Document:

Exhibit
      10.26

     

    CEVA,
      INC.

     

    Nonstatutory
      Stock Option Agreement

    Granted
      Under 2003 Director Stock Option Plan

     

    1.  Grant
      of Option.

     

    This
      agreement evidences the grant by CEVA, Inc., a Delaware corporation (the
“Company”), on _____, 200__ (the
      “Grant Date”) to ______, a director of the Company (the “Participant”), of an
      option to purchase, in whole or in part, on the terms provided herein and in
      the
      Company’s 2003 Director Stock Option Plan (the “Plan”), a total of _____ shares
      (the “Shares”) of common stock, $0.001 par
      value
      per share, of the Company (“Common Stock”) at $___ per Share. Unless earlier
      terminated, this option shall expire at 5:00 p.m., Eastern time, on _____ 201__
      (the “Final Exercise Date”).

     

    It
      is
      intended that the option evidenced by this agreement shall not be an incentive
      stock option as defined in Section 422 of the Internal Revenue Code of 1986,
      as
      amended, and any regulations promulgated thereunder (the “Code”). Except as
      otherwise indicated by the context, the term “Participant”, as used in this
      option, shall be deemed to include any person who acquires the right to exercise
      this option validly under its terms.

     

    2.  Vesting
      Schedule.

     

    This
      option will become exercisable (“vest”) as to 25% of the original number of
      Shares on the first anniversary of the Grant Date and as to an additional 25%
      of
      the original number of Shares on each anniversary of the Grant Date until the
      fourth anniversary of the Grant Date.

     

    The
      right
      of exercise shall be cumulative so that to the extent the option is not
      exercised in any period to the maximum extent permissible it shall continue
      to
      be exercisable, in whole or in part, with respect to all Shares for which it
      is
      vested until the earlier of the Final Exercise Date or the termination of this
      option under Section 3 hereof or the Plan.

     

    3.  Exercise
      of Option.

     

    (a)  Form
      of Exercise.
      Each
      election to exercise this option shall be in writing, signed by the Participant,
      and received by the Company at its principal office, accompanied by this
      agreement, and payment in full in the manner provided in the Plan. The
      Participant may purchase less than the number of shares covered hereby, provided
      that no partial exercise of this option may be for any fractional share or
      for
      fewer than ten whole shares.

     

    (b)  Continuous
      Relationship with the Company Required.
      Except
      as otherwise provided in this Section 3, this option may not be exercised
      unless the Participant, at the time he or she exercises this option, is, and
      has
      been at all times since the Grant Date, an employee, officer, or director of,
      or
      consultant or advisor to, the Company or any parent or subsidiary of the Company
      as defined in Section 424(e) or (f) of the Code (an “Eligible
      Participant”).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Termination
      of Relationship with the Company.
      If the
      Participant ceases to be an Eligible Participant for any reason, then, except
      as
      provided in paragraphs (d) and (e) below, the right to exercise this option
      shall terminate three
      months after such cessation (but in no event after the Final Exercise Date),
      provided that
      this
      option shall be exercisable only to the extent that the Participant was entitled
      to exercise this option on the date of such cessation. Notwithstanding the
      foregoing, if the Participant, prior to the Final Exercise Date, violates the
      non-competition or confidentiality provisions of any employment contract,
      confidentiality and nondisclosure agreement or other agreement between the
      Participant and the Company, the right to exercise this option shall terminate
      immediately upon such violation.

     

    (d)  Exercise
      Period Upon Death or Disability.
      If the
      Participant dies or becomes disabled (within the meaning of
      Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or
      she is an Eligible Participant and the Company has not terminated such
      relationship for “cause” as specified in paragraph (e) below, this option may be
      exercised for such longer period as provided in the Plan, provided that
      this
      option shall be exercisable only to the extent that this option was exercisable
      by the Participant on the date of his or her death or disability, and further
      provided that this option shall not be exercisable after the Final Exercise
      Date.

     

    (e)  Discharge
      for Cause.
      If the
      Participant, prior to the Final Exercise Date, is discharged by the Company
      for
“cause” (as defined below), the right to exercise this option shall terminate
      immediately upon the effective date of such discharge. “Cause” shall mean
      willful misconduct by the Participant or willful failure by the Participant
      to
      perform his or her responsibilities to the Company (including, without
      limitation, breach by the Participant of any provision of any employment,
      consulting, advisory, nondisclosure, non-competition or other similar agreement
      between the Participant and the Company), as determined by the Company, which
      determination shall be conclusive. The Participant shall be considered to have
      been discharged for “Cause” if the Company determines, within 30 days after the
      Participant’s resignation, that discharge for cause was warranted.

     

    4.  Withholding.

     

    No
      Shares
      will be issued pursuant to the exercise of this option unless and until the
      Participant pays to the Company, or makes provision satisfactory to the Company
      for payment of, any federal, state or local withholding taxes required by law
      to
      be withheld in respect of this option.

     

    5.  Nontransferability
      of Option.

     

    This
      option may not be sold, assigned, transferred, pledged or otherwise encumbered
      by the Participant, either voluntarily or by operation of law, except by will
      or
      the laws of descent and distribution, and, during the lifetime of the
      Participant, this option shall be exercisable only by the
      Participant.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    6.  Provisions
      of the Plan.

     

    This
      option is subject to the provisions of the Plan, a copy of which is furnished
      to
      the Participant with this option.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this option to be executed under its
      corporate seal by its duly authorized officer. This option shall take effect
      as
      a sealed instrument.

     

    
      	 	 	 
	 	
              CEVA,
                INC.

            
	 
 	 
 	 
 
	Dated:
              ____________________	By:  	 
	 	
              

              Name:
                __________________________________

            
	 	Title:
              ___________________________________

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    PARTICIPANT’S
      ACCEPTANCE

     

    The
      undersigned hereby accepts the foregoing option and agrees to the terms and
      conditions thereof. The undersigned hereby acknowledges receipt of a copy of
      the
      Company’s 2003 Director Stock Option Plan.

     

    
      	 	 	
              PARTICIPANT:

            
	 	 	 
	 	 	 
	 	 	 	 
	 	 	
              Address:

            	 
	 	 	 	 

    

     

    
      
        
        

      

      
        -5-AMENDMENT
      NO. 2 TO AGREEMENT AND PLAN OF MERGER

     

    This
      AMENDMENT NO. 2 TO AGREEMENT AND PLAN OF MERGER is entered into as of August
      8,
      2006 (this “Amendment”)
      among
      NOVASTAR RESOURCES LTD., a Nevada corporation (“Company”), TP ACQUISITION CORP.,
      a Delaware corporation and wholly-owned subsidiary of Company (“Acquisition
      Sub”), and THORIUM POWER, INC., a Delaware corporation (“Thorium Power”).
      Capitalized terms used, but not otherwise defined, herein have the meanings
      ascribed to such terms in the Agreement (as defined below).

     

    BACKGROUND

     

    The
      Parties entered into an Agreement and Plan of Merger on February 14, 2006 (the
      “Agreement”)
      relating to the acquisition by Company of one hundred percent (100%) of the
      outstanding common stock of Thorium Power through a reverse merger of
      Acquisition Sub with and into Thorium Power. The Agreement was thereafter
      amended on June 12, 2006. The Parties now desire to enter into this Amendment
      to
      further modify the terms of the Agreement as more specifically set forth
      herein.

     

    AGREEMENT

     

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

     

    1. Amendment
      to Section 1.2(a).
      Section
      1.2(a) of the Agreement is deleted in its entirety and in lieu thereof the
      following new Section 1.2(a) is inserted:

     

    “(a)        
      Purchase
      Price.
      

     

    (i) At
      the
      Closing, each issued and outstanding share of Thorium Power’s common stock,
      $0.05 par value per share (the “Thorium
      Power Common Stock”)
      other
      than shares of Thorium Power Common Stock held by Company shall be converted
      into the right to receive 25.628 shares of Company’s common stock, $0.001 par
      value per share (the “Company
      Common Stock”).

     

    (ii) At
      the
      Closing, each Exchangeable Security that has an exercise price of $5.00 or
      $1.00
      (constituting the only prices at which Exchangeable Securities are exercisable)
      shall be converted into the right to receive 22.965 and 12.315 shares of Company
      Common Stock, respectively.

     

    (iii) All
      shares of Thorium Power Common Stock and all Exchangeable Securities will no
      longer be outstanding and will automatically be cancelled and retired and shall
      cease to exist, and each holder of a certificate representing any such shares
      of
      Thorium Power Common Stock or certificate or other instrument evidencing any
      such Exchangeable Securities that are so exchanged shall cease to have any
      rights with respect thereto, except the right to receive the shares of Company
      Common Stock to be issued in consideration therefor upon the surrender of such
      certificate or other instrument in accordance with Section 1.2(c), without
      interest.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv)
      Any
      securities convertible into or exercisable for shares of Thorium Power Common
      Stock (the “Thorium
      Power Convertible Securities”)
      immediately prior to the Effective Time (other than the Exchangeable Securities)
      will become, at the Effective Time, securities exercisable for such number
      of
      shares of Company Common Stock as the holder of such securities would have
      received had such holder converted such securities into Thorium Power Common
      Stock immediately prior to the Closing. Appropriate adjustment will be made
      to
      any exercise or conversion price of such securities.”

     

    2.            
      Agreement.
      In all
      other respects, the Agreement shall remain in full force and
      effect.

     

    3.           
      Counterparts.
      This
      Amendment may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute one and the same
      instrument.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	 	 
	 	NOVASTAR
              RESOURCES
              LTD.
	 
 	 
 	 
 
	 	By:  	/s/ Seth
              Grae
	 	
              
Name:
              Seth Grae
	 	Title:
              President and Chief Executive Officer

    

     

    
      	 	 	 
	 	TP
              ACQUISITION
              CORP.
	 
 	 
 	 
 
	 	By:  	/s/ Seth
              Grae
	 	
              
Name:
              Seth Grae
	 	Title:
              President and Chief Executive Officer

    

    
      	 	 	 
	 	THORIUM
              POWER,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ Seth
              Grae
	 	
              
Name:
              Seth Grae
	 	Title:
              President and Chief Executive Officer

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