Document:

EXHIBIT 10.2

 

CIFC DEERFIELD CORP.

 

2011 STOCK OPTION AND INCENTIVE PLAN

 

STOCK OPTION AWARD CERTIFICATE

 

This Stock Option Award Certificate (“Agreement”) is made effective [date] (the “Grant Date”), and is between CIFC Deerfield Corp., a Delaware corporation (the “Company”), and [ name ] (the “Participant”).  Any term capitalized but not defined in this Agreement will have the meaning set forth in the CIFC Deerfield Corp. 2011 Stock Option and Incentive Plan (the “Plan”).

 

1.             Option Grant.  In accordance with the terms of the Plan and subject to the terms and conditions of this Agreement and subject to approval of the Plan by the stockholders at the Company’s 2011 annual meeting, the Company hereby grants to the Participant an option to purchase all or any part of an aggregate of [ number ] of the Company’s shares of Stock (the “Option”).  The Participant may exercise this Option prior to the expiration of its term only after it has become exercisable in accordance with the provisions of Section 4.  This Option is a nonqualified option and is not intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

 

2.             Exercise Price.  The exercise price will be $[price] per share of Stock (the “Exercise Price”), which is equal to the closing trading price of the Company’s Stock on the Grant Date.

 

3.             Payment of Exercise Price.  The Participant must pay the Exercise Price of any Options exercised at the time of purchase:  (i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that are owned by the Participant and that are not then subject to restrictions under any Company plan, which surrendered shares shall be valued at Fair Market Value on the exercise date; (iii) by the Participant delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the Participant chooses to pay the purchase price as so provided, the Participant and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate Exercise Price.

 

(a)           Payment instruments will be received subject to collection.  The transfer to the Participant on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant to the exercise of an Option will be contingent upon receipt from the Participant (or a purchaser acting in his or her stead in accordance with the provisions of the Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in this Agreement or applicable

 

 

provisions of laws (including the satisfaction of any withholding taxes that the Company is obligated to withhold with respect to the Participant).

 

(b)           In the event a Participant chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Participant upon the exercise of the Option shall be net of the number of attested shares.  In the event that the Company establishes, for itself or using the services of a third party, an automated system for the exercise of Options, such as a system using an internet website or interactive voice response, then the paperless exercise of Options may be permitted through the use of such an automated system.

 

(c)           Each Participant shall, no later than the date as of which the value of any Stock or other amounts received hereunder first becomes includable in the gross income of the Participant for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to such income.  The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant.  The Company’s obligation to deliver evidence of book entry (or stock certificates) to any Participant is subject to and conditioned on tax withholding obligations being satisfied by the Participant.

 

(d)           Subject to approval by the Administrator, a Participant may elect to have the Company’s minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued pursuant to exercise of an Option a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due.

 

4.             Term and Exercise of the Option.

 

(a)           The Option will expire on the tenth anniversary of the Grant Date (the “Expiration Date”).

 

(b)           Except as provided in Section 6, the Option shall become exercisable in installments as follows:

 

(i)            one-fourth (1/4) of the Option shall become exercisable on the first anniversary of the Grant Date, if the Participant has remained in continuous Service until that date; and

 

(ii)           an additional one-sixteenth (1/16) of the Option shall become exercisable on each of the next twelve quarterly anniversaries, with the first quarterly installment vesting on the date that is one year and 3 months from the Grant Date, if the Participant has remained in continuous Service until such dates.

 

(c)           “Service” means the provision of services in the capacity of (i) an employee of the Company or its Subsidiaries, (ii) a non-employee member of the

 

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Company’s Board or the board of directors of a Subsidiary, or (iii) a consultant or other independent advisor to the Company or its Subsidiaries.

 

5.             Shares Subject to Holding Period.  Upon exercise of the Option, 50% of the shares of Stock acquired by the Participant (net of shares used to satisfy tax withholding obligations and/or the Option Exercise Price) shall be subject to a holding period during which the Participant may not transfer, sell or otherwise dispose of such shares of Stock, lasting until the earlier of (i) the fifth anniversary of the Grant Date or (ii) 6 months after the Participant’s termination of Service.  Notwithstanding the foregoing, if the Participant terminates his or her Service upon his or her death, disability, Qualified Retirement or in connection with a Change in Control (each as described in Section 6), then the holding period shall expire upon such termination of Service.  The Company reserves the right to enforce the holding period by any reasonable means that it deems advisable.

 

6.             Termination of Service.

 

(a)           Termination of Service upon Death, Disability or Qualified Retirement.  Upon termination of Service due to the Participant’s death, disability or Qualified Retirement, (i) the Participant will receive accelerated vesting with respect to any Options that would have vested in the 24 month period following the termination and (ii) any remaining holding periods will be waived.  Vested Options will remain exercisable following the Participant’s termination of Service due to death, disability or Qualified Retirement for the remainder of the 10 year Option term.  The Participant will forfeit any unvested Options that would have vested after the expiration of the 24 month period following his or her death, disability or Qualified Retirement.

 

(i)            “Qualified Retirement” means a Participant’s voluntary termination of Service after reaching age 65 and completing 10 years of service with the Company, its Subsidiaries or predecessors.

 

(b)           Termination of Service by the Company Without Cause or Termination of Service by the Participant for Good Reason.  Upon any termination of Service by the Company without Cause or by the Participant for Good Reason the Participant will forfeit any unvested Options.  Vested Options will remain exercisable for a period of 90 days following a termination of Service by the Company without Cause or by the Participant for Good Reason.  Any shares of Stock acquired through exercise of the Option award that are subject to the holding period will remain subject to the holding period requirement for a period of 6 months following such termination of Service.

 

(i)            “Cause” means:

 

(A)          the breach by the Participant of any of the restrictive covenant provisions contained in Section 7  of this Agreement;

 

(B)           the Participant’s commission of a felony or violation of any law involving moral turpitude, dishonesty, disloyalty or fraud;

 

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(C)           any failure by the Participant to substantially comply with any written rule, regulation, policy or procedure of the Company or its Subsidiaries applicable to the Participant, which noncompliance could reasonably be expected to have a material adverse effect on the business of the Company or any Subsidiary;

 

(D)          any failure by the Participant to comply with the Company’s or its Subsidiaries’ policies with respect to insider trading applicable to the Participant;

 

(E)           a willful material misrepresentation at any time by the Participant to any member of the Board or any director or superior executive officer of the Company or its Subsidiaries;

 

(F)           the Participant’s willful failure or refusal to comply with any of his or her material obligations hereunder or a reasonable and lawful instruction of the Board or the person to whom the Participant reports; or

 

(G)           commission by the Participant of any act of fraud or gross negligence in the course of his or her Service hereunder or any other action by the Participant, in either case that is determined to be materially detrimental to the Company or any of its Subsidiaries (which determination, in the case of gross negligence or such other action, shall be made by the Administrator in its reasonable discretion);

 

provided that, except for any willful or grossly negligent acts or omissions, the commission of any act or omission described in clause (A) or (C) that is capable of being cured shall not constitute Cause hereunder unless and until the Participant, after written notice from the Company to him specifying the circumstances giving rise to Cause under such clause, shall have failed to cure such act or omission to the reasonable satisfaction of the Administrator within 10 business days after such notice; and

 

provided further, that the Participant’s Service shall be deemed to have terminated for Cause if, after the Participant’s Service has terminated, facts and circumstances are discovered that would have justified a termination for Cause.

 

(ii)           “Good Reason” shall mean, without the Participant’s consent, the occurrence of any of the following events:

 

(A)          a material reduction in the Participant’s base salary;

 

(B)           a material adverse change in the Participant’s responsibilities; or

 

(C)           any requirement that the Participant be based anywhere more than 50 miles outside the city limits of New York, NY.

 

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Notwithstanding the foregoing, “Good Reason” shall not exist with respect to the matters set forth in clauses (A), (B) or (C) above unless, after written notice from the Participant to the Administrator specifying the circumstances giving rise to Good Reason under such clause, the Company shall fail to cure the circumstances giving rise to Good Reason to the reasonable satisfaction of the Participant within 10 business days after such notice.

 

(c)           Voluntary Termination of Service by the Participant Without Good Reason.  Upon any termination of Service by the Participant without Good Reason, the Participant will forfeit any unvested Options.  Vested Options will remain exercisable for a period of 30 days following a voluntary termination by the Participant without Good Reason.  Any shares acquired through exercise of the Option award that are subject to the holding period will remain subject to the holding period requirement for a period of 6 months following such termination of Service.

 

(d)           Termination of Service by the Company for Cause.  Participants will forfeit any (i) unvested Options and (ii) vested Options that remain unexercised.  In addition, the Company, at its option, will have the right to repurchase shares held by the Participant that were acquired through exercise of the Option award at the lower of current Fair Market Value or the Exercise Price.

 

(e)           Termination of Service by the Company in Connection with a Change in Control (i.e., a “Sale Event”).  If a Participant with at least 3 years of prior service with the Company, its Subsidiaries or predecessors either (i) is terminated by the Company without Cause within a period beginning 6 months prior to the effective date of a Sale Event and ending 12 months after the effective date of a Sale Event, or (ii) resigns for Good Reason within a period beginning on the effective date of a Sale Event and ending 12 months after the effective date of a Sale Event, such Participant will receive accelerated vesting of his or her Option award and any remaining holding periods will be waived upon termination (or, if later, upon the effective date of a Sale Event).  Provided that the Participant meets the 3 year service requirement, vested Options will remain exercisable following the Participant’s termination of Service due to a Change in Control for the remainder of the Option term, subject to Section 3 of the Plan.  Participants that do not meet the 3 year service requirement will be treated in the same manner as described in Sections 6(a) — (d), as applicable.

 

7.             Confidentiality, Competition, and Nonsolicitation.

 

(a)           Nondisclosure and Nonuse of Confidential Information.  The Participant shall not disclose or use at any time, either during the Participant’s Service or thereafter, any Confidential Information (as defined below) of which the Participant is or becomes aware, whether or not such information is developed by the Participant, except to the extent that such disclosure or use is directly related to and required by the Participant’s performance of duties assigned to the Participant by the Company or its Subsidiaries.  The Participant shall take all appropriate steps to safeguard Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft. For

 

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purposes of this Agreement, the term “Confidential Information” is defined to include all proprietary information or data relating to the business of Company or its Subsidiaries to which the Participant has access and/or learns prior to or during the Participant’s Service, including business and financial information; new product development; formulas, identities of and information concerning clients, vendors and suppliers; development, expansion and business strategies, plans and techniques; computer programs, devices, methods, techniques, processes and inventions; research and development activities; compilations and other materials developed by or on behalf of the Company or its Subsidiaries (whether in written, graphic, audio-visual, electronic or other media, including computer software).  Confidential Information also includes information of any third party doing business with the Company or its Subsidiaries that such third party identifies as being confidential or that is subject to a confidentiality agreement with such third party. Confidential Information shall not include any information that is in the public domain or otherwise publicly available (other than as a result of a wrongful act of the Participant or an agent or other employee of the Company or its Subsidiaries, including a breach of this Section 7(a)).

 

(b)           Non-Competition.  The Participant acknowledges and agrees that (i) in the course of the Participant’s Service the Participant shall become familiar with the trade secrets of the Company and its Subsidiaries and with other Confidential Information concerning the Company or its Subsidiaries, (ii) the Participant’s services to the Company or its Subsidiaries are unique in nature and of an extraordinary value to the Company and its Subsidiaries, and (iii) the Company and its Subsidiaries could be irreparably damaged if the Participant were to provide similar services to any person or entity competing with the Company or its Subsidiaries or engaged in a similar business, in a capacity of employee, member, partner, shareholder, officer or director.  In connection with the grant to the Participant of the Option hereunder, and in consideration for and as an inducement to the Company to enter into this Agreement, the Participant covenants and agrees that during the period beginning on the Grant Date and ending on either (A) in the event Participant is terminated by the Company without Cause or the Participant resigns for Good Reason, the date of the termination of the Participant’s Service, or (B) in the event the Participant’s Service is terminated for any other reason, the date that is 6 months from the date of the termination of the Participant’s Service (the “Restricted Period”), the Participant shall not, directly or indirectly, either for herself or for or through any other person, participate in any business or enterprise anywhere in the United States that involves the ownership, management, operation or control of any investment fund or other investment vehicle that is (at the time of the Participant’s termination of Service) or becomes during the term of the Restricted Period engaged in a business with a strategy substantially similar to that of the Company or its Subsidiaries (each a “Competing Business”).  Without limiting the generality of the foregoing, the Participant agrees that, during the Restricted Period, the Participant shall not compete against the Company or its Subsidiaries by soliciting any customer or prospective customer of the Company or its Subsidiaries with whom the Company or its Subsidiaries had any business dealings or contracts.  The Participant agrees that this covenant is reasonable with respect to its duration, geographical area and scope.  For purposes of this Agreement, the term “participate in” means (i) having any direct or indirect interest in any entity, whether as a sole proprietor, owner, member, shareholder, partner, joint

 

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venture, creditor or otherwise, or (ii) rendering any direct or indirect service or assistance to any person or entity (whether as a director, officer, manager, supervisor, employee, agent, consultant or otherwise) in a capacity where there is a reasonable possibility that Participant may, intentionally or inadvertently, use or rely upon Confidential Information and/or in a capacity that is similar to the capacity Participant was in, where Participant provides services that are similar to the services Participant provided, or with responsibilities that are similar to the responsibilities Participant had, in each case, when Participant was employed by the Company or any of its Subsidiaries; provided, however, that Participate shall violate this Section 7(b) if at any time during the term of Participant’s employment with the Company or its Subsidiaries, Participant becomes employed in any capacity by, or becomes associated in any way with, a Competing Business. Notwithstanding the foregoing, the mere ownership by Participant of up to two percent (2%) of the outstanding stock of any class that is publicly traded, standing alone, shall not violate this provision.

 

(c)           Nonsolicitation.  The Participant may not, during his or her Service and for a period of one year following his or her termination of Service, directly or indirectly (i) induce any employee, director or consultant of the Company or any of its Subsidiaries to end his or her relationship with the Company for the purpose of associating with any Competing Business, (ii) induce any clients or business associates of the Company or its Subsidiaries to terminate or diminish its relationship with the Company or its Subsidiaries, or (iii) solicit or hire, or facilitate in any way the solicitation or hiring of,  any individual that the Participant knows is currently or was associated with the Company or its Subsidiaries in the preceding 6 months, unless such individual’s employment or association was terminated by the Company or its Subsidiaries, provided that nothing in this paragraph shall prohibit a Participant from hiring any employee of the Company or any of its Subsidiaries that is responding to a job opportunity advertisement directed to the general public rather than targeting any employee of the Company or its Subsidiaries.

 

(d)           Non-disparagement.  The Participant agrees not to make any communication to any third party (including, without limitation, any client (including potential clients) or employee of the Company or its Subsidiaries) that would, or is reasonably likely to, disparage, create a negative impression of, or in any way be harmful to the business or business reputation of the Company or its Subsidiaries or their respective successors and assigns, and the then current and former officers, directors, shareholders, partners, members, employees, agents and consultants (or person acting in a similar capacity) of each of the foregoing.

 

(e)           Judicial Modification.  If the final judgment of a court of competent jurisdiction declares that any term or provision of this Section 7 is invalid or unenforceable, the parties agree that (i) the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or geographic area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, (ii) the parties shall request that the court exercise that power, and (iii) this

 

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Agreement shall be enforceable as so modified after the expiration of the time within which the judgment or decision may be appealed.

 

(f)            Remedy for Breach.  In addition to the remedies available to the Company under this Agreement upon a breach or threatened breach of any of the covenants contained in this Section 7 (including termination of the Participant’s Service for Cause as described in Section 6), the Company shall also have and seek enforcement of any other penalties or restrictions that may apply under any employment agreement, state law, or otherwise.

 

8.             Option Transfer and Exercise.

 

(a)           Except as provided in subsection (c) below, the Participant may not sell, transfer, pledge, assign or otherwise alienate or hypothecate the Option.

 

(b)           Except as provided in subsection (c) below, during the Participant’s lifetime and subject to the terms of this Agreement and the Plan, only the Participant or his or her guardian or legal representative may exercise the Option.  The Administrator may, in its discretion, require a guardian or legal representative to supply it with the evidence the Administrator reasonably deems necessary to establish the authority of the guardian or legal representative to exercise the Option on behalf of the Participant or transferee, as the case may be.

 

(c)           The Option shall not be assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order in settlement of marital property rights; provided that the Administrator may permit (on such terms and conditions as it shall establish) a Participant to transfer an Option for no consideration to the Participant’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee), a trust in which these persons have all of the beneficial interest and any other entity in which these persons (or the Participant) own all of the voting interests (“Permitted Transferees”). Except to the extent required by law, no right or interest of any Participant shall be subject to any lien, obligation or liability of the Participant. All rights with respect to Options granted to a Participant under the Plan shall be exercisable during the Participant’s lifetime only by such Participant or, if applicable, his or her Permitted Transferee(s). The rights of a Permitted Transferee shall be limited to the rights conveyed to such Permitted Transferee, who shall be subject to and bound by the terms of the Agreement between the Participant and the Company.

 

9.             Securities Law Requirements.  If at any time the Administrator determines that exercising the Option or issuing shares of Stock would violate applicable securities laws, the Option will not be exercisable, and the Company will not be required to issue shares of Stock.  The Administrator may declare any provision of this Agreement or action of its own null and void, if it determines the provision or action fails to comply with the short-swing trading rules.

 

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As a condition to exercise, the Company may require the Participant to make written representations it deems necessary or desirable to comply with applicable securities laws.

 

10.          No Obligation to Exercise Option.  Neither the Participant nor his or her transferee is or will be obligated by the grant of the Option to exercise it.

 

11.          No Limitation on Rights of the Company.  The grant of the Option does not and will not in any way affect the right or power of the Company to make adjustments, reclassifications or changes in its capital or business structure, or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

12.          Plan and Agreement Not a Contract of Employment or Service.  Neither the Plan nor this Agreement is a contract of employment, and no terms of the Participant’s Service will be affected in any way by the Plan, this Agreement or related instruments, except to the extent specifically expressed therein.  Neither the Plan nor this Agreement will be construed as conferring any legal rights on the Participant to continue to be employed or remain in service with the Company, nor will it interfere with the Company’s or its Subsidiaries’ right to discharge the Participant or to deal with him or her regardless of the existence of the Plan, this Agreement or the Option.

 

13.          Participant to Have No Rights as a Common Shareholder.  Before the date as of which he or she is recorded on the books of the Company as the holder of any shares of Stock underlying the Option, the Participant will have no rights as a shareholder with respect to those shares of Stock.

 

14.          Legend on Certificates.  The certificates representing the shares of Stock purchased by exercise of an Option shall be subject to such stop transfer orders and other restrictions as the Administrator may deem reasonably advisable under the Plan (including, but not limited to, in connection with the enforcement of the holding period described in Section 5 of this Agreement) or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares of Stock are listed, any applicable federal or state laws and the Company’s certificate of incorporation and bylaws, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

15.          Notice.  Any notice or other communication required or permitted under this Agreement must be in writing and must be delivered personally, sent by certified, registered or express mail, or sent by overnight courier, at the sender’s expense.  Notice will be deemed given when delivered personally or, if mailed, three (3) days after the date of deposit in the mail or, if sent by overnight courier, on the regular business day following the date sent.  Notice to the Company should be sent to CIFC Deerfield Corp., 250 Park Avenue, 5th Floor, New York, NY 10177.  Notice to the Participant should be sent to the address set forth on the signature page below.  Either party may change the address to whom the other party must give notice under this Section by giving such other party written notice of such change, in accordance with the procedures described above.

 

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16.          Successors.  All obligations of the Company under this Agreement will be binding on any successor to the Company, whether the existence of the successor results from a direct or indirect purchase of all or substantially all of the business of the Company, or a merger, consolidation, or otherwise.

 

17.          Governing Law.  To the extent not preempted by federal law, this Agreement will be construed and enforced in accordance with, and governed by, the laws of the State of New York, without giving effect to its conflicts of law principles that would require the application of the law of any other jurisdiction.

 

18.          Plan Document Controls.  The rights granted under this Agreement are in all respects subject to the provisions set forth in the Plan to the same extent and with the same effect as if set forth fully in this Agreement.  If the terms of this Agreement conflict with the terms of the Plan document, the Plan document will control.

 

19.          Amendment of the Agreement.  The Company and the Participant may amend this Agreement only by a written instrument signed by both parties.

 

20.          Counterparts.  The parties may execute this Agreement in one or more counterparts, all of which together shall constitute but one Agreement.

 

[signature page follows]

 

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IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first written above.

 

	
CIFC Deerfield Corp.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Participant’s Signature)
    
	
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Participant’s   Name and Address for notices
    
	
Its:
    	
 
    	
 
    
	
 
    	
 
    	
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OPTION EXERCISE FORM

 

The undersigned holder of an Option to purchase shares of Stock of CIFC Deerfield Corp. pursuant to a Stock Option Award Agreement under its 2011 Stock Option and Incentive Plan hereby exercises his/her Option to purchase                          of such shares of Stock, at the Exercise Price of $           per share, in accordance with the terms and conditions of such Stock Option Award Agreement.

 

Date of Exercise

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature of Person Exercising Option
    

 

 

Please type or print legibly your name, as you want it to appear on your stock certificate, your address and your social security number in the space provided below.

 

	
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Social   Security Number:September 16, 2011 S8 Exhibit 10.16

Exhibit 10.16

AMENDED AND RESTATED CONTACTUAL, INC. 

2003 STOCK OPTION PLAN

(as amended on May 29, 2008, February 24, 2010, 

September 1, 2010 and June 24, 2011)

	Purposes of the Plan.  The purposes of this
Stock Option Plan are to attract and retain the best available personnel for positions of substantial responsibility, to
provide additional incentives to Employees, Non-Employee Directors of, and Consultants to Contactual, Inc., a Delaware
corporation (the "Company"), and its Subsidiaries, and to promote the success of the Company's business.
Options granted hereunder may be either Incentive Stock Options or Non-Statutory Stock Options at the discretion of the
Committee.

	Definitions.  As used herein, and in any Option granted hereunder, the following
definitions shall apply:

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

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

	"Committee" shall mean the Committee appointed by the Board in
accordance with paragraph (a) of Section 4 of the Plan.  If the Board does not appoint or ceases to maintain a
Committee, the term "Committee" shall refer to the Board.

	"Common Stock" shall mean the Common Stock of the
Company.

	"Company" shall mean Contactual, Inc., a Delaware
corporation.

	"Consultant" shall mean any independent contractor retained to perform
bona fide services of any kind for the Company or any Subsidiary.

	"Continuous Employment" shall mean the absence of any interruption
or termination of service as an Employee or Non-Employee Director by the Company or any Subsidiary.  Continuous
Employment shall not be considered interrupted during any period of sick leave, military leave or any other leave of
absence approved by the Board or in the case of transfers between locations of the Company or between the Company
and any Parent, Subsidiary or successor of the Company.

	"Covered Employee" shall mean any individual whose compensation is
subject to the limitations on tax deductibility provided by Section 162(m) of the Code and any Treasury Regulations
promulgated thereunder in effect at the close of the taxable year of the Company in which an Option has been granted
to such individual.

	"Employee" shall mean any person, including officers (whether or not
they are directors), employed by the Company or any Subsidiary.

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

	"Incentive Stock Option" shall mean any option granted under this Plan
and any other option granted to an Employee in accordance with the provisions of Section 422 of the Code, and the
regulations promulgated thereunder.

	"Non-Employee Director" shall mean any director of the Company or
any Subsidiary who (i) is not employed by the Company or such Subsidiary; (ii) does not receive compensation, either
directly or indirectly, from the Company or a parent or Subsidiary for services rendered as a consultant or in any capacity
other than as a director, except for an amount that does not exceed the dollar amount for which disclosure would be
required pursuant to Item 404(a) of Regulation S-K; (iii) does not possess an interest in any other transaction for which
disclosure would be required pursuant to Item 404(a) of Regulation S-K; and (iv) is not engaged in a business
relationship for which disclosure would be required pursuant to Item 404 (b) of Regulation S-K.

	"Non-Statutory Stock Option" shall mean an option granted under the
Plan that is subject to the provisions of Section 1.83-7 of the Treasury Regulations promulgated under Section 83 of the
Code.

	"Option" shall mean a stock option granted pursuant to the
Plan.

	"Option Agreement" shall mean a written agreement between the
Company and the Optionee regarding the grant and exercise of Options to purchase Shares and the terms and
conditions thereof as determined by the Committee pursuant to the Plan.

	"Optioned Shares" shall mean the Common Stock subject to an
Option.

	"Optionee" shall mean an Employee, Non-Employee Director or
Consultant who receives an Option.

	"Outside Director" shall mean a director of the Company who qualifies
as an outside director as such term is used in Section 162(m) of the Code and defined in any applicable Treasury
Regulations promulgated thereunder.

	"Parent" shall mean a "parent corporation," whether now or
hereafter existing, as defined by Section 424(e) of the Code.

	"Plan" shall mean this 2003 Stock Option Plan.

	"Registration Date" shall mean the effective date of the first registration
statement filed by the Company pursuant to Section 12 of the Exchange Act with respect to any class of the Company's
equity securities.

	"Section 162(m) Effective Date" shall mean the first date as of which
the limitations on the tax deductibility of certain compensation provided by Section 162(m) of the Code and any Treasury
Regulations promulgated thereunder are applicable to Options granted under the Plan.

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

	"Share" shall mean a share of the Common Stock of the Company
subject to an Option, as adjusted in accordance with Section 11 of the Plan.

	"Subsidiary" shall mean a "subsidiary corporation," whether
now or hereafter existing, as defined in Section 424(f) of the Code.

	Stock Subject to the Plan.  Subject to the provisions of Section 11 of the Plan, the
maximum aggregate number of Shares which may be optioned and sold under the Plan is sixteen million nine hundred
twenty-two thousand four hundred seventy-eight (16,922,478) Shares of Common Stock.  The Shares may be
authorized but unissued or reacquired Shares of Common Stock.  If an Option expires or becomes unexercisable for any
reason without having been exercised in full, the Shares which were subject to the Option but as to which the Option
was not exercised shall become available for other Option grants under the Plan, unless the Plan shall have been
terminated.

The Company intends that as long as it is not subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act and is not an investment company registered or required to be registered under the
Investment Company Act of 1940, all offers and sales of Options and Shares issuable upon exercise of any Option shall
be exempt from registration under the provisions of Section 5 of the Securities Act, and the Plan shall be administered in
such a manner so as to preserve such exemption.  The Company intends that the Plan shall constitute a written
compensatory benefit plan within the meaning of Rule 701(b) of 17 CFR Section 230.701 promulgated by the Securities
and Exchange Commission pursuant to such Act or any successor rule.  Unless otherwise specified Options granted
under the Plan are intended to be granted in reliance on Rule 701 whenever applicable.

	Administration of the Plan.

	Procedure.  The Plan shall be administered by the Board.  The Board may appoint
a Committee consisting of not less than two (2) members of the Board to administer the Plan, subject to such terms and
conditions as the Board may prescribe.  Once appointed, the Committee shall continue to serve until otherwise directed
by the Board.  From time to time, the Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and, thereafter, directly administer the Plan.

Members of the Board or Committee who are either eligible for Options or have been granted
Options may vote on any matters affecting the administration of the Plan or the grant of Options pursuant to the Plan,
except that no such member shall act upon the granting of an Option to himself, but any such member may be counted
in determining the existence of a quorum at any meeting of the Board or the Committee during which action is taken with
respect to the granting of an Option to him or her.

The Committee shall meet at such times and places and upon such notice as the chairperson
determines.  A majority of the Committee shall constitute a quorum.  Any acts by the Committee may be taken at any
meeting at which a quorum is present and shall be by majority

vote of those members entitled to vote.  Additionally, any
acts reduced to writing or approved in writing by all of the members of the Committee shall be valid acts of the
Committee.

	Procedure After Registration Date.  Notwithstanding subsection (a) above, after the
date of registration of the Company's Common Stock on a national securities exchange or the Registration Date, the
Plan shall be administered either by: (i) the full Board; or (ii) a Committee of two (2) or more directors, each of whom is a
Non-Employee Director.  After such date, the Board shall take all action necessary to administer the Plan in accordance
with the then effective provisions of Rule 16b-3 promulgated under the Exchange Act, provided that any amendment to
the Plan required for compliance with such provisions shall be made consistent with the provisions of Section 13 of the
Plan, and said regulations.

	Procedure After Section 162(m) Effective Date.  Notwithstanding subsections (a)
and (b) above, after the Section 162(m) Effective Date the Plan and all Option grants shall be administered and
approved by a Committee comprised solely of two or more Outside Directors.

	Powers of the Committee.  Subject to the provisions of the Plan, the Committee
shall have the authority: (i) to determine, upon review of relevant information, the fair market value of the Common
Stock; (ii) to determine the exercise price of Options to be granted, the Employees, Non-Employee Directors or
Consultants to whom and the time or times at which Options shall be granted, and the number of Shares to be
represented by each Option; (iii) to interpret the Plan; (iv) to prescribe, amend and rescind rules and regulations relating
to the Plan; (v) to determine the terms and provisions of each Option granted under the Plan (which need not be
identical) and, with the consent of the holder thereof, to modify or amend any Option; (vi) to authorize any person to
execute on behalf of the Company any instrument required to effectuate the grant of an Option previously granted by the
Committee; (vii) defer an exercise date of any Option (with the consent of the Optionee), subject to the provisions of
Section 9(a) of the Plan; (viii) to determine whether Options granted under the Plan will be Incentive Stock Options or
Non-Statutory Stock Options; and (ix) to make all other determinations deemed necessary or advisable for the
administration of the Plan.

	Acceleration of Vesting.  In addition to its other powers, the Board (or the
Committee), in its discretion, has the right, but not the obligation, to accelerate unvested Options in connection with (i)
any tender offer for a majority of the outstanding shares of Common Stock by any person or entity; (ii) any proposed sale
or conveyance of all or substantially all of the property and assets of the Company; or (iii) any proposed consolidation or
merger of the Company with or into any other corporation, unless the Company is the surviving corporation.  In the case
of such accelerated vesting, the Company shall give written notice to the holder of any Option that such Option may be
exercised even though the Option or portion thereof would not otherwise have been exercisable had the foregoing event
not occurred.  In such event, the Company shall permit the holder of any Option to exercise during the time period
specified in the Company's notice, which period shall not be less than ten days following the date of notice.  Upon
consummation of a tender offer or proposed sale, conveyance, consolidation or merger to which such notice shall relate,
all rights under said Option which shall not have been so exercised shall terminate unless the agreement governing the
transaction shall provide otherwise.

	Effect of Committee's Decision.  All decisions, determinations and interpretations of
the Committee shall be final and binding on all potential or actual Optionees, any other holder of an Option or other
equity security of the Company and all other persons.

	Eligibility.

	Persons Eligible for Options.  Options under the Plan may be granted only to
Employees, Non-Employee Directors or Consultants whom the Committee, in its sole discretion, may designate from
time to time.  Incentive Stock Options may be granted only to Employees.  An Employee who has been granted an
Option, if he or she is otherwise eligible, may be granted an additional Option or Options.  However, the aggregate fair
market value (determined in accordance with the provisions of Section 8(a) of the Plan) of the Shares subject to one or
more Incentive Stock Options grants that are exercisable for the first time by an Optionee during any calendar year
(under all stock option plans of the Company and its Parents and Subsidiaries) shall not exceed $100,000 (determined
as of the grant date).  Any options granted that exceed the foregoing limitation shall be deemed to be Non-Statutory
Stock Options.  As of the Section 162(m) Effective Date, Options under the Plan shall be granted to Covered Employees
upon satisfaction of the conditions to such grants provided pursuant to Section 162(m) and any Treasury Regulations
promulgated thereunder.

	No Right to Continuing Employment.  Neither the establishment nor the operation
of the Plan shall confer upon any Optionee or any other person any right with respect to continuation of employment or
other service with the Company or any Subsidiary, nor shall the Plan interfere in any way with the right of the Optionee
or the right of the Company (or any Parent or Subsidiary) to terminate such employment or service at any
time.

	Term of Plan.  The Plan shall become effective upon its adoption by the Board or
its approval by vote of the holders of the outstanding shares of the Company entitled to vote on the adoption of the Plan
(in accordance with the provisions of Section 19 hereof), whichever is earlier.  It shall continue in effect for a term of ten
(10) years unless sooner terminated under Section 13 of the Plan.

	Term of Option.  Unless the Committee determines otherwise, the term of each
Option granted under the Plan shall be ten (10) years from the date of grant.  The term of the Option shall be set forth in
the Option Agreement.  No Incentive Stock Option shall be exercisable after the expiration of ten (10) years from the
date such Option is granted, provided that no Incentive Stock Option granted to any Employee who, at the date such
Option is granted, owns (within the meaning of Section 425(d) of the Code) more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or any Parent or Subsidiary shall be exercisable after the
expiration of five (5) years from the date such Option is granted.

	Exercise Price and Consideration.

	Exercise Price.  Except as provided in subsections (b) and (c) below, the exercise
price for the Shares to be issued pursuant to any Option shall be such price as is determined by the Committee, which
shall in no event be less than: (i) in the case of Incentive Stock Options, the fair market value of such Shares on the date
the Option is granted; or (ii) in the case of Non-

Statutory Stock Options, one-hundred percent (100%) of such fair market
value; provided that, in the case of any Optionee owning stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the exercise
price shall be one hundred ten percent (110%) of fair market value on the date the Option is granted.  Fair market value
of the Common Stock shall be determined by the Committee based upon either of the following: (i) a valuation method
that the Board has determined to be reasonable and that takes into account all available information applicable to the
value of the Company, including the following factors as applicable: value of tangible and intangible assets of the
Company, present value of future cash flows, the market value of stock and equity interests in similar corporations and
entities engaged in similar businesses in which public and private securities transactions have occurred recently,
transactions in the Company's stock, control premiums and marketability discounts, or (ii) based on the consistent use of
any of the valuation methods provided in Treasury Regulation Section 1.409A that create a presumption of
reasonableness.  However, that if there is a public market for the Common Stock, the fair market value per Share shall
be the average of the last reported bid and asked prices of the Common Stock on the date of grant, as reported in The
Wall Street Journal (or, if not so reported, as otherwise reported by the National Association of Securities Dealers
Automated Quotation (NASDAQ) System) or, in the event the Common Stock is listed on a national securities exchange
(within the meaning of Section 6 of the Exchange Act) or on the NASDAQ National Market System (or any successor
national market system), the fair market value per Share shall be the closing price on such exchange on the date of
grant of the Option, as reported in The Wall Street Journal.

	Ten Percent Stockholders.  No Incentive Stock Option shall be granted to any
Employee who, at the date such Option is granted, owns (within the meaning of Section 424(d) of the Code) more than
ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary,
unless the exercise price for the Shares to be issued pursuant to such Option is at least equal to one hundred ten
percent (110%) of the fair market value of such Shares on the grant date determined by the Committee in the manner
set forth in subsection (a) above.

	Section 162(m) Limitations.  After the Section 162(m) Effective Date, the Option
Price of any Option granted to a Covered Employee shall be at least equal to the fair market value of the Shares as of
the date of grant as determined in the manner set forth in subsection (a) above.

	Consideration.  The consideration to be paid for the Optioned Shares shall be
payment in cash or by check unless payment in some other manner, including by promissory note, other shares of the
Company's Common Stock or such other consideration and method of payment for the issuance of Optioned Shares as
may be permitted under the California General Corporation Law is authorized by the Committee at the time of the grant
of the Option.  Any cash or other property received by the Company from the sale of Shares pursuant to the Plan shall
constitute part of the general assets of the Company.

	Exercise of Option.

	Vesting Period.  Any Option granted hereunder shall be exercisable at such times
and under such conditions as determined by the Committee and as shall be permissible under the terms of the Plan,
which shall be specified in the Option Agreement evidencing the Option.  Options granted under the Plan shall vest at a
rate of at least twenty percent (20%) per year.

	Exercise Procedures.  An Option shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the terms of the option agreement
evidencing the Option, and full payment for the Shares with respect to which the Option is exercised has been received
by the Company.  After the Registration Date, in lieu of delivery of a cash payment for the purchase price of the Shares
with respect to which the Option is exercised, the Optionee may deliver to the Company a sell order to a broker for the
Shares being purchased and an agreement to pay (or have the broker remit payment for) the purchase price for the
Shares being purchased on or before the settlement date for the sale of such shares to the broker.

Pursuant to the terms of the Option Agreement, the Committee may, but is not obligated to
require that any Option may be exercised only upon the execution of a Stock Restriction Agreement which gives the
Company a right to repurchase the Option Shares at their then current fair market value, as determined by the
Committee, or at their original exercise price, whichever is greater.  The Stock Restriction Agreement shall contain such
other provisions as the Committee may approve in its sole discretion.

An Option may not be exercised for fractional shares.  As soon as practicable following the
exercise of an Option in the manner set forth above, the Company shall issue or cause its transfer agent to issue stock
certificates representing the Shares purchased.  Until the issuance of such stock certificates (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote
or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Shares notwithstanding
the exercise of the Option.  No adjustment will be made for a dividend or other rights for which the record date is prior to
the date of the transfer by the Optionee of the consideration for the purchase of the Shares, except as provided in
Section 11 of the Plan.  After the Registration Date, the exercise of an Option by any person subject to short-swing
trading liability under Section 16(b) of the Exchange Act shall be subject to compliance with all applicable requirements
of Rule 16b-3 promulgated under the Exchange Act.

	Death of Optionee.  In the event of the death during the Option period of an
Optionee who is at the time of his death, or was within the ninety (90) day period immediately prior thereto, an Employee
or Non-Employee Director, and who was in Continuous Employment as such from the date of the grant of the Option
until the date of termination or death, this Option may be exercised, at any time within one (1) year following the date of
death, by the Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance,
but only to the extent of the accrued right to exercise at the time of the termination or death, whichever comes first,
subject to the condition that no Option shall be exercised after the expiration of the Option period.

	Disability of Optionee.  In the event of the permanent and total disability during the
Option period of an Optionee who is at the time of such disability, or was within the ninety

(90) day period prior thereto, an Employee or Non-Employee Director, and who was in Continuous Employment as such from the date of the grant of
the Option until the date of disability or termination, the Option may be exercised at any time within one (1) year
following the date of such permanent and total disability, but only to the extent of the accrued right to exercise at the time
of the termination or disability, whichever comes first, subject to the condition that no Option shall be exercised after the
expiration of the Option period.

	Termination of Status as Employee, Non-Employee Director or Consultant.  If an
Optionee shall cease to be an Employee or Non-Employee Director for any reason other than permanent and total
disability or death, or if an Optionee shall cease to be a Consultant for any reason, the Optionee may, but only within
thirty (30) days (or such other period of time as is determined by the Committee) after the date he or she ceases to be
an Employee or Non-Employee Director, or Consultant, exercise his or her Option to the extent that he or she was
entitled to exercise it at the date of such termination, subject to the condition that no Option shall be exercisable after the
expiration of the Option period.

	Changes in Status.  Notwithstanding Section 9(e) above, if an Optionee's
relationship with the Company changes from an Employee to a Consultant or Non-Employee Director (a "Change
in Status"), all outstanding and unexercised Incentive Stock Options currently held by Optionee shall automatically
convert to Non-Statutory Stock Options and shall remain and become exercisable in accordance with the terms and
conditions of the Incentive Stock Option Agreement.  In addition, if an Optionee's relationship with Company changes
from an Employee to a Consultant or Non-Employee Director, or from a Consultant or Non-Employee Director to an
Employee (also a "Change in Status"), all outstanding and unexercised Non-Statutory Options currently held
by such Optionee shall remain and become exercisable in accordance with the terms and conditions of the Non-
Statutory Stock Option Agreement.  A Change in Status shall not constitute a termination of employment for purposes of
Section 9(e) above.

	Exercise of Option with Stock After Registration Date.  After the Registration Date,
the Committee may permit an Optionee to exercise an Option by delivering shares of the Company's Common Stock.  If
the Optionee is so permitted, the option agreement covering such Option may include provisions authorizing the
Optionee to exercise the Option, in whole or in part, by: (i) delivering whole shares of the Company's Common Stock
previously owned by such Optionee (whether or not acquired through the prior exercise of a stock option) having a fair
market value equal to the aggregate exercise price for the Optioned Shares issuable on exercise of the Option; and/or
(ii) directing the Company to withhold from the Shares that would otherwise be issued upon exercise of the Option that
number of whole Shares having a fair market value equal to the aggregate exercise price for the Optioned Shares
issuable on exercise of the Option.  Shares of the Company's Common Stock so delivered or withheld shall be valued at
their fair market value at the close of the last business day immediately preceding the date of exercise of the Option, as
determined by the Committee, in accordance with the provisions of Section 8(a) of the Plan.  Any balance of the
exercise price shall be paid in cash.  Any shares delivered or withheld in accordance with this provision shall not again
become available for purposes of the Plan and for Options subsequently granted thereunder.

	Tax Withholding.  After the Registration Date, when an Optionee is required to pay
to the Company an amount with respect to tax withholding obligations in connection with the exercise of an Option
granted under the Plan, the Optionee may elect prior to the date the amount of such withholding tax is determined (the
"Tax Date") to make such payment, or such increased payment as the Optionee elects to make up to the
maximum federal, state and local marginal tax rates, including any related FICA obligation, applicable to the Optionee
and the particular transaction, by: (i) delivering cash; (ii) delivering part or all of the payment in previously owned shares
of Common Stock (whether or not acquired through the prior exercise of an Option); and/or (iii) irrevocably directing the
Company to withhold from the Shares that would otherwise be issued upon exercise of the Option that number of whole
Shares having a fair market value equal to the amount of tax required or elected to be withheld (a "Withholding
Election").  If an Optionee's Tax Date is deferred beyond the date of exercise and the Optionee makes a
Withholding Election, the Optionee will initially receive the full amount of Optioned Shares otherwise issuable upon
exercise of the Option, but will be unconditionally obligated to surrender to the Company on the Tax Date the number of
Shares necessary to satisfy his or her minimum withholding requirements, or such higher payment as he or she may
have elected to make, with adjustments to be made in cash after the Tax Date.

Any withholding of Optioned Shares with respect to taxes arising in connection with the exercise
of an Option by any person subject to short-swing trading liability under Section 16(b) of the Exchange Act shall satisfy
the requirements of Section 16b-3(e).

Any adverse consequences incurred by an Optionee with respect to the use of shares of
Common Stock to pay any part of the exercise price or of any tax in connection with the exercise of an Option, including
without limitation any adverse tax consequences arising as a result of a disqualifying disposition within the meaning of
Section 422 of the Code shall be the sole responsibility of the Optionee.  Shares withheld in accordance with this
provision shall not again become available for purposes of the Plan and for Options subsequently granted
thereunder.

	Non-Transferability of Options.  An Option may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent and distribution and
may be exercised, during the lifetime of the Optionee, only by the Optionee.

	Adjustments Upon Changes in Capitalization.  Subject to any required action by
the stockholders of the Company, the number of Optioned Shares covered by each outstanding Option, and the per
share exercise price of each such Option, shall be proportionately adjusted for any increase or decrease in the number
of issued shares of Common Stock resulting from a stock split, reverse stock split, recapitalization, combination,
reclassification, the payment of a stock dividend on the Common Stock or any other increase or decrease in the number
of such shares of Common Stock effected without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to have been "effected without
receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive.  Except as expressly provided herein, no issue by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof

shall be made with respect to, the number or price of shares of Common Stock subject to an Option.

The Committee may, if it so determines in the exercise of its sole discretion, also make provision
for adjusting the number or class of securities covered by any Option, as well as the price to be paid therefor, in the
event that the Company effects one or more reorganizations, recapitalizations, rights offerings, or other increases or
reductions of shares of its outstanding Common Stock, and in the event of the Company being consolidated with or
merged into any other corporation.

Unless otherwise determined by the Board, upon the dissolution or liquidation of the Company
the Options granted under the Plan shall terminate and thereupon become null and void.  The Optionee shall be given
not less than ten (10) days' notice of such event and the opportunity to exercise each outstanding Option before such
event is effected.

Upon any merger or consolidation, if the Company is not the surviving corporation, the Options
granted under the Plan shall either be assumed by the new entity or shall terminate in accordance with the provisions of
the preceding paragraph.  In the event that the surviving corporation refuses to assume or substitute for the Options
granted under the Plan, each Optionee shall fully vest in and have the right to exercise the Option granted as to 100% of
the Optioned Shares, including Options as to which such person would not otherwise have the right to vest or exercise,
upon the effective date of the event constituting a merger or consolidation.  If an Option becomes fully vested and
exercisable in lieu of assumption or substitution thereof in the event of occurrence of a merger or consolidation, the
Committee shall notify the Optionee in writing or electronically that the Option shall be fully exercisable for a period of
fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period.  For the
purposes of this paragraph, the Option shall be considered assumed if, following a merger or consolidation, the
replacement option or right confers the right to purchase or receive, for each share of Optioned Shares immediately prior
to the merger or consolidation, the consideration (whether stock, cash, or other securities or property) received in the
merger or consolidation by holders of Common Stock for each Share held on the effective date of the 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); provided, however, that if the consideration received in the merger or consolidation is not solely
common stock of the surviving corporation or its Parent, the Committee may, with the consent of the surviving
corporation, provide for the consideration to be received upon the exercise of the Option to be solely common stock of
the surviving corporation or its Parent equal in fair market value to the per share consideration received by holders of
Common Stock in the merger or consolidation.  A merger or consolidation shall not cause the acceleration of vesting of
Options except to the extent provided under the Plan and in an Option Agreement or other written contract between the
Company and an Optionee.

	Time of Granting Options.  Unless otherwise specified by the Committee, the date
of grant of an Option under the Plan shall be the date on which the Committee makes the determination granting such
Option.  Notice of the determination shall be given to each Optionee to whom an Option is so granted within a
reasonable time after the date of such grant.

	Amendment and Termination of the Plan.  The Board may amend or terminate the
Plan from time to time in such respects as the Board may deem advisable, except that, without approval of the holders
of a majority of the outstanding capital stock no such revision or amendment shall change the number of Shares subject
to the Plan, change the designation of the class of employees eligible to receive Options or add any material benefit to
Optionees under the Plan.  Any such amendment or termination of the Plan shall not affect Options already granted, and
such Options shall remain in full force and effect as if the Plan had not been amended or terminated.  After the Section
162(m) Effective Date, the modification or addition of a material term of the Plan (as determined under Section 162(m)
and any applicable Treasury Regulations promulgated thereunder) shall be approved by the stockholders in the manner
provided in Section 19 of the Plan.

	Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to
an Option granted under the Plan unless the exercise of such Option and the issuance and delivery of such Shares
pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act, the
Exchange Act, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon
which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with
respect to such compliance.  As a condition to the exercise of an Option, the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the
Company, such a representation is required by any of the aforementioned relevant provisions of law.

	Reservation of Shares.  During the term of this Plan the Company will at all times
reserve and keep available the number of Shares as shall be sufficient to satisfy the requirements of the Plan.  Inability
of the Company to obtain from any regulatory body having jurisdiction and authority deemed by the Company's counsel
to be necessary to the lawful issuance and sale of any Shares hereunder shall relieve the Company of any liability in
respect of the nonissuance or sale of such Shares as to which such requisite authority shall not have been
obtained.

	Information to Optionee.  During the term of any Option granted under the Plan, the
Company shall provide or otherwise make available to each Optionee a copy of such financial statements as it generally
provides to its stockholders, at least annually.

	Option Agreement.  Options granted under the Plan shall be evidenced by Option
Agreements.

	Indemnification of Board (or Committee, if applicable).  In addition to such other
rights of indemnification as they may have as directors or as members of the Committee, the members of the Board (or
the Committee, if applicable) shall be indemnified by the Company against the reasonable expenses, including
attorneys, fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in
connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure
to act under or in connection with the Plan or any Option granted thereunder, and against all amounts paid by them in
settlement thereof (provided such settlement is approved by

independent legal counsel selected by the Company) or
paid by them in satisfaction of a judgment in any such action, suit or proceeding except in relation to matters as of which
it shall be adjudged in such action, suit or proceeding that such Board (or Committee, if applicable) member is liable for
negligence or misconduct in the performance of his duties; provided that within sixty days after institution of any such
action, suit or proceeding a Board (or Committee, if applicable) member shall in writing offer the Company the
opportunity, at its own expense, to handle and defend the same.

	Stockholder Approval.  The Plan shall be subject to approval by the affirmative vote
of the holders of a majority of the outstanding capital stock of the Company entitled to vote within twelve (12) months
before or after the Plan is adopted.  Any Option exercised before stockholder approval is obtained must be rescinded if
stockholder approval is not obtained within twelve (12) months before or after the Plan is adopted.  Shares issued upon
the exercise of such Options shall not be counted in determining whether such approval is obtained.  Any amendments
to the Plan which require stockholder approval shall be by the affirmative vote of the holders of a majority of the
outstanding capital stock of the Company entitled to vote.

Adopted by the Board of Directors and ratified by the Stockholders on September 24, 2003.
Amended by the Board of Directors and ratified by the Stockholders on November 5, 2004.

Amended by the Board of Directors and ratified by the Stockholders on May 16, 2006 and June
30, 2006.

Amended by the Board of Directors on December 19, 2006 and ratified by the Stockholders on
January 22, 2007.

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