Document:

Exhibit
10.1

 

SHARE
EXCHANGE AGREEMENT

 

This
SHARE EXCHANGE AGREEMENT (the “Agreement”), dated as of October 29, 2018 (the “Effective Date”)
between Vigilant Diversified Holdings, Inc., a Nevada corporation (“VIGILANT”), on the one hand, and FUGA,
Inc., a Wyoming corporation (“FUGA”), and the holders of ordinary common shares of FUGA (each an “FUGA
Stockholder” and collectively the “FUGA Stockholders”), on the other hand.

 

WHEREAS,
the FUGA Stockholders own 500,000, common shares, no par value, of FUGA, constituting 100% of the issued and outstanding common
shares of FUGA (the “FUGA Shares”); and

 

WHEREAS,
VIGILANT is a shell company whose common stock is registered with the U.S. Securities and Exchange Commission pursuant to Section
12(g) of the Securities Exchange Act of 1934, as amended; and

 

WHEREAS,
VIGILANT presently has 500,000,000, $0.0001 par value common shares authorized; and

 

WHEREAS,
subject to the terms and conditions of this Agreement, the FUGA Stockholders believe it is in their best interests to exchange
all of the FUGA Shares for an aggregate of 5,500,000 shares of common stock (“Common Stock”), par value $.0001 per
share of VIGILANT (the “VIGILANT FUGA Shares”), or such proportionate shares as the FUGA Stockholders are willing
to exchange, delivered on the Closing Date, thereby making FUGA a subsidiary of VIGILANT; and

 

WHEREAS,
the parties intend that the exchange of stock qualifies as a tax-free reorganization under section 368(a) of the Internal Revenue
Code of 1986, as amended (the “Code”), and that the business combination contemplated hereby be accounted for as a
reverse acquisition under the purchase method for business combinations. The combination of the two companies is recorded as a
recapitalization of FUGA, pursuant to which FUGA is treated as the continuing entity.

 

WHEREAS,
VIGILANT believes it is in its best interests to acquire the FUGA Shares in exchange for VIGILANT FUGA Shares;

 

NOW,
THEREFORE, in consideration of the premises and the mutual terms, conditions and other agreements set forth herein, intending
to be legally bound, the parties agree as follows:

 

ARTICLE
I

EXCHANGE
OF SHARES

 

Section
1.1 Agreement to Exchange VIGILANT Shares for FUGA Shares.

 

a.
On the Closing Date (as hereinafter defined) and upon the terms and subject to the conditions set forth in this Agreement, the
FUGA Stockholders shall sell, assign, transfer, convey and deliver to VIGILANT the FUGA Shares set forth opposite their name on
Schedule 1.1 (Exhibit A) hereto representing the percentage of the issued and outstanding common shares of FUGA as set
forth therein), and VIGILANT shall accept such securities from the FUGA Stockholders in exchange for the issuance to the FUGA
Stockholders of the VIGILANT FUGA SHARES as set forth on Exhibit A (the “Share Exchange Transaction”);
and

 

Section
1.2 Capitalization. On the Closing Date, immediately before the Share Exchange Transaction, VIGILANT shall have authorized
500,000,000 shares of Common Stock, par value $0.0001 per share, of which 16,398,400 shares shall be issued and outstanding, all
of which are duly authorized, validly issued and fully paid and 50,000,000 shares of Preferred Stock, par value $0.0001 per share,
of which 4,000,000 are designated as Nonvoting Convertible Series A Preferred Stock, 540,000 of which were previously issued but
were converted into common stock, which leaves none currently issued and outstanding.

 

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Section
1.3 Closing. The closing of the Share Exchange Transaction (the “Closing”) shall take place at 5:00
p.m. P.D.T. on the business day after which: (i) each of the parties hereto has executed this Agreement; (ii) the issuance, by
FUGA’s independent public accounting firm, of FUGA’s audit report for the years ended December 31, 2017 and 2016 (the
“Audit Reports”) and its quarterly reviews for the three months and nine months ended September 30, 2018 and 2017
(the “Review Reports”), which are satisfactory to Vigilant’s Board of Directors and majority shareholders; (iii)
Vigilant’s board’s approval to file with the SEC of its Form 8-K, with the Audit Report and Review Report, which shall
contain Form 10 information as required under the Securities and Exchange Act of 1934, as amended; (iv) the appropriate corporate
and shareholder resolutions approving the Share Exchange Transaction; and (v) any necessary regulatory or governmental consents
or waivers (the “Closing Date”). The FUGA Stockholders shall deliver to VIGILANT the following items: (a),
within five (5) business days after the execution of this Agreement, the original stock certificates representing the FUGA Shares,
duly endorsed in blank for transfer or accompanied by appropriate stock powers duly executed in blank, which will be held until
the Closing Date, and (b) within ten (10) business days after the Closing Date, a certificate of incumbency duly recording the
registered shareholders of FUGA to reflect the ownership of VIGILANT as a result of the Share Exchange Transaction. In full consideration
for the FUGA Shares, VIGILANT (i) shall issue the VIGILANT Shares to the FUGA Stockholders within ten (10) business days after
the Closing Date in proportion to the number of FUGA Shares exchanged by each FUGA Stockholder, as detailed on Exhibit A,
attached hereto.

 

Section
1.4 Name Change. On or before the Closing, VIGILANT may change its legal name subject to Board and Shareholder approval.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF VIGILANT

 

VIGILANT
hereby represents, warrants and agrees as follows:

 

Section
2.1 Corporate Organization

 

a.
VIGILANT is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has all requisite
corporate power and authority to own its properties and assets and to conduct its business as now conducted and is duly qualified
to do business in good standing in each jurisdiction in which the nature of the business conducted by VIGILANT or the ownership
or leasing of its properties makes such qualification and being in good standing necessary, except where the failure to be so
qualified and in good standing will not have a material adverse effect on the business, operations, properties, assets, condition
or results of operation of VIGILANT (a “VIGILANT Material Adverse Effect”);

 

b.
Copies of the Articles of Incorporation and Bylaws of VIGILANT, with all amendments thereto to the date hereof, have been furnished
to FUGA and the FUGA Stockholders, and such copies are accurate and complete as of the date hereof. The minute books of VIGILANT
are current as required by law, contain the minutes of all meetings of the Board of Directors and shareholders of VIGILANT from
its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the Board of Directors
and shareholders of VIGILANT.

 

Section
2.2 Capitalization of VIGILANT.

 

a.
The authorized capital stock of VIGILANT, immediately prior to the Closing Date, consists of 500,000,000 shares of Common Stock,
par value $.0001 per share, of which 16,398,400 shares are issued and outstanding, all of which are duly authorized, validly issued
and fully paid and 50,000,000 shares of its Series A Preferred Stock, par value $0.0001 per share, 540,000 shares that were previously
issued and converted into common; therefore, none of which are currently issued and outstanding. All of the VIGILANT Shares to
be issued on the Closing Date pursuant to this Agreement have been duly authorized and will be validly issued, fully paid and
non-assessable and no personal liability will attach to the ownership thereof. As of the Closing Date, there are, no outstanding
options, warrants, agreements, commitments, conversion rights, preemptive rights or other rights to subscribe for, purchase or
otherwise acquire any shares of capital stock or any un-issued shares of capital stock of VIGILANT other than as set forth on
Schedule 2.2.a.

 

Section
2.3 Authorization and Validity of Agreements. VIGILANT has all corporate power and authority to execute and deliver
this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and
delivery of this Agreement by VIGILANT and the consummation by VIGILANT of the transactions contemplated hereby have been duly
authorized by all necessary corporate action of VIGILANT, and no other corporate proceedings on the part of VIGILANT are necessary
to authorize this Agreement or to consummate the transactions contemplated hereby.

 

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Section
2.4 No Conflict or Violation. The execution, delivery and performance of this Agreement by VIGILANT does not and will
not violate or conflict with any provision of its Articles of Incorporation or Bylaws, as amended, and does not and will not violate
any provision of law, or any order, judgment or decree of any court or other governmental or regulatory authority, nor violate
or result in a breach of or constitute (with due notice or lapse of time or both) a default under, or give to any other entity
any right of termination, amendment, acceleration or cancellation of, any contract, lease, loan agreement, mortgage, security
agreement, trust indenture or other agreement or instrument to which VIGILANT is a party or by which it is bound or to which any
of their respective properties or assets is subject, nor will it result in the creation or imposition of any lien, charge or encumbrance
of any kind whatsoever upon any of the properties or assets of VIGILANT, nor will it result in the cancellation, modification,
revocation or suspension of any of the licenses, franchises, permits to which VIGILANT is bound.

 

Section
2.5 Consents and Approvals. No consent, waiver, authorization or approval of any governmental or regulatory authority,
domestic or foreign, or of any other person, firm or corporation, is required in connection with the execution and delivery of
this Agreement by VIGILANT or the performance by VIGILANT of its obligations hereunder.

 

Section
2.6 Securities and Exchange Commission Reports. The Company has filed all forms, reports, statements and other documents
required to be filed with the Securities and Exchange Commission.

 

Section
2.7 Litigation. No action, suit, or proceeding will have been instituted or will have been threatened before any court
or other governmental body or by any public authority to restrain, enjoin, or prohibit the Share Exchange, or which would reasonably
be expected to restrict materially the operation of the business of VIGILANT or the exercise of any rights with respect thereto
or to subject either of the parties hereto or any of their directors, or officers to any liability, fine, forfeiture, divestiture,
or penalty on the ground that the transactions contemplated hereby, the parties hereto, or directors, or officers have breached
or will breach any applicable law or regulation or have otherwise acted improperly in connection with the transactions contemplated
hereby and with respect to which the parties hereto have been advised by counsel that, in the opinion of such counsel, such action,
suit, or proceeding raises substantial questions of law or fact which could reasonably be decided materially adversely to either
party hereto or its subsidiaries, directors, or officers. VIGILANT is not a party to any legal proceeding; however, as set forth
in its Form 10-K for the years ended December 31, 2017 and 2016, it may pursue binding mediation against a third party.

 

Section
2.8 Subsidiaries. VIGILANT does not have any direct or indirect subsidiaries and does not directly or indirectly own,
control, or hold, with the power to vote, any shares of the capital stock of any entity (including, without limitation, corporations,
partnerships, and joint ventures). There are no outstanding subscriptions, options, warrants, convertible securities, calls, commitments,
or agreements calling for or requiring the issuance, transfer, sale, or other disposition of any shares of the capital stock of
VIGILANT. There are no other direct or indirect subsidiaries of VIGILANT which would be or are required to be consolidated or
accounted for on the equity method in the consolidated financial statements of VIGILANT prepared in accordance with generally
accepted accounting principles.

 

Section
2.9 Piggyback Registration Rights; Equity Financings. VIGILANT grants to Keswick, LLC and L. Miller Investments, LLC,
two of FUGA’s three senior secured creditors, piggyback registration rights for the common stock issuable upon the conversion
of their Senior Secured Promissory Notes (the “Notes”), in the event they elect to convert the Notes in accordance
with their respective Amendment to Secured Promissory Note and Security Agreements dated October 17, 2018 (the “Secured
Agreements”).

 

Section
2.10 Equity Financings. Vigilant will apply the proceeds of any equity financing greater than $500,000 toward the repayment
of the Notes as set forth in Section 9.a. of the Secured Agreements. Vigilant will apply the proceeds of any equity financing
greater than $750,000 toward the repayment of the SalAero Note as set forth in Section 9.a. of the SalAero Amendment to Secured
Promissory Note and Security Agreement dated October 17, 2018 (the “SalAero Secured Agreement”).

 

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ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF FUGA 

 

FUGArepresents,
warrants and agrees as follows:

 

Section
3.1 Corporate Organization.

 

a.
FUGA is duly organized, validly existing and in good standing under the laws of the State of Wyoming and has all requisite corporate
power and authority to own their properties and assets and to conduct its business as now conducted and is duly qualified to do
business in good standing in each jurisdiction in where the nature of the business conducted by FUGA or the ownership or leasing
of their properties makes such qualification and being in good standing necessary, except where the failure to be so qualified
and in good standing will not have a material adverse effect on the business, operations, properties, assets, condition or results
of operation of FUGA (a “FUGA Material Adverse Effect”).

 

b.
Copies of the Articles of Incorporation of FUGA, with all amendments thereto to the date hereof, have been furnished to VIGILANT,
and such copies are accurate and complete as of the date hereof. The minute books of FUGA are current as required by law, contain
the minutes of all meetings of the Board of Directors and Stockholder of FUGA, respectively, and committees of the Board of Directors
of FUGA from the date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the
Board of Directors, shareholders and committees of the Board of Directors of FUGA.

 

Section
3.2 Capitalization of FUGA; Title to the FUGA Shares.

 

a.
On the Closing Date, immediately before the transactions to be consummated pursuant to this Agreement, FUGA shall have authorized:
(i) 1,000,000 shares of common shares, no par value per share, of which 500,000 shares are issued and outstanding. Except as set
forth in Schedule 3.2.a, there are outstanding options, warrants, agreements, commitments, conversion rights, preemptive
rights or other rights to subscribe for, purchase or otherwise acquire any shares of capital stock or any unissued or treasury
shares of capital stock of FUGA. As of the date of this Agreement, the FUGA Stockholders hold the FUGA Shares as set forth on
Exhibit A, free of any lien or encumbrance.

 

Section
3.3 Subsidiaries and Equity Investments; Assets. As of the date hereof and on the Closing Date, FUGA does not directly
or indirectly, own any shares of capital stock or any other equity interest in any entity nor any right to acquire any shares
or other equity interest in any entity.

 

Section
3.4 Authorization and Validity of Agreements. FUGA has all corporate power and authority to execute and deliver this
Agreement, to perform their obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery
of this Agreement by FUGA and the consummation of the transactions contemplated hereby have been duly authorized by all necessary
corporate action and no other corporate proceedings on the part of FUGA are necessary to authorize this Agreement or to consummate
the transactions contemplated hereby. FUGA Stockholder approvals are required to consummate the transactions contemplated hereby.
The execution and delivery of this Agreement by each FUGA Stockholder which is not a natural person (“Entity Shareholder”)
and the consummation of the transactions contemplated hereby by each Entity Shareholder have been duly authorized by all necessary
action by the Entity Shareholder and no other proceedings on the part of FUGA or any FUGA Stockholder are necessary to authorize
this Agreement or to consummate the transactions contemplated hereby.

 

Section
3.5 No Conflict or Violation. The execution, delivery and performance of this Agreement by FUGA or any FUGA Stockholder
does not and will not violate or conflict with any provision of the constituent documents of FUGA, and does not and will not violate
any provision of law, or any order, judgment or decree of any court or other governmental or regulatory authority, nor violate,
result in a breach of or constitute (with due notice or lapse of time or both) a default under or give to any other entity any
right of termination, amendment, acceleration or cancellation of any contract, lease, loan agreement, mortgage, security agreement,
trust indenture or other agreement or instrument to which FUGA or any FUGA Stockholder is a party or by which it is bound or to
which any of its respective properties or assets is subject, nor result in the creation or imposition of any lien, charge or encumbrance
of any kind whatsoever upon any of the properties or assets of FUGA or any FUGA Stockholder, nor result in the cancellation, modification,
revocation or suspension of any of the licenses, franchises, permits to which FUGA or any FUGA Stockholder is bound.

 

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Section
3.6 Financial Statements. The financial statements of FUGA for the years ended December 31, 2017 and 2016 and for the
nine months ended September 30, 2018 and 2017, consisting of the unaudited balance sheets, statements of operations, statements
of cash flows and statement of shareholders’ equity, including all related notes, fairly present in all material respects
the financial position of each company as at the respective dates thereof.

 

Section
3.7 Investment Representations.

 

a.
The VIGILANT Shares will be acquired hereunder by each FUGA Stockholder solely for the account of such FUGA Stockholder, for investment,
and not with a view to the resale or distribution thereof, without prejudice, however, to each FUGA Stockholders’ right
at all times to sell or otherwise dispose of all or any part of such shares under the Securities Act of 1933, as amended and other
applicable federal and state securities laws. Each FUGA Stockholder understands and is able to bear any economic risks associated
with such FUGA Stockholders’ investment in the VIGILANT Shares. Each FUGA Stockholder has had full access to all the information
it considers necessary or appropriate to make an informed investment decision with respect to the VIGILANT Shares to be acquired
under this Agreement. Each FUGA Stockholder further has had an opportunity to ask questions and receive answers from VIGILANT’s
management regarding VIGILANT and to obtain additional information (to the extent VIGILANT’s management possessed such information
or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to such FUGA Stockholder
or to which the FUGA Stockholder had access.

 

b.
FUGA Stockholder Status

 

(i)
Except for Jeanette Gandatresna, each FUGA Stockholder hereby agrees and acknowledges that it is “U.S. Person” (as
defined below) at the time the FUGA Stockholder was offered the VIGILANT Shares and as of the date hereof. For the purpose of
this Agreement, a “U.S. Person” means:

 

(A)
Any natural person resident in the United States;

 

(B)
Any partnership or corporation organized or incorporated under the laws of the United States;

 

(C)
Any estate of which any executor or administrator is a U.S. person;

 

(D)
Any trust of which any trustee is a U.S. person;

 

(E)
Any agency or branch of a foreign entity located in the United States;

 

(F)
Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit
or account of a U.S. person;

 

(G)
Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated,
or (if an individual) resident of the United States; or

 

(H)
Any partnership or corporation if (i) organized or incorporated under the laws of any foreign jurisdiction and (ii) formed by
a U.S. person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized
or incorporated, and owned, by accredited investor(s) (as defined in Rule 501(a) of Regulation D promulgated under the 1933 Act)
who are not natural persons, estates or trusts.

 

“United
States” or “U.S.” means the United States of America, its territories and possessions, any State of the United
States, and the District of Columbia.

 

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(ii)
Each FUGA Stockholder understands that no action has been or will be taken in any jurisdiction by VIGILANT that would permit a
public offering of the Shares in any country or jurisdiction where action for that purpose is required.

 

(iii)
Each FUGA Stockholder (i) except for Jeanette Gandatresna, as of the date of this Agreement is located within the United States,
and (ii) is not purchasing the VIGILANT Shares for the account or benefit of any non-U.S. Person, except in accordance with one
or more available exemptions from the registration requirements of the 1933 Act or in a transaction not subject thereto.

 

(iv)
Each FUGA Stockholder agrees not resell the VIGILANT Shares except in accordance with the provisions of Regulation D, pursuant
to a registration statement under the 1933 Act, or pursuant to an available exemption from registration; and agrees not to engage
in hedging transactions with regard to such securities unless in compliance with the 1933 Act.

 

(v)
Each FUGA Stockholder agrees: (i) to not engage in hedging transactions with regard to shares of VIGILANT unless in compliance
with the 1933 Act; and (ii) as applicable, to include statements in any documentation with regard to VIGILANT Shares to the effect
that the securities have not been registered under the 1933 Act and may not be offered or sold in the United States or to U.S.
persons unless the securities are registered under the 1933 Act, or an exemption from the registration requirements of the 1933
Act is available.

 

(vi)
No form of “directed selling efforts” (as defined under the 1933 Act), general solicitation or general advertising
in violation of the 1933 Act has been or will be used nor will any offers by means of any directed selling efforts in the United
States be made by any FUGA Stockholder nor any of their representatives in connection with the offer and sale of the VIGILANT
Shares.

 

c.
To the best knowledge of each FUGA Stockholder, this Agreement and the transactions contemplated herein are not part of a plan
or scheme to evade the registration provisions of the Securities Act, and the VIGILANT Shares are being acquired by each FUGA
Stockholder for investment purposes.

 

d.
The FUGA Stockholders hereby agree that the VIGILANT Shares, upon issuance, shall bear the following or similar legend:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN TRANSACTION TO A PERSON WHO IS A U.S. PERSON (AS DEFINED HEREIN) PURSUANT
TO REGULATION D UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR A NON-U.S. PERSON (AS
DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE 1933 ACT. NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER
THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY,
IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS OR A NON-U.S. PERSON EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION
D OR S, RESPECTIVELY, UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION
S UNDER THE 1933 ACT.”

 

Section
3.8 Brokers’ Fees. No FUGA Stockholder has any liability to pay any fees or commissions or other consideration
to any broker, finder, or agent with respect to the transactions contemplated by this Agreement.

 

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Section
3.9 Litigation. Except as set forth on Schedule 3.8, no action, suit, or proceeding will have been instituted
or will have been threatened before any court or other governmental body or by any public authority to restrain, enjoin, or prohibit
the Share Exchange, or which would reasonably be expected to restrict materially the operation of the business of FUGA or the
exercise of any rights with respect thereto or to subject either of the parties hereto or any of their subsidiaries, directors,
or officers to any liability, fine, forfeiture, divestiture, or penalty on the ground that the transactions contemplated hereby,
the parties hereto, or their subsidiaries, directors, or officers have breached or will breach any applicable law or regulation
or have otherwise acted improperly in connection with the transactions contemplated hereby and with respect to which the parties
hereto have been advised by counsel that, in the opinion of such counsel, such action, suit, or proceeding raises substantial
questions of law or fact which could reasonably be decided materially adversely to either party hereto or its subsidiaries, directors,
or officers.

 

ARTICLE
IV

COVENANTS

 

Section
4.1 Consents and Approvals. Without limitation of the foregoing, the parties shall:

 

a.
use their reasonable commercial efforts to obtain all necessary consents, waivers, authorizations and approvals of all governmental
and regulatory authorities, domestic and foreign, and of all other persons, firms or corporations required in connection with
the execution, delivery and performance by them of this Agreement; and

 

b.
diligently assist and cooperate with each party in preparing and filing all documents required to be submitted by a party to any
governmental or regulatory authority, domestic or foreign, in connection with such transactions and in obtaining any governmental
consents, waivers, authorizations or approvals which may be required to be obtained connection in with such transactions.

 

Section
4.2 Stock Issuance. From and after the date of this Agreement until the Closing Date, FUGA shall not issue any additional
shares of their capital stock. Vigilant will offer shares of its stock to investors to provide working capital to it. The number
of shares and share price will be determined by Vigilant’s board of directors.

 

Section
4.3 Post-closing Stock Issuance. After the Closing Date, VIGILANT shall issue the FUGA Shares as set forth in Exhibit
A.

 

Section
4.4 Registration of Shares. Promptly after the Closing Date, the Shareholders and management of VIGILANT shall cause
VIGILANT to file with the Securities and Exchange Commission a registration statement under the Securities Act to register for
sale to the public such number of authorized but unissued shares of VIGILANT common stock as the board determines to be required
to meet its working capital requirements for the next twelve months as well as any shares that may be required to be registered
under any FUGA or VIGILANT agreements. To the extent permitted by law, such registration statement shall also include all previously
issued VIGILANT shares and may include such other shares as VIGILANT determines. VIGILANT shall use their best efforts to cause
such registration statement to be declared effective by the Securities and Exchange Commission as soon as practicable after the
of Closing Date.

 

Section
4.5 Subsequent Events. Five (5) days prior to the Closing Date, each party will advise the other party in a detailed
written notice of any fact or occurrence or any pending or threatened occurrence of which it obtains knowledge and which (if existing
and known at the date of the execution of this Agreement) would have been required to be set forth or disclosed in or pursuant
to this Agreement or which (if existing and known at any time prior to or at the Effective Date) would cause a condition either
party’s obligations under this Agreement not to be fully satisfied.

 

Section
4.6 Updated Schedules. Not less than five business days prior to the Closing Date, both parties will deliver to the
other party any updates to the schedules to its representations which may be required to disclose events or circumstances arising
after this date. Such schedules will be updated only for the purpose of making the representations and warranties contained in
this Agreement to which such part of such schedules relate true and correct in all material respects as of the date such schedule
is updated, and the updated schedule will not have the effect of making any representation or warranty contained in this Agreement
true and correct in all material respects as of a date prior to the date of such updated schedule. For purposes of determining
whether the conditions set forth in Article II for VIGILANT’s and Article III for FUGA’s obligations have been met,
any such updated schedules delivered to the other party will be disregarded unless VIGILANT OR FUGA will have agreed to accept
any changes reflected in such updated schedules.

 

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Section
4.7 Rights of Access. From this date this Agreement FUGA will give to VIGILANT and to its representatives, including
its certified public accountants full access during normal business hours to all of the property, documents, contracts, books,
and records of FUGA, and such information with respect to its business affairs and properties as VIGILANT from time to time may
reasonably request.

 

Section
4.8 Extraordinary Transactions. Without the prior written consent of VIGILANT, FUGA will not, on or after the date of
this Agreement: (a) declare or pay any cash dividends or property dividends with respect to any class of its capital stock; (b)
declare or distribute any stock dividend, authorize a stock split, or authorize, issue or make any distribution of its capital
stock or any other securities or grant any options to acquire such additional securities; (c) either (i) merge into, consolidate
with, or sell or otherwise dispose of its assets to any other corporation or person, or enter into any other transaction or agree
to effect any other transaction not in the ordinary course of its business except as explicitly contemplated herein, or (ii) engage
in any discussions concerning such a possible transaction except as explicitly contemplated herein unless the board of directors
of FUGA, based upon the advice of legal counsel, determines in good faith that such action is required for the board of directors
to comply with its fiduciary duties to stockholders imposed by law; (d) convert the form of entity of FUGA from that in existence
on the date of this Agreement to any other form of entity; (e) make any direct or indirect redemption, purchase, or other acquisition
of any of its capital stock; (f) except in the ordinary course of its business or to accomplish the transactions contemplated
by this Agreement, incur any liability or obligation, make any commitment or disbursement, acquire or dispose of any property
or asset, make any contract or agreement, pay or become obligated to pay any legal, accounting, or miscellaneous other expense,
or engage in any transaction; (g) other than in the ordinary course of business, subject any of its properties or assets to any
lien, claim, charge, option, or encumbrance; (h) enter into or assume any one or more commitments to make capital expenditures,
any of which individually exceeds $5,000 or which in the aggregate exceed $10,000; (i) except for increases in the ordinary course
of business in accordance with past practices, and except as explicitly contemplated by this Agreement, increase the rate of compensation
of any employee or enter into any agreement to increase the rate of compensation of any employee; (j) except as otherwise required
by law, create or modify any profit sharing plan, bonus, deferred compensation, death benefit, or retirement plan, or the level
of benefits under any such plan, nor increase or decrease any severance or termination pay benefit or any other fringe benefit;
(k) enter into any employment or personal services contract with any person or firm, except directly to facilitate the transactions
contemplated by this Agreement; nor (l) change the nature or increase the concentration of risk of investments and of cash and
cash equivalents.

 

Section
4.9 Preservation of Business. FUGA will (a) carry on its business and manage its assets and properties diligently and
substantially in the same manner as heretofore; (b) use commercially reasonable efforts to continue in effect its present insurance
coverage on all properties, assets, business, and personnel; (c) use commercially reasonable efforts to preserve its business
organization intact, to keep available its present employees, and to preserve its present relationships with all those entities
having business dealings with it; (d) not do anything and not fail to do anything which will cause a breach of or default in any
contract, agreement, commitment, or obligation to which it is a party or by which it may be bound; and (e) conduct its affairs
so that at the Effective Date none of its representations and warranties will be inaccurate, none of its covenants and agreements
will be breached, and no condition in this Agreement will remain unfulfilled by reason of its actions or omissions.

 

ARTICLE
V

CONDITIONS
TO OBLIGATIONS OF FUGA AND THE FUGA STOCKHOLDERS 

 

The
obligations of FUGA and each FUGA Stockholder to consummate the transactions contemplated by this Agreement are subject to the
fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by both FUGA and
each FUGA Stockholder in their sole discretion:

 

Section
5.1 Representations and Warranties of VIGILANT. All representations and warranties made by VIGILANT in this Agreement
shall be true and correct on and as of the Closing Date as if again made by VIGILANT as of such date.

 

Section
5.2 Agreements and Covenants. VIGILANT shall have performed and complied in all material respects to all agreements
and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date.

 

    	 	8	 

    	 

    

 

Section
5.3 Consents and Approvals. Consents, waivers, authorizations and approvals of any governmental or regulatory authority,
domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance
of this Agreement shall be in full force and effect on the Closing Date.

 

Section
5.4 No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or governmental
or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted
by any government or governmental or regulatory authority, which declares this Agreement invalid in any respect or prevents the
consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations,
prospects, net income or financial condition of VIGILANT shall be in effect; and no action or proceeding before any court or governmental
or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory
authority, domestic or foreign, or by any other person, or entity which seeks to prevent or delay the consummation of the transactions
contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

 

Section
5.5 Other Closing Documents. FUGA shall have received such other certificates, instruments and documents in confirmation
of the representations and warranties of VIGILANT or in furtherance of the transactions contemplated by this Agreement as FUGA
or their counsel may reasonably request.

 

ARTICLE
VI

CONDITIONS
TO OBLIGATIONS OF VIGILANT

 

The
obligations of VIGILANT to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before
the Closing Date, of the following conditions, any one or more of which may be waived by VIGILANT in its sole discretion:

 

Section
6.1 Representations and Warranties of FUGA. All representations and warranties made by FUGA in this Agreement shall
be true and correct on and as of the Closing Date as if again made by FUGA on and as of such date.

 

Section
6.2 Agreements and Covenants. FUGA shall have performed and complied in all material respects to all agreements and
covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date.

 

Section
6.3 Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority,
domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance
of this Agreement, shall have been duly obtained and shall be in full force and effect on the Closing Date.

 

Section
6.4 No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or other governmental
or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted
by any government or governmental or regulatory authority, domestic or foreign, that declares this Agreement invalid or unenforceable
in any respect or which prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects
the assets, properties, operations, prospects, net income or financial condition of FUGA, taken as a whole, shall be in effect;
and no action or proceeding before any court or government or regulatory authority, domestic or foreign, shall have been instituted
or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person, or entity
which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity
or enforceability of this Agreement.

 

Section
6.5 Other Closing Documents. VIGILANT shall have received such other certificates, instruments and documents in confirmation
of the representations and warranties of FUGA or in furtherance of the transactions contemplated by this Agreement as VIGILANT
or its counsel may reasonably request including, but not limited to, the Audit Report of its independent third party auditor.

 

    	 	9	 

    	 

    

 

ARTICLE
VII

TERMINATION
AND ABANDONMENT

 

Section
7.1 Methods of Termination. This Agreement may be terminated, and the transactions contemplated hereby may be abandoned,
at any time before October 31, 2018, by notice of either VIGILANT or FUGA to the other party.

 

ARTICLE
VIII

MISCELLANEOUS
PROVISIONS

 

Section
8.1 Survival of Provisions. The respective representations, warranties, covenants and agreements of each of the parties
to this Agreement (except covenants and agreements which are expressly required to be performed and are performed in full on or
before the Closing Date) shall survive the Closing Date and the consummation of the transactions contemplated by this Agreement.
In the event of a breach of any of such representations, warranties or covenants, the party to whom such representations, warranties
or covenants have been made shall have all rights and remedies for such breach available to it under the provisions of this Agreement
or otherwise, whether at law or in equity, regardless of any disclosure to, or investigation made by or on behalf of such party
on or before the Closing Date.

 

Section
8.2 Publicity. No party shall cause the publication of any press release or other announcement with respect to this
Agreement or the transactions contemplated hereby without the consent of the other parties, unless a press release or announcement
is required by law. If any such announcement or other disclosure is required by law, the disclosing party agrees to give the non-disclosing
parties prior notice and an opportunity to comment on the proposed disclosure.

 

Section
8.3 Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and
their respective successors and assigns; provided, however, that no party shall assign or delegate any of the obligations created
under this Agreement without the prior written consent of the other parties.

 

Section
8.4 Fees and Expenses. Except as otherwise expressly provided in this Agreement, all legal and other fees, costs and
expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring
such fees, costs or expenses.

 

Section
8.5 Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed
to have been given or made if in writing and delivered personally or sent by registered or certified mail (postage prepaid, return
receipt requested) to the parties at the following addresses:

 

If
to FUGA or the FUGA Stockholders, to:

 

FUGA,
Inc.

2754
NW Crossing Drive, Suite 201

Bend,
OR 97703

Attention:
Robert Salvo

E-mail:
rbs@airfuga.com

 

If
to VIGILANT, to:

 

Vigilant
Diversified Holdings, Inc.

620
Newport Center Drive, Suite 1100

Newport
Beach, CA 92660-8011

Attention:
Donald P. Hateley, CEO

Fax:
(310) 388-5899

E-mail:
dhateley@intercappartners.com

 

With
a copy to:

 

Hateley
& Hampton

620
Newport Center Drive, Suite 1100

Newport
Beach, CA 92660

Attention:
Donald P. Hateley, Esq., CPA

Fax:
(310) 388-5899

E-mail:
dhateley@hateleyhampton.com

 

or
to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice
or communication shall be deemed to have been given or made as of the date so delivered or mailed.

 

    	 	10	 

    	 

    

 

Section
8.6 Entire Agreement. This Agreement, together with the exhibits and schedules hereto, represents the entire agreement
and understanding of the parties with reference to the transactions set forth herein and no representations or warranties have
been made in connection with this Agreement other than those expressly set forth herein or in the exhibits, schedules, certificates
and other documents delivered in accordance herewith. This Agreement supersedes all prior negotiations, discussions, correspondence,
communications, understandings and agreements between the parties relating to the subject matter of this Agreement and all prior
drafts of this Agreement, all of which are merged into this Agreement. No prior drafts of this Agreement and no words or phrases
from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement.

 

Section
8.7 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore,
in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid
and enforceable.

 

Section
8.8 Titles and Headings. The Article and Section headings contained in this Agreement are solely for convenience of
reference and shall not affect the meaning or interpretation of this Agreement or of any term or provision hereof.

 

Section
8.9 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
and all of which together shall be considered one and the same agreement.

 

Section
8.10 Governing Law; Jurisdiction; Venue. This Agreement shall be governed by and interpreted and enforced in accordance
with the laws of the State of Nevada without giving effect to the choice of law provisions thereof. The parties to this Agreement,
acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby
expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection
with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the State of California, County
of Orange, and/or the United States District Court for the Central District of California, in respect of any matter arising under
this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal
service at any place where it may be found or giving notice to such party as provided in Section 8.5.

 

Section
8.11 Enforcement of the Agreement. The parties hereto agree that irreparable damage would occur if any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions hereto, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section
8.12 Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be
in writing and signed by all of the parties hereto. No waiver by any party of any default, misrepresentation, or breach of warranty
or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation,
or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

 

[Signatures’
Pages Follow]

 

    	 	11	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	VIGILANT
    DIVERSIFIED HOLDINGS, INC.	 
	 	 	 
	By:	/s/
    Donald P. Hateley	 
	 	Donald
    P. Hateley	 
	Its:	Chief
    Executive Officer	 

 

	FUGA,
    Inc.	 
	 	 	 
	By:
    	/s/
    Robert Salvo	 
	 	Robert
    Salvo	 
	Its:	Chief
    Executive Officer	 

 

[FUGA
Stockholder signatures on next page]

 

    	 	12	 

    	 

    

 

FUGA,
INC. STOCKHOLDERS

 

	SALAERO,
    INC.	 
	 	 	 
	By:	/s/
    Robert Salvo	 
	 	Robert
    Salvo	 
	Its:	CEO	 

 

	BONITA
    C. PHILLIPS	 
	 	 	 
	By:
    	 	 
	 	Bonita
    C. Phillips	 

 

	MARK
    EATON	 
	 	 	 
	By:
    	/s/
    Mark Eaton	 
	 	Mark
    Eaton	 

 

	JEANETTE
    GANDATRESNA	 
	 	 	 
	By:
    	 	 
	 	Jeanette
    Gandatresna	 

 

	CAROLINA
                                         MARIN

	 
	 	 	 
	By:
    	/s/
    Carolina Marin	 
	 	Carolina
    Marin	 

 

    	 	13Exhibit

EXHIBIT 10.1
IPASS INC.
2003 EQUITY INCENTIVE PLAN
ADOPTED: JANUARY 15, 2003
APPROVED BY STOCKHOLDERS: MARCH 17, 2003 
AMENDED: JUNE 24, 2009 
AMENDMENT APPROVED BY STOCKHOLDERS: AUGUST 18, 2009
AMENDED BY THE BOARD OF DIRECTORS:  JULY 6, 2016
 TERMINATION DATE: JANUARY 14, 2023
1.    PURPOSES.
(a)    Eligible Stock Award Recipients.  The persons eligible to receive Stock Awards are Employees, Directors and Consultants.
(b)    Available Stock Awards.  The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Options, (ii) Restricted Stock Awards, (iii) Stock Appreciation Rights, (iv) Phantom Stock and (v) Other Stock Awards.
(c)    General Purpose.  The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates.
2.    DEFINITIONS.
(a)    “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.
(b)    “Board” means the Board of Directors of the Company.
(c)    “Capitalization Adjustment” has the meaning ascribed to that term in Section 11(a).
(d)    “Change In Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i)    any Exchange Act Person becomes the Owner, directly, or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar 

1.
187969015 v1 

transaction.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an institutional investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions that are primarily a private financing transaction for the Company or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;
(ii)    there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction;
(iii)    the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur;
(iv)    there is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportion as their Ownership of the Company immediately prior to such sale, lease, license or other disposition; or
(v)    individuals who, on the date this Plan is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; (provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board).
The term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.
Notwithstanding the foregoing or any other provision of this Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any 

2.
187969015 v1 

Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement (it being understood, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply).
(e)    “Code” means the Internal Revenue Code of 1986, as amended.
(f)    “Committee” means a committee of one or more members of the Board appointed by the Board in accordance with Section 3(c).
(g)    “Common Stock” means the common stock of the Company.
(h)    “Company” means iPass Inc., a Delaware corporation.
(i)    “Consultant” means any person, including an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or (ii) serving as a member of the Board of Directors of an Affiliate and who is compensated for such services.  However, the term “Consultant” shall not include Directors who are not compensated by the Company for their services as Directors, and the payment of a director’s fee by the Company for services as a Director shall not cause a Director to be considered a “Consultant” for purposes of the Plan.
(j)    “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated.  A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service.  For example, a change in status from an employee of the Company to a consultant to an Affiliate or to a Director shall not constitute an interruption of Continuous Service.  The Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave.  Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave of absence policy or in the written terms of the Participant’s leave of absence.
(k)    “Corporate Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:
(i)    a sale or other disposition of all or substantially all, as determined by the Board in its discretion, of the consolidated assets of the Company and its Subsidiaries;
(ii)    a sale or other disposition of at least ninety percent (90%) of the outstanding securities of the Company;
(iii)    a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

3.
187969015 v1 

(iv)    a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.
(l)    “Covered Employee” means the chief executive officer and the four (4) other highest compensated officers of the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.
(m)    “Director” means a member of the Board.
(n)    “Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code.
(o)    “Employee” means any person employed by the Company or an Affiliate.  Service as a Director or payment of a director’s fee by the Company for such service or for service as a member of the Board of Directors of an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.
(p)    “Entity” means a corporation, partnership or other entity.
(q)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(r)    “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (A) the Company or any Subsidiary of the Company, (B) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company.
(s)    “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:
(i)    If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable.
(ii)    In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

4.
187969015 v1 

(t)    “Non-Employee Director” means a Director who either (i) is not currently an employee or officer of the Company or its parent or a subsidiary, does not receive compensation, either directly or indirectly, from the Company or its parent or a subsidiary, for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.
(u)    “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.
(v)    “Option” means a nonstatutory stock option granted pursuant to the Plan that is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.
(w)    “Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an individual Option grant.  Each Option Agreement shall be subject to the terms and conditions of the Plan.
(x)    “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.
(y)    “Other Stock Award” means an award based in whole or in part by reference to the Common Stock granted pursuant to the terms and conditions of Section 7(d).
(z)    “Outside Director” means a Director who either (i) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” who receives compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated corporation”, and does not receive remuneration from the Company or an “affiliated corporation,” either directly or indirectly, in any capacity other than as a Director or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code.
(aa)    “Own,” “Owned,” “Owner,” “Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities.
(bb)    “Participant” means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award.
(cc)    “Plan” means this iPass Inc.  2003 Equity Incentive Plan.

5.
187969015 v1 

(dd)    “Phantom Stock” means the right to receive shares of Common Stock granted pursuant to the terms and conditions of Section 7(b).
(ee)    “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(a).
(ff)    “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.
(gg)    “Securities Act” means the Securities Act of 1933, as amended.
(hh)    “Stock Appreciation Right” means a right to receive the appreciation of Common Stock that may be granted pursuant to the terms and conditions of Section 7(c).
(ii)    “Stock Award” means any right granted under the Plan, including an Option, a Restricted Stock Award, Phantom Stock, a Stock Appreciation Right and an Other Award.
(jj)    “Stock Award Agreement” means a written agreement between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant.  Each Stock Award Agreement shall be subject to the terms and conditions of the Plan.
(kk)    “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership in which the Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital contribution) of more than fifty percent (50%).
3.    ADMINISTRATION.
(a)    Administration by Board.  The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as provided in Section 3(c).
(b)    Powers of Board.  The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:
(i)    To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person.
(ii)    To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award 

6.
187969015 v1 

Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.
(iii)    To effect, at any time and from time to time, with the consent of any adversely affected Optionholder, (1) the reduction of the exercise price of any outstanding Option under the Plan, (2) the cancellation of any outstanding Option under the Plan and the grant in substitution therefor of (A) a new Option under the Plan or another equity plan of the Company covering the same or a different number of shares of Common Stock, (B) a Restricted Stock Award (including a stock bonus), (C) a Stock Appreciation Right, (D) Phantom Stock, (E) Other Stock Awards, (F) cash and/or (G) other valuable consideration (as determined by the Board, in its sole discretion), or (3) any other action that is treated as a repricing under generally accepted accounting principles.
(iv)    To amend the Plan or a Stock Award as provided in Section 12.
(v)    To terminate or suspend the Plan as provided in Section 13.
(vi)    Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan.
(c)    Delegation to Committee.
(i)    General.  The Board may delegate administration of the Plan to a Committee or Committees of one (1) or more members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated.  If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board.  The Board may abolish the Committee at any time and revest in the Board the administration of the Plan.
(ii)    Section 162(m) and Rule 16b-3 Compliance.  In the discretion of the Board, the Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3.  In addition, the Board or the Committee may delegate to a committee of one or more members of the Board the authority to grant Stock Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award, (b) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code, or (c) not then subject to Section 16 of the Exchange Act.
(d)    Effect of Board’s Decision.  All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

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(e)    Arbitration.  Any dispute or claim concerning any Stock Awards granted (or not granted) pursuant to the Plan or any disputes or claims relating to or arising out of the Plan shall be fully, finally and exclusively resolved by binding and confidential arbitration conducted pursuant to the rules of Judicial Arbitration and Mediation Services, Inc.  (“JAMS”) in San Francisco.  The Company shall pay all arbitration fees.  In addition to any other relief, the arbitrator may award to the prevailing party recovery of its attorneys’ fees and costs.  By accepting a Stock Award, Participants and the Company waive their respective rights to have any such disputes or claims tried by a judge or jury.
4.    SHARES SUBJECT TO THE PLAN.
(a)    Share Reserve.  Subject to the provisions of Section 11(a) relating to Capitalization Adjustments, the shares of Common Stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate (i) the number of shares issued pursuant to the Plan prior to June 29, 2016, and no longer subject to Stock Awards, plus (ii) 2,532,378 shares.
(b)    Reversion of Shares to the Share Reserve.  If any Stock Award shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full, or if any shares of Common Stock issued to a Participant pursuant to a Stock Award are forfeited back to or repurchased by the Company, including, but not limited to, any repurchase or forfeiture caused by the failure to meet a contingency or condition required for the vesting of such shares, then the shares of Common Stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan.  If any shares from a Stock Award are not delivered to a Participant (because such shares are withheld for taxes, the Stock Award is net exercised or otherwise) the shares that are not delivered shall revert to and again become available for issuance under the Plan.  If the exercise price of any Stock Award is satisfied by tendering shares of Common Stock held by the Participant (either by actual delivery or attestation), then the number of shares equal to such payment of Common Stock shall revert to and again become available for issuance under the Plan.
(c)    Source of Shares.  The shares of Common Stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise.
5.    ELIGIBILITY.
(a)    Eligibility for Specific Stock Awards.  Stock Awards may be granted to Employees, Directors and Consultants.
(b)    Consultants.  A Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8”) is not available to register either the offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the Consultant is providing to the Company, because the Consultant is not a natural person, or because of any other rule governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be registered in another manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or (B) does not require registration under the Securities Act in order to comply with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities laws of all other relevant jurisdictions.

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6.    OPTION PROVISIONS.
Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  All Options shall be designated nonstatutory stock options at the time of grant.  The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions:
(a)    Exercise Price of An Option.  The exercise price of each Option shall be determined by the Board, in its discretion.  Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.
(b)    Consideration.  The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the discretion of the Board (1) by delivery to the Company of other Common Stock, (2) according to a deferred payment or other similar arrangement with the Optionholder (3) upon the “net exercise” of the Option or (4) in any other form of legal consideration that may be acceptable to the Board.  Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes).  At any time that the Company is incorporated in Delaware, payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment.
In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the minimum rate of interest necessary to avoid (1) the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement and (2) the treatment of the Option as a variable award for financial accounting purposes.
In the case of a “net exercise” of an Option, the Company will not require a payment from the Participant but will withhold from the shares exercised by the Participant whole shares with a Fair Market Value approximately equal to the aggregate exercise price.  With respect to any fractional share required to be withheld for the net exercise, the Company may accept a cash payment for the value of the fractional share.
(c)    Transferability of an Option.  An Option shall be transferable to the extent provided in the Option Agreement.  If the Option does not provide for transferability, then the Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.  Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, 

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designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.
(d)    Vesting Generally.  The total number of shares of Common Stock subject to an Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal.  The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate.  The vesting provisions of individual Options may vary.  The provisions of this Section 6(d) are subject to any Option provisions governing the minimum number of shares of Common Stock as to which an Option may be exercised.
(e)    Termination of Continuous Service.  In the event that an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement or (ii) the expiration of the term of the Option as set forth in the Option Agreement.  If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate.
(f)    Extension of Termination Date.  An Optionholder’s Option Agreement may also provide that if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in the Option Agreement or (ii) the expiration of a period of three (3) months after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements.
(g)    Disability of Optionholder.  In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option Agreement or (ii) the expiration of the term of the Option as set forth in the Option Agreement.  If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate.
(h)    Death of Optionholder.  In the event that (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death pursuant to Section 6(c), but only within the period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter 

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period specified in the Option Agreement or (2) the expiration of the term of such Option as set forth in the Option Agreement.  If, after death, the Option is not exercised within the time specified herein, the Option shall terminate.
(i)    Early Exercise.  The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option.  Any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate.  The Company will not exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option.
7.    PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.
(a)    Restricted Stock Awards.  Each Restricted Stock Award agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  The terms and conditions of the Restricted Stock Award agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award agreements need not be identical, but each Restricted Stock Award agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:
(i)    Purchase Price.  At the time of the grant of a Restricted Stock Award, the Board will determine the price to be paid by the Participant for each share subject to the Restricted Stock Award.  To the extent required by law, the price to be paid by the Participant for each share of the Restricted Stock Award will not be less than the par value of a share of Company Stock.  A Restricted Stock Award may be awarded as a stock bonus to the extent permissible under applicable law.
(ii)    Consideration.  The purchase price of Common Stock acquired pursuant to the Restricted Stock Award agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; (iii) by services rendered or to be rendered to the Company; or (iv) in any other form of legal consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment and must be made in a form of consideration legal under Delaware Corporation Law.
(iii)    Vesting.  Shares of Common Stock acquired under the Restricted Stock Award agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board.
(iv)    Termination of Participant’s Continuous Service.  In the event that a Participant’s Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination under the terms of the Restricted Stock Award agreement.  The Company will not exercise 

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its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes) have elapsed following the purchase of the restricted stock unless otherwise provided in the Restricted Stock Award agreement.
(v)    Transferability.  Rights to acquire shares of Common Stock granted under the Restricted Stock Award agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award agreement, as the Board shall determine in its discretion, and so long as Common Stock awarded under the Restricted Stock Award agreement remains subject to the terms of the Restricted Stock Award agreement.
(b)    Phantom Stock.  Each Phantom Stock agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  The terms and conditions of the Phantom Stock may change from time to time, and the terms and conditions of separate Phantom Stock agreements need not be identical, but each Phantom Stock agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:
(i)    Consideration.  At the time of grant of a Phantom Stock award, the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Phantom Stock.  To the extent required by law, the consideration to be paid by the Participant for each share of the Phantom Stock will not be less than the par value of a share of Company Stock.  The consideration may be paid in any form permitted under applicable laws.
(ii)    Vesting.  At the time of the grant of Phantom Stock, the Board may impose such restrictions or conditions to the vesting of the shares equivalents as it, in its absolute discretion, deems appropriate, to be contained in the Phantom Stock agreement.
(iii)    Additional Restrictions.  At the time of the grant of Phantom Stock, the Board may impose such restrictions or conditions that delay the delivery of the consideration after its vesting as it, in its absolute discretion, deems appropriate to be contained in the Phantom Stock agreement.
(iv)    Payment.  Phantom Stock may be paid in Common Stock or in cash or any combination of the two, as determined by the Board and contained in the Phantom Stock agreement.
(v)    Dividend Equivalents.  Dividend equivalents may be credited in respect of shares of Phantom Stock.  Such dividend equivalents will be converted into additional shares of Phantom Stock by dividing (1) the aggregate amount or value of the dividends paid with respect to that number of shares of Common Stock equal to the number of shares of Phantom Stock then credited by (2) the Fair Market Value per share of Common Stock on the payment date for such dividend.  The additional shares of Phantom Stock credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Phantom Stock award to which they relate.
(vi)    Termination of Participant’s Continuous Service.  Except as otherwise provided in the applicable Stock Award Agreement, shares of Phantom Stock that have not vested will be forfeited upon the Participant’s termination of service for any reason.

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(c)    Stock Appreciation Rights.  Each Stock Appreciation Rights Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.  The terms and conditions of the Stock Appreciation Rights Agreements may change from time to time, and the terms and conditions of separate Stock Appreciation Rights Agreements need not be identical, but each Stock Appreciation Rights agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:
(i)    Strike Price and Calculation of Appreciation.  Each Stock Appreciation Right will be denominated in share equivalents.  The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to the number of share equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) an amount that will be determined by the committee at the time of grant of the Stock Appreciation Right.
(ii)    Vesting.  At the time of the grant of a Stock Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such shares as it, in its absolute discretion, deems appropriate, to be contained in the Stock Appreciation Rights agreement.
(iii)    Exercise.  To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Rights Agreement evidencing such right.
(iv)    Payment.  A Stock Appreciation Right may be paid in Common Stock or in cash or any combination of the two, as determined by the Board and contained in the Stock Appreciation Rights agreement evidencing such right.
(v)    Termination of Continuous Service.  In the event that a Participant’s Continuous Service terminates, the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock Appreciation Rights agreement) or (ii) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Rights Agreement.  If, after termination, the Participant does not exercise his or her Stock Appreciation Right within the time specified in the Stock Appreciation Rights Agreement, the Stock Appreciation Right shall terminate.
(d)    Other Stock Award.  Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Company Stock may be granted either alone or in addition to other Awards under the Plan.  Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other conditions of such Other Stock Awards.
8.    COVENANTS OF THE COMPANY.

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(a)    Availability of Shares.  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Stock Awards.
(b)    Securities Law Compliance.  The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award.  If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained.
9.    USE OF PROCEEDS FROM STOCK.
Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds of the Company.
10.    MISCELLANEOUS.
(a)    Acceleration of Exercisability and Vesting.  The Board shall have the power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest.
(b)    Stockholder Rights.  No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms.
(c)    No Employment or Other Service Rights.  Nothing in the Plan or any instrument executed or Stock Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.
(d)    Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of 

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evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock.  The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act or (2) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws.  The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock.
(e)    Withholding Obligations.  To the extent provided by the terms of a Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lesser amount as may be necessary to avoid variable award accounting); or (iii) delivering to the Company owned and unencumbered shares of Common Stock.
11.    ADJUSTMENTS UPON CHANGES IN STOCK.
(a)    Capitalization Adjustments.  If any change is made in, or other event occurs with respect to, the Common Stock subject to the Plan or subject to any Stock Award without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, non-stock dividend other than an ordinary cash dividend, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company (each a “Capitalization Adjustment”), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to Sections 4(a) and 4(b), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of securities and price per share of Common Stock subject to such outstanding Stock Awards.  The Board shall make such adjustments, and its determination shall be final, binding and conclusive.  (The conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company.)
(b)    Dissolution or Liquidation.  In the event of a dissolution or liquidation of the Company, then all outstanding Options shall terminate immediately prior to the completion of such dissolution or liquidation, and shares of Common Stock subject to the Company’s repurchase option may be 

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repurchased by the Company notwithstanding the fact that the holder of such stock is still in Continuous Service.
(c)    Corporate Transaction.  In the event of a Corporate Transaction, any surviving corporation or acquiring corporation may assume or continue any or all Stock Awards outstanding under the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (it being understood that similar stock awards include, but are not limited to, awards to acquire the same consideration paid to the stockholders or the Company, as the case may be, pursuant to the Corporate Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company), if any, in connection with such Corporate Transaction.  In the event that any surviving corporation or acquiring corporation does not assume or continue any or all such outstanding Stock Awards or substitute similar stock awards for such outstanding Stock Awards, then with respect to Stock Awards that have been not assumed, continued or substituted and that are held by Participants whose Continuous Service has not terminated prior to the effective time of the Corporate Transaction, the vesting of such Stock Awards (and, if applicable, the time at which such Stock Awards may be exercised) shall (contingent upon the effectiveness of the Corporate Transaction) be accelerated in full to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days prior to the effective time of the Corporate Transaction), the Stock Awards shall terminate if not exercised (if applicable) at or prior to such effective time, and any reacquisition or repurchase rights held by the Company with respect to such Stock Awards held by Participants whose Continuous Service has not terminated shall (contingent upon the effectiveness of the Corporate Transaction) lapse.  With respect to any other Stock Awards outstanding under the Plan that have not been assumed, continued or substituted, the vesting of such Stock Awards (and, if applicable, the time at which such Stock Award may be exercised) shall not be accelerated, unless otherwise provided in a written agreement between the Company or any Affiliate and the holder of such Stock Award, and such Stock Awards shall terminate if not exercised (if applicable) prior to the effective time of the Corporate Transaction.
(d)    Change In Control.  A Stock Award held by any Participant whose Continuous Service has not terminated prior to the effective time of a Change in Control may be subject to additional acceleration of vesting and exercisability upon or after such event as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall occur.
12.    AMENDMENT OF THE PLAN AND STOCK AWARDS.
(a)    Amendment of Plan.  The Board at any time, and from time to time, may amend the Plan.  However, except as provided in Section 11(a) relating to Capitalization Adjustments, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy applicable law or the rules of any stock exchange on which the Common Stock is listed.

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(b)    Stockholder Approval.  The Board, in its sole discretion, may submit any other amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to Covered Employees.
(c)    No Impairment of Rights.  Rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing.
(d)    Amendment of Stock Awards.  The Board at any time, and from time to time, may amend the terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing.
13.    TERMINATION OR SUSPENSION OF THE PLAN.
(a)    Plan Term.  The Board may suspend or terminate the Plan at any time.  Unless sooner terminated, the Plan shall terminate on the day before the twentieth (20th) anniversary of the last date the Plan is approved by the stockholders of the Company.  No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated.
(b)    No Impairment of Rights.  Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the Participant.
14.    EFFECTIVE DATE OF PLAN.
The Plan shall become effective as determined by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be granted) unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board.
15.    CHOICE OF LAW.
The law of the State of California shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s conflict of laws rules.

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IPASS INC.
2003 EQUITY INCENTIVE PLAN
STOCK OPTION AGREEMENT  
(NONSTATUTORY STOCK OPTION)
Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Stock Option Agreement, iPass Inc.  (the “Company”) has granted you an option under its 2003 Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice.  Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan.
The details of your option are as follows:
1.    VESTING.  Subject to the limitations contained herein, your option will vest as provided in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service.
2.    NUMBER OF SHARES AND EXERCISE PRICE.  The number of shares of Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments.
3.    EXERCISE PRIOR TO VESTING (“Early Exercise”).  If permitted in your Grant Notice (i.e., the “Exercise Schedule” indicates that “Early Exercise” of your option is permitted) and subject to the provisions of your option, you may elect at any time that is both (i) during the period of your Continuous Service and (ii) during the term of your option, to exercise all or part of your option, including the nonvested portion of your option; provided, however, that:
(a)    a partial exercise of your option shall be deemed to cover first vested shares of Common Stock and then the earliest vesting installment of unvested shares of Common Stock;
(b)    any shares of Common Stock so purchased from installments that have not vested as of the date of exercise shall be subject to the purchase option in favor of the Company as described in the Company’s form of Early Exercise Stock Purchase Agreement; and
(c)    you shall enter into the Company’s form of Early Exercise Stock Purchase Agreement with a vesting schedule that will result in the same vesting as if no early exercise had occurred.
that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options.
4.    METHOD OF PAYMENT.  Payment of the exercise price is due in full upon exercise of all or any part of your option.  You may elect to make payment of the exercise price in cash or by 

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check or in any other manner permitted by your Grant Notice, which may include one or more of the following:
(a)    In the Company’s sole discretion at the time your option is exercised and provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds.
(b)    Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the Company’s reported earnings (generally six (6) months) or that you did not acquire, directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise.  “Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the Company.  Notwithstanding the foregoing, you may not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock.
5.    WHOLE SHARES.  You may exercise your option only for whole shares of Common Stock.
6.    SECURITIES LAW COMPLIANCE.  Notwithstanding anything to the contrary contained herein, you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act.  The exercise of your option also must comply with other applicable laws and regulations governing your option, and you may not exercise your option if the Company determines that such exercise would not be in material compliance with such laws and regulations.
7.    TERM.  You may not exercise your option before the commencement or after the expiration of its term.  The term of your option commences on the Date of Grant and expires upon the earliest of the following:
(a)    three (3) months after the termination of your Continuous Service for any reason other than your Disability or death, provided that if during any part of such three (3) month period your option is not exercisable solely because of the condition set forth in Section 6, your option shall not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service;
(b)    twelve (12) months after the termination of your Continuous Service due to your Disability;

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(c)    eighteen (18) months after your death if you die either during your Continuous Service or within three (3) months after your Continuous Service terminates;
(d)    the Expiration Date indicated in your Grant Notice; or
(e)    the day before the tenth (10th) anniversary of the Date of Grant.
8.    EXERCISE.
(a)    You may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice so permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require.
(b)    By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of your option, (2) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock acquired upon such exercise.
9.    TRANSFERABILITY.  Your option is not transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you.  Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option.
10.    OPTION NOT A SERVICE CONTRACT.  Your option is not an employment or service contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment.  In addition, nothing in your option shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees to continue any relationship that you might have as a Director or Consultant for the Company or an Affiliate.
11.    WITHHOLDING OBLIGATIONS.
(a)    At the time you exercise your option, in whole or in part, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of your option.

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(b)    Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable legal conditions or restrictions, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid variable award accounting).  If the date of determination of any tax withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the preceding sentence shall not be permitted unless you make a proper and timely election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding obligation to the date of exercise of your option.  Notwithstanding the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that are otherwise issuable to you upon such exercise.  Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility.
(c)    You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied.  Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein unless such obligations are satisfied.
12.    NOTICES.  Any notices provided for in your option or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.
13.    GOVERNING PLAN DOCUMENT.  Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations, which may from time to time be promulgated and adopted pursuant to the Plan.  In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control.

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