Document:

exv10w26

Exhibit 10.26

BIOTROVE, INC.

BONUS AGREEMENT WITH EDWARD SZTUKOWSKI

          AGREEMENT made as of the 17th day of March 2008, between BioTrove, Inc., a Delaware
corporation (the “Company”), and Edward Sztukowski (the “Employee”).

          WHEREAS, pursuant to an offer letter from the Company, the Company promised to grant to the
Employee an option to purchase shares of its common stock;

          WHEREAS, prior to granting the option, the Company obtained a valuation of its common stock
which indicated that the fair market value of its common stock was significantly higher than
originally believed, making it impossible to grant the option at the exercise price originally
contemplated without violating Section 409A of the U.S. Internal Revenue Code of 1986, as amended,
and the guidance issued thereunder (“Section 409A”);

          WHEREAS, the Company has determined that it is in the best interests of the Employee and the
Company to grant to the Employee an option under the Company’s Amended 2000 Stock Plan at the fair
market value of its common stock at the date of grant based on the valuation received by the
Company (the “Option”); and

          WHEREAS, the Company desires to grant a bonus to the Employee to compensate the Employee for
the increase in the exercise price for the Option that is being granted to the Employee.

          NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto agree as follows:

          The Employee will be eligible to receive a cash bonus in the amount of $124,000 (the “Bonus
Amount”), payable in installments, provided that the Employee is employed by the Company on the
date an installment is due to be eligible for that installment.

          Each installment of the bonus will be paid on the dates and in the amounts as follows:

25% of the Bonus Amount on February 1, 2009;

1/36th of 75% of the Bonus Amount on March 1, 2009 and the first day of
each month thereafter up to and including February 1, 2012.

          Notwithstanding the above schedule, in the event of a Change in Control all outstanding
amounts will be accelerated and any portion of the Bonus Amount that is still outstanding on the
date of the Change in Control shall be paid immediately prior to the consummation of the Change in
Control. For the purposes herein a Change of Control shall be deemed to have occurred upon the
occurrence of any one of the following events:

 

 

	 	(i)	 	any “Person,” as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other
than the Company, any of its subsidiaries, or any trustee, fiduciary or other
person or entity holding securities under any employee benefit plan or trust
of the Company or any of its subsidiaries), together with all “affiliates” and
“associates” (as such terms are defined in Rule 12b-2 under the Act) of such
person, shall become the “beneficial owner” (as such term is defined in Rule
13d-3 under the Act), directly or indirectly, of securities of the Company
representing 50 percent or more of the combined voting power of the Company’s
then outstanding securities having the right to vote in an election of the
Company’s Board of Directors (“Voting Securities”) (in such case other than as
a result of an acquisition of securities directly from the Company); or
	 
	 	(ii)	 	persons who, as of the date hereof, constitute the Company’s
Board of Directors (the “Incumbent Directors”) cease for any reason,
including, without limitation, as a result of a tender offer, proxy contest,
merger or similar transaction, to constitute at least a majority of the Board,
provided that any person becoming a director of the company subsequent to the
date hereof shall be considered an Incumbent Director if such person’s
election was approved by or such person was nominated for election by either
(A) a vote of at least a majority of the Incumbent Directors or (B) a vote of
at least a majority of the Incumbent Directors who are members of a nominating
committee comprised, in the majority, of Incumbent Directors; but provided
further, that any such person whose initial assumption of office is in
connection with an actual or threatened election contest relating to the
election of members of the Board of Directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board, including by reason of agreement intended to avoid or settle any such
actual or threatened contest or solicitation, shall not be considered an
Incumbent Director; or
	 
	 	(iii)	 	the consummation of (A) any consolidation or merger of the
Company where the stockholders of the Company, immediately prior to the
consolidation or merger, would not, immediately after the consolidation or
merger, beneficially own (as such term is defined in Rule 13d-3 under the
Act), directly or indirectly, shares representing in the aggregate more than
50 percent of the voting shares of the Company issuing cash or securities in
the consolidation or merger (or of its ultimate parent corporation, if any),
or (B) any sale, lease, exchange or other transfer (in one transaction or a
series of transactions contemplated or arranged by

 

 

	 	 	 	any party as a single plan) of all or substantially all of the assets of
the Company; or
	 
	 	(iv)	 	the approval by the Company’s stockholders of any plan or
proposal for the liquidation or dissolution of the Company.

          All income and employment taxes required to be withheld from the bonus will be withheld and
will reduce the cash payments received by the Employee under this Agreement.

          It is intended that each installment of the payments and benefits provided under this
Agreement shall be treated as a separate “payment” for purposes of Section 409A. Neither the
Company nor Employee shall have the right to accelerate or defer the delivery of any such payments
or benefits except to the extent specifically permitted or required by Section 409A.

          By signing this Agreement and receiving the Option, you hereby agree and acknowledge that the
Company has satisfied its obligations to you under your offer letter dated October 31, 2007 and you
are not entitled to receive any additional options, shares or payments from the Company.

          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and Edward Sztukowski has hereunto set his hand, all as of the day and year
first above written.

	 	 	 	 	 
	 	BioTrove, Inc.

 	 
	 	By:  	/s/ Albert Luderer
 	 
	 	 	Name 	 
	 	 	Title  CEO 	 
	 

	 	 	 	 	 
	 	 	 
	 	                           /s/ Edward Sztukowski 19MAY08
 	 
	 	Edward Sztukowskiexv4w1

Exhibit 4.1

eSCRIPTION, INC.

AMENDED AND RESTATED 1999 EMPLOYEE, DIRECTOR AND CONSULTANT

EQUITY INCENTIVE PLAN

(Amended and Restated as of May 16, 2008)

	1.	 	DEFINITIONS.

     Unless otherwise specified or unless the context otherwise required, the following terms, as
used in this eScription Amended and Restated 1999 Employee, Director and Consultant Equity
Incentive Plan, have the following meanings:

     Administrator means the Board of Directors, unless it has delegated power to act on
its behalf to the Committee, in which case the Administrator means the Committee.

     Affiliate means a corporation which, for purposes of Section 424 of the Code, is a
parent or subsidiary of the Company, direct or indirect.

     Award means, individually or collectively, a grant under the Plan of Options or
Restricted Stock Units.

     Award Agreement means an agreement, including an Option Agreement and a RSU Agreement,
between the Company and a Participant delivered pursuant to the Plan, in such form as the
Administrator shall approve.

     Board of Directors means the Board of Directors of the Company.

     Code means the United States Internal Revenue Code of 1986, as amended.

     Committee means the committee of the Board of Directors to which the Board of
Directors has delegated power to get under or pursuant to the provisions of the Plan.

     Common Stock means shares of the Company’s common stock, $.001 par value per share.

     Company means eScription, Inc., a Delaware corporation.

     Disability or Disabled means permanent and total disability as defined in
Section 22(e)(3) of the Code.

     Fair Market Value of a Share of Common Stock means:

     (1) If the Common Stock is listed on a national securities exchange or traded in the
over-the-counter market and sales prices are regularly reported for the Common Stock, the closing
or last price of the Common Stock on the Composite Tape or other comparable reporting system for
the trading day immediately preceding the applicable date;

 

 

     (2) If the Common Stock is not traded on a national securities exchange but is traded on the
over-the-counter market, if sales prices are not regularly reported for the Common Stock for the
trading day referred to in clause (1), if bid and asked prices for the Common Stock are regularly
reported, the mean between the bid and the asked price for the Common Stock at the close of trading
in the over-the-counter market for the trading day on which Common Stock was traded immediately
preceding the applicable date; and

     (3) If the Common Stock is neither listed on a national securities exchange nor traded in the
over-the-counter market, such value as the Administrator, in good faith, shall determine.

     ISO means an option meant to qualify as an incentive stock option under Section 422 of
the Code.

     Key Employee means an employee of the Company or of an Affiliate (including, without
limitation, an employee who is also serving as an officer or director of the Company or of an
Affiliate), designated by the Administrator to be eligible to be granted one or more Awards under
the Plan.

     Non-Qualified Option means an option which is not intended to qualify as an ISO.

     Option means an ISO or Non-Qualified Option granted under the Plan.

     Option Agreement means an agreement for the grant of an Option between the Company and
a Participant delivered pursuant to the Plan, in such form as the Administrator shall approve.

     Participant means a Key Employee, director or consultant to whom one or more Awards
are granted under the Plan. As used herein, “Participant” shall include “Participant’s Survivors”
where the context requires.

     Plan means this eScription, Inc. Amended and Restated 1999 Employee, Director and
Consultant Equity Incentive Plan.

     RSU Agreement means an agreement for the grant of Restricted Stock Units between the
Company and a Participant delivered pursuant to the Plan, in such form as the Administrator may
approve.

     Restricted Stock Unit means a bookkeeping entry representing a right to receive one
Share, granted pursuant to Paragraph 14. Each Restricted Stock Unit represents an unfunded and
unsecured obligation of the Company.

     Shares means shares of the Common Stock as to which Awards have been or may be granted
under the Plan or any shares of capital stock into which the Shares are changed or for which they
are exchanged within the provisions of Paragraph 3 of the Plan. The Shares subject to Awards
granted under the Plan may be authorized and unissued shares or shares held by the Company in its
treasury, or both.

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     Survivors means a deceased Participant’s legal representatives and/or any person or
persons who acquired the Participant’s rights to an Award by will or by the laws of descent and
distribution.

	2.	 	PURPOSE OF THE PLAN.

     The Plan is intended to encourage ownership of Shares by Key Employees and directors of and
certain consultants to the Company in order to attract such people, to induce them to work for the
benefit of the Company or of an Affiliate and to provide additional incentive for them to promote
the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs,
Non-Qualified Options, and Restricted Stock Units.

	3.	 	SHARES SUBJECT TO THE PLAN.

     The number of Shares which may be issued from time to time pursuant to this Plan shall be
850,000, or the equivalent of such number of Shares after the Administrator, in its sole
discretion, has interpreted the effect of any stock split, stock dividend, combination,
recapitalization or similar transaction in accordance with Paragraph 17 of the Plan.

     If an Award ceases to be “outstanding”, in whole or in part, the Shares which were subject to
such Award shall be available for the granting of other Awards under the Plan. Any Award shall be
treated as “outstanding” until such Award if it is an Option is exercised in full, if it is a grant
of Restricted Stock Units is settled in Shares, or for all Awards, upon termination or expiration
without all Shares having been issued under the provisions of the Plan, or by agreement of the
parties to the pertinent Award Agreement. Shares shall not be deemed to have been issued pursuant
to the Plan, and shall cease to be “outstanding,” to the extent such Shares are withheld in
satisfaction of tax withholding obligations.

	4.	 	ADMINISTRATION OF THE PLAN.

     The Administrator of the Plan will be the Board of Directors, except to the extent the Board
of Directors delegates its authority to the Committee in which case the Committee shall be the
Administrator. Subject to the provisions of the Plan, the Administrator is authorized to:

          a. Interpret the provisions of the Plan or of any Award or Award Agreement and to make all
rules and determinations which it deems necessary or advisable for the administration of the Plan.

          b. Determine which employees of the Company or of an Affiliate shall be designated as Key
Employees and which of the Key Employees, directors and consultants shall be granted Awards;

          c. Determine the number of Shares for which an Award or Awards shall be granted; and

          d. Specify the terms and conditions upon which an Award or Awards may be granted;

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provided, however, that all such interpretations, rules, determinations, terms and conditions shall
be made and prescribed in the context of preserving the tax status under Section 422 of the Code of
those Options which are designated as ISOs and of not causing any adverse tax consequences under
Section 409A of the Code for all other Awards. Subject to the foregoing, the interpretation and
construction by the Administrator of any provisions of the Plan or of any Award granted under it
shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the
Committee.

	5.	 	ELIGIBILITY FOR PARTICIPATION.

     The Administrator will, in its sole discretion, name the Participants in the Plan, provided,
however, that each Participant must be a Key Employee, director or consultant of the Company or of
an Affiliate at the time an Award is granted. Notwithstanding the foregoing, the Administrator may
authorize the grant of an Award to a person not then an employee, director or consultant of the
Company or of an Affiliate; provided, however, that the actual grant of such Award shall be
conditioned upon such person becoming eligible to become a Participant at or prior to the time of
the delivery of the Award Agreement evidencing such Award. ISOs may be granted only to Key
Employees. Non-Qualified Options or Restricted Stock Units may be granted to any Key Employee,
director or consultant of the Company or an Affiliate. The granting of any Award to any individual
shall neither entitle that individual to, nor disqualify him or her from, participation in any
other grant of Awards.

	6.	 	TERMS AND CONDITIONS OF OPTIONS.

     Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company
and, to the extent required by law or requested by the Company, by the Participant. The
Administrator may provide that Options be granted subject to such terms and conditions, consistent
with the terms and conditions specifically required under this Plan, as the Administrator may deem
appropriate including, without limitation, subsequent approval by the shareholders of the Company
of this Plan or any amendments thereto.

     A. Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be
subject to the terms and conditions which the Administrator determines to be appropriate and in the
best interest of the Company, subject to the following minimum standards for any such Non-Qualified
Option:

          a. Option Price: Each Option Agreement shall state the option price (per share) of the Shares
covered by each Option, which option price shall be determined by the Administrator but shall not
be less than the par value per share of Common Stock.

          b. Each Option Agreement shall state the number of Shares to which it pertains;

          c. Each Option Agreement shall state the date or dates on which it first is exercisable and
the date after which it may no longer be exercised, and may provide that the Option rights accrue
or become exercisable in installments over a period of months or years, or upon the occurrence of
certain conditions or the attainment of stated goals or events; and

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          d. Exercise of any Option may be conditioned upon the Participant’s execution of a Share
purchase agreement in form satisfactory to the Administrator providing for certain protections for
the Company and its other shareholders, including requirements that:

               (i) The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may
be restricted; and

               (ii) The Participant or the Participant’s Survivors may be required to execute letters of
investment intent and must also acknowledge that the Shares will bear legends noting any applicable
restrictions.

     B. ISOs: Each Option intended to be an ISO shall be issued only to a Key Employee and
be subject to the following terms and conditions, with such additional restrictions or changes as
the Administrator determines are appropriate but not in conflict with Section 422 of the Code and
relevant regulations and rulings of the Internal Revenue Service:

          a. Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified
Options, as described in Paragraph 6(A) above, except clause (a) thereunder.

          b. Option Price: Immediately before the Option is granted, if the Participant owns, directly
or by reason of the applicable attribution rules in Section 424(d) of the Code:

               (i) Ten percent (10%) or less of the total combined voting power of all classes of
share capital of the Company or an Affiliate, the Option price per share of the Shares covered by
each Option shall not be less than one hundred percent (100%) of the Fair Market Value per share of
the Shares on the date of the grant of the Option.

               (ii) More than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or an Affiliate, the Option price per share of the Shares covered by each Option shall
not be less than one hundred ten percent (110%) of the said Fair Market Value on the date of grant.

          c. Term of Option: For Participants who own

               (i) Ten percent (10%) or less of the total combined voting power of all classes of
share capital of the Company or an Affiliate, each Option shall terminate no more than ten (10)
years from the date of the grant or at such earlier time as the Option Agreement may provide.

               (ii) More than ten percent (10%) of the total combined voting power of all classes of stock of
the Company or an Affiliate, each Option shall terminate not more than five (5) years from the date
of the grant or at such earlier time as the Option Agreement may provide.

          d. Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of Options
which may be exercisable in any calendar year (under this or any other ISO plan of the Company or
an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted)
of the stock with respect to which ISOs are exercisable for the first time by the
Participant in
any calendar year does not exceed one hundred thousand dollars ($100,000, provided

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that this subparagraph (d) shall have no force or effect if its inclusion in the Plan is not
necessary for Options issued as ISOs to qualify as ISOs pursuant to Section 422(d) of the Code.

	7.	 	EXERCISE OF OPTIONS AND ISSUE OF SHARES.

     An Option (or any part or installment thereof) shall be exercised by giving written notice to
the Company at its principal executive office address, together with provision for payment of the
full purchase price in accordance with this Paragraph for the Shares as to which the Option is
being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement.
Such written notice shall be signed by the person exercising the Option, shall state the number of
Shares with respect to which the Option is being exercised and shall contain any representation
required by the Plan or the Option Agreement. Payment of the purchase price for the Shares as to
which such Option is being exercised shall be made (a) in United States dollars in cash or by
check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock
having a Fair Market Value equal as of the date of the exercise to the cash exercise price of the
Option, or (c) at the discretion of the Administrator, by having the Company retain from the shares
otherwise issuable upon exercise of the Option, a number of shares having a Fair Market Value equal
as of the date of exercise to the exercise price of the Option, or (d) at the discretion of the
Administrator, by delivery of the grantee’s personal recourse note bearing interest payable not
less than annually at no less than 100% of the applicable Federal rate, as defined in
Section 1274(d) of the Code, or (e) at the discretion of the Administrator, in accordance with a
cashless exercise program established with a securities brokerage firm, and approved by the
Administrator, or (f) at the discretion of the Administrator, by any combination of (a), (b), (c),
(d) and (e) above. Notwithstanding the foregoing, the Administrator shall accept only such payment
on exercise of an ISO as is permitted by Section 422 of the Code.

     The Company shall then reasonably promptly deliver the shares as to which such Option was
exercised to the Participant (or to the Participant’s Survivors, as the case may be). In
determining what constitutes “reasonably promptly,” it is expressly understood that the delivery of
the Shares may be delayed by the Company in order to comply with any law or regulation (including,
without limitation, state securities or “blue sky” laws) which requires the Company to take any
action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be
evidenced by an appropriate certificate or certificates for fully paid, non-assessable Shares.

     The Administrator shall have the right to accelerate the date of exercise of any installment
of any Option; provided that the Administrator shall not accelerate the exercise date of any
installment of any Option granted to any Key Employee as an ISO (and not previously converted into
a Non-Qualified Option pursuant to Paragraph 20) if such acceleration would violate the annual
vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6.B.d.

     The Administrator may, in its discretion, amend any term or condition of an outstanding Option
provided (i)  such term or condition as amended is permitted by the Plan, (ii any such amendment
shall be made only with the consent of the Participant to which the Option was granted, or in the
event of the death of the Participant, the Participant’s Survivors, if the amendment is adverse to
the Participant, and (iii) any such amendment or any ISO shall be made only after the
Administrator, after consulting the counsel for the Company, determines whether such amendment

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would constitute a “modification” of any Option which is an ISO (as that term is defined in
Section 424(h) of the Code) or would cause any adverse tax consequences for the holder of such ISO.

	8.	 	RIGHTS AS A SHAREHOLDER.

     No Participant to whom an Award has been granted shall have rights as a shareholder with
respect to any Shares covered by such Award, except after due exercise or the issuance of Shares
subject to the Award and tender of the full purchase price for the Shares being purchased pursuant
to such exercise and registration of the Shares in the Company’s share register in the name of the
Participant.

	9.	 	ASSIGNABILITY AND TRANSFERABILITY OF AWARDS.

     By its terms, an Award granted to a Participant shall not be transferable by the Participant
other than (i) by will or by the laws of descent and distribution, or (ii) as otherwise determined
by the Administrator and set forth in the applicable Award Agreement. The designation of a
beneficiary of an Award by a Participant shall not be deemed a transfer prohibited by this
Paragraph. Except as provided above, an Award shall be exercisable, during the Participant’s
lifetime, only by such Participant (or by his or her legal representative) and shall not be
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall
not be subject to execution, attachment or similar process. Any attempted transfer, assignment,
pledge, hypothecation or other disposition of any Award or of any rights granted thereunder
contrary to the provisions of this Plan, or the levy of any attachment or similar process upon an
Award, shall be null and void.

	10.	 	EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR
DISABILITY.

     Except as otherwise provided in the pertinent Option Agreement, in the event of a termination
of service (whether as an employee, director or consultant) with the Company or an Affiliate before
the Participant has exercised all Options, the following rules apply:

          a. A participant who ceases to be an employee, director or consultant of the Company or of an
Affiliate (for any reason other than termination “for cause”, Disability, or death for which event
there are special rules in Paragraphs 11, 12, and 13, respectively), may exercise any Option
granted to him or her to the extent that the Option is exercisable on the date of such termination
of service, but only within such term as the Administrator has designated in the pertinent Option
Agreement.

          b. Except as provided in Subparagraph (c) below, or Paragraph 12 or 13, in no event may an
Option Agreement provide, if the Option is intended to be an ISO, that the time for exercise be
later than three (3) months after the Participant’s termination of employment.

          c. The provisions of this Paragraph, and not the provisions of Paragraph 12 or 13, shall apply
to a Participant who subsequently becomes Disabled or dies after the termination of employment,
director status or consultancy, provided, however, in the case of a Participant’s Disability or
death within three (3) months after the termination of employment, director status or

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consultancy, the Participant or the Participant’s Survivors may exercise the Option within
one (1) year after the date of the Participant’s termination of employment, but in no event after
the expiration of the term of the Option.

          d. Notwithstanding anything herein to the contrary, if subsequent to a Participants
termination of employment, termination of director status or termination of consultancy, but prior
to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to
the Participant’s termination, the Participant engaged in conduct which would constitute “cause”,
then such Participant shall forthwith cease to have any right to exercise any Option.

          e. A Participant to whom an Option has been granted under the Plan who is absent from work
with the Company or with an Affiliate because of temporary disability (any disability other than a
permanent and total Disability as defined in Paragraph 1 hereof), or who is on leave of absence for
any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence
alone, to have terminated such Participant’s employment, director status or consultancy with the
Company or with an Affiliate, except as the Administrator may otherwise expressly provide.

          f. Except as required by law or as set forth in the pertinent Option Agreement, Options
granted under the Plan shall not be affected by any change of a Participant’s status within or
among the Company and any Affiliate, so long as the Participant continues to be an employee,
director or Consultant of the Company or any Affiliate.

	11.	 	EFFECT ON OPTIONS OF TERMINATION OF SERVICE “FOR CAUSE”. 

     Except as otherwise provided in the pertinent Option Agreement, the following rules apply if
the Participant’s service (whether as an employee, director or consultant) with the Company or an
Affiliate is terminated “for cause” prior to the time that all his or her outstanding Options have
been exercised:

          a. All outstanding and unexercised Options as of the time the Participant is notified his or
her service is terminated “for cause” will immediately be forfeited.

          b. For purposes of this Plan “cause” shall include (and is not limited to) dishonesty with
respect to the Company or any Affiliate, insubordination, substantial malfeasance or non-feasance
of duty, unauthorized disclosure of confidential information, and conduct substantially prejudicial
to the business of the Company or any Affiliate. The determination of the Administrator as to the
existence of “cause” will be conclusive on the Participant and the Company.

          c. “Cause” is not limited to events which have occurred prior to a Participant’s termination
of service, nor is it necessary that the Administrator finding of “cause” occur prior to
termination. If the Administrator determines, subsequent to a Participant’s termination of service
but prior to the exercise of an Option, that either prior or subsequent to the Participant’s
termination the Participant engaged in conduct which would constitute “cause,” then the right to
exercise any Option is forfeited.

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          d. Any definition in an agreement between the Participant and the Company or an Affiliate,
which contains a conflicting definition of “cause” for termination and which is in effect at the
time of such termination, shall supersede the definition in this Plan with respect to such
Participant.

	12.	 	EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY.

     Except as otherwise provided in the pertinent Option Agreement, a Participant who ceases to be
an employee, director or consultant of the Company or of an Affiliate by reason of Disability may
exercise any Option granted to such Participant:

          a. To the extent exercisable but not exercised on this date of Disability; and

          b. In the event rights to exercise the Option accrue periodically, to the extent of a pro rata
portion of any additional rights as would have accrued had the Participant not become Disabled
prior to the end of the accrual period which next ends following the date of Disability. The
proration shall be based upon the number of days of such accrual period prior to the date of
disability.

     A Disabled Participant may exercise such right only within the period ending one (1) year
after the date of the Participant’s termination of employment, directorship or consultancy, as the
case may be, notwithstanding that the Participant might have been able to exercise the Option as to
some or all of the Shares on a later date if the Participant had not become disabled and had
continued to be an employee, director or consultant or, if earlier, within the originally
prescribed term of the Option.

     The Administrator shall make the determination both of whether Disability has occurred and the
date of its occurrence (unless a procedure for such determination is set forth in another agreement
between the Company and such Participant, in which case such procedure shall be used for such
determination). If requested, the Participant shall be examined by a physician selected or
approved by the Administrator, the cost of which examination shall be paid for by the Company.

	13.	 	EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT.

     Except as otherwise provided in the pertinent Option Agreement, in the event of the death of a
Participant while the Participant is an employee, director or consultant of the Company or of an
Affiliate, such Option may be exercised by the Participant’s Survivors:

          a. To the extent exercisable but not exercised on the date of death; and

          b. In the event rights to exercisable the Option accrue periodically, to the extent of a pro
rata portion of any additional rights which would have accrued had the Participant not died prior
to the end of the accrual period which next ends following the date of death. The proration shall
be based upon the number of days of such accrual period prior to the Participant’s death.

     If the Participant’s Survivors wish to exercise the Option, they must take all necessary steps
to exercise the Option within one (1) year after the date of death of such Participant,
notwithstanding

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that the decedent might have been able to exercise the Option as to some or all of the Shares
on a later date if he or she had nor died and had continued to be an employee, director or
consultant or, if earlier, within he originally prescribed term of the Option.

	14.	 	RESTRICTED STOCK UNITS.

     Restricted Stock Units may be granted at any time and from time to time as determined by the
Administrator. After the Administrator determines that it will grant Restricted Stock Units under
the Plan, it will advise the Participant in an RSU Agreement of the terms, conditions, and
restrictions related to the grant, including the number of Restricted Stock Units and the vesting
criteria. The Administrator will set vesting criteria in its discretion, which, depending on the
extent to which the criteria are met, will determine the number of Shares to be issued in
settlement of such Restricted Stock Units. Upon meeting the applicable vesting criteria, the
Participant will be entitled to receive a payout of Shares as determined by the Administrator and
set forth in the applicable Restricted Stock Unit Agreement. Notwithstanding the foregoing, at any
time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may
reduce or waive any vesting criteria that must be met to receive an issuance of Shares upon
settlement of the Restricted Stock Units. The issuance of Shares in settlement of vested
Restricted Stock Units will be made as soon as practicable after the date(s) determined by the
Administrator and set forth in the RSU Agreement. The Administrator may only settle vested
Restricted Stock Units in Shares. Company intends that any Restricted Stock Units granted
hereunder be exempt from the application of Section 409A of the Code or meet the requirements of
paragraphs (2), (3) and (4) of subsection (a) of Section 409A of the Code and the regulations and
other guidance issued thereunder.

	15.	 	PURCHASE FOR INVESTMENT.

     Unless the offering and sale of the Shares to be issued upon the particular exercise of an
Option or settlement of Restricted Stock Units shall have been effectively registered under the
Securities Act of 1933, as now in force or hereinafter amended (the “1933 Act”), the Company shall
be under no obligation to issue the Shares unless and until the following conditions have been
fulfilled:

          a. The person(s) receiving such Shares shall warrant to the Company, prior to the receipt of
such Shares, that such person(s) are acquiring such Shares for their own respective accounts, for
investment and not with a view to, or for sale in connection with, the distribution of any such
shares, in which event the person(s) acquiring such Share shall be bound by the provisions of the
following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued
pursuant to such exercise of such grant:

“The shares represented by this certificate have been taken for investment
and they may not be sold or otherwise transferred by any person, including a
pledgee, unless (1) either (a) a Registration Statement
with respect such shares shall be effective under the Securities Act of 1933, as amended, or
(b) the Company shall have received an opinion of counsel satisfactory to it
that an exemption from registration under such Act is then available, and
(2) there shall have been compliance with all applicable state securities
laws.”

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          b. At the discretion of the Administrator, the Company shall have received an opinion of its
counsel that the Shares may be issued in compliance with the 1933 Act without registration
thereunder.

	16.	 	DISSOLUTION OR LIQUIDATION OF THE COMPANY.

     Upon the dissolution or liquidation of the Company, all Awards granted under this Plan which
as of such date shall not have been exercised or issued will terminate and become null and void;
provided, however, that if the rights of a Participant or a Participant’s Survivors have not
otherwise terminated and expired, the Participant or the Participant’s Survivors will have the
right immediately prior to such dissolution or liquidation to exercise any Option to the extent
that the Option is exercisable as of the date immediately prior to such dissolution or liquidation.

	17.	 	ADJUSTMENTS.

     Upon the occurrence of any of the following events, a Participant’s rights with respect to any
Award granted to him or her hereunder which has not previously been exercised or issued in full
shall be adjusted as hereinafter provided, unless otherwise specifically provided in the pertinent
Award Agreement:

     A. Stock Dividends and Stock Splits. If (i) the shares of Common Stock shall be
subdivided or combined into a greater or smaller number of shares or if the Company shall issue any
shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional
shares or new or different shares or other securities of the Company or other non-cash assets are
distributed with respect to such shares of Common Stock, the number shares of Common Stock
deliverable upon the exercise or issuance of Shares subject to such Award shall be appropriately
increased or decreased proportionately, and appropriate adjustments shall be made in the purchase
price per share to reflect such events.

     B. Consolidations or Mergers. If the Company is to be consolidated with or acquired
by another entity in a merger, sale of all or substantially all of the Company’s assets or
otherwise (an “Acquisition”), the Administrator or the board of directors of any entity assuming
the obligations of the Company hereunder (the “Successor Board”), shall, as to outstanding Awards,
either (i) make appropriate provision for the continuation of such Awards by substituting on an
equitable basis for the Shares then subject to such Awards either the consideration payable with
respect to the outstanding shares of Common Stock in connection with the Acquisition or the
securities of any successor or acquiring entity; or (ii) upon written notice to the Participants,
provide that all Options must be exercised (either to the extent then exercisable or, at the
discretion of the Administrator, all Options being made fully exercisable for purposes of this
Subparagraph), within a specified number of days of the date of such notice, at the end of which
period the Options shall terminate; or (iii) terminate all Awards in exchange for a cash payment
equal to the excess of the Fair Market Value of the shares subject to such Awards (either to the
extent then exercisable or, at the discretion of the Administrator, all Awards being made fully
exercisable or fully vested for purposes of this Subparagraph) over the exercise price thereof.

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     C. Recapitalization or Reorganization. In the event of a recapitalization or
reorganization of the Company (other than a transaction described in Subparagraph B above) pursuant
to which securities of the Company or of another corporation are issued with respect to the
outstanding shares of Common Stock, a Participant upon exercising an Option and paying the purchase
price or receiving Shares in settlement of a grant of Restricted Stock Units shall be entitled to
receive the securities which would have been received if such Option had been exercised or grant of
Restricted Stock Units settled prior to such recapitalization or reorganization.

     D. Modification of ISO’s. Notwithstanding the foregoing, any adjustments made
pursuant to Subparagraph A, B or C with respect to ISOs shall be made only after the Administrator,
after consulting with counsel for the Company, determines whether such adjustments would constitute
a “modification” of such ISOs (as that term is defined in Section 424(h) of the Code) or would
cause any adverse tax consequences for the holders of such ISOs. If the Administrator determines
that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it
may refrain from making such adjustments, unless the holder of an ISO specifically requests in
writing that such adjustment be made and such writing indicates that the holder has full knowledge
of the consequences of such “modification” on his or her income tax treatment with respect to the
ISO.

	18.	 	ISSUANCE OF SECURITIES.

     Except as expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares subject to Awards.
Except as expressly provided herein, no adjustment shall be made for dividends paid in cash or in
property (including without limitation, securities) of the Company.

	19.	 	FRACTIONAL SHARES.

     No fractional shares shall be issued under the Plan and the person exercising such right shall
receive from the Company cash in lieu of such fractional shares equal to the Fair Market Value
thereof.

	20.	 	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

     The Administrator, at the written request of any Participant, may in its discretion take such
actions as may be necessary to convert such Participant’s ISOs (or any portions thereof) that have
not been exercised on the date of conversion into Non-Qualified Options at any time prior to the
expiration of such ISOs, regardless of whether the Participant is an employee of the Company or an
Affiliate at the time of such conversion. Such actions may include, but not be limited to,
extending the exercise period or reducing the exercise price of the appropriate installments of
such Options. At the time of such conversion, the Administrator (with the consent of the
Participant) may impose such conditions on the exercise of the resulting Non-Qualified Options as
the Administrator in its discretion may determine, provided that such conditions shall not be
inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right
to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall
occur until and unless the

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Administrator takes appropriate action. The Administrator, with the consent of the
Participant, may also terminate any portion of any ISO that has not been exercised at the time of
such conversion.

	21.	 	WITHHOLDING.

     In the event that any federal, state, or local income taxes, employment taxes, Federal
Insurance Contributions Act (“F.I.C.A.”) withholdings or other amounts are required by applicable
law or governmental regulation to be withheld from the Participant’s salary, wages or other
remuneration in connection with the exercise of an Option or issuance of Shares subject to an Award
or a Disqualifying Disposition (as defined in Paragraph 22), the Company may withhold from the
Participant’s compensation, if any, or may require that the Participant advance in cash to the
Company, or to any Affiliate of the Company which employs or employed the Participant, the amount
of such withholdings unless a different withholding arrangement, including the use of shares of the
Company’s Common Stock or a promissory note, is authorized by the Administrator (and permitted by
law) and any such share withholding is withheld at the statutory minimum amount of such
withholdings. For purposes hereof, the fair market value of the shares withheld for purposes of
payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most
recent practicable date prior to the date of exercise. If the fair market value of the shares
withheld is less than the amount of payroll withholdings required, the Participant may be required
to advance the difference in cash to the Company or the Affiliate employer. The Administrator in
its discretion may condition the exercise of an Option or the issuance of Shares subject to an
Award for less than the then Fair Market Value on the Participant’s payment of such additional
withholding.

	22.	 	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

     Each Key Employee who receives an ISO must agree to notify the Company in writing immediately
after the Key Employee makes a Disqualifying Disposition of any shares acquired pursuant to the
exercise of an ISO. A Disqualifying Disposition is any disposition (including any sale) of such
shares before the later of (a) two years after the date the Key Employee was granted the ISO, or
(b) one year after the date the Key Employee acquired Shares by exercising the ISO. If the Key
Employee has died before such stock is sold, these holding period requirements do not apply and no
Disqualifying Disposition can occur thereafter.

	23.	 	TERMINATION OF THE PLAN.

     The Plan will terminate on the date which is ten (10) years from the earlier of the
date of its adoption and the date of its approval by the shareholders of the Company. The Plan may
be terminated at an earlier date by the Board of Directors; provided, however, that any such
earlier termination shall not affect any Award Agreements executed prior to the effective date of
such termination.

	24.	 	AMENDMENT OF THE PLAN AND AGREEMENTS.

     The Plan may be amended by the shareholders of the Company. The Plan may also be amended by
the Administrator, including, without limitation, to the extent necessary to qualify any or all
outstanding Awards granted under the Plan or Awards to be granted under the Plan for

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favorable federal income tax treatment (including deferral of taxation upon exercise) as may
be afforded incentive stock options under Section 422 of the Code, and to the extent necessary to
qualify the issuance of Shares subject to Awards granted, or Awards to be granted, under the Plan
for listing on any national securities exchange or quotation in any national automated quotation
system of securities dealers. Any amendment approved by the Administrator which the Administrator
determines is of a scope that requires shareholder approval shall be subject to obtaining such
shareholder approval. Any modification or amendment of the Plan shall not, without the consent of
a Participant, adversely affect his or her rights under an Award previously granted to him or her.
With the consent of the Participant affected, the Administrator may amend outstanding Award
Agreements in a manner which may be adverse to the Participant but which is not inconsistent with
the Plan. In the discretion of the Administrator, outstanding Award Agreements may be amended by
the Administrator in a manner which is not adverse to the Participant.

	25.	 	EMPLOYMENT OR OTHER RELATIONSHIP.

     Nothing in this Plan or any Award Agreement shall be deemed to prevent the Company or an
Affiliate from terminating the employment, consultancy or director status of a Participant, nor to
prevent a Participant from terminating his or her own employment, consultancy or director status or
to give any Participant a right to be retained in employment or other service by the Company or any
Affiliate for any period of time.

	26.	 	GOVERNING LAW.

     This Plan shall be construed and enforced in accordance with the law of the State of Delaware.

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