Document:

New
      Motion, Inc.

     

    2005
      Stock
      Incentive Plan

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      1:
      GENERAL PURPOSE OF PLAN

     

    The
      name
      of this plan is the New Motion, Inc. 2005 Stock Incentive Plan (the
“Plan”).
      The
      purpose of the Plan is to enable New Motion, Inc., a Delaware corporation (the
      “Company”),
      and
      any Parent or any Subsidiary to obtain and retain the services of the types
      of
      Employees, Consultants and Directors who will contribute to the Company’s long
      range success and to provide incentives which are linked directly to increases
      in share value which will inure to the benefit of all stockholders of the
      Company.

     

    SECTION
      2:
      DEFINITIONS

     

    For
      purposes of the Plan, the following terms shall be defined as set forth
      below:

     

    “Administrator”
shall
      have the meaning as set forth in Section
      3,
      hereof.

     

    “Board”
means
      the Board of Directors of the Company.

     

    “Cause”
means
      (i) failure by an Eligible Person to substantially perform his or her duties
      and
      obligations to the Company (other than any such failure resulting from his
      or
      her incapacity due to physical or mental illness); (ii) engaging in misconduct
      or a fiduciary breach which is or potentially is materially injurious to the
      Company or its stockholders; (iii) commission of a felony; (iv) the commission
      of a crime against the Company which is or potentially is materially injurious
      to the Company; or (v) as otherwise provided in the Stock Option Agreement
      or
      Stock Purchase Agreement. For purposes of this Plan, the existence of Cause
      shall be determined by the Administrator in its sole discretion.

     

    “Change
      in Control”
shall
      mean:

     

    (1) The
      consummation of a merger or consolidation of the Company with or into another
      entity or any other corporate reorganization, if more than fifty percent (50%)
      of the combined voting power (which voting power shall be calculated by assuming
      the conversion of all equity securities convertible (immediately or at some
      future time) into shares entitled to vote, but not assuming the exercise of
      any
      warrant or right to subscribe to or purchase those shares) of the continuing
      or
      Surviving Entity’s securities outstanding immediately after such merger,
      consolidation or other reorganization is owned, directly or indirectly, by
      persons who were not stockholders of the Company immediately prior to such
      merger, consolidation or other reorganization; provided,
      however,
      that in
      making the determination of ownership by the stockholders of the Company,
      immediately after the reorganization, equity securities which persons own
      immediately before the reorganization as stockholders of another party to the
      transaction shall be disregarded; or

     

    (2) The
      sale,
      transfer or other disposition of all or substantially all of the Company’s
      assets.

     

    A
      transaction shall not constitute a Change in Control if its sole purpose is
      to
      change the state of the Company’s incorporation or to create a holding company
      that will be owned in substantially the same proportions by the persons who
      held
      the Company’s securities immediately before such transaction.

     

    
      
        
        

      

      
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    “Code”
means
      the Internal Revenue Code of 1986, as amended from time to time.

     

    “Committee”
means
      a
      committee of the Board designated by the Board to administer the
      Plan.

     

    “Company”
means
      New Motion, Inc., a corporation organized under the laws of the State of
      Delaware (or any successor corporation).

     

    “Consultant”
means
      a
      consultant or advisor who is a natural person and who provides bona
      fide
      services
      to the Company, a Parent or a Subsidiary; provided such services are not in
      connection with the offer or sale of securities in a capital-raising transaction
      and do not directly or indirectly promote or maintain a market for the Company’s
      securities.

     

    “Date
      of Grant”
means
      the date on which the Administrator adopts a resolution expressly granting
      a
      Right to a Participant or, if a different date is set forth in such resolution
      as the Date of Grant, then such date as is set forth in such
      resolution.

     

    “Director”
means
      a
      member of the Board.

     

    “Disability”
means
      that the Optionee is unable to engage in any substantial gainful activity by
      reason of any medically determinable physical or mental impairment; provided,
      however,
      for
      purposes of determining the term of an ISO pursuant to Section
      6.6
      hereof,
      the term Disability shall have the meaning ascribed to it under Code Section
      22(e)(3). The determination of whether an individual has a Disability shall
      be
      determined under procedures established by the Plan Administrator.

     

    “Eligible
      Person”
means
      an Employee, Consultant or Director of the Company, any Parent or any
      Subsidiary.

     

    “Employee”
      shall
      mean any individual who is a common-law employee (including officers) of the
      Company, a Parent or a Subsidiary.

     

    “Exercise
      Price”
      shall
      have the meaning set forth in Section
      6.3
      hereof.

     

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

     

    “Fair
      Market Value”
shall
      mean the fair market value of a share of Stock, determined as follows: (i)
      if
      the Stock is listed on any established stock exchange or a national market
      system, including without limitation the Nasdaq National Market, the Fair Market
      Value of a share of Stock shall be the closing sales price for such stock (or
      the closing bid, if no sales were reported) as quoted on such system or exchange
      (or the exchange with the greatest volume of trading in the 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 Administrator deems reliable; (ii) if the Stock is quoted
      on
      the Nasdaq System (but not on the Nasdaq National Market) or any similar system
      whereby the stock is regularly quoted by a recognized securities dealer but
      closing sale prices are not reported, the Fair Market Value of a share of Stock
      shall be the mean between the bid and asked prices for the 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 Administrator deems reliable; or (iii) in the absence of
      an
      established market for the Stock, the Fair Market Value shall be determined
      in
      good faith by the Administrator and such determination shall be conclusive
      and
      binding on all persons.

     

    
      
        
        

      

      
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    “First
      Refusal Right”
shall
      have the meaning set forth in Section
      8.7
      hereof.

     

    “ISO”
means
      a
      Stock Option intended to qualify as an “incentive stock option” as that term is
      defined in Section 422(b) of the Code.

     

    “Non-Employee
      Director”
      means a
      member of the Board who is not an Employee of the Company, a Parent or
      Subsidiary, who satisfies the requirements of such term as defined in Rule
      16b-3(b)(3)(i)
      promulgated by the Securities and Exchange Commission.

     

    “Non-Qualified
      Stock Option”
means
      a
      Stock Option not described in Section 422(b) of the Code.

     

    “Offeree”
means
      a
      Participant who is granted a Purchase Right pursuant to the Plan.

     

    “Optionee”
means
      a
      Participant who is granted a Stock Option pursuant to the Plan.

     

    “Outside
      Director”
      means a
      member of the Board who is not an Employee of the Company, a Parent or
      Subsidiary, who satisfies the requirements of such term as defined in Treasury
      Regulations (26 Code of Federal Regulation Section 1.162-27(e)(3)).

     

    “Parent”
      means
      any
      corporation (other than the Company) in an unbroken chain of corporations ending
      with the Company, if each of the corporations other than the Company owns stock
      possessing fifty percent (50%) or more of the total combined voting power of
      all
      classes of stock in one of the other corporations in such chain. A corporation
      that attains the status of a Parent on a date after the adoption of the Plan
      shall be considered a Parent commencing as of such date.

     

    “Participant”
means
      any Eligible Person selected by the Administrator, pursuant to the
      Administrator’s authority in Section
      3,
      to
      receive grants of Rights.

     

    “Plan”
means
      this New Motion, Inc. 2005 Stock Incentive Plan, as the same may be amended
      or
      supplemented from time to time.

     

    “Purchase
      Price”
shall
      have the meaning set forth in Section
      7.3.

     

    “Purchase
      Right”
means
      the right to purchase Stock granted pursuant to Section
      7.

     

    “Rights”
means
      Stock Options and Purchase Rights.

     

    “Repurchase
      Right”
shall
      have the meaning set forth in Section
      8.8
      of the
      Plan.

     

    “Service”
shall
      mean service as an Employee, Director or Consultant.

     

    
      
        
        

      

      
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    “Stock”
means
      Common Stock, par value $0.001 per
      share, of the Company.

     

    “Stock
      Option”
or
      “Option”
means
      an option to purchase shares of Stock granted pursuant to Section
      6.

     

    “Stock
      Option Agreement”
shall
      have the meaning set forth in Section
      6.1.

     

    “Stock
      Purchase Agreement”
shall
      have the meaning set forth in Section
      7.1.

     

    “Subsidiary”
means
      any corporation (other than the Company) in an unbroken chain of corporations
      beginning with the Company, if each of the corporations other than the last
      corporation in the unbroken chain owns stock possessing fifty percent (50%)
      or
      more of the total combined voting power of all classes of stock in one of the
      other corporations in such chain. A corporation that attains the status of
      a
      Subsidiary on a date after the adoption of the Plan shall be considered a
      Subsidiary commencing as of such date.

     

    “Surviving
      Entity”
means
      the Company if immediately
      following any merger, consolidation or similar transaction, the holders of
      outstanding voting securities of the Company immediately prior to the merger
      or
      consolidation own equity securities possessing more than fifty percent (50%)
      of
      the voting power of the corporation existing following the merger, consolidation
      or similar transaction. In all other cases, the other entity to the transaction
      and not the Company shall be the Surviving Entity. In making the determination
      of ownership by the stockholders of an entity immediately after the merger,
      consolidation or similar transaction, equity securities which the stockholders
      owned immediately before the merger, consolidation or similar transaction as
      stockholders of another party to the transaction shall be disregarded. Further,
      outstanding voting securities of an entity shall be calculated by assuming
      the
      conversion of all equity securities convertible (immediately or at some future
      time) into shares entitled to vote.

     

    “Ten
      Percent Stockholder”
means
      a
      person who on the Date of Grant owns, either directly or through attribution
      as
      provided in Section 424 of the Code, Stock constituting more than ten percent
      (10%) of the total combined voting power of all classes of stock of his or
      her
      employer corporation or of any Parent or Subsidiary.

     

    SECTION
      3:
      ADMINISTRATION

     

    3.1 Administrator.
      The
      Plan shall be administered by either (i) the Board or (ii) the Committee (the
      group that administers the Plan is referred to as the “Administrator”).

     

    3.2 Powers
      in General.
      The
      Administrator shall have the power and authority to grant to Eligible Persons,
      pursuant to the terms of the Plan, (i) Stock Options, (ii) Purchase Rights
      or
      (iii) any combination of the foregoing.

     

    3.3 Specific
      Powers.
      In
      particular, the Administrator shall have the authority: (i) to construe and
      interpret the Plan and apply its provisions; (ii) to promulgate, amend and
      rescind rules and regulations relating to the administration of the Plan; (iii)
      to authorize any person to execute, on behalf of the Company, any instrument
      required to carry out the purposes of the Plan; (iv) to determine when Rights
      are to be granted under the Plan; (v) from time to time to select, subject
      to
      the limitations set forth in this Plan, those Eligible Persons to whom Rights
      shall be granted; (vi) to determine the number of shares of Stock to be made
      subject to each Right; (vii) to determine whether each Stock Option is to be
      an
      ISO or a Non-Qualified Stock Option; (viii) to prescribe the terms and
      conditions of each Stock Option and Purchase Right, including, without
      limitation, the Exercise Price, Purchase Price and medium of payment, vesting
      provisions and repurchase provisions, and to specify the provisions of the
      Stock
      Option Agreement or Stock Purchase Agreement relating to such grant or sale;
      (ix) to amend any outstanding Rights for the purpose of modifying the time
      or
      manner of vesting, the Purchase Price or Exercise Price, as the case may be,
      subject to applicable legal restrictions and to the consent of the other party
      to such agreement; (x) to determine the duration and purpose of leaves of
      absences which may be granted to a Participant without constituting termination
      of their employment for purposes of the Plan; (xi) to make decisions with
      respect to outstanding Stock Options that may become necessary upon a change
      in
      corporate control or an event that triggers anti-dilution adjustments; (xii)
      by
      resolution adopted by the Board, to authorize one or more officers of the
      Company to do one or both of the following: (a) designate eligible officers
      and
      employees of the Company or any of its subsidiaries to be recipients of Rights
      and (b) determine the number of such Rights to be received by such officers
      and
      employees, provided that the resolution so authorizing such officer or officers
      shall specify the total number of Rights such officer or officers may award;
      and
      (xiii) to make any and all other determinations which it determines to be
      necessary or advisable for administration of the Plan.

     

    
      
        
        

      

      
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    3.4 Decisions
      Final.
      All
      decisions made by the Administrator pursuant to the provisions of the Plan
      shall
      be final and binding on the Company and the Participants.

     

    3.5 The
      Committee.
      The
      Board may, in its sole and absolute discretion, from time to time, and at any
      period of time during which the Company’s Stock is registered pursuant to
      Section 12 of the Exchange Act shall, delegate any or all of its duties and
      authority with respect to the Plan to the Committee whose members are to be
      appointed by and to serve at the pleasure of the Board. From time to time,
      the
      Board may increase or decrease the size of the Committee, add additional members
      to, remove members (with or without cause) from, appoint new members in
      substitution therefor, and fill vacancies, however caused, in the Committee.
      The
      Committee shall act pursuant to a vote of the majority of its members or, in
      the
      case of a committee comprised of only two members, the unanimous consent of
      its
      members, whether present or not, or by the unanimous written consent of the
      majority of its members and minutes shall be kept of all of its meetings and
      copies thereof shall be provided to the Board. Subject to the limitations
      prescribed by the Plan and the Board, the Committee may establish and follow
      such rules and regulations for the conduct of its business as it may determine
      to be advisable. During any period of time during which the Company’s Stock is
      registered pursuant to Section 12 of the Exchange Act, all members of the
      Committee shall be Non-Employee Directors and Outside Directors.

     

    3.6 Indemnification.
      In
      addition to such other rights of indemnification as they may have as Directors
      or members of the Committee, and to the extent allowed by applicable law, the
      Administrator and each of the Administrator’s consultants shall be indemnified
      by the Company against the reasonable expenses, including attorney’s fees,
      actually incurred in connection with any action, suit or proceeding or in
      connection with any appeal therein, to which the Administrator or any of its
      consultants may be party by reason of any action taken or failure to act under
      or in connection with the Plan or any option granted under the Plan, and against
      all amounts paid by the Administrator or any of its consultants in settlement
      thereof (provided that the settlement has been approved by the Company, which
      approval shall not be unreasonably withheld) or paid by the Administrator or
      any
      of its consultants in satisfaction of a judgment in any such action, suit or
      proceeding, except in relation to matters as to which it shall be adjudged
      in
      such action, suit or proceeding that such Administrator or any of its
      consultants did not act in good faith and in a manner which such person
      reasonably believed to be in the best interests of the Company, and in the
      case
      of a criminal proceeding, had no reason to believe that the conduct complained
      of was unlawful; provided,
      however,
      that
      within sixty (60) days after institution of any such action, suit or proceeding,
      such Administrator or any of its consultants shall, in writing, offer the
      Company the opportunity at its own expense to handle and defend such action,
      suit or proceeding. 

     

    
      
        
        

      

      
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    SECTION
      4:
      STOCK SUBJECT TO THE PLAN

     

    4.1 Stock
      Subject to the Plan.
      Subject
      to adjustment as provided in Section
      9,
      1,000,000 shares
      of
      Stock shall be reserved and available for issuance under the Plan. Stock
      reserved hereunder may consist, in whole or in part, of authorized and unissued
      shares or treasury shares. 

     

    4.2 Basic
      Limitation.
      There
      shall be no maximum number of shares with respect to which Options, awards
      or
      sales of Stock may be granted under the Plan to any Participant in any one
      calendar year. The number of shares that are subject to Rights under the Plan
      shall not exceed the number of shares that then remain available for issuance
      under the Plan. The Company, during the term of the Plan, shall at all times
      reserve and keep available a sufficient number of shares to satisfy the
      requirements of the Plan.

     

    4.3 Additional
      Shares.
      In the
      event that any outstanding Option or other right for any reason expires or
      is
      canceled or otherwise terminated, the shares allocable to the unexercised
      portion of such Option or other right shall again be available for the purposes
      of the Plan. In the event that shares issued under the Plan are reacquired
      by
      the Company pursuant to the terms of any forfeiture provision, right of
      repurchase or right of first refusal, such shares shall again be available
      for
      the purposes of the Plan.

     

    SECTION
      5:
      ELIGIBILITY

     

    Eligible
      Persons who are selected by the Administrator shall be eligible to be granted
      Rights hereunder subject to limitations set forth in this Plan; provided,
      however,
      that
      only Employees shall be eligible to be granted ISOs hereunder.

     

    SECTION
      6:
      TERMS AND CONDITIONS OF OPTIONS.

     

    6.1 Stock
      Option Agreement.
      Each
      grant of an Option under the Plan shall be evidenced by a Stock Option Agreement
      between the Optionee and the Company (the “Stock
      Option Agreement”).
      Such
      Option shall be subject to all applicable terms and conditions of the Plan
      and
      may be subject to any other terms and conditions which are not inconsistent
      with
      the Plan and which the Administrator deems appropriate for inclusion in a Stock
      Option Agreement. The provisions of the various Stock Option Agreements entered
      into under the Plan need not be identical.

     

    
      
        
        

      

      
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    6.2 Number
      of Shares.
      Each
      Stock Option Agreement shall specify the number of shares of Stock that are
      subject to the Option and shall provide for the adjustment of such number in
      accordance with Section
      9,
      hereof.
      The Stock Option Agreement shall also specify whether the Option is an ISO
      or a
      Non-Qualified Stock Option.

     

    6.3 Exercise
      Price.

     

    6.3.1 In
      General.
      Each
      Stock Option Agreement shall state the price at which shares subject to the
      Stock Option may be purchased (the “Exercise
      Price”),
      which
      shall be not less than one hundred percent (100%) of the Fair Market Value
      of
      the Stock on the Date of Grant. 

     

    6.3.2 Ten
      Percent Stockholder.
      A Ten
      Percent Stockholder shall not be eligible for designation as an Optionee unless
      (i) the Exercise Price of a Non-Qualified Stock Option is at least one hundred
      ten percent (110%) of the Fair Market Value of a Share on the Date of Grant,
      or
      (ii) in the case of an ISO, the Exercise Price is at least one hundred ten
      percent 110% of the Fair Market Value of a Share on the Date of Grant and such
      ISO by its terms is not exercisable after the expiration of five (5) years
      from
      the Date of Grant.

     

    6.3.3 Non-Applicability.
      The
      Exercise Price restriction applicable to Non-Qualified Stock Options required
      by
Section
      6.3.2(i)
      shall be
      inoperative if (i) the shares to be issued upon payment of the Exercise Price
      have been registered under a then currently effective registration statement
      under applicable federal securities laws and the issuer is subject to the
      reporting requirements of Section 13 or 15(d) of the Exchange Act or becomes
      an
      investment company registered or required to be registered under the Investment
      Company Act of 1940, or (ii) a determination is made by counsel for the Company
      that such Exercise Price restrictions are not required in the circumstances
      under applicable federal or state securities laws. 

     

    6.3.4 Payment.
      The
      Exercise Price shall be payable in a form described in Section
      8
      hereof.

     

    6.4 Withholding
      Taxes.
      As a
      condition to the exercise of an Option, the Optionee shall make such
      arrangements as the Board may require for the satisfaction of any federal,
      state, local or foreign withholding tax obligations that may arise in connection
      with such exercise or with the disposition of shares acquired by exercising
      an
      Option.

     

    6.5 Exercisability.
      Each
      Stock Option Agreement shall specify the date when all or any installment of
      the
      Option becomes exercisable. In the case of an Optionee who is not an officer
      of
      the Company, a Director or a Consultant, an Option shall become exercisable
      at
      least as rapidly as twenty percent (20%) per year over the five (5)-year period
      commencing on the Date of Grant until such time as when the Company’s securities
      become publicly traded. Subject to the preceding sentence, the exercise
      provisions of any Stock Option Agreement shall be determined by the
      Administrator, in its sole discretion. 

     

    
      
        
        

      

      
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    6.6 Term.
      The
      Stock Option Agreement shall specify the term of the Option. No Option shall
      be
      exercised after the expiration of ten (10) years after the date the Option
      is
      granted. In the case of an ISO
      granted
      to a Ten Percent Stockholder, the ISO shall not be exercised after the
      expiration of five (5) years after the date the ISO is granted. Unless otherwise
      provided in the Stock Option Agreement, no Option may be exercised more than
      (i)
      three (3) months after the date the Optionee’s Service with the Company, its
      Parent or its Subsidiaries terminates if such termination is for any reason
      other than death, Disability or Cause, and (ii) one (1) year after the date
      the
      Optionee’s Service with the Company and its subsidiaries terminates if such
      termination is a result of death or Disability. If the Optionee’s Service with
      the Company and its Subsidiaries terminates for Cause, all outstanding Options
      granted to such Optionee shall expire as of the commencement of business on
      the
      date of such termination. The Administrator may, in its sole discretion, waive
      the accelerated expiration provided for in (i) or (ii). Outstanding Options
      that
      are not vested at the time of termination of employment for any reason shall
      expire at the close of business on the date of such termination. 

     

    6.7 Leaves
      of Absence.
      For
      purposes of Section
      6.6
      above,
      to the extent required by applicable law, Service shall be deemed to continue
      while the Optionee is on a bona
      fide
      leave of
      absence. To the extent applicable law does not require such a leave to be deemed
      to continue while the Optionee is on a bona
      fide
      leave of
      absence, such leave shall be deemed to continue if, and only if, expressly
      provided in writing by the Administrator or a duly authorized officer of the
      Company, Parent or Subsidiary for whom Optionee provides his or her
      services.

     

    6.8 Modification,
      Extension and Assumption of Options.
      Within
      the limitations of the Plan, the Administrator may modify, extend or assume
      outstanding Options (whether granted by the Company or another issuer) or may
      accept the cancellation of outstanding Options (whether granted by the Company
      or another issuer) in return for the grant of new Options for the same or a
      different number of shares and at the same or a different Exercise Price.
      Without limiting the foregoing, the Administrator may amend a previously granted
      Option to fully accelerate the exercise schedule of such Option (including
      without limitation, in connection with a Change in Control) and provide that
      upon the exercise of such Option, the Optionee shall receive shares of
      restricted Stock that are subject to repurchase by the Company at the Exercise
      Price paid for the Option with such Company’s right to repurchase at such price
      lapsing at the same rate as the exercise provisions set forth in Optionee’s
      Stock Option Agreement. The foregoing notwithstanding, no modification of an
      Option shall, without the consent of the Optionee, impair the Optionee’s rights
      or increase the Optionee’s obligations under such Option. However, a termination
      of the Option in which the Optionee receives a cash payment equal to the
      difference between the Fair Market Value and the Exercise Price for all shares
      subject to exercise under any outstanding Option shall not be deemed to impair
      any rights of the Optionee or increase the Optionee’s obligations under such
      Option.

     

    SECTION
      7:
      TERMS
      AND CONDITIONS OF AWARDS OR SALES

     

    7.1 Stock
      Purchase Agreement.
      Each
      award or sale of shares of Stock under the Plan (other than upon exercise of
      an
      Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser
      and the Company. Such award or sale shall be subject to all applicable terms
      and
      conditions of the Plan and may be subject to any other terms and conditions
      which are not inconsistent with the Plan and which the Board deems appropriate
      for inclusion in a Stock Purchase Agreement. The provisions of the various
      Stock
      Purchase Agreements entered into under the Plan need not be
      identical.

     

    
      
        
        

      

      
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    7.2 Duration
      of Offers.
      Unless
      otherwise provided in the Stock Purchase Agreement, any right to acquire shares
      of Stock under the Plan (other than an Option) shall automatically expire if
      not
      exercised by the Purchaser within thirty (30) days after the grant of such
      right
      was communicated to the Purchaser by the Company. 

     

    7.3 Purchase
      Price.

     

    7.3.1 In
      General.
      Each
      Stock Purchase Agreement shall state the price at which the Stock subject to
      such Stock Purchase Agreement may be purchased (the “Purchase
      Price”),
      which, with respect to Stock Purchase Rights, shall be determined in the sole
      discretion of the Administrator; provided,
      however,
      that
      the Purchase Price shall be no less than one-hundred (100%) of the Fair Market
      Value of the shares of Stock on either the Date of Grant or the date of purchase
      of the Purchase Right.

     

    7.3.2 Ten
      Percent Stockholders.
      A Ten
      Percent Stockholder shall not be eligible for designation as a Purchaser unless
      the Purchase Price (if any) is at least one hundred ten percent (110%) of the
      Fair Market Value of a share of Stock.

     

    7.3.3 Non
      Applicability.
      The
      Purchase Price restrictions required by Sections
      7.3.1
      and
7.3.2
      shall be
      inoperative if (i) the shares to be issued upon payment of the Purchase Price
      have been registered under a then currently effective registration statement
      under applicable federal securities laws and the issuer is subject to the
      reporting requirements of Section 13 or 15(d) of the Exchange Act or becomes
      an
      investment company registered or required to be registered under the Investment
      Company Act of 1940, or (ii) a determination is made by counsel for the Company
      that such Purchase Price restrictions are not required in the circumstances
      under applicable federal or state securities laws.

     

    7.3.4 Payment
      of Purchase Price.
      The
      Purchase Price shall be payable in a form described in Section
      8.

     

    7.4 Withholding
      Taxes.
      As a
      condition to the purchase of shares, the Purchaser shall make such arrangements
      as the Board may require for the satisfaction of any federal, state, local
      or
      foreign withholding tax obligations that may arise in connection with such
      purchase.

     

    SECTION
      8
      : PAYMENT;
      RESTRICTIONS

     

    8.1 General
      Rule.
      The
      entire Purchase Price or Exercise Price of shares issued under the Plan shall
      be
      payable in full by, as applicable, cash or check for an amount equal to the
      aggregate Purchase Price or Exercise Price for the number of shares being
      purchased, or in the discretion of the Administrator, upon such terms as the
      Administrator shall approve, (i) in the case of an Option, by a copy of
      instructions to a broker directing such broker to sell the Stock for which
      such
      Option is exercised, and to remit to the Company the aggregate Exercise Price
      of
      such Options (a “cashless
      exercise”),
      (ii)
      in the case of an Option or a sale of Stock, by paying all or a portion of
      the
      Exercise Price or Purchase Price for the number of shares being purchased by
      tendering Stock owned by the Optionee, duly endorsed for transfer to the
      Company, with a Fair Market Value on the date of delivery equal to the aggregate
      Purchase Price of the Stock with respect to which such Option or portion thereof
      is thereby exercised or Stock acquired (a “stock-for-stock
      exercise”)
      or
      (iii) by a stock-for-stock exercise by means of attestation whereby the Optionee
      identifies for delivery specific shares of Stock already owned by Optionee
      and
      receives a number of shares of Stock equal to the difference between the Option
      shares thereby exercised and the identified attestation shares of Stock (an
      “attestation
      exercise”).

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    8.2 Withholding
      Payment.
      The
      Purchase Price or Exercise Price shall include payment of the amount of all
      federal, state, local or other income, excise or employment taxes subject to
      withholding (if any) by the Company or any parent or subsidiary corporation
      as a
      result of the exercise of a Stock Option. The Optionee may pay all or a portion
      of the tax withholding by cash or check payable to the Company, or, at the
      discretion of the Administrator, upon such terms as the Administrator shall
      approve, by (i) cashless exercise or attestation exercise; (ii) stock-for-stock
      exercise; (iii) in the case of an Option, by paying all or a portion of the
      tax
      withholding for the number of shares being purchased by withholding shares
      from
      any transfer or payment to the Optionee (“Stock
      Withholding”);
      or
      (iv) a combination of one or more of the foregoing payment methods. Any shares
      issued pursuant to the exercise of an Option and transferred by the Optionee
      to
      the Company for the purpose of satisfying any withholding obligation shall
      not
      again be available for purposes of the Plan. The Fair Market Value of the number
      of shares subject to Stock Withholding shall not exceed an amount equal to
      the
      applicable minimum required tax withholding rates.

     

    8.3 Services
      Rendered.
      At the
      discretion of the Administrator, shares of Stock may be awarded under the Plan
      in consideration of services rendered to the Company, a Parent or a Subsidiary
      prior to the award.

     

    8.4 Promissory
      Note.
      To the
      extent that a Stock Option Agreement or Stock Purchase Agreement so provides,
      in
      the discretion of the Administrator, upon such terms as the Administrator shall
      approve, all or a portion of the Exercise Price or Purchase Price (as the case
      may be) of shares issued under the Plan may be paid with a full-recourse
      promissory note; provided,
      however,
      that
      payment of any portion of the Exercise Price by promissory note shall not be
      permitted where such loan would be prohibited by applicable laws, regulations
      and rules of the Securities and Exchange Commission and any other governmental
      agency having jurisdiction. However, in the event there is a stated par value
      of
      the shares and applicable law requires, the par value of the shares, if newly
      issued, shall be paid in cash or cash equivalents. The shares shall be pledged
      as security for payment of the principal amount of the promissory note and
      interest thereon. The interest rate payable under the terms of the promissory
      note shall not be less than the minimum rate (if any) required to avoid the
      imputation of additional interest under the Code. Subject to the foregoing,
      the
      Administrator (at its sole discretion) shall specify the term, interest rate,
      amortization requirements (if any) and other provisions of such note. Unless
      the
      Administrator determines otherwise, shares of Stock having a Fair Market Value
      at least equal to the principal amount of the loan shall be pledged by the
      holder to the Company as security for payment of the unpaid balance of the
      loan
      and such pledge shall be evidenced by a pledge agreement, the terms of which
      shall be determined by the Administrator, in its discretion; provided,
      however,
      that
      each loan shall comply with all applicable laws, regulations and rules of the
      Board of Governors of the Federal Reserve System and any other governmental
      agency having jurisdiction.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    8.5 Exercise/Pledge.
      To the
      extent that a Stock Option Agreement or Stock Purchase Agreement so allows
      and
      if Stock is publicly traded, in the discretion of the Administrator, upon such
      terms as the Administrator shall approve, payment may be made all or in part
      by
      the delivery (on a form prescribed by the Administrator) of an irrevocable
      direction to pledge shares to a securities broker or lender approved by the
      Company, as security for a loan, and to deliver all or part of the loan proceeds
      to the Company in payment of all or part of the Exercise Price and any
      withholding taxes.

     

    8.6 Written
      Notice.
      The
      purchaser shall deliver a written notice to the Administrator requesting that
      the Company direct the transfer agent to issue to the purchaser (or to his
      designee) a certificate for the number of shares of Common Stock being exercised
      or purchased or, in the case of a cashless exercise or share withholding
      exercise, for any shares that were not sold in the cashless exercise or
      withheld.

     

    8.7 First
      Refusal Right.
      Each
      Stock Option Agreement and Stock Purchase Agreement may provide that the Company
      shall have the right of first refusal (the “First
      Refusal Right”),
      exercisable in connection with any proposed sale, hypothecation or other
      disposition of the Stock purchased by the Optionee or Offeree pursuant to a
      Stock Option Agreement or Stock Purchase Agreement; and in the event the holder
      of such Stock desires to accept a bona
      fide
      third-party offer for any or all of such Stock, the Stock shall first be offered
      to the Company upon the same terms and conditions as are set forth in the
bona
      fide
      offer.

     

    8.8 Repurchase
      Rights.
      Each
      Stock Option Agreement and Stock Purchase Agreement may provide that the Company
      may repurchase the Participant’s Rights as provided in this Section
      8.8
      (the
“Repurchase
      Right”).
      

     

    8.8.1 Repurchase
      Price.
      Following
      termination of the Participant’s Service the Repurchase Right shall be
      exercisable at a price equal to (i) the Fair Market Value of vested Stock or,
      in
      the case of vested but unexercised Options, the Fair Market Value of the Stock
      underlying such unexercised Options less the Exercise Price; or (ii) the
      Purchase Price or Exercise Price, as the case may be, of unvested Stock. The
      right to repurchase unvested Stock as described in clause (ii) of the preceding
      sentence shall lapse at least as rapidly as twenty percent (20%) per year over
      the five (5)-year period commencing on the Date of Grant. The Repurchase Right
      shall in all cases be subject to Section
      8.9
      hereof.

     

    8.8.2 Exercise
      of Repurchase Right.
      A
      Repurchase Right may be exercised only within ninety (90) days after the
      termination of the Participant’s Service (or in the case of Stock issued upon
      exercise of an Option or purchased under a Stock Purchase Agreement, in either
      case after the date of termination, within ninety (90) days after the date
      of
      the exercise or Stock purchase, whichever is applicable) for cash or for
      cancellation of indebtedness incurred in purchasing the shares.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    8.9 Termination
      of Repurchase and First Refusal Rights.
      Each
      Stock Option Agreement and Stock Purchase Agreement shall provide that the
      Repurchase Rights and First Refusal Rights shall have no effect with respect
      to,
      or shall lapse and cease to have effect when the issuer’s securities become
      publicly traded or a determination is made by counsel for the Company that
      such
      Repurchase Rights and First Refusal Rights are not permitted under applicable
      federal or state securities laws. 

     

    8.10 No
      Transferability.
      Except
      as provided herein, a Participant may not assign, sell or transfer Rights,
      in
      whole or in part, other than by will or by operation of the laws of descent
      and
      distribution. 

     

    8.10.1 Permitted
      Transfer of Non-Qualified Option.
      The
      Administrator, in its sole discretion may permit the transfer of a Non-Qualified
      Option (but not an ISO or Stock Purchase Right) as follows: (i) by gift to
      a
      member of the Participant’s immediate family or (ii) by transfer by instrument
      to a trust providing that the Option is to be passed to beneficiaries upon
      death
      of the trustor, provided the beneficiaries are members of the Participant’s
      immediate family (either or both (i) or (ii) referred to as a “Permitted
      Transferee”).
      For
      purposes of this Section
      8.10.1,
      “immediate
      family”
shall
      mean the Optionee’s spouse (including a former spouse subject to terms of a
      domestic relations order); child, stepchild, grandchild, child-in-law; parent,
      stepparent, grandparent, parent-in-law; sibling and sibling-in-law, and shall
      include adoptive relationships.

     

    8.10.2 Conditions
      of Permitted Transfer.
      A
      transfer permitted under this Section
      8.10
      hereof
      may be made only upon written notice to and approval thereof by Administrator.
      A
      Permitted Transferee may not further assign, sell or transfer the transferred
      Option, in whole or in part, other than by will or by operation of the laws
      of
      descent and distribution. A Permitted Transferee shall agree in writing to
      be
      bound by the provisions of this Plan and the applicable Stock Option Agreement.
       

     

    SECTION
      9:
      ADJUSTMENTS; MARKET STAND-OFF

     

    9.1 Effect
      of Certain Changes.

     

    9.1.1 Stock
      Dividends, Splits, Etc.
      If
      there is any change in the number of outstanding shares of Stock by reason
      of a
      stock split, reverse stock split, stock dividend, recapitalization, combination
      or reclassification, then (i) the number of shares of Stock available for
      Rights, (ii) the number of shares of Stock covered by outstanding Rights, (iii)
      the Exercise Price or Purchase Price of any Stock Option or Purchase Right
      and
      (iv) the limit set forth in Section
      4.2,
      in
      effect prior to such change, shall be proportionately adjusted by the
      Administrator to reflect any increase or decrease in the number of issued shares
      of Stock; provided,
      however,
      that
      any fractional shares resulting from the adjustment shall be eliminated.

     

    9.1.2 Liquidation,
      Dissolution, Merger or Consolidation.
      In the
      event of a dissolution or liquidation of the Company, or any corporate
      separation or division, including, but not limited to, a split-up, a split-off
      or a spin-off, or a sale of substantially all of the assets of the Company;
      a
      merger or consolidation in which the Company is not the Surviving Entity; a
      reverse merger in which the Company is the Surviving Entity, but the shares
      of
      Company stock outstanding immediately preceding the merger are converted by
      virtue of the merger into other property, whether in the form of securities,
      cash or otherwise; or the transfer of more than eighty percent (80%) of the
      then
      outstanding voting stock of the Company to another person or entity, then,
      the
      Company, to the extent permitted by applicable law, but otherwise in its sole
      discretion may provide for: (i) the continuation of outstanding Rights by the
      Company (if the Company is the Surviving Entity); (ii) the assumption of the
      Plan and such outstanding Rights by the Surviving Entity or its parent; (iii)
      the substitution by the Surviving Entity or its parent of Rights with
      substantially the same terms for such outstanding Rights; or (iv) the
      cancellation of such outstanding Rights without payment of any consideration,
      provided that if such Rights would be canceled in accordance with the foregoing,
      the Participant shall have the right, exercisable during a reasonable period
      prior to such merger or consolidation, to exercise the vested portion of such
      Rights in whole or in part, or, if provided for by the Administrator using
      its
      sole discretion in a notice of cancellation, to exercise such Rights in whole
      or
      in part without regard to any vesting provisions in the Rights agreement, in
      either case contingent upon the closing of the such merger, consolidation or
      other transaction. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    9.1.3 Further
      Adjustments.
      Subject
      to Section
      9.1.2,
      the
      Administrator shall have the discretion, exercisable at any time before a sale,
      merger, consolidation, reorganization, liquidation or Change in Control, to
      take
      such further action as it determines to be necessary or advisable, and fair
      and
      equitable to Participants, with respect to Rights. Such authorized action may
      include (but shall not be limited to) establishing, amending or waiving the
      type, terms, conditions or duration of, or restrictions on, Rights so as to
      provide for earlier, later, extended or additional time for exercise and other
      modifications, and the Administrator may take such actions with respect to
      all
      Participants, to certain categories of Participants or only to individual
      Participants. The Administrator may take such action before or after granting
      Rights to which the action relates and before or after any public announcement
      with respect to such sale, merger, consolidation, reorganization, liquidation
      or
      Change in Control that is the reason for such action.

     

    9.1.4 Par
      Value Changes.
      In the
      event of a change in the Stock of the Company as presently constituted which
      is
      limited to a change of all of its authorized shares with par value, into the
      same number of shares without par value, or a change in the par value, the
      shares resulting from any such change shall be “Stock” within the meaning of the
      Plan.

     

    9.2 Decision
      of Administrator Final.
      To the
      extent that the foregoing adjustments relate to stock or securities of the
      Company, such adjustments shall be made by the Administrator, whose
      determination in that respect shall be final, binding and conclusive;
provided,
      however,
      that
      each ISO granted pursuant to the Plan shall not be adjusted in a manner that
      causes such Stock Option to fail to continue to qualify as an ISO without the
      prior consent of the Optionee thereof.

     

    9.3 No
      Other Rights.
      Except
      as hereinbefore expressly provided in this Section
      9,
      no
      Participant shall have any rights by reason of any subdivision or consolidation
      of shares of Company stock or the payment of any dividend or any other increase
      or decrease in the number of shares of Company stock of any class or by reason
      of any of the events described in Section 9.1,
      above,
      or any other issue by the Company of shares of stock of any class, or securities
      convertible into shares of stock of any class; and, except as provided in this
      Section
      9,
      none of
      the foregoing events shall affect, and no adjustment by reason thereof shall
      be
      made with respect to, the number or price of shares of Stock subject to Rights.
      The grant of a Right pursuant to the Plan shall not affect in any way the right
      or power of the Company to make adjustments, reclassifications, reorganizations
      or changes of its capital or business structures or to merge or to consolidate
      or to dissolve, liquidate or sell, or transfer all or part of its business
      or
      assets.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    9.4 Market
      Stand-Off.
      Each
      Stock Option Agreement and Stock Purchase Agreement shall provide that, in
      connection with any underwritten public offering by the Company of its equity
      securities pursuant to an effective registration statement filed under the
      Securities Act of 1933, as amended, including the Company’s initial public
      offering, the Participant shall agree not to sell, make any short sale of,
      loan,
      hypothecate, pledge, grant any option for the repurchase of, or otherwise
      dispose or transfer for value or otherwise agree to engage in any of the
      foregoing transactions with respect to any Stock without the prior written
      consent of the Company or its underwriters, for such period of time from and
      after the effective date of such registration statement as may be requested
      by
      the Company or such underwriters (the “Market
      Stand-Off”).

     

    SECTION
      10:
      AMENDMENT AND TERMINATION

     

    The
      Board
      may amend, suspend or terminate the Plan at any time and for any reason. At
      the
      time of such amendment, the Board shall determine, upon advice from counsel,
      whether such amendment will be contingent on stockholder approval.

     

    SECTION
      11:
      GENERAL PROVISIONS

     

    11.1 General
      Restrictions.

     

    11.1.1 No
      View to Distribute.
      The
      Administrator may require each person acquiring shares of Stock pursuant to
      the
      Plan to represent to and agree with the Company in writing that such person
      is
      acquiring the shares without a view towards distribution thereof. The
      certificates for such shares may include any legend that the Administrator
      deems
      appropriate to reflect any restrictions on transfer.

     

    11.1.2 Legends.
      All
      certificates for shares of Stock delivered under the Plan shall be subject
      to
      such stop transfer orders and other restrictions as the Administrator may deem
      advisable under the rules, regulations and other requirements of the Securities
      and Exchange Commission, any stock exchange upon which the Stock is then listed
      and any applicable federal or state securities laws, and the Administrator
      may
      cause a legend or legends to be put on any such certificates to make appropriate
      reference to such restrictions.

     

    11.1.3 No
      Rights as Stockholder.
      Except
      as specifically provided in this Plan, a Participant or a transferee of a Right
      shall have no rights as a stockholder with respect to any shares covered by
      the
      Rights until the date of the issuance of a Stock certificate to him or her
      for
      such shares, and no adjustment shall be made for dividends (ordinary or
      extraordinary, whether in cash, securities or other property) or distributions
      of other rights for which the record date is prior to the date such Stock
      certificate is issued, except as provided in Section
      9.1,
      hereof.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    11.2 Other
      Compensation Arrangements.
      Nothing
      contained in this Plan shall prevent the Board from adopting other or additional
      compensation arrangements, subject to stockholder approval if such approval
      is
      required; and such arrangements may be either generally applicable or applicable
      only in specific cases.

     

    11.3 Disqualifying
      Dispositions.
      Any
      Participant who shall make a “disposition”
(as
      defined in Section 424 of the Code) of all or any portion of an ISO within
      two
      years from the date of grant of such ISO or within one year after the issuance
      of the shares of Stock acquired upon exercise of such ISO shall be required
      to
      immediately advise the Company in writing as to the occurrence of the sale
      and
      the price realized upon the sale of such shares of Stock.

     

    11.4 Regulatory
      Matters.
      Each
      Stock Option Agreement and Stock Purchase Agreement shall provide that no shares
      shall be purchased or sold thereunder unless and until (i) any then applicable
      requirements of state or federal laws and regulatory agencies shall have been
      fully complied with to the satisfaction of the Company and its counsel and
      (ii)
      if required to do so by the Company, the Optionee or Offeree shall have executed
      and delivered to the Company a letter of investment intent in such form and
      containing such provisions as the Board or Committee may require.

     

    11.5 Recapitalizations.
      Each
      Stock Option Agreement and Stock Purchase Agreement shall contain provisions
      required to reflect the provisions of Section
      9.

     

    11.6 Delivery.
      Upon
      exercise of a Right granted under this Plan, the Company shall issue Stock
      or
      pay any amounts due within a reasonable period of time thereafter. Subject
      to
      any statutory obligations the Company may otherwise have, for purposes of this
      Plan, thirty days shall be considered a reasonable period of time.

     

    11.7 Other
      Provisions.
      The
      Stock Option Agreements and Stock Purchase Agreements authorized under the
      Plan
      may contain such other provisions not inconsistent with this Plan, including,
      without limitation, restrictions upon the exercise of the Rights, as the
      Administrator may deem advisable. 

     

    SECTION
      12:
      INFORMATION TO PARTICIPANTS

     

    To
      the
      extent necessary to comply with California law, the Company each year shall
      furnish to Participants its balance sheet and income statement unless such
      Participants are limited to key Employees whose duties with the Company assure
      them access to equivalent information. 

     

    SECTION
      13:
      STOCKHOLDERS AGREEMENT

     

    As
      a
      condition to the transfer of Stock pursuant to a Right granted under this Plan,
      the Administrator, in its sole and absolute discretion, may require the
      Participant to execute and become a party to any agreement by and among the
      Company and its stockholders generally which exists on or after the Date of
      Grant (the “Stockholders
      Agreement”).
      If
      the Participant becomes a party to a Stockholders Agreement, in addition to
      the
      terms of this Plan and the Stock Option Agreement or Stock Purchase Agreement
      (whichever is applicable) pursuant to which the Stock is transferred, the terms
      and conditions of Stockholders Agreement shall govern Participant’s rights in
      and to the Stock; and if there is any conflict between the provisions of the
      Stockholders Agreement and this Plan or any conflict between the provisions
      of
      the Stockholders Agreement and the Stock Option Agreement or Stock Purchase
      Agreement (whichever is applicable) pursuant to which the Stock is transferred,
      the provisions of the Stockholders Agreement shall be controlling.
      Notwithstanding anything to the contrary in this Section
      13,
      if the
      Stockholders Agreement contains any provisions which would violate Section
      25102(o) of the California Corporations Code if applied to the Participant,
      the
      terms of this Plan and the Stock Option Agreement or Stock Purchase Agreement
      (whichever is applicable) pursuant to which the Stock is transferred shall
      govern the Participant’s rights with respect to such provisions.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    SECTION
      14:
      EFFECTIVE DATE OF PLAN

     

    The
      effective date of this Plan is as of November 15, 2005. The adoption of the
      Plan
      is subject to approval by the Company’s stockholders, which approval must be
      obtained within twelve (12) months from the date the Plan is adopted by the
      Board. In the event that the stockholders fail to approve the Plan within twelve
      (12) months after its adoption by the Board, any grants of Options or sales
      or
      awards of shares that have already occurred shall be rescinded, and no
      additional grants, sales or awards shall be made thereafter under the Plan.
      

     

    SECTION
      15:
      TERM OF PLAN

     

    The
      Plan
      shall terminate automatically on November 14, 2015, but no later than prior
      to
      the 10th
      anniversary of the effective date. No Right shall be granted pursuant to the
      Plan after such date, but Rights theretofore granted may extend beyond that
      date. The Plan may be terminated on any earlier date pursuant to Section
      10
      hereof.

     

    SECTION
      16:
      EXECUTION.

     

    To
      record
      the adoption of the Plan by the Board, the Company has caused its authorized
      officer to execute the same as of November 15, 2005.

     

    
      	 	 	 
	 
 	 
 	
              New
                Motion, Inc.
 
	 	 	/s/ Scott Walker
	 	
              

              By:
                Scott Walker

              
                Its:
                  Chief Executive Officer

              

            

    

     

    
      
        
        

      

      
        16New
      Motion, Inc.

    

    2005
      STOCK
      OPTION AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Option
        Grant Issued (#)
        ___

    

    NEW
      MOTION, INC.
      2005 Stock Incentive Plan

    Notice
      Of Stock Option Grant

    

    You
      have
      been granted the following option to purchase Common Stock of New Motion, Inc.
      (the “Company”):

     

    
      	
              Name
                of Optionee:

            	____________________________
	 	 
	
              Total
                Number of Shares Granted:

            	____________________________
	 	 
	
              Type
                of Option:

            	
              ISO

            
	 	 
	
              Exercise
                Price Per Share:

            	
              $________

            
	 	 
	
              Date
                of Grant:

            	
              November
                15, 2005

            
	 	 
	
              Vesting
                Commencement Date:

            	
              _______
                __, ____

            
	 	 
	
              Vesting
                Schedule:

            	
              33
                1/3% on the first anniversary of the Vesting Commencement Date, and
                1/24th
                of the remaining shares on the last day of each month thereafter
                until
                fully vested.

            
	 	 
	
              Expiration
                Date:

            	
              10
                years after Date of Grant

            

    

    

     

    By
      your
      signature and the signature of the Company’s representative below, you and the
      Company agree that this option is granted under and governed by the terms and
      conditions of the New Motion, Inc. 2005 Stock Incentive Plan (a copy of which
      has been provided to the Optionee) and the Stock Option Agreement, which is
      attached hereto as Annex I and, both of which are made a part of this document.
      Optionee hereby represents that both the option and any shares acquired upon
      exercise of the option have been or will be acquired for investment for his
      own
      account and not with a view to or for sale in connection with any distribution
      or resale of the security.

     

    

    
      	
              Optionee:

            	
              New
                Motion, Inc.

            
	
               

               

              By:________________________________

               

              Name:_____________________________

            	
               

               

              By:_____________________________________       

               

              Its:_____________________________________      

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ANNEX
      I

     

    

    THE
      OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE
      EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS
      AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN
      EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
      SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    
 

    NEW
      MOTION, INC. 2005
      Stock Incentive Plan:

    Stock
      Option Agreement

    

    

    SECTION
      1:
      GRANT OF OPTION

     

    1.1 Option.
      On the
      terms and conditions set forth in the notice of stock option grant to which
      this
      agreement (the “Agreement”)
      is
      attached (the “Notice
      of Stock Option Grant”)
      and
      this Agreement, the Company grants to the individual named in the Notice of
      Stock Option Grant (the “Optionee”)
      the
      option to purchase at the exercise price specified in the Notice of Stock Option
      Grant (the “Exercise
      Price”)
      the
      number of shares of Stock (the “Shares”)
      set
      forth in the Notice of Stock Option Grant. This option is intended to be either
      an ISO or a Non-Qualified Stock Option, as provided in the Notice of Stock
      Option Grant.

     

    1.2 Stock
      Plan and Defined Terms.
      This
      option is granted pursuant to and subject to the terms of the New Motion, Inc.
      2005 Stock Incentive Plan, as in effect on the date specified in the Notice
      of
      Stock Option Grant (which date shall be the later of (i) the date on which
      the
      Board resolved to grant this option or (ii) the first day of the Optionee’s
      Service) and as amended from time to time (the “Plan”),
      a
      copy of which is attached hereto and which the Optionee acknowledges having
      received. Capitalized terms not otherwise defined in this Agreement have the
      definitions ascribed to them in the Plan.

     

    SECTION
      2:
      RIGHT TO EXERCISE

     

    2.1 Exercisability.
      Subject
      to Sections 2.2
      and
2.3
      below
      and the other conditions set forth in this Agreement, all or part of this option
      may be exercised prior to its expiration at the time or times set forth in
      the
      Notice of Stock Option Grant. 

     

    2.2 $100,000
      Limitation.
      The
      aggregate fair market value (determined at the time the option is granted)
      of
      the Shares with respect to which ISOs are exercisable for the first time during
      any calendar year (under all ISO plans of the Company and its Subsidiaries)
      shall not exceed $100,000. If this option is designated as an ISO in the Notice
      of Stock Option Grant, then to the extent (and only to the extent) the
      Optionee’s right to exercise this option causes this option (in whole or in
      part) to not be treated as an ISO by reason of the $100,000 annual limitation
      under Section 422(d) of the Code, such options shall be treated as
      Non-Qualified Stock Options, but shall be exercisable by their terms. The
      determination of options to be treated as Non-Qualified Stock Options shall
      be
      made by taking options into account in the order in which they are granted.
      If
      the terms of this option cause the $100,000 annual limitation under
      Section 422(d) of the Code to be exceeded, a pro rata portion of each
      exercise shall be treated as the exercise of a Non-Qualified Stock
      Option.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.3 Stockholder
      Approval.
      Any
      other provision of this Agreement notwithstanding, no portion of this option
      shall be exercisable at any time prior to the approval of the Plan by the
      Company’s stockholders.

     

    SECTION
      3:
      NO TRANSFER OR ASSIGNMENT OF OPTION

     

    Except
      as
      provided herein, an Optionee may not assign, sell or transfer the option, in
      whole or in part, other than by will or by operation of the laws of descent
      and
      distribution. The Administrator, in its sole discretion may permit the transfer
      of a Non-Qualified Option (but not an ISO) as follows: (i) by gift to a member
      of the Participant’s “immediate family” (as such term is defined in the Plan) or
      (ii) by transfer by instrument to a trust providing that the Option is to be
      passed to beneficiaries upon death of the trustor, provided that the
      beneficiaries are members of the Optionee’s immediate family (either or both (i)
      or (ii) referred to as a “Permitted
      Transferee”).
      A
      transfer permitted under this Section
      3
      hereof
      may be made only upon written notice to and approval thereof by Administrator.
      A
      Permitted Transferee may not further assign, sell or transfer the transferred
      option, in whole or in part, other than by will or by operation of the laws
      of
      descent and distribution. A Permitted Transferee shall agree in writing to
      be
      bound by the provisions of the Plan and this Agreement. 

     

    SECTION
      4:
      EXERCISE PROCEDURES

     

    4.1 Notice
      of Exercise.
      The
      Optionee or the Optionee’s representative may exercise this option by delivering
      a written notice in the form of Exhibit
      A
      attached
      hereto (“Notice
      of Exercise”)
      to the
      Company in the manner specified pursuant to Section
      13.4
      hereof.
      Such Notice of Exercise shall specify the election to exercise this option,
      the
      number of Shares for which it is being exercised and the form of payment, which
      must comply with Section
      5.
      The
      Notice of Exercise shall be signed by the person who is entitled to exercise
      this option. In the event that this option is to be exercised by the Optionee’s
      representative, the notice shall be accompanied by proof (satisfactory to the
      Company) of the representative’s right to exercise this option. 

     

    4.2 Issuance
      of Shares.
      After
      receiving a proper Notice of Exercise, the Company shall cause to be issued
      a
      certificate or certificates for the Shares as to which this option has been
      exercised, registered in the name of the person exercising this option (or
      in
      the names of such person and his or her spouse as community property or as
      joint
      tenants with right of survivorship). The Company shall cause such certificate
      or
      certificates to be deposited in escrow or delivered to or upon the order of
      the
      person exercising this option.

     

    4.3 Withholding
      Taxes.
      In the
      event that the Company determines that it is required to withhold any tax as
      a
      result of the exercise of this option, the Optionee, as a condition to the
      exercise of this option, shall make arrangements satisfactory to the Company
      to
      enable it to satisfy all withholding requirements. The Optionee shall also
      make
      arrangements satisfactory to the Company to enable it to satisfy any withholding
      requirements that may arise in connection with the vesting or disposition of
      Shares purchased by exercising this option.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    SECTION
      5:
      PAYMENT FOR STOCK

     

    5.1 General
      Rule.
      The
      entire Exercise Price of Shares issued under the Plan shall be payable in full
      by cash or check for an amount equal to the aggregate Exercise Price for the
      number of shares being purchased. Alternatively, in the sole discretion of
      the
      Plan Administrator and upon such terms as the Plan Administrator shall approve,
      the Exercise Price may be paid by:

     

    5.1.1 Cashless
      Exercise.
      A copy
      of instructions to a broker directing such broker to sell the Shares for which
      this option is exercised, and to remit to the Company the aggregate Exercise
      Price of such option (“Cashless
      Exercise”);
      

     

    5.1.2 Stock-For-Stock
      Exercise.
      Paying
      all or a portion of the Exercise Price for the number of Shares being purchased
      by tendering Shares owned by the Optionee, duly endorsed for transfer to the
      Company, with a Fair Market Value on the date of delivery equal to the Exercise
      Price multiplied by the number of Shares with respect to which this option
      is
      being exercised (“Stock-for-Stock
      Exercise”);
      or

     

    5.1.3 Attestation
      Exercise.
      By a
      Stock-for-Stock Exercise by means of attestation whereby the Optionee identifies
      for delivery specific Shares already owned by Optionee and receives a number
      of
      Shares equal to the difference between the Option Shares thereby exercised
      and
      the identified attestation Shares (“Attestation
      Exercise”).
      

     

    5.2 Withholding
      Payment.
      The
      Exercise Price shall include payment of the amount of all federal, state, local
      or other income, excise or employment taxes subject to withholding (if any)
      by
      the Company or any parent or subsidiary corporation as a result of the exercise
      of a Stock Option. The Optionee may pay all or a portion of the tax withholding
      by cash or check payable to the Company, or, at the discretion of the
      Administrator, upon such terms as the Administrator shall approve, by (i)
      Cashless Exercise or Attestation Exercise; (ii) Stock-for-Stock Exercise; (iii)
      in the case of an Option, by paying all or a portion of the tax withholding
      for
      the number of shares being purchased by withholding shares from any transfer
      or
      payment to the Optionee (“Stock
      Withholding”);
      or
      (iv) a combination of one or more of the foregoing payment methods. Any shares
      issued pursuant to the exercise of an Option and transferred by the Optionee
      to
      the Company for the purpose of satisfying any withholding obligation shall
      not
      again be available for purposes of the Plan. The fair market value of the number
      of shares subject to Stock Withholding shall not exceed an amount equal to
      the
      applicable minimum required tax withholding rates.

     

    5.3 Exercise/Pledge.
      In the
      discretion of the Plan Administrator, upon such terms as the Plan Administrator
      shall approve, payment may be made all or in part by the delivery (on a form
      prescribed by the Plan Administrator) of an irrevocable direction to pledge
      Shares to a securities broker or lender approved by the Company, as security
      for
      a loan, and to deliver all or part of the loan proceeds to the Company in
      payment of all or part of the Exercise Price and any withholding
      taxes.

     

    SECTION
      6:
      TERM AND EXPIRATION

     

    6.1 Basic
      Term.
      This
      option shall expire and shall not be exercis-able after the expiration of the
      earliest of (i) the Expiration Date specified in the Notice of Stock Option
      Grant, (ii) three (3) months after the date the Optionee’s Service with the
      Company and its Subsidiaries terminates if such termination is for any reason
      other than death, Disability or Cause, (iii) one (1) year after the date
      the Optionee’s Service with the Company and its Subsidiaries terminates if such
      termination is a result of death or Disability, and (iv)  if the Optionee’s
      Service with the Company and its Subsidiaries terminates for Cause, all
      outstanding Options granted to such Optionee shall expire as of the commencement
      of business on the date of such termination. Outstanding Options that are not
      vested at the time of termination of employment for any reason shall expire
      at
      the close of business on the date of such termination. The Plan Administrator
      shall have the sole discretion to determine when this option is to expire.
      For
      any purpose under this Agreement, Service shall be deemed to continue while
      the
      Optionee is on a bona fide leave of absence, to the extent required by
      applicable law. To the extent applicable law does not require such a leave
      to be
      deemed to continue while the Optionee is on a bona fide leave of absence, such
      leave shall be deemed to continue if, and only if, expressly provided in writing
      by the Administrator or a duly authorized officer of the Company, Parent or
      Subsidiary for whom Optionee provides his or her services.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    6.2 Exercise
      After Death.
      All or
      part of this option may be exercised at any time before its expiration under
      Section
      6.1
      above by
      the executors or administrators of the Optionee’s estate or by any person who
      has acquired this option directly from the Optionee by beneficiary designation,
      bequest or inheritance, but only to the extent that this option had become
      vested before the Optionee’s death. When the Optionee dies, this option shall
      expire immediately with respect to the number of Shares for which this option
      is
      not yet vested and with respect to any Share that is subject to the Right of
      Repurchase (as such term is defined below).

     

    6.3 Notice
      Concerning ISO Treatment.
      If this
      option is designated as an ISO in the Notice of Stock Option Grant, it ceases
      to
      qualify for favorable tax treatment as an ISO to the extent it is exercised
      (i) more than three (3) months after the date the Optionee ceases to be an
      Employee for any reason other than death or permanent and total disability
      (as
      defined in Section 22(e)(3) of the Code), (ii) more than twelve (12)
      months after the date the Optionee ceases to be an Employee by reason of such
      permanent and total disability or (iii) after the Optionee has been on a
      leave of absence for more than ninety (90) days, unless the Optionee’s
      reemployment rights are guaranteed by statute or by contract.

     

    SECTION
      7:
      RIGHT OF REPURCHASE

     

    7.1 Repurchase
      Right.
      The
      Company shall have the right (but not an obligation) to repurchase (i) the
      Optionee’s vested Options, and (ii) any
      Shares acquired under this Agreement (the “Restricted
      Stock”),
      in
      each case as provided in this Section
      7
      (collectively, the “Right
      of Repurchase”).
      

     

    7.2 Repurchase
      Price.
      Following the termination of Optionee’s Service the Right of Repurchase shall be
      exercisable at a price (the “Repurchase
      Price”)
      equal
      to (i) the Fair Market Value of the shares of Restricted Stock which have become
      vested in accordance with the Notice of Stock Option Grant or, in the case
      of
      vested but unexercised Options, the Fair Market Value of the Stock underlying
      such unexercised Options less the Exercise Price; or (ii) the Exercise Price
      of
      any unvested shares of Restricted Stock. The Right of Repurchase shall in all
      cases be subject to Section
      7.4
      hereof.

     

    7.3 Condition
      Precedent to Exercise.
      The
      Right of Repurchase shall be exercisable only during the ninety (90)-day period
      next following the later of:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    7.3.1 The
      date
      when the Optionee’s Service terminates for any reason, with or without Cause,
      including (without limitation) death or disability; or

     

    7.3.2 The
      date
      when this option was exercised by the Optionee, the executors or administrators
      of the Optionee’s estate or any person who has acquired this Option directly
      from the Optionee by bequest, inheritance or beneficiary
      designation.

     

    7.4 Lapse
      of Stock
      Repurchase Right.
      Notwithstanding any portion of the foregoing, the Right
      of
      Repurchase shall lapse with respect to (i) Shares that are registered under
      a
      then currently effective registration statement under applicable federal
      securities laws and the issuer is subject to the reporting requirements of
      Section 13 or 15(d) of the Exchange Act or becomes an investment company
      registered or required to be registered under the Investment Company Act of
      1940, or (ii) Shares for which a determination is made by counsel for the
      Company that such Right of Repurchase is not permitted by applicable federal
      or
      state securities laws.

     

    7.5 Exercise
      of Right of Repurchase.
      The
      Company shall exercise the Right of Repurchase by written notice delivered
      to
      the Optionee prior to the expiration of the ninety (90)-day period specified
      in
Section 7.3
      above,
      which notice shall set forth the date on which the repurchase is to be effected.
      The certificate(s) representing the Restricted Stock to be repurchased shall,
      prior to the close of business on the date specified for the repurchase, be
      delivered to the Company properly endorsed for transfer. The Company shall,
      concurrently with the receipt of such certificate(s), pay to the Optionee the
      Repurchase Price determined according to this Section
      7.
      Payment
      shall be made in cash or cash equivalents or by canceling indebtedness to the
      Company incurred by the Optionee in the purchase of the Restricted Stock. The
      Right of Repurchase shall terminate with respect to any Restricted Stock or
      Options for which it has not been timely exercised pursuant to this Section 7.5.

     

    7.6 Rights
      of Repurchase Adjustments.
      If
      there is any change in the number of outstanding shares of Stock by reason
      of a
      stock split, reverse stock split, stock dividend, an extraordinary dividend
      payable in a form other than stock, recapitalization, combination or
      reclassification, or a similar transaction affecting the Company’s outstanding
      securities without receipt of consideration, then (i) any new, substituted
      or
      additional securities or other property (including money paid other than as
      an
      ordinary cash dividend) distributed with respect to any Restricted Stock (or
      into which such Restricted Stock thereby become convertible) shall immediately
      be subject to the Right of Repurchase; and (ii) appropriate adjustments to
      reflect the distribution of such securities or property shall be made to the
      number and/or class of the Restricted Stock and to the price per share to be
      paid upon the exercise of the Right of Repurchase; provided,
      however,
      that
      the aggregate Repurchase Price payable for the Restricted Stock shall remain
      the
      same.

     

    7.7 Termination
      of Rights as Stockholder.
      If the
      Company makes available, at the time and place and in the amount and form
      provided in this Agreement, the consideration for the Restricted Stock or
      Options to be repurchased in accordance with this Section
      7,
      then
      after such time the person from whom such Restricted Stock or Options are to
      be
      repurchased shall no longer have any rights as a holder of such Restricted
      Stock
      or Options (other than the right to receive payment of such consideration in
      accordance with this Agreement). Such Restricted Stock or Options shall be
      deemed to have been repurchased in accordance with the applicable provisions
      hereof, whether or not the certificate(s) therefor have been delivered as
      required by this Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    7.8 Escrow.
      Upon
      issuance, the certificates for Restricted Stock shall be deposited in escrow
      with the Company to be held in accordance with the provisions of this Agreement.
      Any new, substituted or additional securities or other property described in
      Section 7.6
      above
      shall immediately be delivered to the Company to be held in escrow. All regular
      cash dividends on Restricted Stock (or other securities at the time held in
      escrow) shall be paid directly to the Optionee and shall not be held in escrow.
      Restricted Stock, together with any other assets or securities held in escrow
      hereunder, shall be (i) surrendered to the Company for repurchase and
      cancellation upon the Company’s exercise of its Right of Repurchase or Right of
      First Refusal or (ii) released to the Optionee upon the termination of the
      Right
      of Repurchase. In any event, all Restricted Stock (and any other vested assets
      and securities attributable thereto) shall be released following ninety
      (90) days after the earlier of (i) the Purchaser’s cessation of Service or
      (ii) the lapse of the Right of First Refusal, to the extent not otherwise
      repurchased by the Company in accordance with the terms hereof.

     

    SECTION
      8:
      RIGHT OF FIRST REFUSAL

     

    8.1 Right
      of First Refusal.
      In
      the
      event that the Company’s stock is not readily tradable on an established
      securities market and the Optionee proposes to sell, pledge or otherwise
      transfer to a third party any Shares acquired under this Agreement, or any
      interest in such Shares, to any person, entity or organization (the
“Transferee”)
      the
      Company shall have the Right of First Refusal with respect to all (and not
      less
      than all) of such Shares (the “Right
      of First Refusal”).
      If
      the Optionee desires to transfer Shares acquired under this Agreement, the
      Optionee shall give a written transfer notice (“Transfer
      Notice”)
      to the
      Company describing fully the proposed transfer, including the number of Shares
      proposed to be transferred, the proposed transfer price, the name and address
      of
      the proposed Transferee and proof satisfactory to the Company that the proposed
      sale or transfer will not violate any applicable federal or state securities
      laws. The Transfer Notice shall be signed both by the Optionee and by the
      proposed Transferee and must constitute a binding commitment of both parties
      to
      the transfer of the Shares. The Company shall have the right to purchase all,
      and not less than all, of the Shares on the terms of the proposal described
      in
      the Transfer Notice by delivery of a notice of exercise of the Right of First
      Refusal within thirty (30) days after the date when the Transfer Notice was
      received by the Company. The Company’s rights under this Section 8.1
      shall be
      freely assignable, in whole or in part.

     

    8.2 Additional
      Shares or Substituted Securities.
      In the
      event of the declaration of a stock dividend, the declaration of an
      extraordinary dividend payable in a form other than stock, a spin-off, a stock
      split, an adjustment in conversion ratio, a recapitalization or a similar
      transaction affecting the Company’s outstanding securities without receipt of
      consideration, any new, substituted or additional securities or other property
      (including money paid other than as an ordinary cash dividend) which are by
      reason of such transaction distributed with respect to any Shares subject to
      this Section
      8
      or into
      which such Shares thereby become convertible shall immediately be subject to
      this Section
      8.
      Appropriate adjustments to reflect the distribution of such securities or
      property shall be made to the number and/or class of the Shares subject to
      this
Section
      8.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    8.3 Termination
      of Right of First Refusal.
      Any
      other provision of this Section
      8
      notwithstanding, in the event that the Stock is readily tradable on an
      established securities market when the Optionee desires to transfer Shares,
      the
      Company shall have no Right of First Refusal, and the Optionee shall have no
      obligation to comply with the procedures prescribed by this Section
      8.

     

    8.4 Permitted
      Transfers.
      This
Section
      8
      shall
      not apply to a transfer to a Permitted Transferee in accordance with
Section
      3.
      

     

    8.5 Termination
      of Rights as Stockholder.
      If the
      Company makes available, at the time and place and in the amount and form
      provided in this Agreement, the consideration for the Shares to be purchased
      in
      accordance with this Section
      8,
      then
      after such time the person from whom such Shares are to be purchased shall
      no
      longer have any rights as a holder of such Shares (other than the right to
      receive payment of such consideration in accordance with this Agreement). Such
      Shares shall be deemed to have been purchased in accordance with the applicable
      provisions hereof, whether or not the certificate(s) therefor have been
      delivered as required by this Agreement.

     

    SECTION
      9:
      STOCKHOLDERS AGREEMENT

     

    As
      a
      condition to the transfer of Stock pursuant to this Stock Option Agreement,
      the
      Administrator, in its sole and absolute discretion, may require the Optionee
      to
      execute and become a party to any agreement by and among the Company and its
      stockholders generally which exists on or after the Date of Grant (the
“Stockholders
      Agreement”).
      If
      the Optionee becomes a party to a Stockholders Agreement, in addition to the
      terms of the Plan and this Stock Option Agreement, the terms and conditions
      of
      Stockholders Agreement shall govern Optionee’s rights in and to the Stock; and
      if there is any conflict between the provisions of the Stockholders Agreement
      and the Plan or any conflict between the provisions of the Stockholders
      Agreement and this Stock Option Agreement, the provisions of the Stockholder
      Agreement shall be controlling. Notwithstanding anything to the contrary in
      this
Section
      9,
      if the
      Stockholders Agreement contains any provisions which would violate Section
      25102(o) of the California Corporations Code if applied to the Optionee, the
      terms of the Plan and this Stock Option Agreement shall govern the Optionee’s
      rights with respect to such provisions.

     

    SECTION
      10:
      LEGALITY OF INITIAL ISSUANCE

     

    No
      Shares
      shall be issued upon the exercise of this option unless and until the Company
      has determined that:

     

    10.1 It
      and
      the Optionee have taken any actions required to register the Shares under the
      Securities Act of 1933, as amended (the “Securities
      Act”)
      or to
      perfect an exemption from the registration requirements thereof;

     

    10.2 Any
      applicable listing requirement of any stock exchange on which Stock is listed
      has been satisfied; and

     

    10.3 Any
      other
      applicable provision of state or federal law has been satisfied.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    SECTION
      11:
      NO REGISTRATION RIGHTS

     

    The
      Company may, but shall not be obligated to, register or qualify the sale of
      Shares under the Securities Act or any other applicable law. The Company shall
      not be obligated to take any affirmative action in order to cause the sale
      of
      Shares under this Agreement to comply with any law.

     

    SECTION
      12:
      RESTRICTIONS ON TRANSFER

     

    12.1 Securities
      Law Restrictions.
      Regardless of whether the offering and sale of Shares under the Plan have been
      registered under the Securities Act or have been registered or qualified under
      the securities laws of any state, the Company at its discretion may impose
      restrictions upon the sale, pledge or other transfer of such Shares (including
      the placement of appropriate legends on stock certificates or the imposition
      of
      stop-transfer instructions) if, in the judgment of the Company, such
      restrictions are necessary or desirable in order to achieve compliance with
      the
      Securities Act, the securities laws of any state or any other law.

     

    12.2 Market
      Stand-Off.
      In the
      event of an underwritten public offering by the Company of its equity securities
      pursuant to an effective registration statement filed under the Act, including
      the Company’s initial public offering (a “Public
      Offering”),
      the
      Optionee shall not Transfer for value any shares of Stock without the prior
      written consent of the Company or its underwriters, for such period of time
      from
      and after the effective date of such registration statement as may be requested
      by the Company or such underwriters (the “Market
      Stand-Off”).
      The
      Market Stand-off shall be in effect for such period of time following the date
      of the final prospectus for the offering as may be requested by the Company
      or
      such underwriters. In the event of the declaration of a stock dividend, a
      spin-off, a stock split, an adjustment in conversion ratio, a recapitalization
      or a similar transaction affecting the Company’s outstanding securities without
      receipt of consideration, any new, substituted or additional securities which
      are by reason of such transaction distributed with respect to any Shares subject
      to the Market Stand-Off, or into which such Shares thereby become convertible,
      shall immediately be subject to the Market Stand-Off. In order to enforce the
      Market Stand-Off, the Company may impose stop-transfer instructions with respect
      to the Shares acquired under this Agreement until the end of the applicable
      stand-off period. 

     

    12.3 Investment
      Intent at Grant.
      The
      Optionee represents and agrees that the Shares to be acquired upon exercising
      this option will be acquired for investment, and not with a view to the sale
      or
      distribution thereof.

     

    12.4 Investment
      Intent at Exercise.
      In the
      event that the sale of Shares under the Plan is not registered under the
      Securities Act but an exemption is available which requires an investment
      representation or other representation, the Optionee shall represent and agree
      at the time of exercise that the Shares being acquired upon exercising this
      option are being acquired for investment, and not with a view to the sale or
      distribution thereof, and shall make such other representations as are deemed
      necessary or appropriate by the Company and its counsel.

     

    12.5 Legends.
      All
      certificates evidencing Shares purchased under this Agreement in an unregistered
      transaction shall bear the following legend (and such other restrictive legends
      as are required or deemed advisable under the provisions of any applicable
      law):

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “THE
      SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT
      AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
      SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED.”

     

    12.6 Removal
      of Legends.
      If, in
      the opinion of the Company and its counsel, any legend placed on a stock
      certificate representing Shares sold under this Agreement no longer is required,
      the holder of such certificate shall be entitled to exchange such certificate
      for a certificate representing the same number of Shares but without such
      legend.

     

    12.7 Administration.
      Any
      determination by the Company and its counsel in connection with any of the
      matters set forth in this Section
      12
      shall be
      conclusive and binding on the Optionee and all other persons.

     

    SECTION
      13:
      MISCELLANEOUS PROVISIONS

     

    13.1 Rights
      as a Stockholder.
      Neither
      the Optionee nor the Optionee’s representative shall have any rights as a
      stockholder with respect to any Shares subject to this option until the Optionee
      or the Optionee’s representative becomes entitled to receive such Shares by
      filing a notice of exercise and paying the Exercise Price pursuant to
Section
      4
      and Section 5
      hereof.

     

    13.2 Adjustments.
      If there
      is any change in the number of outstanding shares of Stock by reason of a stock
      split, reverse stock split, stock dividend, recapitalization, combination or
      reclassification, then (i) the number of shares subject to this option and
      (ii)
      the Exercise Price of this option, in effect prior to such change, shall be
      proportionately adjusted to reflect any increase or decrease in the number
      of
      issued shares of Stock; provided,
      however,
      that
      any fractional shares resulting from the adjustment shall be
      eliminated.

     

    13.3 No
      Retention Rights.
      Nothing
      in this option or in the Plan shall confer upon the Optionee any right to
      continue in Service for any period of specific duration or interfere with or
      otherwise restrict in any way the rights of the Company (or any Parent or
      Subsidiary employing or retaining the Optionee) or of the Optionee, which rights
      are hereby expressly reserved by each, to terminate his or her Service at any
      time and for any reason, with or without Cause.

     

    13.4 Notice.
      Any
      notice required by the terms of this Agreement shall be given in writing and
      shall be deemed effective upon personal delivery or upon deposit with the United
      States Postal Service, by registered or certified mail, with postage and fees
      prepaid. Notice shall be addressed the Optionee at the address set forth in
      the
      records of the Company. Notice shall be addressed to the Company at:

     

    
      	 	
              New
                Motion, Inc.

            
	 	
              42
                Corporate Park

              2nd
                floor

              Irvine,
                CA 92606

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    13.5 Entire
      Agreement.
      The
      Notice of Stock Option Grant, this Agreement and the Plan constitute the entire
      contract between the parties hereto with regard to the subject matter hereof.
      They supersede any other agreements, representations or understandings (whether
      oral or written and whether express or implied) that relate to the subject
      matter hereof.

     

    13.6 Choice
      of Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF CALIFORNIA, WITHOUT REGARD TO ITS CHOICE OF LAWS PROVISIONS, AS
      CALIFORNIA LAWS ARE APPLIED TO CONTRACTS ENTERED INTO AND PERFORMED IN SUCH
      STATE.

     

    13.7 Attorneys’
      Fees.
      In the
      event that any action, suit or proceeding is instituted upon any breach of
      this
      Agreement, the prevailing party shall be paid by the other party thereto an
      amount equal to all of the prevailing party’s costs and expenses, including
      attorneys’ fees incurred in each and every such action, suit or proceeding
      (including any and all appeals or petitions therefrom). As used in this
      Agreement, “attorneys’
      fees”
shall
      mean the full and actual cost of any legal services actually performed in
      connection with the matter involved calculated on the basis of the usual fee
      charged by the attorney performing such services and shall not be limited to
      “reasonable attorneys’ fees” as defined in any statute or rule of
      court.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    NOTICE
      OF EXERCISE

    

    (To
      be
      signed only upon exercise of the Option)

     

    
      	
              New
                Motion, Inc.

              42
                Corporate Park

              2nd
                floor

              Irvine,
                CA 92606

            

    

    

    The
      undersigned, the holder of the enclosed Stock Option Agreement, hereby
      irrevocably elects to exercise the purchase rights represented by the Option
      and
      to purchase thereunder ______* shares of Common Stock of New Motion, Inc. (the
      “Company”),
      and
      herewith encloses payment of $_______ and/or _________ shares of the Company's
      common stock in full pay-ment of the purchase price of such shares being
      purchased. 

     

    Dated:_______________________    

     

    YOUR
      STOCK MAY BE SUBJECT TO RESTRICTIONS AND FORFEITURE
      UNDER THE NOTICE OF STOCK OPTION GRANT AND STOCK OPTION
      AGREEMENT

    
      	 	 
	 	
              (Signature
                must conform in all respects to name of holder as specified on the
                face of
                the Option)

            
	 	 
	 	
              (Please
                Print Name)

            
	 	 
	 	
              (Address)

            

    

     

    
      	 	
              *

            	
              Insert
                here the number of shares called for on the face of the Option, or,
                in the
                case of a partial exercise, the number of shares being exercised,
                in
                either case without making any adjustment for additional Common Stock
                of
                the Company, other securities or property that, pursuant to the adjustment
                provisions of the Option, may be deliverable upon
                exercise.

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