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Exhibit 10.41    
    

 
  INDEMNIFICATION AGREEMENT    
    

        This Indemnification Agreement is made as of this 26th day of March, 2003, by and between OAKLEY, INC., a Washington corporation (the "Company"), and Lee
Clow. 

        WHEREAS,
as of the date hereof, the Company has provisions for indemnification of its directors and officers in Article V of its Amended and Restated Articles of Incorporation
(the "Articles of Incorporation") and Article VII of its Bylaws (the "Bylaws") which provide for indemnification of the Company's directors and officers to the fullest extent permitted by law; 

        WHEREAS,
the indemnification provisions in the Bylaws provide that the right of indemnification is a contract right of the covered parties; 

        WHEREAS,
the Bylaws provide that the Company may maintain, at its expense, insurance to protect itself and any of its directors and officers against liability asserted against such
persons incurred in such capacity whether or not the Company has the power to indemnify such persons against the same liability under Section 23B.08.510 or .520 of the Act (as defined below) or
a successor statute; 

        WHEREAS,
the Company and the Indemnified Party recognize that the officers and directors of publicly owned companies are frequently joined as parties to Proceedings (as defined below)
against their respective companies as a result of their serving in such capacity; and 

        WHEREAS,
in order to induce Indemnified Party to serve or continue to serve the Company, the Company wishes to confirm the contract indemnification rights provided in the Bylaws and
agrees to provide Indemnified Party with the benefits contemplated by this Agreement and to supplement the provisions of this Agreement with directors' and officers' liability insurance maintained by
the Company. 

        NOW,
THEREFORE, in consideration of the promises, conditions, representations and warranties set forth herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and Indemnified Party hereby agree as follows: 

        1.    Definitions.    The following terms, as used herein, shall have the following respective meanings; other
capitalized terms used and not specifically defined in this Section 1 shall have the meanings provided elsewhere in the Agreement and in the Bylaws: 

        (a)   "Act"
means the Washington Business Corporation Act RCW Title 23B, as amended from time to time. 

        (b)   "Adjudication"
shall refer to a final, non-appealable decision by a court of competent jurisdiction. "Adjudged" shall have a correlative meaning. 

        (c)   "Covered
Amount" means any Loss, Fine and Expense, to the extent such Loss, Fine or Expense, in type or amount, is not insured under the D&O Insurance maintained by the
Company from time to time. 

        (d)   "Covered
Act" means any act or omission of the Indemnified Party in his or her capacity as a director, officer, employee, agent, fiduciary or consultant of the Company
alleged by any claimant or any claim against Indemnified Party by reason of him or her serving in such a capacity, or by reason of Indemnified Party serving, at the request of the Company, in such
capacity with another corporation, partnership, employee benefit plan, trust or other enterprise, in all cases, whether such alleged act or omission occurred before or after the date of this
Agreement. 

        (e)   "D&O
Insurance" means the liability insurance which the Company may purchase on behalf of Indemnified Party against liability asserted against or incurred by Indemnified
Party in connection with claims arising from Covered Acts, whether or not the Company would have the power to indemnify the individual against the same liability under Section 23B.08.510 or
23B.08.520 of the Act. 

 

        (f)    "Determination"
means a determination, based on the facts known at the time, made: 

          (i)  by
the Board of Directors by majority vote of a quorum consisting of directors not at the time parties to the Proceeding; 

         (ii)  if
a quorum cannot be obtained under clause (i), by majority vote of a duly designated committee of the Board of Directors, in the manner provided by
Section 23B.08.550(2)(b) of the Act; 

        (iii)  by
special legal counsel, selected in the manner provided by Section 23B.08.550(2)(c) of the Act, in a written opinion; or 

        (iv)  by
a majority of the shareholders of the Company, excluding shares owned or voted under the control of directors who are at the time parties to the Proceeding. 

"Determined"
shall have a correlative meaning. 

        (g)   "Excluded
Claim" means any payment for Losses, Fines or Expenses in connection with any claim relating to or arising out of: 

          (i)  acts
or omissions of the Indemnified Party Adjudged to be intentional misconduct or a knowing violation of law; 

         (ii)  conduct
of the Indemnified Party Adjudged to be in violation of Section 23B.08.310 of the Act; or 

        (iii)  any
transaction with respect to which it was Adjudged that such Indemnified Party personally received a benefit in money, property, or services to which the
Indemnified Party was not legally entitled. 

        (h)   "Expenses"
means any reasonable expenses incurred by Indemnified Party as a result of a claim or claims made against Indemnified Party from Covered Acts, including,
without limitation, reasonable counsel fees and costs of investigative, judicial or administrative proceedings or appeals. 

        (i)    "Fines"
means any fine or penalty including, with respect to an employee benefit plan, any excise tax assessed with respect thereto. 

        (j)    "Losses"
means amounts, as determined by an Adjudication, which the Indemnified Party is legally obligated to pay as a result of a claim or claims arising from Covered
Acts, including, without limitation, Fines, damages and judgments and sums paid in settlement of such claim or claims. 

        (k)   "Proceeding"
means any threatened, pending or completed action, suit, proceeding or investigation, whether civil, criminal or administrative whether formal or informal. 

        2.    Maintenance of D&O Insurance.    

        (a)   The
Company hereby covenants and agrees that, so long as Indemnified Party shall continue to serve as a director or executive officer of the Company and thereafter, for
so long as Indemnified Party shall be subject to any possible Proceeding arising from any Covered Act, the Company, subject to Section 2(c), shall maintain in full force and effect D&O
Insurance. 

        (b)   In
all policies of D&O Insurance, Indemnified Party shall be named as an insured in such a manner as to provide Indemnified Party the same rights and benefits, and the
same limitations, as are accorded to the Company's directors or executive officers most favorably insured by such policy. 

        (c)   The
Company shall have no obligation to maintain D&O Insurance if the Company, by majority vote of the Board of Directors, determines in good faith that such insurance
is not 

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reasonably
available, the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is limited by exclusions so as to provide
an insufficient benefit; provided, however, that such decision shall not adversely affect coverage of
D&O Insurance for periods prior to such decision without the unanimous vote of all directors. 

        3.    Indemnification.    The Company shall indemnify Indemnified Party up to the Covered Amount and shall advance any
and all Expenses to Indemnified Party in connection with any Proceeding or any Covered Act, subject, in each case, to the further provisions of this Agreement. This Agreement is made pursuant to and
to effectuate the indemnification provisions set forth in Article V of the Articles of Incorporation and Article VII of the Bylaws. Notwithstanding any other provision of this Agreement,
the Company shall indemnify Indemnified Party to the extent Indemnified Party is successful, on the
merits or otherwise, in the defense of any Proceeding to which Indemnified Party was a party because of being a director, officer, employee, agent, fiduciary or consultant of the Company, against
reasonable Expenses incurred by Indemnified Party in connection with the Proceeding. 

        4.    Excluded Coverage.    The Company shall have no obligation to indemnify Indemnified Party for any Losses or
Expenses which arise from an Excluded Claim. 

        5.    Indemnification Procedures.    

        (a)   Promptly
after receipt by Indemnified Party of notice of the commencement of or the threat of commencement of any Proceeding, Indemnified Party shall, if indemnification
or advancement of Expenses with respect thereto may be sought from the Company under this Agreement, notify the Company of the commencement or the threat of commencement thereof. 

        (b)   If,
at the time of the receipt of such notice, the Company has D&O Insurance in effect, the Company shall give prompt notice of the commencement or the threat of
commencement of such Proceeding to the appropriate insurers in accordance with the procedures set forth in the respective policies in favor of Indemnified Party. The Company shall thereafter take all
necessary or desirable action to cause such insurers to, in accordance with the terms of such policies: (i) advance, to the extent permitted by law, any and all Expenses to Indemnified Party,
(ii) pay, on behalf of Indemnified Party, all amounts (including, without limitation, Losses and Expenses) payable as a result of, or in connection with, such Proceeding and
(iii) reimburse Indemnified Party for all amounts (including, without limitation, Losses and Expenses) paid by Indemnified Party as a result of, or in connection with, such Proceeding. 

        (c)   To
the extent the Company does not, at the time of the commencement of or the threat of commencement of such Proceeding, have applicable D&O Insurance, or if a
Determination is made that any Loss, Fine or Expense of the Indemnified Party arising out of such Proceeding will not be payable under the D&O Insurance then in effect, the Company shall be obligated
to pay the Covered Amount with respect to any Proceeding and to provide counsel satisfactory to Indemnified Party upon the delivery to Indemnified Party of written notice of the Company's election to
do so. After delivery of such notice, the Company will not be liable to Indemnified Party under this Agreement for any legal or other Expenses subsequently incurred by the Indemnified Party in
connection with such defense other than the reasonable Expenses of investigation of Indemnified Party; provided, that Indemnified Party shall have the
right to employ his or her own counsel in connection with the defense of any such Proceeding, the fees and expenses of such counsel incurred after delivery of notice from the Company of its assumption
of such defense to be at the Indemnified Party's sole expense. Notwithstanding the foregoing, if (i) the employment of counsel by Indemnified Party has been previously authorized by the
Company, (ii) Indemnified Party shall have been advised by counsel that there may be a conflict of interest between the Company and Indemnified Party in the conduct of any such defense or
(iii) the Company shall not, in fact, have employed counsel to assume the defense of such 

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Proceeding,
in each such case, the fees and expenses of such counsel retained by Indemnified Party shall be at the expense of the Company. In the event Indemnified Party is entitled to employ counsel
at the Company's expense pursuant to the terms of this Paragraph 5(c), and if so requested in writing by Indemnified Party, the Company shall advance any and all Expenses to Indemnified Party
to the extent permitted by law. 

        (d)   All
payments on account of the Company's indemnification or advancement obligations under Paragraph 5(b) of this Agreement shall be made within sixty
(60) days of Indemnified Party's written request therefor unless a Determination is made that the claims giving rise to Indemnified Party's request are Excluded Claims or otherwise not payable
under this Agreement. All payments on account of the Company's obligations under Paragraph 5(c) of this Agreement shall be made within 20 days of Indemnified Party's written request
therefor, subject to Paragraph 5(e) of this Agreement. 

        (e)   In
the event that (i) a Determination is made that the claims giving rise to Indemnified Party's request are Excluded Claims or otherwise not payable under this
Agreement or (ii) it is Adjudged that the Indemnified Party is not entitled to be indemnified by the Company for Losses or Expenses under this Agreement, the Articles of Incorporation, the
Bylaws or the Act, the Company shall have no obligation to indemnify, or advance any Expenses to Indemnified Party. Further, in either case, Indemnified Party agrees that he or she will reimburse the
Company for all Losses and Expenses paid by the Company and all Expenses advanced by the Company in connection with such Proceeding against Indemnified Party. 

        6.    Settlement.    The Company shall have no obligation to indemnify Indemnified Party under this Agreement for any
amounts paid in settlement of any Proceeding effected without the Company's prior written consent. The Company shall not settle any claim in any manner which would impose any loss or expense on
Indemnified Party without Indemnified Party's prior written consent, unless the Company provides a written undertaking to the Indemnified Party to pay for such loss or expense on behalf of
the Indemnified Party. Neither the Company nor Indemnified Party shall unreasonably withhold their consent to any proposed settlement. 

        7.    Rights Not Exclusive.    The rights provided hereunder shall be in addition to any other rights to which
Indemnified Party may be entitled under the Articles of Incorporation, the Bylaws, the Act, any agreement or vote of shareholders or directors or otherwise, both as to action in Indemnified Party's
official capacity and as to action in any other capacity, and such rights shall continue after Indemnified Party ceases to serve the Company as a director or officer. 

        8.    Enforcement.    

        (a)   Indemnified
Party's rights to indemnification or advancement of Expenses hereunder shall be enforceable by Indemnified Party notwithstanding any adverse Determination.
In any such action, if a prior adverse Determination has been made, the burden of proving that indemnification or advancement of Expenses is required under this Agreement, the Articles of
Incorporation, the Bylaws or the Act shall be on the Indemnified Party. The Company shall have the burden of proving that indemnification or advancement of Expenses is not required under this
Agreement if no prior adverse Determination shall have been made. 

        (b)   In
the event that any action is instituted by Indemnified Party under this Agreement, or to enforce or interpret any of the terms of this Agreement, Indemnified Party
shall be entitled to be paid all court costs and expenses, including reasonable counsel fees, incurred by Indemnified Party with respect to such action, unless the court determines that each of the
material assertions made by Indemnified Party as a basis for such action were not made in good faith or were frivolous. 

4

 

        9.    No Presumptions.    For purposes of this Agreement, the termination of any Proceeding by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendre, or its equivalent, shall not create a presumption that the Indemnified Party did not meet any
particular standard of conduct or have any particular belief or that a court has determined that indemnification or advancement of Expenses by the Company is not permitted hereunder or by applicable
law. In addition, neither the absence of a Determination as to whether Indemnified Party has met any particular standard of conduct or had any particular belief or the existence of a Determination
that Indemnified Party has not met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnified Party to secure an Adjudication that Indemnified
Party should be indemnified or advanced or reimbursed Expenses hereunder or under applicable law, shall be a defense to Indemnified Party's claim or create a presumption that Indemnified Party has not
met any particular standard of conduct or did not have any particular belief. 

        10.    Subrogation.    In the event of payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnified Party, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution
of such documents necessary to enable the Company to effectively bring suit to enforce such rights. 

        11.    No Duplication of Payments.    The Company shall not be liable under this Agreement to make any payment in
connection with any Proceeding against Indemnified Party to the extent Indemnified Party has otherwise actually received payment (under any D&O Insurance, the Articles of Incorporation, the Bylaws,
the Act or otherwise) of the amounts which may be paid hereunder. 

        12.    Severability.    In the event that any provision of this Agreement is determined by a court of competent
jurisdiction to require the Company to do or to fail to do an act which is in violation of the Articles of Incorporation, the Bylaws or the Act or other applicable law, such provision shall be limited
or modified in its application to the minimum extent necessary to avoid such violation, and, as so limited or modified, such provision and the remainder of this Agreement shall be enforceable in
accordance with the respective terms. 

        13.    Choice of Law.    This Agreement shall be governed by, construed and enforced in accordance with the laws of
the State of Washington, without reference to conflicts of law principles therein. 

        14.    Successors and Assigns.    This Agreement shall be (i) binding upon all successors and assigns of the
Company (including any transferee of all or substantially all of the Company's assets and any successor by merger or otherwise by operation of law) and (ii) binding on and inure to the benefit
of the heirs, personal representatives and estate of Indemnified Party. Indemnified Party may not assign this Agreement or any of Indemnified Party's rights hereunder without the prior written consent
of the Company. 

        15.    Amendment.    No amendment, modification, termination or cancellation of this Agreement shall be effective
unless made in a writing signed by each of the parties hereto. 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 

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IN
WITNESS WHEREOF, the Company and Indemnified Party have executed this Indemnification Agreement as of the date first above written. 

	 	 	OAKLEY, INC.
	

 	
 	

 	

 
	 	 	By:	/s/  LINK NEWCOMB      
 Name: Link Newcomb

Title: Chief Operating Officer
	

 	
 	

 	

 
	 	 	/s/  LEE CLOW      
 Lee Clow, Indemnified Party

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Exhibit 10.41

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Exhibit 10.1  

 
 

STOCK OPTION PLAN
  OF
  DEX MEDIA, INC.    
    

        Dex Media, Inc., a Delaware corporation (the "Company"), hereby adopts this Stock Option Plan of Dex
Media, Inc. The purposes of this Plan are as follows: 

        (1)   To
further the growth, development and financial success of the Company and its Subsidiaries (as defined herein), by providing additional incentives to Employees,
Consultants and Independent Directors (as such terms are defined below) of the Company and its Subsidiaries who have been or will be given responsibility for the management or administration of the
Company's (or one of its Subsidiaries') business affairs, by assisting them to become owners of Common Stock, thereby benefiting directly from the growth, development and financial success of the
Company and its Subsidiaries. 

        (2)   To
enable the Company (and its Subsidiaries) to obtain and retain the services of the type of professional, technical and managerial Employees, Consultants and
Independent Directors considered essential to the long-range success of the Company (and its Subsidiaries) by providing and offering them an opportunity to become owners of Common Stock
under Options, including, in the case of certain employees, Options that are intended to qualify as "incentive stock options" under Section 422 of the Code (as defined herein). 

ARTICLE I.

DEFINITIONS  

        Whenever the following terms are used in this Plan, they shall have the meaning specified below unless the context clearly indicates to the contrary. The singular
pronoun shall include the plural where the context so indicates. 

        Section 1.1    "Affiliate" shall mean, with respect to any Person, any
other Person directly or indirectly controlling, controlled by, or under common control with, such Person where "control" shall have the meaning given such term under Rule 405 of the Securities
Act. 

        Section 1.2    "Board" shall mean the Board of Directors of the Company. 

        Section 1.3    "Code" shall mean the Internal Revenue Code of 1986, as
amended. 

        Section 1.4    "Committee" shall mean the Committee appointed as provided
in Section 6.1. 

        Section 1.5    "Common Stock" shall mean the common stock, par value
$0.01 per share, of the Company. 

        Section 1.6    "Company" shall mean Dex Media, Inc., a Delaware
corporation. In addition, "Company" shall mean any corporation assuming, or issuing new employee stock options in substitution for, Incentive Stock Options outstanding under the Plan in a transaction
to which Section 424(a) of the Code applies. 

        Section 1.7    "Consultant" shall mean any consultant or adviser if: 

        (a)   The
consultant or adviser renders bona fide services to the Company or a Subsidiary; 

        (b)   The
services rendered by the consultant or adviser 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; and 

        (c)   The
consultant or adviser is a natural person who has contracted directly with the Company or a Subsidiary to render such services. 

 

        Section 1.8    "Corporate Event" shall mean, as determined by the
Committee (or by the Board, in the case of Options granted to Independent Directors) in its sole discretion, any transaction or event described in Section 7.1(a) or any unusual or nonrecurring
transaction or event affecting the Company, any Affiliate of the Company, or the financial statements of the Company or any Affiliate of the Company, including, but not limited to, the consummation of
the Dex West Transaction, or any change in applicable laws, regulations, or accounting principles.. 

        Section 1.9    "Dex West Transaction" shall mean the transaction
contemplated by that certain Rodney Purchase Agreement dated as of August 19, 2002 entered into by and among Qwest Dex, Inc., Qwest Services Corporation, Qwest Communications
International, Inc. and Dex Holdings LLC. 

        Section 1.10    "Director" shall mean a member of the Board. 

        Section 1.11    "Eligible Representative" for an Optionee shall mean such
Optionee's personal representative or such other person as is empowered under the deceased Optionee's will or the then applicable laws of descent and distribution to represent the Optionee hereunder. 

        Section 1.12    "Employee" shall mean, with respect to any entity, any
employee of such entity (as defined in accordance with the regulations and revenue rulings then applicable under Section 3401(c) of the Code). 

        Section 1.13    "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended. 

        Section 1.14    "Fair Market Value" of a share of Common Stock as of a
given date shall be: 

        (a)   The
closing price of a share of Common Stock on the principal exchange on which such shares are then trading, if any (or as reported on any composite index which
includes such principal exchange), on the most recent trading day prior to such determination date; or 

        (b)   If
Common Stock is not traded on an exchange, the mean between the closing representative bid and asked prices for a share of Common Stock on the most recent trading day
prior to such determination date as reported by Nasdaq or, if Nasdaq is not then in existence, by its successor quotation system; or 

        (c)   If
Common Stock is not publicly traded on an exchange and not quoted on Nasdaq or a successor quotation system, the fair market value of a share of Common Stock as
determined in good faith by the Board or the Committee. 

        Section 1.15    "Incentive Stock Option" shall mean an Option that
conforms to the applicable provisions of Section 422 of the Code and that is designated as an Incentive Stock Option by the Committee. 

        Section 1.16    "Independent Director" shall mean a member of the Board
who is not an Employee of the Company or any of its Subsidiaries. 

        Section 1.17    "Initial Public Offering" shall mean the first issuance
by the Company of any class of common equity securities that is required to be registered (other than on a Form S-8) under Section 12 of the Exchange Act. 

        Section 1.18    "Non-Qualified Stock Option" shall mean an
Option which is not an "incentive stock option" within the meaning of Section 422 of the Code. 

        Section 1.19    "Officer" shall mean an officer of the Company, as
defined in Rule 16a-l(f) under the Exchange Act, as such Rule may be amended from time to time. 

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        Section 1.20    "Option" shall mean an option granted under the Plan to
purchase Common Stock. An Option shall, as determined by the Committee, be either an Incentive Stock Option or a Non-Qualified Stock Option; provided,
however, that any Option granted to an individual who is not an Employee of the Company or one of its Subsidiaries shall be a Non-Qualified Stock Option. 

        Section 1.21    "Optionee" shall mean an Employee, Consultant or
Independent Director to whom an Option is granted under the Plan. 

        Section 1.22    "Person" shall mean an individual, partnership,
corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. 

        Section 1.23    "Plan" shall mean this Stock Option Plan of Dex
Media, Inc., as amended from time to time. 

        Section 1.24    "Principal Stockholders" shall mean Carlyle Partners III,
L.P., a Delaware limited partnership; Welsh, Carson, Anderson & Stowe IX, L.P., a Delaware limited partnership; and each of their respective Affiliates. 

        Section 1.25    "Rule 16b-3" shall mean that certain
Rule 16b-3 promulgated under the Exchange Act, as such Rule may be amended from time to time. 

        Section 1.26    "Securities Act" shall mean the Securities Act of 1933,
as amended. 

        Section 1.27    "Stock Option Agreement" shall have the meaning set forth
in Section 4.1 

        Section 1.28    "Stockholders Agreement" shall mean an agreement by and
between the Optionee and the Company which contains certain restrictions and limitations applicable to the shares of Common Stock acquired upon Option exercise (and/or to other shares of Common Stock,
if any, held by the Optionee during the term of such agreement), the terms of which shall be determined by the Board in its discretion. 

        Section 1.29    "Subsidiary" of any entity shall mean any corporation in
an unbroken chain of corporations beginning with such entity if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations in such chain. 

        Section 1.30    "Termination of Consultancy" shall mean the time when the
engagement of an Optionee as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge, death
or retirement, but excluding a termination where there is a simultaneous commencement of employment with the Company or any Subsidiary. The Committee, in its sole discretion, shall determine the
effect of all matters and questions relating to Termination of Consultancy. 

        Section 1.31    "Termination of Directorship" shall mean the time when an
Optionee who is an Independent Director ceases to be a Director for any reason, including but not by way of limitation, a termination by resignation, failure to be elected or appointed, death or
retirement. The Board, in its sole discretion, shall determine the effect of all matters and questions relating to Termination of Directorship. 

        Section 1.32    "Termination of Employment" shall mean the time when the
employee-employer relationship between an Optionee and the Company (or one of its Subsidiaries) is terminated for any reason, with or without cause, including, but not by way of limitation, a
termination by resignation, discharge, death or retirement, but excluding a termination where there is a simultaneous reemployment by the Company (or one of its Subsidiaries). The Committee shall
determine the effect 

3

 

of
all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment resulted from a discharge for good
cause, and all questions of whether a particular leave of absence constitutes a Termination of Employment; provided, however, that, with respect to
Incentive Stock Options, a leave of absence shall constitute a Termination of Employment if, and to the extent that, such leave of absence interrupts employment for the purposes of
Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under Section 442(a)(2) of the Code. 

ARTICLE II.

SHARES SUBJECT TO PLAN  

        Section 2.1    Shares Subject to Plan.    The shares of stock subject to Options shall be shares of Common
Stock. Subject to Section 7.1, the aggregate number of such shares which may be issued upon exercise of Options shall not exceed 234,591 shares of Common Stock. 

        Section 2.2    Unexercised Options.    If any Option (or portion thereof) expires or is canceled without having
been fully exercised, the number of shares subject to such Option (or portion thereof) but as to which such Option was not exercised prior to its expiration or cancellation may again be optioned
hereunder, subject to the limitations of Section 2.1. 

ARTICLE III.

GRANTING OF OPTIONS  

        Section 3.1    Eligibility.    Subject to Section 3.2, any (a) Employee of the Company or one of
its Subsidiaries; (b) Consultant; or (c) Independent Director shall be eligible to be granted Options. 

        Section 3.2    Qualification of Incentive Stock Options.    Notwithstanding Section 3.1, no Incentive
Stock Option shall be granted to any person who is not an Employee of the Company or one of its Subsidiaries. 

        Section 3.3    Granting of Options to Employees and Consultants    

        (a)   The
Committee shall from time to time: 

          (i)  Select
from among the Employees and Consultants of the Company and any of its Subsidiaries (including those to whom Options have been previously granted under the Plan)
such of them as in its opinion should be granted Options; 

         (ii)  Determine
the number of shares to be subject to such Options granted to such Employees and Consultants and, subject to Section 3.2, determine whether such
Options are to be Incentive Stock Options or Non-Qualified Stock Options; and 

        (iii)  Determine
the terms and conditions of such Options, consistent with the Plan. 

        (b)   Upon
the selection of an Employee or Consultant of the Company or any of its Subsidiaries to be granted an Option pursuant to Section 3.3(a), the Committee shall
instruct the corporate secretary or another authorized Officer of the Company to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting
the generality of the preceding sentence, the Committee may require as a condition to the grant of an Option to such an Employee or Consultant that such Employee or Consultant surrender for
cancellation some or all of the unexercised Options which have been previously granted to him or her. An Option the grant of which is conditioned upon such surrender may have an Option price lower (or
higher) than the Option price of the surrendered Option, may cover the same (or a lesser or greater) number of shares as the surrendered Option, may contain such other terms as the Committee deems
appropriate and shall be exercisable in accordance with its terms, without 

4

 

regard
to the number of shares, price, period of exercisability or any other term or condition of the surrendered Option. 

        Section 3.4    Granting of Option to Independent Directors    

        (a)   The
Board shall from time to time: 

          (i)  Select
from among the Independent Directors (including those to whom Options have previously been granted under the Plan) such of them as in its opinion should be
granted Options; 

         (ii)  Determine
the number of shares to be subject to such Options granted to such selected Independent Directors; and 

        (iii)  Determine
the terms and conditions of such Options, consistent with the Plan; provided, however, that all Options
granted to Independent Directors shall be Non-Qualified Stock Options. 

        (b)   Upon
the selection of an Independent Director to be granted an Option pursuant to Section 3.4(a), the Board shall instruct the corporate secretary or another
authorized Officer of the Company to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting the generality of the preceding sentence,
the Board may require as a condition to the grant of an Option to an Independent Director that the Independent Director surrender for cancellation some or all of the unexercised Options which have
been previously granted to him or her. An Option the grant of which is conditioned upon such surrender may have an Option price lower (or higher) than the Option price of the surrendered Option, may
cover the same (or a lesser or greater) number of shares as the surrendered Option, may contain such other terms as the Board deems appropriate and shall be exercisable in accordance with its terms,
without regard to the number of shares, price, period of exercisability or any other term or condition of the surrendered Option. 

ARTICLE IV.

TERMS OF OPTIONS  

        Section 4.1    Stock Option Agreement.    Each Option shall be evidenced by a written Stock Option Agreement,
which shall be executed by the Optionee and an authorized Officer of the Company and which shall contain such terms and conditions as the Committee (or the Board, in the case of Options granted to
Independent Directors) shall determine, consistent with the Plan. Stock Option Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to qualify such
Options as "incentive stock options" within the meaning of Section 422 of the Code. 

        Section 4.2    Exercisability of Options    

        (a)   Each
Option shall become exercisable according to the terms of the applicable Stock Option Agreement; provided, however,
that by a resolution adopted after an Option is granted the Committee (or the Board, in the case of Options granted to Independent Directors) may, on such terms and conditions as it may determine to
be appropriate, accelerate the time at which such Option or any portion thereof may be exercised. 

        (b)   Except
as otherwise provided in the applicable Stock Option Agreement, no portion of an Option which is unexercisable at Termination of Employment or Termination of
Directorship, as applicable, shall thereafter become exercisable. 

        (c)   To
the extent that the aggregate Fair Market Value of stock with respect to which "incentive stock options" (within the meaning of Section 422 of the Code, but
without regard to Section 422(d) of the Code) are exercisable for the first time by an Optionee during any calendar year (under the Plan and all other incentive stock option plans of the
Company or any Subsidiary 

5

 

thereof)
exceeds $100,000, such options shall be treated and taxable as Non-Qualified Stock Options. The rule set forth in the preceding sentence shall be applied by taking options into
account in the order in which they were granted, and the stock issued upon exercise of options shall designate whether such stock was acquired upon exercise of an Incentive Stock Option. For purposes
of these rules, the Fair Market Value of stock shall be determined as of the date of grant of the Option granted with respect to such stock. 

        Section 4.3    Option Price    The price of the shares subject to each Option shall be set by the Committee (or
the Board, in the case of Options granted to Independent Directors); provided, however, that in the case of an Incentive Stock Option, the price per
share shall be not less than 100% of the Fair Market Value of such shares on the date such Option is granted; and provided, further, that in the case of
an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company, the price per share shall
not be less than 110% of the Fair Market Value of such shares on the date such Incentive Stock Option is granted. 

        Section 4.4    Expiration of Options.    No Option may be exercised to any extent by anyone after the first to
occur of the following events: 

        (a)   The
expiration of ten years from the date the Option was granted; or 

        (b)   With
respect to an Incentive Stock Option in the case of an Optionee owning (within the meaning of Section 424(d) of the Code), at the time the Incentive Stock
Option was granted, more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary, the expiration of five years from the date the Incentive Stock Option was
granted. 

        Section 4.5    At-Will Employment.    Nothing in the Plan or in any Stock Option Agreement
hereunder shall confer upon any Optionee any right to continue in the employ of, or as a Consultant for, the Company or any Subsidiary, or shall interfere with or restrict in any way the rights of the
Company and any Subsidiary, which are hereby expressly reserved, to discharge any Optionee at any time for any reason whatsoever, with or without cause, except to the extent expressly provided
otherwise in a written agreement between the Optionee and the Company or any Subsidiary. 

ARTICLE V.

EXERCISE OF OPTIONS  

        Section 5.1    Person Eligible to Exercise.    During the lifetime of the Optionee, only he or she may exercise
an Option (or any portion thereof); provided, however, that the Optionee's Eligible Representative may exercise his or her Option during the period of
the Optionee's disability (as defined in Section 22(e)(3) of the Code) notwithstanding that an Option so exercised may not qualify as an Incentive Stock Option. After the death of the Optionee,
any exercisable portion of an Option may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Stock Option Agreement, be exercised by his or her Eligible
Representative. 

        Section 5.2    Partial Exercise.    At any time and from time to time prior to the time when the Option becomes
unexercisable under the Plan or the applicable Stock Option Agreement, the exercisable portion of an Option may be exercised in whole or in part; provided,
however, that the Company shall not be required to issue fractional shares and the Committee (or the Board, in the case of Options granted to Independent Directors) may, by the
terms of the Option, require any partial exercise to exceed a specified minimum number of shares. 

        Section 5.3    Manner of Exercise.    An exercisable Option, or any exercisable portion thereof, may be
exercised solely by delivery to the corporate secretary of all of the following prior to the time when 

6

 

such
Option or such portion becomes unexercisable under the Plan or the applicable Stock Option Agreement: 

        (a)   Notice
in writing signed by the Optionee or his or her Eligible Representative, stating that such Option or portion is exercised, and specifically stating the number of
shares with respect to which the Option is being exercised; 

        (b)   A
copy of the Stockholders Agreement signed by the Optionee or Eligible Representative, as applicable; 

        (c)   Full
payment for the shares with respect to which such Option or portion is thereby exercised: 

          (i)  In
cash or by personal, certified, or bank cashier check; or 

         (ii)  With
the consent of the Committee (or the Board, in the case of Options to Independent Directors), (A) shares of Common Stock which have been owned by the
Optionee for at least six months duly endorsed for transfer to the Company with a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion
thereof; (B) except with respect to Incentive Stock Options, shares of the Common Stock issuable to the Optionee upon exercise of the Option, with a Fair Market Value on the date of Option
exercise equal to the aggregate Option price of the shares with respect to which such Option or portion is thereby exercised; (C) following an Initial Public Offering, delivery of a notice that
the Optionee has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient
portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price; or (D) any combination of the consideration listed in this subsection (c); 

        (d)   The
payment to the Company (in cash or by personal, certified or bank cashier or by any other means of payment approved by the Committee) of all amounts necessary to
satisfy any and all federal, state and local tax withholding requirements arising in connection with the exercise of the Option; 

        (e)   Such
representations and documents as the Committee (or the Board, in the case of Options granted to Independent Directors) deems necessary or advisable to effect
compliance with all applicable provisions of the Securities Act, Exchange Act and any other federal or state securities laws or regulations. The Committee (or the Board, in the case of Options granted
to Independent Directors) may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share
certificates and issuing stop-transfer orders to transfer agents and registrars; and 

        (f)    In
the event that the Option or portion thereof shall be exercised pursuant to Section 5.1 by any person or persons other than the Optionee, appropriate proof of
the right of such person or persons to exercise the Option or portion thereof. 

        Section 5.4    Conditions to Issuance of Stock Certificates.    The shares of stock issuable and deliverable
upon the exercise of an Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares which have then been reacquired by the Company. A certificate of shares
will be delivered to the Optionee at the Company's principal place of business within thirty days of receipt by the Company of the written notice and payment, unless an earlier date is agreed upon.
Notwithstanding the above, the Company shall not be required to issue or deliver any certificate or 

7

 

certificates
for shares of stock purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 

        (a)   The
admission of such shares to listing on any and all stock exchanges on which such class of stock is then listed; 

        (b)   The
execution by the Optionee and delivery to the Company of a Stockholders Agreement in the Company's customary form; 

        (c)   The
completion of any registration or other qualification of such shares under any state or federal law or under the rulings or regulations of the Securities and
Exchange Commission or any other governmental regulatory body, which the Committee (or the Board, in the case of Options granted to Independent Directors) shall, in its sole discretion, deem necessary
or advisable; 

        (d)   The
obtaining of any approval or other clearance from any state or federal governmental agency which the Committee (or the Board, in the case of Options granted to
Independent Directors) shall, in its sole discretion, determine to be necessary or advisable; and 

        (e)   The
payment to the Company of all amounts which it is required to withhold under federal, state or local law in connection with the exercise of the Option. 

        Section 5.5    Rights as Stockholders.    The holder of an Option shall not be, nor have any of the rights or
privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of an Option unless and until such holder has signed a Stockholders Agreement and
certificates representing such shares have been issued by the Company to such holder. 

        Section 5.6    Transfer Restrictions.    Shares acquired upon exercise of an Option shall be subject to the
terms and conditions of a Stockholders Agreement. In addition, the Committee (or the Board, in the case of
Options granted to Independent Directors), in its sole discretion, may impose further restrictions on the transferability of the shares purchasable upon the exercise of an Option as it deems
appropriate. Any such restriction shall be set forth in the respective Stock Option Agreement and may be referred to on the certificates evidencing such shares. The Committee may require the Employee
to give the Company prompt notice of any disposition of shares of stock, acquired by exercise of an Incentive Stock Option, within two years from the date of granting such Option or one year after the
transfer of such shares to such Employee. The Committee may direct that the certificates evidencing shares acquired by exercise of an Incentive Stock Option refer to such requirement. 

ARTICLE VI.

ADMINISTRATION  

        Section 6.1    Committee.    Prior to an Initial Public Offering, the Committee shall be the Compensation
Committee of the Board. Following an Initial Public Offering, if any, the full Board shall administer the Plan unless and until there is appointed a Compensation Committee (or another committee or a
subcommittee of the Board assuming the functions of the Committee under the Plan) that shall consist solely of two or more Independent Directors appointed by and holding office at the pleasure of the
Board, each of whom is both a "non-employee director" as defined by Rule 16b-3 and an "outside director" for purposes of Section 162(m) of the Code. Appointment
of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may be filled by
the Board in its sole discretion. Any action required or permitted to be taken by the Committee hereunder or under any Stock Option Agreement may be taken by the Board. 

        Section 6.2    Delegation of Authority.    The Committee may, but need not, from time to time delegate some or
all of its authority to grant Options under the Plan to a committee or subcommittee 

8

 

consisting
of one or more members of the Committee or of one or more Officers of the Company; provided, however, that the Committee may not delegate its
authority to grant Options to individuals (a) who are subject on the date of the grant to the reporting rules under Section 16(a) of the Exchange Act, (b) whose compensation the
Committee determines is, or may become, subject to the deduction limitations set forth in Section 162(m) of the Code or (c) who are Officers of the Company who are delegated authority by
the Committee hereunder. Any delegation hereunder shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation, and the Committee may at any time rescind
the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 6.2 shall serve in such capacity at the pleasure of the Committee. 

        Section 6.3    Duties and Powers of the Committee.    It shall be the duty of the Committee to conduct the
general administration of the Plan in accordance with its provisions. The Committee shall have the power to interpret the Plan and the Options and to adopt such rules for the administration,
interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. Notwithstanding the foregoing, the full Board, acting by a majority of its
members in office, shall conduct the general administration of the Plan with respect to Options granted to Independent Directors. Any such interpretations and rules in regard to Incentive Stock
Options shall be consistent with the terms and conditions applicable to "incentive stock options" within the meaning of Section 422 of the Code. All determinations and decisions made by the
Committee under any provision of the Plan or of any Option granted thereunder shall be final, conclusive and binding on all persons. 

        Section 6.4    Compensation, Professional Assistance, Good Faith Actions.    The members of the Committee shall
receive such compensation, if any, for their services hereunder as may be determined by the Board. All expenses and liabilities incurred by the members of the Committee or the Board in connection with
the administration of the Plan shall be borne by the Company. The Committee or the Board may employ attorneys, consultants, accountants, appraisers, brokers or other persons. The Committee, the
Company and its Officers and Directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the
Committee and the Board in good faith shall be final and binding upon all Optionees, the Company and all other interested persons. No member of the Board shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or the Options, and all members of the Board shall be fully protected by the Company in respect to any such action,
determination or interpretation. 

ARTICLE VII.

OTHER PROVISIONS  

        Section 7.1    Changes in Common Stock; Disposition of Assets and Corporate Events    

        (a)   Subject
to Section 7.1(d), in the event that the Committee (or the Board, in the case of Options granted to Independent Directors) determines that any dividend or
other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets
of the Company, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar
corporate transaction or event, in the Committee's sole discretion (or in the case of Options granted to Independent Directors, the Board's sole discretion), affects the Common Stock such that an
adjustment is determined by the Committee (or the Board, in the case of Options granted to Independent Directors) to be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or with respect to an Option, then the Committee 

9

 

(or
the Board, in the case of Options granted to Independent Directors) shall, in such manner as it may deem equitable, adjust any or all of: 

          (i)  The
number and kind of shares of Common Stock (or other securities or property) with respect to which Options may be granted under the Plan (including, but not limited
to, adjustments of the limitations in Section 2.1 on the maximum number and kind of shares which may be issued); 

         (ii)  The
number and kind of shares of Common Stock (or other securities or property) subject to outstanding Options; 

        (iii)  The
exercise price with respect to any Option; and 

        (iv)  The
financial or other "targets" specified in each Stock Option Agreement for determining the exercisability of Options. 

        (b)   Subject
to Section 7.1(d) and the terms of outstanding Stock Option Agreements, upon the occurrence of a Corporate Event, the Committee (or the Board, in the case
of options granted to Independent Directors), in its sole discretion, is hereby authorized to take any one or more of the following actions whenever the Committee (or the Board, in the case of Options
granted to Independent Directors) determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the
Plan or with respect to any Option under this Plan, to facilitate such Corporate Event or to give effect to such changes in laws, regulations or principles: 

          (i)  In
its sole discretion, and on such terms and conditions as it deems appropriate, the Committee (or the Board, in the case of Options granted to Independent Directors)
may provide, either by the terms of the applicable Stock Option Agreement or by action taken prior to the occurrence of such Corporate Event and either automatically or upon the Optionee's request,
for either the purchase of any such Option for an amount of cash, securities, or other property equal to the amount that could have been attained upon the exercise of the vested portion of such Option
(and such additional portion of the Option as the Board or Committee may determine) immediately prior to the occurrence of such transaction or event, or the replacement of such vested (and other)
portion of such Option with other rights or property selected by the Committee (or the Board, in the case of Options granted to Independent Directors) in its sole discretion; 

         (ii)  In
its sole discretion, the Committee (or the Board, in the case of Options granted to Independent Directors) may provide, either by the terms of the applicable Stock
Option Agreement or by action taken prior to the occurrence of such Corporate Event, that the Option (or any portion thereof) cannot be exercised after such event; 

        (iii)  In
its sole discretion, and on such terms and conditions as it deems appropriate, the Committee (or the Board, in the case of Options granted to Independent Directors)
may provide, either by the terms of the applicable Stock Option Agreement or by action taken prior to the occurrence of such Corporate Event, that for a specified period of time prior to such
Corporate Event, such Option shall be exercisable as to all shares covered thereby or a specified portion of such shares, notwithstanding anything to the contrary in this Plan or the applicable Stock
Option Agreement; 

        (iv)  In
its sole discretion, and on such terms and conditions as it deems appropriate, the Committee (or the Board, in the case of Options granted to Independent Directors)
may provide, either by the terms of the applicable Stock Option Agreement or by action taken prior to the occurrence of such Corporate Event, that upon such event, such Option (or any portion thereof)
be assumed by the successor or survivor corporation, or a parent or 

10

 

subsidiary
thereof (including without limitation any common parent of the Company and any other company or companies), or shall be substituted for by similar options, rights or awards covering the
stock of the successor or survivor corporation, or a parent or subsidiary thereof (including without limitation any common parent of the Company and any other company or companies), with appropriate
adjustments as to the number and kind of shares and prices; and 

         (v)  In
its sole discretion, and on such terms and conditions as it deems appropriate, the Committee (or the Board, in the case of Options granted to Independent Directors)
may make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Options (or any portion thereof) and/or in the terms and conditions of
(including the exercise price), and the criteria included in, outstanding Options and Options which may be granted in the future. 

        (c)   Subject
to Section 7.1(d), the Committee (or the Board, in the case of Options granted to Independent Directors) may, in its sole discretion, include such further
provisions and limitations in any Stock Option Agreement as it may deem equitable and in the best interests of the Company and its Affiliates. 

        (d)   With
respect to Incentive Stock Options, no adjustment or action described in this Section 7.1 or in any other provision of the Plan shall be authorized to the
extent that such adjustment or action would cause the Plan to violate Section 422(b)(1) of the Code or any successor provisions thereto, unless the Committee determines that the Plan and/or the
Options are not to comply with Section 422(b)(1) of the Code. The number of shares of Common Stock subject to any Option shall always be rounded up to the next higher whole number. 

        Section 7.2    Options Not Transferable.    No Option or interest or right therein or part thereof shall be
liable for the debts, contracts or engagements of the Optionee or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such disposition be voluntary or involuntary or by operation of law, by judgment, levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that nothing in this
Section 7.2 shall prevent transfers by will or by the applicable laws of descent and distribution. 

        Section 7.3    Amendment, Suspension or Termination of the Plan.    The Plan may be wholly or partially amended
or otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee. However, without stockholder approval within 12 months before or after such action
no action of the Board or the Committee may, except as provided in Section 7.1, increase any limit imposed in Section 2.1 on the maximum number of shares which may be issued on exercise
of Options, reduce the minimum Option price requirements of Section 4.3(a), or extend the limit imposed in this Section 7.3 on the period during which options may be granted. Except as
provided by Section 7.1, neither the amendment, suspension nor termination of the Plan shall, without the consent of the holder of the Option, alter or impair any rights or obligations under
any Option theretofore granted. No Option may be granted during any period of suspension nor after termination of the Plan, and in no event may any Option be granted under this Plan after the
expiration of ten years from the date the Plan is adopted by the Board. 

        Section 7.4    Effect of Plan Upon Other Option and Compensation Plans.    The adoption of this Plan shall not
affect any other compensation or incentive plans in effect for the Company or any Affiliate. Nothing in this Plan shall be construed to limit the right of the Company or any Affiliate (a) to
establish any other forms of incentives or compensation for directors or employees of the Company (or any Affiliate); or (b) to grant or assume options otherwise than under this Plan in
connection with any proper corporate purpose, including, but not by way of limitation, the grant or assumption of options in 

11

 

connection
with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, firm or association. 

        Section 7.5    Approval of Plan by Stockholders.    This Plan will be submitted for the approval of the
Company's stockholders within 12 months after the date of the Board's initial adoption of this Plan. No Option may be exercised to any extent by anyone unless and until the Plan is so approved
by the stockholders, and if such approval has not been obtained by the end of said 12-month period, the Plan and all Options theretofore granted shall thereupon be canceled and become null
and void. 

        Section 7.6    Titles.    Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of the Plan. 

        Section 7.7    Conformity to Securities Laws.    The Plan is intended to conform to the extent necessary with
all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder to the extent the Company or any
Optionee is subject to the provisions thereof. Notwithstanding anything herein to the contrary, the Plan shall be administered, and Options shall be granted and may be exercised, only in such a manner
as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and Options granted hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations. 

        Section 7.8    Governing Law.    To the extent not preempted by federal law, the Plan shall be construed in
accordance with and governed by the laws of the state of Delaware. 

        Section 7.9    Severability.    In the event any portion of the Plan or any action taken pursuant thereto shall
be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provisions had not been included, and the illegal or invalid action shall be null and void. 

*
* * * * 

        I
hereby certify that the foregoing Plan was duly adopted by the Board of Directors of Dex Media, Inc. as of November 8, 2002. 

        Executed
as of February 27, 2003. 

	 	 	/s/  GEORGE BURNETT      
 Officer

12

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STOCK OPTION PLAN OF DEX MEDIA, INC.

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