Document:

License and Supply Agreement

  Exhibit 10.1
 THE MARKED PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED 
SEPARATELY WITH THE COMMISSION
PURSUANT TO A REQUEST FOR 
CONFIDENTIAL TREATMENT

	
LICENSE AND SUPPLY AGREEMENT
 between
 ON COMMAND VIDEO CORPORATION
 and
 ALLIN
INTERACTIVE CORPORATION
 JUNE 30, 2003

  SUPPLY AND LICENSE AGREEMENT
          This SUPPLY AND LICENSE AGREEMENT together with its Schedules (the “Agreement”) is
entered into this 30th day of June 2003 (the “Effective Date”) by ALLIN INTERACTIVE CORPORATION, a Delaware corporation having its principal office at 381 Mansfield Avenue, Suite
400, Pittsburgh, PA 15220 (“Allin”), and ON COMMAND VIDEO CORPORATION, a Delaware corporation with offices at 4610 South Ulster, Suite 600, Denver, Colorado 80237
(“OCV”). For the purpose of this Agreement, Allin and OCV are each a “Party” and are collectively, the “Parties.”
 RECITALS
          WHEREAS, Allin is in the business of, among other things, designing,
developing, licensing and supporting computer software products and providing custom software development, system planning and migration, training and other consulting services;
          WHEREAS, OCV is in the business of, among other things, supplying equipment and licensing software for in-room entertainment in the hospitality
industry; and
          WHEREAS, Allin desires to engage OCV to supply equipment and license software for use in its business on the terms
and conditions of this Agreement.
          NOW, THEREFORE, in consideration of the foregoing and the covenants, agreements
and conditions set forth herein, the Parties hereby agree as follows:
 AGREEMENT
 Section  1.    Definitions.
 As used in this Agreement, the following terms shall have the following meanings:

	 	        1.1    	“Affiliate”  of any specified person means any other person directly or indirectly Controlling, Controlled by or under common Control with, such specified
person.

 

	 	        1.2      	“Change of Control”  means a change in control of a Party after the date hereof in any circumstance where a Party is a party to a merger, consolidation, sale of assets or
other reorganization, as a consequence of which thirty percent (30%) or more of the control, ownership or management of either of the Party or the parent corporation of such Party, as it was prior to such event occurring, changes.

 

	 	        1.3      	“Control”  (including the terms “Controlled by” and “under common Control with”) means the possession, direct or indirect, of the affirmative power to
direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.

 
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	 	        1.4    	“Derivative Software”  means Software as modified or enhanced by Allin, which modification or enhancement shall be the joint property of the Parties. The Parties shall
jointly own all right, title and interest to Derivative Software, exclusive of the Software.

 

	 	        1.5    	“Equipment”  means any items listed on Schedule A, including, without limitation, all Software in the Equipment, as such Schedule is updated by OCV in its sole discretion
on an annual basis or upon 90 days prior written notice.

 

	 	        1.6    	“Event of Insolvency”  means an event when an order is made or a resolution is passed for the winding up of a person, or a provisional liquidator is appointed in respect
of such person, or an administration order is made in respect of such person, or a receiver (which expression shall include an administrative receiver) is appointed in respect of such person or all or any of its assets and is not discharged within a
period of 30 days, or such person is unable to pay its debts as due, or such person is the object of any petition or proceeding (whether voluntary or involuntary) for bankruptcy or judicial liquidation or other law for relief of creditors before any
competent court or any event occurs which under the laws of any relevant country has an analogous effect to any of the foregoing.

 

	 	        1.7    	“Excluded Software”  means Software in Equipment that provides games, internet access or music content functionality or any other functionality that OCV provides in hotel
rooms, except that Excluded Software shall not include Software needed to communicate from the in-room device to the head end and Software to view movies and similar programming.

 

	 	        1.8    	“Intellectual Property Rights”  means any:

 

	 	        (a)    	patents whether registered or unregistered;

	 	        (b)    	inventions whether or not capable of protection by patent or registration;

	 	        (c)    	rights in commercial information and technical information, including know-how, research and development data, manufacturing methods and data, specifications and drawings, formulas, trade secrets,
algorithms, prototypes and research materials;

	 	        (d)    	copyrights (including without limitation any application, registration or renewal related thereto), registered designs or design rights (whether or not capable of protection by registration), trademarks
(including without limitation service marks, logos, sound logos, certification marks, and trade names, together with any applications, registrations and renewals for any of the foregoing and the goodwill associated with each), mask work rights,
database rights, and moral rights;

	 	        (e)    	applications for the grant of rights of the foregoing descriptions; and

	 	        (f)    	rights of a similar or analogous nature to any of the foregoing whether in existence now or in the future and wherever located in the world.

 

	 	        1.9    	“Island Hotels”  means the hotels set forth on Schedule B. OCV must approve in writing the addition of any hotels to Schedule B.

 
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	 	        1.10    	“Losses”  means all losses, costs, expenses, liabilities and damages reasonably incurred, resulting from or relating to any settlement, litigation or final judgment, and
all related reasonable costs and expenses, including reasonable legal fees, fines, interest and penalties.

 

	 	        1.11    	“Markets”  means cruise lines, hospital and educational facilities and Island Hotels.

 

	 	        1.12    	“Order”  means a non-cancelable purchase order issued by Allin to OCV confirming the purchase of Equipment specified in the Order and providing pricing, delivery
destination and other applicable delivery instructions.

 

	 	        1.13    	“Software”  means (i) all object code software that is owned by OCV and necessary for the operation or maintenance of or resident on the Equipment; (ii) all object code
software that is owned by OCV and required, used and/or made available to Allin to operate and maintain the Equipment as of the date immediately prior to the Effective Date; (iii) any modifications, updates or bug fixes in object code form of the
Software which OCV may provide to Allin; (iv) third party software, if any, in the Equipment or Software to which OCV has the right to sublicense to Allin and for which OCV has paid pursuant to such terms of the third party licensor; or (v) any
Software contained in Derivative Software (but excluding the remaining portion of Derivative Software).

 

	 	        1.14    	“Source Code”  means any human readable code transferred to Allin by OCV pursuant to this Agreement.

 

	 	        1.15    	“Source Code License”  is defined in Section 4.1.

 

	 	        1.16    	“Spare Parts”  means spare parts for Equipment.

 

	 	        1.17    	“Sublicensee”  means a third party in the Markets with which Allin enters into an Operating Agreement (as defined in Section 4.4).

 

	 	        1.18    	“Supplier Agreement”  means the Supplier Agreement between Allin and On Command Corporation, dated January 24, 1999, as amended.

 

	 	        1.19    	“Technology”  means algorithms, designs, drawings, formulae, know-how, ideas, mask works, inventions, data, programs, improvements, developments, discoveries, concepts,
methodologies, techniques, processes, software, specifications, and other forms and types of intangible property, in each case whether or not patentable.

 

	 	        1.20    	“Trademarks”  means the marks “On Command,” “Roommate,” “TeleMate,” and “MiniMate” and any additional trademarks that are used by
OCV on or in connection with the Equipment and Software and provided to Allin under this Agreement.

 
 Section  2.   Term.
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  The term of this Agreement begins on the Effective Date and expires five years after the Effective Date (the “Term”).
 Section  3.    Supply of Equipment.

	 	        3.1    	Ordering.  To order Equipment, Allin shall place an Order with OCV. Any term or condition set forth in an Order that is inconsistent with or in addition to this Agreement will be
of no force or effect, unless mutually and expressly agreed by the Parties in writing. Subject to the terms of this Agreement and the reasonable availability of the Equipment to OCV, OCV shall accept all Orders; provided, however, OCV shall not be
obligated to accept Orders more than two years prior to the required delivery date. If OCV is unable to fulfill the terms of the Order, OCV shall notify Allin of such fact within ten business days after receipt of the Order.

 

	 	        3.2    	Packaging.  OCV shall ensure that all Equipment is packaged and shipped with due care and in such a manner as to prevent damage during transit and in accordance with industry
standards.

 

	 	        3.3    	Shipment.  The Equipment shall be delivered to Allin’s designated shipping address FOB OCV’s facilities unless otherwise agreed by the Parties in writing. Risk of loss
shall pass to Allin upon delivery to the carrier at OCV’s facility, at which time Allin shall acquire good and marketable title to the Equipment.

 

	 	        3.4    	Discontinuation of Equipment.  OCV may from time to time change its product line and/or discontinue providing Equipment upon 6 months prior written notice to Allin. If OCV is
manufacturing or sourcing alternatives to discontinued Equipment on an ongoing basis for its other non-hotel distributors, OCV shall make such alternatives available to Allin.

 

	 	        3.5    	 Delinquent Payment by Allin.  After prior written notification to Allin of intent to suspend shipments, OCV shall be entitled to suspend all shipments of Equipment at any time
when amounts owing under this Agreement, that have not been put in reasonable dispute by Allin (provided Allin timely pays all undisputed amounts of the invoice at issue), are past due. In addition, should Allin fail to make any undisputed payment
within 30 days of its due date, as determined in Section 5.2, all future payments for Equipment shall be made as follows (assuming OCV has not terminated this Agreement pursuant to Section 12): Allin shall pay [REDACTED – CONFIDENTIAL TREATMENT
REQUESTED] percent ([REDACTED – CONFIDENTIAL TREATMENT REQUESTED]%) of the purchase price of any Order upon placing the Order, and OCV shall invoice Allin for the remaining [REDACTED – CONFIDENTIAL TREATMENT REQUESTED] percent ([REDACTED
– CONFIDENTIAL TREATMENT REQUESTED]%) of the purchase price in accordance with Section 5.2. 

 
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  Section  4.    Grant of Licenses.

	 	        4.1    	Grant of License to Allin.  Subject to the terms and conditions of this Agreement and in consideration of the fees payable by Allin to OCV, OCV hereby grants to Allin a (i)
non-exclusive, perpetual license to use, market, distribute and maintain the Software in the Markets in connection with the Equipment to Sublicensees; (ii) a nonexclusive license for the Term to modify the Source Code of the Software into Derivative
Software solely for distribution to Sublicensees in accordance with the terms and conditions of this Agreement (“Source Code License”); and (iii) the right to grant to Sublicensees in the Markets a perpetual sublicense to use the Software
in the Equipment for in-room entertainment. Notwithstanding the foregoing, Allin shall have no rights under subsections (i) and (iii) above as to Excluded Software unless Allin complies with the conditions set forth in Section 4.6.

 

	 	        4.2    	Prohibition.  Allin expressly acknowledges and agrees that only those Allin employees directly involved in making modifications to the Source Code shall have access to the Source
Code, provided, however, that consultants working on-site at Allin’s offices who meet the following requirements shall be permitted to make modifications to the Source Code:

 

	 	        (a)    	Such third party programmer (“Programmer”) is not currently an existing supplier, or an employee or consultant for an existing supplier, of pay-per-view systems; and

	 	        (b)    	Allin obtains a confidentiality agreement from Programmer, which confidentiality agreement shall be in a form approved by OCV in its reasonable discretion.

 

	 	        4.3    	Breach of Source Code Obligations.  Allin acknowledges that any unauthorized use or disclosure of any portion of the Source Code of the Software will cause irreparable injury to
OCV and that no adequate or complete remedy will be available to OCV to compensate for such injury. Accordingly, Allin also acknowledges that OCV will be entitled to injunctive relief in the event of such unauthorized use or disclosure by Allin, any
of its employees or agents, in addition to whatever remedies OCV might have at law. The terms of Section 11 shall not apply to any breach by Allin of its obligations relating to the Source Code of the Software.

 

	 	        4.4    	Execution of Sublicensee Agreement.  As a condition precedent to Allin’s right to grant the sublicense in Section 4.1(iii), Allin shall execute an agreement as set forth in
this subsection (“Operating Agreement”) with each intended Sublicensee prior to distributing any Equipment. In such Operating Agreement, Allin shall sublicense the use of the Software to each Sublicensee to enable it to use the Equipment.
Allin shall ensure that the terms of any and all Operating Agreements shall be in accordance with

 
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	 	this Agreement. At a minimum, each Operating Agreement must contain the following terms:

	 	 	 
	 	(a)	 Sublicensee may not reverse engineer or decompile the Software.

	 	 	 
	 	(b)	 Sublicensee acquires no title to or ownership of the Software, other than ownership of the physical media.

	 	 	 
	 	(c)	 Any third-party software or content supplier, if applicable, named in the copyright notices included with the Software is authorized to hold Sublicensee responsible for any copyright infringement or any violation of
the Operating Agreement as it relates to sublicensing.

	 	 	 
	 	(d)	 Sublicensee may not transfer any rights granted herein without the express written consent of OCV.

	 	 	 
	 	4.5     	Expiration of Source Code License.   Upon expiration or termination of this Agreement for any reason under its terms, the license granted to Allin under Section 4.1(ii) shall
immediately terminate. Within seven calendar days after such expiration or termination, Allin shall transfer to OCV or destroy (at OCV’s option) all Source Code for Software in its possession and shall comply with all reasonable directions by
OCV relating to the Source Code. An officer of Allin shall certify Allin’s compliance with this subsection to OCV.

	 	 	 
	 	4.6     	Excluded Software.   If Allin wishes to grant a license permitting Sublicensees to use the Excluded Software, Allin shall notify OCV in writing of the identity of such Sublicensees and
the nature of the intended use. Upon such notification, OCV shall grant Allin the right to exercise the license rights granted in Section 4.1(i) and (iii) as to Excluded Software. Allin’s exercise of its license as to Excluded Software pursuant
to this subsection or any Sublicensee’s use of Excluded Software shall obligate Allin to pay the Excluded Software License Fee set forth in Section 5.3.

	 	 	 
	 	4.7     	Derivative Software.   The Parties acknowledge and agree that (i) the definition of “New Software” in the Supplier Agreement was intended to have. the definition of
“Derivative Software” in this Agreement, except that if the modifications constituting Derivative Software were made for a Sublicensee as a work-for-hire, then Allin shall individually own such Derivative Software; and (ii) the definition
of “Software” in the Supplier Agreement was intended to have the meaning of the definition of “Software” in this Agreement. To the extent the terms of this subsection conflict with any prior oral or written agreement or
understanding between the Parties, the terms of this subsection control and any interpretation of the terms “Software” and “New Software” in the Supplier Agreement shall be governed by the terms of this subsection.

	 	 	 
	 	4.8     	Grant of Trademark License.   OCV hereby grants to Allin a non-exclusive license to use the Trademarks in connection with the Equipment

 
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	 	and the Software in accordance with the terms and conditions of this Agreement. Allin shall submit representative samples of any marketing, promotional, or other materials bearing or using the Trademarks
to OCV for approval before distribution. Such materials shall state “Allin Interactive Corporation is an authorized distributor of On Command Video Corporation.” Allin recognizes the substantial goodwill associated with the Trademarks and
will not permit the quality of the services with which OCV uses the Trademarks to deteriorate so as to adversely affect the goodwill associated with the Trademarks. Allin agrees to cooperate with OCV in maintaining OCV’s control of the nature
and quality of goods and services rendered by Allin in connection with the Trademarks and to supply to OCV on request specimens of use of the Trademarks, if applicable.

	 	 	 
	 	4.9     	Quarterly Updates.   Within 30 days after the beginning of each calendar quarter, Allin shall provide a written summary detailing any exercise of the Source Code License
(“Quarterly Report”). The Quarterly Report may be submitted via e-mail and shall contain, at a minimum, the following information: (i) the purpose for the modification or enhancement to the Source Code; (ii) identification of the portion
of the Software modified; and (iii) timeline for completion of project. Upon completion of any work identified in a Quarterly Report, Allin shall transfer a copy of the Derivative Software and Source Code for such Derivative Software to
OCV.

	 	 	 
	 	4.10     	Grant of License to OCV.   Allin grants OCV a nonexclusive, fully paid-up world-wide license to use, market, distribute and maintain the Derivative Software, including its
Source Code, in connection with the Equipment, except that OCV may not use such license in connection with distribution of Equipment in Markets.

 Section
5.       Payment and Invoicing.

			
	 	5.1     	Pricing.   Allin shall pay the price for Equipment as set forth on Schedule A in effect at the time the Order is placed.

	 	 	 
	 	5.2     	Invoicing.   Upon shipment of Equipment, OCV will invoice Allin for amounts due pursuant to this Agreement for such Equipment. Such invoice shall include invoice date, Allin Order number,
quantities, unit prices and total amount due. Payment shall be due net 30 days from the receipt of invoice. If the Equipment is delivered in installments, Allin shall pay for each installment in accordance with the terms of payment set forth in this
Section.

	 	 	 
	 	5.3     	Excluded Software License Fee.   Allin shall pay OCV a license fee as mutually agreed by the Parties for each functionality of Excluded Software used by any Sublicensee (“Excluded
Software License Fee”). For purposes of this subsection, “Sublicensee” shall mean the individual cruise ship, hotel, hospital or physical location using the functionality of the

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	 	Excluded Software. Payment shall be within 30 days after the first date of use by such Sublicensee of any functionality of Excluded Software. “Functionality” as used in this subsection shall
mean, individually, games, internet access or music capability. If the Parties cannot agree upon the terms of the license fee for any functionality of Excluded Software, then Allin shall have no right to exercise any rights under Section 4.1 as to
Excluded Software or its Source Code.

	 	 	 
	 	5.4     	Taxes.   Unless otherwise agreed to by the Parties in an Order, the Parties’ respective responsibilities for taxes arising under or in connection with this Agreement shall be
as follows:

	 	 	 
	 	(a)     	 Each Party shall be responsible for any personal property taxes on property it owns or leases, for franchise and privilege taxes on its business, and for taxes based on its net income or gross receipts.

	 	 	 
	 	(b)     	 Allin shall be responsible for any sales, use, excise, value-added, services, consumption, or other tax, customs and duties assessed on any particular Equipment or service purchased by Allin and delivered by OCV to
Allin or designee hereunder. Such taxes are in addition to the prices set forth herein and shall be identified separately on invoices.

	 	 	 
	 	(c)	 The Parties agree to cooperate with each other to enable each to more accurately determine its own tax liability and to minimize such liability to the extent legally permissible. Prices do not include any taxes, now
or hereafter enacted, applicable to the Equipment sold, which taxes will be added by OCV to the sales price when OCV is required by law to collect the same, and such taxes are to be paid by Allin unless Allin provides OCV with a proper tax-exemption
certificate. OCV’s invoices shall separately state the amounts of any taxes OCV is collecting from Allin.

	 	 	 
	 	5.5     	Account.   Payments to OCV shall be made in U.S. Dollars via check or wire transfer to the following account:

 

	 	If mailed:	On Command Video Corporation
	 	 	Department 1112
	 	 	Denver, CO 80256
	  	 	 
	  	Wire Transfer:	On Command Video Corporation
	  	 	US Bank
	 	 	950 17th Street
	  	 	Denver, CO 80202
	   	 	Acct No.
	    	 	ABA: 102000021

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  Section 6.        Allin Obligations.

			
	 	6.1     	Accurate and Complete Records.   Allin shall keep accurate and complete records relating to its use of the Equipment and shall provide OCV with copies of the relevant sections of any and all
Operating Agreements promptly upon OCV’s request to demonstrate compliance with the terms of this Agreement, and in particular the terms of Section 4.4. If Allin is unable disclose the terms of any Operating Agreement due to confidentiality
restrictions, then Allin shall (i) seek the consent of the Sublicensee party to the Operating Agreement to disclose the relevant sections of the Agreement; or (ii) provide OCV with reasonable assurances that such Operating Agreements are in
compliance with this Agreement (such as providing a letter to OCV from Sublicensee acknowledging the specific requirements of this Agreement)

	 	 	 
	 	6.2     	Right to Audit.   OCV shall have the right to audit compliance with this Agreement, at OCV’s expense, at any time or times during the Term of this Agreement and for a period
of one year thereafter. Each audit will take place upon not less than ten business days notice to Allin, and in a manner that does not interfere unreasonably with Allin’s operations. . If any audit reveals a breach of this Agreement and/or a
discrepancy in the determination of fees payable to OCV, Allin shall reimburse OCV for the underpayment plus interest at the annual rate of 18% or the highest rate allowable under law, whichever is less. If any audit reveals a discrepancy of
[REDACTED – CONFIDENTIAL TREATMENT REQUESTED]% or more in the determination of fees payable to OCV, Allin shall also pay all reasonable out of pocket costs and expenses incurred by OCV in connection with the audit, including but not limited to
payment of all fees charged by any auditor retained by OCV. OCV and its auditors will use the information obtained in compliance verification only to enforce this Agreement and to determine whether Allin is in compliance with the terms
hereof.

 Section 7.       Representations and Warranties.

			
	 	7.1     	Mutual Representations and Warranties.     Each Party represents and warrants to the other that it has the full power and authority to enter into this Agreement and to carry out
its obligations under this Agreement.

	 	 	 
	 	7.2     	 OCV Representations and Warranties.

	 	 	 
	 	(a)     	Limited Warranty.   OCV warrants that the during the applicable Warranty Period (set forth below) the hardware components of the Equipment will conform with any applicable specifications in
all material respects and will be free from material defects in workmanship and materials during normal use.

	 	 	 
	 	(b)     	 Warranty Period.   The applicable Warranty Period starts on the date OCV ships the Equipment to Allin and ends upon the expiration of the number of days specified below:

 
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	 	Type of Deliverable	 	Warranty Period	
	 	Equipment, excluding Spare Parts	 	150 days	 
	 	Software	 	150 days	 
	 	Spare Parts	 	120 days	 

	 	 	 
	 	(c)     	Title.   OCV warrants that at the time of delivery to the carrier for shipment, OCV has title to the Equipment free and clear of any and all liens and encumbrances.

	 	 	 
	 	7.3      	No Additional Warranties.   The warranties contained in this Section 7 are the only warranties made by OCV and can be amended only by a written instrument signed by an officer of OCV. OCV
makes NO WARRANTY as to Software, which is supplied “AS-IS”, or as to Equipment not manufactured by OCV, provided that as to Equipment not manufactured by OCV, OCV, to the extent permitted by OCV’s contract with its supplier, shall
assign to Allin any rights OCV may have under any warranty of the supplier thereof. OCV’s warranties under this Agreement shall not be enlarged, diminished or affected by, and no obligation or liability shall arise or grow out of, OCV’s
rendering of technical advice or service in connection with Allin’s order of the Equipment.

	 	 	 
	 	7.4     	Compliance with Laws.   OCV represents and warrants that in the performance of is obligations hereunder, it shall comply with all applicable laws, rules, regulations, statutes and ordinances
of all governmental entities including local, state, federal or international, now or hereafter enacted.

	 	 	 
	 	7.5     	Limitation of Liability.     If OCV breaches its warranties as contained in this Section 7, OCV’s sole and exclusive maximum liability shall be (at OCV’s option) to
replace the Equipment under warranty with conforming Equipment, or to credit Allin’s account for the amount paid by Allin for the Equipment under warranty.

	 	 	 
	 	7.6     	Replacement Under Warranty.   OCV agrees to replace or credit Allin for defective Equipment provided that (a) OCV is promptly notified in writing or e-mail upon discovery by Allin that such
Equipment failed to conform to this Agreement with a detailed explanation of any alleged deficiencies and such notification occurs during the applicable warranty period, (b) such Equipment is returned to OCV, F.O.B. OCV’s plant from which the
Equipment were shipped, and (c) OCV’s examination of such Equipment shall disclose that such alleged deficiencies actually exist and were not caused by accident, misuse, neglect, alteration, improper installation, unauthorized repair or
improper testing. If such Equipment fails to conform to the warranty, OCV shall reimburse Allin for the transportation charges paid by Allin for such Equipment. If OCV elects to replace such Equipment, OCV shall have a reasonable time to replace
such Equipment. Such replacement or credit shall constitute fulfillment of all liability of OCV to Allin whether based in contract, tort, indemnity, statutory provision or otherwise.

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  Section 8.        Exclusivity.

			
	 	8.1     	OCV’s Obligations.   During the Term, Allin shall be OCV’s exclusive distributor of Equipment to end-users in the cruise ship market. As of the date that is two years after the
Effective Date (and on such date on each year thereafter during the Term), OCV shall have no obligations under this Section 8.1 unless Allin has paid an aggregate of $[REDACTED – CONFIDENTIAL TREATMENT REQUESTED] for Equipment under this
Agreement in the preceding two years.

	 	 	 
	 	8.2     	Allin’s Obligations.   During the Term, Allin shall not, directly or indirectly, purchase any interactive television equipment for the hospitality and cruise ship markets (except for
research, development and testing purposes) that provides similar services or functionality as the Equipment from any entity or person other than OCV, provided, however, that (i) Allin may purchase servers and other equipment not listed on Schedule
A as of the Effective Date (“Initial Schedule A”) from other providers; and (ii) Allin -may purchase Equipment or items similar to the Equipment from other providers to the extent: (a) a particular piece or type of OCV Equipment is not
competitive in its functionality or price with equipment offered by other providers to Allin; or (b) OCV services and support for its Equipment is not competitive with other providers’ services and support for their equipment.

 Section 9.        Intellectual Property.

			
	 	9.1	OCV Property.   Allin expressly acknowledges OCV’s exclusive ownership of the Trademarks, Software, and all Intellectual Property Rights embodied in the Software and the Equipment and
agrees that it shall do nothing inconsistent with such ownership, except as expressly permitted under this Agreement. OCV shall exercise full control over its Intellectual Property Rights, including but not limited to decisions as to whether to
register or otherwise apply for formal protection of its Intellectual Property Rights.

	 	 	 
	 	9.2     	No Impairment of Rights.   Allin shall not claim or assert any right of ownership in or to OCV’s Intellectual Property Rights and shall not initiate any litigation, administrative
proceeding or regulatory or other action that could destroy, damage, or impair in any way the ownership or rights of OCV in and to such Intellectual Property Rights and shall not assist any other person in doing the same

	 	 	 
	 	9.3	Allin Property.   Subject to Section 9.4, Allin shall retain all right, title and interest in and to all of the Intellectual Property Rights developed by or for Allin prior to the Effective
Date or developed by or for Allin at any time independent of this Agreement, and all Technology developed solely by Allin during the Term.

 
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	 	9.4     	Jointly Owned Property.   Allin and OCV shall have and retain joint ownership of all Derivative Software (unless Section 4.7 provides that Allin has individual ownership) without any
appropriate right or obligation of accounting to the other Party for profits from exploitation of the rights, but subject to all other rights and obligations of the Parties under this Agreement relating to Derivative Software.

	 	 	 
	 	9.5	Duty to Notify, Etc.   If Allin learns that the Software has been modified or reproduced by a third party without authorization by OCV (including any modification by Sublicensees),
or that the Trademarks or any other OCV Intellectual Property Rights are being infringed by a third party, it shall notify OCV promptly. OCV shall decide in its sole and exclusive discretion what action to take or not to take in response, and Allin
shall take no action in this regard unless instructed in writing to do so by OCV. OCV shall have the right to act to terminate any infringement, including, without limitation, prosecuting a lawsuit or other legal proceeding at its own expense, and,
OCV may retain any and all recovery it may receive as a result of its actions to terminate such infringement. Allin shall fully cooperate with OCV in any such action taken by OCV including without limitation agreeing to be joined as party plaintiff
and approving any reasonable settlement agreement achieved by OCV. OCV shall reimburse on demand all reasonable out of pocket costs and expenses incurred in connection therewith by Allin, excluding any attorneys fees not previously approved by
OCV.

 
 Section 10.     Confidentiality.
 The Parties are each a Party to a
Non-Disclosure Agreement dated as of the Effective Date and attached hereto as Schedule C (the “NDA”). The Parties agree that the terms and conditions of the NDA shall be incorporated by reference and form part of this
Agreement. If there is a conflict between this Agreement and the NDA, the NDA shall take priority with regard to the creation, maintenance, use and protection of Confidential Information (as defined in the NDA) to the extent of the conflict. In the
event the term of the NDA expires prior to the expiration or termination of this Agreement, the Parties agree that the term of the NDA shall automatically extend through the term of this Agreement.
 Section 11.     Escalation; Dispute Resolution.

	 	 	 
	 	11.1     	Informal Dispute Resolution.   Prior to the initiation of formal dispute resolution procedures, the Parties shall first attempt to resolve their dispute informally pursuant to this Section.
Upon the written request of a Party, each Party shall appoint a designated representative who does not devote substantially all of his or her time to performance under this Agreement, whose task it will be to meet for the purpose of endeavoring to
resolve such dispute.

	 	 	 
	 	(a)      	The designated representatives shall meet as often as the Parties reasonably deem necessary in order to gather and furnish to the other all information with respect to the matter in issue which the 

 
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	 	 	Parties believe to be appropriate and germane in connection with its resolution. The representatives shall discuss the problem and attempt to resolve the dispute without the necessity of any formal
proceeding.

	 	 	 
	 	(b)     	 During the course of discussion, all reasonable requests made by one Party to another for non-privileged information, reasonably related to this Agreement, shall be honored in order that each of the
Parties may be fully advised of the other’s position.

	 	 	 
	 	(c)     	 The specific format for the discussions shall be left to the discretion of the designated representatives.

	 	 	 
	 	(d)     	 If the designated representatives fail to resolve the dispute, the Parties agree to escalate the dispute resolution process to a higher executive level, and then to the CEO level. Each level of informal dispute
resolution will be allowed no more than fifteen (15) days, unless otherwise mutually agreed by the Parties.

	 	 	 
	 	11.2     	 Arbitration.

	 	 	 
	 	(a)     	 If the Parties fail to resolve a dispute pursuant to Section 11.1 above, either Party may then refer such dispute to be settled by submission to the CPR Institute for Dispute Resolution (“CPR”) for
binding arbitration in Denver, Colorado if OCV is demanding such arbitration and Pittsburgh, PA if Allin is demanding such arbitration under the then current CPR “Non-Administered Arbitration Rules” or any successor CPR rules, and the
procedures specified under this Section 11.2. Each Party consents to the enforcement of any such arbitration award or judgment in its home jurisdiction. Any arbitration shall be conducted and enforced in accordance with Sections 11.2(b) through
11.2(h).

	 	 	 
	 	(b)     	Selection of Arbitrators. Arbitration shall be conducted by three (3) arbitrators with each Party to this Agreement selecting one arbitrator each and the two selected arbitrators then selecting the
third arbitrator. Each arbitrator shall be independent of the Parties and shall have at least ten (10) years of experience in commercial transactions, including transactions involving communications technology companies.

	 	 	 
	 	(c)     	 Limited Discovery.  Prior to the commencement of the arbitration, each Party shall be entitled to take limited discovery, including the rights to request a reasonable number of documents, to
serve no more than twenty (20) interrogatories and to take no more than three (3) depositions. Each Party may seek the right to serve additional interrogatories and to take additional depositions upon a showing of good faith to the arbitrators, who
can grant or deny any such request, in whole or part, in their sole discretion. This limited discovery shall be conducted in accordance with the Federal Rules

 
 14

			
	 	 	of Civil Procedure, which shall be interpreted and enforced by the arbitrators. Any disputes regarding whether a Party has requested a “reasonable” number of documents shall be determined by the arbitrators
in their sole discretion.

 

			
	 	(d) 	 Hearing and Decision.  The arbitrators shall, as soon as practicable and upon thirty (30) days written notice to each Party, conduct an arbitration hearing and proceeding on the merits of the
dispute giving effect to this Agreement as interpreted under Delaware law and thereafter shall issue a preliminary written decision citing the basis for the decision, including findings of fact and conclusions of law. The Parties shall have five (5)
business days to file a written response to such preliminary decision, and thereafter the arbitrators shall as soon as practicable issue a final and binding decision. The decision of the arbitrators shall be based on a majority vote.

 

			
	 	(e) 	 Costs and Expenses.  The arbitrators may award to the prevailing Party all reasonable fees, costs and expenses of the arbitration, including, without limitation, such reasonable fees and
expenses of attorneys and experts.

 

			
	 	(f) 	 Consolidation and Joinder.   Any arbitration arising out of or relating to this Agreement or breach thereof may include by consolidation, joinder or other manner any other person or persons
which or whom a Party to the arbitration reasonably believes to be substantially involved in a common question of fact or law.

 

			
	 	(g) 	 Enforcement.  The agreement to arbitrate shall be specifically enforceable under prevailing arbitration law. Any award rendered by the arbitrators shall be final, binding and enforceable by
any Party to the arbitration, and judgment may be rendered upon it in accordance with applicable law in a court of competent jurisdiction.

 

			
	 	(h) 	 United States Arbitration Act.   The Parties acknowledge that this Agreement evidences a transaction involving interstate commerce. The United States Arbitration Act shall govern the
enforcement of any arbitration awards entered pursuant to this Section.

 
 Section 12.        Termination.

			
	 	12.1 	 Termination for Cause.  A Party may immediately terminate this Agreement, without payment of compensation or other damages caused to the other Party by such termination, by giving notice in
writing to the other Party if the other Party fails actively and diligently to take steps to remedy, where capable of remedy, or fails to take active and diligent steps to prevent the recurrence of any material breach of any of its obligations under
this Agreement, in each case, within a period of 30 days after having been required by the non-breaching party in writing in either case 

 
 15

			
	 	 	to remedy or desist from such breach. This Section 12.1 does not apply to any breach which is addressed in Section 12.2.

 

			
	 	12.2 	 Termination by OCV.  Notwithstanding anything contained in this Agreement to the contrary, OCV may immediately terminate this Agreement for any one or more of the following
reasons:

 

			
	 	(a) 	 by giving notice to Allin if Allin fails to pay within 30 days of a demand an overdue amount payable to OCV, except that OCV shall not be entitled to terminate this Agreement if Allin has provided notice to OCV of a
reasonable dispute regarding the payment and Allin has paid any undisputed portion of the invoice at issue. ; or

 

			
	 	(b) 	 if Allin shall undertake or cause any action or permit any action that reasonably could be deemed to injure, harm or dilute the Trademarks or the goodwill therein and has not taken steps to remedy or desist from
such action within 30 days of being required to do so by the OCV in writing; or

 

			
	 	(c) 	 if OCV discovers a [REDACTED – CONFIDENTIAL TREATMENT REQUESTED]% or more variance in a verification or self-audit conducted under Section 6.2 of this Agreement; or

 

			
	 	(d) 	 in the Event of Insolvency of Allin; or

 

			
	 	(e) 	 if Allin assigns its rights or this Agreement and OCV has reasonably withheld consent to such assignment.

 

			
	 	12.3 	 Termination by Allin.  Notwithstanding anything contained in this Agreement to the contrary, Allin may immediately terminate this Agreement in the Event of Insolvency of OCV.

 

			
	 	12.4 	 Effect of Termination.  Upon termination of this Agreement, Allin shall immediately (i) cease and discontinue all use of the Trademarks and (ii) comply with the requirements of Section 4.5 of
this Agreement. Notwithstanding any term to the contrary, all sublicenses properly granted to Sublicensees pursuant to Allin’s rights under Section 4.1 shall continue in perpetuity.

 
 Section 13.        Indemnification and Substitution of Equipment.

			
	 	13.1 	 Indemnification by OCV.  OCV agrees to indemnify and hold Allin and its Affiliates harmless against any Losses arising from any material breach by OCV of its obligations or warranties under
this Agreement.

 

			
	 	13.2 	Substitution of Equipment.   If any Equipment manufactured and supplied by OCV to Allin shall be held to infringe any Intellectual Property Right of a third party and Allin shall be enjoined
from using same, OCV will exert all reasonable efforts, at its option and at its 

 
 16

			
	 	 	 expense, (a) to procure for Allin the right to use such Equipment free of any liability for patent infringement, or (b) to replace such Equipment with a noninfringing substitute otherwise complying substantially
with Allin’s requirements and the terms and conditions of this Agreement, or (c) refund the purchase price and the transportation costs of such Equipment. If the infringement by Allin is alleged prior to completion of delivery of the Equipment
under this contract, OCV may decline to make further shipments without being in breach of this contract

 

			
	 	13.3 	 No Patent Rights Granted.   The sale by OCV of the Equipment ordered hereunder does not grant to, convey, or confer upon Allin or Allin’s customers, or upon anyone claiming under Allin,
a license, express or implied, under any patent rights of OCV covering or relating to any combination, machine or process in which said items might be or are used. The foregoing states the sole and exclusive liability of the Parties hereto for
patent infringement and is in lieu of all warranties, express, implied, or statutory, in regard thereto.

 

			
	 	13.4 	 Indemnification by Allin.   Allin shall indemnify, defend and hold harmless OCV, its shareholders, directors, officers, employees, affiliates, sales representatives and customers from any and
all Losses resulting or arising from (i) any claim that the Derivative Software infringes or violate any patent, trademark, trade secret or copyright of any third party, (ii) any claim that the Derivative Software or Source Code of the Derivative
Software infringes or violates any patent, trademark, trade secret or copyright of any third party, (iii) OCV’s compliance with Allin’s directions or instructions relating to the Software, or (iv) any material breach by Allin of its
obligations or warranties under this Agreement.

 
 Section 14.        Disclaimer of Damages
 Except for Allin’s payment obligations and liability for breach of OCV’s Intellectual Property Rights (including obligations relating to Source Code), each Party’s maximum aggregate liability under this
Agreement shall be $[REDACTED – CONFIDENTIAL TREATMENT REQUESTED]. In no event shall either Party be liable to anyone for special, collateral, indirect, exemplary, incidental or consequential damages for breach of any of the provisions of this
contract, including without limitation, provisions regarding warranties, guarantees, indemnities, and patent infringement, such damages to include but not be limited to, costs of removal and reinstallation of Equipment or items, loss of goodwill,
loss of profits, or loss of use.
 Section 15.       Assignment

			
	 	15.1 	 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties hereto, and the legal representatives, permitted successors in interest and permitted assigns,
respectively, of each such Party.

 

			
	 	15.2 	 Assignment.  Without the prior written consent of the other Party, such consent not to be unreasonably withheld, this Agreement may not be 

 
 17

			
	 	 	assigned, in whole or in part, and whether arising by contract, by operation of law, by court order or by other means within or beyond the control of the assigning party. OCV will be deemed to be acting reasonably in
withholding consent to an assignment of this Agreement if, among other things: (i) any assignment by Allin is to a person which is, at the time of the proposed assignment, in the reasonable judgment of OCV, engaged in (or publicly proposed to be
engaged in) a line of business which is similar to or in competition with a business then being engaged in (or publicly proposed to be engaged in) by OCV or (ii) in the reasonable judgment of OCV the assignment would have an adverse effect upon
OCV’s ability to perform its obligations under this Agreement; or (iii) the proposed assignee has in the past, or has a reputation for, infringing third party Intellectual Property Rights or OCV otherwise has reasonable grounds to believe will
infringe the Intellectual Property Rights of OCV; or (iv) the proposed assignee is subject to an Event of Insolvency. Notwithstanding the foregoing, OCV may assign or otherwise transfer all of its rights and obligations under this Agreement to an
Affiliate or upon a Change in Control, upon prior written notice to Allin (a “Permitted Transfer”). In the event of a Permitted Transfer, the assignee will unconditionally assume in writing the obligations under this Agreement and OCV will
be released from further liability hereunder except for liabilities accrued prior to assignment. OCV will notify Allin of the occurrence of any Permitted Transfer promptly, but in no event later than 30 days thereafter, and provide the transferee
with a copy of the fully executed documents evidencing the assignment and assumption.

 
 Section 16.        General
Provisions.

			
	 	16.1 	 Survival.  Sections 1 (Definitions), 2 (Term), 4 (Grant of Licenses) 5 (Payment and Invoicing), 13 (Indemnification and Substitution of Equipment), 14 (Disclaimer of Damages) and 16 (General
Provisions) shall survive the expiration or termination of this Agreement for any reason.

 

			
	 	16.2 	 Force Majeure.  OCV is not liable, either wholly or in part, for nonperformance or a delay in performance due to force majeure or contingencies or causes beyond the reasonable control of OCV,
including but not limited to shortage of labor, fuel, raw material or machinery where OCV has exercised reasonable care in the prevention thereof. OCV may allocate production and deliveries in a reasonable manner in the event of shortage of
Equipment.

 

			
	 	16.3 	 Release Of Information.  Neither OCV nor Allin shall publicly announce or disclose the terms and conditions of this Agreement, or advertise or release any publicity regarding this Agreement,
without the prior written consent of the other Party, such consent not to be unreasonable withheld, except that Allin may disclose the terms of this Agreement (i) as required to meet regulatory requirements, provided that Allin gives OCV written
notice at least 48 hours prior to any such disclosure and Allin seeks 

 
 18

			
	 		 confidential treatment of the information to the extent allowed by applicable laws and regulations; and (ii) to bona fide potential investors who have executed an agreement with Allin prohibiting further disclosure
or use of any such disclosed terms, except in connection with evaluating an investment in Allin. This provision shall survive the expiration, termination or cancellation of this contract.

 

			
	 	16.4 	 Modification.  This contract constitutes the entire agreement between the Parties relating to the sale of the Equipment and services described on the face hereof and supersedes all previous
communications, representations, or agreements, either oral or written, with respect to the subject matter hereto, and no representations or statements of any kind made by a representative of a Party, which are not stated herein, shall be binding on
the Party unless made in writing and signed by a duly authorized representative of such Party. No course of dealing or usage of trade or course of performance shall be relevant to explain or supplement any term expressed in this
contract.

 

			
	 	16.5 	 Relationship of Parties.  The Parties are independent contractors and nothing in this Agreement shall be construed as creating any agency, partnership, or other form of joint enterprise
between the Parties. Neither Party will have the authority to act or create any binding obligation on behalf of the other Party.

 

			
	 	16.6 	 Import and Export.   OCV and Allin shall comply at all times with all applicable federal, state, and local laws and regulations. The products covered by this contract are subject to export
license control by the U.S. Government. Therefore, prior to exportation, Allin is required to obtain any licenses that may be required under the applicable laws of the U.S. including the Export Administration Act and Regulations. OCV shall provide
Allin, within ten (10) days after Allin’s request, all information in its possession or under its control which may be necessary or useful to Allin in obtaining export or import licenses related to the Equipment, including, but not limited to,
certificates of origin, manufacturer’s affidavits and U.S. Federal Communications Commissions identifiers, if applicable.

 

			
	 	16.7 	 Force Majeure; Time is of the Essence.   Neither Party shall be liable for any delay or failure in the performance of its obligations hereunder due to causes beyond its control, including but
not limited to, fire, strike, war, riots, judicial action or acts of God; provided, however, that the Party prevented from performing its obligations due to any such event or circumstance shall use reasonable efforts under the
circumstances to notify the other Party and to resume performance as soon as reasonably possible. OCV may allocate production and deliveries in a reasonable manner in the event of a shortage of Equipment. Time is of the essence in the performance of
this Agreement.

 
 19

			
	 	16.8 	 Notices.  All notices required or permitted under this Agreement will be in writing and will be deemed delivered (a) when actually delivered if delivered in person, (b) one (1) day after
being deposited in a recognized express, overnight delivery service, (c) when actually received if received by confirmed facsimile and such facsimile transmission is followed by a mailed copy, or (d) three (3) days after being deposited in the
United States mail service, postage prepaid, addressed to the Party as follows:

 

			
	 	If to Allin:	If to OCV:
	 	Allin Interactive Corporation	On Command Video Corporation
	 	381 Mansfield Avenue	4610 South Ulster Street, Suite 600
	 	Suite 400	Denver, Colorado 80237
	 	Pittsburgh, PA 15220	Facsimile:      (720) 873-3397
	 	Attn: Richard W. Talarico	Attention:      Laurence M. Smith
	 	 	Copy to: Pamela Strauss

 

			
	 	16.9 	 Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado, without reference to its conflict of laws principles.

 

			
	 	16.10 	 Entire Agreement.   The parties agree that the Supplier Agreement is hereby terminated and superseded by this Agreement. This Agreement, including its Schedules, constitutes the entire
agreement between the Parties with respect to the subject matter hereof, and supersedes any prior or contemporaneous written or oral agreements or understandings between the Parties with respect to the subject matter hereof. No amendment or
modification to this Agreement will be effective unless made in writing and signed by both Parties.

 

			
	 	16.11 	 Waiver.  Failure by either Party to exercise any rights under this Agreement in any one or more instances will not constitute a waiver of such rights in any other instance. Waiver by a Party
of any default under this Agreement will not be deemed a waiver of any other default. If Allin defaults in making payments under this contract and OCV elects to continue to make shipments, OCV’s action shall not constitute a waiver of any
default by Allin or in any way affect OCV’s legal remedies for any such default.

 

			
	 	16.12 	 Severability.  If any provision of this Agreement shall be declared illegal, invalid or unenforceable, in whole or in part, by a court of competent jurisdiction, all other provisions of this
Agreement shall remain in full force and effect.

 

			
	 	16.13 	 Headings.  Headings used in this Agreement are for convenience of reference only and shall not be used to interpret any aspect of this Agreement.

 
 20

			
	 	16.14 	 Counterparts.  This Agreement may be executed in counterparts, each of which will be considered an original, and all of which together will constitute one and the same instrument.

 
          IN WITNESS WHEREOF, the Parties, by their duly authorized representatives, have executed this Agreement as of the Effective
Date.

	 	 	 
		ON COMMAND VIDEO CORPORATION
	 	 	 
	 	 	 
	  	By:	 /s/  LAURENCE M. SMITH
 
	 	 	 
 
	  	 	 SENIOR VICE PRESIDENT - SALES AND DISTRIBUTION
 
	  	 	
	 	 	 
	 	 	 

 

			
	 	 ALLIN INTERACTIVE CORPORATION
	 	 	 
	 	 	 
	 	By:	 /s/  RICHARD W. TALARICO
 
	 	 	 
 
	   	 	 CHAIRMAN AND CHIEF EXECUTIVE OFFICER
 

 21

  SCHEDULE A
 Equipment and Pricing -- 2003

			 
	Item	Description	Price
 [REDACTED –
CONFIDENTIAL
TREATMENT
REQUESTED]
	10-00788	CORD PWR SUPLY U/L REQ	 
	1010-1520	SPLITTER 2 WAY VERTICAL	 
	1010-1549	SPLITTER 8 WAY PSA (TRU-SPEC) SAME AS 17-02203	 
	17-02166	SPLITTER 1GHZ V 2 WAY	 
	17-02203	SPLITTER 8 WAY PSA TRU-SPEC OBSOLETE USE 1010-1549	 
	25-02526	BATTERY AA 1.5 ALKALINE   UL APPROVED 	 
	25-04495	POWER SUPPLY SWITCHER 5VIA 12V.5A 33V&-5V.01A  UL APPROVED	 
	26-04738	EMITTER INFRARED MINI	 
	28-06394	DISK DRIVE HD IDE ATA-100 7200RPM	 
	30-05073	ADAPTER RCA F TO F-MALE	 
	36-00367	WASHER #4 SPLIT LOCK	 
	36-00692	SCREW 4-40X1/4" TRUSS PHIL ZINC	 
	36-02148	FASTENER TUFLOCK 1/4"	 
	36-02655	STANDOFF 4-40X7/16 HEX	 
	43-00094	MANUAL OCX PLATFORM REF ALT IS 63-05500	 
	45-05203	TOOL SUPERLATCH BATTERY COVER	 
	49-00296	FILTER AIR POLYSTER MEDIA	 
	51-00221-01	LBL VCP IDENT	 
	51-00221-09	LBL VCP IDENT	 
	51-00221-10	LBL VCP IDENT	 

 1

			 
	51-00221-12	LBL VCP IDENT	 
	51-00221-13	LBL VCP IDENT	 
	51-00765	EXTRACTOR MODULATOR CARD	 
	51-01744	COVER TOP SW CONC SKII	 
	51-03907-01	SHIELD SINGLE ROUTER RX	 
	51-03908-01	SHIELD SINGLE ROUTER TX	 
	51-03930	BRKT 19-24 EXP 4U NP1 EQ CAB	 
	51-03931-01	BRKT 19-24 EXP 3U NP1 EQ CAB	 
	51-04382-01	SHIELD DIPLEXER ROUTER SINGLE TRUNK	 
	51-04711-01	PLATE COVER MISC EQ DFE	 
	51-04836-01	BRKT EXPANSION 1U	 
	51-06105-01	SHELF 1U 19" GEN2	 
	52-03712-011	LBL REMOTE OCC SLEEP CH GDE	 
	60-04273	DISKETTE MO 640 REWRITE (100 PER BOX)	 
	76-03550-01	COVER BTRY TV REMOTE CONTROL GRY OCV	 
	79-00005	MODULATOR AGILE 40-450     UL REQ	 
	79-00514	TAP WALLPLATE 9 DB	 
	79-00515	TAP WALLPLATE 12 DB	 
	79-00516	TAP WALLPLATE 16 DB	 
	79-00517	TAP WALLPLATE 20 DB	 
	79-01999	VCP NTSC OCV BY PANASONC     UL REQ	 
	79-03507	SMART LOADER FOR ZENITH	 
	79-03773-57	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-58	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-59	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-60	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-61	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-62	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-63	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-64	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-65	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-66	MOD MINI DIG/DSS/GAMES     UL REQ	 

			 
	79-03773-67	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-68	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-69	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-70	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-71	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-72	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-75	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-76	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-77	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-78	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-79	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-80	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-81	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-82	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-83	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-84	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-85	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-86	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-87	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-88	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-89	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-90	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-91	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03773-92	MOD MINI DIG/DSS/GAMES     UL REQ	 
	79-03775	COMBINER 16:1 HYB DIGS 750 MHZ     UL REQ	 
	79-04329-01	DISK DRIVE HD SCSI 4.5GB SEAGATE BARRACUDA UW     UL REQ	 
	79-04672	CYCLADES 16 PORT SW RJ45 Use BOM for needed parts	 
	79-04677	CMPTR HOST/PROXY	 
	79-04679	ASSY CARD M/B PENTIUM II DUAL BX CHPST UW SCSI     UL REQ	 
	79-05124	SWITCH LAN 12 PORT 100MB 19" RACK MOUNT     UL REQ	 

			 
	79-05125	SWITCH LAN 24 PORT 100MB 19" RACK MOUNT     UL REQ	 
	79-05307	BOX SERIAL RJ45 PORT PART OF 79-04672	 
	79-05308	ASSY CARD SERIAL PCI PART OF 79-04672     UL REQ	 
	79-05412	ASSY CARD LONTALK ADPTR RS485     UL REQ	 
	79-05437-01	ASSY KYBD IR BLK W/LOCK BATT COVER USE 79-06012	 
	79-05437-03	ASSY KYBD IR BLK W/LOCK BATT COVER ALLIN@HOSPITL     UL REQ	 
	79-05698	SMART LOADER BOX PHILIPS	 
	79-05766	CMPTR CLIENT IM3000A W/128MB RAM     UL REQ	 
	79-05767	CMPTR CLIENT IM3000 W/64MB RAM Use 81-05772-01 REWORK INSTRUCTIONS	 
	79-05786	SWITCH LAN 48 PORT 100MB CISCO 2948 & RACK MTG     UL REQ	 
	79-05926	ASSY CARD WAN INTERFACE CARD CSU/DSU     UL REQ	 
	79-05934	ASSY CHASSIS MODULAR DIGI SERVER W/COMBINER     UL REQ	 
	79-06163	ASSY CARD 4 PORT MPEG2 DECODER PCI     UL REQ	 
	80-01380	ASSY V DATA CONTROL SK II REF TP-01380	 
	80-01470	ASSY PCB VIDEO SW CNTLR SK2 HAS SCH REF SD-2068	 
	80-01470-02	ASSY PCB V DATA SW CNTLR CARD SKII HAS AI-01470 REF TP-1470-02	 
	80-02511-60	ASSY PCB MOD SSB CH60 NTSC UHF USE 80-04511-XXX	 
	80-03797-02	ASSY PCB KEYBD SIM MODULE-IM2000	 
	80-03910-01	ASSY PCB ROUTER SINGLE TRUNK HAS	 
	80-04381-02	ASSY PCB DIPLEXER ROUTER SINGLE TRUNK DFE REF TP-04381	 
	80-04391-01	ASSY PCB 16X A/V CMBNR PROGENY DFE NTSC REF TP-04391-01	 
	80-04511-42	ASSY PCB MOD SSB CH 42 NTSC	 
	80-04511-45	ASSY PCB MOD SSB CH 45 NTSC UHF	 
	80-04511-46	ASSY PCB MOD SSB CH 46 NTSC UHF	 
	80-04511-47	ASSY PCB MOD SSB CH 47 NTSC UHF	 

			 
	80-04511-48	ASSY PCB MOD SSB CH 48 NTSC UHF	 
	80-04511-49	ASSY PCB MOD SSB CH 49 NTSC UHF	 
	80-04511-50	ASSY PCB MOD SSB CH 50 NTSC UHF	 
	80-04511-51	ASSY PCB MOD SSB CH 51 NTSC UHF	 
	80-04511-52	ASSY PCB MOD SSB CH 52 NTSC UHF	 
	80-04511-53	ASSY PCB MOD SSB CH 53 NTSC UHF	 
	80-04511-54	ASSY PCB MOD SSB CH 54 NTSC UHF	 
	80-04511-55	ASSY PCB MOD SSB CH 55 NTSC UHF	 
	80-04511-56	ASSY PCB MOD SSB CH 56 NTSC UHF	 
	80-04511-57	ASSY PCB MOD SSB CH 57 NTSC UHF	 
	80-04511-58	ASSY PCB MOD SSB CH 58 NTSC UHF	 
	80-04511-59	ASSY PCB MOD SSB CH 59 NTSC UHF	 
	80-04511-60	ASSY PCB MOD SSB CH 60 NTSC UHF	 
	80-04511-61	ASSY PCB MOD SSB CH 61 NTSC UHF	 
	80-04511-62	ASSY PCB MOD SSB CH 62 NTSC UHF	 
	80-04511-63	ASSY PCB MOD SSB CH 63 NTSC UHF	 
	80-04511-64	ASSY PCB MOD SSB CH 64 NTSC UHF	 
	80-04511-65	ASSY PCB MOD SSB CH 65 NTSC UHF	 
	80-04511-66	ASSY PCB MOD SSB CH 66 NTSC UHF	 
	80-04511-67	ASSY PCB MOD SSB CH 67 NTSC UHF	 
	80-04511-68	ASSY PCB MOD SSB CH 68 NTSC UHF	 
	80-04511-69	ASSY PCB MOD SSB CH 69 NTSC UHF	 
	80-04511-70	ASSY PCB MOD SSB CH 70 NTSC UHF	 
	80-04511-71	ASSY PCB MOD SSB CH 71 NTSC UHF	 
	80-04511-72	ASSY PCB MOD SSB CH 72 NTSC UHF	 
	80-04511-73	ASSY PCB MOD SSB CH 73 NTSC UHF	 
	80-04511-74	ASSY PCB MOD SSB CH 74 NTSC UHF	 
	80-04511-75	ASSY PCB MOD SSB CH 75 NTSC UHF	 
	80-04511-76	ASSY PCB MOD SSB CH 76 NTSC UHF	 
	80-05141-01	ASSY PCB WB VCP CTRLR BACKPLANE ISA 2 SLOT 12V REF TP-05141-01	 
	80-05303-01	ASSY PCB RESET CLIENT REF TP-05303-01	 

			 
	80-05764-01	ASSY PCB ALL MUTE GENRTR ALLIN REF TP-05764-01	 
	81-00338	ASSY CBL STACK INPUT 19"     UL REQ	 
	81-00630	ASSY CHASSIS 2 MODULATOR     UL REQ	 
	81-01024-02	ASSY CBL VCP HARNESS REAR SK11     UL REQ	 
	81-01348-01	ASSY DC VCP NTSC OCV BY PAN	 
	81-01501-01	ASSY CBL 422 SK II     UL REQ	 
	81-02411-01	ASSY MOD BKPLANE +12V SKII 	 
	81-02457-01	ASSY LONTALK ADPTR RS485 GAME MONSTER HAS INSTR REF TP-02457-01     UL REQ	 
	81-02457-02	ASSY LONTALK ADPTR RS485 HOST/PROXY CMPTR	 
	81-03571-025	ASSY RMT GST OCC/PHIL HYBRID	 
	81-03571-036	ASSY REMOTE GST OCX/PHIL W/SLEEP NO KEYUP SINGLE	 
	81-03571-052	ASSY REMOTE GUEST OCC ONLY MKD/SKU	 
	81-03571-065	ASSY RMT GUEST OCC ZENITH 38KHZ	 
	81-03572-009	ASSY REMOTE SETUP OCC/PHIL HYBRID	 
	81-03572-011	ASSY REMOTE SETUP HYBRID PHILIPS/RCA Use 81-05972-011 	 
	81-03572-015	ASSY REMOTE SETUP CNV OCC GNR SETTOP GENERIC NO KEYUP	 
	81-03572-020	ASSY REMOTE SETUP OCC ONLY MKD/SKU W/BTRY LK	 
	81-03572-026	ASSY RMT SETUP OCC ZENITH 38KHZ	 
	81-03622-01	ASSY SINGLE TRUNK ROUTER DIGITAL SERVER	 
	81-03818-03	ASSY KEYBOARD SIM XGIA	 
	81-04451-21	ASSY BOX CONV NTSC FSK	 
	81-04613-04	ASSY STUD FINDER REF TP-04613-04	 
	81-04801-03B	ASSY SYS EQ CABINET DFE IPS ALLIN	 
	81-05014-001L	ASSY RMT GST RC INTL LK ROYAL CARIBBEAN INTL-RCI	 
	81-05014-002L	ASSY RMT GST IRU-2 ALLIN GRY NO LOGO LATCHING	 
	81-05014-003L	ASSY RMT GST OCX/PHILLIPS LATCHING @HOSPITAL ALLIN	 
	81-05116-01	ASSY SYS EQ CAB DFE LPS SKII JR BLK	 
	81-05167-01	ASSY COMPUTER HOST/PROXY USE 81-05998-01 & 88-06001-01	 
	81-05573-21	ASSY BOX CONV PLASMA SCREEN NTSC FSK	 
	81-05772-01	ASSY COMPUTER CLIENT CLONED IM3000 W/64MG RAM DOMESTIC NTSC	 

			 
	 	 	 
	81-05773-01	ASSY COMPUTER CLIENT CLONED IM3000 W/128MB RAM	 
	81-05971-025	ASSY REMOTE UEI GUEST OCC PHIL HYBRIO UNIVERSAL 	 
	81-05971-035	ASSY REMOTE UEI GUEST OCC IRU 2 GNR NO KEYUP SGL KEYDOWN UNIVERSAL	 
	81-05971-601	ASSY RMT UEI GUEST FOR ALLIN OCC PHILLIPS HYB	 
	81-05971-602	ASSY RMT UEI GUEST FOR ALLIN OCC IRU 2 GNR	 
	81-05972-009	ASSY REMOTE UEI SETUP OCC/PHIL HYBRID	 
	81-05972-011	ASSY REMOTE UEI SETUP HYBRID PHILIPS/RCA OCC	 
	81-05972-015	ASSY REMOTE UEI SETUP CNV OCC GNR SETTOP GENERIC NO KEYUP	 
	81-06136-01	ASSY CMPTR CLIENT BLADE OCC8000 CLONED	 
	82-03683-01	ASSY CBL PROGRAMMING 11"     UL REQ	 
	82-04309	ASSY CBL RCA AUDIO/VIDEO 5FT FREE STOCK     UL REQ	 
	82-04322-01	ASSY CBL DSS PHONE 6COND 36"     UL REQ	 
	82-04322-02	ASSY CBL DSS PHONE 6COND 62"	 
	82-04663-01	ASSY CBL CLIENT RESET CONTROL     UL REQ	 
	82-04667-01	ASSY CBL MOD DC POWER     UL REQ	 
	82-04707-05	ASSY CBL TW/PR 16P 1DC TO RCA A/V FOR DFE     UL REQ	 
	82-04707-11	ASSY CBL TW/PR 16P 1DC TO RCA A/V FOR DFE     UL REQ	 
	82-04707-12	ASSY CBL TW/PR 16P IDC TO RCA     UL REQ	 
	82-04740-01	ASSY CBL IM2000 CLIENT TO KB SIM NO BOM	 
	82-04760-01	ASSY CBL IR TRANSCEIVER     UL REQ	 
	82-04956-08	ASSY CBL CONC OUTPUT 44"     UL REQ	 
	82-04956-09	ASSY CBL CONC OUTPUT 44"     UL REQ	 
	82-05420-01	ASSY CBL RJ45 TO 3PIN TB     UL REQ	 
	82-05420-02	ASSY CBL RJ45 TO 3PIN TB ORN LONTALK CONN	 
	82-05705-12	ASSY CBL RJ45-RJ45 CAT-5 12"     UL REQ	 
	82-05705-96	ASSY CBL RJ45-RJ45 CAT-5 96"     UL REQ	 
	82-05709-01	ASSY CBL PWR INPUT 20A L5     UL REQ	 
	82-06165-01	 ASSY CBL A/V RCA 3.5MM PLUG RCA/RCA 4 FT     UL REQUIRED	 

			 
	88-02330	KIT TV CMNDR NO REMOTE OR CNTRL	 
	88-03791	KIT REMOTE OCC PRGMR	 
	88-04120-06	KIT XGIA II PAN/ZEN/MITS	 
	88-04540-01	KIT SETTOP CLONE BOX	 
	88-04610-11	KIT IRU II NTSC FSK OBS USE 88-04610-21	 
	88-04610-44	KIT IRU 2 PAL B/G HI1 BAND	 
	88-04612-01	KIT IR TRANSCEIVER	 
	88-04615-05	KIT PICKUP COIL 15.75KHZ LOW SENSITIVITY	 
	88-05063-01	KIT TV CMDR 2 SYNC TV 120V PWR REPLACED WITH 88-05063-13 P/N IS INACTIVE	 
	88-05063-05	KIT TV CMDRII SYNC TV 120V	 
	88-05063-07	KIT TV CMDRII ASYNC TV 120V	 
	88-05063-09	KIT TV CMDR 2 SYNC TV 120V ALLIN	 
	88-05063-10	KIT TV CMDRII SYNC TV 120V PWR ALLIN REPLACED WITH 88-05063-17	 
	88-05063-11	KIT TV CMDRII SYNC TV 120V PWR ALLIN 36" DATA CBL REPLACED W/88-05063-18	 
	88-05063-12	KIT TV CMDR 2 SYNC TV 120V PWR ALLIN 36" DATA CBL	 
	88-05063-15	KIT TV CMDR 2 ASYNC TV 120V PWR W/10K PULLUP	 
	88-05063-17	ASSY TV CMDR 2 SYNC TV 120V PWR ALLIN W/10K PULLUP	 
	88-05063-18	ASSY TV CMDR 2 SYNC TV 120V PWR Use 88-05063-12	 
	88-05063-23	KIT TV CMDR 2 ASYNC TV 120V PWR W/VCP FUNCTION	 
	88-05572-11	KIT IRU II ALLIN NTSC FSK	 
	88-05572-21	KIT IRU II PLASMA SCREEN NTSC FSK	 
	88-05980-21	KIT IRU ALLIN PLASMA SCREEN NTSC FSK	 
	88-06206-01	ASSY SYS SHIP KIT GEN2	 
	91-00581	MAJOR ASSY V DATA SWITCH SR SKII	 
	91-00633-01	MAJOR ASSY PWR SUPPLY AC/DC 115V	 
	91-00641-01	MAJOR ASSY POWER SUPPLY SKII	 
	91-00658-01	MAJOR ASSY PWR SUPPLY GEN2	 
	94-00053-01	TOP ASSY RACK SERVER ALLIN	 
	94-00054-01	TOP ASSY RACK CLIENTS ALLIN	 

			 
	IRU REPAIR	IRU REPAIR	 
	VCP REPAIR	VCP REPAIR	 
	REMOTE REPAIR	REMOTE REPAIR	 
	COMMANDER REPAIR	COMMANDER REPAIR	 

  SCHEDULE B
 ISLAND HOTELS
 NONE

  SCHEDULE C
NON-DISCLOSURE
AGREEMENT
 CONFIDENTIALITY AGREEMENT
          This Confidentiality
Agreement (this “Agreement”) is made and entered into this ____ day of June 2003 (“Effective Date”), by and between ON COMMAND CORPORATION, a Delaware corporation, with principal offices at 4610 South Ulster Street, Sixth
Floor, Denver, CO 80237 and its subsidiaries (collectively “OCC”) and Allin Communications Corporation, a Delaware corporation, with principal offices at 400 Greentree Commons, 381 Mansfield Ave., Pittsburgh, PA 15220
(“Company”).
 R E C I T A L S
 A.       OCC is in the business of providing entertainment and
technology to the lodging industry on a worldwide basis.
 B.       Company is in the business of multimedia and video on-demand services for the hospitality industry.

C.       The parties desire to engage in discussions related to the License and Supply Agreement (the “Transaction”), and to provide for the confidentiality of those
discussions and the information relayed during such discussions.
          Therefore, in consideration of the representations, warranties and covenants
contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, OCC and Company agree as follows:
          1.           Confidential Information.   This Agreement shall apply to all information disclosed by
either party to the other during the term of this Agreement relating to either party’s financial or business plans and affairs, financial statements, internal management tools and systems, marketing plans, clients, contracts, products and
programs, product and program development plans, hardware, firmware, software programs and other technology (“Confidential Information”) which information is deemed by the disclosing party as confidential. No formal identification
of information as “Confidential Information” shall be required by the disclosing party.
          2.
          Non-Disclosure.   Each party represents and warrants to the other that: (i) it shall not use, copy or reproduce any of the Confidential Information of the other without the
express written consent of the other; (ii) it agrees to use the same care and discretion to avoid disclosure, publication, or dissemination of Confidential Information of the other party, except for disclosure to or use by its employees, attorneys,
accountants and other advisors of the party and those of its subsidiaries and parent companies (“Agents”), who have a need to know and use such Confidential Information for purposes of this Agreement, as it employs with similar
information of its own which it does not desire to publish, disclose or disseminate; (iii) it will inform any Agents to which it discloses Confidential Information of the confidentiality provisions of this

  Agreement and obtain written agreement to abide by such provisions, except where such obligation exists by reason of a prior agreement or relationship; and (iv) it will not make any
public statement or comment on the existence or provisions of this Agreement, or the existence or content of the discussions with respect to the Transaction, without the prior written consent of the other except as may be required in the reasonable
opinion of its legal counsel.
          3.           Limitations.   Notwithstanding the
foregoing, neither party shall be under any obligation to maintain the confidentiality of any Confidential Information of the other which it can demonstrate: (i) was known by it prior to the disclosure thereof by the other party; (ii) properly comes
into its possession from a third person which is not under any obligation to maintain the confidentiality of such Confidential Information; and/or (iii) has become part of the public domain other than through its fault.
          4.           Equitable Relief.   Each party acknowledges and agrees that the Confidential Information of
the other is deemed by the other to constitute valuable trade secrets of such other party, and that any unauthorized use or disclosure of such information by it may cause the other party irreparable harm for which its remedies at law may be
inadequate. Each party hereby agrees that the other may be entitled, in addition to any other remedies available to it at law or in equity, to injunctive relief to prevent the breach or threatened breach of the other’s obligations
hereunder.
          5.           No Impairment.   Each party agrees that it will not use any
Confidential Information, copyrights, trademarks, trade secrets or patents of the other to which it has been granted access pursuant to this Agreement except for the sole purpose of evaluating the Transaction. However, nothing in this Agreement will
impair the right of either party to use, develop or market technologies, ideas, programs or products similar to those of the other so long as such use, development or marketing does not infringe on the copyrights, trademarks, trade secrets or
patents of the other and so long as the party does not use the Confidential Information of the other party.
          6.
          No Representations.   Although each party will use reasonable efforts to ensure the accuracy of Confidential Information disclosed to the other, neither party makes any
representation or warranty as to the accuracy or completeness of such Confidential Information. Neither party will have any liability to the other under this Agreement for the accuracy or completeness of Confidential Information.
          7.           No Obligation to Complete Transactions.   Nothing herein shall imply any obligation of
either party to proceed with the Transaction or any other transaction between the parties, and each party explicitly reserves the right to terminate the discussions contemplated by this Agreement for any reason or no reason, without liability for
such termination.
          8.           Governing Law.   This Agreement will be deemed entered
into in Denver, Colorado and will be governed by and interpreted in accordance with the substantive laws of the State of Colorado. The parties agree that any dispute arising under this Agreement will be resolved in the state or federal courts in
Denver, Colorado and each party expressly consents to jurisdiction therein.
          9.           No
Assignment.   Neither party may assign this Agreement, nor may any of the rights hereunder be assigned or otherwise transferred to any third party, without the prior written consent of the other party. Any attempted or purported
assignment or other such transfer by either party to any third party without such consent having first been obtained shall be void.
 

           10.           Term.   This Agreement shall be in effect for a
period of one year from the Effective Date; provided however, that the obligations of the parties with respect to any Confidential Information shall continue until the third anniversary of the Effective Date.
          11.           Return of Records.   Upon the request of the disclosing party, the receiving party shall
return to the disclosing party all tangible copies of Confidential Information, or shall destroy the same and certify to the disclosing party that such destruction has occurred. Upon such return or destruction, the receiving party shall not retain
any copies of Confidential Information of the other.
          12.           Entire
Agreement.   This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous negotiations, discussions and understandings of
the parties, whether written or oral, between the parties. Should any provision of this Agreement be determined to be void, invalid or otherwise unenforceable by any court or tribunal of competent jurisdiction, such determination shall not affect
the remaining provisions hereof which shall remain in full force and effect. No waiver or modification of any of the provisions of this Agreement shall be valid unless in writing and signed by officers both of the parties.
          In Witness Whereof, the parties have executed this Agreement as of the date first written above.

					
	ON COMMAND CORPORATION		ALLIN COMMUNICATIONS CORPORATION
	 	 	 	 	 
	By:	 	 	By:	 
		 
  			 
 
	Name:  Chris Sophinos	 	Name:	 
					 

	Title:  President and Chief Executive Officer	 	Title:Amended and Restated 2000 Stock Incentive Plan

 EXHIBIT 10.1 
  

  
 LOGICVISION, INC. 
  
 AMENDED AND RESTATED

  
 2000 STOCK INCENTIVE PLAN 
  

 TABLE OF CONTENTS 
  

	 	 	 	  	Page

		
	 SECTION 1. ESTABLISHMENT AND PURPOSE
	  	1
		
	 SECTION 2. DEFINITIONS
	  	1
	 (a)
	 	 “Affiliate”
	  	1
	 (b)
	 	 “Award”
	  	1
	 (c)
	 	 “Board of Directors”
	  	1
	 (d)
	 	 “Change in Control”
	  	1
	 (e)
	 	 “Code”
	  	2
	 (f)
	 	 “Committee”
	  	2
	 (g)
	 	 “Company”
	  	2
	 (h)
	 	 “Consultant”
	  	2
	 (i)
	 	 “Employee”
	  	3
	 (j)
	 	 “Exchange Act”
	  	3
	 (k)
	 	 “Exercise Price”
	  	3
	 (l)
	 	 “Fair Market Value”
	  	3
	 (m)
	 	 “ISO”
	  	3
	 (n)
	 	 “Nonstatutory Option” or “NSO”
	  	3
	 (o)
	 	 “Offeree”
	  	3
	 (p)
	 	 “Option”
	  	4
	 (q)
	 	 “Optionee”
	  	4
	 (r)
	 	 “Outside Director”
	  	4
	 (s)
	 	 “Parent”
	  	4
	 (t)
	 	 “Participant”
	  	4
	 (u)
	 	 “Plan”
	  	4
	 (v)
	 	 “Predecessor Plan”
	  	4
	 (w)
	 	 “Purchase Price”
	  	4
	 (x)
	 	 “Restricted Share”
	  	4
	 (y)
	 	 “Restricted Share Agreement”
	  	4
	 (z)
	 	 “SAR”
	  	4
	 (aa)
	 	 “SAR Agreement”
	  	4
	 (bb)
	 	 “Service”
	  	4
	 (cc)
	 	 “Share”
	  	4
	 (dd)
	 	 “Stock”
	  	4
	 (ee)
	 	 “Stock Option Agreement”
	  	4
	 (ff)
	 	 “Stock Purchase Agreement”
	  	5
	 (gg)
	 	 “Stock Unit”
	  	5
	 (hh)
	 	 “Stock Unit Agreement”
	  	5
	 (ii)
	 	 “Subsidiary”
	  	5
	 (jj)
	 	 “Total and Permanent Disability”
	  	5
		
	 SECTION 3. ADMINISTRATION
	  	5
	 (a)
	 	 Committee Composition
	  	5
	 (b)
	 	 Committee for Non-Officer Grants
	  	5

  

 i 

	 (c)
	    	 Committee Procedures
	  	5
	 (d)
	    	 Committee Responsibilities
	  	6
		
	 SECTION 4. ELIGIBILITY
	  	7
	 (a)
	    	 General Rule
	  	7
	 (b)
	    	 Outside Directors
	  	7
	 (c)
	    	 Ten–Percent Stockholders
	  	9
	 (d)
	    	 Attribution Rules
	  	9
	 (e)
	    	 Outstanding Stock
	  	9
		
	 SECTION 5. STOCK SUBJECT TO PLAN
	  	9
	 (a)
	    	 Basic Limitation
	  	9
	 (b)
	    	 Annual Increase in Shares
	  	9
	 (c)
	    	 Additional Shares.
	  	10
	 (d)
	    	 Dividend Equivalents
	  	10
		
	 SECTION 6. RESTRICTED SHARES
	  	10
	 (a)
	    	 Restricted Stock Agreement
	  	10
	 (b)
	    	 Payment for Awards
	  	10
	 (c)
	    	 Vesting
	  	11
	 (d)
	    	 Voting and Dividend Rights
	  	11
		
	 SECTION 7. OTHER TERMS AND CONDITIONS OF AWARDS OR SALES
	  	11
	 (a)
	    	 Duration of Offers and Nontransferability of Rights
	  	11
	 (b)
	    	 Withholding Taxes
	  	11
	 (c)
	    	 Restrictions on Transfer of Shares
	  	11
		
	 SECTION 8. TERMS AND CONDITIONS OF OPTIONS
	  	11
	 (a)
	    	 Stock Option Agreement
	  	11
	 (b)
	    	 Number of Shares
	  	12
	 (c)
	    	 Exercise Price
	  	12
	 (d)
	    	 Withholding Taxes
	  	12
	 (e)
	    	 Exercisability and Term
	  	12
	 (f)
	    	 Nontransferability
	  	12
	 (g)
	    	 Exercise of Options Upon Termination of Service
	  	12
	 (h)
	    	 Effect of Change in Control
	  	13
	 (i)
	    	 Leaves of Absence
	  	13
	 (j)
	    	 No Rights as a Stockholder
	  	13
	 (k)
	    	 Modification, Extension and Renewal of Options
	  	13
	 (l)
	    	 Restrictions on Transfer of Shares
	  	13
	 (m)
	    	 Buyout Provisions
	  	13
		
	 SECTION 9. PAYMENT FOR SHARES
	  	14
	 (a)
	    	 General Rule
	  	14
	 (b)
	    	 Surrender of Stock
	  	14
	 (c)
	    	 Services Rendered
	  	14
	 (d)
	    	 Cashless Exercise
	  	14

  

 ii 

	 (e)
	    	 Exercise/Pledge
	  	14
	 (f)
	    	 Promissory Note
	  	14
	 (g)
	    	 Other Forms of Payment
	  	14
		
	 SECTION 10. STOCK APPRECIATION RIGHTS
	  	14
	 (a)
	    	 SAR Agreement
	  	14
	 (b)
	    	 Number of Shares
	  	15
	 (c)
	    	 Exercise Price
	  	15
	 (d)
	    	 Exercisability and Term
	  	15
	 (e)
	    	 Effect of Change in Control
	  	15
	 (f)
	    	 Exercise of SARs
	  	15
	 (g)
	    	 Special Holding Period
	  	15
	 (h)
	    	 Special Exercise Window
	  	15
	 (i)
	    	 Modification or Assumption of SARs
	  	16
		
	 SECTION 11. STOCK UNITS
	  	16
	 (a)
	    	 Stock Unit Agreement
	  	16
	 (b)
	    	 Payment for Awards
	  	16
	 (c)
	    	 Vesting Conditions
	  	16
	 (d)
	    	 Voting and Dividend Rights
	  	16
	 (e)
	    	 Form and Time of Settlement of Stock Units
	  	16
	 (f)
	    	 Death of Recipient
	  	17
	 (g)
	    	 Creditors’ Rights
	  	17
		
	 SECTION 12. ADJUSTMENT OF SHARES
	  	17
	 (a)
	    	 Adjustments
	  	17
	 (b)
	    	 Dissolution or Liquidation
	  	18
	 (c)
	    	 Reorganizations
	  	18
	 (d)
	    	 Reservation of Rights
	  	18
		
	 SECTION 13. DEFERRAL OF AWARDS
	  	18
		
	 SECTION 14. AWARDS UNDER OTHER PLANS
	  	19
		
	 SECTION 15. PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	19
	 (a)
	    	 Effective Date
	  	19
	 (b)
	    	 Elections to Receive NSOs, Restricted Shares or Stock Units
	  	19
	 (c)
	    	 Number and Terms of NSOs, Restricted Shares or Stock Units
	  	19
		
	 SECTION 16. LEGAL AND REGULATORY REQUIREMENTS
	  	19
		
	 SECTION 17. WITHHOLDING TAXES
	  	20
	 (a)
	    	 General
	  	20
	 (b)
	    	 Share Withholding
	  	20
		
	 SECTION 18. LIMITATION ON PARACHUTE PAYMENTS
	  	20
	 (a)
	    	 Scope of Limitation
	  	20
	 (b)
	    	 Basic Rule
	  	20

  

 iii 

	 (c)
	    	 Reduction of Payments
	  	20
	 (d)
	    	 Overpayments and Underpayments
	  	21
	 (e)
	    	 Related Corporations
	  	21
		
	 SECTION 19. NO EMPLOYMENT RIGHTS
	  	21
		
	 SECTION 20. DURATION AND AMENDMENTS
	  	21
	 (a)
	    	 Term of the Plan
	  	21
	 (b)
	    	 Predecessor Plan
	  	21
	 (c)
	    	 Right to Amend or Terminate the Plan
	  	22
	 (d)
	    	 Effect of Amendment or Termination
	  	22
		
	 SECTION 21. EXECUTION
	  	22

  

 iv 

 LOGICVISION, INC. 
  
 AMENDED AND RESTATED 2000 STOCK INCENTIVE PLAN 
  
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
  
 The Plan was adopted by the Board of Directors on August 3, 2000 and was amended and restated by the Board of Directors on September 25, 2000, effective
as of the commencement date of the Company’s initial public offering of its Stock on October 31, 2001, pursuant to a registration statement filed under the Securities Act of 1933 (the “IPO”). The Plan was subsequently amended and
restated by the Board of Directors on January 17, 2002. 
  
 The
purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction
and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve
this purpose by providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights. 
  
 SECTION 2. DEFINITIONS. 
  
 (a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more
Subsidiaries own not less than 50% of such entity. 
  
 (b)
“Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan. 
  
 (c) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
  
 (d) “Change in Control” shall mean the occurrence of any of
the following events: 
  
 (i) A change in the
composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: 
  
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”); or

  
 (B) Were elected, or nominated for election,
to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously
so approved (the “continuing directors”); or 
  

 1 

 (ii) Any “person” (as defined below) who by the acquisition or aggregation of
securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then
outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership of
the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until
such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 
  
 (iii) The consummation of a merger or consolidation of the Corporation with or into another entity or any other corporate reorganization,
if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding
securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 
  
 (iv) The sale, transfer or other disposition of all or substantially all of the Company’s assets. 
  
 For purposes of Section 2(d)(i), the term “look-back” date shall
mean the later of (1) the date of the IPO or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
  
 For purposes of Section 2(d)(ii), the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but
shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of the Stock. 
  
 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be
owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (f) “Committee” shall mean the committee designated by the Board of Directors, which is authorized to
administer the Plan, as described in Section 3 hereof. 
  
 (g)
“Company” shall mean LogicVision, Inc., a Delaware corporation. 
  
 (h) “Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a Subsidiary or an Affiliate as an independent contractor or a member 
  

 2 

 of the board of directors of a Parent or a Subsidiary who is not an Employee. Service as a Consultant shall be considered
Service for all purposes of the Plan. 
  
 (i)
“Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 
  
 (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (k) “Exercise Price” shall mean, in the case of an Option,
the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 
  
 (l) “Fair Market Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as
follows: 
  
 (i) If the Stock was traded
over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to
the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the “Pink
Sheets” published by the National Quotation Bureau, Inc.; 
  
 (ii) If the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
  
 (iii) If the Stock was traded on a United States stock
exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 
  
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by
the Committee in good faith on such basis as it deems appropriate. 
  
 In all
cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 
  
 (m) “ISO” shall mean an employee incentive stock option described in Section 422 of the Code. 
  
 (n) “Nonstatutory Option” or “NSO” shall mean an
employee stock option that is not an ISO. 
  
 (o)
“Offeree” shall mean an individual to whom the Committee has offered the right to acquire Shares under the Plan (other than upon exercise of an Option). 
  

 3 

 (p) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and
entitling the holder to purchase Shares. 
  
 (q)
“Optionee” shall mean an individual or estate who holds an Option or SAR. 
  
 (r) “Outside Director” shall mean a member of the Board of Directors who is not a common-law employee of the Company, a Parent or a Subsidiary. Service as an Outside Director shall be considered
Service for all purposes of the Plan, except for purposes of determining eligibility for the grant of ISOs under Section 4(a). 
  
 (s) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of
the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after
the adoption of the Plan shall be a Parent commencing as of such date. 
  
 (t) “Participant” shall mean an individual or estate who holds an Award. 
  
 (u) “Plan” shall mean this 2000 Stock Incentive Plan of LogicVision, Inc., as amended from time to time. 
  
 (v) “Predecessor Plan” shall mean the Company’s 1994
Flexible Stock Incentive Plan, as amended. 
  
 (w)
“Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 
  
 (x) “Restricted Share” shall mean a Share awarded under the Plan. 
  
 (y) “Restricted Share Agreement” shall mean the agreement
between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 
  
 (z) “SAR” shall mean a stock appreciation right granted under the Plan. 
  
 (aa) “SAR Agreement” shall mean the agreement between the Company and an Optionee which contains the terms,
conditions and restrictions pertaining to his or her SAR. 
  
 (bb)
“Service” shall mean service as an Employee, Consultant or Outside Director. 
  
 (cc) “Share” shall mean one share of Stock, as adjusted in accordance with Section 12 (if applicable). 
  
 (dd) “Stock” shall mean the Common Stock of the Company. 
  
 (ee) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains
the terms, conditions and restrictions pertaining to his Option. 
  

 4 

 (ff) “Stock Purchase Agreement” shall mean the agreement between the Company and an
Offeree who acquires Shares under the Plan that contains the terms, conditions and restrictions pertaining to the acquisition of such Shares. 
  
 (gg) “Stock Unit” shall mean a bookkeeping entry representing the equivalent of one Share, as awarded under the Plan. 
  
 (hh) “Stock Unit Agreement” shall mean the agreement between
the Company and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 
  
 (ii) “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total
combined voting power of all classes of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  
 (jj) “Total and Permanent Disability” shall mean that the
Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted, or can be expected to last, for a continuous period of
not less than 12 months. 
  
 SECTION 3. ADMINISTRATION. 
  
 (a) Committee Composition. The Plan shall be administered by the
Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy 
  
 (i) such requirements as the Securities and Exchange Commission may establish for administrators acting
under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
  
 (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for
exemption under Section 162(m)(4)(C) of the Code. 
  
 (b)
Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the
Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of
the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. 
  
 (c) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings
at such times and places as it shall determine. The acts of a majority of the Committee members present at 
  

 5 

 meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid
acts of the Committee. 
  
 (d) Committee Responsibilities.
Subject to the provisions of the Plan, the Committee shall have full discretionary authority to take the following actions: 
  
 (i) To interpret the Plan and to apply its provisions; 
  
 (ii) To adopt, amend or rescind rules, procedures and forms relating to the Plan; 
  
 (iii) To authorize any person to execute, on behalf of the
Company, any instrument required to carry out the purposes of the Plan; 
  
 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be granted under the Plan; 
  
 (v) To select the Offerees and Optionees; 
  
 (vi) To determine the number of Shares to be offered to each Offeree or to be made subject to each Option; 
  
 (vii) To prescribe the terms and conditions of each award or
sale of Shares, including (without limitation) the Purchase Price, the vesting of the award (including accelerating the vesting of awards) and to specify the provisions of the Stock Purchase Agreement relating to such award or sale; 
  
 (viii) To prescribe the terms and conditions of each Option,
including (without limitation) the Exercise Price, the vesting or duration of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as an ISO or as a Nonstatutory Option, and to specify
the provisions of the Stock Option Agreement relating to such Option; 
  
 (ix) To amend any outstanding Stock Purchase Agreement or Stock Option Agreement, subject to applicable legal restrictions and to the consent of the Offeree or Optionee who entered into such agreement; 
  
 (x) To prescribe the consideration for the grant of each
Option or other right under the Plan and to determine the sufficiency of such consideration; 
  
 (xi) To determine the disposition of each Option or other right under the Plan in the event of an Optionee’s or Offeree’s
divorce or dissolution of marriage; 
  
 (xii) To
determine whether Options or other rights under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 
  

 6 

 (xiii) To correct any defect, supply any omission, or reconcile any inconsistency in the
Plan, any Stock Option Agreement or any Stock Purchase Agreement; and 
  
 (xiv) To take any other actions deemed necessary or advisable for the administration of the Plan. 
  
 Subject to the requirements of applicable law, the Committee may designate persons other than members of the Committee to carry out its responsibilities and may prescribe
such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of Options or other rights under the Plan to persons subject to
Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons deriving their rights from an Offeree or Optionee. No member of the
Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan. 
  
 SECTION 4. ELIGIBILITY. 
  
 (a) General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for
the grant of Restricted Shares, Stock Units, NSOs or SARs, and grants to Outside Directors shall comply with the provisions of Section 4(b). 
  
 (b) Outside Directors. Any other provision of the Plan notwithstanding, the participation of Outside Directors in the Plan shall be subject to the
following restrictions: 
  
 (i) Outside Directors
shall only be eligible for the grant of Restricted Shares, Stock Units, Nonstatutory Options and SARs. 
  
 (ii) Each Outside Director who first joins the Board of Directors after October 31, 2001 shall receive a Nonstatutory Option, subject to
approval of the Plan by the Company’s stockholders, to purchase 7,500 Shares (subject to adjustment under Section 12) on the first business day after his or her election to the Board of Directors. 
  
 (iii) On the first business day following the conclusion of
each regular annual meeting of the Company’s stockholders after such Outside Director’s appointment or election to the Board of Directors, commencing with the annual meeting occurring after October 31, 2001, each Outside Director who will
continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 2,500 Shares, subject to adjustment under Section 12. Each Outside Director who is not initially elected at a regular annual meeting of the
Company’s stockholders shall receive an Option to purchase a pro rata portion of 2,500 Shares within ten business days of his or her election based on the number of full months remaining from date of election until the next regular annual
meeting of the Company’s stockholders divided by 12. Any fractional shares resulting from such calculation shall be rounded up to the nearest whole number. 
  
 (iv) The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b)
shall be equal to 100% of the Fair Market Value of a 
  

 7 

 
Share on the date of grant, payable in one of the forms described in Section 9(a), Section 9(b) or Section 9(d). 
  
 (v) Each Option granted under Section 4(b)(ii) shall become
exercisable in three equal annual installments on each of the first three anniversaries of the date of grant. Except as set forth in the next succeeding sentence, each Option granted under Section 4(b)(iii) above shall become exercisable in full on
the first anniversary of the date of grant. Each Option granted to Outside Directors who were not initially elected at a regular annual meeting of the Company’s stockholders shall become exercisable in full at the next regular annual meeting of
the Company’s stockholders following the date of grant. Notwithstanding the foregoing, each Option that has been outstanding for not less than six months shall become exercisable in full in the event that a Change in Control occurs with respect
to the Company. 
  
 (vi) Subject to Section
4(b)(vii) and Section 4(b)(viii), all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the tenth anniversary of the date of grant of such Options. 
  
 (vii) If an Optionee’s Service terminates for any
reason other than death, then his or her Options shall expire on the earliest of the following occasions: 
  
 (A) The expiration date determined pursuant to Section 4(b)(vi); 
  
 (B) The date 24 months after the termination of the Optionee’s Service, if the termination occurs
because of his or her Total and Permanent Disability; or 
  
 (C) The date six months after the termination of the Optionee’s Service for any reason other than Total and Permanent Disability. 
  
 The Optionee may exercise all or part of his or her Options at any time before the expiration of such Options under the
preceding sentence, but only to the extent that such Options had become exercisable before his or her Service terminated. The balance of such Options shall lapse when the Optionee’s Service terminates. In the event that the Optionee dies after
the termination of his or her Service but before the expiration of his or her Options, all or part of such Options may be exercised at any time prior to their expiration by the executors or administrators of the Optionee’s estate or by any
person who has acquired such Options directly from him or her by bequest, inheritance or beneficiary designation under the Plan, but only to the extent that such Options had become exercisable before his or her Service terminated. 
  
 (viii) If an Optionee dies while he or she is in Service,
then his or her Options shall expire on the earlier of the following dates: 
  
 (A) The expiration date determined pursuant to Section 4(b)(vi) above; or 
  

 8 

 (B) The date 24 months after his or her death. 
  
 All or part of the Optionee’s Options may be exercised at any time
before the expiration of such Options under the preceding sentence by the executors or administrators of his or her estate or by any person who has acquired such Options directly from him or her by bequest, inheritance or beneficiary designation
under the Plan. 
  
 (ix) No Option shall be
transferable by the Optionee other than by will, by written beneficiary designation or by the laws of descent and distribution. An Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or
legal representative. Except as permitted by the Committee, no Option or interest therein may be transferred, assigned, pledged or hypothecated by the Optionee during his or her lifetime, whether by operation of law or otherwise, or be made subject
to execution, attachment or similar process. 
  
 (c)
Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of an ISO unless (a) the Exercise
Price under the ISO is not less than 110% of the Fair Market Value of a Share on the date of grant; and (b) the term of the ISO does not exceed 5 years from the date of grant. 
  
 (d) Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an Employee shall be
deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be
deemed to be owned proportionately by or for its stockholders, partners or beneficiaries. 
  
 (e) Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock” shall
not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 
  
 SECTION 5. STOCK SUBJECT TO PLAN. 
  
 (a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The maximum aggregate number of
Options, SARs, Stock Units and Restricted Shares awarded under the Plan shall not exceed 1,000,000 Shares, plus the additional Shares described in Section 5(b) and Section 5(c). The limitation of this Section 5(a) shall be subject to adjustment
pursuant to Section 12. 
  
 (b) Annual Increase in Shares.
As of January 1 of each year, commencing with the year 2002, the aggregate number of Options, SARs, Stock Units and Restricted Shares that may be awarded under the Plan shall automatically increase by a number equal to the lesser of (i) 750,000
shares, (ii) 3.5% of the outstanding shares of Stock of the Company on such date or (iii) a lesser amount determined by the Board. The aggregate number of Shares that may be issued under the Plan shall at all times be subject to adjustment pursuant
to Section 12. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the 
  

 9 

 Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to
satisfy the requirements of the Plan. 
  
 (c) Additional
Shares. 
  
 (i) On the effective date of the
Plan, all shares of Common Stock which are then available for the grant of stock options or for issuance under the Predecessor Plan (together with such additional number of shares as may be required pursuant to the antidilution provisions of the
Predecessor Plan), shall become available for Awards under the Plan. 
  
 (ii) Upon the expiration or termination unexercised of currently outstanding options or the repurchase of restricted shares under the Predecessor Plan, the Company shall reserve an equivalent number of shares as were
initially reserved for issuance pursuant to such expired or terminated unexercised options or repurchased shares (together with such additional number of shares as may be required pursuant to the antidilution provisions of the Predecessor Plan) of
its Common Stock, subject to adjustment under Section 12, and such shares shall become available for Awards under the Plan. 
  
 (iii) If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for
Awards under the Plan. If Stock Units, Options or SARs are forfeited or terminate for any other reason before being exercised, then the corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then
only the number of Shares (if any) actually issued in settlement of such Stock Units shall reduce the number available under Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the
number of Shares (if any) actually issued in settlement of such SARs shall reduce the number available in Section 5(a) and the balance shall again become available for Awards under the Plan. The foregoing notwithstanding, the aggregate number of
Shares that may be issued under the Plan upon the exercise of ISOs shall not be increased when Restricted Shares or other Shares are forfeited. 
  
 (d) Dividend Equivalents. Any dividend equivalents paid or credited under the Plan shall not be applied against the number of Restricted Shares,
Stock Units, Options or SARs available for Awards, whether or not such dividend equivalents are converted into Stock Units. 
  
 SECTION 6. RESTRICTED SHARES 
  
 (a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the
recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered
into under the Plan need not be identical. 
  
 (b) Payment for
Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past

  

 10 

 services and future services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient
shall furnish consideration with a value not less than the par value of such Restricted Shares in the form of cash, cash equivalents, or past services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 

 
 (c) Vesting. Each Award of Restricted Shares may or may not be
subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the
Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in
Control occurs with respect to the Company. 
  
 (d) Voting and
Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may require that the holders of
Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 

 
 SECTION 7. OTHER TERMS AND CONDITIONS OF AWARDS OR SALES. 
  
 (a) Duration of Offers and Nontransferability of Rights. Any right to
acquire Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Offeree 30 days after the grant of such right was communicated to him by the Committee. Such right shall not be transferable and shall be
exercisable only by the Offeree to whom such right was granted. 
  
 (b) Withholding Taxes. As a condition to the purchase of Shares, the Offeree shall make such arrangements as the Committee may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in
connection with such purchase. 
  
 (c) Restrictions on Transfer
of Shares. Any Shares awarded or sold under the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be
set forth in the applicable Stock Purchase Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
  
 SECTION 8. TERMS AND CONDITIONS OF OPTIONS. 
  
 (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock
Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a
reduction in the Optionee’s other compensation. A Stock Option Agreement 
  

 11 

 may provide that a new Option will be granted automatically to the Optionee when he or she exercises a prior Option and
pays the Exercise Price in a form described in Section 9(b). 
  
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 12. No Employee or Consultant shall be
granted Options to purchase more than 500,000 Shares in any fiscal year of the Company, except that Options granted to a new Employee or Consultant in the fiscal year of the Company in which his or her Service first commences shall not cover more
than 1,000,000 Shares (in each case subject to adjustment in accordance with Section 12). 
  
 (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as
otherwise provided in Section 4(c), and the Exercise Price of an NSO shall not be less than 100% of the Fair Market Value of a Share on the date of grant. Subject to the foregoing in this Section 8(c), the Exercise Price under any Option shall be
determined by the Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 9. 
  
 (d) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the
satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state or local
withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 
  
 (e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable.
The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for Employees described in Section 4(c)). A Stock Option Agreement may
provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s service.
Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 8(e), the Committee at its sole discretion shall
determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 
  
 (f) Nontransferability. Except as permitted by the Committee, during an Optionee’s lifetime, his or her Option(s) shall be exercisable only by
the Optionee and shall not be transferable. In the event of an Optionee’s death, his or her Option(s) shall not be transferable other than by will or by the laws of descent and distribution. 
  
 (g) Exercise of Options Upon Termination of Service. Each Stock Option
Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors
or administrators of the Optionee’s estate or any 
  

 12 

 person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be
determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
  
 (h) Effect of Change in Control. The Committee may determine, at the
time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event that a Change in Control occurs with respect to the Company. 
  
 (i) Leaves of Absence. An Employee’s Service shall cease when
such Employee ceases to be actively employed by, or a consultant or adviser to, the Company (or any subsidiary) as determined in the sole discretion of the Board of Directors. For purposes of Options, Service does not terminate when an Employee goes
on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. However, for purposes of determining
whether an Option is entitled to ISO status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract.
Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company shall have the discretionary authority to determine which leaves count toward Service, and when Service terminates for
all purposes under the Plan. 
  
 (j) No Rights as a
Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made,
except as provided in Section 12. 
  
 (k) Modification,
Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not
granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the
Optionee, alter or impair his or her rights or obligations under such Option. 
  
 (l) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer
restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
  
 (m) Buyout Provisions. The Committee may at any time (a) offer to buy
out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall
establish. 
  

 13 

 SECTION 9. PAYMENT FOR SHARES. 
  
 (a) General Rule. The entire Exercise Price of Shares issued under the Plan shall be payable in lawful money of the
United States of America at the time when such Shares are purchased, except as provided in Section 9(b) through Section 9(g) below. 
  
 (b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting
to the ownership of, Shares which have already been owned by the Optionee or his representative for more than 12 months. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The
Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for
financial reporting purposes. 
  
 (c) Services Rendered. At
the discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall
make a determination (at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section 6(b). 
  
 (d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by
delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (e) Exercise/Pledge. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds
to the Company in payment of the aggregate Exercise Price. 
  
 (f)
Promissory Note. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note. However, the par value of the Common Shares
being purchased under the Plan, if newly issued, shall be paid in cash or cash equivalents. 
  
 (g) Other Forms of Payment. To the extent that a Stock Option Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules. 
  
 SECTION 10. STOCK APPRECIATION RIGHTS. 
  
 (a) SAR Agreement. Each grant of a SAR under the Plan shall be
evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR
Agreements entered into under the Plan need not be 
  

 14 

 identical. SARs may be granted in consideration of a reduction in the Optionee’s other compensation. 
  
 (b) Number of Shares. Each SAR Agreement shall specify the number of
Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 12. SARs granted to any Optionee in a single calendar year shall in no event pertain to more than 500,000 Shares, except that SARs
granted to a new Employee or Consultant in the fiscal year of the Company in which his or her Service first commences shall not pertain to more than 1,000,000 Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Section 12. 
  
 (c) Exercise Price. Each SAR Agreement shall specify the Exercise
Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
  
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its
term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included
in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted
under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
  
 (e) Effect of Change in Control. The Committee may determine, at the
time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company. 
  
 (f) Exercise of SARs. If, on the date when a SAR expires, the Exercise
Price under such SAR is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such portion. Upon
exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of
cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price.

  
 (g) Special Holding Period. To the extent required by
Section 16 of the Exchange Act or any rule thereunder, an SAR shall not be exercised for cash unless both it and the related Option have been outstanding for more than six months. 
  
 (h) Special Exercise Window. To the extent required by Section 16 of the Exchange Act or any rule thereunder, an SAR
may only be exercised for cash during a period which 
  

 15 

 (a) begins on the third business day following a date when the Company’s quarterly summary statement of sales and
earnings is released to the public and (b) ends on the 45th business day following such date. This Section 10(h) shall not apply if the exercise occurs automatically on the date when the related Option expires, and the Committee may determine that
it shall not apply to limited SARs that are exercisable only in the event of a Change in Control. 
  
 (i) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may
accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of a SAR shall, without the consent of the Optionee, may alter or impair his or her rights or obligations under such SAR. 
  
 SECTION 11. STOCK UNITS. 
  
 (a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the
Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock Unit Agreements entered into under the Plan need not be
identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
  
 (b) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award
recipients. 
  
 (c) Vesting Conditions. Each Award of Stock
Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for accelerated vesting in the event of the
Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested in the event that a Change in Control occurs
with respect to the Company. 
  
 (d) Voting and Dividend
Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles
the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form
of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the
Stock Units to which they attach. 
  
 (e) Form and Time of
Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or
smaller than the number included in the original Award, based on predetermined performance 
  

 16 

 factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair
Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have
lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to
adjustment pursuant to Section 12. 
  
 (f) Death of
Recipient. Any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Units Award under the Plan shall designate one or more
beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was
designated or if no designated beneficiary survives the Award recipient, then any Stock Units Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
  
 (g) Creditors’ Rights. A holder of Stock Units shall have no
rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
  
 SECTION 12. ADJUSTMENT OF SHARES. 
  
 (a) Adjustments. In the event of a subdivision of the outstanding
Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by
reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 
  
 (i) The number of Options, SARs, Restricted Shares and Stock
Units available for future Awards under Section 5; 
  
 (ii) The limitations set forth in Section 8(b) and Section 10(b); 
  
 (iii) The number of NSOs to be granted to Outside Directors under Section 4(b); 
  
 (iv) The number of Shares covered by each outstanding Option and SAR; 
  
 (v) The Exercise Price under each outstanding Option and SAR; or 
  
 (vi) The number of Stock Units included in any prior Award
which has not yet been settled. 
  
 Except as provided in this Section 12, a
Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any 
  

 17 

 subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class. 
  
 (b)
Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 (c) Reorganizations. In the event that the Company is a party to a
merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement shall provide for: 
  
 (i) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 
  
 (ii) The assumption of the outstanding Awards by the
surviving corporation or its parent or subsidiary; 
  
 (iii) The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 
  
 (iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 
  
 (v) Settlement of the full value of the outstanding Awards
in cash or cash equivalents followed by cancellation of such Awards. 
  
 (d) Reservation of Rights. Except as provided in this Section 12, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase
or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 SECTION 13. DEFERRAL OF AWARDS. 
  
 The Committee (in its sole discretion) may permit or require a Participant to: 
  
 (a) Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of
Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
  
 (b) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of
Stock Units; or 
  

 18 

 (c) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an
Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by
reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant. 
  
 A deferred compensation account established under this Section 13 may be credited with interest or other forms of investment return, as determined by the
Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to
the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms
pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Section 13. 
  
 SECTION 14. AWARDS UNDER OTHER PLANS.

  
 The Company may grant awards under other plans or
programs. Such awards may be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares
available under Section 5. 
  
 SECTION 15. PAYMENT OF DIRECTOR’S FEES IN
SECURITIES. 
  
 (a) Effective Date. No provision of
this Section 15 shall be effective unless and until the Board has determined to implement such provision. 
  
 (b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments
and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under
this Section 15 shall be filed with the Company on the prescribed form. 
  
 (c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash
shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board. 
  
 SECTION 16. LEGAL AND REGULATORY REQUIREMENTS. 
  
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of
law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on 
  

 19 

 which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling
from any governmental agency which the Company determines is necessary or advisable. 
  
 SECTION 17. WITHHOLDING TAXES. 
  
 (a)
General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise
in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
  

(b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on
the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding.

  
 SECTION 18. LIMITATION ON PARACHUTE PAYMENTS. 
  
 (a) Scope of Limitation. This Section 18 shall apply to an Award
unless the Committee, at the time of making an Award under the Plan or at any time thereafter, specifies in writing that such Award shall not be subject to this Section 18. If this Section 18 applies to an Award, it shall supersede any contrary
provision of the Plan or of any Award granted under the Plan. 
  
 (b) Basic Rule. In the event that the independent auditors most recently selected by the Board (the “Auditors”) determine that any payment or transfer by the Company under the Plan to or for the benefit of a Participant (a
“Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in Section 280G of the Code, then the aggregate present value of all Payments shall
be reduced (but not below zero) to the Reduced Amount. For purposes of this Section 18, the “Reduced Amount” shall be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any
Payment to be nondeductible by the Company because of Section 280G of the Code. 
  
 (c) Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of Section 280G of the Code, then the Company shall promptly give the Participant notice to
that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the Payments shall be eliminated or reduced (as long as after such
election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within 10 days of receipt of notice. If no such election is made by the Participant within such 10-day
period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such 
  

 20 

 election the aggregate present value of the Payments equals the Reduced Amount) and shall notify the Participant promptly
of such election. For purposes of this Section 18, present value shall be determined in accordance with Section 280G(d)(4) of the Code. All determinations made by the Auditors under this Section 18 shall be binding upon the Company and the
Participant and shall be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable following such determination and the elections hereunder, the Company shall pay or transfer to or for the benefit of
the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to or for the benefit of the Participant in the future such amounts as become due to him or her under the Plan. 
  
 (d) Overpayments and Underpayments. As a result of uncertainty in the
application of Section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that Payments will have been made by the Company that should not have been made (an “Overpayment”) or that additional
Payments that will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In the event that the Auditors, based upon the assertion of a
deficiency by the Internal Revenue Service against the Company or the Participant that the Auditors believe has a high probability of success, determine that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan
to the Participant which he or she shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by the Participant to the Company if
and to the extent that such payment would not reduce the amount subject to taxation under Section 4999 of the Code. In the event that the Auditors determine that an Underpayment has occurred, such Underpayment shall promptly be paid or transferred
by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code. 
  
 (e) Related Corporations. For purposes of this Section 18, the term “Company” shall include affiliated corporations to the extent
determined by the Auditors in accordance with Section 280G(d)(5) of the Code. 
  
 SECTION 19. NO EMPLOYMENT RIGHTS. 
  
 No
provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any
person’s Service at any time and for any reason, with or without notice. 
  
 SECTION 20. DURATION AND AMENDMENTS. 
  
 (a)
Term of the Plan. The Plan, as set forth herein, shall terminate automatically on August 2, 2010 and may be terminated on any earlier date pursuant to Section 20(c) below. 
  
 (b) Predecessor Plan. The Plan shall serve as the successor to the Predecessor Plan, and no further option grants
shall be made under the Predecessor Plan after the Plan’s effective date. All options outstanding under the Predecessor Plans as of the Plan’s effective date shall, immediately upon approval of the Plan by the Company’s stockholders,
be incorporated into the 
  

 21 

 Plan and treated as outstanding options under the Plan. However, each outstanding option so incorporated shall continue
to be governed solely by the terms of the documents evidencing such option, and no provision of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such incorporated options with respect to their
acquisition of shares of Stock. 
  
 (c) Right to Amend or
Terminate the Plan. The Board of Directors may amend or terminate the Plan at any time and for any reason. Rights and obligations under any Option granted before amendment of the Plan shall not be materially impaired by such amendment, except
with consent of the person to whom the Option was granted. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules. 
  
 (d) Effect of Amendment or Termination. No Shares shall be issued or
sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously
granted under the Plan. 
  
 SECTION 21. EXECUTION. 
  
 To record the amendment and restatement of the Plan by the Board of
Directors on January 17, 2002, the Company has caused its authorized officer to execute the same. 
  

	 LOGICVISION, INC.

			
	 	 	 By
	 	 /s/ John H. Barnet

	 	 	 	 	John H. Barnet
	 	 	 	 	Vice President of Finance and
	 	 	 	 	Chief Financial Officer

  

 22

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