Document:

Exhibit 4.5

                              CONSULTING AGREEMENT

This Consulting Agreement (the "Consulting Agreement") made as of September 9,
2002, by and between Owen Naccarato, 19600 Fairchild, Suite 260, Irvine, CA
92612 ("Consultant") and eSynch Corporation (hereinafter referred to as the
"Company") with offices at 3511 W. Sunflower Ave. Suite 250 Santa Ana, CA 92704
(the "Company").

                                   WITNESSETH

WHEREAS, the Company requires and will continue to require consulting services
relating management, strategic planning and marketing in connection with its
business; and

WHEREAS, Consultant can provide the Company with strategic planning and
marketing consulting services and is desirous of performing such services for
the Company; and

WHEREAS, the Company wishes to induce Consultant to provide these consulting
services to the Company,

NOW, THEREFORE, in consideration of the mutual covenants hereinafter stated, it
is agreed as follows:

     1.     APPOINTMENT.
            -----------

     The Company hereby engages Consultant and Consultant agrees to render
services to the Company as a consultant upon the terms and conditions
hereinafter set forth.

     2.     TERM.
            ----

     The term of this Consulting Agreement began as of the date of this
Agreement, and shall terminate on September 8, 2003, unless earlier terminated
in accordance with paragraph 7 herein or extended as agreed to between the
parties.

     3.     SERVICES.
            --------

     During the term of this Agreement, Consultant shall provide advice to
undertake for and consult with the Company concerning management, marketing,
consulting, strategic planning, corporate organization and structure, financial
matters in connection with the operation of the businesses of the Company,
expansion of services, acquisitions and business opportunities, and shall review
and advise the Company regarding its overall progress, needs and condition.
Consultant agrees to provide on a timely basis the following enumerated services
plus any additional services contemplated thereby:

     (a)     The implementation of short-range and long-term strategic planning
to fully develop and enhance the Company's assets, resources, products and
services; and

     (b)     Advise the Company relative to its legal needs relating
specifically to its corporate transactional needs.

     4.     DUTIES OF THE COMPANY.
            ------------------------

     The Company shall provide Consultant, on a regular and timely basis, with
all approved data and information about it, its subsidiaries, its management,
its products and services and its operations as shall be reasonably requested by
Consultant, and shall advise Consultant of any facts which would affect the
accuracy of any data and information previously supplied pursuant to this
paragraph. The Company shall promptly supply Consultant with full and complete
copies of all financial reports, all fillings with all federal and state
securities agencies; with full and complete copies of all stockholder reports;
with all data and information supplied by any financial analyst, and with all
brochures or other sales materials relating to its products or services.

     5.     COMPENSATION.
            ------------

Upon the execution of this Agreement, Company agrees to pay Consultant the
following as consideration for the services rendered under this Agreement:

(a) Company shall grant the consultant 200,000 shares of the Company's common
stock.

(b) The Compensation outlined in Section 5(a) above shall be conveyed through an
effective S-8 registration of common shares. Within 3 days of the effectiveness
of the S-8 Registration Statement, the Company shall execute a written request
to its transfer agent to prepare and deliver to Consultant, or it's agent, one
common stock certificate for 200,000 freely tradable, non-legend, shares of the
Company's common stock.

     6.     REPRESENTATION AND INDEMNIFICATION.
            ------------------------------------

     The Company shall be deemed to have been made a continuing representation
of the accuracy of any and all facts, material information and data which it
supplies to Consultant and acknowledges its awareness that Consultant will rely
on such continuing representation in disseminating such information and
otherwise performing its advisory functions. Consultant in the absence of notice
in writing from the Company, will rely on the continuing accuracy of material,
information and data supplied by the Company. Consultant represents that he has
knowledge of and is experienced in providing the aforementioned services.

     7.     MISCELLANEOUS.
            -------------

     Termination:     This Agreement may be terminated by either Party upon
written notice to the other Party for any reason which shall be effective five
(5) business days from the date of such notice. This Agreement shall be
terminated immediately upon written notice for material breach of this
Agreement.

     Modification:     This Consulting Agreement sets forth the entire
understanding of the Parties with respect to the subject matter hereof. This
Consulting Agreement may be amended only in writing signed by both Parties.

     Notices:     Any notice required or permitted to be given hereunder shall
be in writing and shall be mailed or otherwise delivered in person or by
facsimile transmission at the address of such Party set forth above or to such
other address or facsimile telephone number as the Party shall have furnished in
writing to the other Party.

     Waiver:     Any waiver by either Party of a breach of any provision of this
Consulting Agreement shall not operate as or be construed to be a waiver of any
other breach of that provision or of any breach of any other provision of this
Consulting Agreement. The failure of a Party to insist upon strict adherence to
any term of this Consulting Agreement on one or more occasions will not be
considered a waiver or deprive that Party of the right thereafter to insist upon
adherence to that term of any other term of this Consulting Agreement.

     Assignment:     The Options under this Agreement are assignable at the
discretion of the Consultant.

     Severability:     If any provision of this Consulting Agreement is invalid,
illegal, or unenforceable, the balance of this Consulting Agreement shall remain
in effect, and if any provision is inapplicable to any person or circumstance,
it shall nevertheless remain applicable to all other persons and circumstances.

     Disagreements:  Any dispute or other disagreement arising from or out of
this Consulting Agreement shall be submitted to arbitration under the rules of
the American Arbitration Association and the decision of the arbiter(s) shall be
enforceable in any court having jurisdiction thereof. Arbitration shall occur
only in Los Angeles County, CA. The interpretation and the enforcement of this
Agreement shall be governed by California Law as applied to residents of the
State of California relating to contracts executed in and to be performed solely
within the State of California. In the event any dispute is arbitrated, the
prevailing Party (as determined by the arbiter(s)) shall be entitled to recover
that Party's reasonable attorney's fees incurred (as determined by the
arbiter(s)).

     IN WITNESS WHEREOF, this Consulting Agreement has been executed by the
Parties as of the date first above written.

eSynch Corporation                              Consultant

/s/ Thomas Hemingway                         /s/Owen Naccarato______
----------------------                        ---------------------------
Thomas Hemingway                                Owen Naccarato
Chief Executive Officer

<PAGE>Exhibit 10.1

                               ESYNCH CORPORATION
                            1999 STOCK INCENTIVE PLAN

This 1999 STOCK INCENTIVE PLAN (the "Plan") is hereby established by eSynch
Corporation, a Delaware corporation (the "Company"), as adopted by its Board of
Directors as of August __, 1999 (the "Effective Date").

                              PURPOSES OF THE PLAN.
The purposes of the Plan are (a) to enhance the Company's ability to attract and
retain the services of qualified employees, officers and directors (including
non-employee officers and directors), and consultants and other service
providers upon whose judgment, initiative and efforts the successful conduct and
development of the Company's business largely depends, and (b) to provide
additional incentives to such persons or entities to devote their utmost effort
and skill to the advancement and betterment of the Company, by providing them an
opportunity to participate in the ownership of the Company and thereby have an
interest in the success and increased value of the Company.
                                  DEFINITIONS.
For purposes of this Plan, the following terms shall have the meanings
indicated:
                                 ADMINISTRATOR.
"Administrator" means the Board or, if the Board delegates responsibility for
any matter to the Committee, the term Administrator shall mean the Committee.
                               AFFILIATED COMPANY.
"Affiliated Company" means any "parent corporation" or "subsidiary corporation"
of the Company, whether now existing or hereafter created or acquired, as those
terms are defined in Sections 424(e) and 424(f) of the Code, respectively.
                                     BOARD.
"Board" means the Board of Directors of the Company.
                               CHANGE IN CONTROL.
"Change in Control" shall mean (i) the acquisition, directly or indirectly, by
any person or group (within the meaning of Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended) of the beneficial ownership of securities of
the Company possessing more than fifty percent (50%) of the total combined
voting power of all outstanding securities of the Company; (ii) a merger or
consolidation in which the Company is not the surviving entity, except for a
transaction in which the holders of the outstanding voting securities of the
Company immediately prior to such merger or consolidation hold, in the
aggregate, securities possessing more than fifty percent (50%) of the total
combined voting power of all outstanding voting securities of the surviving
entity immediately after such merger or consolidation; (iii) a reverse merger in
which the Company is the surviving entity but in which securities possessing
more than fifty percent (50%) of the total combined voting power of all
outstanding voting securities of the Company are transferred to or acquired by a
person or persons different from the persons holding those securities
immediately prior to such merger; (iv) the sale, transfer or other disposition
(in one transaction or a series of related transactions) of all or substantially
all of the assets of the Company; or (v) the approval by the stockholders of a
plan or proposal for the liquidation or dissolution of the Company.
                                      CODE.
"Code" means the Internal Revenue Code of 1986, as amended from time to time.
                                   COMMITTEE.
"Committee" means a committee of two or more members of the Board appointed to
administer the Plan, as set forth in Section 7.1 hereof.
                                  COMMON STOCK.
"Common Stock" means the Common Stock, par value $0.001 per share, of the
Company, subject to adjustment pursuant to Section 4.2 hereof.
                               CONTINUOUS SERVICE.
"Continuous Service" shall mean--
(a) employment by either the Company or any parent or subsidiary corporation of
the Company, or by a corporation or a parent or subsidiary of a corporation
issuing or assuming a stock option in a transaction to which Section 424(a) of
the Code applies, which is uninterrupted except for vacations, illness (except
for permanent disability, as defined in Section 22(e)(3) of the Code), or leaves
of absence which are approved in writing by the Company or any of such other
employer corporations, if applicable,
(b) service as a member of the Board of Directors of the Company until Optionee
resigns, is removed from office, or Optionee's term of office expires and he or
she is not reelected, or
(c) so long as Optionee is engaged as a consultant or service provider to the
Company or any corporation referred to in clause (a) above.
                                   DISABILITY.
"Disability" means permanent and total disability as defined in Section 22(e)(3)
of the Code. The Administrator's determination of a Disability or the absence
thereof shall be conclusive and binding on all interested parties.
                                 EFFECTIVE DATE.
"Effective Date" means the date on which the Plan is adopted by the Board, as
set forth on the first page hereof.
                                 EXERCISE PRICE.
"Exercise Price" means the purchase price per share of Common Stock payable upon
exercise of an Option.
                               FAIR MARKET VALUE.
"Fair Market Value" on any given date means the value of one share of Common
Stock, determined as follows:
(a) If the Common Stock is then listed or admitted to trading on the Nasdaq
Stock Market or a stock exchange which reports closing sale prices, the Fair
Market Value shall be the closing sale price on the date of valuation as so
reported by the principal system or exchange on which the Common Stock is
traded, or, if no closing sale price is reported on such day, then the Fair
Market Value shall be the closing sale price of the Common Stock as so reported
on the next preceding day on which a closing sale price is reported. (b) If the
Common Stock is not then listed or admitted to trading on the Nasdaq Stock
Market or a stock exchange which reports closing sale prices, the Fair Market
Value shall be the average of the reported closing bid and asked prices of the
Common Stock in the over-the-counter market on the date of valuation. (c) If
neither (a) nor (b) is applicable as of the date of valuation, then the Fair
Market Value shall be determined by the Administrator in good faith using any
reasonable method of evaluation, which determination shall be conclusive and
binding on all interested parties.
                                HOSTILE TAKEOVER.
"Hostile Takeover" shall mean either of the following events effecting a change
in control or ownership of the Company:
(a) the acquisition, directly or indirectly, by any person or related group of
persons (other than the Company or a person that directly or indirectly
controls, is controlled by, or is under common control with, the Company) of
beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total combined voting
power of the Company's outstanding securities pursuant to a tender or exchange
offer made directly to the Company's stockholders which the Board does not
recommend such stockholders to accept, or
(b) a change in the composition of the Board over a period of thirty-six (36)
consecutive months or less such that a majority of the Board members ceases, by
reason of one or more contested elections for Board membership, to be comprised
of individuals who either (A) have been Board members continuously since the
beginning of such period or (B) have been elected or nominated for election as
Board members during such period by at least a majority of the Board members
described in clause (A) who were still in office at the time the Board approved
such election or nomination.

                                INCENTIVE OPTION.
"Incentive Option" means any Option designated and qualified as an "incentive
stock option" as defined in Section 422 of the Code.
                                  NASD DEALER.
"NASD Dealer" means a broker-dealer that is a member of the National Association
of Securities Dealers, Inc.
                              NONQUALIFIED OPTION.
"Nonqualified Option" means any Option that is not an Incentive Option. To the
extent that any Option designated as an Incentive Option fails in whole or in
part to qualify as an Incentive Option, including, without limitation, for
failure to meet the limitations applicable to a 10% Stockholder or because it
exceeds the annual limit provided for in Section 5.6 below, it shall to that
extent constitute a Nonqualified Option.
                                    OFFEREE.
"Offeree" means a Participant to whom a Right to Purchase has been offered or
who has acquired Restricted Stock under the Plan.
                                     OPTION.
"Option" means any option to purchase Common Stock granted pursuant to the Plan.
                                OPTION AGREEMENT.
"Option Agreement" means the written agreement entered into between the Company
and the Optionee with respect to an Option granted under the Plan.
                                    OPTIONEE.
"Optionee" means a Participant who holds an Option.
                                  PARTICIPANT.
"Participant" means an individual or entity who holds an Option, a Right to
Purchase or Restricted Stock under the Plan.
                                PUBLIC OFFERING.
"Public Offering" shall mean the sale to the public and closing of an
underwritten public offering of the Company's Common Stock that is registered
under the Securities Act of 1933.
                                 PURCHASE PRICE.
"Purchase Price" means the purchase price per share of Restricted Stock payable
upon acceptance of a Right to Purchase.
                                RESTRICTED STOCK.
"Restricted Stock" means shares of Common Stock issued, subject to any
restrictions and conditions as are established, pursuant to Section 6.
                      RESTRICTED STOCK PURCHASE AGREEMENT.
"Restricted Stock Purchase Agreement" means the written agreement entered into
between the Company and the Offeree with respect to a Right to Purchase offered
under the Plan.
                               RIGHT TO PURCHASE.
"Right to Purchase" means a right to purchase Restricted Stock granted to an
Offeree pursuant to Section 6 hereof.
                                SERVICE PROVIDER.
"Service Provider" means a consultant or other person or entity who provides
advice or other services to the Company or an Affiliated Company and who the
Administrator authorizes to become a Participant in the Plan.
                                10% STOCKHOLDER.
"10% Stockholder" means a person who, as of a relevant date, owns or is deemed
to own (by reason of the attribution rules applicable under Section 424(d) of
the Code) stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company or of an Affiliated Company.

                                  ELIGIBILITY.
                               INCENTIVE OPTIONS.
Officers and other key employees of the Company or of an Affiliated Company
(including members of the Board if they are employees of the Company or of an
Affiliated Company) are eligible to receive Incentive Options under the Plan.
                  NONQUALIFIED OPTIONS AND RIGHTS TO PURCHASE.
Officers and other key employees of the Company or of an Affiliated Company,
members of the Board (whether or not employed by the Company or an Affiliated
Company), and Service Providers are eligible to receive Nonqualified Options or
Rights to Purchase under the Plan.
                              LIMITATION ON SHARES.
In no event shall any Participant be granted Options or Rights to Purchase in
any one calendar year pursuant to which more than 500,000 shares of Common Stock
may be acquired.

                                  PLAN SHARES.
                           SHARES SUBJECT TO THE PLAN.
A total of 3,000,000 shares of Common Stock may be issued under the Plan,
subject to adjustment as to the number and kind of shares pursuant to Section
4.2 hereof. For purposes of this limitation, in the event that (a) all or any
portion of any Option or Right to Purchase granted or offered under the Plan can
no longer under any circumstances be exercised, or (b) any shares of Common
Stock are reacquired by the Company pursuant to an Option Agreement or
Restricted Stock Purchase Agreement, the shares of Common Stock allocable to the
unexercised portion of such Option or such Right to Purchase, or the shares so
reacquired, shall again be available for grant or issuance under the Plan.
                          CHANGES IN CAPITAL STRUCTURE.
If the then outstanding shares of Common Stock are increased or decreased or
changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of a recapitalization, stock split,
combination of shares, reclassification, stock dividend, or other similar change
in the capital structure of the Company, then appropriate adjustments shall be
made by the Administrator to the aggregate number and kind of shares subject to
this Plan, and the number and kind of shares and the price per share subject to
outstanding Option Agreements, Rights to Purchase and Restricted Stock Purchase
Agreements in order to preserve, as nearly as practical, but not to increase,
the benefits to Participants.

                                    OPTIONS.
                                OPTION AGREEMENT.
Each Option granted pursuant to this Plan shall be evidenced by an Option
Agreement which shall specify the number of shares subject thereto, the Exercise
Price per share, and whether the Option is an Incentive Option or Nonqualified
Option. As soon as is practical following the grant of an Option, an Option
Agreement shall be duly executed and delivered by or on behalf of the Company to
the Optionee to whom such Option was granted. Each Option Agreement shall be in
such form and contain such additional terms and conditions, not inconsistent
with the provisions of this Plan, as the Administrator shall, from time to time,
deem desirable, including, without limitation, the imposition of any first
rights of refusal and resale restrictions or repurchase rights upon any shares
of Common Stock acquired pursuant to an Option Agreement. Each Option Agreement
may be different from each other Option Agreement in any respect.
                                 EXERCISE PRICE.
The Exercise Price per share of Common Stock covered by each Option shall be
determined by the Administrator, subject to the following: (a) the Exercise
Price of an Incentive Option shall not be less than 100% of Fair Market Value on
the date the Incentive Option is granted, (b) the Exercise Price of a
Nonqualified Option shall not be less than 85% of Fair Market Value on the date
the Nonqualified Option is granted (or 100% as to a Nonqualified Option granted
to a 10% Stockholder), and (c) if the person to whom an Incentive Option is
granted is a 10% Stockholder on the date of grant, the Exercise Price shall not
be less than 110% of Fair Market Value on the date the Option is granted.
                           PAYMENT OF EXERCISE PRICE.
Payment of the Exercise Price shall be made upon exercise of an Option and may
be made, in the discretion of the Administrator, subject to any legal
restrictions, by--
(a)  cash;
(b)  check;
(c) the surrender of shares of Common Stock owned by the Optionee that have been
held by the Optionee for at least six (6) months, which surrendered shares shall
be valued at Fair Market Value as of the date of such exercise; (d) the
Optionee's promissory note in a form and on terms acceptable to the
Administrator;
(e) the cancellation of indebtedness of the Company to the Optionee;
(f) the waiver of compensation due or accrued to the Optionee for services
rendered;
(g) provided that a public market for the Common Stock exists, a "same day sale"
commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably
elects to exercise the Option and to sell a portion of the shares so purchased
to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such shares to forward the Exercise Price directly to the
Company;
(h) provided that a public market for the Common Stock exists, a "margin"
commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably
elects to exercise the Option and to pledge the shares so purchased to the NASD
Dealer in a margin account as security for a loan from the NASD Dealer in the
amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits
upon receipt of such shares to forward the Exercise Price directly to the
Company; or
(i) any combination of the foregoing methods of payment or any other
consideration or method of payment as shall be permitted by applicable corporate
law.

                        TERM AND TERMINATION OF OPTIONS.
The term and provisions for termination of each Option shall be as fixed by the
Administrator, but no Option may be exercisable more than ten (10) years after
the date it is granted. An Incentive Option granted to a person who is a 10%
Stockholder on the date of grant shall not be exercisable more than five (5)
years after the date it is granted.
                        VESTING AND EXERCISE OF OPTIONS.
Each Option shall vest and become exercisable in one or more installments at
such time or times and subject to such conditions, including without limitation
the achievement of specified performance goals or objectives, as shall be
determined by the Administrator; provided, however that Options granted to
employees who are not officers, directors or Service Providers shall vest and
become exercisable in installments at a minimum rate of 20% per year over a
period of five (5) years from the date the Option is granted.
                       ANNUAL LIMIT ON INCENTIVE OPTIONS.
To the extent required for "incentive stock option" treatment under Section 422
of the Code, the aggregate Fair Market Value (determined as of the time of
grant) of the Common Stock shall not, with respect to which Incentive Options
granted under this Plan and any other plan of the Company or any Affiliated
Company become exercisable for the first time by an Optionee during any calendar
year, exceed $100,000. To the extent such dollar limitation is exceeded, the
excess portion of such Option shall be exercisable as a Nonqualified Option
under the Federal tax laws.
                            LIMITED TRANSFERABILITY.
No Incentive Option or Nonqualified Options shall be assignable or transferable
except by will or the laws of descent and distribution, and during the life of
the Optionee shall be exercisable only by such Optionee. Notwithstanding the
foregoing, shares purchased upon exercise of Nonqualified Options may be
transferred, if the transferee agrees to be bound by the same transfer
restrictions applicable to the Participant, in connection with the Optionee's
estate plan, be assigned in whole or in part, during the Optionee's lifetime to
one or more members of the Optionee's immediate family, including any parent,
descendant, spouse, brother, sister, grandparent, grandchild, dependent, or
member of their immediate families, or to a trust established exclusively for
one or more such persons. The terms applicable to the assigned portion of the
shares shall be the same as those in effect for the option immediately prior to
such assignment and shall be set forth in such documents issued to the assignee
as the Administrator may deem appropriate. In the event that applicable tax law
and federal and state securities laws permit transfer of Options in any
particular case, then with the consent of the Administrator in such case, an
Option may be transferred consistent with restrictions under law and subject to
any terms or restrictions imposed by the Administrator.
                             RIGHTS AS STOCKHOLDER.
An Optionee or permitted transferee of an Option shall have no rights or
privileges as a stockholder with respect to any shares covered by an Option
until such Option has been duly exercised and certificates representing shares
purchased upon such exercise have been issued to such person.
                          COMPANY'S REPURCHASE RIGHTS.
In the event of termination of a Participant's Continuous Service for any reason
whatsoever (including death or disability), the Option Agreement may provide, in
the discretion of the Administrator, that the Company, or its assignee, shall
have the right, exercisable at the discretion of the Administrator, to
repurchase shares of Common Stock acquired pursuant to the exercise of an Option
at any time, at any price, and on any terms as set forth in the Option Agreement
evidencing such Options.
               RESTRICTIONS ON UNDERLYING SHARES OF COMMON STOCK.
Shares of Common Stock issued pursuant to the exercise of an Option may not be
sold, assigned, transferred, pledged or otherwise encumbered or disposed of
except as specifically provided in the Option Agreement.

                               RIGHTS TO PURCHASE.
                          NATURE OF RIGHT TO PURCHASE.
A Right to Purchase granted to an Offeree entitles the Offeree to purchase, for
a Purchase Price determined by the Administrator, shares of Common Stock subject
to such terms, restrictions and conditions as the Administrator may determine at
the time of grant ("Restricted Stock"). Such conditions may include, but are not
limited to, Continuous Service or the achievement of specified performance goals
or objectives. The Administrator shall have the discretion to grant options, or
amend outstanding options, such that the unvested portion of options are
exercisable for Restricted Stock.
                        ACCEPTANCE OF RIGHT TO PURCHASE.
An Offeree shall have no rights with respect to the Restricted Stock subject to
a Right to Purchase unless the Offeree shall have accepted the Right to Purchase
within ten (10) days (or such longer or shorter period as the Administrator may
specify) following the grant of the Right to Purchase by making payment of the
full Purchase Price to the Company in the manner set forth in Section 6.3 hereof
and by executing and delivering to the Company a Restricted Stock Purchase
Agreement. Each Restricted Stock Purchase Agreement shall be in such form, and
shall set forth the Purchase Price and such other terms, conditions and
restrictions of the Restricted Stock, not inconsistent with the provisions of
this Plan, as the Administrator shall, from time to time, deem desirable. Each
Restricted Stock Purchase Agreement may be different from each other Restricted
Stock Purchase Agreement.
                           PAYMENT OF PURCHASE PRICE.
Subject to any legal restrictions, payment of the Purchase Price upon acceptance
of a Right to Purchase Restricted Stock may be made, in the discretion of the
Administrator, by--
(a)  cash;
(b)  check;
(c) the surrender of shares of Common Stock owned by the Offeree that have been
held by the Offeree for at least six (6) months, which surrendered shares shall
be valued at Fair Market Value as of the date of such exercise;
(d) the Offeree's promissory note in a form and on terms acceptable to the
Administrator;
(e) the cancellation of indebtedness of the Company to the Offeree;
(f) the waiver of compensation due or accrued to the Offeree for services
rendered; or
(g) any combination of the foregoing methods of payment or any other
consideration or method of payment as shall be permitted by applicable corporate
law.
                            RIGHTS AS A STOCKHOLDER.
Upon complying with the provisions of Section 6.2 hereof, an Offeree shall have
the rights of a stockholder with respect to the Restricted Stock purchased
pursuant to the Right to Purchase, including voting and dividend rights, subject
to the terms, restrictions and conditions as are set forth in the Restricted
Stock Purchase Agreement. Unless the Administrator shall determine otherwise,
certificates evidencing shares of Restricted Stock shall remain in the
possession of the Company in accordance with the terms of the Restricted Stock
Purchase Agreement until such shares have vested.
                                  RESTRICTIONS.
Shares of Restricted Stock may not be sold, assigned, transferred, pledged or
otherwise encumbered or disposed of except as specifically provided in the
Restricted Stock Purchase Agreement or by the Administrator in the particular
case. In the event of termination of a Participant's employment, service as a
director of the Company or Service Provider status for any reason whatsoever
(including death or disability), the Restricted Stock Purchase Agreement may
provide, in the discretion of the Administrator, that the Company shall have the
right, exercisable at the discretion of the Administrator, to repurchase (i) at
the original Purchase Price, any shares of Restricted Stock which have not
vested as of the date of termination, and (ii) at Fair Market Value, any shares
of Restricted Stock which have vested as of such date, on such terms as may be
provided in the Restricted Stock Purchase Agreement; provided that, for
Restricted Stock granted to employees who are not officers, directors or Service
Providers, the Company's Repurchase Right at the original purchase price lapses
at a minimum rate of 20% per year over a period of five
(5) years from the date the Right to Purchase was granted.
                          VESTING OF RESTRICTED STOCK.
The Restricted Stock Purchase Agreement shall specify the date or dates, the
performance goals or objectives which must be achieved, and any other conditions
on which the Restricted Stock may vest.
                                   DIVIDENDS.
If payment for shares of Restricted Stock is made by promissory note, any cash
dividends paid with respect to the Restricted Stock may be applied, in the
discretion of the Administrator, to repayment of such note.
                        LIMITED ASSIGNABILITY OF RIGHTS.
No Right to Purchase shall be assignable or transferable except by will or the
laws of descent and distribution. Restricted Stock may, in connection with the
Participant's estate plan, be assigned in whole or in part during the
Participant's lifetime to one or more members of the Participant's immediate
family, including any parent, descendant, spouse, brother, sister, grandparent,
grandchild, dependent, or member of their immediate families, or to a trust
established exclusively for one or more such persons, or to a trust established
exclusively for one or more such family members. The terms applicable to the
assigned portion shall be the same as those in effect for the Restricted Stock
immediately prior to such assignment and shall be set forth in such documents
issued to the assignee as the Plan Administrator may deem appropriate. In the
event that applicable tax law and federal and state securities laws permit
transfer of Restricted Stock in any other particular case, then with the consent
of the Administrator in such case, Restricted Stock may be transferred
consistent with restrictions under law and subject to any terms or restrictions
imposed by the Administrator.

                           ADMINISTRATION OF THE PLAN.
                                 ADMINISTRATOR.
Authority to control and manage the operation and administration of the Plan
shall be vested in the Board, which may delegate such responsibilities in whole
or in part to a committee consisting of two (2) or more members of the Board
(the "Committee"). Members of the Committee may be appointed from time to time
by, and shall serve at the pleasure of, the Board. As used herein, the term
"Administrator" means the Board or, with respect to any matter as to which
responsibility has been delegated to the Committee, the term Administrator shall
mean the Committee.
                          POWERS OF THE ADMINISTRATOR.
In addition to any other powers or authority conferred upon the Administrator
elsewhere in the Plan or by applicable law, the Administrator shall have full
power and authority, at any time and from time to time: (a) to determine the
persons to whom, and the time or times at which, Incentive Options or
Nonqualified Options shall be granted and Rights to Purchase shall be offered,
the number of shares to be represented by each Option and Right to Purchase and
the consideration to be received by the Company upon the exercise thereof;
(b) to interpret the Plan;
(c) to create, amend or rescind rules and regulations relating to the Plan;
(d) to determine the terms, conditions and restrictions contained in, and the
form of, Option Agreements and Restricted Stock Purchase Agreements;
(e) to determine the identity or capacity of any persons who may be entitled to
exercise a Participant's rights under any Option or Right to Purchase under the
Plan;
(f) to correct any defect or supply any omission or reconcile any inconsistency
in the Plan or in any Option Agreement or Restricted Stock Purchase Agreement;
(g) to extend the exercise date of any Option or acceptance date of any Right to
Purchase;
(h) to provide for first rights of refusal and/or repurchase rights;
(i) to effect, with the consent of the affected Participant, the cancellation of
any or all outstanding Options and to grant, in substitution, new options
covering the same or different number of shares of Common Stock but with an
exercise price per share based on the Fair Market Value on the new grant date;
and
(i) to amend outstanding Option Agreements and Restricted Stock Purchase
Agreements to provide for, among other things, any change or modification to a
provision which the Administrator could have provided for upon the grant of an
Option or Right to Purchase or upon the issuance of Restricted Stock or in
furtherance of the powers provided for herein; and
(j) to make all other determinations necessary or advisable for the
administration of the Plan, but only to the extent not contrary to the express
provisions of the Plan.
Any action, decision, interpretation or determination made in good faith by the
Administrator in the exercise of its authority conferred upon it under the Plan
shall be final and binding on the Company and all Participants.
                            LIMITATION ON LIABILITY.
No employee of the Company or member of the Board or Committee shall be subject
to any liability with respect to duties under the Plan unless the person acts
fraudulently or in bad faith. To the extent permitted by law, the Company shall
indemnify each member of the Board or Committee, and any employee of the Company
with duties under the Plan, who was or is a party, or is threatened to be made a
party, to any threatened, pending or completed proceeding, whether civil,
criminal, administrative or investigative, by reason of such person's conduct in
the performance of duties under the Plan.

                       MERGERS AND OTHER REORGANIZATIONS.
                       MERGERS AND OTHER REORGANIZATIONS.
The Option Agreement or Restricted Stock Purchase Agreement shall make provision
for what, if anything, shall happen in the event that the Company at any time
proposes to enter into any transaction approved by the Board to dissolve,
liquidate, sell substantially all of its assets, or merge or consolidate, or
acquire property or shares, separate or reorganize, with any other entity or
entities, corporate or otherwise, as a result of which either the Company is not
the surviving corporation or the Company is the surviving corporation. The Plan
and outstanding Options, Rights of Purchase, or Restricted Stock shall in no way
affect the right of the Company to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets.
                               CHANGE IN CONTROL.
In the event of a Change in Control of the Company, concurrent with and
conditioned upon the effective date of the proposed transaction, any outstanding
unexercised Options and Rights to Purchase that have not yet vested shall be
accelerated and vest at such time to the extent that the Option Agreement or
Restricted Stock Purchase Agreement provides. Notwithstanding the foregoing, the
Administrator in its discretion may take one or more of the following actions:
(i) provide for the purchase or exchange of this Option for an amount of cash
or other property having a value equal to the difference, or spread, between
(x) the value of the cash or other property that the Optionee would have
received pursuant to such Change in Control transaction in exchange for the
shares issuable upon exercise of this Option had this Option been exercised
immediately prior to such Change in Control transaction and
(y) the Exercise Price,
(ii) adjust the terms of this Option in a manner determined by the Administrator
to reflect the Change in Control,
(iii) cause this Option to be assumed, or new rights substituted therefor, by
another entity, through the continuance of the Plan and the assumption of this
Option, or the substitution for this Option of a new option of comparable value
covering shares of a successor corporation, with appropriate adjustments as to
the number and kind of shares and Exercise Price, in which event the Plan and
this Option, or the new option substituted therefor, shall continue in the
manner and under the terms so provided, or
(iv) make such other provision as the Administrator may consider equitable. If
the Administrator does not take any of the forgoing actions, this Option shall
terminate upon the consummation of the Change in Control and the Administrator
shall cause written notice of the proposed transaction to be given to the
Optionee not less than fifteen (15) days prior to the anticipated effective date
of the proposed transaction.
                                HOSTILE TAKEOVER.
The Administrator shall have the discretionary authority to structure Option
Agreements and Restricted Stock Purchase Agreements such that the Company's
Repurchase Rights shall terminate and such shares shall vest automatically upon
the consummation of a Hostile Take-Over, to condition the automatic acceleration
of one or more Options and the termination of one or more of the Company's
Repurchase Rights under Restricted Stock Purchase Agreements upon the
involuntary termination of the Participant's Continuous Service within a
designated period (not to exceed eighteen (18) months) following the effective
date of a Hostile Take-Over, and to make provision that each Option so
accelerated shall remain exercisable for fully-vested shares until a date not
later than the expiration of the option term.

                     AMENDMENT AND TERMINATION OF THE PLAN.
                                   AMENDMENTS.
The Board shall have full power and authority (subject to certain amendments
requiring stockholder approval pursuant to applicable laws or regulations) from
time to time to alter, amend, suspend or terminate the Plan in any or all
respects as the Board may deem advisable. No such alteration, amendment,
suspension or termination shall be made which shall substantially affect or
impair the rights of any Participant under an outstanding Option Agreement or
Restricted Stock Purchase Agreement without such Participant's consent. The
Board may alter or amend the Plan to comply with requirements under the Code
relating to Incentive Options or other types of options which give Optionees
more favorable tax treatment than that applicable to Options granted under this
Plan. Upon any such alteration or amendment, any outstanding Option granted
hereunder may, if the Administrator so determines and if permitted by applicable
law, be subject to the more favorable tax treatment afforded to an Optionee
pursuant to such terms and conditions.
                                PLAN TERMINATION.
Unless the Plan shall theretofore have been terminated, the Plan shall terminate
on the tenth (10th) anniversary of the Effective Date and no Options or Rights
to Purchase may be granted under the Plan thereafter, but Option Agreements,
Restricted Stock Purchase Agreements and Rights to Purchase then outstanding
shall continue in effect in accordance with their respective terms.

                                TAX WITHHOLDING.
The Company shall have the power to withhold, or require a Participant to remit
to the Company, an amount sufficient to satisfy any applicable Federal, state,
and local tax withholding requirements with respect to any Options exercised or
Restricted Stock issued under the Plan. The Company's obligation to deliver
shares of Common Stock upon the exercise of Options or the issuance or vesting
of Common Stock under the Plan shall be subject to the satisfaction of all
applicable Federal, state and local income and employment tax withholding
requirements. To the extent permissible under applicable tax, securities and
other laws, the Administrator may, in its sole discretion and upon such terms
and conditions as it may deem appropriate, permit a Participant to satisfy his
or her obligation to pay any such tax, in whole or in part, up to an amount
determined on the basis of the highest marginal tax rate applicable to such
Participant, by--
(a) directing the Company to apply shares of Common Stock to which the
Participant is entitled as a result of the exercise of an Option or as a result
of the purchase of or lapse of restrictions on Restricted Stock or
(b) delivering to the Company shares of Common Stock owned by the Participant.
The shares of Common Stock so applied or delivered in satisfaction of the
Participant's tax withholding obligation shall be valued at their Fair Market
Value as of the date of measurement of the amount of income subject to
withholding.

                                 MISCELLANEOUS.
                             BENEFITS NOT ALIENABLE.
Other than as provided above, benefits under the Plan may not be transferred,
assigned or alienated, whether voluntarily or involuntarily or by operation of
law. Any unauthorized attempt at assignment, transfer, pledge or other
disposition shall be void and without force or effect whatsoever. NO CREATION OR
ENLARGEMENT OF PARTICIPANT'S RIGHTS TO CONTINUE IN ANY CAPACITY. This Plan is
strictly a voluntary undertaking on the part of the Company and shall not be
deemed to constitute a contract between the Company and any Participant for, or
to be consideration for, or an inducement to, or a condition of, the
continuation of any Participant's services to the Company in any capacity.
Nothing contained in the Plan shall be deemed to give the right to any
Participant to be retained in the service of the Company or any Affiliated
Company or to interfere with the right of the Company or any Affiliated Company
(which rights are hereby expressly reserved by each) to discharge or discontinue
the services of any Participant at any time for any reason, with or without
cause.
                              APPLICATION OF FUNDS.
The proceeds received by the Company from the sale of Common Stock pursuant to
Option Agreements and Restricted Stock Purchase Agreements, except as otherwise
provided herein, will be used for general corporate purposes.
                       ANNUAL AND OTHER PERIODIC REPORTS.
The Company shall furnish or make available to Participants copies of all annual
and other periodic financial and informational reports that the Company
distributes generally to its stockholders.

<PAGE>
The Participants shall in any event receive financial statements at least
annually, except if all Participants are key employees with duties that assure
the equivalent access to information.
                        COMPLIANCE WITH SECTION 25102(O).
At no time shall the number of shares issuable upon the exercise of all
outstanding options and the total number of shares provided for under any stock
bonus or similar plan of the Company exceed the applicable percentage as
calculated in accordance with the conditions and exclusions of Title 10.,
Sections 260.140.45 of the California Code of Regulations, based on the shares
of the Company outstanding at the time the calculation is made. In the event the
any or all requirements of Section 25102(o) of the California Corporate
Securities Law of 1968, or applicable provisions of Title 10., including
Sections 260.140.41, 42, 45, or 46, of the California Code of Regulations, or
Rule 701 promulgated under the U.S. Securities Act of 1933 are inconsistent with
the Plan in any way, or become inconsistent hereafter because such laws or rules
are changed, replaced or superseded, this Plan and any outstanding securities
under the Plan shall be modified in the Administrator's best judgment and sole
discretion consistent with the new requirements or consistent with any other
available exemptions under federal or state securities laws.

<PAGE>

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