Document:

Exhibit
4.4

    

    EXECUTION
COPY

    

    ACKNOWLEDGEMENT AND WAIVER
OF ANTI-DILUTION ADJUSTMENTS

    

    This
Acknowledgement and Waiver of Anti-Dilution Adjustments (this “Acknowledgement”),
dated as of August 6, 2010, is made by and among Juma Technology Corp., a
Delaware corporation (the “Company”), Vision
Opportunity Master Fund, Ltd. (“VOMF”),
and Vision Capital Advantage Fund, L.P. (“VCAF”
and together with VOMF, “Vision”).

    

    WHEREAS, the Company is the
issuer of Series B Convertible Preferred Stock (the “Series
B  Preferred Stock”) pursuant to the Certificate of Designation
of the Relative Rights and Preferences of the Series B Convertible Preferred
Stock of Juma Technology Corp. (the “Series B
Certificate of Designation”) filed with the State of Delaware on June 20,
2008;

    

    WHEREAS, the Company and VOMF
have entered into a Note and Warrant Purchase Agreement dated as of August 6,
2010, wherein VOMF purchased from the Company, 10% bridge notes (the “Note”) and
Series A Warrants to purchase up to one hundred percent (100%) of that number of
shares of the Company’s Common Stock into which the Note issued to VOMF would
convert assuming that the principal sum of the Note was converted at fifteen
cents ($0.15) per share of common stock (the “Series A
Warrants”); and

    

    WHEREAS, the Series B
Preferred Stock has certain price protections (the “Price
Protections”) whereby the Conversion Price is adjusted upon the issuance
by the Company of Common Stock Equivalents (as such term is defined in the
respective securities).

    

    NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby agreed
and acknowledged, the parties hereto hereby agree as follows:

    

    1.           As
a result of the issuance of the Series A Warrants, the Company acknowledges that
the Series A Warrants trigger the Price Protections of the Series B Preferred
Stock, provided
however, that VOMF and VCAF, as applicable, hereby waive such Price
Protections.

    

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    IN
WITNESS WHEREOF, this Acknowledgement was duly executed as of the date set forth
above.

    

    
      
        
          
            
              
                	
                        JUMA
      TECHNOLOGY CORP.

                      
	 
      
	
                        By:

                      	 
      
	 
      	
                        Name:
      Anthony M. Servidio

                      
	 
      	
                        Title:
      Chief Executive Officer

                      
	 
      
	
                        VISION
      OPPORTUNITY MASTER FUND, LTD.

                      
	 
      
	
                        By:

                      	 
      
	 
      	
                        Name:

                      
	 
      	
                        Title:

                      
	 
      
	
                        VISION
      CAPITAL ADVANTAGE FUND, L.P.

                      
	 
      
	
                        By:
      VCAF GP, LLC, its General Partner

                      
	 
      
	
                        By:

                      	 
      
	 
      	
                        Name:

                      
	 
      	
                        Title:Exhibit
4.1

     

    CERTIFICATE
OF ELIMINATION

    OF
THE SERIES A CONVERTIBLE PREFERRED STOCK

    OF

    STAAR
SURGICAL COMPANY

     

    Pursuant
to Section 151(g)

    of the
General Corporation Law

    of the
State of Delaware

     

    STAAR
Surgical Company,  a corporation organized and existing under the laws
of the State of Delaware (the “Company”), in accordance with the provisions of
Section 151(g) of the General Corporation Law of the State of Delaware, hereby
certifies as follows:

     

    1. That,
pursuant to Section 151 of the General Corporation Law of the State of Delaware
and authority granted in the Restated Certificate of Incorporation of the
Company, the Board of Directors of the Company, by resolution duly adopted,
authorized the issuance of a series of 1,700,000 shares of Series A
Convertible Preferred Stock, par value $0.01 per share (the “Series A
Preferred Stock”), and established the voting powers, designations, preferences
and relative, participating and other rights, and the qualifications,
limitations or restrictions thereof, and, on December 26, 2007, filed a
Certificate of Designation (the “Series A Certificate of Designation”) with
respect to such Series A Preferred Stock in the office of the Secretary of
State of the State of Delaware.

     

    2. That
no shares of Series A Preferred Stock are outstanding and no shares thereof will
be issued subject to the Series A Certificate of Designation.

     

    3.  That
with regard to the foregoing facts, the Board of Directors of the Company has
adopted the following resolutions:

     

    NOW,
THEREFORE, BE IT RESOLVED:  That that none of the authorized shares of
the Series A Preferred Stock are outstanding, and none shall be issued
pursuant to the Series A Certificate of Designation.

     

    RESOLVED
FURTHER:  That all
matters set forth in the Series A Certificate of Designation are
hereby eliminated from the Restated Certificate of
Incorporation.

     

    RESOLVED
FURTHER:  That the officers of the Company be, and they hereby are,
authorized and directed to file a Certificate of Elimination with the office of
the Secretary of State setting forth a copy of these resolutions, and to take
any and all such further actions as such officers deem necessary or advisable to
carry out the purpose and intent of these resolutions.

     

    4. That,
accordingly, all matters set forth in the Series A Certificate of
Designation be, and they hereby are, eliminated from the Restated Certificate of
Incorporation of the Company.

     

    IN
WITNESS WHEREOF, STAAR Surgical Company has caused this Certificate of
Elimination to be signed by its secretary on this 15th day of June,
2010.

     

    
      
        
          
            	 
      	
                    /s/ Charles Kaufman

                  	 
	 
      	
                    Charles
      Kaufman

                  	 
	 
      	
                    SecretaryExhibit
4.5

     

    STAAR
SURGICAL COMPANY

     

    AMENDED
AND RESTATED

     

    2003
OMNIBUS EQUITY INCENTIVE PLAN

     

    STAAR
Surgical Company, a Delaware corporation (the “Company”), by action of its Board
of Directors, hereby amends and restates in its entirety, effective as of May
19, 2010, the STAAR Surgical Company 2003 Omnibus Equity Incentive Plan (the
“Plan”), with the following provisions:

     

    1.    Purpose and Scope.

     

    (a)  Purpose.    The
purpose of the Plan is to promote and advance the interests of the Company and
its stockholders by enabling the Company and its Affiliates to attract, retain
and motivate officers, directors, employees and independent contractors by
providing for performance-based benefits, and to strengthen the mutuality of
interests between such persons and the Company’s stockholders. The Plan is
designed to meet this intent by offering performance-based stock and cash
incentives and other equity-based incentive awards, thereby providing a
proprietary interest in pursuing the long-term growth, profitability and
financial success of the Company.

     

    (b)  Scope.    The
Plan amends, restates and replaces in their entirety the following outstanding
plans of the Company (the “Restated Plans”):  the STAAR Surgical
Company 2003 Omnibus Equity Incentive Plan as in effect immediately prior to
this amendment and restatement; the 1991 Stock Option Plan of STAAR Surgical
Company; the 1995 STAAR Surgical Company Consultant Stock Plan; the 1996 STAAR
Surgical Company Non-Qualified Stock Plan; the 1998 STAAR Surgical Company Stock
Plan; and the STARR Surgical Company Stock Option Plan and Agreement for Chief
Executive Officer. Each award or grant outstanding under a Restated Plan shall
continue to be governed by the terms of that Restated Plan. Any shares of Common
Stock available for Awards under the Restated Plans, including shares that
become available pursuant to Section 4(b)(iii) of the Plan, shall be
treated as part of the pool of shares of Common Stock available for Awards under
the Plan.

     

    2.    Definitions.    For
purposes of the Plan, the following terms shall have the meanings set forth
below:

     

    “Affiliate”
means any parent or subsidiary (as defined in Sections 424(e) and (f) of the
Code) of the Company, and that qualifies as an eligible issuer of service
recipient stock, as that term is defined in Treasury Regulations Section
1.409A-1(b)(5)(iii)(E).

     

    “APB 25”
means Opinion 25 of the Accounting Principles Board, as amended, and any
successor thereof.

     

    “Award”
means an award or grant made to a Participant under Sections 6 through 10,
inclusive, of the Plan.

     

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

     

    “Change
in Control” means the occurrence of any one (or more) of the following
events:

     

    (i)  Any
person, including a group as defined in Section 13(d)(3) of the Exchange Act,
becomes the beneficial owner of stock of the Company with respect to which
twenty-five percent (25%) or more of the total number of votes for the election
of the Board may be cast;

     

    (ii)  As
a result of, or in connection with, any cash tender offer, exchange offer,
merger or other business combination, sale of assets or contested election, or
combination of the foregoing, persons who were directors of the Company
immediately prior to such event shall cease to constitute a majority of the
Board;

     

    (iii)  The
stockholders of the Company shall approve an agreement providing either for a
transaction in which the Company will cease to be an independent publicly owned
corporation or for a sale or other disposition of all or substantially all the
assets of the Company; or

     

    (iv)  acquisition
in a single or series of related transactions, including without limitation a
tender offer or exchange offer, by any person or related group of persons (other
than the Company or by a Company-sponsored employee benefit plan), of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Company’s outstanding securities.

     

    Notwithstanding
the foregoing, the formation of a holding company for the Company in which the
stockholdings of the holding company after its formation are substantially the
same as for the Company immediately prior to the holding company formation does
not constitute a Change in Control for purposes of the Plan.

     

    “Code”
means the Internal Revenue Code of 1986, as amended and in effect from time to
time, or any successor thereto, together with rules, regulations and
authoritative interpretations promulgated thereunder.

    

    
      
        
           

        

        
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    “Committee”
means the committee of the Board that is provided for in Section 3 of the
Plan.

     

    “Common
Stock” means the common stock of the Company or any security of the Company
issued in substitution, exchange or lieu thereof.

     

    “Company”
means STAAR Surgical Company, a Delaware corporation.

     

    “Consultant”
means any natural person who performs bona fide services for the Company or an
Affiliate as a consultant or advisor, excluding Employees and Non-Employee
Directors.

     

    “Date of
Grant” means the effective date as of which the Committee (or the Board, as the
case may be) grants an Award to a Participant.

     

    “Disability”
means total and permanent disability as defined in Section 22(e)(3) of the
Code.

     

    “Employee”
means any individual who is a common-law employee of the Company or an
Affiliate.

     

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended and in effect from
time to time, or any successor thereto, together with rules, regulations and
authoritative interpretations promulgated thereunder.

     

    “Fair
Market Value” means the fair market value per share of the Common Stock
determined in accordance with Treasury Regulations Section 1.409A-1(b)(5)(iv),
and to the extent permitted under such Regulations shall be on any given date,
the closing price for the Common Stock on such date, or, if the Common Stock was
not traded on such date, on the next preceding day on which the Common Stock was
traded, determined in accordance with the following rules:

     

    (i)  If
the Common Stock is admitted to trading or listing on The Nasqaq Stock Market or
any other national securities exchange registered under the Exchange Act, the
closing price for any day shall be the last reported sale price, or in the case
no such reported sale takes place on such date, the average of the last reported
bid and ask prices, in either case on the principal national securities exchange
on which the Common Stock is admitted to trading or listed;

     

    (ii)  If
the Common Stock is not listed or admitted to trading on any national securities
exchange, the last sale price of the Common Stock on the OTC Bulletin Board or,
in the case no such reported sale takes place, the average of the closing bid
and ask prices on such date; or

     

    (iii)  If
the Common Stock is not listed or admitted to trading on any national securities
exchange and is not quoted on the OTC Bulletin Board, the average of the closing
bid and ask prices on such date as furnished by any member of the Financial
Industry Regulatory Authority, selected from time to time by the Committee for
that purpose.

     

    “FASB”
means the Financial Accounting Standards Board.

     

    “Incentive
Stock Option” means any Stock Option granted pursuant to the provisions of
Section 6 of the Plan that is intended to be and is specifically designated as
an “incentive stock option” within the meaning of Section 422 of the
Code.

     

    “Mature
Shares” shall mean Shares that had been held by the Optionee for a meaningful
period of time such as six months or such other period of time that is
consistent with FASB’s interpretation of APB 25.

     

    “Non-Employee
Director” means a non-Employee member of the Board.

     

    “Non-Qualified
Stock Option” means any Stock Option granted pursuant to the provisions of
Section 6 of the Plan that is not an Incentive Stock Option.

     

    “Optioned
Stock” means the shares of Common Stock that are subject to a Stock
Option.

     

    “Participant”
means an Employee, Non-Employee Director, or Consultant of the Company or an
Affiliate who is granted an Award under the Plan.

     

    “Performance
Award” means an Award granted pursuant to the provisions of Section 9 of the
Plan, the vesting of which is contingent on the attainment of specified
performance criteria.

     

    “Performance
Share Grant” means an Award of units representing shares of Common Stock granted
pursuant to the provisions of Section 9 of the Plan.

     

    “Performance
Unit Grant” means an Award of monetary units granted pursuant to the provisions
of Section 9 of the Plan.

     

    “Plan”
means this Amended and Restated STAAR Surgical Company 2003 Omnibus Equity
Incentive Plan, as set forth herein and as it may be hereafter amended and from
time to time and in effect.

    

    
      
        
           

        

        
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    “Qualified
Note” means a recourse note, with a market rate of interest, that may, at the
discretion of the Committee, be secured by Optioned Stock or
otherwise.

     

    “Restricted
Award” means an Award granted pursuant to the provisions of Section 8 of the
Plan.

     

    “Restricted
Stock Grant” means an Award of shares of Common Stock granted pursuant to the
provisions of Section 8 of the Plan.

     

    “Restricted
Unit Grant” means an Award of units representing shares of Common Stock granted
pursuant to the provisions of Section 8 of the Plan.

     

    “Service”
means the performance of services for the Company (or any Affiliate) by an
Employee, Non-Employee Director, or Consultant, as determined by the Committee
in its sole discretion. Service shall not be considered interrupted in the case
of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company and any Affiliate, or any
successor. A leave of absence approved by the Company shall include sick leave,
military leave, or any other personal leave approved by an authorized
representative of the Company. For purposes of Incentive Stock Options, no such
leave may exceed ninety (90) days, unless reemployment upon expiration of such
leave is guaranteed by statute or contract, including Company policies. If
reemployment upon expiration of a leave of absence approved by the Company is
not so guaranteed, on the ninety-first (91st) day of such leave any Incentive
Stock Option held by the Optionee shall cease to be treated as an Incentive
Stock Option and shall be treated for tax purposes as a Non-Qualified Stock
Option.

     

    “Stock
Appreciation Right” means an Award to benefit from the appreciation of Common
Stock granted pursuant to the provisions of Section 7 of the Plan.

     

    “Stock
Option” means an Award to purchase shares of Common Stock granted pursuant to
the provisions of Section 6 of the Plan.

     

    “Subsidiary”
means any corporation or entity which is a subsidiary of the Company within the
meaning of Section 424(f) of the Code and that qualifies as an eligible issuer
of service recipient stock, as that term is defined in Treasury Regulations
Section 1.409A-1(b)(5)(iii)(E).

     

    “Ten
Percent Stockholder” means a person who owns stock (after taking into account
the constructive ownership rules of Section 424(d) of the Code) possessing more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company (or any Affiliate).

     

    “Termination
Date” means the date on which a Participant’s Service terminates, as determined
by the Committee in its sole discretion.

     

    3.    Administration.

     

    (a)  The
Plan shall be administered by a committee appointed by the Board. The Committee
shall be comprised solely of not less than two persons who are “outside
directors” within the meaning of Section 162(m)(4)(C) of the Code and
“non-employee directors” within the meaning of Rule 16b-3 of the Exchange Act.
Members of the Committee shall serve at the pleasure of the Board and the Board
may from time to time remove members from, or add members to, the Committee. No
person who is not an “outside director” within the meaning of Section
162(m)(4)(C) of the Code and a “non-employee director” within the meaning of
Rule 16b-3 of the Exchange Act may serve on the Committee. Appointment to the
Committee of any person who is not an “outside director” and a “non-employee
director” shall automatically be null and void, and any person on the Committee
who ceases to be an “outside director” and a “non-employee director” shall
automatically and without further action cease to be a member of the
Committee.

     

    (b)  A
majority of the members of the Committee shall constitute a quorum for the
transaction of business. Action approved in writing by a majority of the members
of the Committee then serving shall be as effective as if the action had been
taken by unanimous vote at a meeting duly called and held.

     

    (c)  The
Committee is authorized to construe and interpret the Plan, to promulgate,
amend, and rescind rules and procedures relating to the implementation of the
Plan, and to make all other determinations necessary or advisable for the
administration of the Plan. Any determination, decision, or action of the
Committee in connection with the construction, interpretation, administration,
or application of the Plan shall be binding upon all Participants and any person
claiming under or through any Participant. Although the Committee is anticipated
to make certain Awards that constitute “qualified performance-based
compensation” within the meaning of Section 162(m)(4)(C) of the Code and
Treasury Regulation Section 1.162-27(e), the Committee is also expressly
authorized to make Awards that do not constitute “qualified performance-based
compensation” within the meaning of those provisions. By way of example, and not
by way of limitation, the Committee, in its sole and absolute discretion, may
issue an Award that is not based on a performance goal, as set forth in (i)
below, but is based solely on continued service to the Company.

    

    
      
        
           

        

        
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    (d)  The
Committee may employ or retain persons other than members of the Committee to
assist the Committee to carry out its responsibilities under such conditions and
limitations as it may prescribe, except that the Committee may not delegate its
authority with regard to selection for participation in and the granting of
Awards to persons subject to Section 16 of the Exchange Act or with regard to
any of its duties under Section 162(m) of the Code necessary for awards under
the Plan to constitute “qualified performance-based compensation” within the
meaning of Section 162(m)(4)(C) of the Code and Treasury Regulation Section
1.162-27(e).

     

     (e)  The
Committee is expressly authorized to make such modifications to the Plan as are
necessary to effectuate the intent of the Plan as a result of any changes in the
income tax, accounting, or securities law treatment of Participants and the
Plan.

     

    (f)  The
Company shall effect the granting of Awards under the Plan in accordance with
the determinations made by the Committee, by execution of instruments in writing
in such form as approved by the Committee.

     

    (g)  The
Committee may not increase an Award once granted, although it may grant
additional Awards to the same Participant.

     

    (h)  The
Committee shall keep the Board informed as to its actions and make available to
the Board its books and records. Although the Committee has the authority to
establish and administer the Plan, the Board reserves the right at any time to
abolish the Committee and administer the Plan itself.

     

    (i)  In
the case of an Award that is intended to constitute “qualified performance-based
compensation” within the meaning of Section 162(m)(4)(C) of the Code and
Treasury Regulation Section 1.162-27(e), the Committee shall establish in
writing at the time of making the Award the business criterion or criteria that
must be satisfied for payment pursuant to the Award and the amount payable upon
satisfaction of those standards. Those standards are also referred to herein as
performance goals. Such criterion or criteria shall be established prior to the
Participant rendering the services to which they relate and while the outcome is
substantially uncertain or at such other time as is permitted under Treasury
Regulations Section 1.162-27(e)(2). In carrying out these duties, the Committee
shall use objective written standards for establishing both the performance goal
and the amount of compensation such that a third party with knowledge of the
relevant facts would be able to determine whether and to what extent the goal
has been satisfied and the amount of compensation payable. The Committee shall
provide a copy the document setting forth such standards to the affected
Participant and shall retain such written material in its permanent books and
records.

     

    (j)  In
the case of remuneration that is intended to constitute “qualified
performance-based compensation” within the meaning of Section 162(m)(4)(C) of
the Code and Treasury Regulation Section 1.162-27(e), the Committee and the
Board shall disclose to the stockholders of the Company the material terms under
which such remuneration is to be paid under the Plan, and shall seek approval of
the stockholders by a majority vote in a separate stockholder vote before
payment of such remuneration. For these purposes, the material terms include the
individuals (or class of individuals) eligible to receive such compensation, a
description of the business criterion or criteria on which the performance goal
is based, either the maximum amount of the compensation to be paid thereunder or
the formula used to calculate the amount of compensation if the performance goal
is attained, and such other terms as required under Code Section 162(m)(4)(C)
and the Treasury Regulations promulgated thereunder, determined from time to
time. The foregoing actions shall be undertaken in conformity with the rules of
Code Section 162(m)(4)(C)(ii) and Treasury Regulations promulgated thereunder.
Such remuneration shall not be payable under the Plan in the absence of such an
approving stockholder vote. In the case of remuneration that is not intended to
constitute “qualified performance-based compensation” within the meaning of
Section 162(m)(4)(C) of the Code and Treasury Regulation Section 1.162-27(e),
the Committee and the Board shall make such disclosures to and seek such
approval from the stockholders of the Company as they reasonably determine are
required by law.

     

    (k)  To
the extent required under Code Section 162(m)(4)(C) and the regulations
promulgated thereunder, before any payment of remuneration under the Plan, the
Committee must certify in writing that the performance goals and any other
material terms of the Award were in fact satisfied. Such certification shall be
kept with the permanent books and records of the Committee, and the Committee
shall provide the affected Participant with a copy of such
certification.

    

    
      
        
           

        

        
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    (l)  The Committee shall use
its good faith best efforts to comply with the requirements of
Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder
for Awards that are intended  to constitute “qualified
performance-based compensation,” but shall have no liability to the Company or
any recipient in the event one or more Awards do not so
qualify.

     

    4.    Duration of and Common Stock Subject
to the Plan.

     

    (a)  Term.    The
Plan, as amended and restated hereby, shall become effective as of May 19, 2010,
the date of its adoption by the Board, subject to ratification by the
stockholders of the Company within twelve (12) months after the effective date.
In the event that the stockholders of the Company do not ratify the Plan (as
amended and restated hereby) within twelve (12) months after the effective date,
any Awards granted pursuant to the Plan shall be rescinded automatically. Unless
sooner terminated by the Board, the Plan shall continue until May 18, 2020, the
day before the tenth (10th) anniversary of the effective date of the Plan (as
amended and restated hereby), when the Plan shall terminate, and no Awards may
be granted under the Plan thereafter. The termination of the Plan shall not
affect the Awards that are outstanding on the termination date.

     

    (b)  Shares of Common Stock Subject to
the Plan.    The maximum total number of shares of
Common Stock with respect to which aggregate stock Awards may be granted under
the Plan (including shares of Common Stock subject to outstanding Awards under
the Restated Plans) shall be eight million, five hundred thousand
(8,500,000).

     

    (i)  All
of the amounts stated in this Paragraph (b) are subject to adjustment as
provided in Section 15 below.

     

    (ii)  For
the purpose of computing the total number of shares of Common Stock available
for Awards under the Plan, there shall be counted against the foregoing
limitations the number of shares of Common Stock subject to issuance upon
exercise or used for payment or settlement of Awards.

     

    (iii)  If
any Awards are forfeited, terminated, expire unexercised, settled or paid in
cash in lieu of stock or exchanged for other Awards, the shares of Common Stock
which were theretofore subject to such Awards shall again be available for
Awards under the Plan to the extent of such forfeiture or expiration of such
Awards.

     

    (c)  Source of Common
Stock.    Common Stock which may be issued under the
Plan may be either authorized and unissued stock or issued stock that has been
reacquired by the Company. No fractional shares of Common Stock shall be issued
under the Plan.

     

    5.    Eligibility.    Incentive
Stock Options may only be granted to Employees of the Company or a Subsidiary.
Employees, Non-Employee Directors, and Consultants of the Company or a
Subsidiary are eligible to receive Non-Qualified Stock Options, Stock
Appreciation Rights, Restricted Awards, Performance Awards and other Awards
under the Plan.

     

    6.    Stock
Options.    Stock options granted under the Plan may
be in the form of Incentive Stock Options or Non-Qualified Stock Options
(collectively referred to as “Stock Options”). Stock Options shall be subject to
written Stock Option agreements containing the terms and conditions set forth
below and such additional terms and conditions, not inconsistent with the
express provisions of the Plan, as the Committee shall deem desirable in its
sole and absolute discretion.

     

    (a)  Grant.    Stock
Options shall be granted under the Plan on such terms and conditions not
inconsistent with the provisions of the Plan and pursuant to written agreements
with the Participants in such form or forms as the Committee may from time to
time approve in its sole and absolute discretion. The terms of individual Stock
Option agreements need not be identical. Each Stock Option agreement shall state
specifically whether it is intended to be an Incentive Stock Option agreement or
a Non-Qualified Stock Option agreement. Stock Options may be granted alone or in
addition to other Awards under the Plan. No person may be granted in any
calendar year options to purchase more than two hundred thousand (200,000)
shares of Common Stock (subject to adjustment pursuant to Section 15 below). The
foregoing sentence is an annual limitation on grants and not a cumulative
limitation.

     

    (b)  Exercise
Price.    Except as otherwise provided for in
Paragraph (f) below, the exercise price per share of Common Stock purchasable
under a Stock Option shall be determined by the Committee at the time of grant
but shall not be less than one hundred percent (100%) of the Fair Market Value
of the stock subject to the option on the date the option is
granted.

     

    (c)  Option
Term.    The term of each Stock Option shall be fixed
by the Committee. However, the term of any Stock Option shall not exceed ten
(10) years from the Date of Grant of such Stock Option.

    

    
      
        
           

        

        
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    (d)  Exercisability.    A
Stock Option shall be exercisable at such time or times and subject to such
terms and conditions as shall be determined by the Committee at the Date of
Grant and set forth in the written Stock Option agreement. A written Stock
Option agreement may, if permitted pursuant to its terms, become exercisable in
full upon the occurrence of events selected by the Committee that are beyond the
control of the Participant (including, but not limited to, a Change in
Control).

     

    (e)  Method of
Exercise.    A Stock Option may be exercised, in
whole or in part, by giving written notice of exercise to the Committee
specifying the number of shares of Common Stock to be purchased. Such notice
shall be accompanied by payment in full of the exercise price (i) in cash or
(ii) if acceptable to the Committee, in shares of Common Stock already owned by
the Participant or a Qualified Note. The Committee may also permit Participants,
either on a selective or aggregate basis, to simultaneously exercise Stock
Options and sell the shares of Common Stock thereby acquired, pursuant to a
brokerage or similar arrangement, approved in advance by the Committee, and use
the proceeds from such sale as payment of part or all of the exercise price of
such shares; provided, that such payment would not cause the Company to
recognize compensation expense for financial reporting purposes or to violate
Section 402 of the Sarbanes-Oxley Act of 2002, as determined by the Committee in
its sole discretion.

     

    (f)  Special Rules for Incentive Stock
Options.    The terms specified below shall be
applicable to all Incentive Stock Options. Stock Options which are specifically
designated as Non-Qualified Stock Options when issued under the Plan shall not
be subject to the terms of this Paragraph.

     

    (i)  Ten Percent
Stockholder.    If any Employee to whom an Incentive
Stock Option is granted is a Ten Percent Stockholder, then the exercise price of
the Incentive Stock Option shall not be less than one hundred ten percent (110%)
of the Fair Market Value of the Common Stock on the Date of Grant of such
Incentive Stock Option, and the term of the Incentive Stock Option shall not
exceed five (5) years from the Date of Grant of such option.

     

    (ii)  Dollar
Limitation.    The aggregate Fair Market Value of the
Optioned Stock (determined as of the Date of Grant of each Stock Option) with
respect to Stock Options granted to any Employee under the Plan (or any other
option plan of the Company or any Affiliate) that may for the first time become
exercisable as Incentive Stock Options during any one calendar year shall not
exceed one hundred thousand dollars ($100,000). To the extent the Employee holds
two or more such Stock Options which become exercisable for the first time in
the same calendar year, the foregoing limitation on the exercisability of such
Stock Options as Incentive Stock Options shall be applied in the order in which
such Stock Options are granted. Any Stock Options in excess of such limitation
shall automatically be treated as Non-Qualified Stock Options.

     

    7.    Stock Appreciation
Rights.    The grant of Stock Appreciation Rights
under the Plan shall be subject to the following terms and conditions and such
additional terms and conditions, not inconsistent with the express provisions of
the Plan, as the Committee shall deem desirable in its sole and absolute
discretion. The terms of each Stock Appreciation Right granted shall be set
forth in a written agreement between the Company and the Participant receiving
such grant. The terms of such agreements need not be identical.

     

    (a)  Stock Appreciation
Rights.    A Stock Appreciation Right is an Award
determined by the Committee entitling a Participant to receive an amount equal
to the excess, if any, of the Fair Market Value of a share of Common Stock on a
date concluding a measuring period fixed by the Committee upon granting the
Stock Appreciation Right, over the Fair Market Value of a share of Common Stock
on the Date of Grant of the Stock Appreciation Right, multiplied by the number
of shares of Common Stock subject to the Stock Appreciation Right. No Stock
Appreciation Rights granted in any calendar year to any person may be measured
by an amount of shares of Common Stock in excess of two hundred thousand
(200,000) shares, subject to adjustment under Section 15 below. The foregoing
sentence is an annual limitation on grants and not a cumulative
limitation.

     

    (b)  Grant.    A
Stock Appreciation Right may be granted in addition to or completely
independently of any other Award under the Plan. Upon grant of a Stock
Appreciation Right, the Committee shall select and inform the Participant
regarding the number of shares of Common Stock subject to the Stock Appreciation
Right and the date that constitutes the close of the measuring
period.

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    (c)  Measuring
Period.    A Stock Appreciation Right shall accrue in
value from the Date of Grant over a time period established by the Committee. In
the written Stock Appreciation Right agreement, the Committee may also provide
(but is not required to provide) that a Stock Appreciation Right shall be
automatically payable on one or more specified dates prior to the normal end of
the measuring period upon the occurrence of events selected by the Committee
(including, but not limited to, a Change in Control) that are beyond the control
of the Participant. The Committee may provide (but is not required to provide)
in the Stock Appreciation Right agreement that in the case of a cash payment
such acceleration in payment shall also be subject to discounting of the payment
to reasonably reflect the time value of money using any reasonable discount rate
selected by the Committee in accordance with Treasury Regulations under Code
Section 162(m).

     

    (d)  Form of
Payment.    Payment pursuant to a Stock Appreciation
Right may be made, as the Committee shall determine in its sole and absolute
discretion:  (i) in cash, (ii) in shares of Common Stock or (iii)
in any combination of the above. The Committee may elect to make this
determination either at the time the Stock Appreciation Right is granted, at the
time of payment or at any time between such dates, but any Stock Appreciation
Right paid upon or subsequent to the occurrence of a Change in Control shall be
paid in cash.

     

    8.    Restricted
Awards.    Restricted Awards granted under the Plan
may be in the form of either Restricted Stock Grants or Restricted Unit Grants.
Restricted Awards shall be subject to the following terms and conditions and
such additional terms and conditions, not inconsistent with the express
provisions of the Plan, as the Committee shall deem desirable in its sole and
absolute discretion and that are in compliance with Code Section 409A and the
applicable Treasury Regulations promulgated thereunder. The Restricted Awards
shall be pursuant to a written agreement executed both by the Company and the
Participant. The terms of such written agreements need not be
identical.

     

    (a)  Restricted Stock
Grants.    A Restricted Stock Grant is an Award of
shares of Common Stock transferred to a Participant subject to such terms and
conditions as the Committee deems appropriate, as set forth in Paragraph (d)
below.

     

    (b)  Restricted Unit
Grants.    A Restricted Unit Grant is an Award of
units (with each unit having a value equivalent to one share of Common Stock)
granted to a Participant subject to such terms and conditions as the Committee
deems appropriate, including, without limitation, the requirement that the
Participant forfeit all or a portion of such units upon termination of Service
for specified reasons within a specified period of time, and restrictions on the
sale, assignment, transfer or other disposition of such units.

     

    (c)  Grants of
Awards.    Restricted Awards may be granted under the
Plan in such form and on such terms and conditions as the Committee may from
time to time approve. Restricted Awards may be granted alone or in addition to
other Awards under the Plan. Subject to the terms of the Plan, the Committee
shall determine the number of Restricted Awards to be granted to a Participant
and the Committee may impose different terms and conditions (including
performance goals) on any particular Restricted Award made to any Participant.
Each Participant receiving a Restricted Stock Grant shall be issued a stock
certificate in respect of such shares of Common Stock. Such certificate shall be
registered in the name of such Participant, shall be accompanied by a stock
power duly executed by such Participant, and shall bear an appropriate legend
referring to the terms, conditions and restrictions applicable to such Award.
The certificate evidencing the shares shall be held in custody by the Company
until the restrictions imposed thereon shall have lapsed or been
removed.

     

    (d)  Restriction
Period.    Restricted Awards shall provide that in
order for a Participant to vest in such Awards, the Participant must
continuously provide Services, subject to relief for specified reasons, for such
period as the Committee may designate at the time of the Award (“Restriction
Period”). If the Committee so provides in the written agreement with the
Participant, a Restricted Award may also be subject to satisfaction of such
performance goals as are set forth in such agreement. During the Restriction
Period, a Participant may not sell, assign, transfer, pledge, encumber, or
otherwise dispose of shares of Common Stock received under a Restricted Stock
Grant. The Committee, in its sole discretion, may provide for the lapse of
restrictions during the Restriction Period upon the occurrence of events
selected by the Committee that are beyond the control of the Participant
(including, but not limited to, a Change in Control or, if necessary to comply
with Code Section 409A, an event described in Code Section 409A(a)(2)(A)(v)).
The Committee may provide (but is not required to provide) in the written
agreement with the Participant that in the case of a cash payment such
acceleration in payment shall also be subject to discounting of the payment to
reasonably reflect the time value of money using any reasonable discount rate
selected by the Committee in accordance with Treasury Regulations under Code
Section 162(m). Upon expiration of the applicable Restriction Period (or lapse
of restrictions during the Restriction Period where the restrictions lapse in
installments or by action of the Committee), the Participant shall be entitled
to receive his or her Restricted Award or portion thereof, as the case may
be.

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

     

    (e)  Payment of
Awards.    A Participant who receives a Restricted
Stock Grant shall be paid solely by release of the restricted stock at the
termination of the Restriction Period (whether in one payment, in installments
or otherwise). A Participant shall be entitled to receive payment for a
Restricted Unit Grant (or portion thereof) in an amount equal to the aggregate
Fair Market Value of the shares of Common Stock covered by such Award upon the
expiration of the applicable Restriction Period. Payment in settlement of a
Restricted Unit Grant shall be made as soon as practicable following the
conclusion of the specified Restriction Period, as the Committee shall determine
in its sole and absolute discretion:  (i) in cash, (ii) in shares of
Common Stock equal to the number of units granted under the Restricted Unit
Grant with respect to which such payment is made, or (iii) in any combination of
the above. The Committee may elect to make this determination either at the time
the Award is granted, at the time of payment or at any time in between such
dates. 

     

    (f)  Rights as a
Stockholder.    A Participant shall have, with
respect to the shares of Common Stock received under a Restricted Stock Grant,
all of the rights of a stockholder of the Company, including the right to vote
the stock, and the right to receive any cash dividends. Such cash dividends
shall be withheld, however, until their release upon lapse of the restrictions
under the Restricted Award. Stock dividends issued with respect to the shares
covered by a Restricted Stock Grant shall be treated as additional shares under
the Restricted Stock Grant and shall be subject to the same restrictions and
other terms and conditions as apply to shares under the Restricted Stock Grant
with respect to which the dividends are issued.

     

    9.    Performance
Awards.    Performance Awards granted under the Plan
may be in the form of either Performance Share Grants or Performance Unit
Grants. Performance Awards shall be subject to written agreements which shall
contain the terms and conditions set forth below and such additional terms and
conditions, not inconsistent with the express provisions of the Plan, as the
Committee shall deem desirable in its sole and absolute discretion and that are
in compliance with Code Section 409A and the applicable Treasury Regulations
promulgated thereunder. Such agreements need not be identical.

     

    (a)  Performance Share
Grants.    A Performance Share Grant is an Award of
units (with each unit equivalent in value to one share of Common Stock) granted
to a Participant subject to such terms and conditions as the Committee deems
appropriate, including, without limitation, the requirement that the Participant
forfeit such units (or a portion of such units) in the event certain performance
criteria are not met within a designated period of time.

     

    (b)  Performance Unit
Grants.    A Performance Unit Grant is an Award of
units (with each unit representing such monetary amount as designated by the
Committee) granted to a Participant subject to such terms and conditions as the
Committee deems appropriate, including, without limitation, the requirement that
the Participant forfeit such units (or a portion of such units) in the event
certain performance criteria are not met within a designated period of
time.

     

    (c)  Grants of
Awards.    Performance Awards shall be granted under
the Plan pursuant to written agreements with the Participant in such form as the
Committee may from time to time approve. Performance Awards may be granted alone
or in addition to other Awards under the Plan. Subject to the terms of the Plan,
the Committee shall determine the number of Performance Awards to be granted to
a Participant and the Committee may impose different terms and conditions on any
particular Performance Award made to any Participant.

     

    (d)  Performance Goals and Performance
Periods.    Performance Awards shall provide that, in
order for a Participant to vest in such Awards, the Company must achieve certain
performance goals (“Performance Goals”) over a designated performance period
selected by the Committee (“Performance Period”). The Performance Goals and
Performance Period shall be established by the Committee, in its sole and
absolute discretion. The Committee shall establish Performance Goals for each
Performance Period before the commencement of the Performance Period and while
the outcome is substantially uncertain or at such other time as is permitted
under Treasury Regulations Section 1.162-27(e)(2). The Committee shall also
establish a schedule or schedules for such Performance Period setting forth the
portion of the Performance Award which will be earned or forfeited based on the
degree of achievement of the Performance Goals actually achieved or exceeded. In
setting Performance Goals, the Committee may use such measures as return on
equity, earnings growth, revenue growth, comparisons to peer companies, or such
other measure or measures of performance in such manner as it deems
appropriate.

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    (e)  Payment of
Awards.    In the case of a Performance Share Grant,
the Participant shall be entitled to receive payment for each unit earned in an
amount equal to the aggregate Fair Market Value of the shares of Common Stock
covered by such Award as of the end of the Performance Period. In the case of a
Performance Unit Grant, the Participant shall be entitled to receive payment for
each unit earned in an amount equal to the dollar value of each unit times the
number of units earned. The Committee, pursuant to the written agreement with
the Participant, may make such Performance Awards payable in whole or in part
upon the occurrence of events selected by the Committee that are beyond the
control of the Participant (including, but not limited to, a Change in Control
or, if necessary to comply with Code Section 409A, an event described in Code
Section 409A(a)(2)(A)(v)). The Committee may provide (but is not required to
provide) in the written agreement with the Participant that, in the case of a
cash payment, acceleration in payment of a Performance Award shall also be
subject to discounting to reasonably reflect the time value of money using any
reasonable discount rate selected by the Committee in accordance with Treasury
Regulations under Code Section 162(m). Payment in settlement of a Performance
Award shall be made as soon as practicable following the conclusion of the
Performance Period, as the Committee may determine in its sole and absolute
discretion:  (i) in cash, (ii) in shares of Common Stock, or (iii) in
any combination of the above. The Committee may elect to make this determination
either at the time the Award is granted, at the time of payment, or at any time
between such dates.

     

    10.    Other Stock-Based and Combination
Awards.

     

    (a)  Subject
to compliance with Code Section 409A, the Committee may grant other Awards under
the Plan pursuant to which Common Stock is or may in the future be acquired, or
Awards denominated in stock units, including ones valued using measures other
than market value. Such other stock-based grants may be granted either alone or
in addition to any other type of Award granted under the Plan.

     

    (b)  The
Committee may also grant Awards under the Plan in combination with other Awards
or in exchange of Awards, or in combination with or as alternatives to grants or
rights under any other employee plan of the Company, including the plan of any
acquired entity.

     

    (c)  Subject
to the provisions of the Plan, the Committee shall have authority to determine
the individuals to whom and the time or times at which the Awards shall be made,
the number of shares of Common Stock to be granted or covered pursuant to such
Awards, and any and all other conditions and/or terms of the
Awards.

     

    11.    Deferral
Elections.    Subject to compliance with Code Section
409A (and in particular, Code Section 409A(a)(4)), the Committee may permit a
Participant to elect to defer his or her receipt of the payment of cash or the
delivery of shares of Common Stock that would otherwise be due to such
Participant by virtue of the exercise, earn out or vesting of an Award made
under the Plan. If any such election is permitted, the Committee shall establish
rules and procedures for such payment deferrals, including the possible (a)
payment or crediting of reasonable interest on such deferred amounts credited in
cash, and (b) the payment or crediting of dividend equivalents in respect of
deferrals credited in units of Common Stock. Neither the Company nor the
Committee shall be responsible to any person in the event that the payment
deferral does not result in deferral of income for tax purposes.

     

    12.    Dividend
Equivalents.    Awards of Stock Options, Stock
Appreciation Rights, Restricted Unit Grants, Performance Share Grants, and other
stock-based Awards may, in the sole and absolute discretion of the Committee,
earn dividend equivalents. In respect of any such Award which is outstanding on
a dividend record date for Common Stock, the Participant may be credited with an
amount equal to the amount of cash or stock dividends that would have been paid
on the shares of Common Stock covered by such Award had such shares been issued
and outstanding on such dividend record date. Subject to compliance with Code
Section 409A, the Committee shall establish such rules and procedures governing
the crediting of dividend equivalents, including the timing, form of payment,
and payment contingencies of such dividend equivalents, as it deems appropriate
or necessary.

     

    13.    Termination of
Service.    Subject to compliance with Code Section
409A, the terms and conditions under which an Award may be exercised after a
Participant’s termination of Service shall be determined by the Committee and
reflected in the written agreement with the Participant concerning the
Award.

     

    14.    Non-Transferability of
Awards.    No Award under the Plan, and no rights or
interest therein, shall be assignable or transferable by a Participant except by
will or the laws of descent and distribution. Subject to the foregoing, during
the lifetime of a Participant, Awards are exercisable only by, and payments in
settlement of Awards will be payable only to, the Participant or his or her
legal representative if the Participant is Disabled.

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    15.    Adjustments on Changes in
Capitalization, Etc.

     

    (a)  The
existence of the Plan and the Awards granted hereunder shall not affect or
restrict in any way the right or power of the Board or the stockholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company’s capital structure or its business, any merger or
consolidation of the Company, any issue of bonds, debentures, preferred or prior
preference stocks ahead of or affecting the Common Stock or the rights thereof,
the dissolution or liquidation of the Company, or any sale or transfer of all or
any part of its assets or business, or any other corporate act or
proceeding.

     

    (b)  In
the event of any change in capitalization affecting the Common Stock after the
effective date of the Plan, such as a stock dividend, stock split,
recapitalization, merger, consolidation, split-up, combination, exchange of
stock, other form of reorganization, or any other change affecting the Common
Stock, such proportionate adjustments, if any, as the Committee in its
discretion may deem appropriate to reflect such change shall be made with
respect to (i) the aggregate number of shares of Common Stock for which Awards
in respect thereof may be granted under the Plan, (ii) the maximum number of
shares of Common Stock which may be sold or awarded to any Participant, (iii)
the number of shares of Common Stock covered by each outstanding Award, and (iv)
the price per share in respect of outstanding Awards. Such adjustments shall be
made by the Committee so that the adjustments shall not result in an accounting
consequence under APB 25 and FASB Interpretation No. 44, as amended, and any
successor thereof. The Committee’s determination with respect to the adjustments
shall be final, binding, and conclusive.

     

    (c)  The
Committee may also make such adjustments in the number of shares covered by, and
the price or other value of any outstanding Awards in the event of a spin-off or
other distribution (other than normal cash dividends) of Company assets to
stockholders.

     

    16.    Change in
Control.    To the extent that the Committee, in its
sole discretion, determines that the payments provided in Subsection (a) through
(d) below do not constitute an “excess parachute payment” under Code Section
280G and do not violate Code Section 409A, and except as the Committee may in
its discretion otherwise provide in any Award agreement, to provide for
compliance with Code Section 409A or otherwise, in the event of a Change in
Control:

     

    (a)  All
outstanding Stock Options shall vest in their entirety and become exercisable
immediately prior to the specified effective date of the Change in Control (and
remain exercisable until the time of termination specified in the relevant Award
agreement), unless such Stock Options are either (i) replaced or assumed by the
successor corporation or its parent company pursuant to options providing
substantially equal value and having substantially equivalent provisions as the
Stock Options granted under the Plan or (ii) the Stock Options are affirmed by
the Company;

     

    (b)  Notwithstanding
paragraph (a) above, all Stock Options issued to non-employee directors shall
vest in their entirety and become exercisable immediately prior to the specified
effective date of the Change in Control (and remain exercisable until the time
of termination specified in the relevant Award agreement) irrespective of
whether such Stock Options are replaced or assumed by the successor corporation
or its parent company or are affirmed by the Company;

     

    (c)  All
restrictions and conditions of the Restricted Stock Grants and Restricted Unit
Grants then outstanding shall be deemed fully satisfied as of the date of the
Change in Control; and

     

    (d)  The
Performance Share Grants and Performance Unit Grants shall be deemed to have
been fully earned as of the date of the Change in Control.

     

    17.    Amendment and
Termination.    Without further approval of the
stockholders, the Board may at any time terminate the Plan, or may amend it from
time to time in such respects as the Board may deem advisable; provided that the
Board may not, without approval of the stockholders, make any amendment which
would (a) increase the aggregate number of shares of Common Stock which may
be issued under the Plan (except for adjustments pursuant to Section 15 above),
(b) materially modify the requirements as to eligibility for participation in
the Plan, or (c) materially increase the benefits accruing to Participants under
the Plan. Notwithstanding the above, the Board may amend the Plan to take into
account changes in applicable securities laws, federal income tax laws and other
applicable laws. Further, should the provisions of Rule 16b-3, or any successor
rule, under the Exchange Act be amended, the Board may amend the Plan in
accordance with any modifications to that rule without the need for stockholder
approval. Notwithstanding the foregoing, the Plan may not be amended more than
once in any six-month period other than to comply with the changes in the
Code.

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    18.    Miscellaneous
Matters.

     

    (a)  Tax
Withholding.

     

    (i)  The
Company’s obligation to deliver Common Stock and/or pay any amount under the
Plan shall be subject to the satisfaction of all applicable federal, state,
local, and foreign tax withholding requirements.

     

    (ii)  The
Committee may, in its discretion, provide the Participants or their successors
with the right to use previously vested Common Stock in satisfaction of all or
part of the taxes incurred by such Participants in connection with the Plan;
provided, however, that this form of payment shall be limited to the withholding
amount calculated using the minimum applicable statutory rates. Such right may
be provided to any such holder in either or both of the following
formats:

     

    1.    Stock
Withholding:    The election to have the Company
withhold, from the Common Stock otherwise issuable under the Plan, a portion of
the Common Stock with an aggregate Fair Market Value equal to the taxes
calculated using the minimum applicable statutory rates.

     

    2.    Stock
Delivery:    The election to deliver to the Company,
at the time the taxes are required to be withheld, one or more shares of Common
Stock previously acquired by the Participant or his or her successor with an
aggregate Fair Market Value equal to the taxes calculated using the minimum
statutory rates.

     

    (b)  Not an Employment or Service
Contract.    Neither the adoption of the Plan nor the
granting of any Award shall confer upon any Participant any right to continue in
the Service of the Company or an Affiliate, nor shall it interfere in any way
with the right of the Company or an Affiliate to terminate the Services of any
of its Employees, Non-Employee Directors, or Consultants at any time, with or
without cause.

     

    (c)  Unfunded
Plan.    The Plan shall be unfunded and the Company
shall not be required to segregate any assets that may at any time be
represented by Awards under the Plan. Any liability of the Company to any person
with respect to any Award under the Plan shall be based solely upon any written
contractual obligations that may be effected pursuant to the Plan. No such
obligation of the Company shall be deemed to be secured by any pledge of, or
other encumbrance on, any property of the Company.

     

    (d)  Annulment of
Awards.    The grant of any Award under the Plan
payable in cash is provisional until cash is paid in settlement thereof. The
grant of any Award payable in Common Stock is provisional until the Participant
becomes entitled to the certificate in settlement thereof. Payment under any
Awards granted pursuant to the Plan is wholly contingent upon stockholder
approval of the Plan. Where approval for an Award sought pursuant to Section
162(m)(4)(C)(ii) of the Code is not granted by the Company’s stockholders, the
Award shall be annulled automatically. In the event the Service of a Participant
is terminated for cause (as defined below), any Award which is provisional shall
be annulled as of the date of such termination for cause. For purposes of the
Plan, the term “terminated for cause” means any discharge because of personal
dishonesty, willful misconduct, breach of fiduciary duty involving personal
profit, continuing intentional or habitual failure to perform stated duties,
violation of any law (other than minor traffic violations or similar misdemeanor
offenses not involving moral turpitude), or material breach of any provision of
an employment or independent contractor agreement with the Company.

     

    (e)  Other Company Benefit and
Compensation Programs.    Payments and other benefits
received by a Participant under an Award made pursuant to the Plan shall not be
deemed a part of a Participant’s regular, recurring compensation for purposes of
the termination indemnity or severance pay law of any state. Furthermore, such
benefits shall not be included in, or have any effect on, the determination of
benefits under any other employee benefit plan or similar arrangement provided
by the Company or a Subsidiary unless expressly so provided by such other plan
or arrangement, or except where the Committee expressly determines that
inclusion of an Award or portion of an Award should be included. Awards under
the Plan may be made in combination with or in addition to, or as alternatives
to, grants, awards or payments under any other Company or Subsidiary plans. The
Company or any Subsidiary may adopt such other compensation programs and
additional compensation arrangements (in addition to the Plan) as it deems
necessary to attract, retain, and motivate officers, directors, employees or
independent contractors for their service with the Company and its
Subsidiaries.

     

    (f)  Securities Law
Restrictions.    No shares of Common Stock shall be
issued under the Plan unless counsel for the Company shall be satisfied that
such issuance will be in compliance with applicable federal and state securities
laws. Certificates for shares of Common Stock delivered under the Plan may be
subject to such stock-transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations, and other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Common
Stock is then listed, and any applicable federal or state securities law. The
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

     

    (g)  Award
Agreement.    Each Participant receiving an Award
under the Plan shall enter into a written agreement with the Company in a form
specified by the Committee agreeing to the terms and conditions of the Award and
such related matters as the Committee shall, in its sole and absolute
discretion, determine.

     

    (h)  Costs of
Plan.    The costs and expenses of administering the
Plan shall be borne by the Company.

     

    (i)  Governing
Law.    The Plan and all actions taken thereunder
shall be governed by and construed in accordance with the laws of the State of
Delaware.

     

    (j)  Compliance with Section 409A of the
Code. It is the Company’s intent that the Plan comply in all
respects with Code Section 409A and the applicable regulations promulgated
thereunder.  If any provision of the Plan is found not to be in
compliance with Code Section 409A and the applicable regulations promulgated
thereunder, that provision shall be deemed to have been amended or deleted as
and to the extent necessary to comply with Code Section 409A and the applicable
regulations promulgated thereunder, and the remaining provisions of the Plan
shall continue in full force and effect, without change.  All
transactions under the Plan shall be executed in accordance with the
requirements of Code Section 409A and the applicable regulations promulgated
thereunder.

     

    
      
        
          
            
              	
                      STAAR
      Surgical
      Company,

                    	 
	
                      a
      Delaware corporation

                    	 
	 
      	 
      	 
	
                      By:

                    	
                      /s/Charles Kaufman

                    	 
	 
      	
                      Charles
      Kaufman

                    	 
	 
      	
                      Secretary

                    	 
	 
      	 
      	 
	
                      Date:  May
      19, 2010

                    	 

            

          

        

      

    

     

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    Form of Stock Option
Agreement

     

    Stock
Option No.  _________

     

    STAAR
SURGICAL COMPANY

     

    AMENDED
AND RESTATED 2003 OMNIBUS EQUITY INCENTIVE PLAN

     

    NOTICE
OF STOCK OPTION GRANT

     

    You have
been granted the following option to purchase Common Stock of STAAR Surgical
Company, a Delaware corporation (the “Company”):

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	
                                                              Name
      of Optionee:

                                                            	
                                                                

                                                            	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                                              Total
      Number of Shares Granted:

                                                            	 
      	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                                              (“Optioned
      Stock”)

                                                            	
                                                                

                                                            	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                                              Type
      of Option:

                                                            	
                                                                

                                                            	 ̈    Incentive
      Stock Option	 
      	 
      
	 
      	 
      	 	 
      	 
      
	 
      	
                                                                

                                                            	x    Non-Qualified
      Stock Option
	 
      	 
      	 	 
      	 
      
	
                                                              Exercise
      Price Per Share:

                                                            	
                                                                

                                                            	$ 	
                                                                                                          

                                                            	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                                              Date
      of Grant:

                                                            	
                                                                

                                                            	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                                              Date
      Exercisable:

                                                            	
                                                                

                                                            	This
      option shall become exercisable (vest) with respect to [one third of the
      Optioned Stock on each of the first, second and third anniversaries] of
      the Vesting Commencement Date set forth below, so long as the Optionee
      completes continuous Service from the Vesting Commencement Date to such
      anniversary.
	 
      	 
      	 	 
      	 
      
	
                                                              Vesting
      Commencement Date:

                                                            	
                                                                

                                                            	   [generally same as grant
      date] 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                                                              Expiration
      Date:

                                                            	
                                                                

                                                            	[end of 5th year from grant]	 
      	 
      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    By your
signature and the signature of the Company’s representative below, you and the
Company agree that this option is granted under and governed by the terms and
conditions of the STAAR Surgical Company Amended and Restated 2003 Omnibus
Equity Incentive Plan and the Stock Option Agreement, both of which are attached
to and made a part of this document.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  OPTIONEE:

                                	 
      	
                                  STAAR
      SURGICAL COMPANY

                                
	 
      	 
      	 
      	 
      
	   
    	 
      	
                                  By: 
      

                                	  
	 
      	 
      	 
      	 
      
	 
      	 
      	
                                  Title:

                                	
                                   r

                                
	 	 	 	 
	
                                  Print
      Name

                                	 
      	 
      	
                                   

                                
	 
      	 
      	 
      	
                                  Date

                                
	
                                                                                             

                                	 
      	 
      	 
      
	
                                  Social
      Security Number
                  

                                	 
      	 
      	 
      

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    STAAR
SURGICAL COMPANY

     

    AMENDED
AND RESTATED 2003 OMNIBUS EQUITY INCENTIVE PLAN

     

    STOCK
OPTION AGREEMENT

     

    1.    Definitions.    Unless
otherwise defined herein, the terms defined in the STAAR Surgical Company
Amended and Restated 2003 Omnibus Equity Incentive Plan (the “Plan”) shall have
the same defined meanings in this Stock Option Agreement
(“Agreement”).

     

    2.    Grant of
Option.    Effective as of the date of grant (the
“Date of Grant”) set forth on the Notice of Stock Option Grant (the “Grant
Notice”) attached hereto, STAAR Surgical Company (the “Company”) grants to the
optionee named in the Grant Notice (“Optionee”) the right and option (the
“Option”) to purchase, all or any part of such number of shares of Common Stock
at such exercise price per share as are set forth on the Grant Notice. The
Option shall be exercisable from time to time in accordance with the provisions
of this Agreement during a period expiring on the expiration date set forth on
the Grant Notice (the “Expiration Date”) or earlier in accordance with Section 5
below. This Option is intended to be an Incentive Stock Option or a
Non-Qualified Stock Option, as provided in the Grant Notice.

     

    3.    Vesting.    The
Option shall become exercisable to purchase, and shall vest with respect to,
such portion (rounded to the nearest whole share) of the Optioned Stock covered
hereby as set forth on the Grant Notice; provided that no Optioned Stock shall
vest at or after the Optionee’s Termination Date.

     

    4.    Manner of
Exercise.    Each exercise of the Option shall be by
means of a written notice of exercise delivered to the Committee, specifying the
number of shares to be purchased and accompanied by payment to the Committee of
the full purchase price of the shares of Optioned Stock to be purchased in
compliance with applicable law (including, without limitation, state and federal
margin requirements) and (i) in cash or by check payable to the order of the
Company, (ii) by delivery of Mature Shares already owned by, and in the
possession of, the Optionee, valued at their Fair Market Value, (iii) by a
Qualified Note made by Optionee in favor of the Company upon the terms and
conditions determined by the Committee, including, to the extent the Committee
determines appropriate, a security interest in the shares issuable upon exercise
or other property, (iv) through a “cashless exercise,” or (v) by any combination
thereof that the Committee may approve; provided, however, that such payment of
the exercise price would not cause the Company to recognize compensation expense
for financial reporting purposes or to violate Section 402 of the Sarbanes-Oxley
Act of 2002, as determined by the Committee in its sole discretion. Shares of
Common Stock (including Mature Shares) used to satisfy the exercise price of the
Option shall be valued at their Fair Market Value determined on the date of
exercise (or if such date is not a business day, as of the close of the business
day immediately preceding such date). This Option may not be exercised for a
fraction of a share and no partial exercise of the Option may be for fewer than
(a) one hundred (100) whole shares or (b) the total number of whole shares then
eligible for exercise, if fewer than one hundred (100) shares.

     

    The
Option may be exercised (i) during the lifetime of the Optionee only by the
Optionee or, if the Optionee is Disabled, only by his or her legal
representative; and (ii) after the Optionee’s death by his or her transferees by
will or the laws of descent or distribution.

     

    5.    Termination of Service; Death or
Disability.    Upon termination of the Optionee’s
Service, other than due to death or Disability, the Option shall be exercisable,
to the extent exercisable on the Termination Date, until the earlier of the
Expiration Date or the date that is ninety (90) days after the Optionee’s
Termination Date, and shall thereupon expire and thereafter be void and of no
further force or effect. If the Optionee dies or becomes Disabled while the
Optionee is in Service with the Company or an Affiliate, the Option shall be
exercisable, to the extent exercisable on the Termination Date, until the
earlier of the Expiration Date or the first anniversary of the date of such
death or Disability, and shall thereupon expire and thereafter be void and of no
further force or effect. During such period after death, the Option may, to the
extent that it remained unexercised (but exercisable by the Optionee according
to the Option’s terms) on the date of such death, be exercised by the person or
persons to whom the Optionee’s rights under the Option shall pass by the
Optionee’s will or by the laws of descent and distribution.

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    6.    Shares to be Issued in Compliance
with Federal Securities Laws and Exchange
Rules.    By accepting the Option, the Optionee
represents and agrees, for the Optionee and his or her legal successors (by will
or the laws of descent and distribution), that none of the shares purchased upon
exercise of the Option will be acquired with a view to any sale, transfer or
distribution of said shares in violation of the Securities Act of 1933, as
amended (the “Securities Act”), and the rules and regulations promulgated
thereunder, or any applicable state securities or “blue sky” laws. If required
by the Committee at the time the Option is exercised, the Optionee or any other
person entitled to exercise the Option shall furnish evidence satisfactory to
the Company (including a written and signed representation) to such effect in
form and substance satisfactory to the Company, including an indemnification of
the Company in the event of any violation of the Securities Act or state blue
sky laws by such person. The Company shall use its reasonable efforts to take
all necessary and appropriate action to assure that the shares issuable upon the
exercise of the Option shall be issued in full compliance with the Securities
Act, state blue sky laws and all applicable listing requirements of any
principal securities exchange on which shares of the same class are
listed.

     

    7.    Withholding of
Taxes.    As a condition to any exercise of the
Option, the Optionee shall make such arrangements as the Committee may require
for the satisfaction of any federal, state, local, or foreign withholding tax
obligations that may arise in connection with such exercise. The Optionee shall
also make such arrangements as the Committee may require for the satisfaction of
any federal, state, local, or foreign withholding tax obligations that may arise
in connection with the disposition of shares of Common Stock acquired by
exercising the Option.

     

    8.    Payment of
Withholding.    The Optionee will pay to the Company
an amount equal to the withholding amount (or the Company may withhold such
amount from the Optionee’s salary) in cash. At the Committee’s election, the
Optionee may pay the withholding amount with shares of Common Stock; provided,
however, that payment in stock shall be limited to the withholding amount
calculated using the minimum statutory rates.

     

    9.    No
Assignment.    The Option and all other rights and
privileges granted hereby shall not be transferred, either voluntarily or by
operation of law otherwise than by will or the laws of descent and distribution.
Upon any attempt to so transfer or otherwise dispose of the Option or any other
right or privileges granted hereby contrary to the provisions hereof, the Option
and all rights and privileges contained herein shall immediately become null and
void and of no further force or effect.

     

    10.    Adjustment for Reorganizations,
Stock Splits, etc.    If the outstanding shares of
Common Stock (or any other class of shares or securities which shall have become
issuable upon the exercise of the Option pursuant to this sentence) are
increased, decreased, changed into or exchanged for a different number or kind
of shares or securities of the Company through reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other
similar transaction, an appropriate and proportionate adjustment shall be made
in the maximum number and kind of shares receivable upon the exercise of the
Option, without change in the total price applicable to the unexercised portion
of the Option, but with a corresponding adjustment in the price for each share
or other unit of any security covered by the Option.

     

    Upon the
dissolution or liquidation of the Company, or upon a reorganization, merger or
consolidation of the Company with one or more corporations as a result of which
the Company is not the surviving corporation, or upon a sale of substantially
all the property or more than eighty percent (80%) of the then outstanding stock
of the Company to another corporation, the Option shall terminate; provided,
however, that notwithstanding the foregoing, the Committee shall provide in
writing in connection with such transaction for the appropriate satisfaction of
the Option by one or more of the following alternatives (separately or in
combination): (i) for the Option to become immediately exercisable in full
notwithstanding the provisions of Section 3; (ii) for the assumption by the
successor corporation of the Option or the substitution by such corporation
therefor of a new option covering the stock of the successor corporation or its
affiliates with appropriate adjustments as to the number and kind of shares and
prices; (iii) for the continuance of the Plan by such successor corporation, in
which event the Plan and the Option shall continue in the manner and under the
terms so provided; or (iv) for the payment in cash or stock in lieu of and in
complete satisfaction of the Option.

     

    Adjustments
under this Section 10 shall be made by the Committee, whose determination as to
what adjustments shall be made, and the extent thereof, shall be final, binding
and conclusive. No fractional shares of stock shall be issued under the Option
on any such adjustment.

     

    11.    Participation by the Optionee in
Other Company Plans.    Nothing herein contained
shall affect the right of the Optionee to participate in and receive benefits
under and in accordance with the then current provisions of any pension,
insurance, profit sharing or other employee welfare plan or program of the
Company or of any Affiliate.

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    12.    No Rights as a Stockholder until
Issuance of Stock Certificate.    Neither the
Optionee nor any other person legally entitled to exercise the Option shall be
entitled to any of the rights or privileges of a stockholder of the Company in
respect of any shares issuable upon any exercise of the Option unless and until
a certificate or certificates representing such shares shall have been actually
issued and delivered to the Optionee. No shares shall be issued and delivered
upon the exercise of the Option unless and until there shall have been full
compliance with all applicable requirements of the Securities Act (whether by
registration or satisfaction of an exemption therefrom), all applicable listing
requirements of a national securities exchange on which shares of the same class
are listed and any other requirements of law or of any regulatory bodies having
jurisdiction over such issuance and delivery.

     

    13.    Not an Employment or Service
Contract.    Nothing herein contained shall be
construed as an agreement by the Company or any of its Affiliates, express or
implied, to employ the Optionee or contract for the Optionee’s services, to
restrict the Company’s or such Affiliate’s right to discharge the Optionee or
cease contracting for the Optionee’s services or to modify, extend or otherwise
affect in any manner whatsoever, the terms of any employment agreement or
contract for services which may exist between the Optionee and the Company or
any of its Affiliates.

     

    14.    Agreement Subject to the
Plan.    The Option is and shall be subject to, and
the Company and the Optionee agree to be bound by, all of the terms and
conditions of the Plan, as the same shall be amended from time to time in
accordance with the terms thereof, but no such amendment shall adversely affect
the Optionee’s rights under the Option without the prior written consent of the
Optionee.

     

    15.    Governing
Law.    The interpretation, performance and
enforcement of this Agreement shall be governed by the internal substantive laws
of the State of California.

    

    In
Witness Whereof, this Stock Option Agreement has been duly executed by or on
behalf of the parties hereto as of the date of grant stated on the Grant
Notice.

     

    
      
        
          
            	
                    COMPANY:

                  	 
      	
                    STAAR
      SURGICAL COMPANY

                  
	 
      	 
      	 
      	 
      
	 
      	 
      	
                    By:

                  	 
      
	 
      	 
      	 
      	
                    Date

                  
	 
      	 
      	
                    Its:

                  	
                    Chief
      Financial Officer

                  
	 
      	 
      	 
      	 
      
	
                    OPTIONEE:

                  	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                    Date

                  

          

        

      

    

    

    By his or
her signature below, the spouse of the Optionee agrees to be bound by all of the
terms and conditions of the foregoing Stock Option Agreement.

    

    
      
        
          	
                  OPTIONEE’S
      SPOUSE:

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                   Name

                

        

      

    

     

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    
      Form of Restricted Stock
Agreement

    

       

    STAAR
SURGICAL COMPANY

     

    AMENDED
AND RESTATED 2003 OMNIBUS EQUITY INCENTIVE PLAN

     

    RESTRICTED
STOCK PURCHASE RIGHT

     

    NOTICE OF
GRANT

     

    STAAR
Surgical Company (the “Company”) has granted to you (“Grantee”), pursuant to its
Amended and Restated 2003 Omnibus Equity Incentive Plan (the “Plan”), the right
(the “Award”) to purchase the number of shares of the Company’s Common Stock set
forth below.  The Award is subject to all of the terms and conditions
set forth herein and in the Restricted Stock Purchase Agreement, the Plan, the
form of Assignment Separate from Certificate and the form of Joint Escrow
Instructions, all of which are attached hereto and incorporated herein in their
entirety.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	
                                                            Grantee’s
      Name and Address:

                                                          	 
      	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                                                            Total
      Number of Shares of Common Stock Granted:

                                                          	___________________ 
      	 
	 	 	 
	
                                                            Date
      of Grant:

                                                          	
                                                            _______ __,
      20__

                                                          	 
	 	 	 
	
                                                            Vesting
      Commencement Date:

                                                          	
                                                            _______ __,
      20__

                                                          	 
	 	 	 
	
                                                            Purchase
      Price per Share:

                                                          	
                                                            $0.01

                                                          	 
	 	 	 
	
                                                            Total
      Purchase Price:

                                                          	
                                                            $____

                                                          	 
	 	 	 
	
                                                            Vesting
      Schedule:

                                                          	
                                                            [One third of the Award Shares
      shall vest on each of the first, second and third anniversary of the
      Vesting Commencement Date set forth above.]  Fractional
      Award Shares shall not vest until Grantee becomes vested in all of the
      Award Shares.

                                                          
	 	 	 
	
                                                            Forfeiture
      of Shares

                                                          	
                                                            The
      Company has the right to repurchase the Award Shares at Grantee’s original
      purchase price if Grantee’s status as a Service provider to the Company
      terminates for any reason.  For purposes of this Notice of Grant
      and the Restricted Stock Purchase Agreement, Award Shares “vest” when the
      Company’s right to repurchase them expires and they are no longer subject
      to forfeiture to the Company.

                                                          
	 	 	 
	
                                                            Closing
      Date:

                                                          	
                                                            _______ __,
      20__

                                                          	 
	 	 	 
	
                                                            Payment
      Method:

                                                          	
                                                            Cash,
      check, previously owned shares or a combination
  thereof.

                                                          

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    STAAR
SURGICAL COMPANY

     

    AMENDED
AND RESTATED 2003 OMNIBUS EQUITY INCENTIVE PLAN

     

    RESTRICTED
STOCK PURCHASE AGREEMENT

     

    This
Restricted Stock Purchase Agreement (this “Agreement”) is made on this ___ day
of _________, 20__, by and between STAAR Surgical Company (the “Company”) and
Grantee with respect to the Award Shares purchasable by Grantee under the Notice
of Grant attached hereto and made a part hereof, and pursuant to the STAAR
Surgical Company Amended and Restated 2003 Omnibus Equity Incentive Plan (the
“Plan”).

     

    The
Grantee acknowledges and agrees that the Award Shares shall vest, if at all,
only during the period of Grantee’s Service (not through the act of being hired,
being granted the Award or acquiring Award Shares hereunder).  The
Grantee further acknowledges and agrees that nothing in this Agreement, the
Notice of Grant or the Plan gives Grantee any right to the continuation of
Grantee’s Service with the Company, or interferes or will interfere in any way
with Grantee’s right or the Company’s right to terminate Grantee’s Service at
any time, with or without cause, and with or without notice.  The
Grantee acknowledges that Grantee’s employment is at will, unless Grantee has a
written employment agreement with the Company expressly providing
otherwise.

     

    1.      Definitions.  Unless
otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in
this Agreement.  In addition, as used herein the following
definitions shall apply:

     

    “Award Shares” means
shares of the Company’s Common Stock in the number set forth in the Notice of
Grant, subject to adjustment pursuant to Section 15 of the Plan.

     

    “Closing Date” means
the date set forth as such in the Notice of Grant.

     

    “Repurchase Right”
means the right of the Company to repurchase Unvested Shares pursuant to this
Agreement.

     

    “Unvested Shares”
means Award Shares that are subject to the Repurchase Right.

     

    “Vested Shares” means
Award Shares as to which the Repurchase Right has expired.

     

    2.      Purchase and Sale of Award
Shares.  Effective as of the Closing Date, the Company agrees
to sell the Award Shares to Grantee, and Grantee agrees to buy the Award Shares
from the Company, for the Total Purchase Price set forth in the Notice of
Grant.

     

    3.      Method of Payment.
Payment of the Total Purchase Price shall be by any of the following, or a
combination thereof, at the election of the Purchaser:  (i) cash; or
(ii) check; or (iii) surrender of other shares of Common Stock of the Company
which (A) in the case of shares acquired pursuant to the exercise of a Company
option, have been owned by Grantee for more than six months on the date of
surrender, and (B) have an aggregate fair market value on the date of surrender
not less than the Total Purchase Price of the Award Shares so
purchased.

     

    4.      Repurchase Right;
Vesting.  Upon issuance, all of the Award Shares shall be
Unvested Shares and subject to the Repurchase Right.

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

     

    a.   The
Repurchase Right shall terminate in accordance with the vesting schedule stated
in the Notice of Grant; provided that the Repurchase Right shall terminate
entirely immediately on the occurrence of a Change in Control.

     

    b.   If
Grantee ceases to be a provider of Service for any reason, whether voluntary or
involuntary, with or without cause, and including without limitation death or
Disability, the Company shall have the right to purchase from Grantee, or
Grantee’s personal representative, as the case may be, all of Grantee’s Unvested
Shares as of the date of such termination at the price paid by Grantee for such
Unvested Shares.

     

    c.    Upon
the occurrence of such termination, the Company may exercise its Repurchase
Right by delivering personally or by registered mail to Grantee (or his
transferee or legal representative, as the case may be) with a copy to the
escrow agent described in Section 2 below, a notice in writing indicating the
Company’s intention to exercise the Repurchase Right and paying the repurchase
price by one of the following methods, at the option of the
Company:  (i) by delivering to Grantee (or Grantee’s transferee or
legal representative) a check in the amount of the aggregate repurchase price,
or (ii) by the Company canceling an amount of Grantee’s indebtedness to the
Company equal to the aggregate repurchase price, or (iii) by a combination of
(i) and (ii) so that the combined payment and cancellation of indebtedness
equals such aggregate repurchase price. Upon delivery of such notice and payment
of the aggregate repurchase price in any of the ways described above, the
Company shall become the legal and beneficial owner of the Unvested Shares being
repurchased and the rights and interests therein or relating thereto, and the
Company shall have the right to retain and transfer to its own name the number
of Unvested Shares being repurchased by the Company.

     

    d.    Whenever
the Company shall have the right to repurchase Unvested Shares hereunder, the
Company may designate and assign one or more employees, officers, directors or
shareholders of the Company or other persons or organizations to exercise all or
a part of the Company’s Repurchase Right under this Agreement and purchase all
or a part of such Unvested Shares.

     

    e.     At
its option, the Company may elect to make payment for the Unvested Shares to a
bank selected by the Company. The Company shall avail itself of this option by a
notice in writing to Grantee stating the name and address of the bank, date of
closing, and waiving the closing at the Company’s office.

     

    f.     
If the Company does not elect to exercise the Repurchase Right conferred above
by giving the requisite notice within ninety days following the termination, the
Repurchase Right shall terminate.

     

    5.      Transferability of the
Shares; Escrow.

     

    a.     Grantee
hereby authorizes and directs the Secretary of the Company, or such other person
designated by the Company, to transfer the Unvested Shares as to which the
Repurchase Right has been exercised from Grantee to the Company.

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    b.   To
insure the availability for delivery of Grantee’s Unvested Shares upon
repurchase by the Company pursuant to the Repurchase Right under Section 4,
Grantee hereby appoints the Secretary, an Assistant Secretary or any other
person designated by the Company as escrow agent, as Grantee’s attorney-in-fact
to sell, assign and transfer unto the Company, such Unvested Shares, if any,
repurchased by the Company pursuant to the Repurchase Right.  On
purchasing any Unvested Shares hereunder, Grantee shall deliver and deposit with
the Secretary of the Company, or such other person designated by the Company,
the share certificates representing such Unvested Shares, together with an
assignment separate from certificate duly executed in blank in the form set
forth in Exhibit A hereto. The Unvested Shares and such assignment shall be held
by the secretary in escrow, pursuant to the Joint Escrow Instructions of the
Company and Grantee set forth in Exhibit B hereto, until the Company exercises
its Repurchase Right, until such Unvested Shares become Vested Shares, or until
such time as this Agreement is no longer in force or effect.  Upon
vesting of the Unvested Shares, the escrow agent shall promptly deliver to
Grantee the certificate or certificates evidencing the Vested Shares in the
escrow agent’s possession belonging to Grantee, and the escrow agent shall be
discharged of all further obligations hereunder.

     

    c.    The
Company, or its designee, shall not be liable for any act it may do or omit to
do with respect to holding Shares in escrow and while acting in good faith and
in the exercise of its judgment.

     

    d.    Grantee
represents and agrees, for Grantee and his or her legal successors (by will or
the laws of descent and distribution), that none of the Award Shares purchased
hereunder will be acquired with a view to any sale, transfer or distribution of
any of the Award Shares in violation of the Securities Act of 1933, as amended
(the “Securities Act”), and the rules and regulations promulgated thereunder, or
any applicable state securities or “blue sky” laws.  If required by
the Committee at the time Vested Shares are delivered to Grantee, Grantee or any
other person entitled to receive the Vested Shares shall furnish evidence
satisfactory to the Company (including a written and signed representation) to
such effect in form and substance satisfactory to the Company, including an
indemnification of the Company in the event of any violation of the Securities
Act or state blue sky laws by such person.  The Company shall use its
reasonable efforts to take all necessary and appropriate action to assure that
the Award Shares shall be issued in full compliance with the Securities Act,
state blue sky laws and all applicable listing requirements of any principal
securities exchange on which shares of the same class are listed.

     

    6.      Taxes

     

    a.    No Section 83(b)
Election.  As a condition to receiving the Award Shares,
Grantee agrees to refrain from making an election pursuant to Section 83(b) of
the Internal Revenue Code of 1986, as amended, with respect to the Award
Shares.

     

    b.    Payment of Withholding
Taxes.  The Grantee is ultimately liable and responsible for
all taxes owed by Grantee in connection with the Award, regardless of any action
the Company or any Affiliate takes with respect to any tax withholding
obligations that arise in connection with the Award.  Neither the
Company nor any Affiliate makes any representation or undertaking regarding the
treatment of any tax withholding in connection with the grant or vesting of the
Award or the subsequent sale of Shares subject to the Award.  The
Company and its Affiliates do not commit and are under no obligation to
structure the Award to reduce or eliminate Grantee’s tax liability

     

    7.      Ownership, Voting Rights,
Duties.  Except as expressly provided herein, the restrictions
and Repurchase Right shall not interfere with voting rights, or other rights or
duties of Grantee as a stockholder of the Company.

     

    8.      Legends. Each share
certificate evidencing Award Shares shall be endorsed with the following legend
(in addition to any legend required under applicable federal and state
securities laws):

     

    THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS UPON TRANSFER
AND RIGHTS OF REPURCHASE AS SET FORTH IN A RESTRICTED STOCK PURCHASE AGREEMENT
BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE COMPANY AND MAY BE INSPECTED BY ANY PERSON MAKING INQUIRY ABOUT
IT.

     

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    9.      Stop-Transfer
Notices.  In order to ensure compliance with the restrictions
on transfer set forth in this Agreement, the Notice of Grant or the Plan, the
Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

     

    10.           Adjustments for Changes in
Common Stock.  All references herein to the number of Award
Shares and the repurchase price shall be appropriately adjusted to reflect any
stock split, stock dividend or other change in the capital stock of the Company
that may be made by the Company pursuant to Section 15 of the Plan after the
date of exercise.

     

    11.           Notices.  Notices
to Grantee hereunder shall be given in person or by certified mail to the
address of Grantee shown on the records of the Company.  Notices to
the Company hereunder shall be made by certified mail at its principal executive
offices.

     

    12.           Survival of
Terms.  This Agreement shall bind and inure to the benefit of
Grantee and the Company and their respective permitted assignees and
transferees, heirs, legatees, executors, administrators and
successors.

     

    13.           Representations.  Grantee
has reviewed with his or her own tax advisors the federal, state, local and
foreign tax consequences of this investment and the transactions contemplated by
this Agreement.  Grantee is relying solely on Grantee’s own
investigation and such review and not on any statements or representations of
the Company or any of its agents.  Grantee understands that Grantee
(and not the Company) shall be responsible for Grantee’s own tax liability that
may arise as a result of this investment or the transactions contemplated by
this Agreement.

     

    14.           Entire Agreement; Governing
Law; Severability.  The Notice of Grant, the Plan and this
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Grantee with respect to the subject matter hereof,
and may not be modified adversely to Grantee’s interest except by means of a
writing signed by the Company and Grantee.  This Agreement shall be
governed by the internal substantive laws, but not the choice of law rules, of
California.  Should any provision of the Notice of Grant or this
Agreement be determined to be illegal or unenforceable, the other provisions
shall nevertheless remain effective and shall remain enforceable

     

    15.           Acknowledgement.  Grantee
represents that Grantee has read this Agreement, the Notice of Grant and the
Plan and is familiar with all of the terms and provisions hereof and thereof.
Grantee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Board or the Committee upon any questions arising
under this Agreement.

     

    16.           Arbitration.  Any
dispute, controversy, or claim arising out of, or in connection with, or
relating to the performance of this Agreement or its termination, shall be
settled by arbitration in Los Angeles, California, pursuant to the rules then in
effect of the American Arbitration Association.  Any award shall be
final, binding and conclusive upon the parties and a judgment rendered thereon
may be entered in any court having jurisdiction thereof.

     

    [Signature
Page Follows]

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, this Restricted Stock Purchase Agreement has been duly executed
by or on behalf of the parties hereto as of the Date of Grant set forth in the
Notice of Grant.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      GRANTEE:

                                    	 	
                                      STAAR
      SURGICAL COMPANY

                                    
	 
      	 	 
      	 
      
	 
      	 	
                                      By

                                    	 
      
	
                                      Signature

                                    	 	 
      	 
      
	 	 	 	 
	 
      	 	 
      
	
                                      Print
      Name

                                    	 	
                                      Print
      Name

                                    
	 	 	 	 
	 
      	 	 
      
	
                                      Social
      Security Number

                                    	 	
                                      Title

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    Exhibit A

     

    ASSIGNMENT
SEPARATE FROM CERTIFICATE

     

    FOR VALUE
RECEIVED pursuant to that certain Restricted Stock Purchase Agreement between
the Company and the undersigned dated as of ______________, 20___, the
undersigned hereby sells, assigns and transfers unto STAAR Surgical Company, a
Delaware corporation (the “Company”), _____________________________________
(_______) shares of the Common Stock of the Company standing in the name of the
undersigned on the books of the Company, represented by Certificate(s) No(s).
_______________________________, and hereby irrevocably constitutes and appoints
____________________________ attorney to transfer such shares on the books of
the Company with full power of substitution in the premises.

     

    
      
        
          
            
              	
                      Dated:
      ___________, 20___

                    	 
      	 
      
	 
      	 
      	
                      Signature

                    
	 	 	 
	 
      	 
      	 
      
	 
      	 
      	
                      Typed
      or Printed
Name

                    

            

          

        

      

    

    

    INSTRUCTIONS:  Please
do not fill in any blanks other than the lines for your signature and your typed
or printed name.  The purpose of this assignment is to enable the Company to
exercise its Repurchase Right, as set forth in the Restricted Stock Purchase
Agreement, without requiring additional signatures on your part.

    

    
      
        
          A

        

        
           

          
            

          

        

        
           

        

      

    

     

    Exhibit B

       

    JOINT
ESCROW INSTRUCTIONS

     

    Capitalized
terms used and not otherwise defined herein have the meanings respectively
ascribed to such terms in the Restricted Stock Purchase Agreement (the
“Agreement”) of which these Joint Escrow Instructions are a part or in the STAAR
Surgical Company Amended and Restated 2003 Omnibus Equity Incentive Plan (the
“Plan”).  As escrow agent (the “Escrow Agent”) for both the Company
and Grantee under the Agreement, the Corporate Secretary (or other
representative appointed pursuant to Section 5 of the Agreement) of the Company
(the “Secretary”) is hereby authorized and directed to hold the documents
delivered to him or her pursuant to the Agreement (the “Escrow”) in accordance
with the following instructions.

     

    1.      In
the event the Company and/or any assignee of the Company (referred to
collectively for convenience herein as the “Company”) exercises the Repurchase
Right, the Company shall give to Grantee and the Secretary a written notice
specifying the number of Award Shares to be repurchased, the repurchase price
and the time for a closing hereunder at the principal office of the
Company.  Grantee and the Company hereby irrevocably authorize and
direct the Secretary to close the repurchase contemplated by such notice in
accordance with the terms of such notice.

     

    2.      At
the Closing, the Secretary is directed (a) to date the assignment separate from
certificate executed by Grantee pursuant to the Agreement, as necessary for the
repurchase, (b) to fill in the number of Award Shares being repurchased, (c) to
fill in the certificate(s) no(s). of the certificate(s) evidencing such Award
Shares, and (d) to deliver same, together with the certificate(s) evidencing
such Award Shares, to the Company or its assignee, against the simultaneous
delivery to the Secretary of the repurchase price (by cash, a check,
cancellation of indebtedness or some combination thereof) (the “Repurchase
Consideration”) for the number of Award Shares being repurchased pursuant to the
exercise of the Repurchase Right.  The Secretary shall thereupon
deliver the Repurchase Consideration to Grantee or the Grantee’s legal
representative, and the rights and obligations of all parties under these Joint
Escrow Instructions shall be deemed satisfied and discharged.

     

    3.      Grantee
irrevocably authorizes the Company to deposit with the Secretary any
certificates evidencing Award Shares to be held hereunder and any additions and
substitutions to said Award Shares pursuant to the Agreement.  Grantee
hereby irrevocably constitutes and appoints the Secretary as Grantee’s
attorney-in-fact and agent for the term of this Escrow to execute with respect
to such securities all documents necessary or appropriate to make such
securities negotiable and to complete any transaction herein contemplated,
including but not limited to the filing with any applicable state blue sky
authority of any required applications for consent to transfer, or notice of the
transfer of, the securities.  Until securities are repurchased
pursuant to the exercise of the Repurchase Right, Grantee shall have the right
to exercise all rights and privileges of a stockholder of the Company while such
securities are held by the Secretary.

     

    4.      Upon
written request of Grantee, but no more than once per calendar year, unless the
Repurchase Right has been exercised, the Secretary will deliver to Grantee a
certificate or certificates representing so many Award Shares as are not then
subject to the Repurchase Right.  Within 120 days after cessation of
Grantee’s status as a provider of Service, the Secretary will deliver to Grantee
a certificate or certificates representing the aggregate number of Award Shares
held or issued pursuant to the Agreement and not repurchased by the Company or
its assignees pursuant to the exercise of the Repurchase Right.

     

    5.      If
at the time of termination of this escrow the Secretary should have in his or
her possession any documents, securities or other property belonging to Grantee,
the Secretary shall deliver all of the same to Grantee and shall be discharged
of all further obligations hereunder.

    

    
      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

    

    

    6.      The
Secretary’s duties hereunder may be altered, amended, modified or revoked only
by a writing signed by the Company, Grantee and the Secretary.

     

    7.      The
Secretary shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by the Secretary to
be genuine and to have been signed or presented by the proper party or
parties.  The Secretary shall not be personally liable for any act he
or she may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for
Grantee while acting in good faith, and any act done or omitted by the Secretary
pursuant to the advice of his or her own attorneys or attorneys for the Company
shall be conclusive evidence of such good faith.

     

    8.      The
Secretary is hereby expressly authorized to disregard any and all warnings given
by any of the parties hereto or by any other person or corporation, excepting
only orders or process of courts of law and is hereby expressly authorized to
comply with and obey orders, judgments or decrees of any court.  In
case the Secretary obeys or complies with any such order, judgment or decree, he
or she shall not be liable to any of the parties hereto or to any other person,
firm or corporation by reason of such compliance, notwithstanding any such
order, judgment or decree being subsequently reversed, modified, annulled, set
aside, vacated or found to have been entered without jurisdiction.

     

    9.      The
Secretary shall not be liable in any respect on account of the identity,
authorities or rights of the parties executing or delivering or purporting to
execute or deliver the Agreement or any documents or papers deposited or called
for thereunder or hereunder.

     

    10.           The
Secretary shall not be liable for the outlawing of any rights under the Statute
of Limitations with respect to these Joint Escrow Instructions or any documents
deposited with the Secretary.

     

    11.           The
Secretary shall be entitled to employ such legal counsel and other experts as he
or she may deem necessary to advise in connection with the obligations
hereunder, may rely upon the advice of such counsel, and the Secretary or the
Company may pay such counsel reasonable compensation therefor.

     

    12.           The
Secretary’s responsibilities as Escrow Agent hereunder shall terminate if he or
she shall cease to be an officer or agent of the Company or if he or she shall
resign by written notice to each party.  In the event of any such
termination, the Company shall appoint a successor Escrow Agent.

     

    13.           If
the Secretary reasonably requires other or further instruments in connection
with these Joint Escrow Instructions or obligations in respect hereto, the
necessary parties hereto shall join in furnishing such instruments.

     

    14.           It
is understood and agreed that should any dispute arise with respect to the
delivery and/or ownership or right of possession of the securities held
hereunder, the Secretary is authorized and directed to retain in his or her
possession, without liability to anyone, all or any part of said securities
until such disputes shall have been settled or resolved either by mutual written
agreement of the parties concerned or by a final order, decree or judgment of a
court of competent jurisdiction after the time for appeal has expired and no
appeal has been perfected, but shall be under no duty whatsoever to institute or
defend any such proceedings.

     

    15.           Any
notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon personal delivery or upon deposit with the United
States Postal Service, by certified mail with postage and fees prepaid,
addressed to each of the other parties thereunto entitled at the following
addresses or at such other addresses as a party may designate by ten days’
advance written notice to each of the other parties hereto:

    

    
      
        
           

        

        
          B-2

          
            

          

        

        
           

        

      

    

    

    COMPANY:

     

    STAAR
Surgical Company

    1911
Walker Ave

    Monrovia,
CA  91016

     

    GRANTEE:          To
the address on file with the Company

     

    ESCROW
AGENT:

     

    STAAR
Surgical Company

    1911
Walker Ave

    Monrovia,
CA  91016

    Attention:  Corporate
Secretary

     

    16.           The
Secretary becomes a party hereto only for the purpose of said Joint Escrow
Instructions; the Secretary is not and shall not become a party to the
Restricted Stock Purchase Agreement.

     

    17.           These
Joint Escrow Instructions shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted
assigns.

     

    18.           These
Joint Escrow Instructions shall be governed by, and construed and enforced in
accordance with, the laws of the State of California.

    

    
      
        
           

        

        
          B-3

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