Document:

Agreement between Registrant and Samco Financial Services, Inc. and NEXA Tech.

 Exhibit 10.9 
 NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[*]” ARE SUBJECT TO A CONFIDENTIAL TREATMENT REQUEST, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT HAVE BEEN FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION AS PART OF THIS COMPANY’S CONFIDENTIAL TREATMENT REQUEST. 
 MASTER AGREEMENT 
 This Master Agreement (this “Agreement”) is made as of the 27th day of January, 2006, by and between Samco Financial Services, Inc.
(“SFS”), NEXA Technologies, Inc. (“NEXA” and together with SFS, the “Penson Parties” and each of them, a “Penson Party”), and QuoteMedia, Inc. (“QM”). Each of SFS,
NEXA and QM may hereinafter be referred to individually as a “Party” and collectively as the “Parties.” References to the other, opposite, or opposing party or any similar such term, shall mean the Penson Parties on
the one hand and QM on the other hand. 
 RECITALS: 
 WHEREAS, Each of QM and NEXA currently provide data feeds and/or certain technology that the other desires to obtain; 
 WHEREAS, SFS desires to provide brokerage services to certain clients of QM; and 
 WHEREAS,
the Parties desire to define their relationship with respect to such technology and brokerage arrangements; 
 NOW, THEREFORE, in
consideration of the premises and mutual covenants contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto do mutually agree as follows. 
 AGREEMENT: 
 1. NEXA License. NEXA
hereby grants to QM a worldwide, non-exclusive license to each of the data feeds listed on Exhibit A attached hereto (the “NEXA Data”), for the applicable fees listed thereon, for incorporation into QM Applications and QM Dedicated
Line Feeds (as described in Exhibit “D” attached hereto), commencing on the date hereof and terminating on the five year anniversary of the date of this Agreement (the “Initial Term”), unless earlier terminated pursuant to
the terms of this Agreement. The data feeds listed on Exhibit A may be amended upon agreement of the Parties. Any amendments to Exhibit A shall be deemed to have been a part of the original and all terms and conditions of this Agreement shall apply
thereto. 
 2. Installation and Maintenance Costs. Except as provided for in Section 19(d) of this Agreement, QM shall be solely
responsible for any and all costs related to QM’s installation and maintenance related to the data lines necessary to access and transmit the NEXA Data, including, without limitation, the purchase of servers, installation fees, cross-connect
fees and maintenance fees associated therewith. QM shall be solely responsible for providing all hosting facilities; provided, however, that NEXA may from time to time provide hosting facilities for a limited period as space becomes available at a
rate to be determined by the Parties. QM shall be solely responsible for any 

 and all costs and expenses related to the purchase of [*] software to monitor any connections for the transmission
of the NEXA Data. NEXA agrees to install such software and any proprietary NEXA scripts at a designated QM location as reasonably requested by QM, subject to reasonable travel and other reimbursable expenses. NEXA agrees, at its sole cost and
expense, to obtain the routers located in the NEXA data center required to install all necessary [*] lines for the transmission of the NEXA Data. 
 3. QM Use of NEXA Data. QM may redistribute the NEXA Data, as incorporated into the QM Dedicated Line Feeds, to any third party who is not at such time, nor has been prior to such time, nor is currently a verifiable,
prospective customer of NEXA. Prior to any such distribution of the NEXA Data, QM must submit the name of the proposed customer to NEXA for confirmation that such party does not meet the criteria described in the immediately preceding sentence.
Within five (5) business days of NEXA’s receipt of such submission, NEXA shall either approve of such customer or provide to QM reasonably sufficient evidence of such customer’s affiliation with NEXA. Should NEXA provide such
evidence, QM agrees not to provide any such services to such customer without the prior written consent of NEXA. Should NEXA fail to provide QM a written response within such five (5) business day period, such lack of response shall be deemed
to be an approval of such customer. QM shall be vendor of record for any and all NEXA Data received, and in such capacity, agrees to comply with all applicable requirements of any governing exchange, SRO or other regulatory body. QM agrees to
provide all reasonable assistance requested by NEXA in connection with NEXA’s compliance with such requirements. 
 4. Additional Data
Feeds. Should QM intend to obtain any data feed not listed on Exhibit A, QM shall notify NEXA of such intention, after which time NEXA shall be given a reasonable opportunity to determine whether or not NEXA desires to obtain such data feed
for its own use. Should NEXA choose to obtain such data feed for its own use, such data feed shall be added to Exhibit A. Should NEXA choose not to obtain such data feed for its own use, QM would assume all cost and expense related to the addition
of such data feed. NEXA agrees to allocate resources to incorporate such data feed into the ticker plant, subject to the parties agreement upon a specified rate and time. 
 5. Service and Maintenance. NEXA agrees to provide a qualified employee to serve as a contact for any QM questions or issues related to the NEXA Data and to offer access to NEXA’s support personnel.
The minimum levels of service to be provided shall be as set forth in the Services Level Agreement attached hereto as Exhibit B, the terms of which are incorporated herein by reference. 
 6. Joint Marketing Efforts. Each Party agrees to use its reasonable commercial efforts to market the products and services provided by the opposite Party to the extent that such products and services are
not reasonably deemed by such Party to compete with any product or service offered by such Party from time to time. QM agrees to promote [*] under the name [*] or such other name as QM and SFS may determine from time to time. QM and
SFS shall mutually agree upon the content and design of any marketing materials utilized by QM for the purposes described hereunder. No changes to any website, brochures or other marketing materials printed, distributed or otherwise utilized by QM
in its brokerage marketing efforts described herein shall be made without the prior written consent of SFS. SFS acknowledges its sole responsibility for compliance with all applicable 
  

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 regulatory requirements to which it is subject in the preparation of all such marketing materials. Notwithstanding
anything contained in this Section 6, SFS shall have the sole discretion to edit any marketing materials or terminate all marketing efforts at any time and from time to time, including the name under which any products are marketed, should SFS
determine in its sole discretion that such edits or such termination are required by any governing exchange, SRO or other regulatory body. 
  

	7.	QM Products. 

 (a) At NEXA’s option, QM
agrees to license any of the QM Content Products listed on Exhibit D attached hereto to NEXA for incorporation into NEXA’s Meridian systems. Should NEXA choose to incorporate any QM Product into its Meridian system, QM shall be entitled to a
minimum monthly fee for the provision of such products to NEXA’s customers in the amounts listed for each month, commencing on [*] or on the first day of the month immediately following implementation of the QM Content Products into
NEXA’s Meridian, whichever is sooner, as set forth below: 
  

							
	Month 1:	  	[*]	  	Month 2:	  	[*]
	Month 3:	  	[*]	  	Month 4 and beyond:	  	[*]

 (b) Should NEXA choose to incorporate the QM Content Products into its Meridian system for
distribution to any present or future clients, [*] as described in Exhibit “D”. Pricing levels for any additional QM Content Products offered, and [*], shall be agreed upon by the parties at the time of such distribution.

 (c) At NEXA’s option, NEXA may incorporate Quotestream into its Meridian systems. For each NEXA client that purchases a Meridian
system that incorporates Quotestream, [*]. 
 (d) At NEXA’s option, NEXA and QM may jointly design a package of services into
various NEXA offerings, the pricing of which shall be determined by the parties at such time as each project is offered to NEXA’s customers. 
 For each of subsections (a), (b), (c) and (d) above, in addition to any compensation due to QM set forth therein, QM shall be entitled to receive [*] of all [*] by NEXA from the sale of [*] and NEXA shall
retain [*] of such [*]. Fees received pursuant to subsections (b), (c) and (d) above shall count towards the minimums in subsection (a) above. All such payments to be made pursuant to this Section 7 shall be payable
monthly in arrears and shall be sent by NEXA to QM no later than fifteen (15) days after the end of each applicable month. 
 8. QM
Technology. Upon such terms as may be agreed upon by the Parties, QM and NEXA may jointly develop an application whereby QM customers shall have the capacity to place trades from such customer’s desktop, handheld or other devices.

 9. NEXA Technology. For the use of those qualified customers of QM receiving SFS brokerage services as set forth in
Section 11, per the fee schedule set forth below, NEXA agrees to [*] in a manner to be determined by NEXA and QM. 
  

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	Minimum Monthly Fee:	  	During the term of the licensing of the NEXA Data, [*]. Thereafter, a [*] shall apply.
		
	Monthly Fees:	  	
		
	        [*]:	  	[*]
		
	        [*]:	  	[*]per terminal per month
		
	        [*]:	  	[*]per terminal per month
		
	[*]Installation Fee:	  	[*] (includes private label), which shall [*]; provided, however, that [*].
		
	Order Execution Fee:	  	[*] per executed order; provided, however, that such order execution fee shall be waived [*].

 All [*] shall be passed through to QM. In addition, QM shall be responsible for all costs
and fees imposed by any governing exchange, ECN, SRO or other regulatory body. 
  

	10.	Intellectual Property Licenses. 

 (a) QM
hereby grants SFS a non-exclusive license to use QM’s trademarks and tradenames as are provided to SFS from time to time by QM, and may be included on Exhibit C (collectively the “QM Marks and Names”) that are useful for the
provision of electronic brokerage services by SFS to certain clients of QM. SFS will use the QM Marks and Names only in connection with the provision of such services pursuant to this Agreement. 
 (b) SFS hereby grants QM a non-exclusive license to use SFS’ trademarks and tradenames as are provided to QM from time to time by SFS, and may be
included on Exhibit C (collectively the “SFS Marks and Names”) that are useful for the provision of electronic brokerage services by SFS to certain clients of QM; provided, however, that each such use shall require the prior,
written consent of SFS. QM will use the SFS Marks and Names only in connection with the provision of such services pursuant to this Agreement. 
 11.
SFS Brokerage Services. SFS agrees to provide certain US brokerage services to qualified clients of QM, each at the discretion of SFS, and agrees to use its commercially reasonable efforts to provide certain [*] to qualified
clients of QM, each at the discretion of SFS. SFS shall be able to terminate such services to any individual client at any time at SFS’ sole discretion. SFS agrees to provide reasonable notice of any material changes to QM if at any time SFS
shall terminate the offering of such services as to any particular client, it being acknowledged that SFS may not be able to provide prior notice to QM for such termination decisions. Either Party may cancel the terms of this Agreement relating to
[*]. Notwithstanding, SFS may, in its sole discretion, reject any account or any order at any time. In addition, SFS agrees to provide web-based electronic brokerage interfaces for QM to incorporate into its systems. QM agrees to develop all
technology necessary to complete such integration at its sole cost and expense. For each order submitted by a QM customer that is not otherwise a customer of SFS or any affiliate of SFS, SFS agrees to [*] for each order submitted, such [*]
to be determined on a month-to-month basis by QM and SFS and [*] between QM and NEXA as such parties may agree. 
  

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 12. [*] Status. Should at any time during the term of this Agreement QM or any wholly-owned subsidiary of
QM become a duly and validly [*] and a duly qualified [*] of which it is required to be a [*], and such entity has entered into an [*] arrangement with Penson Financial Services, Inc., according to the terms and
conditions to be determined by QM and Penson Financial Services, Inc., SFS agrees to transfer any and all [*] to Penson Financial Services, Inc. that were not otherwise [*] at the time as such [*] originated from QM (as set
forth in Section 11). Should this Agreement be terminated prior to such time as QM and Penson Financial Services, Inc. shall have entered into the [*] arrangement described in this Section 12, unless due to the breach of this
Agreement by QM, SFS agrees to transfer any [*] described herein to the [*] of QM’s choosing in a reasonably expeditious manner. Notwithstanding anything in this Section 12 to the contrary, no transfer of [*] shall
take place (i) that conflicts with any applicable regulatory requirements then in place; or (ii) without the consent of the individual [*] to be transferred. Any costs associated with the transfer of [*] described in this
Section 12 shall be the exclusive liability of QM; provided, however, that any such costs to be incurred by QM must be agreed to in advance of any transfer. 
  

	13.	QM Representations and Warranties. QM hereby represents and warrants as follows: 

 (a) QM is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, with full power and
authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports to own or use, and to perform all its obligations under this Agreement. 
 (b) This Agreement constitutes the legal, valid and binding obligation of QM, enforceable against it in accordance with its terms. 
 (c) QM has the power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement. 
 14. Penson Parties’ Representations and Warranties. Each of the Penson Parties hereby represents and warrants as follows: 
 (a) Each Penson Party is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, with
full corporate power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports to own or use, and to perform all its obligations under this Agreement. 
 (b) This Agreement constitutes the legal, valid and binding obligation of each Penson Party, enforceable against it in accordance with its terms.

 (c) Each Penson Party has the power and authority to execute and deliver this Agreement and to perform its obligations under this
Agreement. 
  

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 15. Mutual Covenant as to Marketing Efforts. Each Party hereby covenants and agrees that their respective
marketing efforts provided for herein shall at all times comply with all applicable laws, rules and regulations and will not contain any material which is obscene, fraudulent, harassing, libelous, infringing of (or a misappropriation or other
violation of) third party intellectual property rights or otherwise illegal, and otherwise agrees that such efforts shall not adversely affect the reputation or credibility of the opposite party. 
 16. Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER BASED ON BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, WHETHER OR NOT THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 
  

	17.	Indemnification. 

 (a) QM will indemnify and
hold harmless the Penson Parties and their respective affiliates and their respective officers, directors, employees and agents against any and all damages, judgments, amounts paid in settlement, fines, court costs, pre- and post- judgment interest,
costs of appeal or other bond, claims, deficiencies, losses, and all reasonable and necessary expenses (including interest, penalties, and reasonable and necessary attorneys’ and accountants’ fees and expenses) that may result from any
allegations that any products or services provided by QM, including without limitation the QM Marks and Names and all modifications thereto, constitute an infringement, misappropriation or misuse of any patent, copyright, trademark or trade name or
trade secret or other intellectual property right; provided that either Penson Party: (a) promptly notifies QM in writing of any covered claim(s); (b) tenders to QM and its insurer(s) the right to defend or settle the claim(s) except that
QM may not enter any settlement without the prior written approval of each Penson Party unless the only obligation of QM under the settlement is to pay a cash amount that is fully paid by QM; and (c) provides reasonable assistance to QM in
defending and settling the claim(s) at QM’s sole expense. 
 (b) SFS will indemnify and hold harmless QM and its affiliates and their
respective officers, directors, employees and agents against any and all damages, judgments, amounts paid in settlement, fines, court costs, pre- and post- judgment interest, costs of appeal or other bond, claims, deficiencies, losses, and all
reasonable and necessary expenses (including interest, penalties, and reasonable and necessary attorneys’ and accountants’ fees and expenses) that may result from any allegations that any products or services provided by any SFS, including
without limitation the SFS Marks and Names and all modifications thereto, constitute an infringement, misappropriation or misuse of any patent, copyright, trademark or trade name or trade secret or other intellectual property right; provided that
QM: (a) promptly notifies SFS in writing of any covered claim(s); (b) tenders to SFS and its insurer(s) the right to defend or settle the claim(s) except that SFS may not enter any settlement without the prior written approval of QM unless
the only obligation of SFS under the settlement is to pay a cash amount that is fully paid by SFS; and (c) provides reasonable assistance to SFS in defending and settling the claim(s) at SFS’ sole expense. 
  

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 (c) NEXA will indemnify and hold harmless QM and its affiliates and their respective officers, directors,
employees and agents against any and all damages, judgments, amounts paid in settlement, fines, court costs, pre- and post- judgment interest, costs of appeal or other bond, claims, deficiencies, losses, and all reasonable and necessary expenses
(including interest, penalties, and reasonable and necessary attorneys’ and accountants’ fees and expenses) that may result from any allegations that any products or services provided by NEXA constitute an infringement, misappropriation or
misuse of any patent, copyright, trademark or trade name or trade secret or other intellectual property right; provided that QM: (a) promptly notifies NEXA in writing of any covered claim(s); (b) tenders to NEXA and its insurer(s) the
right to defend or settle the claim(s) except that NEXA may not enter any settlement without the prior written approval of QM unless the only obligation of NEXA under the settlement is to pay a cash amount that is fully paid by NEXA; and
(c) provides reasonable assistance to NEXA in defending and settling the claim(s) at NEXA’s sole expense. 
 18. Confidential
Information. All Confidential Information (hereafter defined) relating to either Party shall be held in confidence by the other Party to the same extent and in at least the same manner as such Party protects its own confidential or
proprietary information. Neither Party shall disclose, publish, release, transfer or otherwise make available Confidential Information of the other Party in any form to, or for the use or benefit of, any person or entity without the other
Party’s consent. Each Party shall, however, be permitted to disclose relevant aspects of the other Party’s Confidential Information to its officers, agents, subcontractors and employees to the extent that such disclosure is reasonably
necessary for the performance of its duties and obligations under this Agreement and such disclosure is not prohibited by relevant privacy regulations governing the party’s respective local jurisdictions; provided, however, that such party
shall take all reasonable measures to ensure that Confidential Information of the other party is not disclosed or duplicated in contravention of the provisions of this Agreement by such officers, agents, subcontractors and employees. The obligations
contained in this section shall not restrict any disclosure by either Party pursuant to any applicable law, or by order of any court or government agency or requests of a regulator, whether or not having the force of law (provided that the
disclosing Party shall give prompt notice and opportunity to oppose the order to the non-disclosing Party of such order if not debarred under applicable law) and shall not apply with respect to information which (1) is developed by the other
Party without violating, or reference to, the disclosing Party’s proprietary rights, (2) is or becomes publicly known (other than through unauthorized disclosure), (3) is disclosed by the owner of such information to a third party
free of any obligation of confidentiality, (4) is already known by such Party without an obligation of confidentiality other than pursuant to this Agreement or any confidentiality agreements entered into before the effective date between the
Parties, or (5) is rightfully received by a Party free of any obligation of confidentiality. If the applicable law now or hereafter in effect imposes a higher standard of confidentiality to the Confidential Information, such standard shall
prevail over the provisions of this section. For purposes of this Agreement, “Confidential Information” of a Party shall mean all data and information submitted to the other Party or obtained by the other Party in connection with
the services, including information relating to a Party’s customers, technology, operations, facilities, consumer markets, products, capacities, systems, procedures, security practices, research, development, business affairs, ideas, concepts,
innovations, inventions, designs, business methodologies, improvements, trade secrets, copyrightable subject matter and other proprietary information. This Section shall survive the termination of this Agreement without limitation. 
  

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	19.	Term; Termination. 

 (a) This Agreement shall
become effective on the date set forth in the first paragraph of this Agreement and shall continue in full force and effect for the Initial Term unless earlier terminated pursuant to the terms hereof. This Agreement may be terminated by (i) QM,
in case of a material breach of this Agreement by either (or both) of the Penson Parties, and (ii) either of the Penson Parties in case of a material breach of this Agreement by QM; provided however, that the terminating Party has prior to the
termination notice given written notice to the other Party specifying the alleged breach (“Complaint”), and further provided that such breach has not been remedied by the breaching Party within a period of 30 days after the receipt of the
Complaint. In the event the breach is not cured at the expiration of the 30 day cure period, a ten (10) day written termination notice will be provided by the terminating Party. 
 (b) This Agreement will automatically renew for additional one (1) year terms unless a Party provides the other Parties written notice of its
intention not to renew this Agreement no less than one year prior to expiration; provided, however, that at any time after the expiration of the Initial Term, any Party may terminate this Agreement upon 1 years’ notice to the other Parties.

 (c) Should QM determine not to renew this Agreement, or terminate this Agreement following the expiration of the Initial Term, other than
for an uncured breach of this Agreement by either (or both) of the Penson Parties, QM agrees to provide a notice of one year, during which notice period QM will continue to pay the fees listed on Exhibit A per the schedule listed thereon.

 (d) Should NEXA determine not to renew this Agreement, or terminate this Agreement following the expiration of the Initial Term, other than
for an uncured breach of this Agreement by QM, NEXA agrees to provide a notice of one year. During such notice period, NEXA agrees to [*] with the licensing of the [*]. In addition, should NEXA determine not to extend the license of
the NEXA Data for at least one calendar year after the expiration of the Initial Term, NEXA agrees to [*] by QM pursuant to this Agreement, as [*], and to reimburse QM, up to a maximum of [*], for actual costs and expenses
incurred by QM in moving its [*] lines to an alternate data provider. The damages listed in this Section 19(c) shall be the sole remedy available to QM for any early termination of this Agreement by the Penson Parties. 
 (e) Notwithstanding anything to the contrary in this Section 19, none of the Parties may terminate this Agreement, other than for an uncured breach,
within the Initial Term except by mutual agreement of all of the Parties. This provision is subject to QM’s and/or SFS’s right to terminate the terms of this Agreement relating to the provision of brokerage services set out in
Section 11 herein. 
  

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 20. Effect of Termination. Each Party will pay all amounts owing to the other Party within thirty
(30) days of the termination or expiration of this Agreement. The provisions of Sections 13, 14, and 16, 17, 18 and 20 through 27 shall survive the termination of this Agreement. Upon the termination of expiration of this Agreement, any and all
licenses granted by any Party to the opposite Party shall be immediately terminated, all products bearing the marks of the opposite Party shall be immediately returned or destroyed, and any and all marketing efforts related to the opposite Party, or
any other use of the opposite Party’s marks, shall immediately cease and desist. Upon mutual agreement of the Parties, the Parties may continue to service mutual clients after termination or expiration of this Agreement under an agreed-upon
revenue sharing structure. 
 21. No Relationship. This Agreement does not create any agency, partnership, joint venture or similar arrangement
by or among the Parties hereto. 
 22. Governing Laws; Venue. THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED
HEREBY WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS (EXCLUSIVE OF CONFLICTS OF LAW PRINCIPLES) AND WILL, TO THE MAXIMUM EXTENT PRACTICABLE, BE DEEMED TO CALL FOR PERFORMANCE IN DALLAS COUNTY, TEXAS. COURTS
WITHIN THE STATE OF TEXAS WILL HAVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY. THE
PARTIES CONSENT TO AND AGREE TO SUBMIT TO THE JURISDICTION OF SUCH COURTS. VENUE IN ANY SUCH DISPUTE, WHETHER IN FEDERAL OR STATE COURT, WILL BE LAID IN DALLAS COUNTY, TEXAS. EACH OF THE PARTIES HEREBY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUCH
DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (a) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (b) SUCH PARTY AND/OR SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS
ISSUED BY SUCH COURTS OR (c) ANY LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM. 
 23. Notices. All notices,
demands, requests or other communications that may be or are required to be given, served or sent by either Party to the other Party pursuant to this Agreement will be in writing and will be mailed by first-class, registered or certified mail,
return receipt requested, postage prepaid, or transmitted by hand delivery, telegram or verifiable overnight courier addressed as 
 follows: 
  

					
	            (a)	  	If to NEXA:	    	NEXA Technologies, Inc.
		  		    	8 Pasteur, Suite 100
		  		    	Irvine, CA 92618
		  		    	Attn: President
		  		    	Facsimile Transmission Number: (949) 885-2194
		  		    	Attn: President

  

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		  	With a copy to:	    	Penson Worldwide, Inc.
		  		    	1700 Pacific Avenue, Suite 1400
		  		    	Dallas, Texas 75201
		  		    	Facsimile Transmission Number: (214) 765-1140
		  		    	Attn: General Counsel
			
	            (b)	  	If to SFS	    	SAMCO Financial Services, Inc.
		  		    	1700 Pacific Avenue, Suite 1400
		  		    	Dallas, Texas 75201
		  		    	Facsimile Transmission Number: (214) 765-1140
		  		    	Attn: Chairman
			
		  	With a copy to:	    	Penson Worldwide, Inc.
		  		    	1700 Pacific Avenue, Suite 1400
		  		    	Dallas, Texas 75201
		  		    	Facsimile Transmission Number (214) 765-1140
		  		    	Attn: General Counsel
			
	            (c)	  	If to QM:	    	QuoteMedia, Inc.
		  		    	17100 Shea Blvd
		  		    	Suite 230
		  		    	Fountain Hills, Arizona 85268
		  		    	Facsimile Transmission Number: (480) 905-7207
		  		    	Attn: President

 Either Party may designate by written notice a new address to which any notice, demand, request or communication
may thereafter be given, served or sent. Each notice, demand, request or communication that is mailed, delivered or transmitted in the manner described above will be deemed sufficiently given, served, sent and received for all purposes at such time
as it is delivered to the addressee, or delivery is refused by the addressee, with the return receipt, the delivery receipt, or the affidavit of messenger being deemed conclusive evidence of such delivery or at such time as delivery is refused by
the addressee upon presentation. 
 24. Gender. Words of any gender used in this Agreement will be held and construed to include any other
gender, and words in the singular number will be held to include the plural, unless the context otherwise requires. 
 25. Entire Agreement.
This Agreement represents the Parties’ entire agreement with respect to the subject matter of this Agreement and supersedes and replaces any prior agreement or understanding with respect to that subject matter. This Agreement may not be amended
or supplemented except pursuant to a written instrument specifically referencing this Agreement signed by the Parties. 
  

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 26. Counterparts. This Agreement may be executed in multiple counterparts, each of which will be deemed to
be an original and all of which will be deemed to be a single agreement. This Agreement will be considered fully executed when all Parties have executed an identical counterpart, notwithstanding that all signatures may not appear on the same
counterpart. 
 27. Headings. Section headings and captions have been inserted for convenience only and do not in any way limit the provisions
set out in the various sections hereof. 
 28. Severability. If any of the provisions of this Agreement are determined to be invalid or
unenforceable, such invalidity or unenforceability will not invalidate or render unenforceable the remainder of this Agreement, but rather the entire Agreement will be construed as if not containing the particular invalid or unenforceable provision
or provisions, and the rights and obligations of the Parties will be construed and enforced accordingly. The Parties acknowledge that if any provision of this Agreement is determined to be invalid or unenforceable, it is their desire and intention
that such provision be reformed and construed in such manner that it will, to the maximum extent practicable, be deemed to be valid and enforceable. 
 29.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns, if any. 
 30. Assignment. Neither this Agreement nor any rights or obligations under this Agreement may be assigned or delegated without the written consent of the other Party, however, the Penson Parties may
assign this Agreement in its entirety to any affiliate of the Penson Parties, so long as each of the Penson Parties shall remain liable for any duties and obligations to be performed, and amounts to be paid, hereunder. Further, any of the Parties
may assign this Agreement in its entirety, without the consent of the other Parties, to any successor to such party by way of merger, acquisition, divestiture, reorganization or other corporate transaction, provided however that the Penson Parties,
or any of them, may object to an assignment by QM to a prospective assignee by providing QM reasonable grounds for such objection, in which event QM may not assign this Agreement to that assignee. Should QM provide to the objecting party reasonable
assurances to assuage any such concerns, as determined by the objecting party (which may or may not include: a 3rd party guarantee; a letter of credit; or several months advance payment; depending on the circumstances), then the objecting Penson
Party agrees to waive any such objection. Any attempted assignment in violation of this Section 30 will be void. 
 31. No Waiver. The
Parties understand and agree that no failure or delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder. 
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 IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of date first above
written. 
  

							
	NEXA Technologies, Inc.	 	QuoteMedia, Inc.
				
	By:	 	__________________________________________	 	By:	 	  

	Name:	 	__________________________________________	 	Name:	 	  

	Title:	 	__________________________________________	 	 Title:
	 	  

  

			
	SAMCO Financial Services, Inc.
		
	By:	 	__________________________________________
	Name:	 	__________________________________________
	Title:	 	__________________________________________

  

 12Form of Stock Option Agreement

 Exhibit 10.4 
 RAE SYSTEMS INC. 
 STOCK OPTION AGREEMENT 
 RAE Systems Inc. has granted to the individual (the “Optionee”) named in the Notice of Grant of Stock Option
(the “Notice”) to which this Stock Option Agreement (the “Option Agreement”) is attached an option (the “Option”) to purchase certain
shares of Stock upon the terms and conditions set forth in the Notice and this Option Agreement. The Option has been granted pursuant to and shall in all respects be subject to the terms and conditions of the RAE Systems Inc. 2002 Stock Option Plan
(the “Plan”), as amended to the Date of Option Grant, the provisions of which are incorporated herein by reference. By signing the Notice, the Optionee: (a) represents that the Optionee has received copies
of, and has read and is familiar with the terms and conditions of, the Notice, the Plan, this Option Agreement, and a prospectus for the Plan in the form most recently registered with the Securities an Exchange Commission (the “Plan
Prospectus”) (b) accepts the Option subject to all of the terms and conditions of the Notice, the Plan and this Option Agreement, and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Board
upon any questions arising under the Notice, the Plan or this Option Agreement. 
 1. DEFINITIONS AND
CONSTRUCTION. 
 1.1 Definitions. Unless otherwise defined herein,
capitalized terms shall have the meanings assigned to such terms in the Notice or the Plan. 
 1.2 Construction.
Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Option Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the
plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
 2. TAX CONSEQUENCES. 
 2.1 Tax Status of
Option. This Option is intended to have the tax status designated in the Notice. 
 (a) Incentive Stock
Option. If the Notice so designates, this Option is intended to be an Incentive Stock Option within the meaning of Section 422(b) of the Code, but the Company does not represent or warrant that this Option qualifies as such. The
Optionee should consult with the Optionee’s own tax advisor regarding the tax effects of this Option and the requirements necessary to obtain favorable income tax treatment under Section 422 of the Code, including, but not limited to,
holding period requirements. (NOTE TO OPTIONEE: If the Option is exercised more than three (3) months after the date on which you cease to be an Employee (other than by reason of your death or permanent and total disability as defined in
Section 22(e)(3) of the Code), the Option will be treated as a Nonstatutory Stock Option and not as an Incentive Stock Option to the extent required by Section 422 of the Code.) 
  

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 (b) Nonstatutory Stock Option. If the Notice so designates, this Option is intended to be
a Nonstatutory Stock Option and shall not be treated as an Incentive Stock Option within the meaning of Section 422(b) of the Code. 
 2.2 ISO Fair Market Value Limitation. If the Notice designates this Option as an Incentive Stock Option, then to the extent that the Option (together with all Incentive Stock Options granted to the Optionee under all stock
option plans of the Participating Company Group, including the Plan) becomes exercisable for the first time during any calendar year for shares having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of such
options which exceeds such amount will be treated as Nonstatutory Stock Options. For purposes of this Section 2.2, options designated as Incentive Stock Options are taken into account in the order in which they were granted, and the Fair Market
Value of stock is determined as of the time the option with respect to such stock is granted. If the Code is amended to provide for a different limitation from that set forth in this Section 2.2, such different limitation shall be deemed
incorporated herein effective as of the date required or permitted by such amendment to the Code. If the Option is treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason of the limitation set forth in this
Section 2.2, the Optionee may designate which portion of such Option the Optionee is exercising. In the absence of such designation, the Optionee shall be deemed to have exercised the Incentive Stock Option portion of the Option first. Separate
certificates representing each such portion shall be issued upon the exercise of the Option. (NOTE TO OPTIONEE: If the aggregate Exercise Price of the Option (that is, the Exercise Price multiplied by the Number of Option Shares) plus the aggregate
exercise price of any other Incentive Stock Options you hold (whether granted pursuant to the Plan or any other stock option plan of the Participating Company Group) is greater than $100,000, you should contact the Chief Financial Officer of the
Company to ascertain whether the entire Option qualifies as an Incentive Stock Option.) 
 3.
ADMINISTRATION. 
 All questions of interpretation concerning this Option Agreement
shall be determined by the Board. All determinations by the Board shall be final and binding upon all persons having an interest in the Option. Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right,
obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, or election. 
 4. EXERCISE OF THE OPTION. 
 4.1 Right to Exercise. Except as otherwise provided herein, the Option shall be exercisable on and after the Initial Vesting Date and
prior to the termination of the Option (as provided in Section 6) in an amount not to exceed the number of Vested Shares less the number of shares previously acquired upon exercise of the Option. In no event shall the Option be exercisable for
more shares than the Number of Option Shares. 
 4.2 Method of Exercise. Exercise of the Option shall be by written
notice to the Company which must state the election to exercise the Option, the number of whole shares of Stock for which the Option is being exercised and such other representations and agreements as 

  

 2 

 
to the Optionee’s investment intent with respect to such shares as may be required pursuant to the provisions of this Option Agreement. The written
notice must be signed by the Optionee and must be delivered in person, by certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such other means as the Company may permit, to the Chief Financial Officer
of the Company, or other authorized representative of the Participating Company Group, prior to the termination of the Option as set forth in Section 6, accompanied by full payment of the aggregate Exercise Price for the number of shares of
Stock being purchased. The Option shall be deemed to be exercised upon receipt by the Company of such written notice and the aggregate Exercise Price. 
 4.3 Payment of Exercise Price. 
 (a) Forms of Consideration Authorized. Except
as otherwise provided below, payment of the aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised shall be made (i) in cash, by check, or cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of whole shares of Stock owned by the Optionee having a Fair Market Value not less than the aggregate Exercise Price, (iii) by means of a Cashless Exercise, as defined in Section 4.3(b), or (iv) by any
combination of the foregoing. 
 (b) Limitations on Forms of Consideration. 
 (i) Tender of Stock. Notwithstanding the foregoing, the Option may not be exercised by tender to the Company, or attestation to the ownership, of
shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock. If required by the Company, the Option may not be
exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Optionee for more than six (6) months or such other period, if any, required by the Company and not used
for another option exercise by attestation during such period) or were not acquired, directly or indirectly, from the Company. 
 (ii)
Cashless Exercise. A “Cashless Exercise” means the delivery of a properly executed notice together with irrevocable instructions to a broker in a form acceptable to the Company providing for the
assignment to the Company of the proceeds of a sale or loan with respect to some or all of the shares of Stock acquired upon the exercise of the Option pursuant to a program or procedure approved by the Company (including, without limitation,
through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System). The Company reserves, at any and all times, the right, in the Company’s sole and
absolute discretion, to decline to approve or terminate any such program or procedure. 
 4.4 Tax Withholding. At the
time the Option is exercised, in whole or in part, or at any time thereafter as requested by the Company, the Optionee hereby authorizes withholding from payroll and any other amounts payable to the Optionee, and otherwise agrees to make adequate
provision for (including by means of a Cashless Exercise to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax 

  

 3 

 
withholding obligations of the Participating Company Group, if any, which arise in connection with the Option, including, without limitation, obligations
arising upon (i) the exercise, in whole or in part, of the Option, (ii) the transfer, in whole or in part, of any shares acquired upon exercise of the Option, (iii) the operation of any law or regulation providing for the imputation
of interest, or (iv) the lapsing of any restriction with respect to any shares acquired upon exercise of the Option. The Option is not exercisable unless the tax withholding obligations of the Participating Company Group are satisfied.
Accordingly, the Company shall have no obligation to deliver shares of Stock until the tax withholding obligations of the Participating Company Group have been satisfied by the Optionee. 
 4.5 Certificate Registration. Except in the event the Exercise Price is paid by means of a Cashless Exercise, the certificate for
the shares as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, in the names of the heirs of the Optionee. 
 4.6 Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all
applicable requirements of federal, state or foreign law with respect to such securities. The Option may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign
securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, the Option may not be exercised unless (i) a registration statement under the
Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Option may
be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY,
THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel
to be necessary to the lawful issuance and sale of any shares subject to the Option shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained.
As a condition to the exercise of the Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or
warranty with respect thereto as may be requested by the Company. 
 4.7 Fractional Shares. The Company shall not be
required to issue fractional shares upon the exercise of the Option. 
 5. NONTRANSFERABILITY OF
THE OPTION. 
 The Option may be exercised during the lifetime of the
Optionee only by the Optionee or the Optionee’s guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution. Following the death of the Optionee, the Option, to
the extent provided in Section 7, may be exercised by the Optionee’s legal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution.

  

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 6. TERMINATION OF THE
OPTION. 
 The Option shall terminate and may no longer be exercised after the first to
occur of (a) the Option Expiration Date, (b) the last date for exercising the Option following termination of the Optionee’s Service as described in Section 7, or (c) a Change in Control to the extent provided in
Section 8. 
 7. EFFECT OF TERMINATION OF
SERVICE. 
 7.1 Option Exercisability. 
 (a) Disability. If the Optionee’s Service terminates because of the Disability of the Optionee, the Option, to the extent
unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or legal representative) at any time prior to the expiration of twelve (12) months after
the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
 (b)
Death. If the Optionee’s Service terminates because of the death of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the
Optionee’s legal representative or other person who acquired the right to exercise the Option by reason of the Optionee’s death at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s
Service terminated, but in any event no later than the Option Expiration Date. The Optionee’s Service shall be deemed to have terminated on account of death if the Optionee dies within three (3) months after the Optionee’s termination
of Service. 
 (c) Other Termination of Service. If the Optionee’s Service terminates for any reason, except
Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s Service terminated, may be exercised by the Optionee at any time prior to the expiration of three (3) months
after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
 7.2
Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of the Option within the applicable time periods set forth in Section 7.1 is prevented by the provisions of Section 4.6, the Option
shall remain exercisable until three (3) months after the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later than the Option Expiration Date. 
 7.3 Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing, if a sale within the applicable time periods set forth in
Section 7.1 of shares acquired upon the exercise of the Option would subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth
(10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the Optionee’s termination of Service, or (iii) the
Option Expiration Date. 
  

 5 

 8. CHANGE IN
CONTROL. 
 8.1 Definitions. 
 (a) An “Ownership Change Event” shall be deemed to have occurred if any of the following occurs with respect to the Company:
(i) the direct or indirect sale or exchange in a single or series of related transactions by the shareholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which
the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv) a liquidation or dissolution of the Company. 
 (b) A “Change in Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, a
“Transaction”) wherein the shareholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the
Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the Company or, in the case of a
Transaction described in Section 8.1(a)(iii), the corporation or other business entity to which the assets of the Company were transferred (the “Transferee”), as the case may be. For purposes of the preceding sentence,
indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company or the Transferee, as the case may be, either
directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or exchanges of the voting securities of the Company or multiple Ownership Change Events are
related, and its determination shall be final, binding and conclusive. 
 8.2 Effect of Change in Control on Option. In
the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiring Corporation”), may, without the
consent of the Optionee, either assume the Company’s rights and obligations under the Option or substitute for the Option a substantially equivalent option for the Acquiring Corporation’s stock. The Option shall terminate and cease to be
outstanding effective as of the date of the Change in Control to the extent that the Option is neither assumed or substituted for by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in
Control. Notwithstanding the foregoing, shares acquired upon exercise of the Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to all
applicable provisions of the Option Agreement except as otherwise provided herein. Furthermore, notwithstanding the foregoing, if the corporation the stock of which is subject to the Option immediately prior to an Ownership Change Event described in
Section 8.1(a)(i) constituting a Change in Control is the surviving or continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total combined voting power of its voting stock is held by
another 
  

 6 

 corporation or by other corporations that are members of an affiliated group within the meaning of Section 1504(a)
of the Code without regard to the provisions of Section 1504(b) of the Code, the Option shall not terminate unless the Board otherwise provides in its discretion. For the purposes of this Section 8.2, the Option shall be considered assumed
if, for every share of Stock subject thereto immediately prior to the Change in Control, the Optionee has the right, following the Change in Control, to acquire in accordance with the terms and conditions of the assumed Option the consideration
(whether stock, cash or other securities or property) received in the Change in Control transaction by holders of shares of Stock for each share held immediately prior to such transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding shares of Stock); provided, however, that if such consideration received in the Change in Control transaction was not solely common stock of the Acquiring Corporation, the
Board may, with the consent of the Acquiring Corporation, provide for the consideration to be acquired to be solely common stock of the Acquiring Corporation equal in Fair Market Value to the per share consideration received by holders of Stock in
the Change in Control transaction. 
 9. ADJUSTMENTS FOR CHANGES IN
CAPITAL STRUCTURE. 
 Subject to any required action by the stockholders
of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock
split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the
Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments shall be made in the number, Exercise Price and class of shares
subject to the Option, in order to prevent dilution or enlargement of the Optionee’s rights under the Option. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without
receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section 9 shall be rounded down to the nearest whole number, and in no event may the Exercise Price of the Option be decreased to
an amount less than the par value, if any, of the stock subject to the Option. Such adjustments shall be determined by the Board, and its determination shall be final, binding and conclusive. 
 10. RIGHTS AS A SHAREHOLDER, EMPLOYEE OR
CONSULTANT. 
 The Optionee shall have no rights as a shareholder with respect to any
shares covered by the Option until the date of the issuance of a certificate for the shares for which the Option has been exercised (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 9. If the Optionee is an Employee, the Optionee
understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Optionee, the Optionee’s employment is “at will” and is for no specified term. Nothing
in this Option Agreement shall confer upon the Optionee any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the Optionee’s Service as an Employee
or Consultant, as the case may be, at any time. 
  

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 11. NOTICE OF SALES UPON
DISQUALIFYING DISPOSITION. 
 The Optionee shall dispose of the shares
acquired pursuant to the Option only in accordance with the provisions of this Option Agreement. In addition, if the Notice designates this Option as an Incentive Stock Option, the Optionee shall (a) promptly notify the Chief Financial
Officer of the Company if the Optionee disposes of any of the shares acquired pursuant to the Option within one (1) year after the date the Optionee exercises all or part of the Option or within two (2) years after the Date of Option Grant
and (b) provide the Company with a description of the circumstances of such disposition. Until such time as the Optionee disposes of such shares in a manner consistent with the provisions of this Option Agreement, unless otherwise expressly
authorized by the Company, the Optionee shall hold all shares acquired pursuant to the Option in the Optionee’s name (and not in the name of any nominee) for the one-year period immediately after the exercise of the Option and the two-year
period immediately after Date of Option Grant. At any time during the one-year or two-year periods set forth above, the Company may place a legend on any certificate representing shares acquired pursuant to the Option requesting the transfer agent
for the Company’s stock to notify the Company of any such transfers. The obligation of the Optionee to notify the Company of any such transfer shall continue notwithstanding that a legend has been placed on the certificate pursuant to the
preceding sentence. 
 12. LEGENDS. 
 The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates
representing shares of stock subject to the provisions of this Option Agreement. The Optionee shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to the Option in the
possession of the Optionee in order to carry out the provisions of this Section. Unless otherwise specified by the Company, legends placed on such certificates may include, but shall not be limited to, the following: 
 “THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED HOLDER UPON EXERCISE OF AN INCENTIVE STOCK OPTION AS
DEFINED IN SECTION 422 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (“ISO”). IN ORDER TO OBTAIN THE PREFERENTIAL TAX TREATMENT AFFORDED TO ISOs, THE SHARES SHOULD NOT BE TRANSFERRED PRIOR TO [INSERT DISQUALIFYING DISPOSITION
DATE HERE]. SHOULD THE REGISTERED HOLDER ELECT TO TRANSFER ANY OF THE SHARES PRIOR TO THIS DATE AND FOREGO ISO TAX TREATMENT, THE TRANSFER AGENT FOR THE SHARES SHALL NOTIFY THE CORPORATION IMMEDIATELY. THE REGISTERED HOLDER SHALL HOLD ALL SHARES
PURCHASED UNDER THE INCENTIVE STOCK OPTION IN THE REGISTERED HOLDER’S NAME (AND NOT IN THE NAME OF ANY NOMINEE) PRIOR TO THIS DATE OR UNTIL TRANSFERRED AS DESCRIBED ABOVE.” 
  

 8 

 13. MISCELLANEOUS PROVISIONS.

 13.1 Binding Effect. Subject to the restrictions on transfer set forth herein, this Option Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
 13.2 Termination
or Amendment. The Board may terminate or amend the Plan or the Option at any time; provided, however, that except as provided in Section 8.2 in connection with a Change in Control, no such termination or amendment may adversely affect the
Option or any unexercised portion hereof without the consent of the Optionee unless such termination or amendment is necessary to comply with any applicable law or government regulation or is required to enable the Option, if designated an Incentive
Stock Option in the Notice, to qualify as an Incentive Stock Option. No amendment or addition to this Option Agreement shall be effective unless in writing. 
 13.3 Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Option Agreement provides for effectiveness only upon
actual receipt of such notice) upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, with postage and fees prepaid, addressed to the other party at the address shown below that party’s
signature or at such other address as such party may designate in writing from time to time to the other party. 
 13.4 Integrated
Agreement. The Notice, this Option Agreement and the Plan constitute the entire understanding and agreement of the Optionee and the Participating Company Group with respect to the subject matter contained herein or therein and supersedes any
prior agreements, understandings, restrictions, representations, or warranties among the Optionee and the Participating Company Group with respect to such subject matter other than those as set forth or provided for herein or therein. To the extent
contemplated herein or therein, the provisions of the Notice and the Option Agreement shall survive any exercise of the Option and shall remain in full force and effect. 
 13.5 Applicable Law. This Option Agreement shall be governed by the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely
within the State of California. 
 13.6 Counterparts. The Notice may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
  

 9 

							
	 TM Incentive Stock Option
	  	Optionee:	 	                                 
	 TM Nonstatutory Stock Option
	  		 	
		  		 	Date:	 	                     

 STOCK OPTION EXERCISE NOTICE 
 RAE Systems Inc. 
 Attention: Chief Financial Officer 
 3775 North First Street 
 San Jose, California 95134 
 Ladies and Gentlemen: 
 1. Option. I was granted an option (the
“Option”) to purchase shares of the common stock (the “Shares”) of RAE Systems Inc. (the “Company”) pursuant to the Company’s 2002
Stock Option Plan (the “Plan”), my Notice of Grant of Stock Option (the “Notice”) and my Stock Option Agreement (the “Option
Agreement”) as follows: 
  

			
	Grant Number:	  	______________
		
	Date of Option Grant:	  	______________
		
	Number of Option Shares:	  	______________
		
	Exercise Price per Share:	  	$______________

 2. Exercise of Option. I hereby elect to exercise the Option to purchase the
following number of Shares, all of which are Vested Shares in accordance with the Notice and the Option Agreement: 
  

			
	Total Shares Purchased:	  	______________
		
	Total Exercise Price (Total Shares X Price per Share)	  	$______________

 3. Payments. I enclose payment in full of the total exercise price for the Shares in
the following form(s), as authorized by my Option Agreement: 
  

			
	TM Cash:	  	$______________
		
	TM Check:	  	$______________
		
	TM Tender of Company Stock:	  	Contact Plan Administrator

 4. Tax Withholding. I authorize payroll withholding and otherwise will make adequate
provision for the federal, state, local and foreign tax withholding obligations of the Company, if any, in connection with the Option. If I am exercising a Nonstatutory Stock Option, I enclose payment in full of my withholding taxes, if any, as
follows: 
 (Contact Plan Administrator for amount of tax due.) 
  

			
	TM Cash:	  	$______________
		
	TM Check:	  	$______________

  

 1 

 5. Optionee Information. 
  

			
	My address is:	 	  

		
		 	  

  

			
	My Social Security Number is:	 	  

 6. Notice of Disqualifying Disposition. If the Option is an Incentive Stock Option,
I agree that I will promptly notify the Chief Financial Officer of the Company if I transfer any of the Shares within one (1) year from the date I exercise all or part of the Option or within two (2) years of the Date of Option Grant.

 7. Binding Effect. I agree that the Shares are being acquired in accordance with and subject to the terms, provisions and
conditions of the Option Agreement, including the Right of First Refusal set forth therein, to all of which I hereby expressly assent. This Agreement shall inure to the benefit of and be binding upon my heirs, executors, administrators, successors
and assigns. 
  

 2 

 I understand that I am purchasing the Shares pursuant to the terms of the Plan, the Notice and my Option Agreement,
copies of which I have received and carefully read and understand. 
  

	
	Very truly yours,
	
	  
 (Signature)

 Receipt of the above is hereby acknowledged. 
 RAE Systems Inc. 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

 Dated: 
  

 3

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