Document:

exv4w1

 

Exhibit 4.1

	STOCK CERTIFICATE

 

 

	THE BOARD OF THIS CORPORATION HAS THE AUTHORITY TO CREATE AND DETERMINE THE RELATIVE RIGHTS AND
PREFERENCES OF CLASSES OR SERIES OF SHARES OF CAPITAL STOCK OTHER THAN COMMON STOCK. THIS
CORPORATION WILL FURNISH TO ANY SHAREHOLDER UPON WRITTEN REQUEST SENT TO ITS PRINCIPAL EXECUTIVE
OFFICES, AND WITHOUT CHARGE, A FULL STATEMENT OF THE BOARD’S AUTHORITY TO CREATE AND DETERMINE THE
RELATIVE RIGHTS AND PREFERENCES OF CLASSES OR SERIES OF SHARES OF CAPITAL STOCK AS WELL AS THE
DESIGNATIONS, PREFERENCES, LIMITATIONS AND RELATIVE RIGHTS OF THE SHARES OF EACH CLASS OR SERIES
THEN OUTSTANDING OR AUTHORIZED TO BE ISSUED. The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed as though they were written out in
full according to applicable laws or regulations: UTMA —  ___Custodian ___TEN
COM — as tenants in common (Cust) (Minor) TEN ENT — as tenants by entireties under Uniform
Transfers to Minors JT TEN — as joint tenants with right of survivorship Act
___and not as tenants in common (State) Additional abbreviations may also be
used though not in above list. For value received ___hereby sell, assign, and transfer unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE (PLEASE PRINT OR TYPEWRITE
NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE) Shares of the capital stock represented by the
within Certificate, and do hereby irrevocably constitute and appoint Attorney to transfer the said
stock on the books of the within-named Corporation with full power of substitution in the premises.
Dated ___X X NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME
AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT
OR ANY CHANGE WHATEVER. SIGNATURE GUARANTEED ALL GUARANTEES MUST BE MADE BY A FINANCIAL INSTITUTION
(SUCH AS A BANK OR BROKER) WHICH IS A PARTICIPANT IN THE SECURITIES TRANSFER AGENTS MEDALLION
PROGRAM (“STAMP”), THE NEW YORK STOCK EXCHANGE, INC. MEDALLION SIGNATURE PROGRAM (“MSP”), OR THE
STOCK EXCHANGES MEDALLION PROGRAM (“SEMP”) AND MUST NOT BE DATED. GUARANTEES BY A NOTARY PUBLIC ARE
NOT ACCEPTABLE.<PAGE>
                                                                    EXHIBIT 4.26

                         MILESTONE AV TECHNOLOGIES, INC.

                           2007 EQUITY INCENTIVE PLAN

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                                TABLE OF CONTENTS

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1.  PURPOSE.............................................................      1

2.  DEFINITIONS.........................................................      1

3.  TERM OF THE PLAN....................................................      5

4.  STOCK SUBJECT TO THE PLAN...........................................      5

5.  ADMINISTRATION......................................................      5

6.  AUTHORIZATION OF GRANTS.............................................      6

7.  SPECIFIC TERMS OF AWARDS............................................      7

8.  ADJUSTMENT PROVISIONS...............................................     12

9.  CHANGE OF CONTROL...................................................     15

10. SETTLEMENT OF AWARDS................................................     15

11. RESERVATION OF STOCK................................................     17

12. LIMITATION OF RIGHTS IN STOCK; NO SPECIAL SERVICE RIGHTS............     17

13. UNFUNDED STATUS OF PLAN.............................................     18

14. NONEXCLUSIVITY OF THE PLAN..........................................     18

15. TERMINATION AND AMENDMENT...........................................     18

16. NOTICES AND OTHER COMMUNICATIONS....................................     19

17. GOVERNING LAW.......................................................     19
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                         MILESTONE AV TECHNOLOGIES, INC.

                           2007 EQUITY INCENTIVE PLAN

1. PURPOSE

      This Plan is intended to encourage ownership of Stock by employees,
consultants and directors of the Company and its Affiliates and to provide
additional incentive for them to promote the success of the Company's business
through the grant of Awards of or pertaining to shares of the Company's Stock.
The Plan is intended to be an incentive stock option plan within the meaning of
Section 422 of the Code, but not all Awards are required to be Incentive
Options.

2. DEFINITIONS

      As used in this Plan, the following terms shall have the following
meanings:

      2.1. Accelerate, Accelerated, and Acceleration, means: (a) when used with
respect to an Option or Stock Appreciation Right, that as of the time of
reference the Option or Stock Appreciation Right will become exercisable with
respect to some or all of the shares of Stock for which it was not then
otherwise exercisable by its terms; (b) when used with respect to Restricted
Stock or Restricted Stock Units, that the Risk of Forfeiture otherwise
applicable to the Stock or Units shall expire with respect to some or all of the
shares of Restricted Stock or Units then still otherwise subject to the Risk of
Forfeiture; and (c) when used with respect to Performance Units, that the
applicable Performance Goals shall be deemed to have been met as to some or all
of the Units.

      2.2. Affiliate means any corporation, partnership, limited liability
company, business trust, or other entity controlling, controlled by or under
common control with the Company.

      2.3. Award means any grant or sale pursuant to the Plan of Options, Stock
Appreciation Rights, Performance Units, Restricted Stock, Restricted Stock
Units, or Stock Grants.

      2.4. Award Agreement means an agreement between the Company and the
recipient of an Award, setting forth the terms and conditions of the Award.

      2.5. Board means the Company's Board of Directors.

      2.6. Change of Control means the occurrence of any of the following after
the date of the approval of the Plan by the Board:

            (a) a Transaction (as defined in Section 8.4), unless securities
possessing more than 50% of the total combined voting power of the survivor's or
acquiror's outstanding securities (or the securities of any parent thereof) are
held by a person or persons who held securities possessing more than 50% of the
total combined voting power of the Company's outstanding securities immediately
prior to that transaction, or

            (b) any person or group of persons (within the meaning of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended and in effect from
time to time) directly or indirectly acquires, including but not limited to by
means of a merger or consolidation, beneficial

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ownership (determined pursuant to Securities and Exchange Commission Rule 13d-3
promulgated under the said Exchange Act) of securities possessing more than 50%
of the total combined voting power of the Company's outstanding securities
pursuant to a tender or exchange offer made directly to the Company's
stockholders that the Board does not recommend such stockholders accept, other
than (i) the Company or an Affiliate, (ii) an employee benefit plan of the
Company or any of its Affiliates, (iii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its
Affiliates, or (iv) an underwriter temporarily holding securities pursuant to an
offering of such securities, or

            (c) over a period of 36 consecutive months or less, there is a
change in the composition of the Board such that a majority of the Board members
(rounded up to the next whole number, if a fraction) ceases, by reason of one or
more proxy contests for the election of Board members, to be composed of
individuals who either (i) have been Board members continuously since the
beginning of that period, or (ii) have been elected or nominated for election as
Board members during such period by at least a majority of the Board members
described in the preceding clause (i) who were still in office at the time that
election or nomination was approved by the Board.

      2.7. Code means the Internal Revenue Code of 1986, as amended from time to
time, or any successor statute thereto, and any regulations issued from time to
time thereunder.

      2.8. Committee means the Compensation Committee of the Board, which in
general is responsible for the administration of the Plan, as provided in
Section 5 of this Plan. For any period during which no such committee is in
existence "Committee" shall mean the Board and all authority and responsibility
assigned to the Committee under the Plan shall be exercised, if at all, by the
Board.

      2.9. Company means Milestone AV Technologies, Inc., a corporation
organized under the laws of the State of Delaware.

      2.10. Covered Employee means an employee who is a "covered employee"
within the meaning of Section 162(m) of the Code.

      2.11. Grant Date means the date as of which an Option is granted, as
determined under Section 7.1(a).

      2.12. Incentive Option means an Option which by its terms is to be treated
as an "incentive stock option" within the meaning of Section 422 of the Code.

      2.13. Market Value means the value of a share of Stock on a particular
date determined by such methods or procedures as may be established by the
Committee. Unless otherwise determined by the Committee, the Market Value of
Stock as of any date is the closing price for the Stock as reported on the New
York Stock Exchange (or on any other national securities exchange on which the
Stock is then listed) for that date or, if no closing price is reported for that
date, the closing price on the next preceding date for which a closing price was
reported. For purposes of Awards effective as of the effective date of the
Company's initial public offering, Market Value of Stock shall be the price at
which the Company's Stock is offered to the public in its initial public
offering.

      2.14. Nonstatutory Option means any Option that is not an Incentive
Option.

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      2.15. Option means an option to purchase shares of Stock.

      2.16. Optionee means a Participant to whom an Option shall have been
granted under the Plan.

      2.17. Participant means any holder of an outstanding Award under the Plan.

      2.18. Performance Criteria means the criteria that the Committee selects
for purposes of establishing the Performance Goal or Performance Goals for a
Participant for a Performance Period. The Performance Criteria used to establish
Performance Goals are limited to: (i) cash flow (before or after dividends),
(ii) earnings per share (including, without limitation, earnings before
interest, taxes, depreciation and amortization), (iii) stock price, (iv) return
on equity, (v) stockholder return or total stockholder return, (vi) return on
capital (including, without limitation, return on total capital or return on
invested capital), (vii) return on investment, (viii) return on assets or net
assets, (ix) market capitalization, (x) economic value added, (xi) debt
leverage, (xii) sales or net sales, (xiii) completion and financial performance
of acquisitions, (xiv) income, pre-tax income or net income, (xv) operating
income or pre-tax profit, (xvi) operating profit, net operating profit or
economic profit, (xvii) gross margin, operating margin or profit margin, (xviii)
return on operating revenue or return on operating assets, (xix) cash from
operations, (xx) operating ratio, (xxi) operating revenue, (xxii) market share
improvement, (xxiii) general and administrative expenses, and (xxiv) customer
service.

      2.19. Performance Goals means, for a Performance Period, the written goal
or goals established by the Committee for the Performance Period based upon the
Performance Criteria. The Performance Goals may be expressed in terms of overall
Company performance or the performance of a division, business unit, subsidiary,
or an individual, either individually, alternatively or in any combination,
applied to either the Company as a whole or to a business unit or Affiliate,
either individually, alternatively or in any combination, and measured either
quarterly, annually or cumulatively over a period of years, on an absolute basis
or relative to a pre-established target, to previous years' results or to a
designated comparison group, in each case as specified by the Committee. The
Committee will, in the manner and within the time prescribed by Section 162(m)
of the Code in the case of Qualified Performance-Based Awards, objectively
define the manner of calculating the Performance Goal or Goals it selects to use
for such Performance Period for such Participant. To the extent consistent with
Section 162(m) of the Code, the Committee may appropriately adjust any
evaluation of performance against a Performance Goal to exclude any of the
following events that occurs during a Performance Period: (i) acquisitions or
dispositions, (ii) asset write-downs, (iii) litigation, claims, judgments or
settlements, (iv) the effect of changes in tax law, accounting principles or
other such laws or provisions affecting reported results, (v) accruals for
reorganization and restructuring programs; and (vi) any extraordinary, unusual,
non-recurring or non-comparable items (A) as described in Accounting Principles
Board Opinion No. 30, (B) as described in any "Management's Discussion and
Analysis of Financial Condition and Results of Operations" appearing in the
Company's Annual Report to stockholders for the applicable year or in the
Company's Annual Report on Form 10-K, or (C) publicly announced by the Company
in a press release or conference call relating to the Company's results of
operations or financial condition for a completed quarterly or annual fiscal
period.

      2.20. Performance Period means the one or more periods of time, which may
be of varying and overlapping durations, selected by the Committee, over which
the attainment of one

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or more Performance Goals or other business objectives will be measured for
purposes of determining a Participant's right to, and the payment of, a
Performance Unit.

      2.21. Performance Unit means a right granted to a Participant under
Section 7.5 to receive cash, Stock or other Awards, the payment of which is
contingent on achieving Performance Goals or other business objectives
established by the Committee.

      2.22. Plan means this 2007 Equity Incentive Plan of the Company, as
amended from time to time, and including any attachments or addenda hereto.

      2.23. Qualified Performance-Based Awards means Awards intended to qualify
as "performance-based compensation" under Section 162(m) of the Code.

      2.24. Restricted Stock means a grant or sale of shares of Stock to a
Participant subject to a Risk of Forfeiture.

      2.25. Restricted Stock Units means rights to receive shares of Stock at
the close of a Restriction Period, subject to a Risk of Forfeiture.

      2.26. Restriction Period means the period of time, established by the
Committee in connection with an Award of Restricted Stock or Restricted Stock
Units, during which the shares of Restricted Stock are subject to a Risk of
Forfeiture described in the applicable Award Agreement.

      2.27. Risk of Forfeiture means a limitation on the right of the
Participant to retain Restricted Stock or Restricted Stock Units, including a
right of the Company to reacquire shares of Restricted Stock at less than their
then Market Value, arising because of the occurrence or non-occurrence of
specified events or conditions.

      2.28. Stock means common stock, par value $0.001 per share, of the
Company, and such other securities as may be substituted for Stock pursuant to
Section 8.

      2.29. Stock Appreciation Right means a right to receive any excess in the
Market Value of shares of Stock (except as otherwise provided in Section 7.2(c))
over a specified exercise price.

      2.30. Stock Grant means the grant of shares of Stock not subject to
restrictions or other forfeiture conditions.

      2.31. Stockholders' Agreement means any agreement by and among the holders
of at least a majority of the outstanding voting securities of the Company and
setting forth, among other provisions, restrictions upon the transfer of shares
of Stock or on the exercise of rights appurtenant thereto (including but not
limited to voting rights).

      2.32. Ten Percent Owner means a person who owns, or is deemed within the
meaning of Section 422(b)(6) of the Code to own, stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company (or
any parent or subsidiary corporations of the Company, as defined in Sections
424(e) and (f), respectively, of the Code). Whether a person is a Ten Percent
Owner shall be determined with respect to an Option based on the facts existing
immediately prior to the Grant Date of the Option.

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3. TERM OF THE PLAN

      Unless the Plan shall have been earlier terminated by the Board, Awards
may be granted under this Plan at any time in the period commencing on the date
of approval of the Plan by the Board and ending immediately prior to the tenth
anniversary of the earlier of the adoption of the Plan by the Board or approval
of the Plan by the Company's stockholders. Awards granted pursuant to the Plan
within that period shall not expire solely by reason of the termination of the
Plan. Awards of Incentive Options granted prior to stockholder approval of the
Plan are expressly conditioned upon such approval, but in the event of the
failure of the stockholders to approve the Plan shall thereafter and for all
purposes be deemed to constitute Nonstatutory Options.

4. STOCK SUBJECT TO THE PLAN

      At no time shall the number of shares of Stock issued pursuant to or
subject to outstanding Awards granted under the Plan (including pursuant to
Incentive Options), nor the number of shares of Stock issued pursuant to
Incentive Options, exceed 3,300,000 shares of Stock; subject, however, to the
provisions of Section 8 of the Plan. For purposes of applying the foregoing
limitation, (a) if any Option or Stock Appreciation Right expires, terminates,
or is cancelled for any reason without having been exercised in full, or if any
other Award is forfeited by the recipient or repurchased at less than its Market
Value, the shares not purchased by the Optionee or which are forfeited by the
recipient or repurchased shall again be available for Awards to be granted under
the Plan and (b) if any Option is exercised by delivering previously owned
shares in payment of the exercise price therefor, only the net number of shares,
that is, the number of shares issued minus the number received by the Company in
payment of the exercise price, shall be considered to have been issued pursuant
to an Award granted under the Plan. In addition, settlement of any Award shall
not count against the foregoing limitations except to the extent settled in the
form of Stock. Shares of Stock issued pursuant to the Plan may be either
authorized but unissued shares or shares held by the Company in its treasury.

5. ADMINISTRATION

      The Plan shall be administered by the Committee; provided, however, that
at any time and on any one or more occasions the Board may itself exercise any
of the powers and responsibilities assigned the Committee under the Plan and
when so acting shall have the benefit of all of the provisions of the Plan
pertaining to the Committee's exercise of its authorities hereunder; and
provided further, however, that the Committee may delegate to an executive
officer or officers the authority to grant Awards hereunder to employees who are
not officers, and to consultants, in accordance with such guidelines as the
Committee shall set forth at any time or from time to time. Subject to the
provisions of the Plan, the Committee shall have complete authority, in its
discretion, to make or to select the manner of making all determinations with
respect to each Award to be granted by the Company under the Plan including the
employee, consultant or director to receive the Award and the form of Award. In
making such determinations, the Committee may take into account the nature of
the services rendered by the respective employees, consultants, and directors,
their present and potential contributions to the success of the Company and its
Affiliates, and such other factors as the Committee in its discretion shall deem
relevant. Subject to the provisions of the Plan, the Committee shall also have
complete authority to interpret the Plan, to prescribe, amend and rescind rules
and regulations relating to it, to determine the terms and provisions of the
respective Award Agreements (which need not be identical), and to make all other
determinations necessary or

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advisable for the administration of the Plan. The Committee's determinations
made in good faith on matters referred to in the Plan shall be final, binding
and conclusive on all persons having or claiming any interest under the Plan or
an Award made pursuant hereto.

6. AUTHORIZATION OF GRANTS

      6.1. Eligibility. The Committee may grant from time to time and at any
time prior to the termination of the Plan one or more Awards, either alone or in
combination with any other Awards, to any employee of or consultant to one or
more of the Company and its Affiliates or to non-employee members of the Board
or of any board of directors (or similar governing authority) of any Affiliate.
However, only employees of the Company, and of any parent or subsidiary
corporations of the Company, as defined in Sections 424(e) and (f),
respectively, of the Code, shall be eligible for the grant of an Incentive
Option. Further, in no event shall the number of shares of Stock covered by
Options or other Awards granted to any one person in any one calendar year
exceed the aggregate number of shares of Stock subject to the Plan.

      6.2. General Terms of Awards. Each grant of an Award shall be subject to
all applicable terms and conditions of the Plan (including but not limited to
any specific terms and conditions applicable to that type of Award set out in
the following Section), and such other terms and conditions, not inconsistent
with the terms of the Plan, as the Committee may prescribe. No prospective
Participant shall have any rights with respect to an Award, unless and until
such Participant shall have complied with the applicable terms and conditions of
such Award (including if applicable delivering a fully executed copy of any
agreement evidencing an Award to the Company).

      6.3. Effect of Termination of Employment, Etc. Unless the Committee shall
provide otherwise with respect to any Award, if the Participant's employment or
other association with the Company and its Affiliates ends for any reason,
including because of the Participant's employer ceasing to be an Affiliate, (a)
any outstanding Option or SAR of the Participant shall cease to be exercisable
in any respect not later than 90 days following that event and, for the period
it remains exercisable following that event, shall be exercisable only to the
extent exercisable at the date of that event, and (b) any other outstanding
Award of the Participant shall be forfeited or otherwise subject to return to or
repurchase by the Company on the terms specified in the applicable Award
Agreement. Military or sick leave or other bona fide leave shall not be deemed a
termination of employment or other association, provided that it does not exceed
the longer of ninety (90) days or the period during which the absent
Participant's reemployment rights, if any, are guaranteed by statute or by
contract.

      6.4. Non-Transferability of Awards. Except as otherwise provided in this
Section 6.4, Awards shall not be transferable, and no Award or interest therein
may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution. All
of a Participant's rights in any Award may be exercised during the life of the
Participant only by the Participant or the Participant's legal representative.
However, the Committee may, at or after the grant of an Award of a Nonstatutory
Option, or shares of Restricted Stock, provide that such Award may be
transferred by the recipient to a family member or to an Affiliate of the
recipient; provided, however, that any such transfer is without payment of any
consideration whatsoever and that no transfer shall be valid unless first
approved by the Committee, acting in its sole discretion. For this purpose,
"family member" means any child, stepchild, grandchild, parent, stepparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including

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adoptive relationships, any person sharing the employee's household (other than
a tenant or employee), a trust in which the foregoing persons have more than
fifty (50) percent of the beneficial interests, a foundation in which the
foregoing persons (or the Participant) control the management of assets, and any
other entity in which these persons (or the Participant) own more than fifty
(50) percent of the voting interests.

       6.5. Acceleration of Awards. In making any Award, the Committee may
provide in the applicable Award Agreement that the Award will Accelerate in full
or in part upon the occurrence of a specified event, including a Change of
Control.

7. SPECIFIC TERMS OF AWARDS

       7.1. Options.

            (a) Date of Grant. The granting of an Option shall take place at the
time specified in the Award Agreement. Only if expressly so provided in the
applicable Award Agreement shall the Grant Date be the date on which the Award
Agreement shall have been duly executed and delivered by the Company and the
Optionee.

            (b) Exercise Price. The price at which shares of Stock may be
acquired under each Incentive Option shall be not less than 100% of the Market
Value of Stock on the Grant Date, or not less than 110% of the Market Value of
Stock on the Grant Date if the Optionee is a Ten Percent Owner. The price at
which shares may be acquired under each Nonstatutory Option shall not be so
limited solely by reason of this Section.

            (c) Option Period. No Incentive Option may be exercised on or after
the tenth anniversary of the Grant Date, or on or after the fifth anniversary of
the Grant Date if the Optionee is a Ten Percent Owner. The Option period under
each Nonstatutory Option shall not be so limited solely by reason of this
Section.

            (d) Exercisability. An Option may be immediately exercisable or
become exercisable in such installments, cumulative or non-cumulative, as the
Committee may determine. In the case of an Option not otherwise immediately
exercisable in full, the Committee may Accelerate such Option in whole or in
part at any time; provided, however, that in the case of an Incentive Option,
any such Acceleration of the Option would not cause the Option to fail to comply
with the provisions of Section 422 of the Code or the Optionee consents to the
Acceleration.

            (e) Method of Exercise. An Option may be exercised by the Optionee
giving written notice, in the manner provided in Section 16, specifying the
number of shares with respect to which the Option is then being exercised. The
notice shall be accompanied by payment in the form of cash or check payable to
the order of the Company in an amount equal to the exercise price of the shares
to be purchased or, subject in each instance to the Committee's approval, acting
in its sole discretion, and to such conditions, if any, as the Committee may
deem necessary to avoid adverse accounting effects to the Company,

                  (i) by delivery to the Company of shares of Stock having a
      Market Value equal to the exercise price of the shares to be purchased, or

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                  (ii) by surrender of the Option as to all or part of the
      shares of Stock for which the Option is then exercisable in exchange for
      shares of Stock having an aggregate Market Value equal to the difference
      between (1) the aggregate Market Value of the surrendered portion of the
      Option, and (2) the aggregate exercise price under the Option for the
      surrendered portion of the Option, or

                  (iii) unless prohibited by applicable law, by delivery to the
      Company of the Optionee's executed promissory note in the principal amount
      equal to the exercise price of the shares to be purchased and otherwise in
      such form as the Committee shall have approved.

If the Stock is traded on an established market, payment of any exercise price
may also be made through and under the terms and conditions of any formal
cashless exercise program authorized by the Company entailing the sale of the
Stock subject to an Option in a brokered transaction (other than to the
Company). Receipt by the Company of such notice and payment in any authorized or
combination of authorized means shall constitute the exercise of the Option.
Within thirty (30) days thereafter but subject to the remaining provisions of
the Plan, the Company shall deliver or cause to be delivered to the Optionee or
his agent a certificate or certificates for the number of shares then being
purchased. Such shares shall be fully paid and nonassessable.

            (f) Limit on Incentive Option Characterization. An Incentive Option
shall be considered to be an Incentive Option only to the extent that the number
of shares of Stock for which the Option first becomes exercisable in a calendar
year do not have an aggregate Market Value (as of the date of the grant of the
Option) in excess of the "current limit". The current limit for any Optionee for
any calendar year shall be $100,000 minus the aggregate Market Value at the date
of grant of the number of shares of Stock available for purchase for the first
time in the same year under each other Incentive Option previously granted to
the Optionee under the Plan, and under each other incentive stock option
previously granted to the Optionee under any other incentive stock option plan
of the Company and its Affiliates. Any shares of Stock which would cause the
foregoing limit to be violated shall be deemed to have been granted under a
separate Nonstatutory Option, otherwise identical in its terms to those of the
Incentive Option.

            (g) Notification of Disposition. Each person exercising any
Incentive Option granted under the Plan shall be deemed to have covenanted with
the Company to report to the Company any disposition of such shares prior to the
expiration of the holding periods specified by Section 422(a)(1) of the Code
and, if and to the extent that the realization of income in such a disposition
imposes upon the Company federal, state, local or other withholding tax
requirements, or any such withholding is required to secure for the Company an
otherwise available tax deduction, to remit to the Company an amount in cash
sufficient to satisfy those requirements.

    7.2. Stock Appreciation Rights.

            (a) Tandem or Stand-Alone. Stock Appreciation Rights may be granted
in tandem with an Option (at or, in the case of a Nonstatutory Option, after,
the award of the Option), or alone and unrelated to an Option. Stock
Appreciation Rights in tandem with an Option shall terminate to the extent that
the related Option is exercised, and the related Option shall terminate to the
extent that the tandem Stock Appreciation Rights are exercised.

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            (b) Exercise Price. Stock Appreciation Rights shall have an exercise
price of not less than fifty percent (50%) of the Market Value of the Stock on
the date of award, or in the case of Stock Appreciation Rights in tandem with
Options, the exercise price of the related Option.

            (c) Other Terms. Except as the Committee may deem inappropriate or
inapplicable in the circumstances, Stock Appreciation Rights shall be subject to
terms and conditions substantially similar to those applicable to a Nonstatutory
Option. In addition, an SAR related to an Option which can only be exercised
during limited periods following a Change of Control may entitle the Participant
to receive an amount based upon the highest price paid or offered for Stock in
any transaction relating to the Change of Control or paid during the thirty (30)
day period immediately preceding the occurrence of the Change of Control in any
transaction reported in the stock market in which the Stock is normally traded.

      7.3. Restricted Stock.

            (a) Purchase Price. Shares of Restricted Stock shall be issued under
the Plan for such consideration, in cash, other property or services, or any
combination thereof, as is determined by the Committee.

            (b) Issuance of Certificates. Each Participant receiving a
Restricted Stock Award, subject to subsection (c) below, shall be issued a stock
certificate in respect of such shares of Restricted Stock. Such certificate
shall be registered in the name of such Participant, and, if applicable, shall
bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award substantially in the following form:

            THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED
            BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE
            MILESTONE AV TECHNOLOGIES, INC. 2007 EQUITY INCENTIVE PLAN AND AN
            AWARD AGREEMENT ENTERED INTO BY THE REGISTERED OWNER AND MILESTONE
            AV TECHNOLOGIES, INC. COPIES OF SUCH PLAN AND AWARD AGREEMENT ARE ON
            FILE IN THE OFFICES OF MILESTONE AV TECHNOLOGIES, INC.

            (c) Escrow of Shares. The Committee may require that the stock
certificates evidencing shares of Restricted Stock be held in custody by a
designated escrow agent (which may but need not be the Company) until the
restrictions thereon shall have lapsed, and that the Participant deliver a stock
power, endorsed in blank, relating to the Stock covered by such Award.

            (d) Restrictions and Restriction Period. During the Restriction
Period applicable to shares of Restricted Stock, such shares shall be subject to
limitations on transferability and a Risk of Forfeiture arising on the basis of
such conditions related to the performance of services, Company or Affiliate
performance or otherwise as the Committee may determine and provide for in the
applicable Award Agreement. Any such Risk of Forfeiture may be waived or
terminated, or the Restriction Period shortened, at any time by the Committee on
such basis as it deems appropriate.

            (e) Rights Pending Lapse of Risk of Forfeiture or Forfeiture of
Award. Except as otherwise provided in the Plan or the applicable Award
Agreement, at all times prior to lapse of any Risk of Forfeiture applicable to,
or forfeiture of, an Award of Restricted Stock, the Participant shall have all
of the rights of a stockholder of the Company, including the right to vote,

                                      -9-
<PAGE>

      and the right to receive any dividends with respect to, the shares of
      Restricted Stock. The Committee, as determined at the time of Award, may
      permit or require the payment of cash dividends to be deferred and, if the
      Committee so determines, reinvested in additional Restricted Stock to the
      extent shares are available under Section 4.

            (f) Lapse of Restrictions. If and when the Restriction Period
expires without a prior forfeiture of the Restricted Stock, the certificates for
such shares shall be delivered to the Participant promptly if not theretofore so
delivered.

      7.4. Restricted Stock Units.

            (a) Character. Each Restricted Stock Unit shall entitle the
recipient to a share of Stock at a close of such Restriction Period as the
Committee may establish and subject to a Risk of Forfeiture arising on the basis
of such conditions relating to the performance of services, Company or Affiliate
performance or otherwise as the Committee may determine and provide for in the
applicable Award Agreement. Any such Risk of Forfeiture may be waived or
terminated, or the Restriction Period shortened, at any time by the Committee on
such basis as it deems appropriate.

            (b) Form and Timing of Payment. Payment of earned Restricted Stock
Units shall be made in a single lump sum within the 90 day period following the
close of the applicable Restriction Period. At the discretion of the Committee,
Participants may be entitled to receive payments equivalent to any dividends
declared with respect to Stock referenced in grants of Restricted Stock Units
but only within the 90 day period following the close of the applicable
Restriction Period and then only if the underlying Stock shall have been earned.
Unless the Committee shall provide otherwise, any such dividend equivalents
shall be paid, if at all, without interest or other earnings.

      7.5. Performance Units.

            (a) Character. Each Performance Unit shall entitle the recipient to
the value of a specified number of shares of Stock, over the initial value for
such number of shares, if any, established by the Committee at the time of
grant, at the close of a specified Performance Period to the extent specified
business objectives, including but not limited to Performance Goals, shall have
been achieved.

            (b) Earning of Performance Units. The Committee shall set
Performance Goals or other business objectives in its discretion which,
depending on the extent to which they are met within the applicable Performance
Period, will determine the number and value of Performance Units that will be
paid out to the Participant. After the applicable Performance Period has ended,
the holder of Performance Units shall be entitled to receive payout on the
number and value of Performance Units earned by the Participant over the
Performance Period, to be determined as a function of the extent to which the
corresponding Performance Goals or other business objectives have been achieved.

            (c) Form and Timing of Payment. Payment of earned Performance Units
shall be made in a single lump sum within the 90 day period following the close
of the applicable Performance Period. At the discretion of the Committee,
Participants may be entitled to receive any dividends declared with respect to
Stock which have been earned in connection with grants of Performance Units
which have been earned, but not yet distributed to Participants. The Committee

                                      -10-
<PAGE>

may permit or, if it so provides at grant require, a Participant to defer such
Participant's receipt of the payment of cash or the delivery of Stock that would
otherwise be due to such Participant by virtue of the satisfaction of any
requirements or goals with respect to Performance Units. If any such deferral
election is required or permitted, the Committee shall establish rules and
procedures for such payment deferrals.

      7.6. Stock Grants. Stock Grants shall be awarded in recognition of
significant prior or expected contributions to the success of the Company or its
Affiliates, in lieu of compensation otherwise already due, as inducements to
employment and in such other circumstances as the Committee deems appropriate.
Stock Grants shall be made without forfeiture conditions of any kind.

      7.7. Qualified Performance-Based Awards.

            (a) Purpose. The purpose of this Section 7.7 is to provide the
Committee the ability to qualify Awards as "performance-based compensation"
under Section 162(m) of the Code. If the Committee, in its discretion, decides
to grant an Award as a Qualified Performance-Based Award, the provisions of this
Section 7.7 will control over any contrary provision contained in the Plan. In
the course of granting any Award, the Committee may specifically designate the
Award as intended to qualify as a Qualified Performance-Based Award. However, no
Award shall be considered to have failed to qualify as a Qualified
Performance-Based Award solely because the Award is not expressly designated as
a Qualified Performance-Based Award, if the Award otherwise satisfies the
provisions of this Section 7.7 and the requirements of Section 162(m) of the
Code and the regulations promulgated thereunder applicable to "performance-based
compensation."

            (b) Authority. All grants of Awards intended to qualify as Qualified
Performance-Based Awards and determination of terms applicable thereto shall be
made by the Committee or, if not all of the members thereof qualify as "outside
directors" within the meaning of applicable IRS regulations under Section 162 of
the Code, a subcommittee of the Committee consisting of such of the members of
the Committee as do so qualify. Any action by such a subcommittee shall be
considered the action of the Committee for purposes of the Plan.

            (c) Applicability. This Section 7.7 will apply only to those Covered
Employees, or to those persons who the Committee determines are reasonably
likely to become Covered Employees in the period covered by an Award, selected
by the Committee to receive Qualified Performance-Based Awards. The Committee
may, in its discretion, grant Awards to Covered Employees that do not satisfy
the requirements of this Section 7.7.

            (d) Discretion of Committee with Respect to Qualified
Performance-Based Awards. Options may be granted as Qualified Performance-Based
Awards in accordance with Section 7.1, except that the exercise price of any
Option intended to qualify as a Qualified Performance-Based Award shall in no
event be less that the Market Value of the Stock on the date of grant. Other
Awards intended to qualify as Qualified Performance-Based Awards, such as
Restricted Stock, Restricted Stock Units, or Performance Units, shall be subject
to satisfaction of one or more Performance Goals. The Committee will have full
discretion to select the length of any applicable Restriction Period or
Performance Period, the kind and/or level of the applicable Performance Goal,
and whether the Performance Goal is to apply to the Company, a subsidiary or any
division or business unit or to the individual. Any Performance Goal or Goals
applicable to Qualified Performance-Based Awards shall be objective, shall be
established not later than ninety

                                      -11-
<PAGE>

(90) days after the beginning of any applicable Performance Period (or at such
other date as may be required or permitted for "performance-based compensation"
under Section 162(m) of the Code) and shall otherwise meet the requirements of
Section 162(m) of the Code, including the requirement that the outcome of the
Performance Goal or Goals be substantially uncertain (as defined in the
regulations under Section 162(m) of the Code) at the time established.

            (e) Payment of Qualified Performance-Based Awards. A Participant
will be eligible to receive payment under a Qualified Performance-Based Award
which is subject to achievement of a Performance Goal or Goals only if the
applicable Performance Goal or Goals period are achieved within the applicable
Performance Period, as determined by the Committee. In determining the actual
size of an individual Qualified Performance-Based Award, the Committee may
reduce or eliminate the amount of the Qualified Performance-Based Award earned
for the Performance Period, if in its sole and absolute discretion, such
reduction or elimination is appropriate.

            (f) Maximum Award Payable. The maximum Qualified Performance-Based
Award payment to any one Participant under the Plan for a Performance Period is
the number of shares of Stock set forth in Section 4 above, or if the Qualified
Performance-Based Award is paid in cash, that number of shares multiplied by the
Market Value of the Stock as of the date the Qualified Performance-Based Award
is granted.

            (g) Limitation on Adjustments for Certain Events. No adjustment of
any Qualified Performance-Based Award pursuant to Section 8 shall be made except
on such basis, if any, as will not cause such Award to provide other than
"performance-based compensation" within the meaning of Section 162(m) of the
Code.

      7.8. Awards to Participants Outside the United States. The Committee may
modify the terms of any Award under the Plan granted to a Participant who is, at
the time of grant or during the term of the Award, resident or primarily
employed outside of the United States in any manner deemed by the Committee to
be necessary or appropriate in order that the Award shall conform to laws,
regulations, and customs of the country in which the Participant is then
resident or primarily employed, or so that the value and other benefits of the
Award to the Participant, as affected by foreign tax laws and other restrictions
applicable as a result of the Participant's residence or employment abroad,
shall be comparable to the value of such an Award to a Participant who is
resident or primarily employed in the United States. The Committee may establish
supplements to, or amendments, restatements, or alternative versions of the Plan
for the purpose of granting and administrating any such modified Award. No such
modification, supplement, amendment, restatement or alternative version may
increase the share limit of Section 4.

8. ADJUSTMENT PROVISIONS

      8.1. Adjustment for Corporate Actions. All of the share numbers set forth
in the Plan reflect the capital structure of the Company as of the date
immediately prior to the completion of its initial public offering pursuant to
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. If subsequent to that date the outstanding shares of
Stock (or any other securities covered by the Plan by reason of the prior
application of this Section) are increased, decreased, or exchanged for a
different number or kind of shares or other securities, or if additional shares
or new or different shares or other securities are distributed with respect to
shares of Stock, as a result of a reorganization, recapitalization,
reclassification, stock dividend,

                                      -12-
<PAGE>

stock split, reverse stock split, or other similar distribution with respect to
such shares of Stock, an appropriate and proportionate adjustment will be made
in (i) the maximum numbers and kinds of shares provided in Section 4, (ii) the
numbers and kinds of shares or other securities subject to the then outstanding
Awards, (iii) the exercise price for each share or other unit of any other
securities subject to then outstanding Options and Stock Appreciation Rights
(without change in the aggregate purchase price as to which such Options or
Rights remain exercisable), and (iv) the repurchase price of each share of
Restricted Stock then subject to a Risk of Forfeiture in the form of a Company
repurchase right.

      8.2. Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. In the event of any corporate action not specifically
covered by the preceding Section, including but not limited to an extraordinary
cash distribution on Stock, a corporate separation or other reorganization or
liquidation, the Committee may make such adjustment of outstanding Awards and
their terms, if any, as it, in its sole discretion, may deem equitable and
appropriate in the circumstances. The Committee may make adjustments in the
terms and conditions of, and the criteria included in, Awards in recognition of
unusual or nonrecurring events (including, without limitation, the events
described in this Section) affecting the Company or the financial statements of
the Company or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

      8.3. Related Matters. Any adjustment in Awards made pursuant to Section
8.1 or 8.2 shall be determined and made, if at all, by the Committee, acting in
its sole discretion, and shall include any correlative modification of terms,
including of Option exercise prices, rates of vesting or exercisability, Risks
of Forfeiture, applicable repurchase prices for Restricted Stock, and
Performance Goals and other financial objectives which the Committee may deem
necessary or appropriate so as to ensure the rights of the Participants in their
respective Awards are not substantially diminished nor enlarged as a result of
the adjustment and corporate action other than as expressly contemplated in this
Section 8. No fraction of a share shall be purchasable or deliverable upon
exercise, but in the event any adjustment hereunder of the number of shares
covered by an Award shall cause such number to include a fraction of a share,
such number of shares shall be adjusted to the nearest smaller whole number of
shares. No adjustment of an Option exercise price per share pursuant to this
Section 8 shall result in an exercise price which is less than the par value of
the Stock.

      8.4. Transactions.

            (a) Definition of Transaction. In this Section 8.4, "Transaction"
means (1) any merger or consolidation of the Company with or into another entity
as a result of which all of the Stock of the Company is converted into or
exchanged for the right to receive cash, securities or other property or is
cancelled, (2) any exchange of all of the Stock of the Company for cash,
securities or other property pursuant to a share exchange transaction, (3) any
sale, transfer, or other disposition of all or substantially all of the
Company's assets to one or more other persons in a single transaction or series
of related transactions or (4) any liquidation or dissolution of the Company.

            (b) Treatment of Options and Share Appreciation Rights. In a
Transaction, the Committee may take any one or more of the following actions as
to all or any (or any portion of) outstanding Options and Share Appreciation
Rights ("Rights").

                                      -13-
<PAGE>

                  (1) Provide that such Rights shall be assumed, or
      substantially equivalent rights shall be provided in substitution
      therefore, by the acquiring or succeeding entity (or an affiliate
      thereof).

                  (2) Upon written notice to the holders, provide that the
      holders' unexercised Rights will terminate immediately prior to the
      consummation of such Transaction unless exercised within a specified
      period following the date of such notice.

                  (3) Provide that outstanding Rights shall become exercisable
      in whole or in part prior to or upon the Transaction.

                  (4) Provide for cash payments, net of applicable tax
      withholdings, to be made to holders equal to the excess, if any, of (A)
      the acquisition price times the number of shares of Stock subject to a
      Right (to the extent the exercise price does not exceed the acquisition
      price) over (B) the aggregate exercise price for all such shares of Stock
      subject to the Right, in exchange for the termination of such Right. For
      this purpose, "acquisition price" means the amount of cash, and market
      value of any other consideration, received in payment for a share of Stock
      surrendered in a Transaction.

                  (5) Provide that, in connection with a liquidation or
      dissolution of the Company, Rights shall convert into the right to receive
      liquidation proceeds, net of the exercise price thereof and any applicable
      tax withholdings.

                  (6) Any combination of the foregoing.

For purposes of paragraph (1) above, a Right shall be considered assumed, or a
substantially equivalent right shall be considered to have been provided in
substitution therefore, if following consummation of the Transaction, the Right
confers the right to purchase or receive the value of, for each share of Stock
subject to the Right immediately prior to the consummation of the Transaction,
the consideration (whether cash, securities or other property) received as a
result of the Transaction by holders of Stock for each share of Stock held
immediately prior to the consummation of the Transaction (and if holders were
offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares of Stock); provided, however,
that if the consideration received as a result of the Transaction is not solely
common stock (or its equivalent) of the acquiring or succeeding entity (or an
affiliate thereof), the Committee may provide for the consideration to be
received upon the exercise of the Right to consist of or be based on solely
common stock (or its equivalent) of the acquiring or succeeding entity (or an
affiliate thereof) equivalent in value to the per share consideration received
by holders of outstanding shares of Stock as a result of the Transaction.

            (c) Treatment of Restricted Stock. As to outstanding Awards other
than Options or Share Appreciation Rights, upon the occurrence of a Transaction
other than a liquidation or dissolution of the Company which is not part of
another form of Transaction, the repurchase and other rights of the Company
under each such Award shall inure to the benefit of the Company's successor and
shall, unless the Committee determines otherwise, apply to the cash, securities
or other property which the Stock was converted into or exchanged for pursuant
to such Transaction in the same manner and to the same extent as they applied to
the Award. Upon the occurrence of a Transaction involving a liquidation or
dissolution of the Company which is not part of another form of Transaction,
except to the extent specifically provided to the contrary in the instrument
evidencing any Award or any other agreement between a Participant and the
Company,

                                      -14-
<PAGE>

all Risks of Forfeiture and Performance Goals, where otherwise applicable to any
such Awards, shall automatically be deemed terminated or satisfied, as
applicable.

            (d) Related Matters. In taking any of the actions permitted under
this Section 8.4, the Committee shall not be obligated to treat all Awards, all
Awards held by a Participant, or all Awards of the same type, identically. Any
determinations required to carry out the foregoing provisions of this Section
8.4, including but not limited to the market value of other consideration
received by holders of Stock in a Transaction and whether substantially
equivalent Rights have been substituted, shall be made by the Committee acting
in its sole discretion.

9. CHANGE OF CONTROL

      Upon the occurrence of a Change of Control, the Committee may Accelerate
any and all of the outstanding Awards at its discretion, provided, however, that
the foregoing shall not apply (i) in the case of any Award pursuant to an Award
Agreement requiring other or additional terms upon a Change of Control (or
similar event), or (ii) if specifically prohibited under applicable laws, or by
the rules and regulations of any governing governmental agencies or national
securities exchanges.

10. SETTLEMENT OF AWARDS

      10.1. In General. Options and Restricted Stock shall be settled in
accordance with their terms. All other Awards may be settled in cash, Stock, or
other Awards, or a combination thereof, as determined by the Committee at or
after grant and subject to any contrary Award Agreement. The Committee may not
require settlement of any Award in Stock pursuant to the immediately preceding
sentence to the extent issuance of such Stock would be prohibited or
unreasonably delayed by reason of any other provision of the Plan.

      10.2. Violation of Law. Notwithstanding any other provision of the Plan or
the relevant Award Agreement, if, at any time, in the reasonable opinion of the
Company, the issuance of shares of Stock covered by an Award may constitute a
violation of law, then the Company may delay such issuance and the delivery of a
certificate for such shares until (i) approval shall have been obtained from
such governmental agencies, other than the Securities and Exchange Commission,
as may be required under any applicable law, rule, or regulation and (ii) in the
case where such issuance would constitute a violation of a law administered by
or a regulation of the Securities and Exchange Commission, one of the following
conditions shall have been satisfied:

            (a) the shares are at the time of the issue of such shares
effectively registered under the Securities Act of 1933; or

            (b) the Company shall have determined, on such basis as it deems
appropriate (including an opinion of counsel in form and substance satisfactory
to the Company) that the sale, transfer, assignment, pledge, encumbrance or
other disposition of such shares or such beneficial interest, as the case may
be, does not require registration under the Securities Act of 1933, as amended
or any applicable state securities laws.

The Company shall make all reasonable efforts to bring about the occurrence of
said events.

                                      -15-
<PAGE>

      10.3. Corporate Restrictions on Rights in Stock. Any Stock to be issued
pursuant to Awards granted under the Plan shall be subject to all restrictions
upon the transfer thereof which may be now or hereafter imposed by the charter,
certificate or articles, and by-laws, of the Company. Whenever Stock is to be
issued pursuant to an Award, if the Committee so directs at or after grant, the
Company shall be under no obligation to issue such shares until such time, if
ever, as the recipient of the Award (and any person who exercises any Option, in
whole or in part), shall have become a party to and bound by the Stockholders'
Agreement, if any. In the event of any conflict between the provisions of this
Plan and the provisions of the Stockholders' Agreement, the provisions of the
Stockholders' Agreement shall control except as required to fulfill the
intention that this Plan constitute an incentive stock option plan within the
meaning of Section 422 of the Code, but insofar as possible the provisions of
the Plan and such Agreement shall be construed so as to give full force and
effect to all such provisions.

      10.4. Investment Representations. The Company shall be under no obligation
to issue any shares covered by any Award unless the shares to be issued pursuant
to Awards granted under the Plan have been effectively registered under the
Securities Act of 1933, as amended, or the Participant shall have made such
written representations to the Company (upon which the Company believes it may
reasonably rely) as the Company may deem necessary or appropriate for purposes
of confirming that the issuance of such shares will be exempt from the
registration requirements of that Act and any applicable state securities laws
and otherwise in compliance with all applicable laws, rules and regulations,
including but not limited to that the Participant is acquiring the shares for
his or her own account for the purpose of investment and not with a view to, or
for sale in connection with, the distribution of any such shares.

      10.5. Registration. If the Company shall deem it necessary or desirable to
register under the Securities Act of 1933, as amended or other applicable
statutes any shares of Stock issued or to be issued pursuant to Awards granted
under the Plan, or to qualify any such shares of Stock for exemption from the
Securities Act of 1933, as amended or other applicable statutes, then the
Company shall take such action at its own expense. The Company may require from
each recipient of an Award, or each holder of shares of Stock acquired pursuant
to the Plan, such information in writing for use in any registration statement,
prospectus, preliminary prospectus or offering circular as is reasonably
necessary for that purpose and may require reasonable indemnity to the Company
and its officers and directors from that holder against all losses, claims,
damage and liabilities arising from use of the information so furnished and
caused by any untrue statement of any material fact therein or caused by the
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
under which they were made. In addition, the Company may require of any such
person that he or she agree that, without the prior written consent of the
Company or the managing underwriter in any public offering of shares of Stock,
he or she will not sell, make any short sale of, loan, grant any option for the
purchase of, pledge or otherwise encumber, or otherwise dispose of, any shares
of Stock during the 180 day period commencing on the effective date of the
registration statement relating to the underwritten public offering of
securities. Without limiting the generality of the foregoing provisions of this
Section 10.5, if in connection with any underwritten public offering of
securities of the Company the managing underwriter of such offering requires
that the Company's directors and officers enter into a lock-up agreement
containing provisions that are more restrictive than the provisions set forth in
the preceding sentence, then (a) each holder of shares of Stock acquired
pursuant to the Plan (regardless of whether such person has complied or complies
with the provisions of clause (b) below) shall be bound by, and shall be deemed
to have agreed to, the same lock-up terms as those to which the

                                      -16-
<PAGE>

Company's directors and officers are required to adhere; and (b) at the request
of the Company or such managing underwriter, each such person shall execute and
deliver a lock-up agreement in form and substance equivalent to that which is
required to be executed by the Company's directors and officers.

      10.6. Placement of Legends; Stop Orders; Etc. Each share of Stock to be
issued pursuant to Awards granted under the Plan may bear a reference to the
investment representation made in accordance with Section 10.4 in addition to
any other applicable restriction under the Plan, the terms of the Award and if
applicable under the Stockholders' Agreement and to the fact that no
registration statement has been filed with the Securities and Exchange
Commission in respect to such shares of Stock. All certificates for shares of
Stock or other securities delivered under the Plan shall be subject to such
stock transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations, and other requirements of any stock exchange upon
which the Stock is then listed, and any applicable federal or state securities
law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

      10.7. Tax Withholding. Whenever shares of Stock are issued or to be issued
pursuant to Awards granted under the Plan, the Company shall have the right to
require the recipient to remit to the Company an amount sufficient to satisfy
federal, state, local or other withholding tax requirements if, when, and to the
extent required by law (whether so required to secure for the Company an
otherwise available tax deduction or otherwise) prior to the delivery of any
certificate or certificates for such shares. The obligations of the Company
under the Plan shall be conditional on satisfaction of all such withholding
obligations and the Company shall, to the extent permitted by law, have the
right to deduct any such taxes from any payment of any kind otherwise due to the
recipient of an Award. However, in such cases Participants may elect, subject to
the approval of the Committee, acting in its sole discretion, to satisfy an
applicable withholding requirement, in whole or in part, by having the Company
withhold shares to satisfy their tax obligations. Participants may only elect to
have Shares withheld having a Market Value on the date the tax is to be
determined equal to the minimum statutory total tax which could be imposed on
the transaction. All elections shall be irrevocable, made in writing, signed by
the Participant, and shall be subject to any restrictions or limitations that
the Committee deems appropriate.

11. RESERVATION OF STOCK

      The Company shall at all times during the term of the Plan and any
outstanding Awards granted hereunder reserve or otherwise keep available such
number of shares of Stock as will be sufficient to satisfy the requirements of
the Plan (if then in effect) and the Awards and shall pay all fees and expenses
necessarily incurred by the Company in connection therewith.

12. LIMITATION OF RIGHTS IN STOCK; NO SPECIAL SERVICE RIGHTS

      A Participant shall not be deemed for any purpose to be a stockholder of
the Company with respect to any of the shares of Stock subject to an Award,
unless and until a certificate shall have been issued therefor and delivered to
the Participant or his agent. Any Stock to be issued pursuant to Awards granted
under the Plan shall be subject to all restrictions upon the transfer thereof
which may be now or hereafter imposed by the Certificate of Incorporation and
the By-laws of the Company. Nothing contained in the Plan or in any Award
Agreement shall confer upon any recipient of an Award any right with respect to
the continuation of his or her

                                      -17-
<PAGE>

employment or other association with the Company (or any Affiliate), or
interfere in any way with the right of the Company (or any Affiliate), subject
to the terms of any separate employment or consulting agreement or provision of
law or corporate articles or by-laws to the contrary, at any time to terminate
such employment or consulting agreement or to increase or decrease, or otherwise
adjust, the other terms and conditions of the recipient's employment or other
association with the Company and its Affiliates.

13. UNFUNDED STATUS OF PLAN

      The Plan is intended to constitute an "unfunded" plan for incentive
compensation, and the Plan is not intended to constitute a plan subject to the
provisions of the Employee Retirement Income Security Act of 1974, as amended.
With respect to any payments not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are
greater than those of a general creditor of the Company. In its sole discretion,
the Committee may authorize the creation of trusts or other arrangements to meet
the obligations created under the Plan to deliver Stock or payments with respect
to Options, Stock Appreciation Rights and other Awards hereunder, provided,
however, that the existence of such trusts or other arrangements is consistent
with the unfunded status of the Plan.

14. NONEXCLUSIVITY OF THE PLAN

      Neither the adoption of the Plan by the Board nor the submission of the
Plan to the stockholders of the Company shall be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including without limitation, the granting of stock
options and restricted stock other than under the Plan, and such arrangements
may be either applicable generally or only in specific cases.

15. TERMINATION AND AMENDMENT

      15.1. Termination or Amendment of the Plan. The Board may at any time
terminate the Plan or make such modifications of the Plan as it shall deem
advisable. Unless the Board otherwise expressly provides, no amendment of the
Plan shall affect the terms of any Award outstanding on the date of such
amendment.

      15.2. Termination or Amendment of Outstanding Awards. The Committee may
amend the terms of any Award theretofore granted, prospectively or
retroactively, provided that the Award as amended is consistent with the terms
of the Plan. Also within the limitations of the Plan, the Committee may modify,
extend or assume outstanding Awards or may accept the cancellation of
outstanding Awards or of outstanding stock options or other equity-based
compensation awards granted by another issuer in return for the grant of new
Awards for the same or a different number of shares and on the same or different
terms and conditions (including but not limited to the exercise price of any
Option). Furthermore, the Committee may at any time (a) offer to buy out for a
payment in cash or cash equivalents an Award previously granted or (b) authorize
the recipient of an Award to elect to cash out an Award previously granted, in
either case at such time and based upon such terms and conditions as the
Committee shall establish.

      15.3. Limitations on Amendments, Etc. No amendment or modification of any
outstanding Option shall be made that has the effect of reducing the exercise
price of any Option (except for any adjustments of the type permitted under
Section 8), and no amendment or modification of the Plan shall be made that
increases the total number of shares of Stock reserved

                                      -18-
<PAGE>

for issuance pursuant to Awards granted under the Plan (except pursuant to
Section 4), materially modifies the requirements as to eligibility for
participation in the Plan, expands the types of Awards available under the Plan,
materially extends the term of the Plan, or materially increases the benefits
accruing under the Plan, unless in any such case the change is authorized by the
shareholders of the Company or the Committee determines that no such shareholder
approval is required under any applicable law, regulation or rule of a stock
exchange applicable to the Plan. No amendment or modification of the Plan by the
Board or any outstanding Award by the Committee shall impair the rights of the
recipient of any Award outstanding on the date of such amendment or modification
or such Award, as the case may be, without the Participant's consent; provided,
however, that no such consent shall be required if (i) the Board or Committee,
as the case may be, determines in its sole discretion and prior to the date of
any Change of Control that such amendment or alteration either is required or
advisable in order for the Company, the Plan or the Award to satisfy any law or
regulation, including without limitation the provisions of Section 409A of the
Code, or to meet the requirements of or avoid adverse financial accounting
consequences under any accounting standard, or (ii) the Board or Committee, as
the case may be, determines in its sole discretion and prior to the date of any
Change of Control that such amendment or alteration is not reasonably likely to
significantly diminish the benefits provided under the Award, or that any such
diminution has been adequately compensated.

16. NOTICES AND OTHER COMMUNICATIONS

         Any notice, demand, request or other communication hereunder to any
party shall be deemed to be sufficient if contained in a written instrument
delivered in person or duly sent by first class registered, certified or
overnight mail, postage prepaid, or telecopied with a confirmation copy by
regular, certified or overnight mail, addressed or telecopied, as the case may
be, (i) if to the recipient of an Award, at his or her residence address last
filed with the Company and (ii) if to the Company, at its principal place of
business, addressed to the attention of its Treasurer, or to such other address
or telecopier number, as the case may be, as the addressee may have designated
by notice to the addressor. All such notices, requests, demands and other
communications shall be deemed to have been received: (i) in the case of
personal delivery, on the date of such delivery; (ii) in the case of mailing,
when received by the addressee; and (iii) in the case of facsimile transmission,
when confirmed by facsimile machine report.

17. GOVERNING LAW

      The Plan and all Award Agreements and actions taken thereunder shall be
governed, interpreted and enforced in accordance with the laws of the State of
Delaware, without regard to the conflict of laws principles thereof.

                                      -19-

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