution. The appreciation distribution payable on the exercised Tandem Right shall be in cash in an amount equal to the excess of (A) the Fair Market Value (on the date of the Option surrender) of the number of shares of stock covered by that
portion of the surrendered Option in which the optionee is vested over (B) the aggregate exercise price payable for such vested shares. 
  

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 (2) Concurrent Stock Appreciation Rights. Concurrent Rights will be granted appurtenant to
an Option and may apply to all or any portion of the shares of stock subject to the underlying Option and shall, except as specifically set forth in this Section 8, be subject to the same terms and conditions applicable to the particular Option
grant to which it pertains. A Concurrent Right shall be exercised automatically at the same time the underlying Option is exercised with respect to the particular shares of stock to which the Concurrent Right pertains. The appreciation distribution
payable on an exercised Concurrent Right shall be in cash in an amount equal to such portion as shall be determined by the Board or the Committee at the time of the grant of the excess of (A) the aggregate Fair Market Value (on the Exercise Date) of
the vested shares of stock purchased under the underlying Option which have Concurrent Rights appurtenant to them over (B) the aggregate exercise price paid for such shares. 
  
 (3) Independent Stock Appreciation Rights. Independent Rights will be granted independently of any Option and
shall, except as specifically set forth in this Section, be subject to the same terms and conditions applicable to Nonstatutory Stock Options as set forth in Section 6. They shall be denominated in share equivalents. The appreciation distribution
payable on the exercised Independent Right shall be not greater than an amount equal to the excess of (i) the aggregate Fair Market Value (on the date of the exercise of the Independent Right) of a number of shares of Company stock equal to the
number of share equivalents in which the holder is vested under such Independent Right, and with respect to which the holder is exercising .the Independent Right on such date, over (ii) the aggregate Fair Market Value (on the date of the grant of
the Independent Right) of such number of shares of Company stock. The appreciation distribution payable on the exercised Independent Right may be paid, in the discretion of the Board or the Committee, in cash, in shares of stock or in a combination
of cash and stock. Any shares of stock so distributed shall be valued at fair market value on the date the Independent Right is exercised. 
  

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 9. CANCELLATION AND RE-GRANT OF OPTIONS. 
  
 The Board or the Committee shall have the authority to effect, at any time and from time to time, with the consent of the
affected holders of Options and/or Stock Appreciation Rights, (i) the repricing of any outstanding Options and/or any Stock Appreciation Rights under the Plan and/or (ii) the cancellation of any outstanding Options and/or any Stock Appreciation
Rights under the Plan and the grant in substitution therefor of new Options and/or Stock Appreciation Rights under the Plan covering the same or different numbers of shares of stock, but having an exercise price per share not less than eighty-five
percent (85%) of the Fair Market Value (one hundred percent (100%) of the Fair Market Value in the case of an Incentive Stock Option or, in the case of a 10% stockholder (as described in subsection 5(c)), not less than one hundred ten percent (110%)
of the Fair Market Value) per share of stock on the new grant date. 
  
 10.
COVENANTS OF THE COMPANY. 
  
 (a) During the terms of
the Stock Awards, the Company shall keep available at all times the number of shares of stock required to satisfy such Stock Awards. 
  
 (b) The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required
to issue and sell shares of stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act either the Plan, any Stock Awards or any stock issued or issuable
pursuant to any such Stock Awards. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of stock
under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Stock Awards unless and until such authority is obtained. 
  

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 11. USE OF PROCEEDS FROM STOCK. 
  
 Proceeds from the sale of stock pursuant to Stock Awards shall constitute general funds of the Company. 
  
 12. MISCELLANEOUS. 
  
 (a) Neither an Optionee nor any person to whom an Option is transferred under subsection 6(d) shall be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any shares subject to such Option unless and until such person has satisfied all requirements for exercise of the Option pursuant to its terms. 
  
 (b) Nothing in the Plan or any instrument executed or Stock Award
granted pursuant thereto shall confer upon any Employee, Director, Consultant, Optionee or other holder of Stock Awards any right to continue in the employ of the Company or any Affiliate (or to continue acting as a Director or Consultant) or shall
affect the right of the Company or any Affiliate to terminate the employment or relationship as a Director or Consultant of any Employee, Director, Consultant or Optionee with or without cause. 
  
 (c) To the extent that the aggregate Fair Market Value (determined at
the time of grant) of stock with respect to which Incentive Stock Options granted after 1986 are exercisable for the first time by any Optionee during any calendar year under all plans of the Company and its Affiliates exceeds one hundred thousand
dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 
  

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 (d) The Company may require any person to whom a Stock Award is granted, or any person to whom a
Stock Award is transferred under subsection 6(d) or 7(b), as a condition of exercising or acquiring stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to such person’s knowledge and experience in
financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters, and that he or she is capable of evaluating, alone or together
with the purchaser representative, the merits and risks of exercising or acquiring stock under the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that such person is acquiring the stock subject to the Stock
Award for such person’s own account and not with any present intention of selling or otherwise distributing the stock. These requirements, and any assurances given pursuant to such requirements, shall be inoperative if (i) the issuance of the
shares upon the exercise or acquisition of stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), or (ii) as to any
particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on
stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of stock. 
  
 (e) To the extent provided by the terns of a Stock Award Agreement,
the person to whom a Stock Award is granted may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of stock under a Stock Award by any of the following means or by a combination of such means: (i)
tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares of the common stock otherwise issuable to the participant as a result of the exercise or acquisition of stock under the Stock Award; or (iii) delivering to the
Company owned and unencumbered shares of the common stock of the Company. 
  

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 (f) Throughout the term of any Option. the Company shall deliver to the holder of such Option, not
later than one hundred twenty (120) days after the close of each of the Company’s fiscal years during the Option term, (i) a balance sheet and income statement for the preceding year; and (ii) any other information regarding the Company as
comprises the annual report to the stockholders of the Company provided for in the bylaws of the Company. 
  
 (g) Any stock of the Company that is received by an Optionee upon exercise of an Option or that is purchased pursuant to this Plan by any Employee,
Director or Consultant shall be subject to that any right of first refusal which may be contained in the Company’s bylaws, as applicable. 
  
 13. ADJUSTMENTS UPON CHANGES IN STOCK. 
  
 (a) If any change is made in the stock subject to the Plan, or subject to any Stock Award (through merger, consolidation, reorganization,
recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or otherwise), the Plan and outstanding Stock Awards will be
appropriately adjusted in the class(es) and maximum number of shares subject to the Plan and the class(es) and number of shares and price per share of stock subject to outstanding Stock Awards. 
  
 (b) In the event of: (i) a merger or consolidation in which the
Company is not the surviving corporation or (ii) a reverse merger in which the Company is the surviving corporation 

  

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but the shares of the Company’s common stock outstanding immediately preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise then to the extent permitted by applicable law: (i) any surviving corporation shall assume any Stock Awards outstanding under the Plan or shall substitute similar Stock Awards for those
outstanding under the Plan, or (ii) such Stock Award shall continue in full force and effect. 1n the event any surviving corporation refuses to assume or continue such Stock Awards. or to substitute similar Stock Awards for those outstanding under
the Plan, then all of the unvested portion of any such Stock Awards shall accelerate and become vested and exercisable immediately prior to such event. In the event of a dissolution or liquidation of the Company, any Stock Awards outstanding under
the Plan shall terminate if not exercised prior to such event. 
  
 14.
AMENDMENT OF THE PLAN. 
  
 (a) The Board at any time,
and from time to time, may amend the Plan. However, except as provided in Section 13 relating to adjustments upon changes in stock, no amendment shall be effective unless approved by the stockholders of the Company within twelve (12) months before
or after the adoption of the amendment, where the amendment will: 
  
 (1) Increase the number of shares reserved for Stock Awards under the Plan; 
  
 (2) Modify the requirements as to eligibility for participation in the Plan (to the extent such modification requires stockholder approval in order for the Plan to satisfy the requirements of Section 422 of the
Code); or 
  
 (3) Modify the Plan in any other way if such
modification requires stockholder approval in order for the Plan to satisfy the requirements of Section 422 of the Code .or to comply with the requirements of Rule 16b-3. 
  

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 (b) It is expressly contemplated that the Board may amend the Plan in any respect the Board deems
necessary or advisable to provide eligible Employees, Directors or Consultants with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options
and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith. 
  
 (c) Rights and obligations under any Stock Award granted before amendment of the Plan shall not be altered or impaired by any amendment of the Plan
unless (i) the Company requests the consent of the person to whom the Stock Award was granted and (ii) such person consents in writing. 
  
 15. TERMINATION OR SUSPENSION OF THE PLAN. 
  
 (a) The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on August 23, 2010 which shall be
within ten (10) years from the date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is earlier. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

  
 (b) Rights and obligations under any Stock Award
granted while the Plan is in effect shall not be altered or impaired by suspension or termination of the Plan, except with the consent of the person to whom the Stock Award was granted. 
  
 16. EFFECTIVE DATE OF PLAN. 
  
 The Plan shall become effective as determined by the Board, but no Stock Awards granted under the Plan shall be exercised unless and until the Plan has
been approved by the stockholders of the Company within twelve (12) months of the adoption of the Plan by the Board, and, if required, an appropriate permit has been issued by the Commissioner of Corporations of the State of California. 

 

 20Amendment No.4 to Loan Agreement dated as of  September 15, 2003

 Exhibit 10.38 
  
 AMENDMENT NO. 4 TO LOAN AGREEMENT 
  
 This AMENDMENT NO. 4 TO LOAN AGREEMENT (this “Amendment”) is made and entered into as of September 15, 2003
by and among Powerwave Technologies, Inc., a Delaware corporation (the “Borrower”), COMERICA BANK-CALIFORNIA, a California banking corporation, as agent for the Lenders (the “Agent”), and the various financial
institutions that are (or may from time to time hereafter become) parties to the Loan Agreement identified below as lenders (each a “Lender” and collectively the “Lenders”). 
  
 R E C I T A L S: 
  
 A. Borrower, Agent and the Lenders have entered into that certain Loan
Agreement dated as of May 26, 2000, as amended, pursuant to which Lenders agreed to provide certain credit facilities to Borrower (the “Loan Agreement”; capitalized terms used herein without definition shall have the meanings ascribed to
them in the Loan Agreement). 
  
 B. While the Loan Agreement
matured and terminated on May 31, 2003, it is the desire of Borrower, Agent and the Lenders to reinstate the Loan Agreement as of the date hereof, and to make certain changes to the Loan Agreement and the Revolving Note as set forth herein.

  
 NOW, THEREFORE, in consideration of the premises and the
mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  

	1.	AMENDMENTS. 

  
 1.1 Maturity Date. The maturity date as set forth in Section 2.1 of the Loan Agreement and in the Revolving Note, is amended to be “May 31,
2004”, and such date shall henceforth be deemed to be the “Revolving Maturity Date”. 
  
 1.2 Restrictions on Indebtedness. Section 7.7 of the Loan Agreement is amended and restated to read in full as follows: 
  
 7.7 Restrictions on Indebtedness. Borrower will not
incur, create, assume or suffer to exist any Indebtedness, other than the following: 
  
 (a) Indebtedness incurred pursuant to this Agreement and the other Loan Documents; 
  
 (b) Accounts payable and other accrued liabilities arising
in the ordinary course of business; 
  
 (c)
Indebtedness in addition to the Obligations in an aggregate principal amount not to exceed $10,000,000 in at any one time outstanding; 
  
 (d) in addition to the foregoing, Indebtedness secured by Liens permitted under Section 7.8; 
  

 1 

 (e) Indebtedness represented by Borrower’s $130,000,000 1.25% Convertible
Subordinated Notes Due 2008 , issued pursuant to that certain Indenture dated as of July 18, 2003 with Deutsche Bank Trust Company Americas, as Trustee, provided that the Obligations constitute “Designated Senior Indebtedness” under such
Indenture; and 
  
 (f) Indebtedness consisting of
Guarantee obligations permitted under Section 7.14(a). 
  
 1.3 Financial Covenants. Section 7.16 of the Loan Agreement is amended and restated to read in full as follows: 
  
 7.16 Financial Covenants. All financial covenants are determined for Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP. 
  
 (a) Leverage
Ratio. Borrower will maintain a Leverage Ratio of not more than 0.75:1.0 at the end of each fiscal quarter: 
  
 (b) Minimum Tangible Net Worth. Borrower will maintain, as at the last day of each fiscal quarter, a Tangible Net Worth in
accordance with GAAP of not less than $285,000,000 plus, commencing June 29, 2003 and each fiscal quarter end thereafter, (i) 75% of Borrower’s positive consolidated Net Income (Loss) and (ii) 100% of the proceeds of issuances and
sales of (x) subordinated Indebtedness that is included in Tangible Net Worth and (y) equity securities of Borrower and its Subsidiaries (in each case net of associated fees and expenses), less stock repurchases, in each case determined on a
cumulative basis following March 31, 2003. 
  
 (c) [RESERVED] 
  
 (d) Quick
Ratio. Borrower shall have a ratio of Consolidated Current Assets to Consolidated Current Liabilities of not less than 2.0 : 1.0 as at the end of each fiscal quarter. 
  
 2. EFFECTIVENESS AND EFFECT. This Amendment shall be effective upon the execution and delivery hereof by all of the parties
hereto, whereupon the Loan Agreement, as heretofore amended and as amended hereby, shall be reinstated and shall be in full force and effect. This Amendment is limited to the express terms hereof. Except as specifically provided herein, all
provisions of the Loan Agreement, the Revolving Note and the other Loan Documents remain in full force and effect without modification or waiver, and the same are hereby ratified by the parties in all respects. 
  
 3. DESIGNATED SENIOR INDEBTEDNESS. Borrower hereby affirms and agrees that the
Obligations shall constitute “Designated Senior Indebtedness” as defined in, and for all purposes under, that certain Indenture dated as of July 18, 2003 between Borrower and Deutsche Bank Trust Company Americas, as Trustee, and that a
copy of this Amendment may be furnished to the Trustee as evidence thereof. 
  
 4.
GENERAL PROVISIONS. This Amendment shall be deemed for all purposes to be a Loan Document and shall be subject to the General Provisions set forth in Section 9 of the Loan Agreement. 
  
 [remainder of page intentionally left blank; signature page follows]

  

 2 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 4 to Loan Agreement as of the
date first set forth above. 
  

	 Borrower:
	 	 POWERWAVE TECHNOLOGIES, INC.

			
	 	 	 By:
	 	 /s/ Kevin T. Michaels

	 	 	 Print Name:
	 	 Kevin T. Michaels

		
	 Agent:
	 	 COMERICA BANK-CALIFORNIA

			
	 	 	 By:
	 	 /s/ Bonnie Kehe

	 	 	 Print Name:
	 	 Bonnie Kehe

		
	 Lenders:
	 	 COMERICA BANK-CALIFORNIA

			
	 	 	 By:
	 	 /s/ Bonnie Kehe

	 	 	 Print Name:
	 	 Bonnie Kehe

  

 3

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