Document:

Exhibit 10.3

 

Exhibit 10.3

UNCONDITIONAL GUARANTY

     This continuing Unconditional Guaranty (“Guaranty”) is entered into as of February 23,
2007, by
                                         (“Guarantor”), in favor of Silicon Valley Bank (“Bank”).

Recitals

     A. Concurrently herewith, Bank and WebSideStory, Inc., a Delaware corporation (“Borrower”),
are entering into that certain Loan and Security Agreement dated of even date herewith, (as
amended, restated, or otherwise modified from time to time, the “Loan Agreement”) pursuant to which
Bank has agreed to make certain advances of money and to extend certain financial accommodations to
Borrower (collectively, the “Loans”), subject to the terms and conditions set forth therein.
Capitalized terms used but not otherwise defined herein shall have the meanings given them in the
Loan Agreement.

     B. In consideration of the agreement of Bank to make the Loans to Borrower under the Loan
Agreement, Guarantor is willing to guaranty the full payment and performance by Borrower of all of
its obligations thereunder and under the other Loan Documents, all as further set forth herein.

     C. Guarantor is the wholly-owned subsidiary of Borrower and will obtain substantial direct and
indirect benefit from the Loans made by Bank to Borrower under the Loan Agreement.

     Now, Therefore, to induce Bank to enter into the Loan Agreement, and for other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and
intending to be legally bound, Guarantor hereby represents, warrants, covenants and agrees as
follows:

     Section 1. Guaranty.

          1.1 Unconditional Guaranty of Payment. In consideration of the foregoing, Guarantor hereby
irrevocably, absolutely and unconditionally guarantees to Bank the prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise) of all Obligations
of Borrower under the Loan Documents. Guarantor agrees that it shall execute such other documents
or agreements and take such action as Bank shall reasonably request to effect the purposes of this
Guaranty.

          1.2 Separate Obligations. These obligations are independent of Borrower’s obligations and
separate actions may be brought against Guarantor (whether action is brought against Borrower or
whether Borrower is joined in the action).

     Section 2. Representations and Warranties. Guarantor hereby represents and warrants that:

          (a) Guarantor (i) is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware; (ii) is duly qualified to do business and is in
good standing in every jurisdiction where the nature of its business requires it to be so qualified
(except where the failure to so qualify would not have a material adverse effect on Guarantor’s
condition, financial or otherwise, or on Guarantor’s ability to pay or perform the obligations
hereunder); and (iii) has all requisite power and authority to execute and deliver this Guaranty
and each Loan Document executed and delivered by Guarantor pursuant to the Loan Agreement or this
Guaranty and to perform its obligations thereunder and hereunder.

          (b) The execution, delivery and performance by Guarantor of this Guaranty (i) are within
Guarantor’s powers and have been duly authorized by all necessary action; (ii) do not contravene
Guarantor’s charter documents or any law or any material contractual restriction binding on or
affecting

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Guarantor or by which Guarantor’s property may be affected; (iii) do not require any authorization
or approval or other action by, or any notice to or filing with, any governmental authority or any
other Person under any material indenture, mortgage, deed of trust, lease, agreement or other
instrument to which Guarantor is a party or by which Guarantor or any of its material property is
bound, except such as have been obtained or made; and (iv) do not result in the imposition or
creation of any Lien upon any property of Guarantor, other than the Lien created pursuant to the
Security Agreement, of even date herewith.

          (c) This Guaranty is a valid and binding obligation of Guarantor, enforceable against
Guarantor in accordance with its terms, except as the enforceability thereof may be subject to or
limited by bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws
relating to or affecting the rights of creditors generally or by equitable principles relating to
enforceability.

          (d) Except for actions or proceedings disclosed in Borrower’s public reports filed with the
Securities and Exchange Commission prior to the Effective Date, there is no action, suit or
proceeding affecting Guarantor pending or, to Guarantor’s knowledge, threatened before any court,
arbitrator, or governmental authority, domestic or foreign, which could reasonably be expected to
have a material adverse effect on the ability of Guarantor to perform its obligations under this
Guaranty.

          (e) Guarantor’s obligations hereunder are not subject to any offset or defense against Bank or
Borrower of any kind.

          (f) To ensure the legality, validity, enforceability or admissability into evidence of this
Guaranty in each of the jurisdictions in which Guarantor is incorporated or organized and any
jurisdiction in which Guarantor conducts business, it is not necessary that (i) this Guaranty be
filed or recorded with any court or other authority in such jurisdiction, (ii) any other filings,
notices, authorizations, approvals be obtained or other actions taken, or (iii) any stamp or
similar tax be paid on or with respect to this Guaranty, or, if any of the foregoing actions are
necessary, they have been duly taken.

          (g) Neither Guarantor nor its property has any immunity from jurisdiction of any court or from
any legal process (whether through service or notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise) under applicable law.

          (h) The incurrence of Guarantor’s obligations under this Guaranty will not cause Guarantor to
(i) become insolvent; (ii) be left with unreasonably small capital for any business or transaction
in which Guarantor is presently engaged or plans to be engaged; or (iii) be unable to pay its debts
as such debts mature.

          (i) Guarantor covenants, warrants, and represents to Bank that all representations and
warranties contained in this Guaranty shall be true at the time of Guarantor’s execution of this
Guaranty, and shall continue to be true and correct in all material respects on the date of each
Advance.

     Section 3. General Waivers. Guarantor waives:

          (a) Any right to require Bank to (i) proceed against Borrower or any other person; (ii)
proceed against or exhaust any security or (iii) pursue any other remedy. Bank may exercise or not
exercise any right or remedy it has against Borrower or any security it holds (including the right
to foreclose by judicial or nonjudicial sale) without affecting Guarantor’s liability hereunder.

          (b) Any defenses from disability or other defense of Borrower or from the cessation of
Borrowers liabilities.

          (c) Any setoff, defense or counterclaim against Bank.

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          (d) Any defense from the absence, impairment or loss of any right of reimbursement or
subrogation or any other rights against Borrower. Until Borrower’s obligations to Bank have been
paid, Guarantor has no right of subrogation or reimbursement or other rights against Borrower.

          (e) Any right to enforce any remedy that Bank has against Borrower.

          (f) Any rights to participate in any security held by Bank.

          (g) Any demands for performance, notices of nonperformance or of new or additional
indebtedness incurred by Borrower to Bank. Guarantor is responsible for being and keeping itself
informed of Borrower’s financial condition.

          (h) The benefit of any act or omission by Bank which directly or indirectly results in or aids
the discharge of Borrower from any of the Obligations by operation of law or otherwise.

          (i) The benefit of California Civil Code Section 2815 permitting the revocation of this
Guaranty as to future transactions and the benefit of California Civil Code Sections 2809, 2810,
2819, 2839, 2845, 2848, 2849, 2850, 2899 and 1432 with respect to certain suretyship defenses.

     Section 4. Real Property Security Waiver. Guarantor acknowledges that, to the extent
Guarantor has or may have rights of subrogation or reimbursement against Borrower for claims
arising out of this Guaranty, those rights may be impaired or destroyed if Bank elects to proceed
against any real property security of Borrower by non-judicial foreclosure. That impairment or
destruction could, under certain judicial cases and based on equitable principles of estoppel, give
rise to a defense by Guarantor against its obligations under this Guaranty. Guarantor waives that
defense and any others arising from Bank’s election to pursue non-judicial foreclosure. Without
limiting the generality of the foregoing, Guarantor expressly waives all rights, benefits and
defenses, if any, applicable or available to Guarantor under either California Code of Civil
Procedure Sections 580a or 726, which provide, among other things, that the amount of any
deficiency judgment which may be recovered following either a judicial or nonjudicial foreclosure
sale is limited to the difference between the amount of any indebtedness owed and the greater of
the fair value of the security or the amount for which the security was actually sold. Without
limiting the generality of the foregoing, Guarantor further expressly waives all rights, benefits
and defenses, if any, applicable or available to Guarantor under either California Code of Civil
Procedure Sections 580b, providing that no deficiency may be recovered on a real property purchase
money obligation, or 580d, providing that no deficiency may be recovered on a note secured by a
deed of trust on real property if the real property is sold under a power of sale contained in the
deed of trust.

     Section 5. Reinstatement. Notwithstanding any provision of the Loan Agreement to the
contrary, the liability of Guarantor hereunder shall be reinstated and revived and the rights of
Bank shall continue if and to the extent that for any reason any payment by or on behalf of
Guarantor or Borrower is rescinded or must be otherwise restored by Bank, whether as a result of
any proceedings in bankruptcy or reorganization or otherwise, all as though such amount had not
been paid. The determination as to whether any such payment must be rescinded or restored shall be
made by Bank in its sole discretion; provided, however, that if Bank chooses to contest any such
matter at the request of Guarantor, Guarantor agrees to indemnify and hold harmless Bank from all
costs and expenses (including, without limitation, reasonable attorneys’ fees) of such litigation.
To the extent any payment is rescinded or restored, Guarantor’s obligations hereunder shall be
revived in full force and effect without reduction or discharge for that payment.

     Section 6. No Waiver; Amendments. No failure on the part of Bank to exercise, no delay in
exercising and no course of dealing with respect to, any right hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law. This Guaranty may not be amended or
modified except by written

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agreement between Guarantor and Bank, and no consent or waiver hereunder shall be valid unless
in writing and signed by Bank.

     Section 7. Compromise and Settlement. No compromise, settlement, release, renewal, extension,
indulgence, change in, waiver or modification of any of the Obligations or the release or discharge
of Borrower from the performance of any of the Obligations shall release or discharge Guarantor
from this Guaranty or the performance of the obligations hereunder.

     Section 8. Notice. Any notice or other communication herein required or permitted to be given
shall be in writing and may be delivered in person or sent by facsimile transmission, overnight
courier, or by United States mail, registered or certified, return receipt requested, postage
prepaid and addressed as follows:`

	 	 	 	 	 
	 

	 	If to Guarantor:
	 	                                                            
	 

	 	 	 	c/o WebSideStory, Inc.
	 

	 	 	 	10182 Telesis Court
	 

	 	 	 	San Diego, CA 92121
	 

	 	 	 	Attention: Chief Financial Officer
	 

	 	 	 	Telephone No.: (858) 546-0040
	 

	 	 	 	Facsimile No.: (858) 546-0695
	 
	 	 	 	 
	 

	 	If to Bank:
	 	Silicon Valley Bank
	 

	 	 	 	3003 Tasman Drive
	 

	 	 	 	Santa Clara, CA 95054
	 

	 	 	 	Attention: Buzz Kreppel
	 

	 	 	 	Telephone No.: (858) 784-3321
	 

	 	 	 	Facsimile No.: (408) 748-9478

or at such other address as may be substituted by notice given as herein provided. Every notice,
demand, request, consent, approval, declaration or other communication hereunder shall be deemed to
have been duly given or served on the date on which personally delivered or sent by facsimile
transmission or three (3) Business Days after the same shall have been deposited in the United
States mail. If sent by overnight courier service, the date of delivery shall be deemed to be the
next Business Day after deposited with such service.

     Section 9. Entire Agreement. This Guaranty constitutes and contains the entire agreement of
the parties and supersedes any and all prior and contemporaneous agreements, negotiations,
correspondence, understandings and communications between Guarantor and Bank, whether written or
oral, respecting the subject matter hereof.

     Section 10. Severability. If any provision of this Guaranty is held to be unenforceable under
applicable law for any reason, it shall be adjusted, if possible, rather than voided in order to
achieve the intent of Guarantor and Bank to the extent possible. In any event, all other
provisions of this Guaranty shall be deemed valid and enforceable to the full extent possible under
applicable law.

     Section 11. Subordination of Indebtedness. Any indebtedness or other obligation of Borrower
now or hereafter held by or owing to Guarantor is hereby subordinated in time and right of payment
to all obligations of Borrower to Bank, except as such indebtedness or other obligation is
expressly permitted to be paid under the Credit Agreement; and such indebtedness of Borrower to
Guarantor is assigned to Bank as security for this Guaranty, and if Bank so requests shall be
collected, enforced and received by Guarantor in trust for Bank and to be paid over to Bank on
account of the Obligations of Borrower to Bank, but without reducing or affecting in any manner the
liability of Guarantor under the other provisions of this Guaranty. Any notes now or hereafter
evidencing such indebtedness of Borrower to Guarantor shall be marked with a legend that the same
are subject to this Guaranty and shall be delivered to Bank.

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     Section 12. Payment of Expenses. Guarantor shall pay, promptly on demand, all Expenses
incurred by Bank in defending and/or enforcing this Guaranty. For purposes hereof, “Expenses”
shall mean costs and expenses (including reasonable fees and disbursements of any law firm or other
external counsel and the allocated cost of internal legal services and all disbursements of
internal counsel) for defending and/or enforcing this Guaranty (including those incurred in
connection with appeals or proceedings by or against any Guarantor under the United States
Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit
of creditors, compositions, extensions generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief).

     Section 13. Assignment; Governing Law. This Guaranty shall be binding upon and inure to the
benefit of Guarantor and Bank and their respective successors and assigns, except that Guarantor
shall not have the right to assign its rights hereunder or any interest herein without the prior
written consent of Bank, which may be granted or withheld in Bank’s sole discretion. Any such
purported assignment by Guarantor without Bank’s written consent shall be void. This Guaranty
shall be governed by, and construed in accordance with, the laws of the State of California without
regard to principles thereof regarding conflict of laws.

     Section 14. PERSONAL JURISDICTION. GUARANTOR HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OF THE AGREEMENTS, DOCUMENTS OR INSTRUMENTS
DELIVERED IN CONNECTION HEREWITH MAY BE BROUGHT IN THE STATE AND FEDERAL COURTS LOCATED IN THE
STATE OF CALIFORNIA AS BANK MAY ELECT (PROVIDED THAT GUARANTOR ACKNOWLEDGES THAT ANY APPEALS FROM
THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE STATE OF CALIFORNIA), AND, BY
EXECUTION AND DELIVERY HEREOF, GUARANTOR ACCEPTS AND CONSENTS TO, GENERALLY AND UNCONDITIONALLY,
THE JURISDICTION OF THE AFORESAID COURTS AND AGREES THAT SUCH JURISDICTION SHALL BE EXCLUSIVE,
UNLESS WAIVED BY BANK IN WRITING, WITH RESPECT TO ANY ACTION OR PROCEEDING BROUGHT BY GUARANTOR
AGAINST BANK. NOTHING HEREIN SHALL LIMIT THE RIGHT OF BANK TO BRING PROCEEDINGS AGAINST GUARANTOR
IN THE COURTS OF ANY OTHER JURISDICTION. GUARANTOR HEREBY WAIVES, TO THE FULL EXTENT PERMITTED BY
LAW, ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE SAID COURTS ON THE
BASIS OF FORUM NON CONVENIENS.

     Section 15. WAIVER OF JURY TRIAL. EACH OF BANK AND GUARANTOR HEREBY WAIVES, TO THE FULL
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS GUARANTY AND ANY RELATED INSTRUMENTS, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.

[SIGNATURE PAGE FOLLOWS]

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     This Agreement is executed as of the date first above written.

	 	 	 	 	 
	GUARANTOR	GUARANTOR

 	 
	 	By:  	                
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

6EXHIBIT 4.1

                           MED GEN, INC.
                   NONQUALIFIED STOCK OPTION PLAN

The purpose of the Med Gen, Inc. Non-Qualified Stock Option Plan (the
"Plan") is to provide (i) designated employees of Med Gen, Inc.
(the"Company") and its subsidiaries (ii) certain Key Advisors (as
defined in Section 4(a)) who perform services for the Company or its
subsidiaries and (iii) non-employee members of the Board of Directors
of the Company (the "Board") with the opportunity to receive grants of
nonqualified stock options. The Company believes that the Plan will
encourage the participants to contribute materially to the growth of
the Company, thereby benefiting the Company's shareholders, and will
align the economic interests of the participants with those of the
shareholders.

1. Administration

(a)  Committee. The Plan shall be administered and interpreted by the
Board of Directors or a committee appointed by the Board (the Board of
Directors in such capacity or any committee appointed by the Board of
Directors is referred to hereafter as the "Committee"). The Committee
as appointed by the Board shall consist of two or more persons
appointed by the Board, all of whom may or may not be "outside
directors" as defined under section 162(m) of the Internal Revenue
Code of 1986, as amended (the "Code") and related Treasury regulations
and may be "non-employee directors" as defined under Rule 16b-3 under
the Securities Exchange Act of 1934, as amended (the "Exchange Act").

(b)  Committee Authority. The Committee shall have the sole authority
to (i) determine the individuals to whom grants shall be made under
the Plan, (ii) determine the type, size and terms of the grants to be
made to each such individual, (iii) determine the time when the grants
will be made and the duration of any applicable exercise or
restriction period, including the criteria for exercisability and the
acceleration of exercisability, (iv) amend the terms of an Outstanding
Grant at any time and (v) deal with any other matters arising under
the Plan.

(c)  Committee Determinations. The Committee shall have full power and
authority to administer and interpret the Plan, to make factual
determinations and to adopt or amend such rules, regulations,
agreements and instruments for implementing the Plan and for the
conduct of its business as it deems necessary or advisable, in its
sole discretion. The Committee's interpretations of the Plan and all
determinations made by the Committee pursuant to the powers vested in
it hereunder shall be conclusive and binding on all persons having any
interest in the Plan or in any awards granted hereunder. All powers of
the Committee shall be executed in its sole discretion, in the best
interest of the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly
situated individuals.

2. Grants

Awards under the Plan will consist of grants of nonqualified stock
options as described in Section 5 ("Nonqualified Stock Options,"
"Options" or "Grants.") All Grants shall be subject to the terms and
conditions set forth herein and to such other terms and conditions
consistent with this Plan as the Committee deems appropriate and as
are specified in writing by the Committee to the individual in a grant
instrument (the "Grant Instrument") or an amendment to the Grant
Instrument. In the event there is an inconsistency between the terms
of the Grant Instrument and the terms of the Plan, the terms of the
Plan shall govern. The Committee shall approve the form and provisions
of each Grant Instrument. Grants under a particular Section of the
Plan need not be uniform as among the grantees.

3. Shares Subject to the Plan

(a)  Shares Authorized. The aggregate number of shares of common stock
of the Company ("Company Stock") that may be issued or transferred
under the Plan is 300,000,000 shares. The maximum aggregate number of
shares of Company Stock that shall be subject to Grants made under the
Plan to any individual during any calendar year shall be as determined
by the Committee ("Award Limit"). The shares may be authorized but
unissued shares of Company Stock or reacquired shares of Company
Stock, including shares purchased by the Company on the open market

<PAGE>

for purposes of the Plan. If and to the extent Options granted under
the Plan terminate, expire, or are canceled, forfeited, exchanged or
surrendered without having been exercised, the shares subject to such
Grants shall again be available for purposes of the Plan. However, to
the extent Section 162(m) of the Code requires, such shares continue
to be counted against the Award Limit.

Adjustments. There shall be no adjustment in the number of shares
issued under the Plan in the event that there is any change in the
number or kind of shares of Company Stock outstanding (i) by reason
of a stock dividend, spinoff, recapitalization, stock split or
combination or exchange of shares, (ii) by reason of a merger,
reorganization or consolidation in which the Company is the surviving
corporation, (iii) by reason of a reclassification or change in par
value, or (iv) by reason of any other extraordinary or unusual event
affecting the outstanding Company Stock as a class without the
Company's receipt of consideration.

4. Eligibility for Participation

(a)  Eligible Persons.  All employees of the Company and its
subsidiaries ("Employees"), including Employees who are officers or
members of the Board, and members of the Board who are not Employees
("Non-Employee Directors") shall be eligible to participate in the
Plan. Key advisors and consultants who perform services to the Company
or any of its subsidiaries ("Key Advisors") shall be eligible to
participate in the Plan if the Key Advisors render bona fide services
and such services are not in connection with the offer or sale of
securities in a capital-raising transaction.

(b)  Selection of Grantees. The Committee shall select the
Employees, Non-Employee Directors and Key Advisors to receive Grants
and shall determine the number of shares of Company Stock subject to a
particular Grant in such manner as the Committee determines.
Employees, Key Advisors and Non-Employee Directors who receive Grants
under this Plan shall hereinafter be referred to as "Grantees."

5.  Granting of Options

(a)  Number of Shares. The Committee shall determine the number of
shares of Company Stock that will be subject to each Grant of Options
to Employees, Non-Employee Directors and Key Advisors.

(b)  Type of Option. All Options granted under this Plan will be Non-
Qualified Stock Options.

(c)  Option Term. The Committee shall determine the term of each
Option. The term of any Option shall not exceed ten years from the
date of grant.

(d)  Vesting and Exercisability of Options. Options shall vest and
become exercisable in accordance with such terms and conditions,
consistent with the Plan, as may be determined by the Committee and
specified in the Grant Instrument or an amendment to the Grant
Instrument. The Committee may accelerate the vesting and/or
exercisability of any or all outstanding Options at any time for any
reason. Options may, at the discretion of the Committee, be exercised
prior to vesting, provided that the optionee grants the Company a
right to repurchase any unvested shares at the exercise price upon
termination of the optionee's service to the Company.

(e)  Termination of Employment, Disability or Death.

(i)  Except as provided below, an Option may only be exercised while
the Grantee is employed by or otherwise providing service to the
Company as a Key Advisor or member of the Board. In the event that a
Grantee ceases to be employed by the Company for any reason other than
a "disability", or "termination for cause", any Option which is
otherwise exercisable by the Grantee shall terminate unless exercised
within one hundred eighty days after the date on which the Grantee
ceases to be employed by the Company (or within such other period of
time as may be specified in a Grant Instrument), but in any event no
later than the date of expiration of the Option term. Any of the
Grantee's Options that are not otherwise exercisable as of the date on
which the Grantee ceases to be employed by the Company shall terminate
as of such date (unless specified to the contrary in a Grant
Instrument).

<PAGE>

(ii) In the event the Grantee ceases to be employed by the Company on
account of a "termination for cause" by the Company, the unvested
portion of any Option held by the Grantee shall terminate on the date
on which the Grantee ceases to be employed by the Company. Any of the
Grantee's Options which are not otherwise exercisable as of the date
on which the Grantee ceases to be employed by the Company shall
terminate as of such date.

(iii) In the event the Grantee ceases to be employed by the Company
because the Grantee is "disabled", any Option which is otherwise
exercisable by the Grantee shall terminate unless exercised within one
year after the date on which the Grantee ceases to be employed by the
Company (or within such other period of time as may be specified in a
Grant Instrument), but in any event no later than the date of
expiration of the Option term. Any of the Grantee's Options which are
not otherwise exercisable as of the date on which the Grantee ceases
to be employed by the Company shall terminate as of such date (unless
specified to the contrary in a Grant Instrument).

(iv)  If the Grantee dies while employed by the Company or within 90
days after the date on which the Grantee ceases to be employed on
account of a termination of employment specified in Section 5(e)(i)
above (or within such other period of time as may be specified in a
Grant Instrument), any Option that is otherwise exercisable by the
Grantee shall terminate unless exercised within one year after the
date on which the Grantee ceases to be employed by the Company (or
within such other period of time as may be specified in a Grant
Instrument), but in any event no later than the date of expiration of
the Option term. Any of the Grantee's Options that are not otherwise
exercisable as of the date on which the Grantee ceases to be employed
by the Company shall terminate as of such date (unless specified to
the contrary in a Grant Instrument).

(v) For purposes of Sections 5(e) and 6:

(A) "Company," when used in the phrase "employed by the Company,"
shall mean the Company and its parent and subsidiary corporations.

(B) "Employed by the Company" shall mean employment or service as a
Key Advisor or member of the Board (so that, for purposes of
exercising Options and satisfying conditions with respect to
Restricted Stock, a Grantee shall not be considered to have terminated
employment or service until the Grantee ceases to be a Key Advisor and
member of the Board), unless the Committee determines otherwise.

(C) "Disability" shall mean a Grantee's becoming disabled within the
meaning of section 22(e)(3) of the Code or otherwise as defined in an
employment consultant or other agreement between the Company and the
Grantee.

(D) "Termination for cause" shall mean, except to the extent specified
otherwise by the Committee or otherwise as defined in a consultant or
other agreement between the Company and the Grantee, a finding by the
Committee that the Grantee has breached his or her employment,
service, noncompetition, nonsolicitation or other similar contract
with the Company, or has been engaged in disloyalty to the Company,
including, without limitation, fraud, embezzlement, theft, commission
of a felony or dishonesty in the course of his or her employment or
service, or has disclosed trade secrets or confidential information of
the Company to persons not entitled to receive such information. A
Grant Instrument may provide that in the event a Grantee's employment
is terminated for cause, in addition to the immediate termination of
all Grants, the Grantee shall automatically forfeit all shares
underlying any exercised portion of an Option, upon refund by the
Company of the Exercise Price paid by the Grantee for such shares, and
any option gain realized by the Grantee from exercising all or a
portion of an Option within the two-year period prior to the event
shall be paid by the Grantee to the Company.

(E) Exercise of Options. A Grantee may exercise an Option that has
become exercisable, in whole or in part, by delivering a notice of
exercise to the Company with payment of the Exercise Price. The
Grantee shall pay the Exercise Price for an Option as specified by the
Committee (x) in cash, (y) with the approval of the Committee, by
delivering shares of Company Stock owned by the Grantee for the period
necessary to avoid a charge to the Company's earnings for financial
reporting purposes (including Company Stock acquired in connection
with the exercise of an Option, subject to such restrictions as the
Committee deems appropriate) and having a Fair Market Value on the
date of exercise equal to the Exercise Price or (z) by such other
method as the Committee may approve, including payment through a
broker in accordance with procedures permitted by Regulation T of the
Federal Reserve Board. Shares of Company Stock used to exercise an
Option shall have been held by the Grantee for the requisite period of

<PAGE>

time to avoid adverse accounting consequences to the Company with
respect to the Option. The Grantee shall pay the Exercise Price and
the amount of any withholding tax due (pursuant to Section 7) at the
time of exercise.

7. Withholding of Taxes

(a)  Required Withholding. All Grants under the Plan shall be subject
to applicable federal (including FICA), state and local tax
withholding requirements. The Company shall have the right to deduct
from all Grants paid in cash, or from other wages paid to the Grantee,
any federal, state or local taxes required by law to be withheld with
respect to such Grants. In the case of Options and other Grants paid
in Company Stock, the Company may require the Grantee or other person
receiving such shares to pay to the Company the amount of any such
taxes that the Company is required to withhold with respect to such
Grants, or the Company may deduct from other wages paid by the Company
the amount of any withholding taxes due with respect to such Grants.

(b)  Election to Withhold Shares. If the Committee so permits, a
Grantee may elect to satisfy the Company's income tax withholding
obligation with respect to an Option or Restricted Stock paid in
Company Stock by having shares withheld up to an amount that does not
exceed the Grantee's maximum marginal tax rate for federal (including
FICA), state and local tax liabilities. The election must be in a form
and manner prescribed by the Committee and shall be subject to the
prior approval of the Committee.

8.   Transferability of Grants

(a)  Nontransferability of Grants. Except as provided below, only the
Grantee may exercise rights under a Grant during the Grantee's
lifetime. A Grantee may not transfer those rights except by will or by
the laws of descent and distribution, and then only if and to the
extent permitted in any specific case by the Committee, pursuant to a
domestic relations order (as defined under the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, or the
regulations there under). When a Grantee dies, the personal
representative or other person entitled to succeed to the rights of
the Grantee ("Successor Grantee") may exercise such rights. A
Successor Grantee must furnish proof satisfactory to the Company of
his or her right to receive the Grant under the Grantee's will or
under the applicable laws of descent and distribution.

(b)  Transfer of Nonqualified Stock Options. Notwithstanding the
foregoing, the Committee may provide, in a Grant Instrument, that a
Grantee may transfer Nonqualified Stock Options to family members or
other persons or entities according to such terms as the Committee may
determine; provided that (1) the Grantee receives no consideration for
the transfer of an Option, (2) such transfers complies with all
applicable laws (including, but not limited to federal securities laws
requirements, specifically any requirements for options registered on
Form S-8 registration statements, state securities laws, Florida
corporate law, etc and (3) the transferred Option shall continue to be
subject to the same terms and conditions as were applicable to the
Option immediately before the transfer.

9.   Reorganization of the Company.

(a)  Reorganization. As used herein, a "Change of Control" shall be
deemed to have occurred upon the consummation of any of the following
transactions: (i) any merger or consolidation of the Company or other
transaction (other than sales of equity by the Company for the purpose
of raising cash for its own account) where the shareholders of the
Company immediately prior to such transaction will not beneficially
own immediately after such transaction shares entitling such
shareholders to more than 50% of all votes to which all shareholders
of the surviving corporation would be entitled in the election of
directors (without consideration of the rights of any class of stock
to elect directors by a separate class vote); or (ii) the sale or
other disposition of all or substantially all of the assets of the
Company.

(b)  Assumption of Grants. Upon a Change of Control where the Company
is not the surviving corporation (or survives only as a subsidiary of
another corporation), the Company shall provide that either (i) all
outstanding Options that are not exercised shall be assumed by, or
replaced with comparable options or rights by, the surviving
corporation, (ii) the Company or the surviving company shall pay to
each Grantee an amount equal to the product of (x) the number of
Options then vested and exercisable, multiplied by (ii) the Fair
Market Value per share less the Exercise Price per Option, or (iii)
the Committee may, in its sole discretion, accelerate the vesting of
some or all of the Grants.

<PAGE>

(c)  Notice and Acceleration. Upon a Change of Control, the Company
shall provide each Grantee who has outstanding Grants with written
notice of such Change of Control. The Committee may, in its sole
discretion, provide in a Grant Instrument that upon a Change of
Control (i) all outstanding Options shall automatically accelerate and
become fully exercisable, and (ii) the restrictions and conditions on
all outstanding Restricted Stock shall immediately lapse. If the
Committee does not provide such terms in the Grant Instrument, a
Change of Control will not impact a Grant.

10.  Limitations on Issuance or Transfer of Shares.

No Company Stock shall be issued or transferred in connection with any
Grant hereunder unless and until all legal requirements applicable to
the issuance or transfer of such Company Stock have been complied with
to the satisfaction of the Committee. The Committee shall have the
right to condition any Grant made to any Grantee hereunder on such
Grantee's undertaking in writing to comply with such restrictions on
his or her subsequent disposition of such shares of Company Stock as
the Committee shall deem necessary or advisable as a result of any
applicable law, regulation or official interpretation thereof, and
certificates representing such shares may be legended to reflect any
such restrictions. Certificates representing shares of Company Stock
issued or transferred under the Plan will be subject to such stop-
transfer orders and other restrictions as may be required by
applicable laws, regulations and interpretations, including any
requirement that a legend be placed thereon.

11.  Amendment and Termination of the Plan

(a)  Amendment. The Board may amend or terminate the Plan at any time;
provided, however, that the Board shall not amend the Plan without
shareholder approval if such approval is required by Section l62(m) of
the Code.

(b)  Termination of Plan. The Plan shall terminate on February 21,
2017, the day immediately preceding the tenth anniversary of its
effective date, unless the Plan is terminated earlier by the Board or
is extended by the Board with the approval of the shareholders.

(c)  Termination and Amendment of Outstanding Grants. The terms of an
Outstanding Grant may be amended at any time. The term within which
the option may be exercised may be increased or decreased and the
exercise price may be increased or decreased. The termination of the
Plan shall not impair the power and authority of the Committee with
respect to an outstanding Grant. Whether or not the Plan has
terminated, an outstanding Grant may be terminated or amended in
accordance with the Plan or, may be amended by agreement of the
Company and the Grantee consistent with the Plan.

(d)  Governing Document. The Plan shall be the controlling document. No
other statements, representations, explanatory materials or examples,
oral or written, may amend the Plan in any manner. The Plan shall be
binding upon and enforceable against the Company and its successors
and assigns.

12. Funding of the Plan

This Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other
segregation of assets to assure the payment of any Grants under this
Plan. In no event shall interest be paid or accrued on any Grant,
including unpaid installments of Grants.

<PAGE>

13. Rights of Participants

Nothing in this Plan shall entitle any Key Advisor or other person to
any claim or right to be granted a Grant under this Plan. Neither this
Plan nor any action taken hereunder shall be construed as giving any
individual any rights to be retained by or in the employ of the
Company or any other employment rights.

14. No Fractional Shares.

No fractional shares of Company Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine
whether cash, other awards or other property shall be issued or paid
in lieu of such fractional shares or whether such fractional shares or
any rights thereto shall be forfeited or otherwise eliminated.

15.  Headings.

Section headings are for reference only. In the event of a conflict
between a title and the content of a Section, the content of the
Section shall control.

16.  Effective Date of the Plan

(a)  Effective Date. The Plan shall be effective as of February 22, 2007.

(b) Public Offering. The provisions of the Plan that refer to a Public
Offering, or that refer to, or are applicable to persons subject to,
Section 16 of the Exchange Act or section 162(m) of the Code, shall be
effective for so long as such stock is so registered.
17. Miscellaneous

(a) Grants in Connection with Corporate Transactions and Otherwise.
Nothing contained in this Plan shall be construed to (i) limit the
right of the Committee to make Grants under this Plan in connection
with the acquisition, by purchase, lease, merger, consolidation or
otherwise, of the business or assets of any corporation, firm or
association, or for other proper corporate purposes, or (ii) limit the
right of the Company to grant stock options or make other awards
outside of this Plan. The terms and conditions of the substitute
grants may vary from the terms and conditions required by the Plan and
from those of the substituted stock incentives. The Committee shall
prescribe the provisions of the substitute grants.

(b)  Loans. The Committee may, in its discretion, extend a loan in
connection with the exercise or receipt of a grant under this Plan.
The terms and conditions of any such loan shall be set by the
Committee.

(c)  Compliance with Law. The Plan, the exercise of Options and the
obligations of the Company to issue or transfer shares of Company
Stock under Grants shall be subject to all applicable laws and to
approvals by any governmental or regulatory agency as may be required.
With respect to persons subject to section 16 of the Exchange Act, it
is the intent of the Company that the Plan and all transactions under
the Plan comply with all applicable provisions of Rule 16b-3 or its
successors under the Exchange Act. The Committee may revoke any Grant
if it is contrary to law or modify a Grant to bring it into compliance
with any valid and mandatory government regulation. The Committee may
also adopt rules regarding the withholding of taxes on payments to
Grantees. The Committee may, in its sole discretion, agree to limit
its authority under this Section.

(d) Governing Law. The validity, construction, interpretation and
effect of the Plan and Grant Instruments issued under the Plan shall
exclusively be governed by and determined in accordance with the law
of the State of Florida, without regard to conflicts of laws
principles.

<PAGE>

Dated as of February 22, 2007.

Med Gen, Inc.

By: /s/Paul S. Mitchell
--------------------------------
    Paul S. Mitchell, President

<PAGE>

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