Document:

Exhibit 4.3

 

	
  NUMBER

   

  FTR

   

  	
  [Logo]

  	
  SHARES

  
	
   

  	
  FIBERTOWER CORPORATION

  	
   

  
	
  COMMON
  STOCK

  	
   

  	
   

  
	
  THIS CERTIFICATE
  IS TRANSFERABLE IN CANTON, MA,

  	
  INCORPORATED
  UNDER THE LAWS OF THE STATE OF DELAWARE

  	
  SEE REVERSE FOR
  CERTAIN DEFINITIONS

  
	
  JERSEY CITY, NJ
  AND NEW YORK, NY

  	
   

  	
  CUSIP 31567R 10 0

  
	
   

  	
   

  	
   

  
	
  This Certifies
  that

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  is the owner of

  	
   

  	
   

  

 

FULLY PAID AND
NONASSESSABLE SHARES OF COMMON STOCK, $.001 PAR VALUE PER SHARE, OF

	
  

  	
  FIBERTOWER
  CORPORATION

  	
   

  

 

	
  

  	
  transferable on the books of the Corporation by the
  holder hereof in person or by duly authorized attorney upon surrender of this
  certificate properly endorsed. This certificate is not valid until
  countersigned by the Transfer Agent and registered by the Registrar.

  WITNESS the
  facsimile seal of the Corporation and the facsimile signatures of its duly
  authorized officers.

  
	
   

  	
   

  
	
   

  	
  Dated:

  

 

	
  

  	
  [Corporate Seal]

  	
   

  
	
   PRESIDENT AND
  CHIEF EXECUTIVE OFFICER

  	
   SECRETARY

  
	
   

  
	
  COUNTERSIGNED AND REGISTERED:

  
	
  COMPUTERSHARE
  TRUST COMPANY, N.A.

  
	
   

  	
   

  
	
   

  	
  TRANSFER AGENT

  	
   

  
	
   

  	
    AND REGISTRAR

  	
   

  
	
   

  	
   

  
	
  BY 

  	
   

  
	
   

  	
  AUTHORIZED
  SIGNATURE

  	
   

  
						

 

 

 

 

[Reverse
of Certificate]

FIBERTOWER
CORPORATION

The Corporation
shall furnish without charge to each stockholder who so requests a statement of
the powers, designations, preferences and relative, participating, optional or
other special rights of each class of stock of the Corporation or series
thereof and the qualifications, limitations or restrictions of such preferences
and/or rights. Any such requests may be addressed to the Corporation.

The following
abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to
applicable laws or regulations:

	
  TEN COM

  	
  —

  	
  as tenants in common

  	
  UNIF GIFT MIN ACT 
  —  ..............................
  Custodian ..............................

  
	
  TEN ENT

  	
  —

  	
  as tenants by the entireties

  	
   

  	
  (Cust)

  	
  (Minor)

  
	
  JT TEN

  	
  —

  	
  as joint tenants with right of

  	
   

  	
  under Uniform Gifts to Minors

  
	
   

  	
   

  	
  survivorship and not as tenants

  	
   

  	
  Act
  .....................................................................

  
	
   

  	
   

  	
  in common

  	
   

  	
  (State)

  
	
  

  	
   

  	
   

  	
  UNIF TRF MIN ACT  —  .........................
  Custodian (until age ...................)

  
	
   

  	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ................................ under Uniform
  Transfers

  
	
   

  	
   

  	
   

  	
   

  	
  (Minor)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  to Minors Act .................................................

  
	
   

  	
   

  	
   

  	
   

  	
  (State)

  
										

 

Additional
abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED, _____________________________________________ hereby
sell, assign and transfer unto

PLEASE INSERT SOCIAL
SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

	
  (PLEASE PRINT OR TYPEWRITE NAME AND
  ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

  

 

	
  

  

 

	
  

  

 

	
  

  	
   Shares

  
	
  of the common stock represented by the within
  Certificate, and do hereby irrevocably constitute and appoint

  

 

	
  

  	
   Attorney

  
	
  to transfer the said stock on the books of the within
  named Corporation with full power of substitution in the premises.

  

 

	
  Dated

  	
   

  	
   

  	
  x

  	
   

  
	
   

  	
   

  
	
   

  	
  x

  	
   

  
	
   

  	
  NOTICE:

  	
  THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND
  WITH THE NAME(S) AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY
  PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

  
	
  Signature(s) Guaranteed

  	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
  THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE
  GUARANTOR INSTITUTION (BANKS,

  
	
  STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND
  CREDIT UNIONS WITH MEMBERSHIP IN AN

  
	
  APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
  PURSUANT TO S.E.C. RULE 17Ad-15.Exhibit 4.9

 

FIBERTOWER CORPORATION

 

 

AMENDED AND RESTATED STOCK OPTION
PLAN

 
  

FIBERTOWER
CORPORATION

AMENDED
AND RESTATED STOCK OPTION PLAN

TABLE OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  PURPOSES OF THE
  PLAN

  	
   

  	
  1

  
	
  2.

  	
  DEFINITIONS

  	
   

  	
  1

  
	
  3.

  	
  STOCK
  SUBJECT TO THE PLAN

  	
   

  	
  4

  
	
  4.

  	
  ADMINISTRATION
  OF THE PLAN

  	
   

  	
  4

  
	
   

  	
  (a)

  	
  PROCEDURE

  	
   

  	
  4

  
	
   

  	
  (b)

  	
  POWERS OF
  THE ADMINISTRATOR

  	
   

  	
  4

  
	
   

  	
  (c)

  	
  EFFECT
  OF ADMINISTRATOR’S DECISION

  	
   

  	
  5

  
	
  5.

  	
  ELIGIBILITY

  	
   

  	
  5

  
	
  6.

  	
  LIMITATIONS

  	
   

  	
  5

  
	
  7.

  	
  TERM OF PLAN

  	
   

  	
  6

  
	
  8.

  	
  TERM OF OPTION

  	
   

  	
  6

  
	
  9.

  	
  OPTION
  EXERCISE PRICE AND CONSIDERATION

  	
   

  	
  6

  
	
   

  	
  (a)

  	
  EXERCISE PRICE

  	
   

  	
  6

  
	
   

  	
  (b)

  	
  FORM OF
  CONSIDERATION

  	
   

  	
  6

  
	
  10.

  	
  EXERCISE OF
  OPTIONS

  	
   

  	
  7

  
	
   

  	
  (a)

  	
  VESTING

  	
   

  	
  7

  
	
   

  	
  (b)

  	
  PROCEDURE
  FOR EXERCISE; RIGHTS AS A STOCKHOLDER

  	
   

  	
  8

  
	
   

  	
  (c)

  	
  TERMINATION
  OF RELATIONSHIP AS A SERVICE PROVIDER

  	
   

  	
  8

  
	
   

  	
  (d)

  	
  DEATH
  OR DISABILITY OF OPTIONEE

  	
   

  	
  8

  
	
   

  	
  (e)

  	
  BUYOUT PROVISIONS

  	
   

  	
  9

  
	
  11.

  	
  CORPORATE
  TRANSACTIONS

  	
   

  	
  9

  
	
   

  	
  (a)

  	
  ASSUMPTION
  OR REPLACEMENT OF OPTIONS BY SUCCESSOR

  	
   

  	
  9

  
	
   

  	
  (b)

  	
  OTHER
  TREATMENT OF OPTIONS

  	
   

  	
  9

  
	
   

  	
  (c)

  	
  ASSUMPTION
  OF OPTIONS ABSENT CORPORATE TRANSACTION

  	
   

  	
  9

  
	
  12.

  	
  NON-TRANSFERABILITY
  OF OPTIONS AND OPTION SHARES

  	
   

  	
  10

  
	
   

  	
  (a)

  	
  RESTRICTIONS
  ON TRANSFER OF OPTIONS

  	
   

  	
  10

  
	
   

  	
  (b)

  	
  RESTRICTIONS
  ON TRANSFER OF OPTION SHARES

  	
   

  	
  10

  
	
  13.

  	
  ADJUSTMENTS
  UPON CHANGES IN CAPITALIZATION

  	
   

  	
  10

  

 

 i
 

 
  

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  14.

  	
  DATE OF GRANT

  	
   

  	
  10

  
	
  15.

  	
  AMENDMENTS
  AND TERMINATION OF THE PLAN

  	
   

  	
  11

  
	
   

  	
  (a)

  	
  AMENDMENT
  AND TERMINATION

  	
   

  	
  11

  
	
   

  	
  (b)

  	
  STOCKHOLDER
  APPROVAL

  	
   

  	
  11

  
	
   

  	
  (c)

  	
  EFFECT
  OF AMENDMENT OR TERMINATION

  	
   

  	
  11

  
	
  16.

  	
  CONDITIONS
  UPON ISSUANCE OF SHARES

  	
   

  	
  11

  
	
   

  	
  (a)

  	
  LEGAL COMPLIANCE

  	
   

  	
  11

  
	
   

  	
  (b)

  	
  INVESTMENT
  REPRESENTATIONS

  	
   

  	
  11

  
	
   

  	
  (c)

  	
  EFFECT OF AMENDMENT OR TERMINATION

  	
   

  	
  11

  
	
  17.

  	
  INABILITY
  TO OBTAIN AUTHORITY

  	
   

  	
  11

  
	
  18.

  	
  RESERVATION OF
  SHARES

  	
   

  	
  11

  
	
  19.

  	
  INFORMATION
  TO OPTIONEES

  	
   

  	
  11

  

 

 ii

 
  

FIBERTOWER
CORPORATION

AMENDED
AND RESTATED STOCK OPTION PLAN

This Amended and Restated Stock Option Plan (the “Plan”)
of FiberTower Corporation, a Delaware corporation (the “Corporation”), amends
and restates in its entirety, as of May 12, 2006, the Stock Option Plan of the
Corporation as adopted on May 10, 2001 and amended on May 20, 2002, and amended
and restated on July 17, 2003, and amended on February 11, 2004, and amended on
July 5, 2005.

1.             PURPOSES
OF THE PLAN.  The
purposes of this Plan are:

(a)           to
attract and retain the best available personnel for service to the Corporation;

(b)           to
attract and retain competent executives with outstanding ability for positions
of substantial responsibility;

(c)           to
provide additional incentive to key employees, officers, Directors and
consultants of the Corporation; and

(d)           to
promote the success of the Corporation’s business.

Options granted under the Plan may be Incentive Stock
Options or Nonstatutory Stock Options, as determined by the Board at the time
of grant.  Although this Plan is intended to be a written compensatory benefit plan
within the meaning of Rule 701 promulgated under the Securities Act,
grants may be made pursuant to this plan which do not qualify for exemption
under Rule 701 or Section 25102(o) of the California Corporations Code.  Any requirement of this Plan which is
required in law only because of Section 25102(o) need not apply if the
Administrator so provides.

2.             DEFINITIONS.  As used herein, the following definitions shall
apply:

(a)           “Administrator”
means the Board, or a committee of the Board, in accordance with Section 4 of
the Plan.

(b)           “Affiliate”
means any Person who is an “affiliate” as defined in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act.

(c)           “Anniversary
Date” has the meaning set forth in Section 10(a)(i) hereof.

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

(e)           “Board”
means the Board of Directors of the Corporation.

(f)            “Certificate
of Incorporation” means the Corporation’s Amended and Restated Certificate of
Incorporation, as the same may be amended from time to time.

(g)           “Code”
means the U.S.  Internal Revenue Code of
1986, as amended.

 1
 

 
  

(h)           “Common
Stock” means the Common Stock, par value $0.0001 per share, of the Corporation.

(i)            “Consultant”
means any person or entity that provides services to the Corporation that is
not an Employee, Officer or Director.

(j)            “Corporate
Transaction” means (a) a merger or consolidation in which the Corporation is
not the surviving corporation (other than a merger or consolidation with a
wholly-owned subsidiary, a reincorporation of the Corporation in a different
jurisdiction, or other transaction in which there is no substantial change in
the stockholders of the Corporation and the Awards granted under the Plan are
assumed or replaced by the successor corporation, which assumption shall be
binding on all Optionees), (b) a dissolution or liquidation of the Corporation,
(c) the sale of substantially all of the assets of the Corporation, (d) a
merger in which the Corporation is the surviving corporation but after which
the stockholders of the Company immediately prior to such merger (other than
any stockholder that merges, or which owns or controls another corporation that
merges, with the Corporation in such merger) cease to own their shares or other
equity interest in the Corporation; or (e) any other transaction which
qualifies as a “corporate transaction” under Section 424(a) of the Code wherein
the stockholders of the Corporation give up all of their equity interest in the
Corporation (except for the acquisition, sale or transfer of all or
substantially all of the outstanding shares of the Corporation); provided,
however, that the corporate transaction by and between the Corporation and
First Avenue Networks, Inc. pursuant to that certain Agreement and Plan of
Merger between the same shall not constitute a Corporate Transaction for
purposes of the Plan.

(k)           “Corporation”
has the meaning set forth in the preamble hereto.

(l)            “Director”
means a member of the Board.

(m)          “Disability”
shall have the meaning set forth in Section 22(e)(3) of the Code.

(n)           “Employee”
means any employee, including, without limitation, Officers employed by the
Corporation or any Subsidiary of the Corporation, and any Director.  An Employee may also serve as a Director of
the Corporation and maintain his status as an Employee hereunder.

(o)           “Excess
Vesting Amount” has the meaning set forth in Section 10(a)(ii) hereof.

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

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

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

(ii)           If the Common Stock is regularly
quoted by a recognized securities dealer but selling prices are not reported,
the Fair Market Value of a Share of Common Stock shall be the

 2
 

 
  

mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or

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

(r)            “Family
Members” has the meaning set forth in Section 12(b) hereof.

(s)           “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.

(t)            “Initial
Vesting Amount” has the meaning set forth in Section 10(a)(i) hereof.

(u)           “Liquidation”
has the meaning set forth in Corporation’s Restated Certificate.

(v)           “Nonstatutory
Stock Option” means an Option not intended to qualify as an Incentive Stock Option.

(w)          “Notice
of Grant” means a written or electronic notice evidencing certain terms and
conditions of an individual Option grant. 
The Notice of Grant is part of the Option Agreement.

(x)            “Officer”
means a person who is an officer of the Corporation within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

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

(z)            “Option
Agreement” means an agreement between the Corporation and any Optionee evidencing
the terms and conditions of an individual Option grant.  Each Option Agreement will be subject to the
terms and conditions of the Plan.

(aa)         “Option
Share” means a share issued upon the exercise of an Option.

(bb)         “Optionee”
means the holder of an outstanding Option granted under the Plan.

(cc)         “Person”
means any individual, firm, corporation, partnership, trust, incorporated or
unincorporated association, joint venture, joint stock company, limited
liability company, governmental authority or other entity of any kind, and
shall include any successor (by merger or otherwise) of such entity.

(dd)         “Plan”
has the meaning set forth in the preamble hereto.

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

(ff)           “Securities
Act” means the Securities Act of 1933, as amended.

(gg)         “Service
Provider” means an Officer, Employee, Consultant, Director or non-Employee
advisor (including any member of a board of advisors) of the Corporation.

 3
 

 
  

(hh)         “Share”
means a share of the Common Stock, as adjusted in accordance with Section 12 of
the Plan.

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

(jj)           “Target
Corporation” has the meaning set forth in 11(c) hereof.

(kk)         “Transfer”
has the meaning set forth in Section 12(b) hereof.

3.             STOCK SUBJECT TO THE PLAN.

(a)           Subject
to the provisions of Section 3(b) and 13 of the Plan, the maximum aggregate
number of Shares which may be optioned and issued under the Plan is 30,041,195
Shares.  If an Option expires or becomes
exercisable without having been exercised in full, or if the Corporation
retains Shares as a method of payment under Section 9(b)(iv) hereof, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated); provided,
however, that Shares that have actually been issued under the Plan shall
not be returned to the Plan and shall not become available for future
distribution under the Plan.

(b)           Notwithstanding
the foregoing, at no time shall the total number of Shares issuable upon
exercise of outstanding Options and the total number of securities provided for
under any bonus or similar plan of the Corporation exceed the applicable
percentage as calculated in accordance with the conditions and exclusions of
Rule 260.140.45 of Title 10 of the California Code of Regulations.

4.             ADMINISTRATION OF THE PLAN.

(a)           PROCEDURE.

(i)            If the Common Stock is registered
under Section 12 of the Exchange Act and to the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder shall be structured to satisfy the requirements for
exemption under Rule 16b-3.

(ii)           The Plan shall be administered by the
Board, provided, that the Board may delegate part or all of the
administration of the Plan to a duly created Committee of the Board.

(b)           POWERS
OF THE ADMINISTRATOR.  Subject
to the provisions of the Plan, the Administrator shall have the authority, in its
discretion:

(i)            to determine the Fair Market Value
in accordance with the Plan;

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

(iii)          to determine the number of shares of
Common Stock to be covered by each Option granted hereunder;

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

 4
 

 
  

(v)           to determine the terms and
conditions, not inconsistent with the terms of the Plan, of any Option granted
hereunder.  Such terms and conditions
include, but are not limited to, the exercise price, any vesting or forfeiture
restrictions and any acceleration or waiver thereof, and any restriction or
limitation regarding any Option or the Shares subject thereto, based in each
case on such factors as the Administrator, in its sole discretion, shall
determine;

(vi)          to construe and interpret the terms of
the Plan and Options granted pursuant to the Plan;

(vii)         to prescribe, amend and rescind rules
and regulations relating to the Plan, including rules and regulations relating
to sub-plans established for the purpose of qualifying for preferred tax
treatment under foreign tax laws;

(viii)        to modify or amend each Option (subject
to Section 15(c) of the Plan);

(ix)           to require or allow Optionees to
satisfy withholding tax obligations by, without limitation, making a cash
payment to the Corporation or electing to have the Corporation withhold from
the Shares to be issued upon exercise of an Option that number of Shares having
a Fair Market Value equal to the amount required to be withheld.  In the latter case, the Fair Market Value of
the Shares to be withheld shall be determined on the date that the amount of
tax to be withheld is to be determined, and all elections by an Optionee to
have Shares withheld for this purpose shall be made in such form and under such
conditions as the Administrator may deem necessary or advisable;

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

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

(c)           EFFECT
OF ADMINISTRATOR’S DECISION. 
The Administrator’s decisions, determinations and interpretations shall be final
and binding on all Optionees and any other holders of Options.

5.             ELIGIBILITY.  Options may be granted to such Service
Providers, and in such amounts, as the Administrator, in its sole discretion, shall choose.  Nonstatutory Stock Options may be granted to
any Service Provider.  Incentive Stock
Options may be granted only to Service Providers who are Employees.

6.             LIMITATIONS.

(a)           Each
Option shall be designated in the attendant Option Agreement as either an Incentive
Stock Option or a Nonstatutory Stock Option. 
However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of the Shares with respect to which Incentive Stock
Options are exercisable for the first time by the Optionee during any calendar
year (under all plans of the Corporation and any Subsidiary) exceeds $100,000,
such Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a), Incentive
Stock Options shall be taken into account in the order in which they were
granted.  The Fair Market Value of the
Shares shall be determined as of the time the Option with respect to such
Shares is granted.

 5
 

 
  

(b)           Neither
the Plan nor any Option shall confer upon an Optionee any right with respect to
continuing the Optionee’s relationship as a Service Provider of the
Corporation, nor shall they interfere in any way with the Optionee’s right or
the Corporation’s right to terminate such relationship at any time, with or
without cause.

7.             TERM OF
PLAN.  This Plan will
become effective on the date that it is adopted by the Board (the “Effective Date”). 
Unless earlier terminated as provided herein, this Plan will terminate
ten (10) years from the Effective Date or, if earlier, the date of shareholder
approval, unless terminated earlier under Section 15 hereof.

8.             TERM OF
OPTION.  The term of
each Option shall be stated in the Option Agreement and shall be ten (10) years
from the date of grant or such shorter term
as may be provided in the Option Agreement. 
Moreover, in the case of an Incentive Stock Option granted to an
Optionee who, at the time the Incentive Stock Option is granted, owns Common
Stock representing more than 10% of the voting power of all classes of stock of
the Corporation or any Subsidiary, the term of the Incentive Stock Option shall
be five (5) years from the date of grant or such shorter term as may be
provided in the Option Agreement.

9.             OPTION EXERCISE PRICE AND
CONSIDERATION.

(a)           EXERCISE
PRICE.  The per share exercise
price for the Shares to be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

(i)            In the case of an Incentive Stock
Option, which may only be granted to employees of the Corporation,

(A)          granted to an Employee who, at the
time the Incentive Stock Option is granted, owns stock representing more than
10% of the voting power of all classes of stock of the Corporation or any
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant; or

(B)           granted to any Employee other than an
Employee described in paragraph (A) immediately above, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

(ii)           In the case of a Nonstatutory Stock
Option, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant; provided, however, that, at the
time the Nonstatutory Stock Option is granted, if the grant of such Nonstatutory
Stock Option is to be made to a Person who owns stock representing more than
10% of the total combined voting power of all classes of stock of the
Corporation or any Subsidiary, then the per Share exercise price shall be no
less than 110% of the Fair Market Value per Share on the date of grant.

(b)           FORM
OF CONSIDERATION.  The
Administrator shall determine the acceptable form of consideration for exercising an Option, including the
method of payment.  Such consideration
may consist of

(i)            cash;

 6
 

 
  

(ii)           check;

(iii)          by surrender of shares that:  (i) either (A) have been owned by
Optionee for more than six (6) months and have been paid for within the meaning
of SEC Rule 144 (and, if such shares were purchased from the Corporation
by use of a promissory note, such note has been fully paid with respect to such
shares) or (B) were obtained by Optionee in the public market and
(ii) are clear of all liens, claims, encumbrances or security interests;

(iv)          Intentionally Omitted;

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

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

10.          EXERCISE
OF OPTIONS.

(a)           VESTING.  Options granted under the Plan to an Optionee
shall vest according to the following schedule so
long as an Optionee is providing services to the Corporation, unless the
Administrator otherwise provides:

If the Optionee is an Employee:

(i)            25% of the Options so granted (the “Initial
Vesting Amount”) shall vest in the Optionee on the one (1) year anniversary of
the date of hire of such Optionee or such later date as the Administrator shall
determine (the “Anniversary Date”); and

(ii)           the balance of the Options in excess
of the Initial Vesting Amount (the “Excess Vesting Amount”) shall vest in the
Optionee at the rate of one thirty-sixth (1/36) per month on the last day of
each calendar month commencing with the calendar month next following the
Anniversary Date and continuing thereafter until fully vested;

If the Optionee is a
Consultant, such Options shall be fully vested on the date of grant or such
later date as the Administrator shall determine;

If the Optionee is a
non-Employee advisor, or a Director who is not also an Employee, the Options so
granted shall vest monthly in twenty-four (24) equal installments commencing
either (a) on the first day of the calendar month immediately following the
date of the grant of the Options or (b) such later date as the Administrator
shall determine and continuing thereafter on the first day of each successive
calendar month for twenty-four (24) months;

provided,
however, that notwithstanding the foregoing, and unless otherwise determined by
the Administrator, with respect to Optionees that are Employees, upon the
occurrence of a Liquidation or Corporate Transaction (A) prior to or on the
Anniversary Date, any unvested portion of the Initial Vesting Amount shall
become immediately and fully vested in the Optionee on the day immediately
preceding such Liquidation or Corporate Transaction, or (B) subsequent to the
Anniversary Date, 25% of any unvested portion of the Excess Vesting Amount
shall become immediately and fully vested in the Optionee on the day
immediately preceding such Liquidation or Corporate Transaction.  Unless otherwise determined by the
Administrator, with respect to Optionees that are non-

 7
 

 
  

Employee advisors,
Consultants or non-Employee Directors, upon the occurrence of a Liquidation or
Corporate Transaction, 25% of any unvested shares of Option Stock shall become
fully vested on the day immediately preceding the Liquidation or Corporate
Transaction.

At the time an Option is granted, the Administrator
shall determine any additional conditions which must be satisfied before the
Option may be exercised, which conditions shall be specified in the Option
Agreement.  Unless the Administrator
provides otherwise, vesting of Options granted hereunder shall be tolled during
any unpaid leave of absence.

(b)           PROCEDURE
FOR EXERCISE; RIGHTS AS A STOCKHOLDER.  An Option shall be deemed exercised when the
Corporation has received: (i) written or electronic notice of exercise (in
accordance with the Option Agreement) from the person entitled to exercise the
Option, (ii) full payment for the Shares with respect to which the Option is
exercised, and (iii) full payment to allow the Corporation to satisfy any
withholding tax obligations arising as a result of such exercise.  Full payment in each case may consist of any
consideration and method of payment authorized by the Administrator and
permitted by the Option Agreement and the Plan. 
An Option may not be exercised for a fraction of a Share.  Shares issued upon exercise of an Option
shall be issued in the name of the Optionee or, if requested by the Optionee,
in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Corporation or of a duly authorized
transfer agent of the Corporation), no right to vote or receive dividends or
any other rights as a stockholder shall exist with respect to such Shares,
notwithstanding the exercise of the Option. 
The Corporation shall issue (or cause to be issued) such Shares promptly
after the Option is exercised.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 14 of
the Plan.  Exercising an Option in any
manner shall decrease the number of Shares thereafter available, both for
purposes of the Plan and for exercise under the Option, by the number of Shares
as to which the Option is exercised.

(c)           TERMINATION
OF RELATIONSHIP AS A SERVICE PROVIDER.  Unless otherwise determined by the Administrator and
set forth in the Option Agreement, if Optionee is terminated as a Service
Provider for cause, his or her unexercised Option, whether vested or unvested
in whole or in part, shall immediately become terminated and lapse and the
Shares covered thereby shall revert to the Plan.  Unless otherwise provided by the
Administrator and set forth in the Option Agreement, if an Optionee ceases to
be a Service Provider, other than as a result of having been dismissed for
cause or upon the Optionee’s death or Disability, the Optionee may exercise his
or her Option within ninety (90) days or such shorter period of time as is
specified in the Option Agreement to the extent that the Option is vested on
the date of termination.  If, on the date
of termination, the Optionee is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the
Plan.  If, after termination, the
Optionee does not exercise his or her Option within the time specified by the
Administrator, the Option shall terminate and the Shares covered by such Option
shall revert to the Plan.

(d)           DEATH
OR DISABILITY OF OPTIONEE. 
Unless otherwise determined by the Administrator and set forth in the Option Agreement, if
an Optionee dies or incurs a Disability while a Service Provider, the Option
may be exercised within one (1) year after the death or Disability of the
Optionee, by the Optionee, the Optionee’s estate or a Person that acquired the
right to exercise the Option by bequest or inheritance where such Person is a
Family Member of

 8
 

 
  

the Optionee or a trust, corporation, partnership or
limited liability company, all of the beneficial interests in which are held by
the Optionee, the Optionee’s estate or Family Members of such Optionee.  An Option may be exercised pursuant to the
foregoing sentence only to the extent that such Option is vested on the date
the Optionee ceased to be a Service Provider. 
If, at the time the Optionee ceased to be a Service Provider, the
Optionee is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option shall immediately revert to the Plan.  The Option may be exercised by the Optionee
or executor or administrator of the Optionee’s estate or, if none, by the
person(s) entitled to exercise the Option under the Optionee’s will or laws of
descent or distribution.  If the Option
is not so exercised within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

(e)           BUYOUT
PROVISIONS.  The Administrator
may at any time offer to buy out for a payment in cash or Shares, an Option previously granted based
on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

11.          CORPORATE TRANSACTIONS.

(a)           ASSUMPTION OR REPLACEMENT OF OPTIONS BY
SUCCESSOR.  In the event of a
Corporate Transaction
any or all outstanding Options may be assumed or replaced by the successor
corporation, which assumption or replacement shall be binding on all
optionees.  In the alternative, the
successor corporation may substitute equivalent Options or provide
substantially similar consideration to optionees as was provided to
stockholders (after taking into account the existing provisions of the
Options).  The successor corporation may
also issue, in place of outstanding Option Shares of the Company held by the
Optionee, substantially similar shares or other property subject to repurchase
restrictions no less favorable to the Optionee. 
In the event such successor corporation, if any, refuses to assume or
replace the Options, as provided above, pursuant to a Corporate Transaction or
if there is no successor corporation due to a dissolution or liquidation of the
Corporation, such Options shall immediately vest as to 100% of the Shares
subject thereto at such time and on such conditions as the Board shall
determine and the Options shall expire at the closing of the transaction or at
the time of dissolution or liquidation.

(b)           OTHER TREATMENT OF OPTIONS.  Subject to any greater rights granted to
Optionees under Section 11(a), in
the event of a Corporate Transaction, any outstanding Options shall be treated
as provided in the applicable agreement or plan of merger, consolidation,
dissolution, liquidation or sale of assets.

(c)           ASSUMPTION OF OPTIONS ABSENT
CORPORATE TRANSACTION.  In the
event of a merger or consolidation
with another corporation (the “Target Corporation”) in which the stockholders
of the Corporation immediately prior to such merger or consolidation retain
fifty percent (50%) or more of the voting power and fully diluted common stock
of the combined corporation immediately following such merger or consolidation,
the Board, in its sole discretion, may provide that any or all outstanding
Options may be assumed or replaced by the Target Corporation, which assumption
or replacement shall be binding on all Optionees.  The Target Corporation may also issue, in
place of outstanding Option Shares of the Corporation held by the Optionee,
substantially similar shares or other property subject to repurchase
restrictions no less favorable to the Optionee. 
In the event Options are so assumed by the Target Corporation, the terms
and conditions of such Options shall remain unchanged (except that the exercise
price and

 9
 

 
  

the number and nature of Shares issuable upon exercise
of any such option will be adjusted appropriately pursuant to Section 424(a) of
the Code) or to reflect any applicable exchange ratio.

12.          NON-TRANSFERABILITY OF OPTIONS AND OPTION SHARES.

(a)           RESTRICTIONS
ON TRANSFER OF OPTIONS. 
Unless determined otherwise by the Administrator, Options may not be sold,
pledged, assigned, hypothecated, transferred or disposed of in any manner other
than by will or by the laws of descent or distribution, and, during the
lifetime of the Optionee, no Option may be exercised other than by the Optionee.

(b)           RESTRICTIONS
ON TRANSFER OF OPTION SHARES. 
Unless and until the Corporation has become a reporting company
with respect to any class of its equity securities under the Exchange Act, and
except as set forth in Section 11 of the Plan, Option Shares may not be sold,
pledged, assigned, hypothecated, transferred or disposed of in any manner (a “Transfer”)
other than by operation of law or expressly permitted herein, except that: (i)
Option Shares may be Transferred pursuant to any Transfer approved by the Board;
(ii) Option Shares may be Transferred by the Optionee of such Option Shares to
(A) a member of such Optionee’s immediate family, which shall include his
spouse, siblings, parents, children or grandchildren (collectively, “Family
Members”) or (B) a trust, corporation, partnership or limited liability
company, all of the beneficial interests in which shall be held by such
Optionee or one or more Family Members of such Optionee; provided, however,
that during the period that any such trust, corporation, partnership or limited
liability company holds any right, title or interest in any Option Shares, no
Person other than such Optionee or one or more Family Members of such Optionee
may be or may become beneficiaries, stockholders, limited or general partners
or members thereof; and (iii) Option Shares may be Transferred in connection
with and as a part of a Liquidation or Corporate Transaction.

13.          ADJUSTMENTS
UPON CHANGES IN CAPITALIZATION.  Subject to any required action by the stockholders of the Corporation,
the number of shares of Common Stock covered by each outstanding Option, and
the number of shares of Common Stock which have been authorized for issuance
under the Plan but as to which no Options have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option, as well
as the exercise price per Share of Common Stock covered by each such
outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination, recapitalization or
reclassification of the Common Stock or other distribution of the Corporation’s
equity securities without the receipt of consideration by the Corporation.  Such adjustment shall be made by the Board in
its sole discretion, whose determination in that respect shall be final,
binding and conclusive.  Except as
expressly provided herein, no issuance by the Corporation of Shares of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of Shares subject to an Option.

14.          DATE OF
GRANT.  The date of
grant of an Option shall be, for all purposes, the date on which the
Administrator makes the determination granting
such Option, or such other later date as is determined by the
Administrator.  Notice of the
determination, and an Option Agreement for execution, shall be provided to each
Optionee within a reasonable time after the date of such grant.

 10
 

 
  

15.          AMENDMENTS AND TERMINATION OF THE PLAN.

 

(a)           AMENDMENT
AND TERMINATION.  The Board
shall amend the Plan from time to time as required to comply with the requirements of
Applicable Laws, and may amend any or all Option Agreements as it deems
necessary or appropriate.  Additionally,
in its sole discretion the Board may at any time amend, alter, suspend or
terminate the Plan.

(b)           STOCKHOLDER
APPROVAL.  If necessary to
comply with Applicable Laws, the Corporation shall obtain stockholder approval of any Plan
amendment.

(c)           EFFECT
OF AMENDMENT OR TERMINATION. 
No amendment, alteration, suspension or termination of the Plan or any
Option Agreement shall impair the rights of any Optionee, unless mutually agreed
otherwise between the Optionee and the Administrator, which agreement must be
in writing and signed by the Optionee and the Corporation.  Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with
respect to Options granted under the Plan prior to the date of such
termination.

16.          CONDITIONS UPON ISSUANCE OF SHARES.

(a)           LEGAL
COMPLIANCE.  Shares shall not
be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Corporation with respect to such
compliance.

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

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

18.          RESERVATION
OF SHARES.  The
Corporation, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall
be sufficient to satisfy the requirements of the Plan.

19.          INFORMATION
TO OPTIONEES.  The
Corporation shall deliver to each Optionee financial statements of the Corporation at least annually as
required by the provisions of Rule 260.140.46 of Title 10 of the California
Code of Regulations.

[End of Plan]

 11

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