Document:

MANDALAY
      MEDIA, INC.

    AMENDMENT
      TO 2007 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK PLAN

    

    This
      Amendment (the “Amendment”) to the Mandalay Media, Inc. (the “Company”) 2007
      Employee, Director and Consultant Stock Plan (the “Plan”), is hereby effective
      as of February 12, 2008. Capitalized terms used in this Amendment and not
      otherwise defined herein shall have the meanings ascribed to them in the
      Plan.

    

    WHEREAS,
      the
      Company enacted the Plan in accordance with the purposes set forth
      therein;

    

    WHEREAS,
      Section
      31 of the Plan reserves to the Company’s board of directors (the “Board”) the
      power in its discretion to amend the Plan at any time and from time to time
      subject to applicable law and the rights of the Participants on the date of
      such
      action; 

    

    WHEREAS,
      the
      Board
      deems it appropriate to amend the Plan to increase the aggregate number of
      Shares which may be issued from time to time pursuant to the Plan from three
      million (3,000,000) shares to seven million (7,000,000) shares; and

    

    WHEREAS,
      the
      Board
      deems it appropriate to amend the Plan to increase the maximum number of Shares
      with respect to which Stock Rights may be granted to any Participant in any
      fiscal year from five hundred thousand (500,000) to six hundred thousand
      (600,000). 

    

    NOW,
      THEREFORE,
      the Plan
      is hereby amended as set forth below:

    

    1. Section
      3(a) of the Plan is hereby amended by deleting “three million (3,000,000)” from
      the second line thereof and inserting “seven million (7,000,000)” in its
      place.

    

    2.
       Section
      4(c) of the Plan is hereby amended by deleting “500,000” from the third line
      thereof and inserting “600,000” in its place. 

    

    3. The
      Plan
      shall remain in full force and effect except as specifically amended
      herein.TWISTBOX

     

    2006
      STOCK INCENTIVE PLAN

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    TWISTBOX

     

    2006
      STOCK INCENTIVE PLAN

     

      
        

      

    

     

    ARTICLE
      I

    PURPOSE

     

    The
      purpose of the Plan is to enhance the profitability and value of the Company
      for
      the benefit of its shareholder by enabling the Company to offer Eligible
      Employees, Consultants and Non-Employee Directors stock options, restricted
      stock and other stock-based awards, thereby creating a means to raise the level
      of stock ownership by such individuals to attract, retain and reward such
      individuals and strengthen the mutuality of interests between such individuals
      and the Company's shareholders.

     

    ARTICLE
      II

    DEFINITIONS

     

    For
      purposes of the Plan, the following terms shall have the following
      meanings:

     

    2.1.
      “Acquisition
      Events”
      has the meaning set forth in Section 4.2(d).

     

    2.2.
      “Award”
      means any award under the Plan of any Stock Option, Restricted Stock or Other
      Stock-Based Award. All Awards shall be confirmed by, and subject to the terms
      of, a written or electronic agreement executed by the Company and the
      Participant. Any reference herein to an agreement in writing shall be deemed
      to
      include an electronic writing to the extent permitted by applicable
      law.

     

    2.3.
      “Board”
      means the Board of Directors of the Company.

     

    2.4.
      “Cause”
      means, with respect to a Participant’s
      Termination of Employment or Termination of Consultancy, the following: (a)
      in
      the case where there is no employment agreement, consulting agreement, change
      in
      control agreement or similar agreement in effect between the Company or a
      Subsidiary and the Participant at the time of the grant of the Award (or where
      there is such an agreement but it does not define “cause” (or words of like
      import)), termination due to a Participant’s
      insubordination, dishonesty, fraud, incompetence, moral turpitude, misconduct,
      refusal to perform his or her duties or responsibilities for any reason other
      than illness or incapacity or unsatisfactory performance of his or her duties
      for the Company or a Subsidiary, as determined by the Committee in its sole
      discretion; or (b) in the case where there is an employment agreement,
      consulting agreement, change in control agreement or similar agreement in effect
      between the Company or a Subsidiary and the Participant at the time of the
      grant
      of the Award or an Award agreement that defines “cause” (or words of like
      import), “cause” as defined under such agreement; provided, that with regard to
      any agreement under which the definition of “cause” only applies on occurrence
      of a change in control, such definition of “cause” shall not apply until a
      change in control actually takes
      place
      and
      then
      only with regard to a termination thereafter. With respect to a Participant’s
      Termination of Directorship, “cause” means an act or failure to
      act
      that constitutes
      cause for removal of a director
      under applicable Delaware law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.5.
      “Change
      in Control”
      has
      the
      meaning set forth in Section 10.2.

    

    2.6.
      “Code”
      means the
      Internal Revenue Code of 1986,
      as
      amended. Any reference
      to any section of the Code shall also be a reference to any successor provision
      and
      any
      Treasury Regulation promulgated thereunder.

    

    2.7.
      “Committee” means
      (a)
      prior to the Registration Date, a committee or subcommittee
      of
      the
      Board appointed from time to time by the Board and (b) following the
      Registration Date, a committee or subcommittee of the Board appointed from
      time
      to time
      by
      the Board that shall consist of two or more non-employee directors, each of
      whom
      is
      intended to be, to the extent required by Rule 16b-3, a “non-employee director”
as
      defined in Rule 16b-3
      and
      comply with
      any
      applicable stock
      exchange
      rules; provided, however, that if for any reason the appointed Committee does
      not meet the requirements of Rule 16b-3 such noncompliance shall not affect
      the
      validity of grants, interpretations or
      other
      actions of the Committee. With respect to the application of the Plan to Non
      -Employee
      Directors, the Committee shall refer to the Board. Notwithstanding the
      foregoing, if, and to the extent that no Committee exists that has the authority
      to administer
      the Plan, the functions of the Committee shall be exercised by the Board and
      all
      references herein to the Committee shall be deemed to be references to the
      Board.

    

    2.8.
      “Common
      Stock”
      means the
      common stock of the Company, $0.001 par value
      per
      share.

    

    2.9.
      “Company”
      means
      The WATT Corp., a California corporation, and its successors by operation of
      law.

    

    2.10.
      “Consultant” means
      any
      natural person who is an advisor or consultant that provides bona fide services
      to the Company or its Subsidiaries, provided that such services
      are not
      in
connection
      with the offer or sale of securities in a capital raising transaction, and
      do
      not directly or indirectly promote or maintain a market for the Company's
      or its Subsidiaries' securities.

    

    2
      11.
“Disability” means,
      with respect to
      a
      Participant’s
      Termination, a
      permanent
      and total disability as defined in Section 22(e)(3) of the Code; provided,
      that
for
      Awards that are subject to Section 409A of the Code, Disability shall mean
      that
      a Participant
      is disabled under Section 409A(a)(2)(C)(i) of the Code. A Disability shall
      only
      be
      deemed to occur at the time of the determination by the Committee of the
Disability.

    

    2.12.
      “Effective
      Date” means
      the
      effective date of the Plan as defined in Article XV.

    

    2.13.
      “Eligible
      Employee”
      means
      each employee of the company or  a
      Subsidiary.

    

    
      
        
        

      

      
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    2.14.
      “Exchange
      Act”
      means
      the Securities Exchange
      Act of 1934, as amended,
      and all
      rules and regulations promulgated thereunder. Any references to any section
      of
the
      Exchange Act shall also be a reference to any successor provision and all rules
      and regulations promulgated thereunder.

    

    2.15
      “Fair
      Market Value” means,
      for purposes of the Plan, unless otherwise
      required
      by any applicable provision of the Code, as of any date and except as provided
      below,
      (a) if the Common
      Stock is not readily tradable on an established securities market
      as
      determined under Section 409A of the Code or other guidance promulgated
      thereunder, a value determined by the reasonable application of a reasonable
      valuation method
      in
      accordance with Section 409A of the Code or other guidance promulgated
thereunder
      or (b) if the Common Stock is readily tradable on an established securities
      market as determined under Section 409A of the Code or other guidance
      promulgated thereunder, a value based on the closing price reported for the
      Common Stock on the trading day before the determination. Notwithstanding
      anything herein to the contrary, for purposes of granting Incentive Stock
      Options, “Fair Market Value” means the price for Common Stock set by the
      Committee in good faith based on reasonable methods set forth under Section
      422
      of the
      Code
      including, without limitation, a method utilizing the average of prices of
      the
      Common Stock reported on the principal national securities exchange on which
      it
      is then traded during a reasonable period designated by the
      Committee.

    

    2.16.
      “Family
      Member”
      means
      “family member” as defined in Rule 701 under the
      Securities Act or, following the filing of a Form S-8 pursuant to the Securities
      Act with
      respect
      to the Plan, as in Section Al(5) of the general instructions of Form
      S-8.

    

    2.17. “Incentive
      Stock Option”
      means
      any
      Stock Option awarded to an Eligible
      Employee under the Plan intended to be and designated as an “Incentive Stock
Option”
      within the meaning of Section
      422 of the
      Code.

    

    2.18.
      “Listing
      Date” means
      the
      first
date
      upon
      which any security of the Company
      is listed (or approved for listing) upon notice of issuance on any securities
      exchange or designated (or approved for designation) upon notice of issuance
      as
      a national
      market security on an interdealer quotation
      system
      if
      such securities exchange
      or
      interdealer
      quotation system has been certified in accordance with the
      provisions of Section
      25100(o) of the California Corporate
      Securities
      Law of 1968.

    

    2.19. “Non-Employee
      Director”
      means
      a
“non-employee director” as defined
      in
      Rule
      16b-3.

     

    2.20. “Non-Qualified
      Stock Option” means
      any
Stock
      Option awarded
      under the
      Plan
      that is not an Incentive
      Stock Option.

    

    2.21.
      “Other
      Stock-Based Award” means
      an
Award
      of
      Common Stock and other
      awards (including
      awards of cash, restricted stock
      units and performance share awards)
      made pursuant
      to Article VIII that are valued in whole or in part by reference to, or are
      payable in or otherwise based on, Common Stock, including, without limitation,
      an Award valued by reference to a Subsidiary.

    

    
      
        
        

      

      
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    2.22.
      “Parent” means
      any
      parent corporation of the Company within the meaning of Section 424(e) of the
      Code.

    

    2.23.
      “Participant” means
      any
      Eligible Employee, Consultant or Non-Employee Director to whom an Award has
      been
      granted under the Plan.

    

    2.24.
      “Person” means
      any
      individual, corporation, partnership, limited liability company, firm, joint
      venture, association, joint-stock company, trust, incorporated organization,
      governmental or regulatory or other entity.

    

    2.25.
      “Plan”
      means
The
      WAAT
Corp.
      2006 Stock Incentive Plan, as amended from
      time
      to time.

    

    2.26.
      “Registration Date” means
      the
      first date after the Effective Date (a) on which
      the
      Company sells its Common Stock in a bona fide, firm commitment underwriting
      pursuant to a registration statement under the Securities Act or (b) any class
      of common equity securities of the Company is required to be registered under
      Section 12
      of
      the
      Exchange Act.

    

    2.27.
      “Restricted
      Stock” means
      a
      share of Common Stock issued under the Plan that is subject to restrictions
      under Article VII.

    

    2.28.
      “Restriction
      Period” has
      the
      meaning set forth in Section 7.1.

    

    2.29.
      “Retirement” means
      a
      Termination of Employment or Termination of Consultancy
      for any reason other than for Cause at or after age 65 or such earlier date
      after age 50 as may be approved by the Committee with regard to such
      Participant. With
      respect
      to a Participant’s
      Termination of Directorship, Retirement means the failure to stand
      for
      reelection (other than a Termination for Cause) on or after a Participant has
      attained age 65 or, with the consent of the Board, before age 65 but after
      age
      50.

    

    2.30.
      “Rule 16b-3”
      means Rule 16b-3 under Section 16(b) of the Exchange Act as
      then
      in effect or any successor provision.

    

    2.31.
      “Securities
      Act” means
      the
      Securities Act of 1933, as amended and all rules and regulations promulgated
      thereunder. Any reference to any section of the Securities Act shall also be
      a
      reference to any successor provision and all rules and regulations
      promulgated thereunder.

    

    2.32.
      “Shareholders
      Agreement”
      means
      the
      Shareholders Agreement dated December 16, 2005 entered into by and among the
      Company and certain individuals set forth
      therein, as amended from time to time in accordance with the terms
      thereof.

    

    
      
        
        

      

      
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    2.33.
      “Stock
      Option” or “Option”
      means
      any option to purchase shares of Common
      Stock granted to Eligible Employees, Non-Employee Directors or Consultants
      under
      Article VI.

     

    2.34.
      “Subsidiary” means
      any
      subsidiary corporation of the Company within the meaning of Section 424(f)
      of
      the Code.

    

    2.35.“Ten
      Percent Stockholder”
      means a
      person owning stock
      possessing rare than 10% of the total combined voting power of all classes
      of
      stock of the Company,
      its Subsidiaries or its Parent.

     

    2.36.
      “Termination”
      means
      a
      Termination of Consultancy, Termination of Directorship or Termination of
      Employment, as applicable.

     

    2.37.
      “Termination
      of Consultancy”
      means:
      (a)
      that
      the
      Consultant is no longer
      acting as a consultant to the Company or a Subsidiary; or (b) when an entity
      that is retaining a Participant as a Consultant ceases to be a Subsidiary unless
      the Participant otherwise is, or thereupon becomes, a Consultant to the Company
      or a Subsidiary at the time
      the
      entity ceases to be a Subsidiary. In the event that a Consultant becomes an
      Eligible
      Employee or a Non-Employee Director upon the termination of his or her
consultancy,
      unless otherwise determined by the Committee, in its sole discretion, no
      Termination of Consultancy shall be deemed to occur until such time as such
      Consultant is
      no
      longer a Consultant, Eligible Employee or Non-Employee Director. Notwithstanding
      the foregoing, the Committee may otherwise define Termination of Consultancy
      in
      the Award agreement or, if no rights of a Participant are reduced, may otherwise
      define Termination of Consultancy thereafter.

     

    2.38.
      “Termination
      of Directorship” means
      that the Non-Employee Director has
      ceased to the a director of the Company; except that if a Non-Employee Director
      becomes
      an Eligible Employee or a Consultant upon the termination of his or her
      directorship, his or her ceasing to be a director of the Company shall not
      be
      treated as a Termination of Directorship unless and until the Participant has
      a
      Termination of Employment
      or Termination of Consultancy, as the case may be.

    

    2.39.
      “Termination
      of Employment” means:
      (a) a termination of employment
      (for reasons other than a military or approved personal
      leave
      of
      absence) of a Participant from the Company and its Subsidiaries; or (b) when
      an
      entity that is employing a
      Participant
      ceases to be a Subsidiary, unless the Participant otherwise is, or thereupon
      becomes,
      employed by the Company or a Subsidiary at the time the entity ceases to be
      a
Subsidiary.
      In the event that an Eligible Employee becomes a Consultant or Non-Employee
      Director upon the termination of his or her employment, unless otherwise
determined
      by the Committee, in its sole discretion, no Termination of Employment shall
      be
      deemed to occur until such time as such Eligible Employee is no longer an
      Eligible Employee, Consultant or Non-Employee Director. Notwithstanding the
      foregoing, the Committee
      may otherwise define Termination of Employment in the Award agreement
      or,
      if no
      rights of a Participant are reduced, may otherwise define Termination of
Employment
      thereafter.

     

    
      
        
        

      

      
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    2.40. “Transfer”
      means: (a) when used as a noun, any direct or indirect transfer, sale,
      assignment, pledge, hypothecation, encumbrance or other disposition (including
      the issuance of equity in a Person), whether for value or no value and whether
      voluntary or involuntary (including by operation of law), and (b) when used
      as a
      verb, to directly or indirectly
      transfer, sell, assign, pledge, encumber, charge, hypothecate or otherwise
      dispose
      of (including the issuance of equity in a Person) whether for value or for
      no
      value and whether voluntarily or involuntarily (including by operation of law).
      “Transferred”
      and
      “Transferable” shall have a correlative meaning.

    

    ARTICLE
      III

    ADMINISTRATION

    

    3.1. The
      Committee. The
      Plan
      shall be administered and interpreted by the Committee.

    

    3.2. Grants
      of Awards. The
      Committee shall have full authority to grant Awards to Eligible Employees,
      Consultants and Non-Employee Directors pursuant to the terms of the Plan. All
      Awards shall be granted by, confirmed by, and subject to the terms of,
      a
      written agreement executed by the Company and the Participant. In
      particular, the Committee
      shall have the authority:

    

    (a) to
      select
      the Eligible Employees, Consultants and Non-Employee Directors
      to whom Awards may from time to time be granted hereunder;

    

    (b) to
      determine whether and to what extent Awards are to be granted hereunder
      to one or more Eligible Employees, Consultants and Non-Employee Directors;

    

    (c) to
      determine, in accordance with the terms of the Plan, the number of
      shares
      of Common Stock to be covered by each Award granted hereunder;

    

    (d) to
      determine the terms and conditions, not inconsistent with the terms
      of
      the Plan, of any Award granted hereunder (including, but not limited to,
the
      exercise or purchase price (if any), any restriction or limitation, any vesting
      schedule
      or acceleration thereof and any forfeiture restrictions or waiver thereof,
      regarding any Award and the shares of Common Stock relating thereto, based
      on
such
      factors, if any, as the Committee shall determine, in its sole
      discretion);

    

    (e) to
      determine whether and under what circumstances a
      Stock
Option
      may be settled in cash, Common Stock and/or Restricted Stock
      under Section
      6.3(d);

    

    (f) to
      determine whether, to what extent and under what circumstances to
      provide loans (which may be on a recourse basis and shall bear interest at
      the
rate
      the
      Committee shall provide) to Participants in order to exercise Awards or to
      purchase
      or pay for shares of Common Stock issuable pursuant to Awards,
      provided
      that on and after the Registration Date executive officers and directors
are
      not
      eligible to receive such loans, and provided further, that all outstanding
      loans
      shall be repaid before the Registration Date;

     

    
      
        
        

      

      
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    (g) to
      determine whether a Stock Option is an Incentive Stock Option or
      Non-Qualified Stock Option;

     

    (h) to
      determine whether to require an Eligible Employee,
      Non-Employee
      Director or Consultant, as a condition of the granting of any Award,
not
      to
      sell or otherwise dispose of shares of Common Stock acquired pursuant to
the
      Award
      for a period of time as determined by the Committee, in
      its
      sole discretion, following the date of the Award;

     

    (i) to
      modify, extend or renew an Award, subject to Article XI herein, provided,
      however, that if a Stock Option is modified, extended or renewed and
thereby
      deemed to be the issuance of a new Stock Option under the Code or the
applicable
      accounting rules, the exercise price of a Stock Option may continue to
be
      the
      original exercise price even if less than the Fair Market Value of
      the
Common
      Stock at the time of such modification, extension or renewal; and

    

    (j) to
      offer
      to buy out a Stock Option previously granted, based on such
      terms and conditions as the Committee shall establish and communicate to
the
      Participant at the time such offer is made.

     

    3.3. Guidelines. Subject
      to Article XI hereof, the Committee shall have the authority to adopt, alter
      and
      repeal such administrative rules, guidelines and practices governing the Plan
      and perform all acts, including the delegation of its administrative
      responsibilities to the extent permitted by applicable law and applicable stock
      exchange rules,
      as
      it shall, from time to time, deem advisable; to construe and interpret the
      terms
and
      provisions of the Plan and any Award granted under the Plan (and any agreements
      relating
      thereto); and to otherwise supervise the administration of the Plan.
The
      Committee
      may correct any defect, supply any omission or reconcile any inconsistency
      in
the
      Plan
      or in any agreement relating thereto in the manner and to the extent it shall
      deem necessary to effectuate the purpose and intent of the Plan. The
      Committee may adopt special
      guidelines and provisions for persons who are residing in or employed in, or
      subject to, the taxes of, any domestic or foreign jurisdictions to comply with
      applicable tax
      and
      securities laws and may impose any limitations and restrictions that it deems
      necessary
      to comply with the applicable tax and securities laws of such domestic or
      foreign jurisdictions. To the extent applicable, the Plan is intended to comply
      with the applicable requirements of Rule 16b-3 and shall be limited, construed
      and interpreted in a manner
      so
      as to comply therewith.

     

    3.4. Decisions
      Final.
      Any
      decision, interpretation or other action made or taken
      in
      good faith by or at the direction of the Company, the Board or the Committee
      (or
      any of its members) arising out of or in connection with the Plan shall be
      within the absolute discretion of all and each of them, as the case may be,
      and
      shall be final, binding and conclusive on the Company and all employees and
      Participants and their respective heirs,
      executors, administrators, successors and assigns.

     

    
      
        
        

      

      
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    3.5.  Reliance
      on
      Counsel. The
      Company, the
      Board
      or the Committee may consult
      with legal counsel, who
      may be
      counsel for the Company or other counsel, with respect
      to its obligations or duties hereunder, or with respect to any action or
      proceeding or any question of law, and shall not be liable with respect to
      any
      action taken or omitted by it in good faith pursuant to the advice of such
      counsel.

     

    3.6. Procedures.
      If the
      Committee is appointed, the Board shall designate one of
      the
      members of the Committee as chairman and the Committee shall hold meetings,
      subject
      to the By-Laws of the Company, at such times and places as it shall deem
advisable,
      including, without limitation, by telephone conference or by written consent
      to
the
      extent permitted by applicable law. A majority of the Committee members shall
      constitute
      a quorum. All determinations of the Committee shall be made by a majority of
      its
      members. Any decision or determination reduced to writing and signed by all
      the
Committee
      members in accordance with the By-Laws of the Company, shall be fully as
effective
      as if it had been made by vote at a meeting duly called and held. The
      Committee
      shall keep minutes of its meetings and shall make such rules and regulations
      for
      the conduct of its business as it shall deem advisable.

    

    3.7. Designation
      of Consultants/Liability. (a)
      The
      Committee may designate employees
      of the Company and professional advisors to assist the Committee in the
      administration of the Plan (to the extent permitted by applicable law and
      applicable stock exchange
      rules) and may grant authority to officers to execute agreements or other
      documents on behalf of the Committee.

    

    (b) The
      Committee may employ such legal counsel, consultants and agents
      as
      it may deem desirable for the administration of the Plan and may rely upon
      any
      opinion received from any such counsel
      or consultant and any computation received from any such consultant or agent.
      Expenses
      incurred by the
      Committee or the Board in the engagement of any such counsel, consultant or
      agent
      shall be paid by the Company.
      The
      Committee, its members and any person designated
      pursuant to this Section 3.7 above shall not be liable for any action or
determination
      made in good faith with respect to the Plan. To
      the
      maximum extent
      permitted by applicable law, no officer of the Company or member or
      former
      member of the Committee or of the Board shall be liable for any action or
      determination made in good faith with respect to the Plan or any Award granted
      under it.

    

    3.8. Indemnification. To
      the
      maximum extent permitted by applicable law and the Certificate of Incorporation
      and By-Laws
      of the Company and to the extent not covered
      by insurance directly insuring
      such person,
      each officer and member or former member
      of
      the Committee or the Board shall be indemnified and held harmless by the Company
      against any cost or expense (including reasonable fees of counsel reasonably
      acceptable to the Committee) or liability (including any sum paid in settlement
      of a claim with the approval of the Committee), and advanced amounts
      necessary
      to pay the foregoing
      at the earliest time and to the fullest extent permitted, arising out of any
      act
      or omission to act in connection with the administration of the Plan, except
      to
      the extent arising
      out of such officer’s, member’s or former member’s own fraud or bad faith.
Such
      indemnification
      shall be in addition to any rights of indemnification the employees, officers,
      directors or members or former officers, directors or members may have under
      applicable law or under the Certificate of Incorporation or By-Laws of the
      Company or any Subsidiary. Notwithstanding anything else herein, this
      indemnification will not apply to the actions or determinations made by an
      individual with regard to Awards granted to him or her under the
      Plan.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    3.9.
      Shareholders
      Agreement. Notwithstanding
      anything herein to the contrary, the Plan and the operation and administration
      of the Plan (including any action taken by the Committee) shall be subject
      to
      the terms and conditions set forth in the Shareholders Agreement to the greatest
      extent permissible under applicable law.

     

    ARTICLE
      IV

    SHARE
      AND
      OTHER LIMITATIONS

    

    4.1.
      Shares.
      The
      aggregate number of shares of Common Stock that may be issued or used for
      reference purposes under the Plan or with respect to which Awards may
      be
      granted under the Plan shall not exceed 2,463,422 shares (subject to
      any increase or decrease pursuant to Section 4.2),
      which
      may
      be either authorized and unissued Common
      Stock or Common Stock held in or acquired for the treasury of the Company or
      both. To
      the
      extent that a distribution pursuant to an Award is made in cash, the share
      reserve shall be reduced by the number of shares of Common Stock bearing a
      value
      equal to the amount of the cash distribution as of the time that such amount
      was
      determined.

    

    4.2.
      Changes.

     

    (a)
      The
      existence of the Plan and the Awards granted hereunder shall not
      affect in any way the right or power of the Board or the shareholders of the
      Company
      to make or authorize (i) any adjustment,
      recapitalization, reorganization or
      other
      change in the Company's capital structure or its business, (ii) any merger
      or
      consolidation of the Company or any Subsidiary, (iii) any issuance
      of bonds, debentures,
      preferred or prior preference stock ahead of or affecting the Common
Stock,
      (iv) the dissolution or liquidation of the Company or any Subsidiary,
(v)
      any
      sale
      or transfer of all or part of the assets or business of the Company or any
      Subsidiary
      or (vi) any other corporate act or proceeding.

     

    
      
        
        

      

      
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    (b)
      Subject to the provisions of Section 4.2(d),
      in
      the
      event of any such change
      in
      the capital structure or business of the Company by reason of any stock
split,
      reverse stock split, stock dividend, combination or reclassification of shares,
      recapitalization,
      or other change in capital structure of the Company,
      merger, consolidation,
      spin-off, reorganization, partial or complete liquidation, issuance of
rights
      or
      warrants to purchase any Common Stock or securities convertible into
Common
      Stock, any sale or transfer of all or part of the Company's assets or
      business,
      or any other corporate transaction or event having an effect similar to
any
      of
      the foregoing and effected without receipt of consideration by the Company,
      then
      the aggregate number and kind of shares that thereafter may be issued under
      the
      Plan, the number and kind of shares or other property (including cash) to be
      issued upon exercise of an outstanding Stock Option or under other Awards
      (“Exercisable Awards”) granted under the Plan and the
      purchase or exercise
      price thereof shall be appropriately adjusted consistent with such change
in
      such
      manner as the Committee may deem equitable to prevent substantial dilution
      or enlargement of the rights granted to, or available for,
      Participants under the Plan, and any such adjustment determined by the Committee
      in good faith shall be final, binding and conclusive on the Company and all
      Participants and
      their
      respective heirs, executors, administrators, successors and assigns.
In
      connection
      with any event described in this sub-section, the
      Committee may provide,
      in its sole discretion, for the cancellation of any outstanding Awards and
      payment in cash or other property in exchange therefor. Except
      as
      provided in this
      Section 4.2, a Participant shall have no rights by reason of any issuance by
      the
      Company of any class of securities convertible into stock of any class,
any
      subdivision
      or consolidation of shares of stock of any class, the payment of any
stock
      dividend, any other increase or decrease in the number of shares of stock of
      any
      class, any sale or transfer of all or part of the Company's assets or business
      or any
      other
      change affecting the Company's capital structure or business.

    

    (c)
      Fractional shares of Common Stock resulting from any adjustment in
      Exercisable Awards pursuant to Section 4.2(a) or (b) shall be aggregated until,
      and
      eliminated at the time of such adjustment by rounding-down for fractions less
      than
      one-half and rounding-up for fractions equal to or greater than one-half;
      provided,
      however, that any such fractional shares of Common Stock resulting from any
      adjustment to an Incentive Stock Option shall be eliminated by rounding down.
      No
      fractional shares of Common Stock shall be issued under the Plan. Notice of
      any
      adjustment shall be given by the Committee to each Participant whose
      Award has been adjusted and such adjustment (whether or not such notice
is
      given)
      shall be effective and binding for all purposes of the Plan.

     

    
      
        
        

      

      
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    (d)
      In
      the
      event of a merger or consolidation in which the Company is not
      the
      surviving entity or in the event of any transaction that results in
      the
acquisition
      of all or substantially all of the Company's outstanding
      Common Stock
      (or
      the acquisition of more than fifty percent (50%)ofthe
      voting interests of
      all
      outstanding classes of stock of the Company) by a single person or entity or
      by
      a
      group of persons and/or entities acting in concert, or in the event of the
      sale
or
      transfer of all or substantially all of the Company's assets (all of the
      foregoing being
      referred to as “Acquisition Events”), then the Committee may, in its
sole
      discretion,
      terminate all outstanding Exercisable Awards, effective as of the date of the
      Acquisition Event, by delivering notice of termination to each Participant
      at
least
      20
      days prior to the date of consummation of the Acquisition Event, in
      which
      case during the period from the date on which such notice of termination is
      delivered to the consummation of the Acquisition Event, each such Participant
      shall have the right to exercise his or her Exercisable Awards that
      are
      then outstanding
      to the extent vested as of the date on which such notice of termination
is
      delivered (or, at the discretion of the Committee, without regard to, or subject
      to,
      any
      limitations on
      exercisability otherwise
      contained in
      the
      Award agreements),
      but any such exercise shall be contingent upon and subject to the occurrence
      of the Acquisition Event, and, provided that, if the Acquisition Event
does
      not
      take place within a specified period after giving such notice for
      any
reason
      whatsoever, the notice and exercise pursuant thereto shall be null and void.
      If
      the Acquisition Event does take place after giving of such notice, any
      Exercisable Award not exercised prior to the date of the consummation of such
      Acquisition Event shall be forfeited simultaneous with the consummation of
      the
Acquisition
      Event.

    

    If
      an
      Acquisition Event occurs but the Committee
      does not terminate the outstanding
      Exercisable Awards pursuant to this Section 4.2(d),
      then
      the
      provisions of Section
      4.2(b) shall apply.

     

    4.3.
      Minimum
      Purchase Price. Notwithstanding
      any provision of the Plan to the contrary, if authorized but previously unissued
      shares of Common Stock are issued under the Plan, such shares shall not be
      issued for a consideration that is less than as permitted
      under applicable law.

    

    4.4.
      Assumption
      of Awards. Stock
      options that were granted by the Company prior to the Effective Date shall
      for
      all purposes be treated as if granted under the Plan and shall be governed
      by
      the terms of the Plan as of the Effective Date.

    

    ARTICLE
      V

    ELIGIBILITY

     

    5.1. General
      Eligibility.
      All
      Eligible Employees, Non-Employee Directors and Consultants
      and prospective Eligible Employees, Consultants and Non-Employee Directors
      are
      eligible to be granted Non-Qualified Stock Options, Restricted Stock and Other
      Stock-Based Awards. Eligibility for the grant of Awards and actual participation
      in
      the
      Plan shall be determined by the Committee in its sole discretion.

    

    5.2. Incentive
      Stock
      Options.
      All
      Eligible Employees of the Company and its Subsidiaries
      are eligible to be granted Incentive Stock Options under the Plan. Eligibility
      for
      the grant of an Incentive Stock Option and actual participation in the Plan
      shall be determined by the Committee in its sole discretion.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    5.3.
      General
      Requirement. The
      granting, vesting and exercise of Awards
      granted
      to
      a
      prospective Eligible Employee Consultant
      or Non-Employee Director
      are conditioned
      upon such individual actually becoming an Eligible Employee, Consultant or
      Non-Employee Director, provided that no Award may be granted to a prospective
      Eligible
      Employee, Consultant or Non-Employee Director unless the Company determines
      that the Award will comply with applicable laws, including the securities laws
      of
      all
      relevant jurisdictions.

    

    ARTICLE
      VI

    STOCK
      OPTIONS

    

    6.1.
      Stock
      Options. Each
      Stock Option granted hereunder shall be one of two types:
      (a) an Incentive Stock Option;
      or (b)
      a Non-Qualified Stock
      Option.

    

    6.2.
      Grants. Subject
      to the provisions of Article V, the Committee shall have the
      authority
      to grant to any Eligible
      Employee one or more Incentive Stock
      Options, Non-Qualified Stock Options or both types of Stock Options.
To
      the
      extent that any Stock
      Option does not qualify
      as an Incentive
      Stock Option (whether because of its provisions or the time or manner of its
      exercise or otherwise), such Stock Option or the portion thereof that does
      not
      qualify, shall constitute a separate Non-Qualified Stock Option.
      The Committee shall have the authority to grant any Consultant or
      Non-Employee
      Director one or more Non-Qualified Stock Options.

    

    6.3.
      Terms
      of Stock Options.
      Stock
      Options shall be subject to the following terms and conditions, and shall be in
      such form and contain such additional terms and conditions, not inconsistent
      with the terms of the Plan (including Article XVII), as the Committee
      shall deem desirable:

    

       
      (a) Exercise
      Price The
      exercise price
      per
      share
      of Common Stock subject to a Stock Option
      shall
      be
determined
      by the Committee at the time of grant; provided
      that the
      per
      share exercise price of a Stock
      Option
      shall not be less than
      100%
      of the Fair Market Value of the share of Common Stock at the time of
grant;
      and provided, further, that if an Incentive Stock Option is granted to a Ten
      Percent
      Stockholder, the exercise price per share shall
      be
      no
      less than 110% of the Fair
      Market Value of the Common Stock.

    

    (b)
      Stock
      Option Term. The
      term
      of each Stock Option
      shall
      be
      fixed
by
      the
      Committee; provided, however, that no Stock Option shall be exercisable
more
      than
      10 years after the date such Stock Option is granted; and
      further provided
      that the term of an Incentive Stock Option granted to a Ten Percent Stockholder
      shall not exceed five years.

    

    (c)
      Exercisability.
      Stock
      Options shall be exercisable at such time or times
      and
      subject to such terms and conditions as shall be determined by the Committee
      at the time of grant. If the Committee provides, in its discretion, that
any
      Stock
      Option is exercisable subject to certain limitations (including, without
limitation,
      that such Stock Option is exercisable only in installments or
      within
certain
      time periods or upon the attainment of certain financial results or
      other
criteria),
      the Committee may waive such limitations on the exercisability at any
time
      at
      or after grant in whole or in part (including, without limitation, waiver of
      the
      installment exercise provisions or acceleration of the time at which such Stock
      Option
      may be exercised), based on such factors, if any, as the Committee shall
determine,
      in its sole discretion.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (d)
      Method
      of Exercise. Subject
      to whatever installment exercise and waiting
      period provisions apply under sub-section (c) above, to the extent vested,
      a
      Stock Option may be exercised in whole or in part at any time and from time
      to
time
      during the Stock Option term by giving written notice of exercise to
      the
Committee
      specifying the number of shares to be acquired. Such
      notice shall be accompanied
      by payment in full of the purchase price as follows: (i) in cash or by
check,
      bank draft or money order payable to the order of the Company; (ii) to the
      extent
      permitted by law, if the Common Stock is traded on a national securities
exchange,
      The Nasdaq Stock Market, Inc. or quoted on a national quotation
      system
      sponsored by the National Association of Securities Dealers, through
      a
procedure
      whereby the Participant delivers irrevocable instructions to
      a
      broker reasonably
      acceptable to the Committee to deliver promptly to the Company an amount equal
      to the purchase price, to the extent authorized by the Committee; or (iii)
      on
      such other terms and conditions as may be acceptable to the Committee
      (including, without limitation, the relinquishment of Stock Options or by
      payment in
      full
      or in part in the form of Common Stock owned by the Participant (and for
which
      the
      Participant has good title free and clear of any liens and encumbrances)
based
      on
      the Fair Market Value of the Common Stock on the payment date). No
      shares
      of
      Common Stock shall be issued until payment therefor, as
      provided herein,
      has been made or provided for.

     

    (e)
      Incentive
      Stock
      Option
      Limitations.
      To the
      extent that the aggregate
      Fair Market Value (determined as of the time of grant) of the Common
Stock
      with respect to which Incentive Stock Options are exercisable for the first
      time
      by an Eligible Employee during any calendar year under the Plan and/or any
      other
      stock option plan of the Company, any Subsidiary or any Parent exceeds $100,000,
      such Options shall be treated as Non-Qualified Stock Options. In
      addition,
      if an Eligible Employee does not remain employed by the Company, any
Subsidiary
      or any Parent at all times from the time an Incentive Stock Option is
granted
      until three months prior to the date of exercise thereof (or such other
      period
      as
      required by applicable law), such Stock Option shall be treated as
      a
Non-Qualified
      Stock Option. Should
      any provision of the Plan not be necessary in
      order
      for the Stock Options to qualify as Incentive Stock Options, or should
any
      additional provisions be required, the Committee
      may amend the Plan accordingly,
      without the necessity of obtaining the approval of the shareholders of
the
      Company.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (f)
      Form,
      Modification,
      Extension
      and
      Renewal of Stock Options. Subject
      to the terms and conditions and within the limitations
      of the Plan, Stock Options
      shall be evidenced by such form of agreement or
      grant
      as is approved by the
      Committee, and the Committee may (i) modify, extend
      or
      renew outstanding Stock
      Options (provided that the rights of a Participant are
      not
      reduced without his
      or
      her consent), and (ii) accept the surrender of outstanding Stock
      Options (up to
      the
      extent not theretofore exercised) and authorize the
      granting of new Stock Options
      in substitution therefor (to the extent not theretofore exercised).

    

    (g)
      Early
      Exercise. The
      Committee may provide that a Stock Option include
      a
      provision whereby the Participant may
      elect
      at any time before the Participant’s
      Termination to exercise the Stock Option as
      to any
      part or all of the shares
      of
      Common Stock subject to the Stock Option prior
      to
      the full vesting of the
      Stock
      Option and such shares shall
      be
      subject to certain restrictions as
      determined
      by the Committee and be treated as Restricted Stock.
      Any unvested shares
      of
      Common Stock so purchased may be subject to
      a
      repurchase option in favor of the Company or to any other restriction the
Committee
      determines to be appropriate.

    

    (h)
      Other
      Terms and Conditions. Stock
      Options may contain such other
      provisions, which shall not be inconsistent with any
      of
      the terms of the Plan, as the Committee shall deem appropriate.

    

    ARTICLE
      VII

    RESTRICTED
      STOCK

    

    7.1.
      Awards
      of Restricted Stock.
      The
      Committee shall determine the eligible Participants
      to whom, and the time or times at which, grants
      of
      Restricted Stock will be made,
      the
      number of shares to be awarded, the purchase price (if
      any)
      to be paid by the Participant
      (subject to Section 7.2),
      the
      time
      or times at which such Awards may be subject
      to forfeiture (if any), the vesting schedule (if any) and rights to acceleration
      thereof,
      and all other terms and conditions of the Awards. The
      Committee may condition the
      grant
      or vesting of Restricted Stock upon the attainment of
      specified performance targets
      or such other factors as the Committee may determine, in
      its
      sole discretion. Unless
      otherwise determined by the Committee, the Participant shall
      not
      be permitted to transfer
      shares of Restricted Stock awarded under the Plan during a period set by the
      Committee
      (if any) (the "Restriction Period") commencing with
      the
      date of such Award, as
      set
      forth in the applicable Award agreement.

    

    7.2.
      Awards
      and Certificates. A
      Participant selected to receive Restricted Stock
      shall not have any rights with respect to such Award, unless
      and until such Participant
      has delivered to the Company a fully executed copy
      of
      the Award agreement evidencing
      the Award and has otherwise complied with the applicable
      terms and conditions
      of such Award. Further, such Award shall be subject
      to the following conditions
      and the conditions specified in Article XVII:

     

    
      (a)
        Purchase
        Price. The
        purchase price of Restricted Stock shall be determined by the Committee,
        but
        shall not be less than as permitted
        under applicable
        law.

       

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    

    (b) Acceptance.
      Awards
      of
      Restricted Stock must be accepted within a
      period
      of 60 days (or such shorter period as the Committee may specify at grant)
after
      the
      grant date, by executing an Award agreement and by paying the purchase price
      (if
      any) the Committee has designated thereunder.

     

    (c) Legend.
      Each
      Participant
      receiving Restricted Stock shall be issued
      a
      stock certificate in respect of such shares of Restricted Stock, unless the
      Committee
      elects to use another system, such as book entries by the transfer
      agent,
      as
      evidencing ownership of Restricted Stock. Such
      certificate shall be registered
      in the name of such Participant, and shall bear an appropriate legend referring
      to the terms, conditions, and restrictions applicable to
      such
      Award, substantially
      in the following form:

    

    “The
      anticipation, alienation, attachment, sale,
      transfer, assignment, pledge, encumbrance or charge of the shares of stock
      represented hereby are subject to the terms and conditions (including
      forfeiture) of The WAAT Corp. (the “Company”)
      2006
      Stock Incentive Plan (the “Plan”), and an Award agreement entered
      into
      between
      the
      registered
      owner
      and
      the Company
      dated __________.
      Copies
      of
      such Plan and Award agreement are on file at the principal
      office of the Company.”

     

    (d) Custody.
      The
      Committee may require that any stock certificates evidencing such shares be
      held
      in custody by the Company until the restrictions thereon shall have lapsed,
      and
      that, as a condition to the grant of Restricted Stock, the Participant shall
      have delivered a duly signed stock power, endorsed in blank, relating to the
      Common Stock covered by such Award.

    

    (e) Rights
      as Shareholder. Except
      as
      provided in this sub-section and sub-section
      (d) above and as otherwise determined
      by the Committee, the Participant
      shall have, with respect to the shares of Restricted Stock, all
      of
      the rights
      of
      a holder of shares of Common Stock of the Company including, without
limitation,
      the right to receive any dividends, the right to vote such shares and,
      subject
      to and conditioned upon the full vesting of shares of Restricted Stock, the
      right to tender such shares. Notwithstanding the foregoing, the payment of
      dividends shall be deferred until, and conditioned upon, the expiration of
      the
      applicable Restriction Period, unless the Committee,
      in its sole discretion, specifies
      otherwise at the time of the grant of the Award.

     

    (f) Lapse
      of Restrictions. If
      and
      when the Restriction Period expires without
      a
      prior forfeiture of the Restricted Stock subject to such
      Restriction Period,
      the certificates for such shares shall be delivered to the Participant.
All
      legends
      shall be removed from said certificates at the time of delivery to
      the
Participant
      except as otherwise required by applicable law or the Shareholders
      Agreement. Notwithstanding
      the foregoing, actual certificates shall not be issued to the extent that book
      entry recordkeeping is used.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII

    OTHER
      STOCK-BASED AWARDS

     

    8.1.
      Awards
      of Other Stock-Based Awards.
      The
      Committee shall have authority
      to determine the persons to whom and the time or times at which Other
      Stock-Based Awards shall be made, the number of shares of Common Stock or dollar
      amount to be
      awarded pursuant to such Awards, and all other conditions of the Awards. The
      Committee
      may also provide for the grant of Common Stock or payment of the dollar amount
      under such Awards upon the completion of a specified performance period or
      such
      other criteria as determined by the Committee, in its sole
      discretion.

     

    8.2.
      Terms
      and Conditions.
      Other
      Stock-Based Awards made pursuant to this Article VIII shall be subject to the
      terms of the applicable Award agreement and following terms and conditions
      and
      the conditions specified in Article XVII:

    

    (a)
      Dividends.
      Unless
      otherwise determined by the Committee at the time
      of
      award, subject to the provisions of the Award agreement or grant letter and
      the
      Plan, the recipient of an Award under this Article VIII shall be entitled to
      receive,
      currently or on a deferred basis, dividends or dividend equivalents with
      respect
      to the number of shares of Common Stock covered by the Award, as
      determined
      at the time of the Award by the Committee, in its sole discretion.

    

    (b)
      Vesting.
      Any
      Award
      under this Article VIII and any Common Stock
      covered by any such Award shall vest or be forfeited to the extent
      so
provided
      in the Award agreement, as determined by the Committee, in its sole
      discretion.

    

    (c)
      Waiver
      of Limitation. The
      Committee may, in its sole discretion, waive
      in
      whole or in part any or all of the limitations imposed hereunder (if any)
with
      respect to all or any portion of an Award under this Article VIII.

    

    (d)
      Price.
      Common
      Stock or Other Stock-Based Awards issued on a bonus basis under this Article
      VIII may be issued for no cash consideration; Common
      Stock or Other Stock-Based Awards purchased pursuant to a purchase right
      awarded under this Article VIII shall be priced as
      determined by the Committee.
      Subject
      to Section 4.3, the purchase price of shares of Common Stock
      or
      Other Stock-Based Awards may be zero to the extent permitted by
      applicable
      law, and, to the extent not so permitted, such purchase price may not
be
      less
      than par value. The purchase of shares of Common Stock or Other
      Stock-Based
      Awards may be made on either an after-tax or pre-tax basis, as determined by
      the
      Committee; provided, however, that if the purchase is made on a pre-tax
basis,
      such purchase shall be made pursuant to a deferred compensation program
established
      by the Committee, which will be deemed a part of the Plan.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (e) Payment.
      The form
      of payment for the Other Stock-Based Awards shall
      be
      specified in the Award agreement.

     

    (f)

     

    ARTICLE
      IX

    NON-TRANSFERABILITY
      AND TERMINATION OF

    EMPLOYMENT/CONSULTANCY/DIRECTORSHIP

     

    9.1.
      Non-Transferability.

    

    (a)
      Except
      as
      otherwise specifically provided herein, no Stock Option shall
      be
      Transferable by the Participant otherwise than by will or by the laws of
descent
      and distribution. All
      Stock
      Options shall be exercisable, during the Participant’s
      lifetime, only by the Participant. Shares
      of
      Restricted Stock or Other Stock-Based Awards may not be Transferred prior to
      the
      date on which shares are issued,
      or if later, the date on which any applicable restriction, performance
or
      deferral
      period lapses. Any
      attempt to Transfer any such Award or share of Common Stock not in accordance
      with the provisions of Section 12.2
      shall be void
      and
      immediately cancelled, and no Award shall in any manner be liable for
or
      subject to the debts, contracts, liabilities, engagements or torts of any person
      who
      shall
      be entitled to such Award, nor shall it be subject to attachment or legal
      process for or against such person.

     

    (b)
      Notwithstanding the foregoing, the Committee may determine, in its
      sole
      discretion, at the time of grant or thereafter that a Non-Qualified Stock
      Option
      that is otherwise not Transferable pursuant to this Section 9.1 is
      Transferable
      to a Family Member in whole or in part and in such circumstances, and
      under
      such conditions, as specified by the Committee. A
      Non-Qualified Stock
      Option that is Transferred to a Family Member pursuant to the preceding sentence
      (i) may not be subsequently Transferred otherwise than by will or by the
laws
      of
      descent and distribution and (ii) remains subject to the terms of the Plan
      and
      the
      Stock Option agreement. Any shares of Common Stock acquired upon the
      exercise of a Stock Option by a permissible transferee of a Stock Option or
      a
permissible
      transferee pursuant to a Transfer after the exercise of the Stock Option
      shall be subject to the terms of the Plan and the Stock Option agreement,
including,
      without limitation, the provisions of Article XII hereof.

     

    9.2. Termination.
      The
      following rules apply with regard to the Termination of a
      Participant.

     

    (a) Rules
      Applicable to Stock Options. Unless
      otherwise determined by
      the
      Committee at grant or, if no rights of the Participant are reduced,
      thereafter:

     

    (i) Termination
      by Reason of Death, Disability or Retirement. If
      a
      Participant’s
      Termination is by reason of
      death,
      Disability or Retirement,
      all Stock Options that are held by such Participant that are vested
      and exercisable at the time of the Participant’s
      Termination may be exercised by the Participant (or, in the case of
      death,
      by the legal representative
      of the Participant’s
      estate) at any time within a period of one
      year
      from the date of such Termination, but in no event beyond the expiration of
      the
      stated term of such Stock Options; provided, however, that
      in
      the case of Retirement, if the Participant dies within such exercise
period,
      all unexercised Stock Options held by such
      Participant shall thereafter
      be exercisable, to the extent to that they were exercisable at the time of
      death, for a period of one year from the date of such death, but in no
      event
      beyond the expiration of the stated term of such Stock
      Options.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (ii) Involuntary
      Termination Without Cause. If
      a
      Participant’s
      Termination
      is by involuntary termination without
      Cause, all Stock Options
      that are held by such Participant that are vested and exercisable at
the
      time
      of the Participant’s
      Termination may be
      exercised by the Participant at any time within a period of 90 days from the
      date of such Termination, but in no event beyond the expiration of the stated
      term of such
      Stock Options.

    

    (iii) Voluntary
      Termination. If
      a
      Participant’s
      Termination is voluntary
      (other than a voluntary termination described
      in Section 9.2(a)(iv)(2)
      below),
      all Stock Options that are held by such Participant that
      are
      vested and exercisable at the time of the Participant’s
      Termination may be exercised by the Participant at any time within a period
      of
      30 days from
      the
      date of such Termination, but in no event beyond the expiration of
      the
      stated terms of such Stock Options.

    

    (iv) Termination
      for Cause. If
      a Participant’s
      Termination: (1) is
      for
      Cause or (2) except with respect to Participants whose awards are subject to
      Section 260.140.41 of Title 10
      of the
      California Code of Regulations,
      is a voluntary Termination (as provided in sub-section (iii) above)
      after the occurrence of an event that would be grounds for
      a
Termination
      for Cause, all Stock Options, whether vested or not vested, that
      are
      held by such Participant shall thereupon terminate and expire as of the
      date
      of such Termination.

    

    (v) Unvested
      Stock Options. Stock
      Options that are not vested as
      of the
      date of a Participant’s
      Termination for any reason shall terminate and
      expire as of the date of such Termination.

     

    (b)
      Rules
      Applicable to
      Restricted Stock and
      Other
      Stock-Based Awards.
      Unless
      otherwise determined by the Committee at grant or, if no rights of
      the
      Participant are reduced, thereafter, upon a Participant’s
      Termination for any reason:
      (i) during the relevant Restriction Period, all Restricted Stock still subject
      to
      restriction shall be forfeited; and (ii) any unvested Other Stock-Based Awards
      shall
      be
      forfeited.

     

    
      
        
        

      

      
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    ARTICLE
      X

     

    10.1.
      Benefits. Except
      as
      otherwise provided by the Committee in an Award agreement,
      in the event of a Change in Control of
      the
      Company after the Effective Date, the
      Committee may, but shall not be obligated to:

    

    (a) accelerate,
      vest or cause the restrictions to lapse with respect to, all or
      any
      portion of an Award; or

     

    (b)
      cancel
      Awards for fair value (as determined in good faith by the Committee)
      which, in the case of Options, may equal the excess, if any, of the value
      of
      the consideration to be paid in the Change in Control transaction to
      holders
      of the same number of shares of Common Stock subject to such Options
(or,
      if
      no consideration is paid in any such transaction, the Fair Market Value of
      the
      shares of Common Stock subject to such Options) over the aggregate exercise
      price
      of
      such Options; or

     

    (c)
      provide
      for the issuance of substitute Awards that will substantially preserve
      the otherwise applicable terms of any affected
      Awards previously granted
      hereunder as determined by the Committee in its sole discretion.

     

    10.2.
      Change
      in Control Defined. Unless
      otherwise determined by the Committee
      in the applicable Award agreement, a “Change in Control” shall be the
occurrence
      of any of the following after the Effective Date: (i) any acquisition, by merger
      or
      otherwise, of equity securities of the Company, from shareholders of the
Company,
      representing
      at least 75% of the outstanding voting securities of the Company, by
      any
unaffiliated
      third party; or (ii) any sale of all or substantially all of
      the
      assets of the Company
      to any unaffiliated third party.

     

    ARTICLE
      XI

    TERMINATION
      OR AMENDMENT OF PLAN

    

    Notwithstanding
      any other provision of the Plan, the Board or the Committee may at any time,
      and
      from
      time to time,
      amend, in whole or in part, any or all of the provisions of
      the
      Plan (including any amendment deemed necessary to ensure that the Company
      may
      comply with any regulatory requirement referred to in Article XIV or Section
      409A of
      the
      Code as described below), or suspend or terminate it entirely, retroactively
      or otherwise;
      provided, however, that if the Committee, in its sole discretion, determines
      that
      the
      rights of a Participant with respect to Awards granted prior to such amendment,
      suspension
      or termination, may be adversely impaired, the consent of such Participant
      shall
      be
      required; and provided further, without the approval of the shareholders
of
      the
Company
      entitled to vote in accordance with applicable law, no amendment may be made
      that
      would:

     

    (a) increase
      the aggregate number of shares of Common Stock that may
      be
      issued under the Plan (other than due to an adjustment under Section
      4.2);

     

    
      
        
        

      

      
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    (b) change
      the classification of individuals eligible to receive Awards under
      the
      Plan;

     

    (c) decrease
      the minimum exercise price of any Stock Option;

     

    (d) extend
      the maximum Stock Option period under Section 6.3; or

     

    (e)
      require shareholder approval in order for the Plan to continue to comply
      with Section 422 of the Code to the extent applicable to Incentive Stock
Options
      or the rules of any exchange or system on which the
      Company's securities
      are listed or traded at the request of the Company.

     

    The
      Committee may amend the terms of any Award
      theretofore granted, prospectively
      or retroactively, but,
      subject to Article IV above or as otherwise specifically
      provided herein, no such amendment or other action by the Committee shall
      adversely
      impair the rights of any holder without the holder's consent. Notwithstanding
      anything
      herein to the contrary, the Board or the Committee may amend the Plan or any
      Award
      granted hereunder at any time without a Participant’s
      consent to comply
      with Section
      409A of the Code or any other applicable law.

     

    ARTICLE
      XII

    COMPANY
      CALL RIGHTS; RIGHTS OF FIRST REFUSAL

     

    12.1.
      Company
      Call Rights.

     

    (a)
      In
      the
      event of a Participant’s
      Termination for
      Cause
      or a Participant’s
      voluntary Termination within 90 days after the occurrence
      of an event that would be grounds for a Termination for Cause, the Company
      may
      at any
      time
      repurchase (or may cause its designee to repurchase) from the Participant (or
      his or her transferee) any shares of Common Stock previously acquired
      by the Participant through the exercise of a Stock Option or pursuant to
Restricted
      Stock or Other Stock-Based Awards granted under the
      Plan
      at a repurchase
      price equal to the lesser of (A) the original purchase price or exercise
price
      (as
      applicable), if any or
      (B)
      the Fair Market Value of a share of Common Stock on the date of Termination
      or
      the date of repurchase, as selected by the Committee.

     

    (b)
      In
      the
      event of a Termination for any reason other than for Cause (including
      Termination
      due
      to
      Retirement, death, Disability,
      involuntary
      termination
      without Cause or resignation), the Company may at any time within the
      later
      of one year after (i) a Participant incurs a Termination or (ii) the date a
      Participant
      acquires shares of Common Stock upon the exercise of a Stock Option following
      his or her Termination for any reason other than for
      Cause: (A) repurchase
      (or may cause its designee to purchase) from the Participant
      the outstanding
      vested portion of the Option based on the difference between the
      exercise
      price of a share of Common Stock relating to such Stock Option and the
Fair
      Market Value of a share of Common Stock on the date of repurchase and (B) repurchase
      from the Participant any shares of Common Stock previously acquired by the
      Participant through the exercise of a Stock Option at a repurchase price equal
      to the Fair Market Value on the date of repurchase.

     

    
      
        
        

      

      
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    (c)
      In
      the
      event of a Termination for any reason other than for Cause (including
      Termination
      due
      to
      Retirement, death,
      Disability, involuntary
      termination
      without Cause or resignation), the Company may at any time within one
      year
      after a Participant incurs a Termination other than for Cause repurchase
(or
      may
      cause its designee to purchase) from the Participant any
      shares of Common Stock previously acquired by the Participant pursuant
to
      Restricted Stock
      or
      Other Stock-Based Awards under the Plan at a repurchase price equal to
Fair
      Market Value on the date of repurchase.

    

    (d)
      (i)
      If
      the Company elects to exercise call rights under this Section 12.1,
      it
      shall do so by delivering to the Participant a notice of such election,
      specifying the number of shares to be purchased and such closing date and time
      that, solely for purposes of sub-sections (b) and (c),
      is
      within
      the applicable one year
      period. Such closing shall take place at the Company's principal executive
      offices.

    

    (ii)
      At
      such
      closing, the Company will pay the Participant the repurchase
      price as specified in
      this
      Section 12.1 in
      cash,
      or by cancellation
      of indebtedness of the Participant to the Company.

    

    12.2.
      Transfer
      Limit. (a)
      No
      Participant shall, directly or indirectly, prior to the Registration Date or
      such other date determined by the Committee, Transfer any shares of Common
      Stock
      acquired through the exercise of a Stock Option or pursuant to Restricted
Stock
      or
      Other Stock-Based Award under the Plan prior to the Participant’s
      Termination and
      expiration of the time period provided in Sections 11.1(b) and (c) hereof (the
      “Transfer
      Restriction Period”). Notwithstanding the foregoing, the Participant shall have
the
      right
      to Transfer such shares of Common Stock to a “Permissible Transferee" who
takes
      the
      shares subject to the terms of the Plan and applicable Award agreement.
Permissible
      Transferees shall mean Family Members.

    

    (b)
      After
      the
      Transfer Restriction Period, no Participant shall Transfer any
      Common Stock acquired through the exercise of a Stock Option or pursuant
to
      Restricted Stock or Other Stock-Based Award to any Person other
      than a Permissible
      Transferee unless in each such instance the Participant (or his or her
estate
      or
      legal representative) shall have first offered
      to the Company the Common
      Stock proposed to be Transferred pursuant to a bona fide offer to a third
party.

    

    (c)
      Notice
      of Proposed Transfer.
      Prior
      to
      any proposed Transfer of the Common Stock acquired through the exercise of
      a
      Stock Option or pursuant to Restricted Stock or Other Stock-Based Award, the
      Participant shall give a written notice
      (the “Transfer Notice”) to the Company describing fully the
      proposed Transfer,
      including the number of shares of Common Stock, the name and address
of
      the
      proposed Transferee (the “Proposed Transferee”) and, if the Transfer
is
      voluntary,
      the proposed Transfer price, and containing such information necessary to show
      that the Participant has obtained a bona fide binding offer to Transfer the
      Common Stock for cash from a third party. The Participant shall provide a
separate
      Transfer Notice with regard to each Proposed Transferee. The
      Transfer Notice
      shall be signed by both the Participant and the Proposed Transferee and must
      constitute a binding and unconditional commitment of the Participant and the
      Proposed Transferee for the Transfer of the Common Stock to the Proposed
Transferee
      for cash subject only to the right of first refusal specified
      herein.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (d)
      Bona
      Fide
      Transfer.
      If
      the
      Company determines that the information
      provided by the Participant in the Transfer Notice is insufficient to establish
      the bona fade nature of a proposed voluntary Transfer, the
      Company shall
      give the Participant written notice of the Participant’s
      failure to comply with the
      procedure described herein, and the Participant shall have no right to Transfer
      the
      Common Stock without first complying with this procedure. The
      Participant shall
      not
      be permitted to Transfer the Common Stock if the proposed Transfer is
not
      bona
      fide.

    

    (e)
      Exercise
      of Right of First Refusal. If
      the
      Company determines the proposed
      Transfer to be a bona fide Transfer, the Company shall have the right to
      repurchase all or any part of the shares of Common Stock
      at
      the proposed Transfer
      price per share, by delivering to the Participant (or his or her estate
or
      legal
      representative) written notice of such exercise within 30 days after the date
      the
      Company has determined that the proposed Transfer is bona
      fide. The
      Company's
      exercise or failure to exercise the right of first refusal with respect to
      any
      proposed Transfer described in a Transfer Notice shall not affect the
Company's
      right to exercise the right of first refusal with respect to any proposed
Transfer
      described in any other Transfer Notice, whether
      or not such other Transfer
      Notice is issued by the Participant or issued by a person other than the
Participant
      with respect to a proposed Transfer to the same Proposed Transferee.
If
      the
      Company exercises the right of first refusal, the
      Company and the Participant
      shall thereupon consummate the sale of the Common Stock to the
      Company
      within five days after the date the Company has decided to exercise the right
      of
      first refusal described herein (unless a longer period is offered
      by the Proposed
      Transferee). For
      purposes of the foregoing, cancellation of
      any
indebtedness
      of the Participant to the Company shall be treated as payment to the Participant
      in cash to the extent of the unpaid principal and any accrued interest
      canceled.

    

    (f)
      Failure to Exercise Right of First Refusal. If the Company
      fails to exercise the right of first refusal with respect to any share of Common
      Stock within the period specified in sub-section (e) above, and the Company
      has
      not given notice to the Participant that the proposed Transfer is not a bona
      fide Transfer pursuant to sub-section (d) above, the Participant may conclude
      a
      Transfer to the Proposed Transferee of the Common Stock on the terms and
      conditions described in the Transfer Notice, provided such Transfer occurs
      not
      later than five days after the date the Company has determined not to exercise
      the right of first refusal described herein. The Company shall have the right
      to
      demand further assurances from the Participant and the Proposed Transferee
      (in a
      form satisfactory to the Company) that the Transfer of the Common Stock was
      actually carried out on the terms and conditions described in the Transfer
      Notice. No Common Stock shall be transferred on the books of the Company until
      the Company has received such assurances, if so demanded, and has approved
      the
      proposed Transfer as bona fide. Any proposed Transfer on terms and conditions
      different from those described in the Transfer Notice, as well as any subsequent
      proposed Transfer by the Participant (or his or her estate or legal
      representative), shall again be subject to the right of first refusal and shall
      require compliance by the Participant with the procedure described in this
      Section 12.2.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (g)
      Assignment of Right of First Refusal. The Company
      shall have the right to assign the right of first refusal at any time, whether
      or not there has been an attempted Transfer, to one or more persons as may
      be
      selected by the Company, from time to time.

    

    (h) Application
      to Transferees. This
      Section 12.2 shall apply to any Permissible
      Transferee in the same manner as it applies to a Participant.

    

    12.3.
      Alternative
      Call Rights, Rights of First Refusal and Other Rights. The
      Committee
      may provide in the applicable Award agreement alternative (or no) call rights
      and/or rights of first refusal and/or other rights at the time of grant (or,
      thereafter, if no rights
      of
      the Participant are reduced) as it may decide in its sole discretion (including
      as necessary
      to comply with the requirements specified in Article XVII). Notwithstanding
      anything
      herein to the contrary, if a Participant executes the Shareholders Agreement
      (or
      similar agreement) that provides call rights and/or rights of first refusal
      and/or drag-along and/or co-sale rights, the provisions in the Shareholders
      Agreement (or similar agreement) shall control to the extent they are
      inconsistent with or in addition to the provisions of this Article
      XII.

    

    12.4.
      Effect
      of Registration.
      Notwithstanding
      the foregoing, unless otherwise determined
      by the Committee, the Company shall cease to have rights pursuant to this
Article
      XII on and after the Registration Date.

    

    ARTICLE
      XIII

    UNFUNDED
      PLAN

    

    The
      Plan
      is intended to constitute an “unfounded” plan for incentive and deferred
compensation.
      With respect to any payments as to which a Participant has a fixed and
vested
      interest but which are not yet made to a Participant by the Company,
      nothing contained
      herein shall give any such Participant any rights that are greater than those
      of
      a
general
      unsecured creditor of the Company.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      XIV

    GENERAL
      PROVISIONS

     

    14.1.
      Legend.
      The
      Committee may require each person receiving shares pursuant
      to an Award to represent to and agree with the Company in writing that the
      Participant is acquiring the shares without a view to distribution thereof
      and
      such other securities
      law related representations as the Committee shall request. In
      addition to any legend
      required by the Plan, the certificates and/or book entry accounts for such
      shares may include any legend that the Committee deems appropriate to reflect
      any restrictions on
      Transfer.

    

    All
      certificates and book entry accounts for shares of Common Stock delivered
under
      the
      Plan shall be subject to such stop transfer orders and other restrictions
as
      the
Committee
      may deem advisable under the rules, regulations and other requirements
of
      the
      Securities and Exchange Commission, any stock exchange upon which the Common
      Stock
      is
      then listed or any national automated quotation system upon whose system the
      Common
      Stock is then quoted, any applicable Federal or state securities law,
      and
      any applicable
      corporate law, and the Committee may cause a legend or legends to be put on
      any
      such
      certificates to make appropriate reference to such restrictions.

     

    14.2.
      Other
      Plans.
      Nothing
      contained in the Plan shall prevent the Board from adopting other or additional
      compensation arrangements, subject to shareholder approval if such approval
      is
      required; and such arrangements may be either generally applicable or
applicable
      only in specific cases.

    

    14.3.
      No
      Right to Employment/Consultancy/Directorship. Neither
      the Plan nor the
      grant
      of any Award hereunder shall give any Participant or other employee,
Consultant
      or Non-Employee Director any right with respect to continuance of employment,
      consultancy or directorship by the Company or any Subsidiary, nor shall
there
      be
      a limitation in any way on the right of the Company or any Subsidiary by which
      an
      employee is employed or a Consultant or Non-Employee Director is retained to
      terminate his or her employment, consultancy or directorship at any
      time.

     

    14.4.
      Withholding
      of Taxes.
      The
      Company shall have the right to deduct from any payment to be made to a
      Participant, or to otherwise require, prior to the issuance or delivery of
      any
      shares of Common Stock or the payment of any cash hereunder, payment by the
      Participant of, any Federal, state or local taxes required by law to be
      withheld. Upon the vesting of Restricted Stock, or upon making an election
      under
      Section 83(b) of the Code, a Participant shall pay all required withholding
      to
      the Company.

    

    Any
      statutorily required withholding obligation with
      regard to any Eligible Employee
      may be satisfied, subject to the consent of the Committee, by
      reducing the number
      of
      shares of Common Stock otherwise deliverable or by delivering shares
      of
Common
      Stock already owned. Any
      fraction of a share of Common Stock required to satisfy
      such tax obligations shall be disregarded and the amount due shall be paid
      instead in
      cash
      by the Participant.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    14.5.
      Listing
      and Other Conditions.

     

    (a)
      Unless otherwise determined by the Committee, as long as the Common
      Stock is listed on a national securities exchange or system sponsored by a
      national securities association, the issue of any shares
      of
      Common Stock pursuant
      to an Award shall be conditioned upon such shares being listed on such
exchange
      or system. The Company shall have no obligation to issue such shares
unless
      and until such shares are so listed, and the right to exercise any Award with
      respect to such shares shall be suspended until such listing has been
      effected.

     

    (b)
      If at
      any
      time counsel to the Company shall be of the opinion that any
      sale
      or delivery of shares of Common Stock pursuant to an Award is or may
in
      the
      circumstances be unlawful or result in the imposition of excise taxes on the
      Company under the statutes, rules or regulations of any applicable jurisdiction,
      the
      Company shall have no obligation to make such sale or delivery, or to make
      any
      application or to effect or to maintain any qualification or registration under
      the
      Securities Act or otherwise with respect to shares of Common Stock
      or
Awards,
      and the right to exercise any Award may be suspended until, in
      the
opinion
      of said counsel, such sale or delivery shall be lawful and will not result
      in
the
      imposition of excise taxes on the Company.

    

    (c)
      Upon
      termination of any period
      of
      suspension under
      this Section
      14.5, an Award affected by such suspension that shall not
      then
      have expired
      or terminated shall be reinstated as to all shares available before such
      suspension
      and as to shares that would otherwise have become available during the period
      of
      such suspension, but no such suspension shall extend the term of any
      Award.

    

    (d)
      A
      Participant shall be required to supply the Company with any certificates,
      representations and information that
      the
      Company requests and otherwise
      cooperate with the Company in obtaining any
      listing, registration, qualification, exemption, consent or approval the Company
      deems necessary or appropriate.

     

    14.6.
      Shareholders
      Agreement and Other Requirements. Notwithstanding
      anything herein to the contrary, as a condition to the receipt of shares of
      Common Stock pursuant to an Award, to the extent required by the Committee,
      the
      Participant shall execute and deliver a shareholders agreement or such other
      documentation that shall set forth certain restrictions on transferability
      of
      the shares of Common Stock acquired upon exercise or purchase, a right of first
      refusal of the Company with respect to shares, and such
      other terms or restrictions as the Board or Committee shall from time to time
      establish.
      Such shareholders agreement or other documentation shall apply to the Common
      Stock acquired under the Plan and covered by such shareholders agreement or
      other
      documentation. The Company may require, as a condition of exercise, the
Participant
      to become a party to any other existing shareholders agreement or other
      agreement.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    14.7.
      Governing
      Law.
      The
      Plan
      shall be governed and construed in accordance with the laws of the State of
      Delaware (regardless of the law that might otherwise govern under applicable
      Delaware principles of conflict of laws).

     

    14.8.
      Construction. Wherever
      any words are used in the Plan in the masculine gender they shall be construed
      as though they were also used in the feminine gender in all cases where they
      would so apply, and wherever any words are used herein in the singular form
      they
      shall be construed as though they were also used in the plural form in all
      cases
      where they would so apply.

     

    14.9.
      Other
      Benefits.
      No
      Award
      shall be deemed compensation for purposes of computing benefits under any
      retirement plan of the Company or its Subsidiaries nor affect any benefits
      under
      any other benefit plan now or subsequently in effect under which the
      availability or amount of benefits is related to the level of
      compensation.

     

    14.10.
      Costs.
      The
      Company shall bear all expenses associated with administering the Plan,
      including expenses of issuing Common Stock pursuant to any Award granted
      hereunder.

    

    14.11.
      No
      Right to Same Benefits.
      The
      provisions of Awards need not be the same with respect to each Participant,
      and
      Awards granted to individual Participants need not
      be
      the same.

     

    14.12.
      Death/Disability.
      The
      Committee may in its discretion require the transferee of a Participant to
      supply it with written notice of the Participant’s
      death or Disability and to supply it with a copy of the will (in the case of
      the
      Participant’s
      death) or
      such
      other evidence as the Committee deems necessary to establish the validity of
      the
transfer
      of an Award. The Committee may also require that the agreement of the
transferee
      to be bound by all of the terms and conditions of the Plan.

     

    14
      .13.
Section
      16(b) of the Exchange Act. On
      and
      after the Registration Date, all elections and transactions under the Plan
      by
      persons subject to Section 16 of the Exchange Act involving shares of Common
      Stock are intended to comply with any applicable exemptive condition under
      Rule
      16b-3. The
      Committee may establish and adopt
      written administrative guidelines, designed to facilitate compliance with
      Section 16(b) of the Exchange Act, as it may deem necessary or proper for the
      administration and operation of the Plan and the transaction of business
      thereunder.

     

    14.14.
      Severability
      of Provisions.
      If
      any
      provision of the Plan shall be held invalid or unenforceable, such invalidity
      or
      unenforceability shall not affect any other provisions hereof, and the Plan
      shall be construed and enforced as if such provisions had not
      been
      included; provided, however, that if the Company's call rights and rights of
      first refusal
      set forth in Article XII shall be held invalid or unenforceable, the Awards
      granted under the Plan shall be cancelled and terminated.

     

    14.15.
      Headings
      and Captions. The
      headings and captions herein are provided for reference and convenience only,
      shall not be considered part of the Plan, and shall not be employed in the
      construction of the Plan.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    14.16.
      Securities
      Act Compliance. Except
      as
      the Company or Committee shall otherwise determine, the Plan is intended to
      comply with Section 4(2) or Rule 701 of
      the
Securities
      Act, and any provisions inconsistent with such Section or Rule of the Securities
      Act shall be inoperative and shall not affect the validity of the
      Plan.

     

    14
      .17.
Successors
      and Assigns.
      The
      Plan
      shall be binding on all successors and permitted
      assigns of a Participant, including, without limitation, the estate of such
      Participant
      and the executor, administrator or trustee of such estate.

    

    I4.18.
      Payment
      to Minors, Etc.
      Any
      benefit payable to or for the benefit of a minor, an incompetent person or
      other
      person incapable of receipt thereof shall be deemed
      paid when paid to such person's guardian or to the party providing or reasonably
      appearing
      to provide for the care of such person, and such payment shall fully discharge
      the Committee, the Board, the Company, its Subsidiaries and their employees,
      agents and representatives with respect thereto.

     

    14.19.
      Agreement.
      As
      a
      condition to the grant of an Award, if requested by the Company and the lead
      underwriter of any public offering of the Common Stock (the “Lead
      Underwriter”),
      a Participant shall irrevocably agree not to sell, contract to sell,
grant
      any
      option to purchase, transfer the economic risk of ownership in, make any short
      sale of, pledge or otherwise transfer or dispose of, any interest in any Common
      Stock or any
      securities convertible into, derivative of, or exchangeable or exercisable
      for,
      or any other
      rights to purchase or acquire Common Stock (except Common Stock included in
      such
      public offering or acquired on the public market after such offering) during
      such period of time following the effective date of a registration statement
      of
      the Company filed
      under the Securities Act that the Lead Underwriter shall specify (the “Lock-up
      Period”).
      The Participant shall further agree to sign such documents as may be requested
      by the Lead Underwriter to effect the foregoing and agree that the Company
      may
      impose stop-transfer
      instructions with respect to Common Stock acquired pursuant to an Award until
      the end of such Lock-up Period.

    

    14.20.
      No
      Rights as Shareholder.
      Except
      as
      provided in Article VII with respect to Restricted Stock or Article VIII with
      respect to Other Stock-Based Awards, subject to the provisions of the Award
      agreement, no Participant or Permitted Transferee shall have any rights as
      a
      shareholder of the Company with respect to any Award until such individual
      becomes the holder of record of the shares of Common Stock underlying the
Award.

    

    14.21.
      Section
      409A of the Code. The
      Plan
      is intended to comply with the applicable
      requirements of Section 409A of the Code and shall be limited, construed and
      interpreted
      in accordance with such intent. To
      the
      extent that any Award is subject to Section 409A of the Code, it shall be paid
      in a manner that will comply with Section 409A of the Code, including proposed,
      temporary or final regulations or any other guidance issued by the Secretary
      of
      the Treasury and the Internal Revenue Service with respect thereto.
      Notwithstanding anything herein to the contrary, any provision in the Plan
      that
      is inconsistent with Section 409A of the Code shall be deemed to be amended
      to
comply
      with Section 409A of the Code and to the extent such provision cannot
      be
amended
      to comply therewith, such provision shall be null and void.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    

    14.22.
      Consideration.
      Awards
      may be awarded in consideration for past services actually
      rendered to the Company or a Subsidiary for its benefit; provided, however,
      that
in
      the
      case of an Award to be made to a new Eligible Employee, Non-Employee Director,
      or
      Consultant who has not performed prior services for the Company, the Company
      will require
      payment of the par value of the Common Stock by cash or check in order to ensure
      proper issuance of the shares in compliance with Delaware General Corporation
      Law.

    

    ARTICLE
      XV

    EFFECTIVE
      DATE OF PLAN

    

    The
      Plan
      shall become effective upon adoption by the Board or such later date as
provided
      in the adopting resolution, subject
      to the approval of the Plan by the shareholders
      of the Company within 12 months before or after adoption of the Plan by the
      Board in accordance with the laws of the State of Delaware.

     

    ARTICLE
      XVI

    TERM
      OF
      PLAN

    

    No
      Award
      shall be granted pursuant to the Plan on or after the tenth anniversary
of
      the
      earlier of the date the Plan is adopted or the date of shareholder approval,
      but
      Awards
      granted prior to such tenth anniversary may, and the Committee's authority
      to
      administer
      the terms of such Awards shall, extend beyond that date.

     

    ARTICLE
      XVII

    PROVISIONS
      APPLICABLE TO AWARDS

    GRANTED
      TO RESIDENTS OF CALIFORNIA

     

    Notwithstanding
      the foregoing, any Award granted under the Plan to a California resident shall
      be subject to the provisions of this Article XVII (in addition to other
      applicable provisions of the Plan that are not inconsistent with this Article
      XVII) and, notwithstanding any provision of the Plan to the contrary, solely
      to
      the extent necessary to comply with Title 10 of the California Code of
      Regulations at the time an Award is granted, the following shall apply to each
      such Award:

    

    17.1
      At
      no
      time shall the total number of shares issuable upon exercise or vesting
      of all outstanding Awards provided for under any stock bonus or similar plan
      of
      the Company exceed thirty percent (30%) of all outstanding shares of the
      Company, including convertible preferred shares or convertible senior common
      shares on an as-converted basis, based on the shares of the Company which are
      outstanding at the time the calculation is made.

    

    17.2.
      Any
      Stock
      Option granted under the Plan shall be exercisable according to the terms hereof
      at such times and under such conditions as determined by the Committee
and
      set
      forth in the Stock Option
      agreement. Except in
      the
case
      of
      Stock Options granted to
      officers, directors and consultants, Stock Options shall become exercisable
      at a
      rate of no less than
      20%
      per year over five
      years
      from the date the Stock Options are granted.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    17.3.
      Any
      repurchase
      option in favor of the Company that is applicable to an Award to an Eligible
      Employee who is not an officer, director or consultant shall be subject to
      the
      following:

     

    (a)
      The
      repurchase option gives the Company the right to repurchase the
      shares of Stock
      upon Termination at not less than the Fair Market Value of the shares of Common
      Stock to be purchased on the date of Termination and
      (x)
      the right to repurchase is exercised for cash or cancellation of purchase money
      indebtedness for the shares of Common Stock within ninety (90) days of
      Termination (or in the case of shares of Common Stock issued upon exercise
      of
      Awards after such date of Termination, within ninety (90) days after the date
      of
the
      exercise) or such longer period as may be agreed to by the Company and the
      Participant
      and (y) the right shall terminates on and after the Listing Date.

     

    (b)
      The
      repurchase option gives the Company the right to repurchase the shares of Common
      Stock upon Termination at the original purchase price, if and (x) the right
      to
      repurchase at the original purchase price lapses at the rate of at least
      twenty percent (20%) of such shares of Common Stock per year over five (5)
      years
      from the date that the Award is granted (without respect to the date
the
      Award
was
      exercised or became exercisable) and (y) the right to repurchase is exercised
      for cash or cancellation of purchase money indebtedness for the shares
of
      Common
      Stock within ninety (90) days of Termination (or in the case of shares
of
      Common
      Stock issued upon exercise of Options after such date of termination,
within
      ninety (90) days after the date of the exercise) or such longer period
as
      may
      be
      agreed to by the Company and the Participant in compliance with applicable
      law.

     

    17.4.
      Prior
      the
      Date,
      Listing a
      Ten
      Percent Stockholder shall not be granted a Non-Qualified
      Stock Option
      unless
      the exercise price of such Option is at least (i) one hundred ten percent (110%)
      of the Fair
      Market Value of the Common Stock on the date of
      grant
      or (ii) such lower
      percentage of the Fair Market Value of the Common Stock at the
      date
      of grant as is permitted by Section 260.140.41 of Title 10 of the California
      Code of
      Regulations at the time of the grant of the Option. Prior to the Listing Date,
      a
      Ten Percent
      Stockholder shall not be granted an award of Restricted Stock unless the
      purchase price of the Restricted Stock is at least (i) one hundred percent
      (100%) of the Fair Market Value of the Common Stock at the date of
      grant or (ii) such lower percentage of
      the
      Fair Market Value of the Common Stock at the date of grant as is permitted
      by
Section
      260.140.41 of Title 10 of the California Code of Regulations at the time of
      the
grant
      of
      the Option.

     

    17.5.
      Prior
      to
      the Listing Date, the Fair Market Value of the Common Stock subject
      to an Award shall be determined in a manner consistent with Section 260.140.50
      of Title 10 of the California Code of Regulations.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    17.6.
      In
      addition to the restrictions set forth in Section 9.1, an Award shall be
      Transferable solely to the extent permitted by Section 260.140.41(d) of Title
      10
      of the California Code of Regulations.

     

    17.7.
      Prior
      to
      the Listing Date, to the extent required by Section 260.140.46 of Title 10
      of
      the California Code of Regulations, the Company shall deliver financial
      statements to Participants at least annually. This sub-section shall not apply
      to key employees
      whose duties in connection with the Company assure them access to equivalent
      information.

     

    17.8.
      Except as the Company or the Committee shall otherwise determine, the
Plan
      is
      intended to comply with Section 25.102(o) of the California Corporations Code,
      and any provisions inconsistent with such Section of the California Corporations
      Code shall be inoperative and shall not affect the validity of the
      Plan

     

    
      
        
        

      

      
        30

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