Document:

Ex-10.1 Sublease Agreement

 

EXHIBIT 10.1

AT&T CORP.

a NEW YORK corporation

OFFICE SUBLEASE AGREEMENT

PAVILION BUILDING

3405 West Dr. Martin Luther King Jr. Blvd. Tampa, Florida 33607

 

 

Comprehensive Behavior Care, Inc.

OFFICE SUBLEASE AGREEMENT

This office lease agreement (the “Sublease”) is entered into by AT&T Corp., a New York

corporation (“Sublandlord”), and Comprehensive Behavior Care, Inc., a Nevada corporation

(“Subtenant”).

ARTICLE I — SUBLEASED PREMISES, RENT & TERM

     1.1 Subleased Premises. By Office Lease Agreement dated April 9, 2001 (the “Prime Lease”),
Highwoods/Florida Holdings, LP. (hereinafter called “Prime Landlord”) now leases to Sublandlord
floors one through five, with a rentable floor area of approximately 144,166 square feet (the
“Premises”), in the office building located at 3405 West Dr. Martin Luther King Jr. Blvd., Tampa,
Florida 33607 (the “Building”). The Building, known as the “Pavilion Building”, is located on the
Land (herein so called) within Tampa Bay Park (the “Park”) described in Exhibit “A” attached to the
Prime Lease. Sublandlord does hereby lease to Subtenant, and Subtenant does hereby lease from
Sublandlord, for the term and upon the conditions hereinafter provided, the Subleased Premises
(herein so called) with a rentable floor area of approximately 16,614 square feet located on the
west side of the first floor of the Building, depicted in the floor plan diagram that is attached
to this Sublease as Sublease Exhibit A.

     1.2 Appurtenances. Sublandlord assigns to the Subtenant, as appurtenances to the Sublease
during the Sublease Term (but only for as long as this Sublease is in effect and has not been
terminated), the following rights of Subtenant under Section 1.2 of the Prime Lease: (a) the right
to use, in accordance with the Parking Agreement attached to the Prime Lease, eighty-three (83)
unassigned parking spaces in the Parking Area (herein so called) reflected on the Site Plan
attached to the Prime Lease as Exhibit B, and (b) the nonexclusive use of the Common Areas (as
defined in the Prime Lease and also including any entrances, restrooms, lobbies, hallways, utility
risers, and other areas and facilities that would customarily or otherwise have constituted Common
Areas appurtenant to the Subleased Premises, but for the fact that exclusive possession of the
Premises has been demised to Sublandlord under the Prime Lease). Sublandlord shall provide, at
Sublandlord’ s own cost and expense, an initial supply to Subtenant of eighty-three (83) parking
stickers, access cards or other devices supplied by Prime Landlord to obtain access to such parking
spaces. Subtenant shall pay (to Sublandlord as Additional Sublease Rent, or directly to the Prime
Landlord if so directed by Sublandlord) the cost of any replacement of the initial supply of
eighty-three parking stickers, access cards or other devices, at the rate of $10.00 per device.

     1.3 (a) Term. The term of this Sublease (“Sublease Term”) shall commence on the date on which
Prime Landlord notifies Sublandlord in writing of Prime Landlord’ s consent to this Sublease in
accordance with Section 4.4 of the Prime Lease (“Sublease Term Commencement Date”), which notice
from Sublandlord shall include a copy of Prime Landlord’s signed consent and shall be delivered to
Subtenant within two (2) business days after Sublandlord’s receipt of the same. The Sublease Term
shall end at 11:59pm on December 30 2008 (the “Sublease Term Expiration Date”), unless sooner
terminated as herein provided subject to the following: The Sublease Term shall be

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extended for one additional day and shall expire at midnight on December 31, 2008, if all of
the following conditions are satisfied: (i) Subtenant and Prime Landlord enter into a lease or
other agreement pursuant to which Prime Landlord agrees that Subtenant shall have possession of the
Subleased Premises immediately upon expiration of the term of the Prime Lease, and (ii) Prime
Landlord confirms the existence of such agreement in a written notice to Sublandlord, and (iii)
Prime Landlord gives Sublandlord written notice that Sublandlord shall not be obligated to deliver
possession of the Subleased Premises to Prime Landlord upon expiration of the term of the Prime
Lease provided that Subtenant is then in possession of the Subleased Premises, and (iv) Prime
Landlord gives Sublandlord written notice that Prime Landlord shall accept the Subleased Premises
in its condition “as is” upon expiration of the term of the Prime Lease and that Sublandlord will
be released and discharged from any and all obligations under the Prime Lease to repair or restore
the Subleased Premises or to remove any alterations, improvements, furniture, equipment or other
property from the Subleased Premises upon expiration of the term of the Prime Lease. In the event
that Sublandlord should elect to renew the term of the Prime Lease pursuant to Section 1.3(b) of
the Prime Lease, then Sublandlord shall notify Subtenant in writing of such election within five
(5) business days of delivering the written notice to Prime Landlord required thereunder, in which
case Subtenant shall have the right and option to extend the term of this Sublease for a term
coterminus with the extended term of the Prime Lease, exercisable by written notice to Sublandlord
at least ninety (90) days prior to the expiration of the term of the Sublease. The Basic Sublease
Rent payable by Subtenant for any such extended term shall be equal, on a per square foot basis, to
the basic Rent payable during such term by Sublandlord, as tenant under the Prime Lease.

     (b) Immediately upon the Sublease Term Commencement Date, but not prior to the Sublease Term
Commencement Date, Sublandlord shall deliver exclusive possession of the Subleased Premises to
Subtenant and Subtenant shall have the right to enter upon the Subleased Premises to prepare the
Subleased Premises for occupancy by Subtenant. Any other provision of this Sublease
notwithstanding, Subtenant acknowledges and agrees that it has fully inspected the Subleased
Premises and accepts the Subleased Premises same in its current condition as is, subject to all
faults, defects and conditions, latent and apparent, whether known or unknown to either party or
both parties. Without limiting the preceding sentence, Subtenant expressly acknowledges that the
Subtenant has been informed that the fire sprinkler system in the Building (except for the portion
of the system at the curtain wall of the atrium) is not in operating condition. Sublandlord shall
not be obligated to make any improvements of any nature whatsoever to the Subleased premises during
the Sublease Term. Subtenant shall not be financially or operationally responsible for any
improvements related to the fire sprinkler system.

     (c) Sublandlord represents and warrants that (i) a true and complete copy of the Prime Lease
(with certain financial provisions deleted for reasons of confidentiality) attached to this
Sublease as Sublease Exhibit B, (ii) the Sublandlord has received no notice from Prime Landlord of
a default by Sublandlord as tenant under the Prime Lease, (iii) Sublandlord has no knowledge of any
uncured defaults on Sublandlord’s part under the lease or of any event having occurred that, upon
the passage of time or other event, could, or would constitute a default or permit the termination
of the Prime Lease, and (iv) the Prime Lease has not been modified.

     (d) Except for the obligation of the Sublandlord to pay the Rent to Prime Landlord under
Section 1.5 of the Prime Lease and the Additional Rent to the Prime Landlord under Section

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1.6 of the Prime Lease, all of the obligations of the Sublandlord in the Sublandlord’s
capacity as tenant under the Prime Lease are incorporated into this Sublease as obligations of the
Subtenant under this Sublease and are binding on the Subtenant to the same extent as if the
Subtenant were named as the tenant, and as if the Sub landlord were named as the landlord, under
the Prime Lease. All of the releases and waivers by the Sublandlord, and all of the restrictions on
the Sublandlord, in the Sublandlord’s capacity as tenant under the Prime Lease are incorporated
into this Sublease as releases and waivers by the Subtenant, and restrictions on the Subtenant,
under this Sublease and are binding on the Subtenant to the same extent as if the Subtenant were
named as the tenant, and as if the Sublandlord were named as the landlord, under the Prime Lease,
For purposes of this incorporation from the Prime Lease of terms and conditions defining certain
obligations of, releases and waivers by, and restrictions on the Subtenant under this Sublease,
references in the Prime Lease to the “Term” mean the Sublease Term, references to the “Premises”
mean the Subleased Premises, and references to the “Proportionate Share” mean 11.52 percent.

     (e) The Subtenant will not do anything, or fail to perform any obligation of the Subtenant
(including all obligations of the Sublandlord as the tenant under the Prime Lease that have been
incorporated into this Sublease and assumed by the Subtenant as the Subtenant’s obligations under
this Sublease), that would constitute a default by the Sub landlord in the Sublandlord’s capacity
as the tenant under the Prime Lease. The Subtenant will defend, indemnify and hold the Sublandlord
harmless from and against all suits, actions, claims counterclaims, costs, expenses, damages and
liability which arise out of or result from any breach of the Subtenant’s covenant stated in this
Section 1.3(e) of this Sublease.

     (f) The Sublandlord will not do anything, or fail to perform any obligation of the Sublandlord
under the Prime Lease that has not been assumed by the Subtenant as an obligation of the Subtenant
under this Sublease, and that would constitute a default by the Sublandlord in the Sublandlord’s
capacity as the tenant under the Prime Lease. The Sublandlord will not engage in any voluntary
action or inaction that would cause a termination of the Prime Lease (or Sublandlord’s or
Subtenant’s possessory rights thereunder), not voluntarily agree to terminate the Prime Lease or
modify the Prime Lease in a manner that adversely affects the Subtenant’s subleasehold interest
granted under this Sublease. The Sublandlord will defend, indemnify and hold the Subtenant harmless
from and against all suits, actions, claims counterclaims, costs, expenses, direct damages and
liability which arise out of or result from any breach of the Sublandlord’s covenant stated in this
Paragraph 1.3(f) of this Sublease or from Sublandlord’s default under the Prime Lease.

     (g) The Sublandlord assigns to the Subtenant, as an appurtenance to Subtenant’s interest in
the Subleased Premises during the term of this Sublease (but only for as long as there is no
default existing and continuing beyond any notice and cure period under this Sublease by the
Subtenant), the beneficial use and enjoyment of all services that the Prime Landlord may provide to
the Subleased Premises from time to time pursuant to the Prime Lease. If Sublandlord elects to
contract for or otherwise provide to the Premises any utility or other service that Prime Landlord
would otherwise be required to provide to the Premises and the Subleased Premises under the Prime
Lease, then to the extent that Prime Landlord does not provide such utility or other services to
the Subleased Premises by reason of such election by Sublandlord, then Sublandlord shall cause such
services to be provided to the Subleased Premises. This Sublease does not grant or assign to the
Subtenant, or give to the Subtenant any right to exercise, or any interest in, the Sublandlord’s
right

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to install, maintain and repair a security card system in the elevators of the Building under
Section 2.2 (a) of the Prime Lease, the Sublandlord’s right to designate areas in the Premises as
secure areas under Section 2.3 of the Prime Lease, the Sublandlord’s rights under Section 2.4 of
the Prime Lease, the Sublandlord’s rights under Section 2.11 of the Prime Lease, or any of the
other following rights, options, or entitlements that the Sublandlord has or may have under the
Prime Lease or under any other agreement that is now in effect or that may come into effect at any
time in the future: (i) Any option, right or entitlement to renew, extend, or terminate the Term;
and (ii) any option, right or entitlement to expand, relocate, reduce or modify all or any part of
the Premises; and (iii) any option, right of first refusal, or right of first offer with respect to
the purchase or lease of any interest in the real estate of which the Premises are a part or any
other real estate; and (iv) any option, right or entitlement to receive payment of, or receive any
interest in or participate in, any increase in the equity value of the real estate of which the
Premises are a part or any other real estate; and (v) any right, option or entitlement to enter
onto, or use for any purpose, the roof of the Building.

     (h) All of the rights, reservations, privileges, and remedies granted to the Prime Landlord,
held by the Prime Landlord, reserved to the Prime Landlord, or otherwise that benefit the Prime
Landlord under the Prime Lease, are incorporated into this Sublease as rights reservation,
privileges, and remedies granted to the Sublandlord, held by the Sublandlord reserved to the
Sublandlord or otherwise that benefit the Sublandlord under this under this Sublease, and are
binding on the Subtenant to the same extent as if the Subtenant were named as the tenant, and as if
the Sublandlord were named as the landlord, under the Prime Lease. For purposes of this
incorporation from the Prime Lease of terms and conditions defining certain rights, reservations,
privileges, and remedies granted of the Sublandlord, under this Sublease references in the Prime
Lease to the “Term” mean the Sublease Term, references to the “Premises” mean the Subleased
Premises, and references to the “Proportionate Share” mean 11.52 percent.

     (i) This Sublease creates no obligation on the part of the Sublandlord to perform any of the
covenants or obligations of the Prime Landlord under the Prime Lease that affect the Premises. This
Sublease creates no obligation whatsoever on the part of the Sublandlord to provide any utilities
or services to the Premises, or to alter, maintain, repair, or restore the Premises or any other
part of the Building.

     (j) If the Prime Landlord breaches any of its obligations under the Prime Lease that affect
the Premises, then the Sublandlord will take such action as may be permitted by the Prime Lease and
applicable law and that is reasonably requested by the Subtenant to enforce the obligations of the
Prime Landlord under the Prime Lease that affect the Premises; provided however, that (i) the
Subtenant will pay in advance to the Sublandlord, within thirty days after demand from the
Sublandlord, all costs and expenses that the Sublandlord reasonably estimates that the Sublandlord
will incur to enforce the Prime Landlord’s obligations, including attorneys fees and litigation
expenses, and (ii) thereafter the Subtenant will pay, within thirty days after demand from the
Sublandlord from time to time, all reasonable costs and expenses that are actually incurred by the
Sublandlord to enforce the Prime Landlord’s obligations, including attorneys’ fees and litigation
expenses, in excess of such estimated amount. If the Sublandlord is reimbursed by Prime Landlord
for any costs or expenses that are incurred by the Sublandlord to enforce the Prime Landlord’s
obligations, then within forty-five days after the Sublandlord’s receipt of this reimbursement from
the Prime Landlord, the Sublandlord will make a corresponding reimbursement to the Subtenant to

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the extent those costs or expenses had been paid by the Subtenant to the Sublandlord. The
obligation of the Sublandlord under this Paragraph 1(j) of this Sublease to take action to enforce
the Prime Landlord’s obligations under the Prime Lease that affect the Subleased Premises is
expressly subject to the Subtenant giving to the Sublandlord a timely written notice that describes
in detail the nature of the breach of the Prime Landlord’ s obligation under the Prime Lease that
affects the Subleased Premises and also describes in detail all actions that the Sublandlord is
requested to take, and the specific remedies that the Sublandlord is requested to seek, in order to
enforce the Prime Landlord’s obligations under the Prime Lease that affect the Subleased Premises.
This Sublease does not create a covenant or warranty by the Sublandlord that any action that may be
undertaken by the Sublandlord to enforce the obligations of the Prime Landlord that affect the
Subleased Premises will be successful. Provided that the Sublandlord acts reasonably to enforce the
obligations of the Prime Landlord under the Prime Lease that affect the Subleased Premises after a
request is made by the Subtenant, and the costs and expenses are paid in full by the Subtenant, in
accordance with this Paragraph 1(j) of this Sublease, the Sublandlord will not be liable, and the
obligations of the Subtenant under this Sublease will not be affected, if the Sublandlord does not
obtain the remedy requested by the Subtenant with respect to any obligation of the Prime Landlord
that affects the Premises. The Subtenant will defend, indemnify and hold the Sublandlord harmless
from and against all suits, actions, claims, counterclaims, costs, expenses damages and liability
that arise out of or result from any action that may be undertaken by the Sub landlord to enforce
the obligations of the Prime Landlord in accordance with a request made by the Subtenant pursuant
to this Paragraph 1.3(j) of this Sublease, provided that the foregoing obligation to defend,
indemnify, and hold harmless, shall in no case extend to suits, actions, claims, counterclaims,
costs, expenses, damages, and liabilities of Sublandlord that exist or which could properly be
asserted against Sublandlord independent of a request made by Subtenant pursuant to this Paragraph
1.3(j).

     (k) Unless otherwise expressly stated in this Sublease, if the consent of the Prime Landlord
is required under the Prime Lease with respect to any matter relating to the Premises or this
Sublease, then the Subtenant will be required first to obtain the consent or approval of
Sublandlord with respect to such matter (which consent shall be subject to the same standard of
reasonableness as applies to the Prime Landlord’s consent under the Prime Lease except as otherwise
expressly stated in this Sublease) and, if the Sublandlord grants consent then the Sublandlord will
forward a request for consent to the Prime Landlord. Any other provision of this Sublease
notwithstanding, the Sublandlord will have no liability to the Subtenant for any failure or refusal
of the Prime Landlord to give its consent.

     (l) It is a condition precedent to the effectiveness of this Sublease that, within thirty (30)
days after the date on which this Sublease is signed by the Sublandlord and Subtenant the Prime
Landlord give its written consent to this Sublease and Subtenant’s proposed Sublease Improvements
as provided in Section 2.7 below. The Sublandlord will have no liability for any failure or refusal
by the Prime Landlord to consent to this Sublease. If Sublandlord should fail to timely deliver
Prime Landlord’s signed consent and possession of the Subleased Premises to Subtenant by the date
aforesaid (time being of the essence), then Subtenant shall thereafter have the right and option,
exercisable upon written notice to Sublandlord, to terminate this Sublease in which case this
Sublease shall be deemed void ab initio, and nether party shall have any further rights or
obligations hereunder.

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     (m) Subject to the conditions stated in this Section l(m), Sublandlord shall pay $99,684.00
(the “Allowance”) towards the cost of completing such improvements and alterations to the Subleased
Premises as Subtenant may deem necessary for Subtenant’s initial use and occupancy of the Subleased
Premises for Subtenant’ s business operations (the “Subleasehold Improvements”). The cost of all
Subleasehold Improvements in excess of the Allowance shall be paid by Subtenant at Subtenant’s sole
cost and expense of Subtenant. The Allowance may be used by Subtenant to pay the cost of fixtures
and other permanent improvements to the Subleased Premises), removable furniture and equipment,
permit fees, architect’s and engineer fees, space planning costs, and moving costs, and other costs
associated with Subtenant’s relocation to the Subleased Premises (specifically including any
increases in Subtenant’s insurance costs resulting from Subtenant’s compliance with the insurance
requirements set forth in Section 3.1 below). Subtenant shall submit all written requests for
disbursement of the Allowance not later than one year after the Sublease Term Commencement Date.
Sublandlord shall reimburse Subtenant for the costs of the Leasehold Improvements within sixty (60)
days after Sublandlord’s receipt of Subtenant’s written request for disbursement of the Allowance
and shall debit the Allowance therefor; provided that such written request is accompanied by
reasonable supporting documentation, including, without limitation: (i) lien waivers from all
contractors and subcontractors, materialmen and other persons who shall have rendered services or
furnished materials in connection with the Subleasehold Improvements, (ii) paid receipts or such
other invoices showing that the sum then requested was paid by Subtenant to contractors,
subcontractors, materialmen and other persons who have rendered services or furnished materials in
connection with the Subleasehold Improvements; and (iii) a complete description of such services
and materials and the amounts paid to each of such persons in respect thereof. Sublandlord shall
not be obligated to disburse the Allowance with respect to any written request for disbursement of
the Allowance unless such request (including all of the supporting documentation described above)
is received by Sublandlord within one year after the Sublease Term Commencement Date. Subtenant
shall be deemed to have irrevocably waived its right to all or any portion of the Allowance for
which a good faith and reasonably complete request for disbursement is not received by Sublandlord
within one year after the Sublease Term Commencement Date. Sublandlord shall act promptly and in
good faith in responding to any required improvement plan approval requests by Subtenant.

     (n) Effective on the Sublease Term Commencement Date all of the Sub landlord’s right, title
and interest in the items of furniture that are owned by Sublandlord and that are presently located
in the Premises (“Furniture”) will be deemed to have been conveyed to the Subtenant. The Subtenant
shall, at Subtenant’s sole cost and expense, remove the Furniture from the Premises prior to the
expiration of the Sublease Term. The Subtenant shall bear the risk of loss of the Furniture
immediately upon execution of this Sublease by the Subtenant and the Sublandlord. Any other
provision of this Sublease notwithstanding, if the Furniture is lost damaged or destroyed by theft,
fire or other casualty prior to the Sublease Term Commencement Date, the Sublandlord shall not have
any obligation to repair or replace any of the Furniture. The Subtenant expressly accepts the risk
of loss of use, from theft, fire or other casualty, of the Furniture. The Furniture is used or
surplus material and is accepted by the Subtenant in its present condition as of the date of this
Sublease, AS IS, WHERE IS, with all faults, latent and patent, subject to reasonable wear and tear
and damage from fire or other casualty from the date of this Sublease until the Sublease Term
Commencement Date. The Sublandlord disclaims all warranties, express or implied, with regard to the
Furniture. The Sublandlord specifically disclaims any warranty of merchantability or fitness for

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a particular purpose. The Subtenant acknowledges that the Subtenant has made a full and
complete inspection of the Furniture, or has had a reasonable opportunity to inspect the Furniture,
and the Subtenant accepts the Furniture in its present condition as of the date of this Sublease.
Subtenant will indemnify, defend and hold Sublandlord harmless from and against any and all
demands, claims, suits, causes of action damages, and liability and costs (including legal fees and
litigation expenses) arising from any injury to or death of any person (including all employees,
agents, contractors and other invitees of Subtenant), or damage to any property, caused in whole or
in part by, or arising in whole or in part from, the Furniture or the Subtenant’s use of the
Furniture during the Sublease Term.

     1.4 Surrender and Holding Over. At the end of the Sublease Term, Subtenant shall peaceably
surrender the Subleased Premises to Sublandlord in good order and condition, excepting ordinary
wear and tear and damage (whether by casualty or by any other cause) that the Prime Lease does not
require Sublandlord to repair. If Subtenant remains in possession of the Subleased Premises after
the Sublease Term Expiration Date (or earlier cancellation or termination of this Sublease in
accordance with its terms), without limiting any other remedy that is available to Sublandlord
under this Sublease or at law or equity, Subtenant shall pay Sublandlord an amount equal to all
Rent that Sublandlord becomes obligated to pay Prime Landlord pursuant to the Prime Lease by reason
of such holding over by Subtenant.

     1.5 Sublease Rent. “Sublease Rent Commencement Date” means September 1, 2006. Beginning on the
Sublease Rent Commencement Date, Subtenant shall pay Sublandlord, without notice or demand, as the
“Basic Sublease Rent” (herein so called), an amount each month according to the following schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Annual	 	 	 	 
	 	 	Rentable	 	rate of	 	 	 	 
	 	 	floor area	 	Sublease	 	 	 	 
	 	 	of the	 	Basic Rent	 	Monthly	 	Total amount of
	 	 	Subleased	 	per square	 	installment	 	Sublease Basic
	 	 	Premises	 	foot of	 	of Basic	 	Rent for this
	 	 	(in square	 	rentable	 	Sublease	 	portion of the
	Portion of the Sublease Term	 	feet)	 	floor area	 	Rent	 	Sublease Term
	Sublease Rent
Commencement
Date through
August 31,
2007
	 	 	16,614	 	 	$	14.75	 	 	$	20,421.38	 	 	$	245,056.56	 
	09/01/07 –
08/31/08
	 	 	16,614	 	 	$	15.25	 	 	$	21,113.63	 	 	$	253,363.56	 
	09/01/08 –
12/30/08
	 	 	16,614	 	 	$	15.75	 	 	$	21,805.88	 	 	$	87,223.52	 

The monthly installments of Basic Sublease Rent (together with all Florida sales tax or rental tax
due on any payments made under this Sublease) with respect to the portion of the Sublease term

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from the Sublease Rent Commencement Date through the end of the sixth full calendar month the
Sublease Term immediately following the Sublease Rent Commencement Date, shall be payable in
advance without notice on June 15, 2006. The foregoing notwithstanding, the first three full months
of the Basic Sublease Rent is hereby waived and fully abated by Sublandlord to Subtenant for the
first three full calendar months following the Sublease Rent Commencement Date. The monthly
installments of Basic Sublease Rent (together with all Florida sales tax or rental tax due on any
payments made under this Sublease) with respect to the portion of the Sublease Term beginning with
the seventh full calendar month following the Sublease Rent Commencement Date shall be payable on
the first (1st) day of each calendar month throughout the Sublease Term. If the Sublease Rent
Commencement Date is a date other than the first day of a calendar month, then the monthly
installment of Basic Sublease Rent for the month in which the Sublease Rent Commencement Date
occurs and shall be an amount equal to the applicable monthly installment set forth in the table
above multiplied by a fraction, the numerator of which is the number of days from and including the
Sublease Rent Commencement Date through the last day of the calendar month, and the denominator of
which shall be the number of days in the calendar month in which the Sublease Rent Commencement
Date occurs. If the Sublease Term ends on any date other than the last day of a calendar month,
then the monthly installment of Basic Sublease Rent for the month in which the Sublease Term ends
shall be an amount equal to the applicable monthly installment set forth in the table above
multiplied by a fraction, the numerator of which shall be the number of days from and including the
first day of such calendar month through the date on which the Sublease Term ends, and the
denominator of which shall be the number of days in the calendar month in which the Sublease Term
ends. The Basic Sublease Rent is gross rent, and Subtenant shall have no obligation to pay all or
any portion of the Rent under Section 1.5 of the Prime Lease and or the Additional Rent under
Section 1.6 of the Prime Lease, or any other rent or additional rent to Prime Landlord under the
Prime Lease payable in respect to ownership or operating costs or expenses, except as otherwise
expressly stated in this Sublease.

     1.6 Additional Rent. “Additional Sublease Rent” means all amounts other than Basic Sublease
Rent that Subtenant is obligated to pay to Sublandlord pursuant to this Sublease. Subtenant shall
pay to Sublandlord, as Additional Sublease Rent (or, if so directed by Sublandlord, Subtenant shall
pay directly to Prime Landlord), an amount equal to all additional rent and other charges that
Sublandlord becomes obligated to pay to Prime Landlord for any services for the Subleased Premises
that are requested by Subtenant and for which Sublandlord is obligated to pay any additional rent
or charges other than Tenant’s Proportionate Share of Operating Expenses under Section 1.6 the
Prime Lease.

     1.7 General Payment Provisions. The terms Basic Sublease Rent and Additional Sublease Rent are
referred to collectively as “Sublease Rent” in this Sublease. All payments of Sublease Rent shall
be payable by checks drawn on good and sufficient funds, to AT&T Corp. c/o Bank of America, P.O.
Box 277060, Atlanta, Georgia 30384-7060, or at such other address as may be designated from time to
time by Sublandlord by notice to Subtenant. Other than the Basic Sublease Rent (together with all
Florida sales tax or rent tax due upon any payments made under this Lease), all sums that Subtenant
may owe Sublandlord under this Sublease, shall be due and payable thirty (30) days after
Subtenant’s receipt of a bill or invoice from Sublandlord. All Sublease Rent shall be paid to
Sublandlord without deduction or offset. If Subtenant fails to pay any installment of the Sublease
Rent or any other sum of money owing to Sublandlord within five (5) days of the date

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when due, Subtenant shall pay a late fee of five percent (5%) of the amount past due (which
late fee represents an agreed upon compensation for the administrative costs incurred by
Sublandlord as the result of such late payment and not payment for the use of money), and Subtenant
shall pay said late fee as Sublease Additional Rent immediately and without demand.

     1.8 Security Deposit. Within five (5) days after execution of this Sublease by Sublandlord and
Subtenant, Subtenant shall deposit with Sublandlord the sum of $40,842.75 as security for the full
and faithful performance of every portion of this Sublease to be performed by Subtenant. If
Subtenant defaults with respect to any provision of this Sublease, Sublandlord may use, apply or
retain all or any portion of this security deposit to remedy such default. If any portion of said
deposit is so used or applied, Subtenant shall, within ten (10) days after demand therefor, deposit
money with Sublandlord in an amount sufficient to restore the security deposit to $40,842.75, and
Subtenant’s failure to do so shall be a material breach of this Sublease. Sublandlord shall not be
required to keep this security deposit separate from its general funds and Subtenant shall not be
entitled to interest on such deposit. If Subtenant shall fully and faithfully perform every
provision of this Sublease to be performed by it, the security deposit or any balance thereof shall
be returned to Subtenant within thirty (30) days of termination of the Sublease Term.

ARTICLE II — USE & OPERATION

     2.1 Use. The Subleased Premises may be used by Subtenant for general office or administrative
use or uses incidental thereto, customer service, marketing operations, telecommunications
switching and information processing, electrical laboratory repair work, or storage. Subtenant
shall pay, as Additional Sublease Rent, any documented and verifiable increases, if any, in the
cost of Prime Landlord’s insurance or Sublandlord’s insurance occasioned by Subtenant’s particular
use of the Subleased Premises. Subtenant shall not use or permit the use of the Subleased Premises
by its Personnel for any activity that is unlawful, that is a nuisance, that unreasonably disturbs
or interferes with Prime Landlord or Sublandlord or any other tenant of the Building, that is, or
that violates the Building Rules attached as Exhibit C to the Prime Lease or any permitted changes
thereto. The term “Personnel” means, collectively, the officers, agents, employees, contractors,
licensees, guests, and visitors of any person or entity.

     2.2 HVAC, Electricity, and Janitorial Service.

     [Section 2.2(a) was omitted intentionally.]

     (b) If Subtenant’s equipment requires HVAC services that cannot be accommodated by the
designed capacities of the Building’s HVAC systems, supplemental HVAC systems subject to Prime
Landlord’s approval in accordance with Section 2.2(b) of the Prime Lease, shall be installed as
part of the construction of the Subleasehold Improvements or any subsequent Alterations at
Subtenant’ s expense. The installation (to the extent not covered by the Allowance), maintenance,
repair and utility cost of any supplemental HVAC systems shall be performed by Subtenant at
Subtenant’ s sole cost and expense.

     (c) Subtenant shall be entitled to use the electrical power supplied by the Prime Landlord to
the Subleased Premises pursuant to Section 2.2(c) of this Sublease, at no cost to Subtenant in
excess

9

 

of the Sublease Rent specified in Section 1.5 of this Sublease. Subtenant shall pay for any
risers, wiring, or other additional equipment approved by the Prime Landlord in accordance with
Section 2.2(c) of the Prime Lease if needed to provide excess electrical power for any supplemental
air conditioning for the Subleased Premises or if Subtenant otherwise requests such risers, wiring
or other additional equipment. If HVAC services for the section of the Building in which the
Subleased Premises are located are provided, at the request of Subtenant, outside of normal
business hours (Monday through Friday between the hours of 7:00 a.m. and 6:00 p.m. and Saturday
between the hours of 7:00 a.m. and 1:00 p.m.), then Subtenant shall pay to Sublandlord (or directly
to Prime Landlord if directed to do so by Sublandlord), all amounts that Sublandlord becomes
obligated to pay Prime Landlord pursuant to Section 2.2(c) of the Prime Lease, which provides for
an hourly rate of $12.50 per hour and a minimum of two (2) hours for overtime air conditioning
services. Without limiting any other remedy that may be available to Sublandlord, if Subtenant
fails to pay any such charges for HVAC services outside of normal business hours, Sublandlord shall
be entitled to suspend Subtenant’s right to receive heating, ventilation or air conditioning of the
Subleased Premises at times outside of normal business hours unless and until Subtenant pays all
arrearages of HVAC Charges.

     (d) Sublandlord shall provide cleaning services to the Subleased Premises in accordance with
the schedule that is attached to this Sublease at Exhibit E, at no cost to Subtenant in excess of
the Sublease Rent specified in Section 1.5 of this Sublease. Subtenant shall comply with the rules
and regulations of all public and private utility providers. Subtenant shall employ, and cause
their contractors to employ, competent and experienced persons capable of meeting the standards of
service established by the Prime Lease. If and only if the Rent, Tenant’s Proportionate Share of
Operating Expenses, and any other sums payable by Sublandlord under the Prime Lease are abated with
respect to all or any portion of the Subleased Premises in accordance with Section 2.2 of the Prime
Lease, then the Sublease Rent also shall be abated for the same portion of the Subleased Premises,
and for the same amount of time that such rent abatement continues under the Prime Lease. If
Sublandlord elects to surrender possession of the Premises and terminate the Prime Lease in
accordance with Section 2.2 of the Prime Lease then this Sublease shall terminate at the same time
that the Prime Lease terminates.

     2.3 Entry by Prime Landlord or Sublandlord. Subtenant acknowledges that Prime Landlord has the
right to enter the Subleased Premises in accordance with Section 2.3 of the Prime Lease. Sub
landlord also shall have the right to enter the Subleased Premises upon advance notice to Subtenant
(except in a bona fide emergency, when Sub landlord need only make a reasonable effort to inform
Subtenant before entering the Subleased. Premises). Sublandlord shall use all reasonable efforts
not to disturb Subtenant or Subtenant’s business while Sublandlord is in the Subleased Premises.

     2.4 Signs and Building Name. No interior or exterior signs may be installed by Subtenant in
the Building or on the Property without the express prior consent of Prime Landlord. Sublandlord
shall cause Subtenant’s name to be added to all Building directories, as provided in Section 3 of
Exhibit C to the Prime Lease.

     2.6 Subleasehold Improvements and Alterations. No construction of the Subleasehold
Improvements or any other alterations, additions, or improvements to the Subleased Premises,

10

 

including, but not limited to, telephone, data and other wiring and cabling (collectively,
“Alterations”) shall be performed by Subtenant without the express prior written consent of the
Prime Landlord and otherwise in compliance with the requirements set forth in the Construction
Agreement attached to the Prime Lease. Subtenant shall provide plans specifications, copies of
building permits and the name of the contractor to perform the work to Prime Landlord for approval
for any alterations or modifications involving construction. Unless otherwise notified by Prime
Landlord at the time of consent to any Alterations, Subtenant may abandon said Alterations to the
Subleased Premises at the expiration of the Sublease Term. All Alterations to the Subleased
Premises shall be accomplished in a good and workmanlike manner in compliance with applicable laws
by contractors duly licensed and insured in Florida selected and employed by Subtenant. Subtenant
shall, at Subtenant’s own cost and expense, obtain all governmental permits and approvals required
for the Subleasehold Improvements and any other Alterations, including a certificate of occupancy
or any other governmental permit, license or approval required for the occupancy and use of the
Subleased Premises by Subtenant. Subleased Improvements and any other Alterations approved by Prime
Landlord shall not be considered waste. All Subleasehold Improvements and any other Alterations to
the Subleased Premises shall become Prime Landlord’s property without compensation to Subtenant on
installation in the Building except for the following, which shall be Subtenant’s property, (a)
Subtenant’s furniture and moveable equipment that is not attached to the floors, walls, or ceiling
of the Subleased Premises; (b) even though attached to any part of the Subleased Premises,
furnishings such as pictures or drapes that are attached only by hooks or hangers; and (c) any
other fixtures equipment, or other items, regardless of the manner of attachment, that are used
primarily in Subtenant’ s trade or business, including computers, supplemental air-conditioning
equipment telecommunications and information processing equipment, antennas, built-in vaults,
cabinets (except those affixed in the break rooms or storage rooms), counters, or display cases
that can be removed as a separate physical unit, video, film, and audio equipment, raised flooring,
and icemakers, drink dispensers, refrigerators, and other kitchen equipment that can be removed as
a separate physical unit.

Subtenant may remove any of Subtenant’s property at any time during the Sublease Term and shall
remove its property at the end of the Sublease Term. Subtenant shall not be required to remove
pipes, wires, or other materials originating from the walls, ceilings, or floors as long as
Subtenant properly cuts, disconnects, and caps or seals the pipes in a safe and lawful manner, but
if applicable building codes or other governmental laws or regulations require removal of any such
pipes, wire, or other materials originating from the walls, ceilings, or floors, then Subtenant
shall comply with such requirement at Subtenant’ s sole cost and expense. Subtenant shall repair
all other damage to the Property caused by Subtenant’s removal of its property from the Subleased
Premises, ordinary wear and tear excepted. Subtenant shall, at Subtenant’s sole cost and expense,
remove any and all communications wiring installed by Subtenant.

     2.7 Approval of Sublease Improvements. Without regard to the approval requirements set forth
in Section 2.6 above, Sublandlord and Prime Landlord (through Prime Landlord’s consent to this
Sublease) hereby approve the Sublease Improvements and Alterations proposed by Subtenant as
described on Sublease Exhibit D.

     2.8 Mechanics’ Liens. Subtenant shall not permit any lien on the Subleased Premises or any
other part of the Property for any work performed, materials furnished, or obligation incurred by

11

 

Subtenant or contractors employed by Subtenant. If any such prohibited lien or lien claim is
filed or asserted, Subtenant shall cause the lien or claim to be promptly released of record, or at
Subtenant’ s option, Subtenant shall promptly furnish a bond or other security for the payment of
the lien claim. The bond or other security shall be reasonably acceptable to Prime Landlord, and on
posting of the bond or other security, Subtenant shall have the right to contest the lien claim by
appropriate legal proceedings.

     2.9 Taxes. Subtenant shall pay when due all taxes levied or assessed against Subtenant’s
property in the Subleased Premises.

     2.10 Compliance with Legal Requirements.

     (a) Subtenant shall comply with all applicable Legal Requirements insofar as they pertain
solely to the particular manner in which Subtenant shall use the Subleased Premises as
distinguished from office use generally. Sublandlord shall have no obligation to Subtenant to
comply with any Legal Requirements with respect to the Subleased Premises, including cases where
Legal Requirements mandate repairs, alterations, changes or additions to the Subleased Premises not
caused by Subtenant’s particular use thereof.

     (b) To the extent assignable, Sublandlord assigns to Subtenant Prime Landlord’s representation
and warranty under Section 2.10(b) of the Prime Lease that all applicable covenants, restrictions,
easements, zoning and other Legal Requirements in effect as of the date of the Prime Lease and the
commencement date of the Prime Lease permit the use of the Subleased Premises for general office
purposes, storage, and uses accessory and incidental thereto.

     (c) To the extent assignable, Sublandlord assigns to Subtenant Prime Landlord’s representation
and warranty under Section 2.10(c) of the Prime Lease that the Property, the common areas and
exterior entrances to the Building were in compliance with all applicable Legal Requirements,
including, without limitation, the Americans with Disabilities Act as of the commencement date of
the Prime Lease.

ARTICLE III — RISK MANAGEMENT

     3.1 Insurance. Except as otherwise provided in this Section, insurance policies meeting the
following requirements shall be obtained and kept in force throughout the Sublease Term:

     (a) [Section 3.1(a) was omitted intentionally.]

     (b) Subtenant shall carry (I) ISO Special Form Property Insurance on its personal property and
trade fixtures in the Subleased Premises in an amount not less than full replacement value, and
(ii) Commercial General Liability Insurance (1986 ISO Form or its equivalent) with a combined
single limit, each occurrence and general aggregate-per location of at least $5,000,000, naming
Prime Landlord and Sublandlord, and their respective affiliates, officers, agents and employees, as
additional insureds. The liability policies shall be primary and non-contributory from any
insurance that is maintained by Sublandlord and the Prime Landlord. Subtenant shall keep any
non-standard improvements made to the premises at Subtenant’s request insured to the same degree as
Subtenant’s

12

 

personal property. Subtenant also shall carry workers’ compensation insurance with benefits
afforded under the laws of the state in which the Subleased Premises is located and Employers
Liability insurance with minimum limits of: $1,000,000 for Bodily Injury-each accident, $1,000,000
for Bodily Injury by disease-policy limits, $1,000,000 for Bodily Injury by disease-each employee.

     (c) A certificate of insurance stating the types of insurance and policy limits provided must
be received prior to any entry by Subtenant into the Subleased Premises. The Subtenant shall also
require all contractors and subcontractors performing work on the Subleased Premises or who may
enter upon the Subleased Premises to comply with the insurance requirements stated in this Section
3.1. All required policies shall be underwritten by insurers who have a general policy holders
rating of not less than A and a financial rating of Class X as stated in the most current available
Best’s Insurance Reports, who are licensed to do business in the State in which the Property is
located, and who are authorized to issue the policies. The Subtenant shall deliver to Prime
Landlord and the Sublandlord certificates of insurance prior to the Sublease Term Commencement Date
and renewal certificates not less than ten (10) days prior to the expiration of the previous
policies. All policies carried by Subtenant shall contain an undertaking by the insurers to notify
Prime Landlord and Sublandlord in writing not less than thirty (30) days prior to any material
change, reduction in coverage, cancellation, non-renewal or termination. All liability policies
that cover multiple insured parties shall contain a provision stating that the policy shall apply
to each insured in the same manner and to the same extent as if a separate policy had been issued
to each, except with respect to limits of liability. If Subtenant fails to provide Prime Landlord
and Sublandlord with such certificates or other evidence of insurance Sublandlord may obtain such
coverage and Subtenant shall reimburse the cost thereof on demand, as Additional Sublease Rent.
Sublandlord shall provide Subtenant notice if Sublandlord intends to obtain such coverage and
Subtenant shall have until five (5) days prior to the expiration or change or reduction in coverage
or cancellation or termination to cure such default.

     (d) Anything in this Sublease to the contrary notwithstanding, Subtenant hereby waives and
releases any and all rights of recovery, claims, or causes of action, against Sublandlord and Prime
Landlord for any loss or damage that may occur to the property of Subtenant by reason of fire, the
elements, or any other cause that is or could be insured against under the terms of fire and
extended coverage insurance policies (whether or not actually so insured) regardless of cause or
origin, including negligence of Sublandlord or Prime Landlord or their respective Personnel, and
agrees that no insurer or self insurer shall hold any right of subrogation or recovery against
Sublandlord or Prime Landlord. Anything in this Sublease to the contrary notwithstanding,
Sublandlord hereby waives and releases any and all rights of recovery, claims, or causes of action,
against Subtenant for any loss or damage that may occur to the property of Sublandlord by reason of
fire, the elements, or any other cause that is or could be insured against under the terms of fire
and extended coverage insurance policies (whether or not actually so insured) regardless of cause
or origin, including negligence of Subtenant or its Personnel, and agrees that no insurer or self
insurer shall hold any right of subrogation or recovery against Subtenant. All policies of
insurance shall be appropriately endorsed as needed to effectuate the foregoing waivers.

     (e) Except for loss or damage to property covered by the waivers in Section 3.1(d),
Sublandlord and Subtenant shall indemnify and hold the other harmless against all loss, liability,
damage, cost, or expense (including attorneys’ fees and court costs), or any claim therefor , (i)

13

 

resulting or alleged to result from any breach, violation, or nonperformance of this Sublease
by the indemnifying party or (ii) on account of any actual or alleged injury or damage to persons
or property caused in any way by the act or omission of the indemnifying party or its Personnel in,
on, or otherwise related to the use or occupancy of, the Premises or any other part of the
Property.

     3.2 Casualty Damage. If the Prime Lease is terminated in accordance with Section 3.2 of the
Prime Lease by reason of a fire or other casualty, then this Sublease shall be terminated as of the
same date that the Prime Lease is terminated, If any part of Premises (including the Subleased
Premises) or any other part of the Property affecting the fitness of the Premises for normal use is
damaged by fire or other casualty, Sublandlord shall be entitled to exercise the right to terminate
the Prime Lease pursuant to Section 3.2 of the Prime Lease, in Sublandlord’s sole discretion. If
the Subleased Premises is damaged by fire or other casualty and the Prime Lease is not terminated,
then the Sublease Rent shall be abated with respect to the same proportion of the Subleased
Premises, and for the same amount of time, that the Rent, Tenant’s Proportionate Share of Operating
Expenses, and any other sums payable by Sublandlord under the Prime Lease shall be abated pursuant
to Section 3.2 of the Prime Lease.

     3.3 Uninsured Property Damage. Subtenant shall be responsible for paying the Prime Landlord
the cost of repairing any damage to any part of the Property caused by Subtenant or Subtenant’s
employees. Any repairs shall restore the damaged part of the Property to as good a condition as it
was in immediately prior to the damage. Any repairs within the Subleased Premises shall be
performed by Subtenant at Subtenant’s expense. If Sublandlord is obligated under the Prime Lease to
pay Prime Landlord for any repairs for which Subtenant is responsible under this Sublease, then
Subtenant shall, on demand, either (i) pay to Sublandlord, as Additional Sublease Rent, all amounts
that Sublandlord is obligated to pay to the Prime Landlord for the cost of all such repairs, or
(ii) pay the cost of all such repairs directly to Prime Landlord.

     3.4 Condemnation. If the Prime Lease is terminated pursuant to Section 3.4 of the Prime Lease
by reason of any condemnation or taking for public use, this Sublease shall terminate as of the
date on which the Prime Lease is terminated. If a portion of the Subleased Premises is taken and
this Sublease is not terminated, this Sublease shall continue in full force and effect, and the
Sublease Rent shall be reduced in proportion to the rentable floor area of the Subleased Premises
condemned or taken. To the extent permitted by the Prime Lease, Subtenant shall be entitled to
appear, claim, prove, and receive in the condemnation proceeding any award for Subtenant’s business
damages and relocation expenses. Subtenant shall not be entitled to any other awards, including,
but not limited to, the value of Subtenant’s unexpired subleasehold estate.

ARTICLE IV — MISCELLANEOUS

     4.1 Quiet Enjoyment. Sublandlord represents and warrants to Subtenant that it has the full
right, power, and authority to enter into and perform this Sublease. Sublandlord covenants that
Subtenant shall peacefully and quietly have, hold, and enjoy the Subleased Premises and all
appurtenances and other rights under this Sublease without hindrance, claim, or interference by
Sublandlord or any other person (excluding Subtenant’s employees), and Sublandlord shall take all
reasonable steps to secure and to maintain such quiet and peaceful enjoyment by Subtenant.

14

 

Construction or other work on other portions of the Property shall not be construed to breach
the Sublandlord’s covenant of quiet enjoyment.

     4.2 Subordination to Prime Lease. Subtenant acknowledges that this Sublease is subject and
subordinate to the Prime Lease, which is subject and subordinate to any mortgage deed of trust,
ground lease, or other encumbrance of the Property pursuant to Section 4.2 of the Prime Lease.

     4.3 Transfer by Sublandlord. Sublandlord shall have the right to transfer or assign its
interest under the Prime Lease and any of its rights under this Sublease (to the extent permitted
under the Prime Lease). No transfer or assignment by Sublandlord shall release Sublandlord from any
liability or obligation to Subtenant for the payment of any allowance or other sum of money. If
Sublandlord’s transferee or assignee assumes Sublandlord’s obligations, Sublandlord shall remain
liable for all existing liabilities or obligations, but shall be released from any future
obligations.

     4.4 Transfer by Subtenant. Subtenant shall have the right to sublease all or any part of the
Subleased Premises, to assign this Sublease in whole or in part, and to otherwise transfer or
encumber its interest in this Sublease and the Subleased Premises to (a) any party who is
“affiliate” of Subtenant within the meaning of the Securities Act of 1933, as amended, and
applicable regulations thereunder, or (b) any successor by merger, consolidation, or other action
to Subtenant or its affiliates. Except as provided in the preceding sentence, Subtenant shall not
sublease any part of the Subleased Premises or assign or otherwise transfer this Sublease in whole
or part without (i) Sublandlord’s consent, not to be unreasonably withheld, delayed or conditioned,
and (ii) Prime Landlord’s consent in accordance with Section 4.4 of the Prime Lease. If Subtenant
wishes to exercise its right to sublease or assign, Subtenant shall notify Sublandlord and Prime
Landlord of the proposed sublease or assignment stating the name of the proposed subtenant or
assignee, the nature of its business, and the effective date of the sublease or assignment.
Sublandlord shall notify Subtenant in writing within thirty (30) days after receipt of Subtenant’s
notice together with financial information on the proposed new occupant sufficient for Sublandlord
to evaluate the financial strength and creditworthiness of such party. Unless Sublandlord does not
approve of the proposed sublease or assignment, Sublandlord shall have waived any right it may have
to object to the sublease or assignment. No assignment nor subleasing shall release Subtenant from
any liability or obligation under this Sublease. Subtenant and Sublandlord shall equally share in
any profit of the Sublease or assignment after deducting transaction costs which shall include but
not be limited to tenant improvement allowances, moving allowances, architectural and engineering
allowances, market leasing commissions, and reasonable legal fees.

     4.5 Estoppel Certificates. Upon not less than ten (10) business days’ prior written request by
Sublandlord, Subtenant shall execute a written statement certifying that this Sublease is
unmodified and in full force and effect (or if there have been modifications, that this Sublease is
in full force and effect as modified, and identifying the modifications), the dates to which
Sublease Rent has been paid, whether any default is known to Subtenant and the nature of the
default, if any, and such other matters concerning this lease as may be reasonably requested which
are substantially in the form of Sublease Exhibit C.

15

 

ARTICLE V — DEFAULT & REMEDIES

     5.1 Subtenant’s Default. Each of the following shall be an event of default by Subtenant:

     (a) Subtenant fails to pay any installment of the Sublease Rent or any other sum of money
owing to Sublandlord when due, and the failure continues for five (5) business days or more after
Subtenant receives written notice from Sublandlord.

     (b) Subtenant fails to comply with any provision of this Sublease not relating to payment of
the Sublease Rent or other sums of money owing to Sublandlord, and the failure continues for a
period of thirty (30) days or more after Subtenant receives written notice from Sublandlord (except
that if compliance cannot reasonably be achieved within the thirty (30) day period, there shall be
no event of default so long as Subtenant promptly attempts and diligently and continuously pursues
actions intended to bring about compliance).

     5.2 Sublandlord’s Remedies. If an event of default by Subtenant occurs, Sublandlord shall have
the right to enforce anyone or more of the following remedies:

     (a) Terminate Subtenant’s right to possession of the Subleased Premises by written notice to
Subtenant, take possession of the Subleased Premises, and expel or remove Subtenant and any other
person who may be occupying any part of the Subleased Premises.

     (b) Terminate this Sublease and recover all sums owing and unpaid as of the date of
termination plus damages measured by the difference in the discounted present rental value the
Subleased Premises if this Sublease had been fully performed for the balance of the Sublease Term
and the discounted present rental value of the Subleased Premises following the event of default
(taking into account reasonable remodeling, lease commission, and other costs of relenting).

     (c) Without terminating this Sublease, relet the Subleased Premises for Subtenant’s account on
commercially reasonable terms, and recover in one or more suits from time to time or at any time
before the end of the Sublease Term, any then accrued Sublease Rent due and owing under this
Sublease plus any reasonable remodeling, lease commission, legal fees or other costs of reletting
less all amounts received by Sublandlord as the result of reletting.

     (d) Enter the Subleased Premises and do whatever Subtenant was obligated to do, and recover
from Subtenant any reasonable expenses Sublandlord may incur in effecting compliance with
Subtenant’s obligations.

     (e) Any other remedies available at law or in equity.

     5.3 Sublandlord’s Defaults. Each of the following shall be an event of default by Sublandlord:

     (a) Sublandlord fails to pay any sum of money when due, and the failure continues for five (5)
business days or more after Sublandlord receives written notice from Subtenant.

16

 

     (b) Sublandlord fails to comply with any provision of this Sublease not relating to payment of
money or to the furnishing of notice, consent, approval, or information, and the failure continues
for a period of thirty (30) days or more after Sublandlord receives written notice from Subtenant
(except that if compliance cannot reasonably be achieved within the thirty (30) day period, there
shall be no event of default by Sublandlord so long as Sublandlord promptly attempts and diligently
and continuously pursues actions intended to bring about compliance).

     5.4 Limitation of liability. In an event of default by Sublandlord occurs, Subtenant shall be
entitled to any remedy available at law or equity, except that (i) in no event shall Subtenant be
entitled to any abatement of Sublease Rent unless there is an actual eviction of Subtenant by
Sublandlord, and (ii) any other provision of this Sublease notwithstanding, neither Sublandlord nor
Subtenant will be liable to the other party for any punitive, consequential, or indirect damages
resulting from or arising out of any breach, violation or nonperformance of any of such party’s
obligations under this Sublease, and each party expressly waives and releases the other party from
all such liability, but the foregoing shall not limit any of the express indemnity obligations of
Subtenant and Sublandlord stated in this Sublease, including Section 1.3(e) and 1.3(f) of this
Sublease, respectively.

     5.5 No Implied Waiver. The failure of a party to insist upon the strict performance of an
agreement or to exercise any remedy for an event of default shall not be construed as a waiver. The
waiver of any event of default shall not prevent a subsequent similar event from being a default.
No waiver shall be effective unless expressed in writing signed by the waiving party. No waiver
shall affect any condition other than the one specified in the waiver, and then only for the time
and in the manner stated.

     5.6 Attorneys’ Fees. If either party initiates any litigation against the other relating to
this Sublease, the prevailing party shall be entitled to recover from the other party all court
costs and reasonable attorneys’ fees incurred in connection with the litigation.

     5.7 Interest. All past-due sums payable by either party shall bear interest from the date due
until paid a rate per annum of fifteen percent (15%), and such interest shall be payable without
notice or demand. Subtenant shall pay said interest as Sublease Additional Rent.

ARTICLE M — MISCELLANEOUS

     6.1 Notice. Any notice contemplated by this Sublease shall be in writing, and may be given by
depositing the notice in the United States mail, postpaid, and certified, and addressed to the
party to be notified with return receipt requested, by overnight mail (including but not limited to
Federal Express), or by delivering the same in person to the party. Notice is deemed given when
received. The notification address of the Subtenant shall be the Subleased Premises, as follows:
3405 West Dr. Martin Luther King Jr. Blvd., West Tampa, Florida 33607. Subtenant has the right to
change its address by at least ten (10) days’ written notice to Sublandlord. The notification
address of Sublandlord shall be AT&T GRE Lease Administration, Room IB201 One AT&T Way, Bedminster,
NJ 07921. Sublandlord has the right to change its address by at least ten (10) days’ written notice
to Subtenant.

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     6.2 Captions. The captions appearing in this Sublease are included solely for convenience and
shall never be given any effect in construing this Sublease.

     6.3 Use of Terms. All pronouns include the other genders, however used, and the singular
includes the plural whenever it is appropriate. The word “include” and other forms of that word do
not denote an exhaustive or complete list or enumeration. Unless otherwise expressly referring to
Exhibits, Rider or Addenda attached to the Prime Lease, references to Exhibits, Riders, or Addenda
are references to documents attached to this Sublease. Unless otherwise expressly referring to
sections of the Prime Lease, references to Sections are references to the numbered sections of this
Sublease. Unless context otherwise requires capitalized terms used in this Sublease and not defined
herein shall have the meanings ascribed to such terms in the Prime Lease.

     6.4 Time of the Essence. In all instances where either party is required to pay any sum or do
any other act at a particular time or within a specified period, it is understood that time is of
the essence.

     6.5 Rules of Construction. This Sublease represents the result of negotiations between Sub
landlord and Subtenant, each of which has been represented by counsel of its own selection and
neither of which has acted under duress or compulsion, whether legal, economic, or otherwise.
Consequently, the provisions of this Sublease shall be interpreted and construed in accordance with
their usual and customary meanings, and Sublandlord and Subtenant expressly waive and disclaim any
rule of law or procedure requiring otherwise, including any rule of law that ambiguous or
conflicting provisions shall be interpreted or construed against the party whose attorney prepared
this Sublease or any earlier draft of this Sublease.

     6.6 Entirety and Amendments. This document embodies the entire contract between the parties,
and supersedes all prior agreements and understandings between the parties related to the Subleased
Premises, including all lease proposals, letters of intent, and similar documents. This Sublease
may be amended only by a written instrument executed by duly authorized representatives of the
parties.

     6.7 Counterparts and Inclusion. This Sublease is being executed in multiple counterparts, each
of which shall be considered an original for all purposes. The pages of this Sublease, including
any Exhibits, Riders, Addenda, or other attachments may be initialed by the parties for
identification. The circumstances that any page is not initialed is not evidence that page is not a
part of the Sublease, nor does the process of initialing pages preclude introduction of other
evidence whether any page is or is not a part of this Sublease.

     6.8 Severability. If any provision of this Sublease is invalid or unenforceable, the remainder
of this Sublease shall not be affected. Each separate provision of this Sublease shall be valid and
enforceable to the fullest extent permitted by law.

     6.9 Binding Effect. This Sublease binds not only Sublandlord and Subtenant, but also their
respective heirs, personal representatives, successors, and assigns.

18

 

     6.10 Governing Law; Venue. This Lease is governed by the laws of the State in which the
Property is located. All monetary obligations of Sublandlord or Subtenant (including any obligation
of Sublandlord or Subtenant for damages) are performable exclusively in the country in which the
Property is located.

     6.11 Memorandum of Lease. Neither this Sublease nor a memorandum of this Sublease shall be
recorded by either Sublandlord or Subtenant.

     6.12 Brokers and Consultants. The parties warrant that they have had no dealings with any real
estate broker or agent in connection with this Sublease, except Cushman & Wakefield of Florida,
Inc. as the Sublandlord’s broker, and Equis Corporation, the Subtenant’s broker (collectively, the
“Brokers”). Each party covenants to hold harmless, indemnify and defend the other from and against
any and all costs, expenses or liabilities for any compensation commissions and charges claimed by
any other broker or agent with respect to this Sublease or the negotiation thereof, based upon
alleged dealings with the indemnifying party. Sublandlord agrees to pay the commissions of the
Brokers in accordance with separate agreement between Sublandlord and C&W, pursuant to which C&W
will share such commission payment with Equis Corporation.

     6.13 Environmental Representation. To the extent assignable, Sublandlord assigns to Subtenant
Prime Landlord’s representation and indemnity under Section 6.13 of the Prime Lease as relating to
the Subleased Premises.

     [Section 6.14 was omitted intentionally.]

     6.15 Radon Notification.

     The following notification is provided pursuant to the requirements of Florida Statute Section
404.056 (6):

     “RADON GAS”: Radon is a naturally occurring radioactive gas that, when it has accumulated in a
building in sufficient quantities, may present health risks to persons who are exposed to it over
time. Levels of radon that exceed federal and state guidelines have been found in buildings in
Florida. Additional information regarding radon and radon testing may be obtained from your county
public health department.

     [Section 6.16 was omitted intentionally.]

     6.17 Force Majeure. Sublandlord shall be excused for the period of any delay and shall not be
deemed in default with respect to the performance of any of the terms, covenants, and conditions of
this Sublease when prevented from doing so by a cause or causes beyond Sublandlord’s control, which
shall include, but shall not be limited to, all labor disputes governmental regulations or
controls, fire or other casualty, inability to obtain any material or services or acts of God.
Subtenant shall be excused for the period of any delay and shall not be deemed in default with
respect to the performance of any of the terms, covenants and conditions of this Sublease (other
than the payment of Sublease Rent or any other sum due to be paid by Subtenant hereunder) when
prevented from so doing by a cause or causes beyond Subtenant’s control, which shall include, but
shall not be limited

19

 

to, all labor disputes, governmental regulations or controls, fire or other casualty,
inability to obtain any material or service, or acts of God.

     [Section 6.18 was omitted intentionally.]

     6.19 Attachments. The following Exhibits and Riders are attached to and made a part of this
Sublease:

	 	 	 
	 

	 	Sublease Exhibit A — Floor plan diagram of the Subleased Premises
	 

	 	Sublease Exhibit B — Copy of the Prime Lease
	 

	 	Sublease Exhibit C — Form of Estoppel Certificate
	 

	 	Sublease Exhibit D — Approved Alterations
	 

	 	Sublease Exhibit E — Cleaning Services Schedule

     IN WITNESS WHEREOF, Sublandlord and Subtenant, acting by duly authorized officers or other
representatives, have caused this Sublease to be executed on the 22nd day of May
2006.

20

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	SUBLANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AT&T Corp.	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Alan L. Abrahamson	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
Alan L. Abrahamson	 	 
	 

	 	 	 	 	 	Title:
Asset Management Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Witnesses:	 	 	 	 	 	 	 	 
	By:

	 	/s/ Craig S Bruch	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
Craig S Bruch
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert R. Ericksen	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
Robert R. Ericksen
	 	 	 	 	 	 	 	 

21

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	SUBTENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Comprehensive
Behavioral Care, Inc.	 	 
	 

	 	 	 	 	 	By:
	 	/s / Robert J. Landis	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
Robert J. Landis	 	 
	 

	 	 	 	 	 	Title:
Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Witnesses:	 	 	 	 	 	 	 	 
	By:

	 	/s/ Diane Brown	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
Diane Brown
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Scott Bates	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
Scott Bates
	 	 	 	 	 	 	 	 

22PACIFIC WEBWORKS, INC. 2001 EQUITY INCENTIVE PLAN
              (As Adopted March 8, 2001 and amended)

1.    INTRODUCTION.

      The Plan, as set forth herein, shall become effective on the date of its
adoption by the Board of Directors.  In the event that the stockholders fail
to approve the Plan within 12 months after its adoption by the Board of
Directors, any grants of Options or sales or awards of Shares that have
already occurred shall be rescinded, and no additional grants, sales or awards
shall be made thereafter under the Plan.  The purpose of the Plan is to
promote the long-term success of the Company and the creation of stockholder
value by (a) encouraging Employees, Independent Directors and Consultants to
focus on critical long-range objectives, (b) encouraging the attraction and
retention of Employees, Independent Directors and Consultants with exceptional
qualifications and (c) linking Employees, Independent Directors and
Consultants directly to stockholder interests through increased stock
ownership.  The Plan seeks to achieve this purpose by providing for Awards in
the form of Restricted Shares, Options (which may constitute incentive stock
options or nonstatutory stock options) or stock appreciation rights.  The Plan
shall be governed by, and construed in accordance with, the laws of the State
of Utah, without giving effect to any choice or conflict of law, rule or
provision (whether of the State of Utah or other jurisdiction) which would
cause the application of any law, rule, provision or regulation other than of
the State of Utah.

2.    ADMINISTRATION.

      2.1.  COMMITTEE COMPOSITION.

            The Plan shall be administered by the Committee.  The Committee
shall consist exclusively of two or more directors of the Company, who shall
be appointed by the Board.  In addition, the composition of the Committee
shall satisfy:  (a) such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to
qualify for exemption under Rule 16b-3 (or its successor) under the Exchange
Act; and (b) such requirements as the Internal Revenue Service may establish
for independent directors acting under plans intended to qualify for exemption
under section 162(m)(4)(C) of the Code.

      2.2.  COMMITTEE RESPONSIBILITIES.

            The Committee shall (a) select the Employees, Independent
Directors and Consultants who are to receive Awards under the Plan, (b)
determine the type, number, vesting requirements and other features and
conditions of such Awards, (c) obtain Board approval in advance of any grant
under the plan to officers, directors or Consultants subject to Section 16 of
the Exchange Act, (d) interpret the Plan, and (e) make all other decisions
relating to the operation of the Plan.  The Committee may adopt such rules or
guidelines as it deems appropriate to implement the Plan.  The Committee's
determinations under the Plan shall be final and binding on all persons.

      2.3.  COMMITTEE FOR NON-OFFICER GRANTS.

            The Board may also appoint a secondary committee of the Board,
which shall be composed of one or more directors of the Company who need not
satisfy the requirements of Section 2.1.  Such secondary committee may
administer the Plan with respect to Employees and Consultants who are not
considered officers or directors of the Company under section 16 of the
Exchange Act, may grant Awards under the Plan to such Employees and
Consultants and may determine all features and conditions of such Awards.
Within the limitations of this Section 2.3, any reference in the Plan to the
Committee shall include such secondary committee.

3.    SHARES AVAILABLE FOR GRANTS.

      3.1.  BASIC LIMITATION.

            Common Shares issued pursuant to the Plan may be authorized but
unissued shares or treasury shares.  The aggregate number of Options, SARs,
Stock Units and Restricted Shares awarded under the Plan shall not exceed (a)
7,500,000 plus (b) the additional Common Shares described in Sections 3.2,
3.3, and 3.4.  The limitations of this Section 3.1 and Section 3.2 shall be
subject to adjustment pursuant to Section 10.

      3.2.  ANNUAL INCREASE IN SHARES.

            As of January 1 of each year, commencing with the year 2000, the
aggregate number of Options, SARs, and Restricted Shares that may be awarded
under the Plan shall automatically increase by a number equal to the lesser of
(a) 5% of the total number of Common Shares then outstanding or (b) 500,000.

      3.3.  ADDITIONAL SHARES.

            If Restricted Shares or Common Shares issued upon the exercise of
Options are forfeited, then such Common Shares shall again become available
for Awards under the Plan.  If Options or SARs are forfeited or terminate for
any other reason before being exercised, then the corresponding Common Shares
shall again become available for Awards under the Plan.  If SARs are
exercised, then only the number of Common Shares (if any) actually issued in
settlement of such SARs shall reduce the number available under Section 3.1
and the balance shall again become available for Awards under the Plan.  The
foregoing notwithstanding, the aggregate number of Common Shares that may be
issued under the Plan upon the exercise of ISOs shall not be increased when
Restricted Shares or other Common Shares are forfeited.

      3.4.  UNISSUED SHARES UNDER PRIOR PLAN.

            Any Common Shares available for issuance under the terms of the
Company's prior stock option plans, if any (the "Prior Plan") may, in the
Committee's discretion, be made available for Awards under the Plan (except
for Awards that are ISOs), provided that the number of Common Shares available
under the Prior Plan is correspondingly reduced.

      3.5.  DIVIDEND EQUIVALENTS.

            Any dividend equivalents paid or credited under the Plan shall not
be applied against the number of Restricted Shares, Options or SARs available
for Awards.

4.    ELIGIBILITY.

      4.1.  INCENTIVE STOCK OPTIONS.

            Only Employees who are common-law employees of the Company, a
Parent or a Subsidiary shall be eligible for the grant of ISOs.  In addition,
an Employee who owns more than 10% of the total combined voting power of all
classes of outstanding stock of the Company or any of its Parents or
Subsidiaries shall not be eligible for the grant of an ISO unless the
requirements set forth in section 422(c)(5) of the Code are satisfied.  Unless
otherwise provided in the Stock Option Agreement, the first $100,000 worth of
optioned shares that are part of an option grant and can first be exercised in
a given year shall be considered ISOs, and the remainder shall be considered
NSOs.  In determining stock ownership of an Employee for any purpose under the
Plan, the rules of Section 424(d) of the Code shall be applied, and the
Committee may rely on representations of fact made to it by the employee and
believed by it to be true.

      4.2.  OTHER GRANTS.

            Only Employees, Independent Directors and Consultants shall be
eligible for the grant of Restricted Shares,  NSOs or SARs.

5.    OPTIONS.

      5.1.  STOCK OPTION AGREEMENT.

            Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company.  Such Option
shall be subject to all applicable terms of the Plan and may be subject to any
other terms that are not inconsistent with the Plan.  The Stock Option
Agreement shall specify whether the Option is an ISO or an NSO.  The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical.  Options may be granted in consideration of a reduction
in the Optionee's other compensation.

      5.2.  NUMBER OF SHARES.

            Each Stock Option Agreement shall specify the number of Common
Shares subject to the Option and shall provide for the adjustment of such
number in accordance with Section 10.  Options granted to any Optionee in a
single fiscal year of the Company shall not cover more than 750,0000 Common
Shares, except that Options granted to a new Employee in the fiscal year of
the Company in which his or her service as an Employee first commences shall
not cover more than 1,000,000 Common Shares.  The limitations set forth in the
preceding sentence shall be subject to adjustment in accordance with Section
10.

      5.3.  EXERCISE PRICE.

            Each Stock Option Agreement shall specify the Exercise Price;
provided that the Exercise Price under an ISO shall in no event be less than
100% of the Fair Market Value of a Common Share on the date of the grant.

      5.4.  EXERCISABILITY AND TERM.

            Each Stock Option Agreement shall specify the date or event when
all or any installment of the Option is to become exercisable.  The Stock
Option Agreement shall also specify the term of the Option; provided that the
term of an ISO shall in no event exceed 10 years from the date of grant.  A
Stock Option Agreement may provide for accelerated exercisability in the event
of the Optionee's death, disability or retirement or other events and may
provide for expiration prior to the end of its term in the event of the
termination of the Optionee's service.  A Stock Option Agreement may provide
for early exercise upon the condition that the Common Shares issued upon
exercise be made subject to a Restricted Stock Agreement with vesting and
other restrictions.  Options may be awarded in combination with SARs, and such
an Award may provide that the Options will not be exercisable unless the
related SARs are forfeited.

      5.5.  MODIFICATION OR ASSUMPTION OF OPTIONS.

            Within the limitations of the Plan, the Committee may modify,
extend or assume outstanding options or may accept the cancellation of
outstanding options (whether granted by the Company or by another issuer) in
return for the grant of new options for the same or a different number of
shares and at the same or a different exercise price.  The foregoing
notwithstanding, no modification of an Option shall, without the consent of
the Optionee, alter or impair his or her rights or obligations under such
Option.

6.    PAYMENT FOR OPTION SHARES.

      6.1.  GENERAL RULE.

            The entire Exercise Price of Common Shares issued upon exercise of
Options shall be payable in cash or cash equivalents at the time when such
Common Shares are purchased, except as follows:  (a) in the case of an ISO
granted under the Plan, payment shall be made only pursuant to the express
provisions of the applicable Stock Option Agreement, but the Stock Option
Agreement may specify that payment may be made in any form(s) described in
this Section 6; or (b) in the case of an NSO, the Committee may at any time
accept payment in any form(s) described in this Section 6.

      6.2.  SURRENDER OF STOCK.

            To the extent that this Section 6.2 is applicable, all or any part
of the Exercise Price may be paid by surrendering, or attesting to the
ownership of, Common Shares that are already owned by the Optionee.  Such
Common Shares shall be valued at their Fair Market Value on the date when the
new Common Shares are purchased under the Plan.  Unless otherwise permitted by
the Committee, the Optionee shall not surrender, or attest to the ownership
of, Common Shares in payment of the Exercise Price if such action would cause
the Company to recognize compensation expense (or additional compensation
expense) with respect to the Option for financial reporting purposes

      6.3.  EXERCISE / SALE.

            To the extent that this Section 6.3 is applicable, all or any part
of the Exercise Price and any withholding taxes may be paid by delivering (on
a form prescribed by the Company) an irrevocable direction to a securities
broker approved by the Company to sell all or part of the Common Shares being
purchased under the Plan and to deliver all or part of the sales proceeds to
the Company.

      6.4.  EXERCISE / PLEDGE.

            To the extent that this Section 6.4 is applicable, all or any part
of the Exercise Price and any withholding taxes may be paid by delivering (on
a form prescribed by the Company) an irrevocable direction to pledge all or
part of the Common Shares being purchased under the Plan to a securities
broker or lender approved by the Company, as security for a loan, and to
deliver all or part of the loan proceeds to the Company.

      6.5.  PROMISSORY NOTE.

            To the extent that this Section 6.5 is applicable, all or any part
of the Exercise Price and any withholding taxes may be paid by delivering (on
a form prescribed by the Company) a full-recourse promissory note.

      6.6.  OTHER FORMS OF PAYMENT.

            To the extent that this Section 6.6 is applicable, all or any part
of the Exercise Price and any withholding taxes may be paid in any other form
that is consistent with applicable laws, regulations and rules.

7.    AUTOMATIC OPTION GRANTS TO INDEPENDENT DIRECTORS.

      7.1.  INITIAL GRANTS.

            Each Independent Director who first becomes a member of the Board
after the Effective Date shall receive a one-time grant of an NSO covering
10,000 Common Shares (subject to adjustment under Section 11).  Such NSO shall
be granted on the date when such Independent Director first joins the Board.
Such NSO shares shall become exercisable as follows:  25% of such NSO shares
shall become exercisable upon the completion of 12 months of service from the
date of grant and 1/48 of the total number of such NSO shares shall become
exercisable upon the completion of each of the next 36 months of service.  An
Independent Director who previously was an Employee shall not receive a grant
under this Section 7.1.

      7.2.  ANNUAL GRANTS.

            Upon the conclusion of each regular annual meeting of the
Company's stockholders held in the year 2000 or thereafter, each Independent
Director who will continue serving as a member of the Board thereafter shall
receive an NSO covering 5,000 Common Shares (subject to adjustment under
Section 11), except that such NSO shall not be granted in the calendar year in
which the same Independent Director received the NSO described in Section 7.1.
NSOs granted under this Section 7.2 shall become exercisable in full on the
first anniversary of the date of grant.  An Independent Director who
previously was an Employee shall be eligible to receive grants under this
Section 7.2.

      7.3.  ACCELERATED EXERCISABILITY.

            All NSOs granted to an Independent Director under this Section 7
shall also become exercisable in full in the event of:  (a) the termination of
such Independent Director's service because of death, total and permanent
disability or retirement at or after age 65; or (b) a Change in Control with
respect to the Company, except as provided in the next following sentence.  If
the Company and the other party to the transaction constituting a Change in
Control agree that such transaction is to be treated as a "pooling of
interests" for financial reporting purposes, and if such transaction in fact
is so treated, then the acceleration of exercisability shall not occur to the
extent that the Company's independent accountants and such other party's
independent accountants separately determine in good faith that such
acceleration would preclude the use of "pooling of interests" accounting.

      7.4.  EXERCISE PRICE.

            The Exercise Price under all NSOs granted to an Independent
Director under this Section 7 shall be equal to 100% of the Fair Market Value
of a Common Share on the date of grant, payable in one of the forms described
in Sections 6.1, 6.2, 6.3 and 6.4.

      7.5.  TERM.

            All NSOs granted to an Independent Director under this Section 7
shall terminate on the earliest of (a) the 10th anniversary of the date of
grant or (b) the date 12 months after the termination of such Independent
Director's service for any reason.

      7.6.  AFFILIATES OF INDEPENDENT DIRECTORS.

            The Committee may provide that the NSOs that otherwise would be
granted to an Independent Director under this Section 7 shall instead be
granted to an affiliate of such Independent Director.  Such affiliate shall
then be deemed to be an Independent Director for purposes of the Plan,
provided that the service-related vesting and termination provisions
pertaining to the NSOs shall be applied with regard to the service of the
Independent Director.

8.    STOCK APPRECIATION RIGHTS.

      8.1.  SAR AGREEMENT.

            Each grant of SAR under the Plan shall be evidenced by a SAR
Agreement between the Optionee and the Company.  Such SAR shall be subject to
all applicable terms of the Plan and may be subject to any other terms that
are not inconsistent with the Plan.  The provisions of the various SAR
Agreements entered into under the Plan need not be identical.  SARs may be
granted in consideration of a reduction in the Optionee's other compensation.

      8.2.  NUMBER OF SHARES.

            Each SAR Agreement shall specify the number of Common Shares to
which the SAR pertains and shall provide for the adjustment of such number in
accordance with Section 10.  SARs granted to any Optionee in a single fiscal
year shall in no event pertain to more than 750,000 Common Shares, except that
SARs granted to a new Employee in the fiscal year of the Company in which his
or her service as an Employee first commences shall not pertain to more than
1,000,000 Common Shares.  The limitations set forth in the preceding sentence
shall be subject to adjustment in accordance with Section 10.

      8.3.  EXERCISE PRICE.

            Each SAR Agreement shall specify the Exercise Price.  A SAR
Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the SAR is outstanding.

      8.4.  EXERCISABILITY AND TERM.

            Each SAR Agreement shall specify the date when all or any
installment of the SAR is to become exercisable.  The SAR Agreement shall also
specify the term of the SAR.  A SAR Agreement may provide for accelerated
exercisability in the event of the Optionee's death, disability or retirement
or other events and may provide for expiration prior to the end of its term in
the event of the termination of the Optionee's service.  SARs may be awarded
in combination with Options, and such an Award may provide that the SARs will
not be exercisable unless the related Options are forfeited.  An SAR may be
included in an ISO only at the time of grant but may be included in an NSO at
the time of grant or thereafter.  An SAR granted under the Plan may provide
that it will be exercisable only in the event of a Change in Control.

      8.5.  EXERCISE OF SARS.

            Upon exercise of an SAR, the Optionee (or any person having the
right to exercise the SAR after his or her death) shall receive from the
Company (a) Common Shares, (b) cash or (c) a combination of Common Shares and
cash, as the Committee shall determine.  The amount of cash and/or the Fair
Market Value of Common Shares received upon exercise of SARs shall, in the
aggregate, be equal to the amount by which the Fair Market Value (on the date
of surrender) of the Common Shares subject to the SARs exceeds the Exercise
Price.  If, on the date when an SAR expires, the Exercise Price under such SAR
is less than the Fair Market Value on such date but any portion of such SAR
has not been exercised or surrendered, then such SAR shall automatically be
deemed to be exercised as of such date with respect to such portion.

      8.6.  MODIFICATION OR ASSUMPTION OF SARS.

            Within the limitations of the Plan, the Committee may modify,
extend or assume outstanding SARs or may accept the cancellation of
outstanding SARs (whether granted by the Company or by another issuer) in
return for the grant of new SARs for the same or a different number of shares
and at the same or a different exercise price.  The foregoing notwithstanding,
no modification of an SAR shall, without the consent of the Optionee, alter or
impair his or her rights or obligations under such SAR.

9.    RESTRICTED SHARES.

      9.1.  RESTRICTED STOCK AGREEMENT.

            Each grant of Restricted Shares under the Plan shall be evidenced
by a Restricted Stock Agreement between the recipient and the Company.  Such
Restricted Shares shall be subject to all applicable terms of the Plan and may
be subject to any other terms that are not inconsistent with the Plan.  The
provisions of the various Restricted Stock Agreements entered into under the
Plan need not be identical.

      9.2.  PAYMENT FOR AWARDS.

            Subject to the following sentence, Restricted Shares may be sold
or awarded under the Plan for such consideration as the Committee may
determine, including (without limitation) cash, cash equivalents,
full-recourse promissory notes, future services and past services.  To the
extent that an Award consists of newly issued Restricted Shares, the
consideration shall consist exclusively of cash, cash equivalents or past
services rendered to the Company (or a Parent or Subsidiary) or, for the
amount in excess of the par value of such newly issued Restricted Shares,
full-recourse promissory notes, as the Committee may determine.

      9.3.  VESTING CONDITIONS.

            Each Award of Restricted Shares may or may not be subject to
vesting.  Vesting shall occur, in full or in installments, upon satisfaction
of the conditions specified in the Restricted Stock Agreement.  A Restricted
Stock Agreement may provide for accelerated vesting in the event of the
Participant's death, disability or retirement or other events.

      9.4.  VOTING AND DIVIDEND RIGHTS.

            The holders of Restricted Shares awarded under the Plan shall have
the same voting, dividend and other rights as the Company's other
stockholders.  A Restricted Stock Agreement, however, may require that the
holders of Restricted Shares invest any cash dividends received in additional
Restricted Shares.  Such additional Restricted Shares shall be subject to the
same conditions and restrictions as the Award with respect to which the
dividends were paid.

10.    PROTECTION AGAINST DILUTION.

       10.1.  ADJUSTMENTS.

            In the event of a subdivision of the outstanding Common Shares, a
declaration of a dividend payable in Common Shares, a declaration of a
dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a combination or consolidation
of the outstanding Common Shares (by reclassification, reverse split or
otherwise) into a lesser number of Common Shares, a recapitalization, a
spin-off or a similar occurrence, the Committee shall make appropriate
adjustments in one or more of:  (a) The number of Options, SARs and Restricted
Shares available for future Awards under Section 3; (b) the limitations set
forth in Sections 5.2 and 8.2; (c) the number of NSOs to be granted to
Independent Directors under Section 7; (d) the number of Common Shares covered
by each outstanding Option and SAR; or (e) the Exercise Price under each
outstanding Option and SAR.  Except as provided in this Section 10, a
Participant shall have no rights by reason of any issue by the Company of
stock of any class or securities convertible into stock of any class, any
subdivision or consolidation of shares of stock of any class, the payment of
any stock dividend or any other increase or decrease in the number of shares
of stock of any class.

      10.2.  DISSOLUTION OR LIQUIDATION.

            To the extent not previously exercised or settled, Options, SARs
and Stock Units shall terminate immediately prior to the dissolution or
liquidation of the Company.

      10.3.  REORGANIZATIONS.

            In the event that the Company is a party to a merger or other
reorganization, outstanding Awards shall be subject to the agreement of merger
or reorganization.  Such agreement shall provide for (a) the continuation of
the outstanding Awards by the Company, if the Company is a surviving
corporation, (b) the assumption of the outstanding Awards by the surviving
corporation or its parent or subsidiary, (c) the substitution by the surviving
corporation or its parent or subsidiary of its own awards for the outstanding
Awards, (d) full exercisability and/or vesting and accelerated expiration of
the outstanding Awards or (e) settlement of the full value of the outstanding
Awards in cash or cash equivalents followed by cancellation of such Awards.

11.   CHANGE IN CONTROL.

      Unless the applicable agreement evidencing the Award provides otherwise,
in the event of any Change in Control, the vesting and exercisability of each
outstanding Award shall automatically accelerate so that each such Award
shall, immediately prior to the effective date of the Change in Control,
become fully exercisable for all of the Common Shares at the time subject to
such Award and may be exercised for any or all of those shares as fully-vested
Common Shares.  Notwithstanding the foregoing, acceleration of vesting and
exercisability shall not occur upon a Change in Control only to the following
extent and under the following circumstances:

(a)    If the Company and the other party to the transaction constituting a
       Change in Control agree that such transaction is to be treated as a
       "pooling of interests" for financial reporting purposes, and if such
       transaction in fact is so treated, then the acceleration of vesting and
       exercisability shall not occur to the extent that the Company's
       independent accountants and such other party's independent accountants
       separately determine in good faith that such acceleration would
       preclude the use of "pooling of interests" accounting;

(b)    The Committee makes a reasonable, good faith determination that the
       Award will remain outstanding, or will be assumed by the surviving
       corporation (or parent or subsidiary thereof), or will be substituted
       with an award with substantially the same terms by the surviving
       corporation (or parent or subsidiary thereof); and

(c)    The Committee may, in its discretion, provide in the Stock Option
       Agreement that, to the extent that acceleration of vesting and
       exercisability does not occur upon the event of any Change in Control
       because of the application of Sections 11(a) or (b), in the event that
       a recipient of an Award experiences an Involuntary Termination within
       twelve (12) months following such Change in Control, the vesting and
       exercisability of each outstanding Award held by such recipient shall
       automatically accelerate, as if the recipient of the Award provided
       another six (6) months of service following such Involuntary
       Termination.  Absent a specific reference in the Stock Option Agreement
       and/or the associated Notice of Option, the acceleration provided in
       this Section 11(c) shall not be applicable.

12.   DEFERRAL OF AWARDS.

      The Committee (in its sole discretion) may permit or require a
Participant to:  (a) have cash that otherwise would be paid to such
Participant as a result of the exercise of an SAR credited to a deferred
compensation account established for such Participant by the Committee as an
entry on the Company's books; (b) have Common Shares that otherwise would be
delivered to such Participant as a result of the exercise of an Option or SAR;
or (c) have Common Shares that otherwise would be delivered to such
Participant as a result of the exercise of an Option or SAR converted into
amounts credited to a deferred compensation account established for such
Participant by the Committee as an entry on the Company's books.  Such amounts
shall be determined by reference to the Fair Market Value of such Common
Shares as of the date when they otherwise would have been delivered to such
Participant.  A deferred compensation account established under this Section
12 may be credited with interest or other forms of investment return, as
determined by the Committee.  A Participant for whom such an account is
established shall have no rights other than those of a general creditor of the
Company.  Such an account shall represent an unfunded and unsecured obligation
of the Company and shall be subject to the terms and conditions of the
applicable agreement between such Participant and the Company.  If the
deferral or conversion of Awards is permitted or required, the Committee (in
its sole discretion) may establish rules, procedures and forms pertaining to
such Awards, including (without limitation) the settlement of deferred
compensation accounts established under this Section 12.

13.   AWARDS UNDER OTHER PLANS.

      The Company may grant awards under other plans or programs.  Such awards
may be settled in the form of Common Shares issued under this Plan.  Such
Common Shares shall be treated for all purposes under the Plan like Common
Shares issued in settlement of an Option and shall, when issued, reduce the
number of Common Shares available under Section 3.

14.   PAYMENT OF DIRECTOR'S FEES IN SECURITIES.

      14.1.  EFFECTIVE DATE.

            No provision of this Section 14 shall be effective unless and
until the Board has determined to implement such provision.

      14.2.  ELECTIONS TO RECEIVE NSOS, RESTRICTED SHARES

            An Independent Director may elect to receive his or her annual
retainer payments and/or meeting fees from the Company in the form of cash,
NSOs, or Restricted Shares or a combination thereof, as determined by the
Board.  Such NSOs and Restricted Shares and Stock Units shall be issued under
the Plan.  An election under this Section 15 shall be filed with the Company
on the prescribed form.

      14.3.  NUMBER AND TERMS OF NSOS, RESTRICTED SHARES

            The number of NSOs or Restricted Shares to be granted to
Independent Directors in lieu of annual retainers and meeting fees that would
otherwise be paid in cash shall be calculated in a manner determined by the
Board.  The terms of such NSOs or Restricted Shares shall also be determined
by the Board.

15.   LIMITATION ON RIGHTS.

      15.1.  RETENTION RIGHTS.

            Neither the Plan nor any Award granted under the Plan shall be
deemed to give any individual a right to remain an Employee, Independent
Director or Consultant.  The Company and its Parents, Subsidiaries and
Affiliates reserve the right to terminate the service of any Employee,
Independent Director or Consultant at any time, with or without cause, subject
to applicable laws, the Company's certificate of incorporation and by-laws and
a written employment agreement (if any).

      15.2.  STOCKHOLDERS' RIGHTS.

            A Participant shall have no dividend rights, voting rights or
other rights as a stockholder with respect to any Common Shares covered by his
or her Award prior to the time when a stock certificate for such Common Shares
is issued or, if applicable, the time when he or she becomes entitled to
receive such Common Shares by filing any required notice of exercise and
paying any required Exercise Price.  No adjustment shall be made for cash
dividends or other rights for which the record date is prior to such time,
except as expressly provided in the Plan.

      15.3.  REGULATORY REQUIREMENTS.

            Any other provision of the Plan notwithstanding, the obligation of
the Company to issue Common Shares under the Plan shall be subject to all
applicable laws, rules and regulations and such approval by any regulatory
body as may be required.  The Company reserves the right to restrict, in whole
or in part, the delivery of Common Shares pursuant to any Award prior to the
satisfaction of all legal requirements relating to the issuance of such Common
Shares, to their registration, qualification or listing or to an exemption
from registration, qualification or listing.

      15.4.  COMPANY RIGHT OF FIRST REFUSAL.

            Any Award granted under the Plan may, in the Committee's
discretion, include a condition that the Common Shares issued pursuant to the
Award be subject to a right of first refusal in favor of the Company in the
event of any subsequently proposed transfer of such shares.

      15.5.  MARKET STANDOFF AGREEMENT.

            In connection with any public offering of the Company's securities
and upon request of the Company or the underwriters managing such underwritten
offering of the Company's securities, each Participant agrees not to sell,
make any short sale of, loan, grant any option for the purchase of, or
otherwise dispose of any Common Shares or Options (other than those included
in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed one
hundred eighty (180) days) from the effective date of such registration as may
be requested by the Company or such managing underwriters and to execute an
agreement reflecting the foregoing as may be requested by the underwriters at
the time of the Company's public offering.

16.   WITHHOLDING TAXES.

      16.1.  GENERAL.

            To the extent required by applicable federal, state, local or
foreign law, a Participant or his or her successor shall make arrangements
satisfactory to the Company for the satisfaction of any withholding tax
obligations that arise in connection with the Plan.  The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

      16.2.  SHARE WITHHOLDING.

            The Committee may permit a Participant to satisfy all or part of
his or her withholding or income tax obligations by having the Company
withhold all or a portion of any Common Shares that otherwise would be issued
to him or her or by surrendering all or a portion of any Common Shares that he
or she previously acquired.  Such Common Shares shall be valued at their Fair
Market Value on the date when they are withheld or surrendered.

17.   FUTURE OF THE PLAN.

      17.1.  TERM OF THE PLAN.

            The Plan, as set forth herein, shall become effective on the
Effective Date.  The Plan shall remain in effect until it is terminated under
Section 17.2, except that no ISOs shall be granted on or after the 10th
anniversary of the later of (a) the date when the Board adopted the Plan or
(b) the date when the Board adopted the most recent increase in the number of
Common Shares available under Section 3 which was approved by the Company's
stockholders.

      17.2.  AMENDMENT OR TERMINATION.

            The Board may, at any time and for any reason, amend or terminate
the Plan.  No Awards shall be granted under the Plan after the termination
thereof.  The termination of the Plan, or any amendment thereof, shall not
affect any Award previously granted under the Plan.

18.    LIMITATION ON PAYMENTS.

      18.1.  SCOPE OF LIMITATION.

            This Section 18 shall apply to an Award only if:  (a) the income
tax professionals most recently selected by the Board (the "CPA's") determine
that the after-tax value of such Award to the Participant, taking into account
the effect of all federal, state and local income taxes, employment taxes and
excise taxes applicable to the Participant (including the excise tax under
section 4999 of the Code), will be greater after the application of this
Section 18 than it was before the application of this Section 18; or (b) the
Committee, at the time of making an Award under the Plan or at any time
thereafter, specifies in writing that such Award shall be subject to this
Section 18 (regardless of the after-tax value of such Award to the
Participant).  If this Section 18 applies to an Award, it shall supersede any
contrary provision of the Plan or of any Award granted under the Plan except
to the extent that an Award specifically refers to, and overrides, this
Section 18.

      18.2.  BASIC RULE.

            In the event that the CPA's determine that any payment or transfer
by the Company under the Plan to or for the benefit of a Participant (a
"Payment") would be nondeductible by the Company for federal income tax
purposes because of the provisions concerning "excess parachute payments" in
section 280G of the Code, then the aggregate present value of all Payments
shall be reduced (but not below zero) to the Reduced Amount.  For purposes of
this Section 18, the "Reduced Amount" shall be the amount, expressed as a
present value, which maximizes the aggregate present value of the Payments
without causing any Payment to be nondeductible by the Company because of
section 280G of the Code.

      18.3.  REDUCTION OF PAYMENTS.

            If the CPA's determine that any Payment would be nondeductible by
the Company because of section 280G of the Code, then the Company shall
promptly give the Participant notice to that effect and a copy of the detailed
calculation thereof and of the Reduced Amount, and the Participant may then
elect, in his or her sole discretion, which and how much of the Payments shall
be eliminated or reduced (as long as after such election the aggregate present
value of the Payments equals the Reduced Amount) and shall advise the Company
in writing of his or her election within 10 days of receipt of notice.  If no
such election is made by the Participant within such 10-day period, then the
Company may elect which and how much of the Payments shall be eliminated or
reduced (as long as after such election the aggregate present value of the
Payments equals the Reduced Amount) and shall notify the Participant promptly
of such election.  For purposes of this Section 18, present value shall be
determined in accordance with section 280G(d)(4) of the Code.  All
determinations made by the CPA's under this Section 18 shall be binding upon
the Company and the Participant and shall be made within 60 days of the date
when a Payment becomes payable or transferable.  As promptly as practicable
following such determination and the elections hereunder, the Company shall
pay or transfer to or for the benefit of the Participant such amounts as are
then due to him or her under the Plan and shall promptly pay or transfer to or
for the benefit of the Participant in the future such amounts as become due to
him or her under the Plan.

      18.4.  OVERPAYMENTS AND UNDERPAYMENTS.

            As a result of uncertainty in the application of section 280G of
the Code at the time of an initial determination by the CPA's hereunder, it is
possible that Payments will have been made by the Company which should not
have been made (an "Overpayment") or that additional Payments which will not
have been made by the Company could have been made (an "Underpayment"),
consistent in each case with the calculation of the Reduced Amount hereunder.
In the event that the CPA's, based upon the assertion of a deficiency by the
Internal Revenue Service against the Company or the Participant which the
CPA's believe has a high probability of success, determine that an Overpayment
has been made, such Overpayment shall be treated for all purposes as a loan to
the Participant which he or she shall repay to the Company, together with
interest at the applicable federal rate provided in section 7872(f)(2) of the
Code; provided, however, that no amount shall be payable by the Participant to
the Company if and to the extent that such payment would not reduce the amount
which is subject to taxation under section 4999 of the Code.  In the event
that the CPA's determine that an Underpayment has occurred, such Underpayment
shall promptly be paid or transferred by the Company to or for the benefit of
the Participant, together with interest at the applicable federal rate
provided in section 7872(f)(2) of the Code.

      18.5.  RELATED CORPORATIONS.

            For purposes of this Section 18, the term "Company" shall include
affiliated corporations to the extent determined by the CPA's in accordance
with section 280G(d)(5) of the Code.

19.   DEFINITIONS.

      19.1.  "Affiliate" means any entity other than a Subsidiary, if the
Company and/or one or more Subsidiaries own not less than 50% of such entity
for which a control relationship exists.

      19.2.  "Award" means any award of an Option, an SAR, or a Restricted
Share under the Plan.

      19.3.  "Board" means the Company's Board of Directors, as constituted
from time to time.

      19.4.  "Cause" means the commission of any act of fraud, embezzlement or
dishonesty by the recipient of the Award, any unauthorized use or disclosure
by such person of confidential information or trade secrets of the Company (or
any Parent or Subsidiary), or any other intentional misconduct by such person
adversely affecting the business or affairs of the Company (or any Parent or
Subsidiary) in a material manner.

      19.5.  "Change in Control" means:  (a) the consummation of a merger or
consolidation of the Company with or into another entity or any other
corporate reorganization, if persons who were not stockholders of the Company
immediately prior to such merger, consolidation or other reorganization own
immediately after such merger, consolidation or other reorganization 50% or
more of the voting power of the outstanding securities of each of (i) the
continuing or surviving entity and (ii) any direct or indirect parent
corporation of such continuing or surviving entity; (b) the sale, transfer or
other disposition of all or substantially all of the Company's assets; (c) a
change in the composition of the Board, as a result of which fewer than 50% of
the incumbent directors are directors who either (i) had been directors of the
Company on the date 24 months prior to the date of the event that may
constitute a Change in Control (the "original directors") or (ii) were
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the aggregate of the original directors who were still
in office at the time of the election or nomination and the directors whose
election or nomination was previously so approved; or (d) any transaction as a
result of which any person is the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
representing at least 50% of the total voting power represented by the
Company's then outstanding voting securities.  For purposes of this Paragraph
(d), the term "person" shall have the same meaning as when used in sections
13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly
by the stockholders of the Company in substantially the same proportions as
their ownership of the common stock of the Company.  A transaction shall not
constitute a Change in Control if its sole purpose is to change the state of
the Company's incorporation or to create a holding company that will be owned
in substantially the same proportions by the persons who held the Company's
securities immediately before such transaction.

      19.6.  "Code" means the Internal Revenue Code of 1986, as amended.

      19.7.  "Committee" means a committee of the Board, as described in
Section 2.

      19.8.  "Common Share" means one share of the common stock of the
Company.

      19.9.  "Company" means Pacific Webworks, Inc., a Nevada corporation.

      19.10. "Consultant" means a consultant or adviser who provides bona fide
services to the Company, a Parent, a Subsidiary or an Affiliate as an
independent contractor.  Service as a Consultant shall be considered
employment for all purposes of the Plan, except as provided in Section 4.1.

      19.11. "Effective Date" means the date of the Plan's adoption by the
Board.

      19.12. "Employee" means a salaried, common-law employee of the Company,
a Parent, a Subsidiary or an Affiliate.

      19.13. "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

      19.14. "Exercise Price," in the case of an Option, means the amount for
which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement.  "Exercise Price," in the
case of an SAR, means an amount, as specified in the applicable SAR Agreement,
which is subtracted from the Fair Market Value of one Common Share in
determining the amount payable upon exercise of such SAR.

      19.15. "Fair Market Value" means the market price of Common Shares,
determined by the Committee in good faith on such basis as it deems
appropriate.  Whenever possible, the determination of Fair Market Value by the
Committee shall be based on the closing prices reported in The Wall Street
Journal.  Such determination shall be conclusive and binding on all persons.

      19.16. "Independent Director" shall mean a member of the Board who is
not an Employee.  Service as an Independent Director shall be considered
employment for all purposes of the Plan, except as provided in Section 4.1.

      19.17. "Involuntary Termination" means the termination of the service of
the recipient of the Award which occurs by reason of:  (1) such recipient's
involuntary dismissal or discharge by the Company for reasons other than
Cause, or (2) such recipient's voluntary resignation following (A) a change in
his or her position with the Company which materially reduces his or her level
of responsibility, (B) a reduction in his or her level of base salary or (C) a
relocation of such recipient's place of employment by more than 35 miles,
provided and only if such change, reduction or relocation is effected by the
Company without the recipient's consent.

      19.18. "ISO" means an incentive stock option described in section 422(b)
of the Code.

      19.19. "NSO" means a stock option not described in sections 422 or 423
of the Code.

      19.20. "Option" means an ISO or NSO granted under the Plan and entitling
the holder to purchase Common Shares.

      19.21. "Optionee" means an individual or estate who holds an Option or
SAR.

      19.22. "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain or has a control relationship with a corporation.
A corporation that attains the status of a Parent on a date after the adoption
of the Plan shall be considered a Parent commencing as of such date.

      19.23. "Participant" means an individual or estate who holds an Award.

      19.24. "Plan" means this Pacific WebWorks, Inc. 2000 Equity Incentive
Plan, as amended from time to time.

      19.25. "Restricted Share" means a Common Share awarded under the Plan.

      19.26. "Restricted Stock Agreement" means the agreement between the
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Share.

      19.27. "SAR" means a stock appreciation right granted under the Plan.

      19.28. "SAR Agreement" means the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to
his or her SAR.

      19.29. "Stock Option Agreement" means the agreement between the Company
and an Optionee that contains the terms, conditions and restrictions
pertaining to his or her Option.

      19.30. "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain or has a control
relationship.  A corporation that attains the status of a Subsidiary on a date
after the adoption of the Plan shall be considered a Subsidiary commencing as
of such date.

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