Document:

exv4w5

 

Exhibit 4.5

STRIVA CORPORATION

2000 STOCK PLAN

     1.     Purposes of the Plan. The purposes of this Stock Plan are to attract
and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company’s business. Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant. Stock
Purchase Rights may also be granted under the Plan.

     2.     Definitions. As used herein, the following definitions shall apply:

          (a) “Administrator” means the Board or any of its Committees as shall be
administering the Plan in accordance with Section 4 hereof.

          (b) “Applicable Laws” means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Code” means the Internal Revenue Code of 1986, as amended.

          (e) “Committee” means a committee of Directors appointed by the Board in
accordance with Section 4 hereof.

          (f) “Common Stock” means the Common Stock of the Company.

          (g) “Company” means Striva Corporation, a Delaware corporation.

          (h) “Consultant” means any person who is engaged by the Company or any
Parent or Subsidiary to render consulting or advisory services to such entity.

          (i) “Director” means a member of the Board.

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

          (k) “Employee” means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless

 

 

reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by
the Company is not so guaranteed, on the 181st day of such leave any Incentive
Stock Option held by the Optionee shall cease to be treated as an Incentive
Stock Option and shall be treated for tax purposes as a Nonstatutory Stock
Option. Neither service as a Director nor payment of a director’s fee by the
Company shall be sufficient to constitute “employment” by the Company.

          (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (m) “Fair Market Value” means, as of any date, the value of Common Stock
determined as follows:

               (i) If the Common Stock is listed on any established stock exchange or a
national market system, including without limitation the Nasdaq National Market
or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the
mean between the high bid and low asked prices for the Common Stock on the last
market trading day prior to the day of determination; or

               (iii) In the absence of an established market for the Common Stock, the
Fair Market Value thereof shall be determined in good faith by the
Administrator.

          (n) “Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

          (o) “Nonstatutory Stock Option” means an Option not intended to qualify as
an Incentive Stock Option.

          (p) “Officer” means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

          (q) “Option” means a stock option granted pursuant to the Plan.

          (r) “Option Agreement” means a written or electronic agreement between the
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of
the Plan.

          (s) “Option Exchange Program” means a program whereby outstanding Options
are exchanged for Options with a lower exercise price.

          (t) “Optioned Stock” means the Common Stock subject to an Option or a
Stock Purchase Right.

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          (u) “Optionee” means the holder of an outstanding Option or Stock Purchase
Right granted under the Plan.

          (v) “Parent” means a “parent corporation,” whether now or hereafter
existing, as defined in Section 424(e) of the Code.

          (w) “Plan” means this 2000 Stock Plan.

          (x) “Restricted Stock” means shares of Common Stock acquired pursuant to a
grant of a Stock Purchase Right under Section 11 below.

          (y) “Service Provider” means an Employee, Director or Consultant.

          (z) “Share” means a share of the Common Stock, as adjusted in accordance
with Section 12 below.

          (aa) “Stock Purchase Right” means a right to purchase Common Stock
pursuant to Section 11 below.

          (bb) “Subsidiary” means a “subsidiary corporation,” whether now or
hereafter existing, as defined in Section 424(f) of the Code.

          (cc) “Touch Up Option” means an Option designated as a “Touch Up Option”
by the Administrator and granted to an existing Optionee from time to time
after the initial grant of Options to such Optionee.

     3.     Stock Subject to the Plan. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares that may be subject to option
and sold under the Plan is 1,000,000 Shares. The Shares may be authorized but
unissued, or reacquired Common Stock.

     If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall
become available for future grant or sale under the Plan (unless the Plan has
terminated). However, Shares that have actually been issued under the Plan,
upon exercise of either an Option or Stock Purchase Right, shall not be
returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Restricted Stock are repurchased by
the Company at their original purchase price, such Shares shall become
available for future grant under the Plan.

     4.     Administration of the Plan.

          (a) Administrator. The Plan shall be administered by the Board or a
Committee appointed by the Board, which Committee shall be constituted to
comply with Applicable Laws.

          (b) Powers of the Administrator. Subject to the provisions of the Plan
and, in the case of a Committee, the specific duties delegated by the Board to
such Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion:

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               (i) to determine the Fair Market Value;

               (ii) to select the Service Providers to whom Options and Stock Purchase
Rights may from time to time be granted hereunder;

               (iii) to determine the number of Shares to be covered by each such award
granted hereunder;

               (iv) to approve forms of agreement for use under the Plan;

               (v) to determine the terms and conditions, of any Option or Stock Purchase
Right granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Options or Stock
Purchase Rights may be exercised (which may be based on performance criteria),
any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Option or Stock Purchase Right or the
Common Stock relating thereto, based in each case on such factors as the
Administrator, in its sole discretion, shall determine;

               (vi) to determine whether and under what circumstances an Option may be
settled in cash under subsection 9(e) instead of Common Stock;

               (vii) to reduce the exercise price of any Option to the then current Fair
Market Value if the Fair Market Value of the Common Stock covered by such
Option has declined since the date the Option was granted;

               (viii) to initiate an Option Exchange Program;

               (ix) to prescribe, amend and rescind rules and regulations relating to the
Plan, including rules and regulations relating to sub-plans established for the
purpose of qualifying for preferred tax treatment under foreign tax laws;

               (x) to allow Optionees to satisfy withholding tax obligations by electing
to have the Company withhold from the Shares to be issued upon exercise of an
Option or Stock Purchase Right that number of Shares having a Fair Market Value
equal to the amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined. All elections by Optionees to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable;

               (xi) to construe and interpret the terms of the Plan and awards granted
pursuant to the Plan; and

               (xii) to grant additional Touch-Up Options to Optionees, at such times
and in such amounts as the Administrator shall determine, in its sole
discretion.

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          (c) Effect of Administrator’s Decision. All decisions, determinations and
interpretations of the Administrator shall be final and binding on all
Optionees.

     5.     Eligibility.

          (a) Nonstatutory Stock Options and Stock Purchase Rights may be granted to
Service Providers. Incentive Stock Options may be granted only to Employees.

          (b) Each Option shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

          (c) Neither the Plan nor any Option or Stock Purchase Right shall confer
upon any Optionee any right with respect to continuing the Optionee’s
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company’s right to terminate such
relationship at any time, with or without cause.

          (d) From time to time, the Administrator may determine that an initial
grant of Options to an Optionee is insufficient based on the level of the
Optionee’s service to the Company, and that Touch Up Options should be granted
to such Optionees. The Administrator shall have the sole discretion to grant
Touch Up Options on such terms and conditions as shall be determined by the
Administrator, and nothing contained herein shall require the Administrator to
grant any such Options.

     6.     Term of Plan. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 14 of the Plan.

     7.     Term of Option. The term of each Option shall be stated in the Option
Agreement; provided, however, that the term shall be no more than ten (10)
years from the date of grant thereof. In the case of an Incentive Stock Option
granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant or such shorter term as may be
provided in the Option Agreement.

     8.     Option Exercise Price and Consideration.

          (a) The per share exercise price for the Shares to be issued upon exercise
of an Option shall be such price as is determined by the Administrator, but
shall be subject to the following:

               (i) In the case of an Incentive Stock Option

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                    (A) granted to an Employee who, at the time of grant of such Option, owns
stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the exercise price
shall be no less than 110% of the Fair Market Value per Share on the date of
grant.

                    (B) granted to any other Employee, the per Share exercise price shall be
no less than 100% of the Fair Market Value per Share on the date of grant.

               (ii) In the case of a Nonstatutory Stock Option

                    (A) granted to a Service Provider who, at the time of grant of such
Option, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the
exercise price shall be no less than 110% of the Fair Market Value per Share on
the date of grant.

                    (B) granted to any other Service Provider, the per Share exercise price
shall be no less than 85% of the Fair Market Value per Share on the date of
grant.

               (iii) Notwithstanding the foregoing, Options may be granted with a per
Share exercise price other than as required above pursuant to a merger or other
corporate transaction.

          (b) The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of
Shares acquired upon exercise of an Option, have been owned by the Optionee for
more than six months on the date of surrender, and (y) have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as
to which such Option shall be exercised, (5) consideration received by the
Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (6) any combination of the foregoing methods of
payment. In making its determination as to the type of consideration to
accept, the Administrator shall consider if acceptance of such consideration
may be reasonably expected to benefit the Company.

     9.     Exercise of Option.

          (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted
hereunder shall be exercisable according to the terms hereof at such times and
under such conditions as determined by the Administrator and set forth in the
Option Agreement. Except in the case of Options granted to Officers, Directors
and Consultants, Options shall become exercisable at a rate of no less than 20%
per year over five (5) years from the date the Options are granted. Unless the
Administrator provides otherwise, vesting of Options granted hereunder to
Officers and Directors shall be tolled during any unpaid leave of absence. An
Option may not be exercised for a fraction of a Share.

               An Option shall be deemed exercised when the Company receives: (i) written
or electronic notice of exercise (in accordance with the Option Agreement) from
the person entitled to exercise the Option, (ii) full payment for the Shares
with respect to which the Option is exercised,

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and, (iii) in the event of an exercise for unvested Shares (if permitted
by the Option Agreement), a fully executed Restricted Stock Purchase Agreement.
Full payment may consist of any consideration and method of payment authorized
by the Administrator and permitted by the Option Agreement and the Plan.
Shares issued upon exercise of an Option shall be issued in the name of the
Optionee or, if requested by the Optionee, in the name of the Optionee and his
or her spouse. Until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Shares, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised. No adjustment will be made for
a dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 12 of the Plan.

               Exercise of an Option in any manner shall result in a decrease in the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

          (b) Termination of Relationship as a Service Provider. If an Optionee
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement (of at least
thirty (30) days) to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the
Option as set forth in the Option Agreement). In the absence of a specified
time in the Option Agreement, the Option shall remain exercisable for three (3)
months following the Optionee’s termination. If, on the date of termination,
the Optionee is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option shall revert to the Plan. If, after
termination, the Optionee does not exercise his or her Option within the time
specified by the Administrator, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

          (c) Disability of Optionee. If an Optionee ceases to be a Service
Provider as a result of the Optionee’s Disability, the Optionee may exercise
his or her Option within such period of time as is specified in the Option
Agreement (of at least six (6) months) to the extent the Option is vested on
the date of termination (but in no event later than the expiration of the term
of such Option as set forth in the Option Agreement). In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for
twelve (12) months following the Optionee’s termination. If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within
the time specified herein, the Option shall terminate, and the Shares covered
by such Option shall revert to the Plan.

          (d) Death of Optionee. If an Optionee dies while a Service Provider, the
Option may be exercised within such period of time as is specified in the
Option Agreement (of at least six (6) months) to the extent that the Option is
vested on the date of death (but in no event later than the expiration of the
term of such Option as set forth in the Option Agreement) by the Optionee’s
estate or by a person who acquires the right to exercise the Option by bequest
or inheritance. In the absence of a specified time in the Option Agreement,
the Option shall remain exercisable for twelve (12) months following the
Optionee’s termination. If, at the time of death, the Optionee is not vested
as to the entire Option, the Shares covered by the unvested portion of the
Option shall immediately

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revert to the Plan. If the Option is not so exercised within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

          (e) Buyout Provisions. The Administrator may at any time offer to buy out
for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to
the Optionee at the time that such offer is made.

     10.     Non-Transferability of Options and Stock Purchase Rights. The Options
and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     11.     Stock Purchase Rights.

          (a) Rights to Purchase. Stock Purchase Rights may be issued either alone,
in addition to, or in tandem with other awards granted under the Plan and/or
cash awards made outside of the Plan. After the Administrator determines that
it will offer Stock Purchase Rights under the Plan, it shall advise the offeree
in writing or electronically of the terms, conditions and restrictions related
to the offer, including the number of Shares that such person shall be entitled
to purchase, the price to be paid, and the time within which such person must
accept such offer. The terms of the offer shall comply in all respects with
Section 260.140.42 of Title 10 of the California Code of Regulations. The
offer shall be accepted by execution of a Restricted Stock purchase agreement
in the form determined by the Administrator.

          (b) Repurchase Option. Unless the Administrator determines otherwise, the
Restricted Stock purchase agreement shall grant the Company a repurchase option
exercisable upon the voluntary or involuntary termination of the purchaser’s
service with the Company for any reason (including death or disability). The
purchase price for Shares repurchased pursuant to the Restricted Stock purchase
agreement shall be the original price paid by the purchaser and may be paid by
cancellation of any indebtedness of the purchaser to the Company. The
repurchase option shall lapse at such rate as the Administrator may determine.
Except with respect to Shares purchased by Officers, Directors and Consultants,
the repurchase option shall in no case lapse at a rate of less than 20% per
year over five (5) years from the date of purchase.

          (c) Other Provisions. The Restricted Stock purchase agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

          (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised,
the purchaser shall have rights equivalent to those of a shareholder and shall
be a shareholder when his or her purchase is entered upon the records of the
duly authorized transfer agent of the Company. No adjustment shall be made for
a dividend or other right for which the record date is prior to the date the
Stock Purchase Right is exercised, except as provided in Section 12 of the
Plan.

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     12.     Adjustments Upon Changes in Capitalization, Merger or Asset Sale.

          (a) Changes in Capitalization. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without
receipt of consideration by the Company. The conversion of any convertible
securities of the Company shall not be deemed to have been “effected without
receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except
as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

          (b) Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, the Administrator shall notify each Optionee as
soon as practicable prior to the effective date of such proposed transaction.
The Administrator in its discretion may provide for an Optionee to have the
right to exercise his or her Option or Stock Purchase Right until fifteen (15)
days prior to such transaction as to all of the Optioned Stock covered thereby,
including Shares as to which the Option or Stock Purchase Right would not
otherwise be exercisable. In addition, the Administrator may provide that any
Company repurchase option applicable to any Shares purchased upon exercise of
an Option or Stock Purchase Right shall lapse as to all such Shares, provided
the proposed dissolution or liquidation takes place at the time and in the
manner contemplated. To the extent it has not been previously exercised, an
Option or Stock Purchase Right will terminate immediately prior to the
consummation of such proposed action.

          (c) Merger or Asset Sale. In the event of a merger of the Company with or
into another corporation, or the sale of substantially all of the assets of the
Company, each outstanding Option and Stock Purchase Right shall be assumed or
an equivalent option or right substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that the
successor corporation refuses to assume or substitute for the Option or Stock
Purchase Right, the Optionee shall fully vest in and have the right to exercise
the Option or Stock Purchase Right as to all of the Optioned Stock, including
Shares as to which it would not otherwise be vested or exercisable. If an
Option or Stock Purchase Right becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Stock Purchase Right shall be fully exercisable for a period of
fifteen (15) days from the date of such notice, and the Option or Stock
Purchase Right shall terminate upon the expiration of such period. For the
purposes of this paragraph, the Option or Stock Purchase Right shall be
considered assumed if, following the merger or sale of assets, the option or
right confers the right to purchase or receive, for each Share of

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Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the merger or sale
of assets, the consideration (whether stock, cash, or other securities or
property) received in the merger or sale of assets by holders of Common Stock
for each Share held on the effective date of the transaction (and if holders
were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if
such consideration received in the merger or sale of assets is not solely
common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the Option or Stock Purchase Right, for each
Share of Optioned Stock subject to the Option or Stock Purchase Right, to be
solely common stock of the successor corporation or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock
in the merger or sale of assets.

     13.     Time of Granting Options and Stock Purchase Rights. The date of grant
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator.
Notice of the determination shall be given to each Service Provider to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the
date of such grant.

     14.     Amendment and Termination of the Plan.

          (a) Amendment and Termination. The Board may at any time amend, alter,
suspend or terminate the Plan.

          (b) Shareholder Approval. The Board shall obtain shareholder approval of
any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

          (c) Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee
with respect to any Options granted to such Optionee prior to the date of such
amendment, alteration, suspension or termination, unless otherwise mutually
agreed to in a writing signed by the Optionee and the Company. Termination of
the Plan shall not affect the Administrator’s ability to exercise the powers
granted to it hereunder with respect to Options granted under the Plan prior to
the date of such termination.

     15.     Conditions Upon Issuance of Shares.

          (a) Legal Compliance. Shares shall not be issued pursuant to the exercise
of an Option unless the exercise of such Option and the issuance and delivery
of such Shares shall comply with Applicable Laws and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

          (b) Investment Representations. As a condition to the exercise of an
Option, the Administrator may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell
or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

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     16.     Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

     17.     Reservation of Shares. The Company, during the term of this Plan,
shall at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     18.     Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan
is adopted. Such shareholder approval shall be obtained in the degree and
manner required under Applicable Laws.

     19.     Information to Optionees and Purchasers. The Company shall provide to
each Optionee and to each individual who acquires Shares pursuant to the Plan,
not less frequently than annually during the period such Optionee or purchaser
has one or more Options or Stock Purchase Rights outstanding, and, in the case
of an individual who acquires Shares pursuant to the Plan, during the period
such individual owns such Shares, copies of annual financial statements. The
Company shall not be required to provide such statements to key employees whose
duties in connection with the Company assure their access to equivalent
information.

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STRIVA CORPORATION

2000 STOCK PLAN

STOCK OPTION AGREEMENT

     Unless otherwise defined herein, the capitalized terms used in this Option
Agreement shall have the same meanings ascribed to such terms in the Plan.

	I.	 	NOTICE OF STOCK OPTION GRANT
	 
	 	 	Optionee:
	 
	 	 	Address:

          You have been granted an option (this “Option”) to purchase Common Stock
of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

	 	 	 	 
	 	Grant Number:	 	 
	 	 	 	 
	 	Date of Grant:	 	 
	 	 	 	 
	 	Vesting Commencement Date:	 	 
	 	 	 	 
	 	Exercise Price per Share:	 	
$
	 	 	 	 
	 	Total Number of Shares Granted:	 	
(the “Shares”)
	 	 	 	 
	 	Total Exercise Price:	 	
$
	 	 	 	 
	 	Type of Option:	 	
         Incentive Stock Option
	 	 	 	 
	 	 	 	
         Nonstatutory Stock Option
	 	 	 	 
	 	Term/Expiration Date:	 	 
	 	 	 	 
	 	Vesting Schedule:	 	
l/4th of the Shares subject to the Option shall vest
twelve months after the Vesting
Commencement Date, and l/48th of the Shares
subject to the Option shall vest each month
thereafter, subject to your continuing to
be a Service Provider on such dates.

 

 

	 	 	 	 
	Termination Period	 	
This Option may be exercised, to the extent it is then
vested, for three months after Optionee
ceases to be a Service Provider. Upon death
or Disability of the Optionee, this Option
may be exercised, to the extent it is then
vested, for one year after Optionee ceases
to be Service Provider. In no event shall
this Option be exercised later than the
Term/Expiration Date as provided above.

	II.	 	AGREEMENT

     1.     Grant of Option. The Plan Administrator of the Company hereby grants
to the
Optionee an option to purchase the number of Shares set forth in the
Notice of Grant, at the Exercise
Price per Share set forth in the Notice of Grant, and subject to the terms
and conditions of the Plan,
which is incorporated herein by reference. In the event of a conflict
between the terms and
conditions of the Plan and this Option Agreement, the terms and conditions
of the Plan shall prevail.

          If designated in the Notice of Grant as an Incentive Stock Option
(“ISO”), this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. However, if the Fair Market Value of the
Shares (as determined on the Date of Grant) that may vest in any calendar year
exceeds $100,000, those Shares subject to the Option in excess of $100,000
shall be treated as a Nonstatutory Stock Option (“NSO”).

     2.     Exercise of Option. This Option shall be exercisable during its term
in accordance
with the provisions of Section 9 of the Plan as follows:

          (a) Right to Exercise.

               (i) Subject to subsections 2(a)(ii) below, this Option may be
exercised cumulatively according to the vesting schedule set forth in the
Notice of Grant.

               (ii) This Option may not be exercised for a fraction of a
Share.

          (b) Method of Exercise. This Option shall be exercisable by delivery of
an
exercise notice in the form attached as Exhibit A (the “Exercise Notice”)
which shall state the
election to exercise the Option, the number of Shares with respect to
which the Option is being
exercised, and such other representations and agreements as may be
required by the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise
Price as to all exercised
Shares. This Option shall be deemed to be exercised upon receipt by the
Company of such fully
executed Exercise Notice and the aggregate Exercise Price.

          No Shares shall be issued pursuant to the exercise of an Option unless
such issuance and such exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Shares shall be considered transferred
to the Optionee on the date on which the Option is exercised with respect to
such Shares.

     3.     Optionee’s Representations. In the event the Shares have not
been registered under the Securities Act of 1933, as amended, at the time this
Option is exercised, the Optionee shall, if

-2-

 

required by the Company, concurrently with the exercise of all or any portion
of this Option, deliver to the Company his or her Investment Representation
Statement in the form attached hereto as Exhibit B.

     4.     Lock-Up Period. Optionee hereby agrees that, if so requested by the
Company or any
representative of the underwriters (the “Managing Underwriter”) in
connection with any registration
of the offering of any securities of the Company under the Securities Act,
Optionee shall not sell or
otherwise transfer any Shares or other securities of the Company during
the 180-day period (or such
other period as may be requested in writing by the Managing Underwriter
and agreed to in writing
by the Company) (the “Market Standoff Period”) following the effective
date of a registration
statement of the Company filed under the Securities Act. Such restriction
shall apply only to the
first registration statement of the Company to become effective under the
Securities Act that
includes securities to be sold on behalf of the Company to the public in
an underwritten public
offering under the Securities Act. The Company may impose stop-transfer
instructions with respect
to securities subject to the foregoing restrictions until the end of such
Market Standoff Period.

     5.     Method of Payment. Payment of the aggregate Exercise Price shall be by
any of the
following, or a combination thereof, at the election of the Optionee:

          (a) cash;

          (b) check; or

          (c) consideration received by the Company under a formal cashless exercise
program adopted by the Company in connection with the Plan.

     6.     Restrictions on Exercise. This Option may not be exercised until such
time as the
Plan has been approved by the shareholders of the Company, or if the
issuance of such Shares upon
such exercise or the method of payment of consideration for such shares
would constitute a violation
of any Applicable Law.

     7.     Non-Transferability of Option. This Option may not be transferred in
any manner
otherwise than by will or by the laws of descent or distribution and may
be exercised during the
lifetime of Optionee only by Optionee. The terms of the Plan and this
Option Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns
of the Optionee.

     8.     Term of Option. This Option may be exercised only within the term set
out in the
Notice of Grant, and may be exercised during such term only in accordance
with the Plan and the
terms of this Option.

     9.     Tax Consequences. Set forth below is a brief summary as of the date of
this Option
of some of the federal tax consequences of exercise of this Option and
disposition of the Shares.
THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS
AND
REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (a) Exercise of ISO. If this Option qualifies as an ISO, there will
be no regular federal income tax liability upon the exercise of the Option,
although the excess, if any, of the Fair

-3-

 

Market Value of the Shares on the date of exercise over the Exercise Price will
be treated as an adjustment to the alternative minimum tax for federal tax
purposes and may subject the Optionee to the alternative minimum tax in the
year of exercise.

          (b) Exercise of ISO Following Disability. If the Optionee ceases to be
an
Employee as a result of a disability that is not a total and permanent
disability as defined in
Section 22(e)(3) of the Code, to the extent permitted on the date of
termination, the Optionee must
exercise an ISO within three months of such termination for the ISO to be
qualified as an ISO.

          (c) Exercise of NSO. There may be a regular federal income tax liability
upon
the exercise of an NSO. The Optionee will be treated as having received
compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the
Fair Market Value of the
Shares on the date of exercise over the Exercise Price. If Optionee is
an Employee or a former
Employee, the Company will be required to withhold from Optionee’s
compensation or collect from
Optionee and pay to the applicable taxing authorities an amount in cash
equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time
of exercise.

          (d) Disposition of Shares. In the case of an NSO, if Shares are held for
at least
one year, any gain realized on disposition of the Shares will be treated
as long-term capital gain for
federal income tax purposes. In the case of an ISO, if Shares transferred
pursuant to the Option are
held for at least one year after exercise and at least two years after the
Date of Grant, any gain
realized on disposition of the Shares will also be treated as long-term
capital gain for federal income
tax purposes. If Shares purchased under an ISO are disposed of within one
year after exercise or two
years after the Date of Grant, any gain realized on such disposition will
be treated as compensation
income (taxable at ordinary income rates) to the extent of the difference
between the Exercise Price
and the lesser of (i) the Fair Market Value of the Shares on the date of
exercise, or (ii) the sale price
of the Shares. Different rules may apply if the Shares are subject to a
substantial risk of forfeiture
(within the meaning of Section 83 of the Code) at the time of purchase.
Any additional gain will be
taxed as capital gain, short-term depending on the period that the ISO
Shares were held.

          (e) Notice of Disqualifying Disposition of ISO Shares. If the Option
granted to
Optionee herein is an ISO, and if Optionee sells or otherwise disposes of
any of the Shares acquired
pursuant to the ISO on or before the later of (i) the date two years after
the Date of Grant, or (ii) the
date one year after the date of exercise, the Optionee shall immediately
notify the Company in
writing of such disposition. Optionee agrees that Optionee may be
subject to income tax
withholding by the Company on the compensation income recognized by the
Optionee.

     10.     Entire Agreement; Governing Law. The Plan is incorporated herein by
reference.
The Plan and this Option Agreement constitute the entire agreement of the
parties with respect to the
subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the
Company and Optionee with respect to the subject matter hereof, and may
not be modified adversely
to the Optionee’s interest except by means of a writing signed by the
Company and Optionee. This
agreement is governed by the internal substantive laws but not the choice
of law rules of California.

     11.     No Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE

-4-

 

HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS
OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR
THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY
WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S
RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and represents that
he or she is familiar with the terms and provisions thereof, and hereby
accepts this Option subject to all of the terms and provisions thereof.
Optionee has reviewed the Plan and this Option in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option and
fully understands all provisions of the Option. Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of
the Administrator upon any questions arising under the Plan or this Option.
Optionee further agrees to notify the Company upon any change in the residence
address indicated below.

	 	 	 
	OPTIONEE:	 	
STRIVA CORPORATION
	 	 	 
	
	 	

	Signature	 	
By
	 	 	 
	 	 	
President
	

Print Name	 	

Title
	 	 	 
	

Residence Address	 	 

-5-

 

EXHIBIT A

2000 STOCK PLAN

EXERCISE NOTICE

Striva Corporation 

100 Enterprise Way

Scotts Valley, CA 95066

Attention: President

     1.     Exercise
of Option. Effective as of
today,         
,      , the undersigned
(“Optionee”) hereby elects to exercise Optionee’s
option to purchase         
 shares of the Common Stock (the “Shares”) of Striva Corporation (the “Company”) under and pursuant to the
2000 Stock Plan (the “Plan”) and the Stock Option Agreement
dated          
,      (the
“Option Agreement”) pursuant to Grant No.         .

     2.     Delivery of Payment. Purchaser herewith delivers to the Company the
full purchase
price of the Shares, as set forth in the Option Agreement.

     3.     Representations of Optionee. Optionee acknowledges that Optionee has
received,
read and understood the Plan and the Option Agreement and agrees to abide
by and be bound by
their terms and conditions.

     4.     Rights as Shareholder. Until the issuance of the Shares (as
evidenced by the
appropriate entry on the books of the Company or of a duly authorized
transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
shareholder shall exist with
respect to the Shares, notwithstanding the exercise of the Option. The
Shares shall be issued to the
Optionee as soon as practicable after the Option is exercised. No
adjustment shall be made for a
dividend or other right for which the record date is prior to the date of
issuance except as provided in
Section 12 of the Plan.

     5.     Company’s Right of First Refusal. Before any Shares held by Optionee
or any
transferee (either being sometimes referred to herein as the “Holder”) may
be sold or otherwise
transferred (including transfer by gift or operation of law), the Company
or its assignee(s) shall have
a right of first refusal to purchase the Shares on the terms and
conditions set forth in this Section (the
“Right of First Refusal”).

          (a) Notice of Proposed Transfer. The Holder of the Shares shall deliver
to the Company a written notice (the “Notice”) stating: (i) the Holder’s bona
fide intention to sell or otherwise transfer such Shares; (ii) the name of
each proposed purchaser or other transferee (“Proposed Transferee”); (iii) the
number of Shares to be transferred to each Proposed Transferee; and (iv) the
bona fide cash price or other consideration for which the Holder proposes to
transfer the Shares (the “Offered Price”), and the Holder shall offer the
Shares at the Offered Price to the Company or its assignee(s).

 

 

          (b) Exercise of Right of First Refusal. At any time within 30 days after
receipt of
the Notice, the Company and/or its assignee(s) may, by giving written
notice to the Holder, elect to
purchase all, but not less than all, of the Shares proposed to be
transferred to any one or more of the
Proposed Transferees, at the purchase price determined in accordance with
subsection (c) below.

          (c) Purchase Price. The purchase price (“Purchase Price”) for the
Shares
purchased by the Company or its assignee(s) under this Section shall be
the Offered Price. If the
Offered Price includes consideration other than cash, the cash equivalent
value of the non-cash
consideration shall be determined by the Board of Directors of the Company
in good faith.

          (d) Payment. Payment of the Purchase Price shall be made, at the option of
the
Company or its assignee(s), in cash (by check), by cancellation of all or
a portion of any outstanding
indebtedness of the Holder to the Company (or, in the case of repurchase
by an assignee, to the
assignee), or by any combination thereof within 30 days after receipt of
the Notice or in the manner
and at the times set forth in the Notice.

          (e) Holder’s Right to Transfer. If all of the Shares proposed in the
Notice to be
transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s)
as provided in this Section, then the Holder may sell or otherwise
transfer such Shares to that
Proposed Transferee at the Offered Price or at a higher price, provided
that such sale or other
transfer is consummated within 120 days after the date of the Notice, that
any such sale or other
transfer is effected in accordance with any applicable securities laws and
that the Proposed
Transferee agrees in writing that the provisions of this Section shall
continue to apply to the Shares
in the hands of such Proposed Transferee. If the Shares described in the
Notice are not transferred to
the Proposed Transferee within such period, a new Notice shall be given to
the Company, and the
Company and/or its assignees shall again be offered the Right of First
Refusal before any Shares
held by the Holder may be sold or otherwise transferred.

          (f) Exception for Certain Family Transfers. Anything to the contrary
contained
in this Section notwithstanding, the transfer of any or all of the Shares
during the Optionee’s lifetime
or on the Optionee’s death by will or intestacy to the Optionee’s
immediate family or a trust for the
benefit of the Optionee’s immediate family shall be exempt from the
provisions of this Section.
“Immediate Family” as used herein shall mean spouse, lineal descendant or
antecedent, father,
mother, brother or sister. In such case, the transferee or other
recipient shall receive and hold the
Shares so transferred subject to the provisions of this Section, and there
shall be no further transfer
of such Shares except in accordance with the terms of this Section.

          (g) Termination of Right of First Refusal. The Right of First Refusal
shall
terminate as to any Shares upon the first sale of Common Stock of the
Company to the general
public pursuant to a registration statement filed with and declared
effective by the Securities and
Exchange Commission under the Securities Act of 1933, as amended.

     6.     Tax Consultation. Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee’s purchase or disposition of
the Shares. Optionee represents that Optionee has consulted with any tax
consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

-2-

 

     7.     Restrictive Legends and Stop-Transfer Orders.

          (a) Legends. Optionee understands and agrees that the Company shall cause
the
legends set forth below or legends substantially equivalent thereto, to be
placed upon any
certificate(s) evidencing ownership of the Shares together with any other
legends that may be
required by the Company or by state or federal securities laws:

	 	 	 
	 	 	
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR,
IN THE OPINION OF COMPANY COUNSEL SATISFACTORY TO THE ISSUER
OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH.
	 	 	 
	 	 	
THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST REFUSAL
OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH
IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL
HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT
THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER
RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON
TRANSFEREES OF THESE SHARES.

          (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure
compliance
with the restrictions referred to herein, the Company may issue
appropriate “stop transfer”
instructions to its transfer agent, if any, and that, if the Company
transfers its own securities, it may
make appropriate notations to the same effect in its own records.

          (c) Refusal to Transfer. The Company shall not be required (i) to transfer
on its
books any Shares that have been sold or otherwise transferred in violation
of any of the provisions of
this Exercise Notice or (ii) to treat as owner of such Shares or to accord
the right to vote or pay
dividends to any purchaser or other transferee to whom such Shares shall
have been so transferred.

     8.     Successors and Assigns. The Company may assign any of its rights
under this
Exercise Notice to single or multiple assignees, and this Exercise Notice
shall inure to the benefit of
the successors and assigns of the Company. Subject to the restrictions
on transfer herein set forth,
this Exercise Notice shall be binding upon Optionee and his or her heirs,
executors, administrators,
successors and assigns.

     9.     Interpretation. Any dispute regarding the interpretation of this
Exercise Notice shall
be submitted by Optionee or by the Company forthwith to the Administrator
which shall review such
dispute at its next regular meeting. The resolution of such a dispute by
the Administrator shall be
final and binding on all parties.

     10.     Governing Law; Severability. This Exercise Notice is governed by the
internal
substantive laws, but not the choice of law rules, of California.

-3-

 

     11.     Entire Agreement. The Plan and Option Agreement are incorporated
herein by reference. This Exercise Notice, the Plan, the Restricted Stock
Purchase Agreement and the exhibits thereto (if applicable), the Option
Agreement and the Investment Representation Statement constitute the entire
agreement of the parties with respect to the subject matter hereof and
supersede in their entirety all prior undertakings and agreements of the
Company and Optionee with respect to the subject matter hereof, and may not be
modified adversely to the Optionee’s interest except by means of a writing
signed by the Company and Optionee.

	 	 	 
	Submitted by:	 	
Accepted by:
	 	 	 
	OPTIONEE:	 	
STRIVA CORPORATION
	 	 	 
	

Signature	 	

By
	 	 	 
	 	 	
President
	
	 	

	Print Name	 	
Its
	 	 	 
	Address:	 	
Address:
	 
	 	 	
100 Enterprise Way

Scotts Valley, CA 95066
	 	 	 
	 	 	

	 	 	
Date Received

-4-

 

EXHIBIT B

INVESTMENT REPRESENTATION STATEMENT

	 	 	 	 	 
	
OPTIONEE
	 	:	 	 
	 	 	 	 	 
	
COMPANY
	 	:
	 	STRIVA CORPORATION
	 	 	 	 	 
	
SECURITY
	 	:
	 	COMMON STOCK
	 	 	 	 	 
	
AMOUNT
	 	:	 	 
	 	 	 	 	 
	
DATE
	 	:	 	 

          In connection with the purchase of the above-listed Securities, the
undersigned Optionee represents to the Company the following:

          (a) Optionee is aware of the Company’s business affairs and financial
condition
and has acquired sufficient information about the Company to reach an
informed and knowledgeable
decision to acquire the Securities. Optionee is acquiring these
Securities for investment for
Optionee’s own account only and not with a view to, or for resale in
connection with, any
“distribution” thereof within the meaning of the Securities Act of 1933,
as amended (the “Securities
Act”).

          (b) Optionee acknowledges and understands that the Securities
constitute
“restricted securities” under the Securities Act and have not been
registered under the Securities Act
in reliance upon a specific exemption therefrom, which exemption depends
upon, among other
things, the bona fide nature of Optionee’s investment intent as expressed
herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange
Commission, the statutory
basis for such exemption may be unavailable if Optionee’s representation
was predicated solely
upon a present intention to hold these Securities for the minimum capital
gains period specified
under tax statutes, for a deferred sale, for or until an increase or
decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the
future. Optionee further
understands that the Securities must be held indefinitely unless they are
subsequently registered
under the Securities Act or an exemption from such registration is
available. Optionee further
acknowledges and understands that the Company is under no obligation to
register the Securities.
Optionee understands that the certificate evidencing the Securities will
be imprinted with a legend
which prohibits the transfer of the Securities unless they are registered
or such registration is not
required in the opinion of counsel satisfactory to the Company and any
other legend required under
applicable state securities laws.

          (c) Optionee is familiar with the provisions of Rule 701 and Rule 144,
each
promulgated under the Securities Act, which, in substance, permit limited
public resale of “restricted
securities” acquired, directly or indirectly from the issuer thereof, in a
non-public offering subject to
the satisfaction of certain conditions. Rule 701 provides that if the
issuer qualifies under Rule 701 at
the time of the grant of the Option to the Optionee, the exercise will be
exempt from registration

 

 

under the Securities Act. In the event the Company becomes subject to the
reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, ninety (90) days thereafter (or such longer period as any market
stand-off agreement may require) the Securities exempt under Rule 701 may be
resold, subject to the satisfaction of certain of the conditions specified by
Rule 144, including: (1) the resale being made through a broker in an
unsolicited “broker’s transaction” or in transactions directly with a market
maker (as said term is defined under the Securities Exchange Act of
1934); and, in the case of an affiliate, (2) the availability of certain public information
about the Company, (3) the amount of Securities being sold during any three
month period not exceeding the limitations specified in Rule 144(e), and (4)
the timely filing of a Form 144, if applicable.

     In the event that the Company does not qualify under Rule 701 at the time
of grant of the Option, then the Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which requires the resale
to occur not less than one year after the later of the date the Securities
were sold by the Company or the date the Securities were sold by an affiliate
of the Company, within the meaning of Rule 144; and, in the case of
acquisition of the Securities by an affiliate, or by a non-affiliate who
subsequently holds the Securities less than two years, the satisfaction of the
conditions set forth in sections (1), (2), (3) and (4) of the paragraph
immediately above.

          (d) Optionee further understands that in the event all of the applicable
requirements of Rule 701 or 144 are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules 144
and 701 are not exclusive, the Staff of the Securities and Exchange Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that
an exemption from registration is available for such offers or sales, and that
such persons and their respective brokers who participate in such transactions
do so at their own risk. Optionee understands that no assurances can be given
that any such other registration exemption will be available in such event.

	 	 	 
	 	 	
Signature of Optionee:
	 	 	 
	 	 	

	Date:
                 ,
      	 	 

-2-

 

STRIVA CORPORATION

2000 STOCK PLAN : UK RULES FOR EMPLOYEES

As the duly authorised signatory of the Administrator of the 2000 Stock Plan
(the “Plan”) established by Striva Corporation, (the “Company”) which is
organised and existing under the General Corporation Law of the State of
Delaware, USA, I hereby state and affirm that the provisions of the Plan apply
to the grant of all Options under such Plan save that the following provisions
are applicable in the administration of the Plan with regard to such Options to
which these UK Rules for Employees (the “UK Rules”) are expressed to extend at
the time when the Option is granted. Unless the context requires otherwise, all
expressions and capitalised terms used in the UK Rules have the same meaning as
in the Plan, provided that all other words and terms not otherwise defined
shall have the meaning attributed by Schedule 9 which for the purposes hereof
(but for no other purpose) shall take precedence. The Plan and the UK Rules
taken together are referred to hereinafter as “the Sub-Plan”. References in the
UK Rules to “Schedule 9” mean Schedule 9 to the Income and Corporation Taxes
Act 1988 (“ICTA 1988”) and references to any statutory enactment shall be
construed as a reference to that enactment as for the time being amended or
re-enacted. For the avoidance of doubt the UK Rules are not intended to provide
rights with respect to Options to which the UK Rules apply in addition to those
rights granted under the Plan. Rather, the UK Rules have been adopted for the
purpose of ensuring that Options to which the UK Rules apply will satisfy the
requirements of Schedule 9 ICTA 1988.

	1.	 	The shares of Common Stock (“Shares”) to be used in the Sub-Plan form part of
the
ordinary share capital (as defined in section 832(1) ICTA 1988) of the
Company.
	 
	2.	 	The Company is not under the control, as defined by section 840 ICTA
1988, of a corporate body.
	 
	3.	 	The Shares to be acquired on exercise of the Option will:

	 	(a)	 	be fully paid up;
	 
	 	(b)	 	be not redeemable;
	 
	 	(c)	 	not be subject to any “restrictions” other than restrictions
which attach to all
shares of the same class. For the purposes of the UK Rules,
“restrictions”
include restrictions which are deemed to attach to the Shares
under any
contract, agreement, arrangement or condition as referred to in
paragraph 13
of Schedule 9; and
	 
	 	(d)	 	satisfy the requirements of paragraph 14 of Schedule 9.

 

 

	 	 	event(s) occur as a result of which the Administrator considers it fair
and reasonable to adjust a performance target including the imposition of
entirety different objective conditions to the performance target the
Administrator may adjust the performance target provided that such
adjustments do not have the effect of making the performance target more
onerous than it was immediately before the event in question and such
adjustment shall not take effect unless the Company’s auditors shall have
confirmed that in their opinion the adjustment is fair and reasonable.
	 
	 	 	*(Section 5 of the Plan)
	 
	13.	 	Notwithstanding Section 5 of the Plan an Option may be granted under the
Sub-Plan
to any employee or director of the Company or of a company participating
in the Sub-Plan provided that in the case of a director his or her hours of work for
one or more
companies participating in the Sub-Plan are at least 25 hours per week
exclusive of
meal breaks.
	 
	14.	 	No Option shall be granted under the Sub-Plan if that would cause the
limits of
paragraph 28 of Schedule 9 to be exceeded. The United Kingdom Sterling
equivalent of the aggregate Fair Market Value of Shares subject to
Options at the
relevant dates of grant shall be ascertained by taking the highest buying
rate of the
spread for the day as shown in the Financial Times, The Wall Street
Journal or by
taking any other published conversion rate which the United Kingdom
Board of
Inland Revenue has agreed in advance is acceptable for this purpose.
These UK
Rules shall not apply to any Option or part of an Option granted in
excess of the
limit imposed under this Rule 14.
	 
	 	 	*(Section 8 of the Plan)
	 
	15.	 	Notwithstanding Sections 8(a)(ii)(B) and 8(a)(iii) of the Plan the
per Share
exercise price shall, for the purposes of the Sub-Plan, not be less than
one hundred
percent (100%) of the Fair Market Value of a Share at the date of grant.
	 
	16.	 	Upon exercise of an Option under the Sub-Plan payment shall be made in
full in cash
from the Optionee’s own resources or from the proceeds of a loan from the
Company
or a third party and notwithstanding the provisions of Section 8(b) of
the Plan payment
may not be made by delivery of Shares or a promissory note or any
combination of the
methods of payment outlined in Section 8(b) of the Plan of which any of
the foregoing
methods of payment forms a part. Nothing in the UK Rules shall prohibit an
Optionee
from pledging Shares subject to an Option to secure a loan with which to
exercise
(“cashless exercise”) that Option.
	 
	 	 	*(Section 9 of the Plan)
	 
	17.	 	Notwithstanding Section 9 of the Plan the Company shall, as soon as
practicable but
not later than 30 days after the date on which the Option is exercised,
cause to be
registered in the Optionee’s name the number of Shares and shall deliver
or mail to the
Optionee a share certificate or certificates representing the Shares then
purchased

 

 

	 	 	subject to any delay necessary to complete (a) such registration or
other qualification of such Shares under any state or federal law, rule
or regulation as the Company may determine to be necessary or advisable
and (b) the making of provision for the payment or withholding of any
taxes required to be withheld pursuant to any applicable law, in respect
of such Shares. Except for restrictions which are permitted under
paragraph 13(2) of Schedule 9 and those imposed under any applicable
federal or state law or requirements of any stock exchange or regulatory
body Shares shall be identical and rank pari passu in all respects with
shares of the same class then in issue. Section 9(e) of the Plan shall
not apply to options granted under the Sub-Plan at any time whilst the
Sub-Plan remains approved under Schedule 9 ICTA1988.
	 
	 	 	*(Section 10 of the Plan)
	 
	18.	 	Notwithstanding Section 10 of the Plan no Option granted under this
Sub-Plan
shall be assignable or transferable except on the death of the Optionee
when the
legal personal representative may exercise the deceased’s outstanding
Options.
	 
	 	 	*(Section 12 of the Plan)
	 
	19.	 	Whilst the Sub-Plan remains approved under Schedule 9 ICTA 1988 no
adjustment
pursuant to any of the provisions of the Plan shall be made to any Option
which is
subject to the UK Rules unless such adjustment would be permitted under
paragraph
29 of Schedule 9 and where so permitted no such adjustment shall take
effect unless
the approval of the United Kingdom Board of Inland Revenue shall have
been
obtained thereto. For the purposes of this Rule 19 adjustments under
paragraph 29
shall be taken to mean adjustments to the exercise price of a Share, the
number of
Shares subject to the Option and nominal value of a Share.
	 
	20.	 	An Option which is subject to the UK Rules shall not be assumed or
substituted under
Section 12(c) of the Plan [Merger or Asset Sale] and may, where the event
involves a
“change of control” falling within paragraph 15(1) of Schedule 9, be
released with the
agreement of the Administrator and the acquiring company for a new option
which
complies with, and in accordance with, the terms of paragraph 15 of
Schedule 9.
Except where Options are to be exchanged in accordance with this Rule 20
Options
not exercised at the end of the period of notice shall terminate in
accordance with
Section 12(c) of the Plan.
	 
	 	 	*(Section 13 of the Plan)
	 
	21.	 	Notwithstanding Section 13 of the Plan the date of grant of an Option to
which the UK
Rules apply shall be a date which is no later than 30 days after the date
on which the
exercise price for the Shares is determined.
	 
	 	 	*(Section 14 of the Plan)
	 
	22.	 	If the approval status of the Sub-Plan granted under Schedule 9
ICTA 1988 is to be retained then no amendment or modification to the UK
Rules or to the Plan in so far

 

 

	 	 	as it relates to Options granted or to be granted under the Sub-Plan shall
take effect until such amendment or modification shall have been approved by
the United Kingdom Board of Inland Revenue. The Company undertakes to
provide to the United Kingdom Board of Inland Revenue details of any
amendments to the Sub-Plan as soon as possible for this purpose.<PAGE>
                                                                     Exhibit 4.1

                           MARLIN LEASING CORPORATION
               SECOND AMENDED AND RESTATED REGISTRATION AGREEMENT

      This SECOND AMENDED AND RESTATED REGISTRATION AGREEMENT is made as of
April 7, 2000, by and among Marlin Leasing Corporation, a Delaware corporation
(the "Company"), Primus Capital Fund IV Limited Partnership, a Delaware limited
partnership ("PCF IV"), Primus Executive Fund Limited Partnership, a Delaware
limited partnership ("PEF"), Deutsche Morgan Grenfell, Inc., a Delaware
corporation ("DMG"), ING (U.S.) Capital LLC, a Delaware limited liability
company ("ING") and Wachovia Capital Investments, Inc., a Georgia corporation
("Wachovia"). Unless otherwise provided in this Agreement, capitalized terms
used herein shall have the meanings set forth in paragraph 8 hereof.

      WHEREAS, (i) PCF IV and PEF have heretofore purchased shares of the
Company's Class A Convertible Preferred Stock, par value $0.01 per share (the
"Class A Preferred"), and shares of the Company's Class B Convertible Preferred
Stock, par value $0.01 per share (the "Class B Preferred"), pursuant to a
purchase agreement among PCF IV, PEF and the Company dated as of February 25,
1998 (the "1998 Purchase Agreement"), (ii) the Company has heretofore issued the
DMG Warrant (as defined herein) to DMG and (iii) in connection therewith, among
other things, the Company, PCF IV, PEF and DMG entered into a Registration
Agreement dated as of February 25, 1998 (the "Original Agreement");

      WHEREAS, (i) PCF IV, PEF and ING have heretofore purchased shares of the
Company's Class C Convertible Preferred Stock, par value $0.01 per share (the
"Class C Preferred"), pursuant to a purchase agreement among PCF IV, PEF, ING
and the Company dated as of March 30, 1999 (the "1999 Purchase Agreement"), (ii)
the Company has heretofore issued the ING Warrant (as defined herein) to ING and
(iii) in connection therewith, among other things, the Company, PCF IV, PEF and
DMG entered into a Registration Agreement dated as of March 30, 1999 (the
"Amended and Restated Agreement");

      WHEREAS, the Company and Wachovia are parties to a certain purchase
agreement dated as of the date hereof (the "Wachovia Note Purchase Agreement")
whereby the Company will issue a 11.0% senior subordinated note (or notes issued
in accordance with the Wachovia Note Purchase Agreement) in the aggregate
principal amount of $5,000,000 due March 30, 2006 and in connection therewith
will issue a warrant (or warrants issued in accordance with the Warrant
Agreement) (collectively, the "Wachovia Warrant") to purchase a certain number
of shares of Class A Common pursuant to the Wachovia Note Purchase Agreement and
a Warrant Agreement dated as of the date hereof by and between the Company and
Wachovia;

      WHEREAS, the Company, PCF IV, PEF, DMG, ING and Wachovia desire that this
Agreement supersede, replace, amend and restate the Amended and Restated
Agreement in its entirety; and

      WHEREAS, the execution and delivery of this Agreement is a condition to
the Closing under the Wachovia Note Purchase Agreement.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby agree to amend and
restate the Amended and Restated Agreement as follows:

      The parties hereto hereby agree as follows:
<PAGE>
      1. Demand Registrations.

      (a) Requests for Registration. At any time after the Company has completed
a public offering of its Class A Common under the Securities Act, the holders of
a majority of the Investor Registrable Securities and the holders of a majority
of the Warrant Registrable Securities may each request registration under the
Securities Act of all or any portion of their Registrable Securities on Form S-1
or any similar long-form registration ("Long-Form Registrations"), and the
holders of a majority of the Investor Registrable Securities and the holders of
a majority of the Warrant Registrable Securities may each request registration
under the Securities Act of all or any portion of their Registrable Securities
on Form S-2 or S-3 or any similar short-form registration ("Short-Form
Registrations") if available. All registrations requested pursuant to this
paragraph 1(a) are referred to herein as "Demand Registrations." Each request
for a Demand Registration shall specify the approximate number of Registrable
Securities requested to be registered and the anticipated per share price range
for such offering. Within ten days after receipt of any such request, the
Company shall give written notice of such requested registration to all other
holders of Registrable Securities and shall, subject to paragraph 1(d) below,
include in such registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within 15 days
after the receipt of the Company's notice.

      (b) Long-Form Registrations. The holders of Investor Registrable
Securities shall be entitled to request (i) two Long-Form Registrations in which
the Company shall pay all Registration Expenses ("Company-paid Long-Form
Registrations") and (ii) two Long-Form Registrations in which the holders of
Registrable Securities shall pay their share of the Registration Expenses as
provided in paragraph 5 hereof. The holders of Warrant Registrable Securities
shall be entitled to request one Company-paid Long Form Registration (unless
prior thereto such holders have exercised their rights under paragraph 1(c)
below). A registration shall not count as one of the permitted Long-Form
Registrations until it has become effective, and neither the last or any
subsequent Company-paid Long-Form Registration nor the last or any subsequent
Long-Form Registration pursuant to clause (ii) above shall count as one of the
permitted Long-Form Registrations unless the holders of Registrable Securities
are able to register and sell at least 90% of the Registrable Securities
requested to be included in such registration; provided that in any event the
Company shall pay all Registration Expenses in connection with any registration
initiated as a Company-paid Long-Form Registration whether or not it has become
effective and whether or not such registration has counted as one of the
permitted Company-paid Long-Form Registrations.

      (c) Short-Form Registrations. In addition to the Long-Form Registrations
provided pursuant to paragraph 1(b), the holders of Investor Registrable
Securities shall be entitled to request an unlimited number of Short-Form
Registrations in which the Company shall pay all Registration Expenses, and the
holders of Warrant Registrable Securities shall be entitled to request one
Short-Form Registration in which the Company shall pay all Registration Expenses
(unless prior thereto such holders have exercised their rights under paragraph
1(b) above). Demand Registrations shall be Short-Form Registrations whenever the
Company is permitted to use any applicable short form. After the Company has
become subject to the reporting requirements of the Securities Exchange Act, the
Company shall use its best efforts to make Short-Form Registrations on Form S-3
available for the sale of Registrable Securities. As described in this paragraph
1(c) and paragraph 1(b) above, the holders of Warrant Registrable Securities
shall only be entitled to initiate one Demand Registration under this Agreement
(which single Demand Registration may be either a Long-Form Registration or a
Short-Form Registration) (it being understood that a registration will not count
as such single Demand Registration until it has become effective). However, if
the holders of Warrant Registrable Securities are not able to register and sell
at least 90% of the Warrant Registrable Securities requested to be included in
such registration, such holders shall be entitled to request one additional
registration hereunder in which the Company shall pay all Registration Expenses
and if the holders of Warrant Registrable Securities are not able to register
and sell at least an aggregate of 50% of the Warrant Registrable Securities
requested to be included in both the single Demand Registration and the
additional registration, such holders shall be entitled to request one
additional registration hereunder in which the Company shall pay all
Registration Expenses.

      (d) Priority on Demand Registrations. The Company shall not include in any
Demand Registration any securities which are not Registrable Securities without
the prior written consent of the holders of a

                                       2
<PAGE>
majority of the Registrable Securities included in such registration. If a
Demand Registration is an underwritten offering and the managing underwriters
advise the Company in writing that in their opinion the number of Registrable
Securities and, if permitted hereunder, other securities requested to be
included in such offering exceeds the number of Registrable Securities and other
securities, if any, which can be sold in an orderly manner in such offering
within a price range acceptable to the holders of a majority of the Registrable
Securities initially requesting registration, the Company shall include in such
registration prior to the inclusion of any securities which are not Registrable
Securities the number of Registrable Securities requested to be included which
in the opinion of such underwriters can be sold in an orderly manner within the
price range of such offering, pro rata among the respective holders thereof on
the basis of the amount of Registrable Securities owned by each such holder. Any
Persons other than holders of Registrable Securities who participate in Demand
Registrations which are not at the Company's expense must pay their share of the
Registration Expenses as provided in paragraph 5 hereof.

      (e) Restrictions on Registrations. During the first eighteen (18) months
following the Company's initial public offering of Class A Common, the Company
shall not be obligated to effect any Demand Registration within 180 days after
the effective date of a previous Demand Registration and thereafter the Company
shall not be obligated to effect any Demand Registration within 360 days after
the effective date of a previous Demand Registration. The Company may postpone
for up to 90 days the filing or the effectiveness of a registration statement
for a Demand Registration if the Company's board of directors determines in its
reasonable good faith judgment that such Demand Registration would reasonably be
expected to have a material adverse effect on any proposal or plan by the
Company to engage in any acquisition of assets (other than in the ordinary
course of business) or any merger, consolidation, tender offer, reorganization
or similar transaction; provided that in such event, the holders of Registrable
Securities initially requesting such Demand Registration shall be entitled to
withdraw such request and, if such request is withdrawn, such Demand
Registration shall not count as one of the permitted Demand Registrations
hereunder and the Company shall pay all Registration Expenses in connection with
such registration. The Company may delay a Demand Registration hereunder only
once in any twelve-month period.

      (f) Other Registration Rights. Except as provided in this Agreement, the
Company shall not grant to any Persons the right to request the Company to
register any equity securities of the Company, or any securities convertible or
exchangeable into or exercisable for such securities, without the prior written
consent of the holders of a majority of the Registrable Securities.

      2. Piggyback Registrations.

      (a) Right to Piggyback. Whenever the Company proposes to register any of
its securities under the Securities Act (other than pursuant to a Demand
Registration) and the registration form to be used may be used for the
registration of Registrable Securities (a "Piggyback Registration"), the Company
shall give prompt written notice to all holders of Registrable Securities of its
intention to effect such a registration and shall, subject to paragraphs 2(c)
and 2(d) below, include in such registration all Registrable Securities with
respect to which the Company has received written requests for inclusion therein
within 20 days after the receipt of the Company's notice.

      (b) Piggyback Expenses. The Registration Expenses of the holders of
Registrable Securities shall be paid by the Company in all Piggyback
Registrations.

      (c) Priority on Primary Registrations. If a Piggyback Registration is an
underwritten primary registration on behalf of the Company, and the managing
underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number
which can be sold in such offering without adversely affecting the marketability
of the offering, the Company shall include in such registration (i) first, the
securities the Company proposes to sell, (ii) second, the Registrable Securities
requested to be included in such registration, pro rata among the holders of
such Registrable Securities on the basis of the number of shares owned by each
such holder, and (iii) third, other securities requested to be included in such
registration.

                                       3
<PAGE>
      (d) Priority on Secondary Registrations. If a Piggyback Registration is an
underwritten secondary registration on behalf of holders of the Company's
securities, and the managing underwriters advise the Company in writing that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without
adversely affecting the marketability of the offering, the Company shall include
in such registration (i) first, the securities requested to be included therein
by the holders requesting such registration and the Registrable Securities
requested to be included in such registration, pro rata among the holders of
such securities on the basis of the number of securities owned by each such
holder, and (ii) second, other securities requested to be included in such
registration.

      (e) Other Registrations. If the Company has previously filed a
registration statement with respect to Registrable Securities pursuant to
paragraph 1 or pursuant to this paragraph 2, and if such previous registration
has not been withdrawn or abandoned, the Company shall not file or cause to be
effected any other registration of any of its equity securities or securities
convertible or exchangeable into or exercisable for its equity securities under
the Securities Act (except on Form S-8 or any successor form), whether on its
own behalf or at the request of any holder or holders of such securities, until
a period of at least 180 days has elapsed from the effective date of such
previous registration.

      3. Holdback Agreements.

      (a) Each holder of Registrable Securities shall not effect any public sale
or distribution (including sales pursuant to Rule 144) of equity securities of
the Company, or any securities convertible into or exchangeable or exercisable
for such securities, during the seven days prior to and the 90-day period
beginning on the effective date of the Company's initial public offering of
Class A Common under the Securities Act, unless the underwriters managing the
registered public offering otherwise agree (it being understood that each holder
of Registrable Securities will be notified of such sale or distribution on or
prior to the beginning of such holdback period).

      (b) The Company (i) shall not effect any public sale or distribution of
its equity securities, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to and during the
90-day period beginning on the effective date of the Company's initial public
offering of Class A Common under the Securities Act or any underwritten Demand
Registration or any underwritten Piggyback Registration (except as part of such
underwritten registration or pursuant to registrations on Form S-8 or any
successor form), unless the underwriters managing the registered public offering
otherwise agree, and (ii) shall cause each holder of at least 2% of its Class A
Common, or any securities convertible into or exchangeable or exercisable for
Class A Common, purchased from the Company at any time after the date of this
Agreement (other than in a registered public offering) to agree not to effect
any public sale or distribution (including sales pursuant to Rule 144) of any
such securities during any such period (except as part of such underwritten
registration, if otherwise permitted), unless the underwriters managing the
registered public offering otherwise agree.

      4. Registration Procedures. Whenever the holders of Registrable Securities
have requested that any Registrable Securities be registered pursuant to this
Agreement, the Company shall use its best efforts to effect the registration and
the sale of such Registrable Securities in accordance with the intended method
of disposition thereof, and pursuant thereto the Company shall as expeditiously
as possible:

      (a) prepare and file with the Securities and Exchange Commission a
registration statement with respect to such Registrable Securities and use its
best efforts to cause such registration statement to become effective; provided
that before filing a registration statement or prospectus or any amendments or
supplements thereto, the Company shall furnish to the counsel selected by the
holders of a majority of the Registrable Securities covered by such registration
statement copies of all such documents proposed to be filed (which documents
shall be subject to the review and comment of such counsel);

      (b) notify each holder of Registrable Securities of the effectiveness of
each registration statement filed hereunder and prepare and file with the
Securities and Exchange Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be
necessary to

                                       4
<PAGE>
keep such registration statement effective for a period of not less than 180
days and comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such registration statement during such
period in accordance with the intended methods of disposition by the sellers
thereof set forth in such registration statement;

      (c) furnish to each seller of Registrable Securities such number of copies
of such registration statement, each amendment and supplement thereto, the
prospectus included in such registration statement (including each preliminary
prospectus) and such other documents as such seller may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by such
seller;

      (d) use its best efforts to register or qualify such Registrable
Securities under such other securities or blue sky laws of such jurisdictions as
any seller reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller; provided that the Company shall not be required to (i) qualify generally
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this subparagraph, (ii) subject itself to taxation in any such
jurisdiction or (iii) consent to general service of process in any such
jurisdiction;

      (e) notify each seller of such Registrable Securities, at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, of the happening of any event as a result of which the prospectus included
in such registration statement contains an untrue statement of a material fact
or omits any fact necessary to make the statements therein not misleading, and,
at the request of any such seller, the Company shall prepare a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus shall not contain an untrue
statement of a material fact or omit to state any fact necessary to make the
statements therein not misleading;

      (f) cause all such Registrable Securities to be listed on each securities
exchange on which similar securities issued by the Company are then listed and,
if not so listed, to be listed on the NASD automated quotation system and, if
listed on the NASD automated quotation system, use its best efforts to secure
designation of all such Registrable Securities covered by such registration
statement as a NASDAQ "national market system security" within the meaning of
Rule 11Aa2-1 of the Securities and Exchange Commission or, failing that, to
secure NASDAQ authorization for such Registrable Securities and, without
limiting the generality of the foregoing, to arrange for at least two market
makers to register as such with respect to such Registrable Securities with the
NASD;

      (g) provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement;

      (h) enter into such customary agreements (including underwriting
agreements in customary form) and take all such other actions as the holders of
a majority of the Registrable Securities being sold or the underwriters, if any,
reasonably request in order to expedite or facilitate the disposition of such
Registrable Securities (including effecting a stock split or a combination of
shares);

      (i) make available for inspection by any seller of Registrable Securities,
any underwriter participating in any disposition pursuant to such registration
statement and any attorney, accountant or other agent retained by any such
seller or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company's officers,
directors, employees and independent accountants to supply all information
reasonably requested by any such seller, underwriter, attorney, accountant or
agent in connection with such registration statement;

      (j) otherwise use its best efforts to comply with all applicable rules and
regulations of the Securities and Exchange Commission, and make available to its
security holders, as soon as reasonably practicable, an earnings statement
covering the period of at least twelve months beginning with the first day of
the Company's first full calendar quarter after the effective date of the
registration statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder;

                                       5
<PAGE>
      (k) permit any holder of Registrable Securities which holder, in its sole
and exclusive judgment, might be deemed to be an underwriter or a controlling
person of the Company, to participate in the preparation of such registration or
comparable statement and to require the insertion therein of material, furnished
to the Company in writing, which in the reasonable judgment of such holder and
its counsel should be included;

      (l) in the event of the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any common stock included in such registration statement for sale in any
jurisdiction, the Company shall use its best efforts promptly to obtain the
withdrawal of such order;

      (m) use its best efforts to cause such Registrable Securities covered by
such registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the sellers
thereof to consummate the disposition of such Registrable Securities; and

      (n) obtain a cold comfort letter from the Company's independent public
accountants in customary form and covering such matters of the type customarily
covered by cold comfort letters as the holders of a majority of the Registrable
Securities being sold reasonably request; provided that such Registrable
Securities constitute at least 10% of the securities covered by such
registration statement).

      5. Registration Expenses.

      (a) All expenses incident to the Company's performance of or compliance
with this Agreement, including without limitation all registration and filing
fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses, messenger and delivery expenses, fees and disbursements of custodians,
and fees and disbursements of counsel for the Company and all independent
certified public accountants, underwriters (excluding discounts and commissions)
and other Persons retained by the Company (all such expenses being herein called
"Registration Expenses"), shall be borne as provided in this Agreement, except
that the Company shall, in any event, pay its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit or
quarterly review, the expense of any liability insurance and the expenses and
fees for listing the securities to be registered on each securities exchange on
which similar securities issued by the Company are then listed or on the NASD
automated quotation system.

      (b) In connection with each Demand Registration and each Piggyback
Registration, the Company shall reimburse the holders of Registrable Securities
included in such registration for the fees and disbursements of one counsel
chosen by the holders of a majority of the Registrable Securities requesting
such registration and for the fees and disbursements of each additional counsel
retained by any holder of Registrable Securities for the purpose of rendering a
legal opinion on behalf of such holder in connection with any underwritten
Demand Registration or Piggyback Registration.

      (c) To the extent Registration Expenses are not required to be paid by the
Company, each holder of securities included in any registration hereunder shall
pay those Registration Expenses allocable to the registration of such holder's
securities so included, and any Registration Expenses not so allocable shall be
borne by all sellers of securities included in such registration in proportion
to the aggregate selling price of the securities to be so registered.

                                       6
<PAGE>
      6. Indemnification.

      (a) The Company agrees to indemnify, to the extent permitted by law, each
holder of Registrable Securities, its officers and directors and each Person who
controls such holder (within the meaning of the Securities Act) against all
losses, claims, damages, liabilities and expenses caused by any untrue or
alleged untrue statement of material fact contained in any registration
statement, prospectus or preliminary prospectus or any amendment thereof or
supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, except insofar as the same are caused by or contained in any
information furnished in writing to the Company by such holder expressly for use
therein or by such holder's failure to deliver a copy of the registration
statement or prospectus or any amendments or supplements thereto after the
Company has furnished such holder with a sufficient number of copies of the
same. In connection with an underwritten offering, the Company shall indemnify
such underwriters, their officers and directors and each Person who controls
such underwriters (within the meaning of the Securities Act) to the same extent
as provided above with respect to the indemnification of the holders of
Registrable Securities.

      (b) In connection with any registration statement in which a holder of
Registrable Securities is participating, each such holder shall furnish to the
Company in writing such information and affidavits as the Company reasonably
requests for use in connection with any such registration statement or
prospectus and, to the extent permitted by law, shall indemnify the Company and
the underwriter, and their directors and officers and each Person who controls
the Company or the underwriter, as the case may be (within the meaning of the
Securities Act), against any losses, claims, damages, liabilities and expenses
resulting from any untrue or alleged untrue statement of material fact contained
in the registration statement, prospectus or preliminary prospectus or any
amendment thereof or supplement thereto or any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, but only to the extent that such untrue statement or
omission is contained in any information or affidavit so furnished in writing by
such holder; provided that the obligation to indemnify shall be individual, not
joint and several, for each holder and shall be limited to the net amount of
proceeds received by such holder from the sale of Registrable Securities
pursuant to such registration statement.

      (c) Any Person entitled to indemnification hereunder shall (i) give prompt
written notice to the indemnifying party of any claim with respect to which it
seeks indemnification (provided that the failure to give prompt notice shall not
impair any Person's right to indemnification hereunder to the extent such
failure has not prejudiced the indemnifying party) and (ii) unless in such
indemnified party's reasonable judgment a conflict of interest between such
indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party. If such defense is assumed,
the indemnifying party shall not be subject to any liability for any settlement
made by the indemnified party without its consent (but such consent shall not be
unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim shall not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment
of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to such
claim.

      (d) The indemnification provided for under this Agreement shall remain in
full force and effect regardless of any investigation made by or on behalf of
the indemnified party or any officer, director or controlling Person of such
indemnified party and shall survive the transfer of securities. The Company also
agrees to make such provisions, as are reasonably requested by any indemnified
party, for contribution to such party in the event the Company's indemnification
is unavailable for any reason.

      7. Participation in Underwritten Registrations. No Person may participate
in any registration hereunder which is underwritten unless such Person (i)
agrees to sell such Person's securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements; provided that no

                                       7
<PAGE>
holder of Registrable Securities included in any underwritten registration shall
be required to make any representations or warranties to the Company or the
underwriters (other than representations and warranties regarding such holder
and such holder's intended method of distribution) or to undertake any
indemnification obligations to the Company and the underwriters with respect
thereto, except as otherwise provided in paragraph 6 hereof.

      8. Definitions.

      (a) "Class A Common " means the Company's Class A Common Stock, par value
$0.01 per share.

      (b) "Class B Common " means the Company's Class B Common Stock, par value
$0.01 per share.

      (c) "DMG Warrant" means that certain warrant to purchase Class B Common
issued to DMG pursuant to the transactions contemplated by that certain Master
Lease Receivables Asset-Backed Financing Facility Agreement, dated as of January
12, 1998, by and among the Company, Marlin Leasing Receivables Corp. I and DMG.

      (d) "ING Warrant" means that certain warrant to purchase Class A Common
issued to ING pursuant to the transactions contemplated by that certain Purchase
Agreement, dated as of the date hereof, by and between the Company and ING.

      (e) "Investor Registrable Securities" means (i) any Class A Common issued
upon the conversion of any Class A Preferred issued pursuant to the 1998
Purchase Agreement, (ii) any Class A Common issued upon the conversion of any
Class B Common issued upon conversion of any Class B Preferred issued pursuant
to the 1998 Purchase Agreement, (iii) any Class A Common issued upon the
conversion of any Class A Preferred issued upon the conversion of any Class B
Preferred issued pursuant to the 1998 Purchase Agreement, (iv) any Class A
Common issued upon conversion of any Class C Preferred issued pursuant to the
1999 Purchase Agreement and (v) any Class A Common or Class B Common issued or
issuable with respect to the securities referred to in clauses (i), (ii), (iii)
and (iv) above by way of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization and (vi) any other shares of Class A Common or other common stock
held by Persons holding securities described in clauses (i) to (v), inclusive,
above.

      (f) "Registrable Securities" means, collectively, the Investor Registrable
Securities and the Warrant Registrable Securities. As to any particular
Registrable Securities, such securities shall cease to be Registrable Securities
when they have been distributed to the public pursuant to a offering registered
under the Securities Act or sold to the public through a broker, dealer or
market maker in compliance with Rule 144 under the Securities Act (or any
similar rule then in force) or repurchased by the Company or any Subsidiary. For
purposes of this Agreement, a Person shall be deemed to be a holder of
Registrable Securities, and the Registrable Securities shall be deemed to be in
existence, whenever such Person has the right to acquire directly or indirectly
such Registrable Securities (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected, and such Person shall be entitled to exercise the
rights of a holder of Registrable Securities hereunder.

      (g) "Warrant Registrable Securities" means (i) any Class A Common issued
or issuable upon the conversion of any Class B Common issued or issuable upon
the exercise of the DMG Warrant, (ii) any Class A Common issued or issuable upon
the exercise of the ING Warrant, (iii) any Class A Common issued or issuable
upon the exercise of the Wachovia Warrant and (iv) any Class A Common or Class B
Common issued or issuable with respect to the securities referred to in clauses
(i), (ii) and (iii) above by way of a stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization. As to the Warrant Registrable Securities held by any
Person, such securities shall not constitute Warrant Registrable

                                       8
<PAGE>
Securities at any time when and for so long as such holder can sell without
registration all such Warrant Registrable Securities owned by such holder to the
public in a single transaction in compliance with Rule 144 under the Securities
Act (or any similar rule then in force).

      (h) Unless otherwise stated, other capitalized terms contained herein have
the meanings set forth in the 1999 Purchase Agreement.

      9. Miscellaneous.

      (a) Selection of Investment Bankers. The selection of investment banker(s)
and manager(s) for any public offering or private sale by the Company of its
securities must be approved by the holders of a majority of the Registrable
Securities participating in such offering or sale, which approval shall not be
unreasonably withheld so long as such investment banker(s) and manager(s) are of
recognized national standing and, in the case of a public offering, can
reasonably be expected to provide the requisite degree of analytical and other
support to the Company and the investing public following such offering.

      (b) No Inconsistent Agreements. The Company shall not hereafter enter into
any agreement with respect to its securities which is inconsistent with or
violates the rights granted to the holders of Registrable Securities in this
Agreement.

      (c) Adjustments Affecting Registrable Securities. The Company shall not
take any action, or permit any change to occur, with respect to its securities
which would materially and adversely affect the ability of the holders of
Registrable Securities to include such Registrable Securities in a registration
undertaken pursuant to this Agreement or which would materially and adversely
affect the marketability of such Registrable Securities in any such registration
(including, without limitation, effecting a stock split or a combination of
shares).

      (d) Remedies. Any Person having rights under any provision of this
Agreement shall be entitled to enforce such rights specifically, to recover
damages caused by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law. The parties hereto agree and
acknowledge that money damages would not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or other security) for specific performance and for other injunctive
relief in order to enforce or prevent violation of the provisions of this
Agreement.

      (e) Amendments and Waivers. Except as otherwise provided herein, the
provisions of this Agreement may be amended or waived only upon the prior
written consent of the Company and holders of a majority of the Registrable
Securities; provided that no amendment or waiver of Sections 1 through 6
(inclusive) of this Agreement which materially and adversely affects the holders
of Warrant Registrable Securities in a manner inconsistent with the treatment of
the holders of other Registrable Securities shall be effective without the prior
written consent of the holders of a majority of Warrant Registrable Securities
(except that no amendment or waiver of (i) the demand rights of the holders of
Warrant Registrable Securities in Section 1 above or (ii) this Section 9(e)
shall be effective without the prior written consent of the holders of a
majority of Warrant Registrable Securities).

      (f) Successors and Assigns. All covenants and agreements in this Agreement
by or on behalf of any of the parties hereto shall bind and inure to the benefit
of the respective successors and assigns of the parties hereto whether so
expressed or not. In addition, whether or not any express assignment has been
made, the provisions of this Agreement which are for the benefit of purchasers
or holders of Registrable Securities are also for the benefit of, and
enforceable by, any subsequent holder of Registrable Securities.

      (g) Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

      (h) Counterparts. This Agreement may be executed simultaneously in two or
more counterparts (including by means of telecopied signature pages), any one of
which need not contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same Agreement.

                                       9
<PAGE>
      (i) Descriptive Headings. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

      (j) Governing Law . The corporate law of the State of Delaware shall
govern all issues and questions concerning the relative rights and obligations
of the Company and its stockholders. All other issues and questions concerning
the construction, validity, enforcement and interpretation of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of New Jersey, without giving effect to
any choice of law or conflict of law rules or provisions (whether of New Jersey
or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New Jersey.

      (k) Notices . All notices, demands or other communications to be given or
delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient, sent to the recipient by reputable overnight courier service (charges
prepaid) or mailed to the recipient by certified or registered mail, return
receipt requested and postage prepaid. Such notices, demands and other
communications shall be sent to PCF IV, PEF, ING and Wachovia at the address
indicated on the attached Schedule of Purchasers attached hereto and to the
Company and to DMG at the addresses indicated below:

          If to the Company:

          Marlin Leasing Corporation
          124 Gaither Drive, Suite 170
          Mount Laurel, New Jersey  08054
          Telephone:  (888) 479-9111
          Telecopy:  (888) 479-1100
          Attention:  Chief Executive Officer

          with a copy to:

          Morgan, Lewis & Bockius, L.L.P.
          1701 Market Street
          Philadelphia, PA 19103-2921
          Telephone:  (215) 963-5000
          Telecopy:  (215) 963-5299
          Attention:  Stephen Goodman

          If to DMG:

          Deutsche Morgan Grenfell, Inc.
          31 West 52nd Street
          New York, New York 10019
          Telecopy:  (212) 469-7185
          Telephone (212) 469-7689
          Attention:  Christopher Beaudet

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

                                    * * * * *

                                       10
<PAGE>
      IN WITNESS WHEREOF, the parties have executed this Second Amended and
Restated Registration Agreement as of the date first written above.

                                  MARLIN LEASING CORPORATION

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  PRIMUS CAPITAL FUND IV LIMITED PARTNERSHIP

                                  By:   Primus Venture Partners IV
                                        Limited Partnership, its general partner

                                  By:   Primus Venture Partners IV, Inc.,
                                        its general partner

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  PRIMUS EXECUTIVE FUND LIMITED PARTNERSHIP

                                  By:   Primus Venture Partners IV
                                        Limited Partnership, its general partner

                                  By:   Primus Venture Partners IV, Inc.,
                                        its general partner

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  DEUTSCHE BANK SECURITIES INC.

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                  ING (U.S.) CAPITAL LLC

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                             WACHOVIA CAPITAL INVESTMENTS, INC.

                                  By:
                                        ----------------------------------------
                                  Its:
                                        ----------------------------------------

                                       11
<PAGE>
                             SCHEDULE OF PURCHASERS

Primus Capital Fund IV Limited Partnership   Wachovia Capital Investments, Inc.
5900 Landerbrook Drive                       191 Peachtree Street, N.E.
Suite 200                                    26th Floor, Mail Code GA
Cleveland, Ohio  44124                       Atlanta, Georgia 30303
Telephone: (440) 684-7300                    Telephone: (404) 332-1395
Telecopy: (440) 684-7342                     Telecopy: (404) 332-1392
Attention:  Loyal W. Wilson                  Attention: Lawrence J. DeAngelo

Primus Executive Fund Limited Partnership    with a copy to:
5900 Landerbrook Drive
Suite 200                                    Kilpatrick Stockton, LLP
Cleveland, Ohio  44124                       1100 Peachtree Street
Telephone: (440) 684-7300                    Suite 2800
Telecopy: (440) 684-7342                     Atlanta, Georgia
Attention:  Loyal W. Wilson                  Telephone: (404) 815-6111
                                             Telecopy: (404) 815-6555
                                             Attention: Richard Cicchillo
with a copy to:

Kirkland & Ellis
200 E. Randolph Drive
Chicago, Illinois 60601
Telephone: (312) 861-2294
Telecopy: (312) 861-2200
Attention: Ted H. Zook

ING (U.S.) Capital LLC
Park Avenue Plaza
55 East 52nd Street, 36th Floor
New York, NY 10055
Telephone: (212) 409-1955
Telecopy: (212) 593-3362
Attention: David P. Scopelliti
with a copy to:

Mayer Brown & Platt
1675 Broadway
New York, NY  10019
Telephone: (212) 506-2630
Telecopy: (212) 262-1910
Attention: David K. Duffe

                                       12
<PAGE>
                           MARLIN LEASING CORPORATION
                               FIRST AMENDMENT TO
               SECOND AMENDED AND RESTATED REGISTRATION AGREEMENT

         THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED REGISTRATION
AGREEMENT (the "AMENDMENT") is made as of February 28, 2001, by and among Marlin
Leasing Corporation, a Delaware corporation (the "COMPANY") and the parties to
that certain Second Amended and Restated Registration Agreement, dated as of
April 7, 2000 (the "REGISTRATION AGREEMENT"). All capitalized terms used but not
defined herein shall have the meanings prescribed to them in the Registration
Agreement.

         WHEREAS, the Company and Wachovia are parties to a certain purchase
agreement dated as of the date hereof (the "WACHOVIA II PURCHASE AGREEMENT"),
whereby the Company will issue an 11.0% senior subordinated note (or notes)
issued in accordance with the Wachovia II Purchase Agreement, due March 30,
2006, in the aggregate principal amount of $2,150,000, and a warrant (or
warrants) issued in accordance with the Warrant Agreement (as defined in the
Wachovia II Purchase Agreement) (the "WACHOVIA II WARRANT") to purchase, on or
after the Lapse Date, up to the lesser of (i) 93,639 Class A shares of common
stock of the Company or (ii) a number of shares of Class A common stock of the
Company representing, as of the Lapse Date, two percent (2%) of the common
shares of the Company on a Fully-Diluted Basis (each such term as defined in the
Wachovia II Purchase Agreement);

         WHEREAS, the Company, PCF IV, PEF, DMG, ING and Wachovia desire to
amend certain provisions the Registration Agreement as provided herein; and

         WHEREAS, the execution and delivery of this Amendment is a condition to
the Closing of under the Wachovia II Purchase Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby amend the Registration
Agreement as follows:

         1. Amendment of Registration Agreement. From and after the date hereof,
all references to "Wachovia Warrant" contained in the Registration Agreement
shall be deemed to include the Wachovia Warrant issued pursuant to the Wachovia
Note Purchase Agreement and the Wachovia II Warrant issued pursuant to the
Wachovia II Purchase Agreement. From and after the date hereof, all references
to "this Agreement" (or similar references) contained in the Registration
Agreement shall be deemed references to the Registration Agreement as amended
hereby.

         2. Ratification of Registration Agreement. Except as expressly modified
by the terms of this Amendment, the Registration Agreement shall continue in
full force and effect in accordance with its terms.
<PAGE>
         3. Miscellaneous.

            3.1 Gender. Any pronoun used herein shall be deemed to cover all
genders.

            3.2 Titles. The titles of the sections of this Amendment are for
convenience of reference only and are not to be considered in construing this
Amendment.

            3.3 Counterparts. This Amendment may be executed in any number of
counterparts (including by means of telecopied signature pages), each of which
shall be an original, but all of which together shall constitute one instrument.

            3.4 Governing Law. The corporate law of the State of Delaware shall
govern all issues and questions concerning the relative rights and obligations
of the Company and its stockholders. All other questions concerning the
construction, validity, enforcement and interpretation of this Amendment shall
be governed by, and construed in accordance with, the laws of the State of New
Jersey, without giving effect to any choice of law or conflict of law rules or
provision (whether of New Jersey or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New Jersey.

                         [Signatures Begin on Next Page]

                                       2
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Amendment
either themselves or by their duly authorized representatives as of the date
first written above.

                                     MARLIN LEASING CORPORATION

                                     By:
                                        --------------------------------------
                                     Name:
                                          ------------------------------------
                                     Title:
                                           -----------------------------------

                                     PRIMUS CAPITAL FUND IV LIMITED PARTNERSHIP

                                     By:  Primus Venture Partners Limited
                                          Partnership, its general partner

                                     By:  Primus Venture Partners IV, Inc.,
                                          its general partner

                                              By:
                                                 -----------------------------
                                              Name:
                                                   ---------------------------
                                              Title:
                                                    --------------------------

                                     PRIMUS EXECUTIVE FUND LIMITED PARTNERSHIP

                                     By:  Primus Venture Partners Limited
                                          Partnership, its general partner

                                     By:  Primus Venture Partners IV, Inc.,
                                          its general partner

                                              By:
                                                 -----------------------------
                                              Name:
                                                   ---------------------------
                                              Title:
                                                    --------------------------

                                     ING (U.S.) CAPITAL LLC

                                     By:
                                        --------------------------------------
                                     Name:
                                          ------------------------------------
                                     Title:
                                           -----------------------------------

                                     3
<PAGE>
                                     DEUTSCHE BANK SECURITIES INC.

                                     By:
                                        --------------------------------------
                                     Name:
                                          ------------------------------------
                                     Title:
                                           -----------------------------------

                                     By:
                                        --------------------------------------
                                     Name:
                                          ------------------------------------
                                     Title:
                                           -----------------------------------

                                     WACHOVIA CAPITAL INVESTMENTS, INC.

                                     By:
                                        --------------------------------------
                                     Name:
                                          ------------------------------------
                                     Title:
                                           -----------------------------------

                                       4
<PAGE>
                           MARLIN LEASING CORPORATION

                         SECOND AMENDMENT TO THE SECOND
                   AMENDED AND RESTATED REGISTRATION AGREEMENT

         THIS SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED REGISTRATION
AGREEMENT (the "AMENDMENT") is made as of July __, 2001, by and among Marlin
Leasing Corporation, a Delaware corporation (the "COMPANY") and the parties to
that certain Second Amended and Restated Registration Agreement, dated as of
April 7, 2000, and amended as of February 28, 2001, (the "REGISTRATION
AGREEMENT"). All capitalized terms used but not defined herein shall have the
meanings prescribed to them in the Registration Agreement.

         WHEREAS, the Company and Wachovia Capital Investments, Inc.
("WACHOVIA") are parties to a certain purchase agreement dated as of the date
hereof (the "WACHOVIA EQUITY PURCHASE AGREEMENT") whereby the Company will issue
to Wachovia up to 101,500 shares of the Company's Class D Convertible Preferred
Stock (in up to two separate closings);

         WHEREAS, the Company, PCF IV, PEF, DMG, ING and Wachovia desire to
amend certain provisions of the Registration Agreement as provided herein; and

         WHEREAS, the execution and delivery of this Amendment is a condition to
the Closing of the Wachovia III Purchase Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby amend the Registration
Agreement as follows:

         1. Amendments to Registration Agreement.

            1.1. From and after the date hereof, Sections 1(a), (b) and (c) of
the Registration Agreement shall be deleted in their entirety and the following
shall be inserted in place thereof:

            "(a) Request for Registration. At any time after the Company has
      completed a public offering of its Class A Common under the Securities
      Act, the holders of a majority of each of the Class A/C Registrable
      Securities, Class D Registrable Securities and the Warrant Registrable
      Securities may each separately request registration under the Securities
      Act of all or any portion of their Registrable Securities on Form S-1 or
      any similar long-form registration ("Long-Form Registrations"), and the
      holders of a majority of each of the Class A/C Registrable Securities,
      Class D Registrable Securities and the Warrant Registrable Securities may
      each separately request registration under the Securities Act of all or
      any portion of their Registrable Securities on Form S-2 or S-3 or any
      similar short-form registration ("Short-Form Registrations") if available.
      All registrations requested pursuant to this paragraph 1(a) are
<PAGE>
      referred to herein as "Demand Registrations." Each request for a Demand
      Registration shall specify the approximate number of Registrable
      Securities requested to be registered and the anticipated per share price
      range for such offering. Within ten days after receipt of any such
      request, the Company shall give written notice of such requested
      registration to all other holders of Registrable Securities and shall,
      subject to paragraph 1(d) below, include in such registration all
      Registrable Securities with respect to which the Company has received
      written requests for inclusion therein within 15 days after the receipt of
      the Company's notice.

            (b) Long-Form Registrations. The holders of Class A/C Registrable
      Securities and Class D Registrable Securities each separately shall be
      entitled to request (i) two Long-Form Registrations in which the Company
      shall pay all Registration Expenses ("Company-Paid Long-Form
      Registrations") and (ii) two Long-Form Registrations in which each such
      holder of Registrable Securities shall pay their share of the Registration
      Expenses as provided in paragraph 5 hereof. The holders of Warrant
      Registrable Securities shall be entitled to request one Company-Paid Long
      Form Registration (unless prior thereto such holders have exercised their
      rights under paragraph 1(c) below). A registration shall not count as one
      of the permitted Long-Form Registrations until it has become effective,
      and neither the last or any subsequent Company-Paid Long-Form Registration
      nor the last or any subsequent Long-Form Registration pursuant to clause
      (ii) above shall count as one of the permitted Long-Form Registrations
      unless the holders of Registrable Securities are able to register and sell
      at least 90% of the Registrable Securities requested by such holder to be
      included in such registration; provided that in any event the Company
      shall pay all Registration Expenses in connection with any registration
      initiated as a Company-Paid Long-Form Registration whether or not it has
      become effective and whether or not such registration has counted as one
      of the permitted Company-Paid Long-Form Registrations.

            (c) Short-Form Registrations. In addition to the Long-Form
      Registrations provided pursuant to paragraph 1(b), the holders of Class
      A/C Registrable Securities and Class D Registrable Securities each
      separately shall be entitled to request an unlimited number of Short-Form
      Registrations in which the Company shall pay all Registration Expenses,
      and the holders of Warrant Registrable Securities shall be entitled to
      request one Short-Form Registration in which the Company shall pay all
      Registration Expenses (unless prior thereto such holders have exercised
      their rights under paragraph 1(b) above). Demand Registrations shall be
      Short-Form Registrations whenever the Company is permitted to use any
      applicable short form. After the Company has become subject to the
      reporting requirements of the Securities Exchange Act, the Company shall
      use its best efforts to make Short-Form Registrations on Form S-3
      available for the sale of Registrable Securities. As described in this
      paragraph 1(c) and paragraph 1(b) above, the holders of Warrant

                                      -2-
<PAGE>
      Registrable Securities shall only be entitled to initiate one Demand
      Registration under this Agreement (which single Demand Registration may be
      either a Long-Form Registration or a Short-Form Registration) (it being
      understood that a registration will not count as such single Demand
      Registration until it has become effective). However, if the holders of
      Warrant Registrable Securities are not able to register and sell at least
      90% of the Warrant Registrable Securities requested to be included in such
      registration, such holders shall be entitled to request one additional
      registration hereunder in which the Company shall pay all Registration
      Expenses and if the holders of Warrant Registrable Securities are not able
      to register and sell at least an aggregate of 50% of the Warrant
      Registrable Securities requested to be included in both the single Demand
      Registration and the additional registration, such holders shall be
      entitled to request one additional registration hereunder in which the
      Company shall pay all Registration Expenses."

            1.2. From and after the date hereof, Section 8(e) of the
Registration Agreement shall be deleted in its entirety and the following shall
be inserted in its place:

            "(e)"Investor Registrable Securities" means (i) any Class A/C
      Registrable Securities and (ii) any Class D Registrable Securities."

            1.3. From and after the date hereof the following definitions shall
be added to the definitions in Section 8 of the Registration Agreement:

            ""Class A/C Registrable Securities" means (i) any Class A Common
      issued upon the conversion of any Class A Preferred issued pursuant to the
      1998 Purchase Agreement, (ii) any Class A Common issued upon the
      conversion of any Class A Preferred issued upon the conversion of any
      Class B Preferred issued pursuant to the 1998 Purchase Agreement, (iii)
      any Class A Common issued upon conversion of any Class C Preferred issued
      pursuant to the 1999 Purchase Agreement, (iv) any Class A Common issued or
      issuable with respect to the securities referred to in clauses (i), (ii)
      and (iii) by way of stock split or in connection with a combination of
      shares, recapitalization, merger, consolidation or other reorganization,
      and (v) any other Class A Common or other common stock held by persons
      holding securities described in clauses (i) to (iv), inclusive, above.

            "Class D Registrable Securities" means (i) any Class A Common issued
      upon the conversion of any of the Company's Class D Convertible Preferred
      Stock issued pursuant to the Purchase Agreement by and between the Company
      and Wachovia, dated as of the date hereof, (ii) any Class A Common issued
      or issuable with respect to the securities referred to in clause (i) by
      way of stock split or in connection with a combination of shares,
      recapitalization, merger, consolidation or other reorganization,

                                      -3-
<PAGE>
      and (iii) any other Class A Common or other common stock held by persons
      holding securities described in clauses (i) and (ii) above."

            1.4. From and after the date hereof the Schedule of Purchasers shall
be deleted in its entirety and the Schedule of Purchasers attached hereto shall
be inserted in its place.

            1.5. From and after the date hereof, all references to "the holders
of a majority of the Registrable Securities" shall be changed to "the holders of
65% of the Registrable Securities."

            1.6. From and after the date hereof, all references to "New Jersey"
in Section 9(j) of the Registration Agreement shall be changed to "New York."

            1.7. From and after the date hereof, all references to "this
Agreement" (or similar references) contained in the Registration Agreement shall
be deemed references to the Registration Agreement as amended hereby.

         2. Ratification of Registration Agreement. Except as expressly modified
by the terms of this Amendment, the Registration Agreement shall continue in
full force and effect in accordance with its terms.

         3. Miscellaneous.

            3.1. Gender. Any pronoun used herein shall be deemed to cover all
genders.

            3.2. Titles. The titles of the sections of this Amendment are for
convenience of reference only and are not to be considered in construing this
Amendment.

            3.3. Counterparts. This Amendment may be executed in any number of
counterparts (including by means of telecopied signature pages), each of which
shall be an original, but all of which together shall constitute one instrument.

            3.4. Governing Law. The corporate law of the State of Delaware shall
govern all issues and questions concerning the relative rights and obligations
of the Company and its stockholders. All other questions concerning the
construction, validity, enforcement and interpretation of this Amendment shall
be governed by, and construed in accordance with, the laws of the State of New
York, without giving effect to any choice of law or conflict of law rules or
provision (whether of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York.

                  [Remainder of page intentionally left blank.]

                                      -4-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Amendment
either themselves or by their duly authorized representatives as of the date
first written above.

                                    MARLIN LEASING CORPORATION

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    PRIMUS CAPITAL FUND IV LIMITED PARTNERSHIP

                                    By:  Primus Venture Partners Limited
                                         Partnership, its general partner

                                    By:  Primus Venture Partners IV, its general
                                         partner

                                         By:
                                            ------------------------------------
                                         Name:
                                              ----------------------------------
                                         Title:
                                               ---------------------------------

                                    PRIMUS EXECUTIVE FUND LIMITED PARTNERSHIP

                                    By:  Primus Venture Partners Limited
                                         Partnership, its general partner

                                    By:  Primus Venture Partners IV, its general
                                         partner

                                         By:
                                            ------------------------------------
                                         Name:
                                              ----------------------------------
                                         Title:
                                               ---------------------------------

                                    ING (U.S.) CAPITAL LLC

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                              Signature Page 1 of 2
   Second Amendment To The Second Amended and Restated Registration Agreement
<PAGE>
                                    DEUTSCH BANK ALEX. BROWN INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                                    WACHOVIA CAPITAL INVESTMENTS, INC.

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

                              Signature Page 2 of 2
   Second Amendment To The Second Amended and Restated Registration Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]