Document:

Bentley
Securities Corporation

          360
Lexington Avenue, 3rd Floor

          New
York, New York 10017

          (212)
972-8700

          

          CONFIDENTIAL

          

          August 3,
2009

          

          Dr. Craig
A Zabala

          Chairman
of the Board, President & Chief Executive Officer

          Blackhawk
Capital Group BDC, Inc.

          14 Wall
Street, Suite 1100B

          New York,
NY 10005

          

          Dear Dr.
Zabala,

          

          This
letter (the "Agreement") will confirm the engagement of Bentley Securities
Corporation ("Placement Agent") by Blackhawk Capital Group BDC, Inc., a Delaware
corporation and a business development company registered under the Investment
Company Act of 1940, as amended (the "Company"), as placement agent in
connection with the Company's Rule 506 offering under Regulation D under the
Securities Act of 1933, as amended (the "Securities Act"), of up to
$250,000,000.00 in common stock ("Securities" or “Shares”) to qualified
institutional buyers ("QIBs") and "accredited investors" (as those terms are
defined under the Securities Act) (the "Investors") (the
“Offering”).  The Offering will be pursuant to a Confidential Private
Placement Memorandum dated July 8, 2009 (“Memorandum”) and a subscription
agreement and purchase questionnaire ("Subscription Agreement").  The
maximum amount to be raised in the Offering is $250,000,000.00 (and 50,000,000
Shares have been sold).  There is no minimum requirement for the sale
of Shares by the Company.  Closings will occur upon receipt of funds
as received.  Investors must be advised that there is no minimum
amount of subscriptions that must be raised in the Offering before the initial
closing or any “rolling” closing can take place.  Funds will be placed
into an escrow account prior to any closing.  The Company reserves the
right to lower the minimum or increase the maximum at its sole
discretion.  The purchase price shall be $5.00 per Share.

           

          
            
              	
                    	
                      1. 

                    	
                      Scope
      of Placement Agent's Services.  Placement Agent will
      assist in the distribution of Offering Materials (as hereinafter defined)
      to potential investors, report to the Company on the status of potential
      investors, assist in consummating the Offering, and perform such other
      services, as necessary and as requested by the Company, including, but not
      limited to:

                    

            

          

           

          
            
              	
                    	
                      (a)

                    	
                      familiarizing
      itself to the extent it deems appropriate and feasible with the business
      operations, financial condition, and prospects of the
    Company,

                    

            

          

           

          
            	
                  	
                    

                      (b)  

                    

                  	
                    screening
      and contacting prospective investors,
and

                  

          

           

          
            	
                  	
                    

                      (c)  

                    

                  	
                    assisting
      in negotiations with prospective
investors.

                  

          

           

          It is
understood by both parties that Placement Agent intends to solicit interest from
a limited number of potential Investors (QIBs and accredited
investors).  Placement Agent will, in its sole discretion, determine
the reasonableness of their efforts and are under no obligation to perform at
any level other than what each deems reasonable.  The Company shall
retain control of the Offering and shall have the right to determine (a) whether
to accept and close the sale of the Securities to a specific Investor, (b)
whether to close or terminate the Offering, and (c) the content of the Offering
Materials. The Company shall retain control of the Offering and shall have the
right to determine (a) whether to accept and close the sale of any Securities to
a specific Investor, (b) whether to close or terminate the Offering, (c) whether
to change any of the terms of the Offering, and (d) the content of the Offering
Materials.

           

          
            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

          

           

          
            	
                  	
                    

                      2.  

                    

                  	Fees.  In
      return for Placement Agent's services in the placement of Securities, the
      Company will pay Placement Agent a cash fee equal to five percent (5%) of
      the gross proceeds (the "Financing Fee") of any Securities placed by
      Placement Agent.  Any Financing Fees payable to Placement Agent
      will be due at the respective closing date(s) of the Offering and shall be
      payable to Placement Agent by the Company.  The Company will
      reimburse Placement Agent for any out-of-pocket expenses reasonably
      incurred in connection with this Agreement; provided, however, that any
      such expenses in excess of $1,000.00 will require prior approval by the
      Company.

          

           

          
            	
                  	
                    

                      3.  

                    

                  	Term.  Unless
      extended, the term of this Agreement shall commence August 4, 2009 and
      terminate on the earliest to occur of:  (i) ten (10) calendar
      days after written notice given to the Company by Placement Agent of a
      potential Investor purchasing at least 50,000,000 Shares that will close
      on the purchase of Shares within five (5) calendar days of the date of
      such written notice; (ii) 180 calendar days from August 4, 2009; (iii) the
      date of closing and funding by any Investor of a Subscription Agreement
      for a minimum of 50,000,000 Shares (the "Term"); (iv) ten (10) calendar
      days after written notice given to Placement Agent by the Company that the
      Offering will be closed at the sole discretion of the Company; or (v) upon
      ten (10) days written notice by either party hereto.  Upon any
      termination or expiration of this Agreement, neither the Company nor a
      potential Placement Investor shall have any obligation or liability to any
      other party under this Agreement.  For a period of 180 calendar
      days from August 4, 2009 ("Period"), Placement Agent shall have the
      non-exclusive right on behalf of the Company to solicit prospective
      Investors who are QIBs and/or accredited investors regarding the possible
      sale to such Investors of Shares.  During the Period, Placement
      Agent shall not have the right to conduct any other discussions on behalf
      of the Company regarding any matter other than the sale of the Shares to
      the prospective Investors.  For purposes of clarification, the
      Company during the Period shall deal on a non-exclusive basis with
      Placement Agent concerning the sale of the Shares.  The
      provisions in this agreement with respect to Fees and indemnification
      (including Exhibit A hereto) shall survive such
  termination.

          

           

          For a
period up to one year from the termination of this Agreement and if Placement
Agent enters into a selling group of any subsequent securities offerings of the
Company, then Placement Agent shall receive additional financing fees
("Additional Fees") if the Company sells securities to those Investors
previously introduced by Placement Agent ("Protected
Investors").  Prior to the termination date, Placement Agent will
furnish the Company with a written list of the Protected
Investors.  The Additional Fees will be equal to any underwriting or
placement fees that are listed in any future offering circular or
prospectus.

           

          
            
              
                 

              

              
                2

                
                  

                

              

              
                 

              

            

          

           

          
            	
                  	
                    

                      4.  

                    

                  	 Company
      Information.  The Company
      will furnish Placement Agent such information concerning the Company as
      Placement Agent reasonably determines to be appropriate with respect to
      the Offering ("Information").  The Company shall afford
      Placement Agent and its counsel and representatives full and complete
      access to its books and records and will use commercially reasonable
      efforts to afford Placement Agent with full and complete cooperation of
      management to gather the Information on a reasonable basis.  The
      Company recognizes and confirms that Placement Agent (a) will use and rely
      on the Information in performing the services contemplated by this
      Agreement, without independently verifying the accuracy and completeness
      of the same, (b) does not assume responsibility for the accuracy or
      completeness of the Information, and (c) will not make an appraisal of any
      assets or liability of the Company.

          

           

          The
Company hereby represents to Placement Agent that all solicitation materials
prepared by the Company and used in connection with the Offering, including,
without limitation, the Confidential Private Placement Memorandum (the "Offering
Materials") will not, as of the date of any offer or sale in connection with the
Offering, contain any untrue statement of a material fact or omit a material
fact necessary to make the statements contained therein, not misleading, in
light of the circumstances under which they were made.  If at any time
an event occurs as a result of which the Offering Materials, as then amended or
supplemented, would include an untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made when such Offering Materials are
delivered to a prospective purchaser pursuant hereto, not misleading, the
Company will promptly notify Placement Agent to suspend solicitation of
prospective purchasers in connection with the Offering; and if the Company
decides to amend or supplement the Offering Materials, it will promptly advise
Placement Agent by telephone (with confirmation in writing) and will promptly
prepare an amendment or supplement that will correct such statement or
omission.

           

          Placement
Agent will not violate, or cause the Company to violate, any applicable federal
and state securities laws in connection with the Offering.

           

          
            	
                  	
                    

                      5.  

                    

                  	Confidentiality.  
      Placement Agent will be bound by the confidentiality agreement entered
      into between the Company and Bentley Associates L.P. dated June 24,
      2009.

          

           

          
            	
                  	
                    

                      6.  

                    

                  	Representations and Warranties of
      Placement Agent. The Placement Agent represents and warrants
      to the Company as follows, to the best of its knowledge:  (a) it
      is a licensed broker-dealer registered with the SEC, FINRA and State
      securities laws and regulations and is licensed under FINRA and State
      securities laws regulations to sell Securities to QIBS and accredited
      investors; (b) there are no judgments, orders, decrees, or like actions,
      or any proceedings pending, before the SEC, FINRA, any State, or any court
      or arbitration panel that prohibit or effect it from carrying out its
      obligations under this Agreement; and (c) this Agreement has been duly
      authorized and approved by it, does not contravene its organizational
      documents or any agreement or order to which it is a party, and is a legal
      and valid obligation binding on it.

          

           

          
            	
                  	
                    

                      7.  

                    

                  	Indemnification.  The
      Company acknowledges that Placement Agent will be acting on behalf of the
      Company and will require indemnification by the Company.  The
      Company further acknowledges that Placement Agent's indemnification
      provisions attached hereto as Exhibit
      A are incorporated by reference herein or are made a part hereof
      for all purposes as though set forth entirely
herein.

          

           

          
            
              
                 

              

              
                3

                
                  

                

              

              
                 

              

            

          

           

          
            	
                  	
                    

                      8.  

                    

                  	Miscellaneous.  The
      Offering will be completed in accordance with Rule 506 under Regulation D
      under the Securities Act and all applicable state or other jurisdictional
      securities laws (i.e. "blue sky" laws).  All prospective
      Investors will be persons who qualify as QIBs and/or accredited investors
      under all applicable federal and state securities laws and who execute a
      Subscription Agreement.

          

           

          The
Company shall have the right to identify Investors with which it has
affiliations who would be suitable QIBs and/or accredited investors for the
Offering ("Company-Introduced Investors"). In the event that the Company decides
that these Investors are suitable for the Offering and these Investors purchase
Securities in the Offering, no fees shall be due to Placement Agent respecting
Securities purchased by Company-Introduced Investors pursuant to Section 2
above.

           

          The
Company agrees that, following the closing of the Offering, Placement Agent and
shall have the right to place advertisements in financial and other newspapers
and journals at their own expense describing its services to the Company
hereunder, provided that Placement Agent will submit a copy of any such
advertisement to the Company for its approval, which approval shall not be
unreasonably withheld or delayed, and that such action is not in violation of
Rule 506 under Regulation D or other federal and state securities
laws.

           

          The
parties agree that their relationship under this Agreement is an advisory
relationship only, and nothing herein shall cause the Placement Agent to be
partners, agents or fiduciaries of, or joint venture partners with, the Company
or with each other.

           

          This
Agreement may not be amended or modified except in writing and shall be governed
by, and construed in accordance with the laws of the State of New
York.

           

          If this
Agreement reflects our mutual understanding, please execute two copies in the
space indicated below and return one to us.

           

          Very
truly yours,

          

          BENTLEY
SECURITIES CORPORATION

          

          

          
            	 
        	
                    /s/ H. Bradley Southern

                  	 
      
	
                    H.
      Bradley Southern

                  
	
                    Managing
      Director

                  

          

          

          

          BLACKHAWK
CAPITAL GROUP BDC, INC.

          

          
            	 
        	
                    /s/ Craig A. Zabala

                  	 
      
	
                    Dr.
      Craig A Zabala

                  
	
                    Chairman
      of the Board, President & Chief Executive
  Officer

                  

          

          

          
            
              
                 

              

              
                4

                
                  

                

              

              
                 

              

            

          

           

          Exhibit
A

          

          Indemnification

          

          The
Company agrees to indemnify and hold harmless the Placement Agent together with
its affiliates, directors, officers, agents, and employees (Placement Agent each
such entity or person, an "Indemnified Person"), from and against any and all
losses, claims, damages, judgments, and liabilities, expenses, or costs (and all
actions in respect thereof and any legal or other expenses in giving testimony
or furnishing documents in response to a subpoena or otherwise), including the
cost of investigating, preparing for, or defending any such action or claim,
whether or not in connection with litigation in which an Indemnified Person is a
party, as and when incurred, directly or indirectly caused by, relating to,
based upon, or arising out of Placement Agent's performance of its engagement by
the Company under the letter agreement dated as of August 3, 2009, as it may be
amended from time to time (the "Agreement"), or otherwise arising out of or in
connection with advice or services provided or to be provided by Indemnified
Persons pursuant to the Agreement, the transactions contemplated thereby, or any
Indemnified Person’s actions or inactions in connection with any such advice,
services, or transactions, including any Indemnified Person's sole or
contributory negligence, if such activities were performed (i) in good faith and
(ii) in such manner reasonably believed by such Indemnified Person to be within
the scope of the authority conferred by the Agreement or by law and to be on
behalf of the Company or in furtherance of the performance of Placement Agent's
services under the Agreement; provided, however, such indemnification agreement
shall not apply to any such loss, claim, damage, liability, or cost incurred by
any Indemnified Person to the extent it is found in a final judgment by a court
of competent jurisdiction (not subject to further appeal) to have resulted
primarily and directly from the gross negligence or willful misconduct or bad
faith of such Indemnified Person.  The Company also agrees that no
Indemnified Person shall have any liability (whether direct or indirect, in
contract or tort or otherwise) to the Company for or in connection with the any
advice or services provided by any Indemnified Persons in connection with the
Agreement, the transactions contemplated by the Agreement, or any Indemnified
Persons’ actions or inactions in connection with any such advice, services, or
transactions except for any such liability for losses, claims, damages,
liabilities, or costs found in a final judgment by a court of competent
jurisdiction (not subject to further appeal) to have resulted primarily and
directly from such Indemnified Person’s gross negligence or willful misconduct
or bad faith in connection with such advice, actions, inactions, or
services.

          

          These
Indemnification Provisions shall be in addition to any liability that the
Company may otherwise have to any Indemnified Person and shall extend to the
following: Placement Agent, its affiliated entities, directors, officers,
employees, agents, legal counsel and controlling persons of Placement Agent
within the meaning of the federal securities laws, and the respective
successors, assigns, heirs, beneficiaries, and legal representatives of each of
the foregoing indemnified persons or entities.  All references to
Placement Agent, or Indemnified Persons, in these Indemnification Provisions
shall be understood to include any and all of the foregoing indemnified persons
or entities.

          

          If any
action, proceeding, or investigation is commenced, as to which an Indemnified
Person proposes to demand such indemnification, it will notify the Company with
reasonable promptness; provided, however, that any failure by an Indemnified
Person to notify the Company will not relieve the Company from its obligations
hereunder except if and only to the extent that the Company’s defense of such
action, proceeding or investigation is actually prejudiced by the Indemnified
Person’s failure so to notify the Company.  Placement Agent will have
the right to retain counsel of its own choice to represent them; however, such
firm shall be acceptable to the Company, which acceptance shall not be
unreasonably withheld, and unless the Company assumes Placement Agent's defense
as provided below, the Company will pay the reasonable fees and expenses of such
counsel, and such counsel shall to the fullest extent consistent with its
professional responsibilities cooperate with the Company and any counsel
designated by it.  The Company will be entitled to participate at its
own expense in the defense, or if it so elects, to assume and control the
defense of any action, proceeding, or investigation, but if the Company elects
to assume the defense, such defense shall be conducted by counsel reasonably
acceptable to Placement Agent.  Any Indemnified Person may retain
additional counsel of its own choice to represent it but shall bear the fees and
expenses of such counsel unless the Company shall have specifically authorized
the retaining of such counsel.  The Company will not be liable for any
settlement of any claim against an Indemnified Person made without its written
consent.

           

          
            
              
                 

              

              
                5

                
                  

                

              

              
                 

              

            

          

          

          In order
to provide for just and equitable contribution, if a claim for indemnification
pursuant to these Indemnification Provisions is made but it is found in a final
judgment by a court of competent jurisdiction (not subject to further appeal)
that such indemnification may not be enforced in such case, even though the
express provisions hereof provide for indemnification in such case, then the
Company, on the one hand, and any Indemnified Person, on the other hand, shall
contribute to the losses, claims, damages, liabilities, or costs to which the
Indemnified Persons may be subject in accordance with the relative benefits
received by the Company, on the one hand, and Placement Agent, on the other
hand.  No person found liable for a fraudulent misrepresentation shall
be entitled to contribution from any person who is not also found liable for
such misrepresentation.  Notwithstanding the foregoing, Placement
Agent shall not be obligated to contribute any amount hereunder that exceeds the
amount of fees received by Placement Agent pursuant to the
Agreement.

          

          Neither
termination nor completion of the engagement of Placement Agent or any
Indemnified Person under the Agreement shall affect the provisions of these
Indemnification Provisions, which shall then remain operative and in full force
and effect for five years.

          

          If any
provision contained in this Exhibit A is held by a court
of competent jurisdiction or other authority to be invalid, void, unenforceable,
or against its regulatory policy, the remainder of the provisions contained in
this Exhibit A shall
remain in full force and effect and shall in no way be affected, impaired, or
invalidated.  These Indemnification Provisions may not be amended or
modified in any way, except by subsequent agreement executed in
writing.

           

        

      

    

    
      
        
           

        

        
          6DELTATHREE,
INC.

     

    2009
STOCK INCENTIVE PLAN

    

    INCENTIVE STOCK OPTION
GRANT

     

    This
INCENTIVE STOCK OPTION GRANT AGREEMENT (the “Agreement”), dated as
of _________________ (the “Grant Date”), is delivered
by deltathree, Inc. (the “Company”) to
_______________ (the “Participant”).  Capitalized
terms used herein and not otherwise defined herein have the meaning given to
them in the Plan (as defined below).

     

    RECITALS

     

    WHEREAS,
the Company maintains the deltathree, Inc. 2009 Stock Incentive Plan (the “Plan”) for the
benefit of its and its Affiliates’ employees, directors, and
consultants;

     

    NOW,
THEREFORE, in consideration of the covenants and agreements contained herein,
the parties to this Agreement, intending to be legally bound, hereby agree as
follows:

     

    1.           Grant of Option; Incentive
Stock Option Status.  Subject to the terms and conditions set
forth in this Agreement and in the Plan, the Company hereby grants to the
Participant an option (the “Option”) to purchase
___________ shares of Stock at an exercise price of $_________ per share of
Stock, subject to adjustment as set forth in Sections 8.1 and 8.2 of the
Plan.  This Option is intended to qualify as an Incentive Stock Option
as defined in Section 422 of the Code.  However, notwithstanding such
designation, the Option will qualify as an Incentive Stock Option under the Code
only to the extent the $100,000 dollar limitation of Section 422(d) of the Code
(as such limitation may be amended from time to time) is not
exceeded.  The $100,000 limitation of Section 422(d) of the Code is
calculated based on the aggregate Market Value of the shares subject to options
designated as Incentive Stock Options which become exercisable for the first
time by the Participant during any calendar year (under all incentive plans of
the Company or any “parent corporation” or “subsidiary corporation” of the
Company (as such terms are defined in Section 424 of the Code)).  For
purposes of this calculation, Incentive Stock Options shall be taken into
account in the order in which they were granted, and the Market Value of the
shares subject to such options shall be determined as of the grant date of the
relevant option.

     

    2.           Exercisability of
Option.   Subject to the provisions of this Agreement, the
Option shall become exercisable on the following dates, if the Participant
continues to provide Service (as defined in the Plan) to the Company or its
Affiliates from the Grant Date through the applicable date:

     

    
      
        
          
            
              
                
                  	
                          Date

                        	 	
                          Shares
      for Which the Option is Exercisable

                        	 
	 
      	 	 	 
	
                          First
      anniversary of the Grant Date

                        	 	 	25	%
	 
      	 	 	 	 
	
                          Second
      anniversary of the Grant Date

                        	 	 	25	%
	 
      	 	 	 	 
	
                          Third
      anniversary of the Grant Date

                        	 	 	25	%
	 
      	 	 	 	 
	
                          Fourth
      anniversary of the Grant Date

                        	 	 	25	%

                

              

            

          

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
exercisability of the Option is cumulative, but shall not exceed 100% of the
shares of Stock subject to the Option.  If the foregoing schedule
would produce fractional shares of Stock, the number of shares of Stock for
which the Option becomes exercisable shall be rounded down to the nearest whole
share of Stock.

     

    3.            
Term of Option; Change
in Status of Incentive Option.

     

    (a)           The
Option shall have a term of ten (10) years from the Grant Date, and shall
terminate at the expiration of that period, unless it is terminated at an
earlier date pursuant to the provisions of this Agreement or the
Plan.

     

    (b)           The
Option shall automatically terminate upon the happening of the first of the
following events:

     

    (i)           If
the Participant’s Service terminates on account of death or Disability (as
defined in the Plan), the expiration of the one-year period following the date
of the Participant’s termination of Service on account of death or Disability;
provided, however, that if such Disability is not a “disability” as such term is
defined in Section 22(e)(3) of the Code, this Option shall cease to be treated
as an Incentive Stock Option and shall be treated as a Nonstatutory Option on
the day three (3) months and one (1) day following the date of the Participant’s
termination of Service on account of Disability.

     

    (ii)          If
the Participant’s Service terminates for any reason other than on account of
death, Disability, or termination for Cause (as defined in the Plan), the
expiration of the 90 day period following the date of the Participant’s
termination of Service for any reason other than on account of death,
Disability, or termination for Cause.

     

    (iii)         If
the Participant’s Service is terminated for Cause (unless the Committee
determines otherwise), the date on which the Participant’s Service is
terminated.

     

    Notwithstanding
the foregoing, in no event may the Option be exercised after the tenth
anniversary of the Grant Date.  Any portion of the Option that is not
exercisable at the time the Participant ceases to provide Service shall
immediately terminate as of such date.

     

    (c)           In
the event that the Participant’s status changes from employee of the Company or
an Affiliate to director or consultant of the Company or an Affiliate, this
Option shall cease to be treated as an Incentive Stock Option and shall be
treated as a Nonstatutory Option on the day three (3) months and one (1) day
following such change in status.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.            Exercise
Procedures.

     

    (a)           Subject
to the provisions of Sections 2 and 3 above, the Participant may exercise part
or all of the exercisable portion of the Option by delivering to the Company
written notice of intent to exercise in the manner provided in this Agreement,
specifying the number of shares of Stock as to which the Option is to be
exercised and the method of payment.  Payment of the exercise price
shall be made in accordance with procedures established by the Committee from
time to time based on the type of payment being made but, in any event, prior to
issuance of the shares of Stock.  The Participant shall pay the
exercise price (i) in cash, by check or cash equivalent; (ii) by tender to the
Company of shares of Stock owned by the Participant having a Market Value (as
defined in the Plan) equal to the exercise price of the shares of Stock to be
purchased; (iii) by payment through a broker in accordance with procedures
permitted by Regulation T of the Federal Reserve Board; or (iv) by any
combination thereof.  The Committee may impose from time to time such
limitations as it deems appropriate on the use of shares of Stock to exercise
the Option.

     

    (b)           The
obligation of the Company to deliver shares of Stock upon exercise of the Option
shall be subject to all applicable laws, rules, and regulations and such
approvals by governmental agencies as may be deemed appropriate by the
Committee, including such actions as Company counsel shall deem necessary or
appropriate to comply with relevant securities laws and
regulations.  The Company may require that the Participant (or other
person exercising the Option after the Participant’s death) represent that the
Participant is purchasing the shares of Stock for the Participant’s own account
and not with a view to or for sale in connection with any distribution of the
shares of Stock, or such other representations as the Committee deems
appropriate.  No portion of the Option may be exercised during a
period which the Committee designates in writing as a prohibited exercise
period.

     

    (c)           All
obligations of the Company under this Agreement shall be subject to the rights
of the Company as set forth in the Plan to withhold amounts required to be
withheld for any taxes, including without limitation, such other tax obligations
of the Participant incident to the receipt of Stock or the disqualifying
disposition of Stock received on exercise of an Incentive Stock
Option.

     

    5.           
Change of Control or
Other Transaction.  In the event of a Transaction (as defined
in the Plan), there will not be any acceleration of vesting or exercisability of
the Option unless otherwise determined by the Committee.  The
provisions of the Plan applicable to a Transaction or a Change of Control (each
as defined in the Plan) shall apply to the Option, and, in the event of a
Transaction or Change of Control, the Committee may take such actions as it
deems appropriate pursuant to the Plan.

     

    6.           
Restrictions on
Transfer and Exercise.  Except as otherwise provided in the
Plan, the Option shall not be transferable, and neither the Option nor any
interest therein may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution.  Only the Participant or its legal representatives may
exercise the Option during the Participant’s lifetime and, after the
Participant’s death, the Option shall be exercisable (subject to the limitations
specified in the Plan) solely by the guardian or legal representatives of the
Participant, or by the person who acquires the right to exercise the Option by
will or by the laws of descent and distribution, to the extent that the Option
is exercisable pursuant to this Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    7.           
Grant Subject to Plan
Provisions.  This Option grant is made pursuant to the Plan,
the terms of which are incorporated herein by reference, and in all respects
shall be interpreted in accordance with the Plan.  The grant and
exercise of the Option and this Agreement are subject to interpretations,
regulations and determinations concerning the Plan established from time to time
by the Committee in accordance with the provisions of the Plan, including, but
not limited to, provisions pertaining to (i) rights and obligations with respect
to withholding taxes, (ii) the registration, qualification or listing of the
shares of Stock, (iii) changes in capitalization of the Company, and (iv) other
requirements of applicable law.  The Committee shall have the
authority to interpret and construe the Option pursuant to the terms of the
Plan, and its decisions shall be conclusive as to any questions arising
hereunder.  By accepting this Option, the Participant agrees to be
bound by the terms of the Plan and this Agreement and that all decisions and
determinations of the Committee with respect to the Agreement shall be final and
binding on the Participant and the Participant’s beneficiaries.

     

    8.           
Restrictions on Sale
or Transfer of Shares.

     

    (a)           The
Participant agrees that he or she shall not sell, transfer, pledge, donate,
assign, mortgage, hypothecate or otherwise encumber the shares of Stock
underlying the Option unless the shares of Stock are registered under the
Securities Act of 1933, as amended (the “Securities Act”) and
the laws of the applicable state or other jurisdiction, or the Company is given
an opinion of counsel reasonably acceptable to the Company that such
registration is not required under the Securities Act and the laws of the
applicable state or other jurisdiction.  Any stock issued upon
exercise of the Option may bear one or more legends reflecting the foregoing
restrictions or other restrictions imposed by the Plan or this
Agreement.

     

    (b)           As
a condition to receive any shares of Stock upon the exercise of the Option, the
Participant agrees to be bound by the Company’s policies regarding the
limitations on the transfer of such shares, and understands that there may be
certain times during the year that the Participant will be prohibited from
selling, transferring, pledging, donating, assigning, mortgaging, hypothecating
or otherwise encumbering the shares.

     

    9.           
No Employment or Other
Rights.  The grant of this Option shall not confer upon the
Participant any right to be retained in the Service of the Company or any
Affiliate and shall not interfere in any way with the right of the Company or
the applicable Affiliate to terminate the Participant’s Service at any
time.  The right of the Company and any applicable Affiliate to
terminate at will the Participant’s Service at any time for any reason is
specifically reserved.

     

    10.           No Stockholder
Rights.  Neither the Participant, nor any person entitled to
exercise the Participant’s rights in the event of the Participant’s death, shall
have any of the rights and privileges of a stockholder with respect to the
shares of Stock subject to the Option, until certificates for shares of Stock
have been issued upon the exercise of the Option.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    11.           Assignment and
Transfers.  The rights and interests of the Participant under
this Agreement may not be sold, assigned, encumbered or otherwise transferred
except, in the event of the death of the Participant, by will or by the laws of
descent and distribution.  In the event of any attempt by the
Participant to alienate, assign, pledge, hypothecate, or otherwise dispose of
the Option or any right hereunder, except as provided for in this Agreement, or
in the event of the levy or any attachment, execution or similar process upon
the rights or interests hereby conferred, the Company may terminate the Option
by notice to the Participant, and the Option and all rights hereunder shall
thereupon become null and void.  The rights and protections of the
Company hereunder shall extend to any successors or assigns of the Company and
to any Affiliate.  This Agreement may be assigned by the Company
without the Participant’s consent.

     

    12.           Effect on Other
Benefits.  The value of shares of Stock received upon exercise
of the Option shall not be considered eligible earnings for purposes of any
other plans maintained by the Company or any other Affiliate, and such value
shall not be considered part of the Participant’s compensation for purposes of
determining or calculating other benefits that are based on compensation, such
as life insurance.

     

    13.           Applicable
Law.  The validity, construction, interpretation and effect of
this instrument shall be governed by and construed in accordance with the laws
of the State of Delaware, without giving effect to the conflicts of laws
provisions thereof.

     

    14.           Notice.  Any
notice to the Company provided for in this instrument shall be addressed to the
Company in care of the Board, Attn: General Counsel at the Company’s corporate
headquarters, and any notice to the Participant shall be addressed to such
Participant at the current address shown on the payroll records of the Company
or the applicable Affiliate, or to such other address as the Participant may
designate to the Company or the applicable Affiliate in writing.  Any
notice shall be delivered by hand, sent by facsimile or enclosed in a properly
sealed envelope addressed as stated above, registered and deposited, postage
prepaid, in a post office regularly maintained by the United States Postal
Service.

     

    15.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but both of which together shall constitute one and the same
instrument.

     

     [SIGNATURE PAGE
FOLLOWS]

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has caused its duly authorized officers to execute
and attest this Agreement, and the Participant has executed this Agreement,
effective as of the Grant Date.

    

    
      
        
          
            
              
                	
                        DELTATHREE,
      INC.

                      
	 
      
	
                        By:

                      	 
      
	
                        Name:

                      	 
      
	
                        Title:

                      	 
      

              

            

          

        

      

    

     

    I hereby
accept the Option described in this Agreement, and I agree to be bound by the
terms of the Plan and this Agreement. I hereby further agree that all of the
decisions and determinations of the Committee shall be final and
binding.

    

    
      
        
          
            
              	
                      Participant:

                    	 
      
	
                      Date:

                    	 
      

            

          

        

      

    

     

    
      
        
        

      

      
        6

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