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Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT (this “Agreement”),
      dated
      as of November 6, 2006, by and among Igia, Inc., a Delaware corporation with
      its
      headquarters located at 16 East 40th
      Street,
      12th
      Floor,
      New York, NY 10016 (the “Company”),
      and
      each of the undersigned (together with their respective affiliates and any
      assignee or transferee of all of their respective rights hereunder, the
“Initial
      Investors”).
      

     

    WHEREAS:

     

    A.  In
      connection with the Securities Purchase Agreement by and among the parties
      hereto of even date herewith (the “Securities Purchase Agreement”), the Company
      has agreed, upon the terms and subject to the conditions contained therein,
      to
      issue and sell to the Initial Investors (i) secured
      convertible notes in the aggregate principal amount of up to Five Hundred
      Thousand Dollars ($500,000) (the “Notes”) that are convertible into shares of
      the Company’s common stock (the “Common Stock”), upon the terms and subject to
      the limitations and conditions set forth in such Notes and (ii) warrants
      (the “Warrants”) to acquire an aggregate of 50,000,000 shares of Common Stock,
      upon the terms and conditions and subject to the limitations and conditions
      set
      forth in the Warrants; and

     

    B.  To
      induce
      the Initial Investors to execute and deliver the Securities Purchase Agreement,
      the Company has agreed to provide certain registration rights under the
      Securities Act of 1933, as amended, and the rules and regulations thereunder,
      or
      any similar successor statute (collectively, the “1933
      Act”),
      and
      applicable state securities laws;

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and each of the Initial Investors hereby agree
      as follows:

     

    1.  DEFINITIONS.

     

    a.  As
      used
      in this Agreement, the following terms shall have the following
      meanings:

     

    (i)  “Investors”
means
      the Initial Investors and any transferee or assignee who agrees to become bound
      by the provisions of this Agreement in accordance with Section 9
      hereof.

     

    (ii)  “register,”
      “registered,”
and
      “registration”
refer
      to a registration effected by preparing and filing a Registration Statement
      or
      Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
      1933 Act or any successor rule providing for offering securities on a continuous
      basis (“Rule
      415”),
      and
      the declaration or ordering of effectiveness of such Registration Statement
      by
      the United States Securities and Exchange Commission (the “SEC”).

     

    (iii)  “Registrable
      Securities”
means
      the Conversion Shares issued or issuable upon conversion or otherwise pursuant
      to the Notes including, without limitation, Damages Shares (as defined in the
      Notes) issued or issuable pursuant to the Notes, shares of Common Stock issued
      or issuable in payment of the Standard Liquidated Damages Amount (as defined
      in
      the Securities Purchase Agreement), shares issued or issuable in respect of
      interest or in redemption of the Notes in accordance with the terms thereof)
      and
      any shares of capital stock issued or issuable as a dividend on or in exchange
      for or otherwise with respect to any of the foregoing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv)  “Registration
      Statement”
means
      a
      registration statement of the Company under the 1933 Act.

     

    b.  Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement or the Convertible
      Note.

     

    2.  REGISTRATION.

     

    a.  Mandatory
      Registration.
      The
      Company shall prepare, and, on or prior to thirty (30) days from the date of
      receipt of written demand (the “Investor
      Demand”)
      of the
      Investors, subject to obtaining Stockholder Approval (as defined in the
      Securities Purchase Agreement) if necessary (the “Filing
      Date”),
      file
      with the SEC a Registration Statement on Form S-3 (or, if Form S-3 is not then
      available, on such form of Registration Statement as is then available to effect
      a registration of the Registrable Securities, subject to the consent of the
      Initial Investors, which consent will not be unreasonably withheld) covering
      the
      resale of the Registrable Securities underlying the Notes issued or issuable
      pursuant to the Securities Purchase Agreement, which Registration Statement,
      to
      the extent allowable under the 1933 Act and the rules and regulations
      promulgated thereunder (including Rule 416), shall state that such Registration
      Statement also covers such indeterminate number of additional shares of Common
      Stock as may become issuable upon conversion of or otherwise pursuant to the
      Notes to prevent dilution resulting from stock splits, stock dividends or
      similar transactions. The number of shares of Common Stock initially included
      in
      such Registration Statement shall be no less than an amount equal to the sum
      of
      the number of Conversion Shares that are then issuable upon conversion of the
      Notes (based on the Variable Conversion Price as would then be in effect and
      assuming the Variable Conversion Price is the Conversion Price at such time),
      without regard to any limitation on the Investor’s ability to convert the Notes.
      The Company acknowledges that the number of shares initially included in the
      Registration Statement represents a good faith estimate of the maximum number
      of
      shares issuable upon conversion of the Notes. 

     

    b.  Underwritten
      Offering.
      If any
      offering pursuant to a Registration Statement pursuant to Section 2(a) hereof
      involves an underwritten offering, the Investors who hold a majority in interest
      of the Registrable Securities subject to such underwritten offering, with the
      consent of a majority-in-interest of the Initial Investors, shall have the
      right
      to select one legal counsel and an investment banker or bankers and manager
      or
      managers to administer the offering, which investment banker or bankers or
      manager or managers shall be reasonably satisfactory to the
      Company.

     

    
      
        
        

      

      
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    c.  Payments
      by the Company.
      The
      Company shall use its best efforts to obtain effectiveness of the Registration
      Statement as soon as practicable. If (i) the
      Registration Statement(s) covering the Registrable Securities required to be
      filed by the Company pursuant to Section 2(a) hereof is not filed by the Filing
      Date or declared effective by the SEC on or prior to one hundred twenty (120)
      days from the receipt of the Investor Demand, subject to obtaining Stockholder
      Approval (as defined in the Securities Purchase Agreement) if necessary, or
(ii) after
      the Registration Statement has been declared effective by the SEC, sales of
      all
      of the Registrable Securities cannot be made pursuant to the Registration
      Statement, or (iii) the
      Common Stock is not listed or included for quotation on the Nasdaq National
      Market (“Nasdaq”),
      the
      Nasdaq SmallCap Market (“Nasdaq
      SmallCap”),
      the
      New York Stock Exchange (the “NYSE”)
      or the
      American Stock Exchange (the “AMEX”)
      after
      being so listed or included for quotation, or (iv) the
      Common Stock ceases to be traded on the Over-the-Counter Bulletin Board (the
      “OTCBB”)
      or any
      equivalent replacement exchange prior to being listed or included for quotation
      on one of the aforementioned markets, then the Company will make payments to
      the
      Investors in such amounts and at such times as shall be determined pursuant
      to
      this Section 2(c) as partial relief for the damages to the Investors by reason
      of any such delay in or reduction of their ability to sell the Registrable
      Securities (which remedy shall not be exclusive of any other remedies available
      at law or in equity). The Company shall pay to each holder of the Notes or
      Registrable Securities an amount equal to the then outstanding principal amount
      of the Notes (and, in the case of holders of Registrable Securities, the
      principal amount of Notes from which such Registrable Securities were converted)
      (“Outstanding
      Principal Amount”),
      multiplied by the Applicable Percentage (as defined below) times the sum of:
      (i)
      the number of months (prorated for partial months) after the Filing Date or
      the
      end of the aforementioned one hundred twenty (120) day period and prior to
      the
      date the Registration Statement is declared effective by the SEC, provided,
      however, that there shall be excluded from such period any delays which are
      solely attributable to changes required by the Investors in the Registration
      Statement with respect to information relating to the Investors, including,
      without limitation, changes to the plan of distribution, or to the failure
      of
      the Investors to conduct their review of the Registration Statement pursuant
      to
      Section 3(h) below in a reasonably prompt manner; (ii) the number of months
      (prorated for partial months) that sales of all of the Registrable Securities
      cannot be made pursuant to the Registration Statement after the Registration
      Statement has been declared effective (including, without limitation, when
      sales
      cannot be made by reason of the Company’s failure to properly supplement or
      amend the prospectus included therein in accordance with the terms of this
      Agreement, but excluding any days during an Allowed Delay (as defined in Section
      3(f)); and (iii) the number of months (prorated for partial months) that the
      Common Stock is not listed or included for quotation on the OTCBB, Nasdaq,
      Nasdaq SmallCap, NYSE or AMEX or that trading thereon is halted after the
      Registration Statement has been declared effective. The term “Applicable
      Percentage”
means
      two hundredths (.02). (For example, if the Registration Statement becomes
      effective one (1) month after the end of such one hundred twenty (120) day
      period, the Company would pay $5,000 for each $250,000 of Outstanding Principal
      Amount. If thereafter, sales could not be made pursuant to the Registration
      Statement for an additional period of one (1) month, the Company would pay
      an
      additional $5,000 for each $250,000 of Outstanding Principal Amount.) Such
      amounts shall be paid in cash or, at the Company’s option, in shares of Common
      Stock priced at the Conversion Price (as defined in the Notes) on such payment
      date. 

     

    
      
        
        

      

      
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    d.  Piggy-Back
      Registrations.
      Subject
      to the last sentence of this Section 2(d), if at any time prior to the
      expiration of the Registration Period (as hereinafter defined) the Company
      shall
      determine to file with the SEC a Registration Statement relating to an offering
      for its own account or the account of others under the 1933 Act of any of its
      equity securities (other than on Form S-4 or Form S-8 or their then equivalents
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other bona fide,
      employee benefit plans), the Company shall send to each Investor who is entitled
      to registration rights under this Section 2(d) written notice of such
      determination and, if within fifteen (15) days after the effective date of
      such
      notice, such Investor shall so request in writing, the Company shall include
      in
      such Registration Statement all or any part of the Registrable Securities such
      Investor requests to be registered, except that if, in connection with any
      underwritten public offering for the account of the Company the managing
      underwriter(s) thereof shall impose a limitation on the number of shares of
      Common Stock which may be included in the Registration Statement because, in
      such underwriter(s)’ judgment, marketing or other factors dictate such
      limitation is necessary to facilitate public distribution, then the Company
      shall be obligated to include in such Registration Statement only such limited
      portion of the Registrable Securities with respect to which such Investor has
      requested inclusion hereunder as the underwriter shall permit. Any exclusion
      of
      Registrable Securities shall be made pro rata among the Investors seeking to
      include Registrable Securities in proportion to the number of Registrable
      Securities sought to be included by such Investors; provided,
      however,
      that
      the Company shall not exclude any Registrable Securities unless the Company
      has
      first excluded all outstanding securities, the holders of which are not entitled
      to inclusion of such securities in such Registration Statement or are not
      entitled to pro rata inclusion with the Registrable Securities; and provided,
      further,
      however,
      that,
      after giving effect to the immediately preceding proviso, any exclusion of
      Registrable Securities shall be made pro rata with holders of other securities
      having the right to include such securities in the Registration Statement other
      than holders of securities entitled to inclusion of their securities in such
      Registration Statement by reason of demand registration rights. No right to
      registration of Registrable Securities under this Section 2(d) shall be
      construed to limit any registration required under Section 2(a) hereof. If
      an
      offering in connection with which an Investor is entitled to registration under
      this Section 2(d) is an underwritten offering, then each Investor whose
      Registrable Securities are included in such Registration Statement shall, unless
      otherwise agreed by the Company, offer and sell such Registrable Securities
      in
      an underwritten offering using the same underwriter or underwriters and, subject
      to the provisions of this Agreement, on the same terms and conditions as other
      shares of Common Stock included in such underwritten offering. Notwithstanding
      anything to the contrary set forth herein, the registration rights of the
      Investors pursuant to this Section 2(d) shall only be available in the event
      the
      Company fails to timely file, obtain effectiveness or maintain effectiveness
      of
      any Registration Statement to be filed pursuant to Section 2(a) in accordance
      with the terms of this Agreement.

     

    e.  Eligibility
      for Form S-3, SB-2 or S-1; Conversion to Form S-3.
      The
      Company represents and warrants that it meets the requirements for the use
      of
      Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors
      and
      any other Investors of the Registrable Securities. The Company agrees to file
      all reports required to be filed by the Company with the SEC in a timely manner
      so as to remain eligible or become eligible, as the case may be, and thereafter
      to maintain its eligibility, for the use of Form S-3. If the Company is not
      currently eligible to use Form S-3, not later than five (5) business days after
      the Company first meets the registration eligibility and transaction
      requirements for the use of Form S-3 (or any successor form) for registration
      of
      the offer and sale by the Initial Investors and any other Investors of
      Registrable Securities, the Company shall file a Registration Statement on
      Form
      S-3 (or such successor form) with respect to the Registrable Securities covered
      by the Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
      filed pursuant to Section 2(a) (and include in such Registration Statement
      on
      Form S-3 the information required by Rule 429 under the 1933 Act) or convert
      the
      Registration Statement on Form SB-2 or Form S-1, whichever is applicable, filed
      pursuant to Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933
      Act
      and cause such Registration Statement (or such amendment) to be declared
      effective no later than forty-five (45) days after filing. In the event of
      a
      breach by the Company of the provisions of this Section 2(e), the Company will
      be required to make payments pursuant to Section 2(c) hereof.

     

    
      
        
        

      

      
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    3.  OBLIGATIONS
      OF THE COMPANY. 

     

    In
      connection with the registration of the Registrable Securities, the Company
      shall have the following obligations:

     

    a.  The
      Company shall prepare promptly, and file with the SEC not later than the Filing
      Date, a Registration Statement with respect to the number of Registrable
      Securities provided in Section 2(a), and thereafter use its best efforts to
      cause such Registration Statement relating to Registrable Securities to become
      effective as soon as possible after such filing but in no event later than
      one
      hundred twenty (120) days from the date of the receipt of the Investor Demand),
      and keep the Registration Statement effective pursuant to Rule 415 at all times
      until such date as is the earlier of (i) the date on which all of the
      Registrable Securities have been sold and (ii) the date on which the Registrable
      Securities (in the opinion of counsel to the Initial Investors) may be
      immediately sold to the public without registration or restriction (including,
      without limitation, as to volume by each holder thereof) under the 1933 Act
      (the
“Registration
      Period”),
      which
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated therein,
      or
      necessary to make the statements therein not misleading.

     

    b.  The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statements and
      the prospectus used in connection with the Registration Statements as may be
      necessary to keep the Registration Statements effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company covered by the Registration Statements until such time as all of such
      Registrable Securities have been disposed of in accordance with the intended
      methods of disposition by the seller or sellers thereof as set forth in the
      Registration Statements. In the event the number of shares available under
      a
      Registration Statement filed pursuant to this Agreement is insufficient to
      cover
      all of the Registrable Securities issued or issuable upon conversion of the
      Notes and exercise of the Warrants, the Company shall amend the Registration
      Statement, or file a new Registration Statement (on the short form available
      therefor, if applicable), or both, so as to cover all of the Registrable
      Securities, in each case, as soon as practicable, but in any event within
      fifteen (15) days after the necessity therefor arises (based on the market
      price
      of the Common Stock and other relevant factors on which the Company reasonably
      elects to rely). The Company shall use its best efforts to cause such amendment
      and/or new Registration Statement to become effective as soon as practicable
      following the filing thereof, but in any event within thirty (30) days after
      the
      date on which the Company reasonably first determines (or reasonably should
      have
      determined) the need therefor. The provisions of Section 2(c) above shall be
      applicable with respect to such obligation, with the one hundred twenty (120)
      days running from the day the Company reasonably first determines (or reasonably
      should have determined) the need therefor.

     

    
      
        
        

      

      
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    c.  The
      Company shall furnish to each Investor whose Registrable Securities are included
      in a Registration Statement and its legal counsel (i) promptly
      (but in no event more than two (2) business days) after the same is prepared
      and
      publicly distributed, filed with the SEC, or received by the Company, one copy
      of each Registration Statement and any amendment thereto, each preliminary
      prospectus and prospectus and each amendment or supplement thereto, and, in
      the
      case of the Registration Statement referred to in Section 2(a), each letter
      written by or on behalf of the Company to the SEC or the staff of the SEC,
      and
      each item of correspondence from the SEC or the staff of the SEC, in each case
      relating to such Registration Statement (other than any portion of any thereof
      which contains information for which the Company has sought confidential
      treatment), and (ii) promptly
      (but in no event more than two (2) business days) after the Registration
      Statement is declared effective by the SEC, such number of copies of a
      prospectus, including a preliminary prospectus, and all amendments and
      supplements thereto and such other documents as such Investor may reasonably
      request in order to facilitate the disposition of the Registrable Securities
      owned by such Investor. The Company will immediately notify each Investor by
      facsimile of the effectiveness of each Registration Statement or any
      post-effective amendment. The Company will promptly (but in no event more than
      five (5) business days) respond to any and all comments received from the SEC
      (which comments shall promptly be made available to the Investors upon request),
      with a view towards causing each Registration Statement or any amendment thereto
      to be declared effective by the SEC as soon as practicable, shall promptly
      file
      an acceleration request as soon as practicable (but in no event more than two
      (2) business days) following the resolution or clearance of all SEC comments
      or,
      if applicable, following notification by the SEC that any such Registration
      Statement or any amendment thereto will not be subject to review and shall
      promptly file with the SEC a final prospectus as soon as practicable (but in
      no
      event more than two (2) business days) following receipt by the Company from
      the
      SEC of an order declaring the Registration Statement effective. In the event
      of
      a breach by the Company of the provisions of this Section 3(c), the Company
      will
      be required to make payments pursuant to Section 2(c) hereof.

     

    d.  The
      Company shall use reasonable efforts to (i) register
      and qualify the Registrable Securities covered by the Registration Statements
      under such other securities or “blue sky” laws of such jurisdictions in the
      United States as the Investors who hold a majority in interest of the
      Registrable Securities being offered reasonably request, (ii) prepare
      and file in those jurisdictions such amendments (including post-effective
      amendments) and supplements to such registrations and qualifications as may
      be
      necessary to maintain the effectiveness thereof during the Registration Period,
      (iii) take
      such other actions as may be necessary to maintain such registrations and
      qualifications in effect at all times during the Registration Period, and
(iv) take
      all other actions reasonably necessary or advisable to qualify the Registrable
      Securities for sale in such jurisdictions; provided,
      however,
      that
      the Company shall not be required in connection therewith or as a condition
      thereto to (a) qualify
      to do business in any jurisdiction where it would not otherwise be required
      to
      qualify but for this Section 3(d), (b) subject
      itself to general taxation in any such jurisdiction, (c) file
      a general consent to service of process in any such jurisdiction, (d) provide
      any undertakings that cause the Company undue expense or burden, or (e) make
      any change in its charter or bylaws, which in each case the Board of Directors
      of the Company determines to be contrary to the best interests of the Company
      and its shareholders.

     

    
      
        
        

      

      
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    e.  In
      the
      event Investors who hold a majority-in-interest of the Registrable Securities
      being offered in the offering (with the approval of a majority-in-interest
      of
      the Initial Investors) select underwriters for the offering, the Company shall
      enter into and perform its obligations under an underwriting agreement, in
      usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the underwriters of such offering.

     

    f.  As
      promptly as practicable after becoming aware of such event, the Company shall
      notify each Investor of the happening of any event, of which the Company has
      knowledge, as a result of which the prospectus included in any Registration
      Statement, as then in effect, includes an untrue statement of a material fact
      or
      omission to state a material fact required to be stated therein or necessary
      to
      make the statements therein not misleading, and use its best efforts promptly
      to
      prepare a supplement or amendment to any Registration Statement to correct
      such
      untrue statement or omission, and deliver such number of copies of such
      supplement or amendment to each Investor as such Investor may reasonably
      request; provided that, for not more than ten (10) consecutive trading days
      (or
      a total of not more than twenty (20) trading days in any twelve (12) month
      period), the Company may delay the disclosure of material non-public information
      concerning the Company (as well as prospectus or Registration Statement
      updating) the disclosure of which at the time is not, in the good faith opinion
      of the Company, in the best interests of the Company (an “Allowed
      Delay”);
      provided, further, that the Company shall promptly (i) notify
      the Investors in writing of the existence of (but in no event, without the
      prior
      written consent of an Investor, shall the Company disclose to such investor
      any
      of the facts or circumstances regarding) material non-public information giving
      rise to an Allowed Delay and (ii) advise
      the Investors in writing to cease all sales under such Registration Statement
      until the end of the Allowed Delay. Upon expiration of the Allowed Delay, the
      Company shall again be bound by the first sentence of this Section 3(f) with
      respect to the information giving rise thereto.

     

    g.  The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of any Registration Statement, and, if such
      an
      order is issued, to obtain the withdrawal of such order at the earliest possible
      moment and to notify each Investor who holds Registrable Securities being sold
      (or, in the event of an underwritten offering, the managing underwriters) of
      the
      issuance of such order and the resolution thereof.

     

    h.  The
      Company shall permit a single firm of counsel designated by the Initial
      Investors to review such Registration Statement and all amendments and
      supplements thereto (as well as all requests for acceleration or effectiveness
      thereof) a reasonable period of time prior to their filing with the SEC, and
      not
      file any document in a form to which such counsel reasonably objects and will
      not request acceleration of such Registration Statement without prior notice
      to
      such counsel. The sections of such Registration Statement covering information
      with respect to the Investors, the Investor’s beneficial ownership of securities
      of the Company or the Investors intended method of disposition of Registrable
      Securities shall conform to the information provided to the Company by each
      of
      the Investors.

     

    
      
        
        

      

      
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    i.  The
      Company shall make generally available to its security holders as soon as
      practicable, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with the provisions
      of
      Rule 158 under the 1933 Act) covering a twelve-month period beginning not later
      than the first day of the Company’s fiscal quarter next following the effective
      date of the Registration Statement.

     

    j.  At
      the
      request of any Investor, the Company shall furnish, on the date that Registrable
      Securities are delivered to an underwriter, if any, for sale in connection
      with
      any Registration Statement or, if such securities are not being sold by an
      underwriter, on the date of effectiveness thereof (i) an
      opinion, dated as of such date, from counsel representing the Company for
      purposes of such Registration Statement, in form, scope and substance as is
      customarily given in an underwritten public offering, addressed to the
      underwriters, if any, and the Investors and (ii) a
      letter, dated such date, from the Company’s independent certified public
      accountants in form and substance as is customarily given by independent
      certified public accountants to underwriters in an underwritten public offering,
      addressed to the underwriters, if any, and the Investors.

     

    k.  The
      Company shall make available for inspection by (i) any
      Investor, (ii) any
      underwriter participating in any disposition pursuant to a Registration
      Statement, (iii) one
      firm of attorneys and one firm of accountants or other agents retained by the
      Initial Investors, (iv) one
      firm of attorneys and one firm of accountants or other agents retained by all
      other Investors, and (v) one
      firm of attorneys retained by all such underwriters (collectively, the
“Inspectors”)
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company, including without limitation, records of conversions
      by other holders of convertible securities issued by the Company and the
      issuance of stock to such holders pursuant to the conversions (collectively,
      the
“Records”),
      as
      shall be reasonably deemed necessary by each Inspector to enable each Inspector
      to exercise its due diligence responsibility, and cause the Company’s officers,
      directors and employees to supply all information which any Inspector may
      reasonably request for purposes of such due diligence; provided,
      however,
      that
      each Inspector shall hold in confidence and shall not make any disclosure
      (except to an Investor) of any Record or other information which the Company
      determines in good faith to be confidential, and of which determination the
      Inspectors are so notified, unless (a) the
      disclosure of such Records is necessary to avoid or correct a misstatement
      or
      omission in any Registration Statement, (b) the
      release of such Records is ordered pursuant to a subpoena or other order from
      a
      court or government body of competent jurisdiction, or (c) the
      information in such Records has been made generally available to the public
      other than by disclosure in violation of this or any other agreement. The
      Company shall not be required to disclose any confidential information in such
      Records to any Inspector until and unless such Inspector shall have entered
      into
      confidentiality agreements (in form and substance satisfactory to the Company)
      with the Company with respect thereto, substantially in the form of this Section
      3(k). Each Investor agrees that it shall, upon learning that disclosure of
      such
      Records is sought in or by a court or governmental body of competent
      jurisdiction or through other means, give prompt notice to the Company and
      allow
      the Company, at its expense, to undertake appropriate action to prevent
      disclosure of, or to obtain a protective order for, the Records deemed
      confidential. Nothing herein (or in any other confidentiality agreement between
      the Company and any Investor) shall be deemed to limit the Investor’s ability to
      sell Registrable Securities in a manner which is otherwise consistent with
      applicable laws and regulations. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    l.  The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure
      of such information is necessary to comply with federal or state securities
      laws, (ii) the
      disclosure of such information is necessary to avoid or correct a misstatement
      or omission in any Registration Statement, (iii) the
      release of such information is ordered pursuant to a subpoena or other order
      from a court or governmental body of competent jurisdiction, or (iv) such
      information has been made generally available to the public other than by
      disclosure in violation of this or any other agreement. The Company agrees
      that
      it shall, upon learning that disclosure of such information concerning an
      Investor is sought in or by a court or governmental body of competent
      jurisdiction or through other means, give prompt notice to such Investor prior
      to making such disclosure, and allow the Investor, at its expense, to undertake
      appropriate action to prevent disclosure of, or to obtain a protective order
      for, such information.

     

    m.  The
      Company shall (i) cause
      all the Registrable Securities covered by the Registration Statement to be
      listed on each national securities exchange on which securities of the same
      class or series issued by the Company are then listed, if any, if the listing
      of
      such Registrable Securities is then permitted under the rules of such exchange,
      or (ii) to
      the extent the securities of the same class or series are not then listed on
      a
      national securities exchange, secure the designation and quotation, of all
      the
      Registrable Securities covered by the Registration Statement on Nasdaq or,
      if
      not eligible for Nasdaq, on Nasdaq SmallCap or, if not eligible for Nasdaq
      or
      Nasdaq SmallCap, on the OTCBB and, without limiting the generality of the
      foregoing, to arrange for at least two market makers to register with the
      National Association of Securities Dealers, Inc. (“NASD”)
      as
      such with respect to such Registrable Securities.

     

    n.  The
      Company shall provide a transfer agent and registrar, which may be a single
      entity, for the Registrable Securities not later than the effective date of
      the
      Registration Statement.

     

    o.  The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and the managing underwriter or underwriters, if any, to facilitate
      the
      timely preparation and delivery of certificates (not bearing any restrictive
      legends) representing Registrable Securities to be offered pursuant to a
      Registration Statement and enable such certificates to be in such denominations
      or amounts, as the case may be, as the managing underwriter or underwriters,
      if
      any, or the Investors may reasonably request and registered in such names as
      the
      managing underwriter or underwriters, if any, or the Investors may request,
      and,
      within three (3) business days after a Registration Statement which includes
      Registrable Securities is ordered effective by the SEC, the Company shall
      deliver, and shall cause legal counsel selected by the Company to deliver,
      to
      the transfer agent for the Registrable Securities (with copies to the Investors
      whose Registrable Securities are included in such Registration Statement) an
      instruction in the form attached hereto as Exhibit
      1
      and an
      opinion of such counsel in the form attached hereto as Exhibit 2.

     

    p.  At
      the
      request of the holders of a majority-in-interest of the Registrable Securities,
      the Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      any
      prospectus used in connection with the Registration Statement as may be
      necessary in order to change the plan of distribution set forth in such
      Registration Statement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    q.  From
      and
      after the date of this Agreement, the Company shall not, and shall not agree
      to,
      allow the holders of any securities of the Company to include any of their
      securities in any Registration Statement under Section 2(a) hereof or any
      amendment or supplement thereto under Section 3(b) hereof without the consent
      of
      the holders of a majority-in-interest of the Registrable
      Securities.

     

    r.  The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investors of Registrable Securities pursuant
      to a
      Registration Statement.

     

    4.  OBLIGATIONS
      OF THE INVESTORS.

     

    In
      connection with the registration of the Registrable Securities, the Investors
      shall have the following obligations:

     

    a.  It
      shall
      be a condition precedent to the obligations of the Company to complete the
      registration pursuant to this Agreement with respect to the Registrable
      Securities of a particular Investor that such Investor shall furnish to the
      Company such information regarding itself, the Registrable Securities held
      by it
      and the intended method of disposition of the Registrable Securities held by
      it
      as shall be reasonably required to effect the registration of such Registrable
      Securities and shall execute such documents in connection with such registration
      as the Company may reasonably request. At least three (3) business days prior
      to
      the first anticipated filing date of the Registration Statement, the Company
      shall notify each Investor of the information the Company requires from each
      such Investor. 

     

    b.  Each
      Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of the Registration Statements hereunder, unless
      such Investor has notified the Company in writing of such Investor’s election to
      exclude all of such Investor’s Registrable Securities from the Registration
      Statements.

     

    c.  In
      the
      event Investors holding a majority-in-interest of the Registrable Securities
      being registered (with the approval of the Initial Investors) determine to
      engage the services of an underwriter, each Investor agrees to enter into and
      perform such Investor’s obligations under an underwriting agreement, in usual
      and customary form, including, without limitation, customary indemnification
      and
      contribution obligations, with the managing underwriter of such offering and
      take such other actions as are reasonably required in order to expedite or
      facilitate the disposition of the Registrable Securities, unless such Investor
      has notified the Company in writing of such Investor’s election to exclude all
      of such Investor’s Registrable Securities from such Registration
      Statement.

     

    d.  Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(f) or 3(g), such
      Investor will immediately discontinue disposition of Registrable Securities
      pursuant to the Registration Statement covering such Registrable Securities
      until such Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(f) or 3(g) and, if so directed by the
      Company, such Investor shall deliver to the Company (at the expense of the
      Company) or destroy (and deliver to the Company a certificate of destruction)
      all copies in such Investor’s possession, of the prospectus covering such
      Registrable Securities current at the time of receipt of such
      notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    e.  No
      Investor may participate in any underwritten registration hereunder unless
      such
      Investor (i) agrees
      to sell such Investor’s Registrable Securities on the basis provided in any
      underwriting arrangements in usual and customary form entered into by the
      Company, (ii) completes
      and executes all questionnaires, powers of attorney, indemnities, underwriting
      agreements and other documents reasonably required under the terms of such
      underwriting arrangements, and (iii) agrees
      to pay its pro rata share of all underwriting discounts and commissions and
      any
      expenses in excess of those payable by the Company pursuant to Section 5
      below.

     

    5.  EXPENSES
      OF REGISTRATION.

     

    All
      reasonable expenses, other than underwriting discounts and commissions, incurred
      in connection with registrations, filings or qualifications pursuant to Sections
      2 and 3, including, without limitation, all registration, listing and
      qualification fees, printers and accounting fees, the fees and disbursements
      of
      counsel for the Company, and the reasonable fees and disbursements of one
      counsel selected by the Initial Investors pursuant to Sections 2(b) and 3(h)
      hereof shall be borne by the Company.

     

    6.  INDEMNIFICATION.
      

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

     

    a.  To
      the
      extent permitted by law, the Company will indemnify, hold harmless and defend
      (i) each
      Investor who holds such Registrable Securities, (ii) the
      directors, officers, partners, employees, agents and each person who controls
      any Investor within the meaning of the 1933 Act or the Securities Exchange
      Act
      of 1934, as amended (the “1934
      Act”),
      if
      any, (iii) any
      underwriter (as defined in the 1933 Act) for the Investors, and (iv) the
      directors, officers, partners, employees and each person who controls any such
      underwriter within the meaning of the 1933 Act or the 1934 Act, if any (each,
      an
“Indemnified
      Person”),
      against any joint or several losses, claims, damages, liabilities or expenses
      (collectively, together with actions, proceedings or inquiries by any regulatory
      or self-regulatory organization, whether commenced or threatened, in respect
      thereof, “Claims”)
      to
      which any of them may become subject insofar as such Claims arise out of or
      are
      based upon: (i) any untrue statement or alleged untrue statement of a material
      fact in a Registration Statement or the omission or alleged omission to state
      therein a material fact required to be stated or necessary to make the
      statements therein not misleading; (ii) any untrue statement or alleged untrue
      statement of a material fact contained in any preliminary prospectus if used
      prior to the effective date of such Registration Statement, or contained in
      the
      final prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading; or (iii) any violation or alleged violation by the Company
      of the 1933 Act, the 1934 Act, any other law, including, without limitation,
      any
      state securities law, or any rule or regulation thereunder relating to the
      offer
      or sale of the Registrable Securities (the matters in the foregoing clauses
      (i)
      through (iii) being, collectively, “Violations”).
      Subject to the restrictions set forth in Section 6(c) with respect to the number
      of legal counsel, the Company shall reimburse the Indemnified Person, promptly
      as such expenses are incurred and are due and payable, for any reasonable legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (i) shall not apply to a Claim arising out of or based upon a
      Violation which occurs in reliance upon and in conformity with information
      furnished in writing to the Company by any Indemnified Person or underwriter
      for
      such Indemnified Person expressly for use in connection with the preparation
      of
      such Registration Statement or any such amendment thereof or supplement thereto,
      if such prospectus was timely made available by the Company pursuant to Section
      3(c) hereof; (ii) shall not apply to amounts paid in settlement of any Claim
      if
      such settlement is effected without the prior written consent of the Company,
      which consent shall not be unreasonably withheld; and (iii) with respect to
      any
      preliminary prospectus, shall not inure to the benefit of any Indemnified Person
      if the untrue statement or omission of material fact contained in the
      preliminary prospectus was corrected on a timely basis in the prospectus, as
      then amended or supplemented, such corrected prospectus was timely made
      available by the Company pursuant to Section 3(c) hereof, and the Indemnified
      Person was promptly advised in writing not to use the incorrect prospectus
      prior
      to the use giving rise to a Violation and such Indemnified Person,
      notwithstanding such advice, used it. Such indemnity shall remain in full force
      and effect regardless of any investigation made by or on behalf of the
      Indemnified Person and shall survive the transfer of the Registrable Securities
      by the Investors pursuant to Section 9.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    b.  In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees severally and not jointly to indemnify,
      hold harmless and defend, to the same extent and in the same manner set forth
      in
      Section 6(a), the Company, each of its directors, each of its officers who
      signs
      the Registration Statement, each person, if any, who controls the Company within
      the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
      shareholder selling securities pursuant to the Registration Statement or any
      of
      its directors or officers or any person who controls such shareholder or
      underwriter within the meaning of the 1933 Act or the 1934 Act (collectively
      and
      together with an Indemnified Person, an “Indemnified
      Party”),
      against any Claim to which any of them may become subject, under the 1933 Act,
      the 1934 Act or otherwise, insofar as such Claim arises out of or is based
      upon
      any Violation by such Investor, in each case to the extent (and only to the
      extent) that such Violation occurs in reliance upon and in conformity with
      written information furnished to the Company by such Investor expressly for
      use
      in connection with such Registration Statement; and subject to Section 6(c)
      such
      Investor will reimburse any legal or other expenses (promptly as such expenses
      are incurred and are due and payable) reasonably incurred by them in connection
      with investigating or defending any such Claim; provided,
      however,
      that
      the indemnity agreement contained in this Section 6(b) shall not apply to
      amounts paid in settlement of any Claim if such settlement is effected without
      the prior written consent of such Investor, which consent shall not be
      unreasonably withheld; provided,
      further,
      however,
      that
      the Investor shall be liable under this Agreement (including this Section 6(b)
      and Section 7) for only that amount as does not exceed the net proceeds to
      such
      Investor as a result of the sale of Registrable Securities pursuant to such
      Registration Statement. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Indemnified Party
      and shall survive the transfer of the Registrable Securities by the Investors
      pursuant to Section 9. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(b) with
      respect to any preliminary prospectus shall not inure to the benefit of any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus was corrected on a timely basis in the prospectus,
      as then amended or supplemented.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    c.  Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action (including any governmental action),
      such Indemnified Person or Indemnified Party shall, if a Claim in respect
      thereof is to be made against any indemnifying party under this Section 6,
      deliver to the indemnifying party a written notice of the commencement thereof,
      and the indemnifying party shall have the right to participate in, and, to
      the
      extent the indemnifying party so desires, jointly with any other indemnifying
      party similarly noticed, to assume control of the defense thereof with counsel
      mutually satisfactory to the indemnifying party and the Indemnified Person
      or
      the Indemnified Party, as the case may be; provided,
      however,
      that an
      Indemnified Person or Indemnified Party shall have the right to retain its
      own
      counsel with the fees and expenses to be paid by the indemnifying party, if,
      in
      the reasonable opinion of counsel retained by the indemnifying party, the
      representation by such counsel of the Indemnified Person or Indemnified Party
      and the indemnifying party would be inappropriate due to actual or potential
      differing interests between such Indemnified Person or Indemnified Party and
      any
      other party represented by such counsel in such proceeding. The indemnifying
      party shall pay for only one separate legal counsel for the Indemnified Persons
      or the Indemnified Parties, as applicable, and such legal counsel shall be
      selected by Investors holding a majority-in-interest of the Registrable
      Securities included in the Registration Statement to which the Claim relates
      (with the approval of a majority-in-interest of the Initial Investors), if
      the
      Investors are entitled to indemnification hereunder, or the Company, if the
      Company is entitled to indemnification hereunder, as applicable. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is actually prejudiced in
      its
      ability to defend such action. The indemnification required by this Section
      6
      shall be made by periodic payments of the amount thereof during the course
      of
      the investigation or defense, as such expense, loss, damage or liability is
      incurred and is due and payable.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    7.  CONTRIBUTION.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided,
      however,
      that
(i) no
      contribution shall be made under circumstances where the maker would not have
      been liable for indemnification under the fault standards set forth in Section
      6, (ii) no
      seller of Registrable Securities guilty of fraudulent misrepresentation (within
      the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from any seller of Registrable Securities who was not guilty of such fraudulent
      misrepresentation, and (iii)contribution
      (together with any indemnification or other obligations under this Agreement)
      by
      any seller of Registrable Securities shall be limited in amount to the net
      amount of proceeds received by such seller from the sale of such Registrable
      Securities.

     

    8.  REPORTS
      UNDER THE 1934 ACT.

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the investors to sell securities of the Company to the public
      without registration (“Rule
      144”),
      the
      Company agrees to:

     

    a.  make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

     

    b.  file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the 1933 Act and the 1934 Act so long as the Company remains
      subject to such requirements (it being understood that nothing herein shall
      limit the Company’s obligations under Section 4(c) of the Securities Purchase
      Agreement) and the filing of such reports and other documents is required for
      the applicable provisions of Rule 144; and

     

    c.  furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a
      written statement by the Company that it has complied with the reporting
      requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a
      copy of the most recent annual or quarterly report of the Company and such
      other
      reports and documents so filed by the Company, and (iii) such
      other information as may be reasonably requested to permit the Investors to
      sell
      such securities pursuant to Rule 144 without registration.

     

    9.  ASSIGNMENT
      OF REGISTRATION RIGHTS.

     

    The
      rights under this Agreement shall be automatically assignable by the Investors
      to any transferee of all or any portion of Registrable Securities if:
      (i) the Investor agrees in writing with the transferee or assignee to
      assign such rights, and a copy of such agreement is furnished to the Company
      within a reasonable time after such assignment, (ii) the Company is, within
      a reasonable time after such transfer or assignment, furnished with written
      notice of (a) the
      name and address of such transferee or assignee, and (b) the
      securities with respect to which such registration rights are being transferred
      or assigned, (iii) following such transfer or assignment, the further
      disposition of such securities by the transferee or assignee is restricted
      under
      the 1933 Act and applicable state securities laws, (iv) at or before the time
      the Company receives the written notice contemplated by clause (ii) of this
      sentence, the transferee or assignee agrees in writing with the Company to
      be
      bound by all of the provisions contained herein, (v) such transfer shall have
      been made in accordance with the applicable requirements of the Securities
      Purchase Agreement, and (vi) such transferee shall be an “accredited
      investor”
as
      that
      term defined in Rule 501 of Regulation D promulgated under the 1933
      Act.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    10.  AMENDMENT
      OF REGISTRATION RIGHTS. 

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with written consent of the Company, each of the Initial
      Investors (to the extent such Initial Investor still owns Registrable
      Securities) and Investors who hold a majority interest of the Registrable
      Securities. Any amendment or waiver effected in accordance with this Section
      10
      shall be binding upon each Investor and the Company.

     

    11.  MISCELLANEOUS.

     

    a.  A
      person
      or entity is deemed to be a holder of Registrable Securities whenever such
      person or entity owns of record such Registrable Securities. If the Company
      receives conflicting instructions, notices or elections from two or more persons
      or entities with respect to the same Registrable Securities, the Company shall
      act upon the basis of instructions, notice or election received from the
      registered owner of such Registrable Securities.

     

    b.  Any
      notices required or permitted to be given under the terms hereof shall be sent
      by certified or registered mail (return receipt requested) or delivered
      personally or by courier (including a recognized overnight delivery service)
      or
      by facsimile and shall be effective five days after being placed in the mail,
      if
      mailed by regular United States mail, or upon receipt, if delivered personally
      or by courier (including a recognized overnight delivery service) or by
      facsimile, in each case addressed to a party. The addresses for such
      communications shall be:

     

    If
      to the
      Company:

     

    Igia,
      Inc.

    16
      East 540th
      Street,
      12th
      Floor

    New
      York,
      NY 10016

    Attention:
      President and Treasurer

    Telephone:
      (212) 575-0500

    Facsimile:
      (212) 354-6385

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    With
      a
      copy to:

    Sichenzia
      Ross Friedman Ference LLP

    1065
      Avenue of the Americas

    New
      York,
      NY 10018

    Attention:
      Gregory Sichenzia, Esq.

    Telephone:
      (212) 930-9700

    Facsimile:
      (212) 930-9725

     

    If
      to an
      Investor: to the address set forth immediately below such Investor’s name on the
      signature pages to the Securities Purchase Agreement. 

     

    With
      a
      copy to:

     

    Ballard
      Spahr Andrews & Ingersoll, LLP

    1735
      Market Street

    51st
      Floor

    Philadelphia,
      Pennsylvania 19103

    Attention:
      Gerald J. Guarcini, Esq

    Telephone:
      215-865-8625

    Facsimile:
      215-864-8999

     

    c.  Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    d.  
      THIS
      AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
      LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
      UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH RESPECT TO ANY
      DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO IN CONNECTION
      HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
      IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
      SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS
      UPON
      A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
      SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN
      SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED
      BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
      SUIT
      OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS
      BY
      SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT
      PREVAIL IN ANY DISPUTE ARISING UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR
      ALL
      FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY
      IN CONNECTION WITH SUCH DISPUTE.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    e.  In
      the
      event that any provision of this Agreement is invalid or unenforceable under
      any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any provision hereof
      which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision hereof.

     

    f.  This
      Agreement, the Notes, the Warrants and the Securities Purchase Agreement
      (including all schedules and exhibits thereto) constitute the entire agreement
      among the parties hereto with respect to the subject matter hereof and thereof.
      There are no restrictions, promises, warranties or undertakings, other than
      those set forth or referred to herein and therein. This Agreement and the
      Securities Purchase Agreement supersede all prior agreements and understandings
      among the parties hereto with respect to the subject matter hereof and
      thereof.

     

    g.  Subject
      to the requirements of Section 9 hereof, this Agreement shall be binding upon
      and inure to the benefit of the parties and their successors and
      assigns.

     

    h.  The
      headings in this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement.

     

    i.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party. This Agreement, once executed by a party, may
      be
      delivered to the other party hereto by facsimile transmission of a copy of
      this
      Agreement bearing the signature of the party so delivering this
      Agreement.

     

    j.  Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    k.  Except
      as
      otherwise provided herein, all consents and other determinations to be made
      by
      the Investors pursuant to this Agreement shall be made by Investors holding
      a
      majority of the Registrable Securities, determined as if the all of the Notes
      then outstanding have been converted into for Registrable
      Securities.

     

    l.  The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to each Investor by vitiating the intent and purpose of the
      transactions contemplated hereby. Accordingly, the Company acknowledges that
      the
      remedy at law for breach of its obligations under this Agreement will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of any of the provisions under this Agreement, that each Investor shall
      be entitled, in addition to all other available remedies in law or in equity,
      and in addition to the penalties assessable herein, to an injunction or
      injunctions restraining, preventing or curing any breach of this Agreement
      and
      to enforce specifically the terms and provisions hereof, without the necessity
      of showing economic loss and without any bond or other security being
      required.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    m.  The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company and the undersigned Initial Investors have caused this Agreement to
      be
      duly executed as of the date first above written.

     

    IGIA,
      INC.

     

    ________________________

    Prem
      Ramchandani

    President
      and Treasurer

     

     

    AJW
      PARTNERS, LLC

    By:
      SMS
      Group, LLC

     

    ________________________    

    Corey
      S.
      Ribotsky

    Manager
      

     

     

    AJW
      OFFSHORE, LTD.

    By:
      First
      Street Manager II, LLC

    

    ________________________

    Corey
      S.
      Ribotsky

    Manager

    

     

    AJW
      QUALIFIED PARTNERS, LLC

     

    By:
      AJW
      Manager, LLC

     

    ________________________

    Corey
      S.
      Ribotsky

    Manager

    

    

    NEW
      MILLENNIUM CAPITAL PARTNERS, II, LLC

    By:
      First
      Street Manager II, LLC

     

    ________________________

    Corey
      S.
      Ribotsky

    Manager

    

    
      
        
        

      

      
        19WHERIFY
        WIRELESS, INC.

       

      2004
        STOCK PLAN

      (As
        amended, October 27, 2006)

       

      1.
        Purposes of the Plan. The
        purposes of this Plan are: to attract and retain the best available personnel
        for positions of substantial responsibility, to provide additional incentive
        to
        Employees, Directors and Consultants, and to promote the success of the
        Company's business.

       

      The
        Plan
        permits the grant of Incentive Stock Options, Nonstatutory Stock Options
        and
        Restricted Stock.

      2.
        Definitions.
        As used
        herein, the following definitions will apply:

       

      (a)     "Administrator"
        means
        the Board or any of its Committees as will be administering the Plan, in
        accordance with Section 4 of the Plan.

       

      (b)     "Applicable
        Laws"
        means
        the requirements relating to the administration of equity-based awards or
        equity
        compensation plans under U.S. state corporate laws, U.S. federal and state
        securities laws, the Code, any stock exchange or quotation system on which
        the
        Common Stock is listed or quoted and the applicable laws of any foreign country
        or jurisdiction where Awards are, or will be, granted under the
        Plan.

       

      (c)     "Award"
        means,
        individually or collectively, a grant under the Plan of Options or Restricted
        Stock.

       

      (d)     "Award
        Agreement"
        means
        the written or electronic agreement setting forth the terms and provisions
        applicable to each Award granted under the Plan. The Award Agreement is subject
        to the terms and conditions of the Plan.

       

      (e)  (not
        used)

       

      (f)     "Awarded
        Stock"
        means
        the Common Stock subject to an Award.

       

      (g)    "Board"
        means
        the Board of Directors of the Company.

       

      (h)    "Change
        in Control"
        means
        the occurrence of any of the following events:

       

      (i)     Any
        "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange
        Act)
        becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange
        Act), directly or indirectly, of securities of the Company representing fifty
        percent (50%) or more of the total voting power represented by the Company's
        then outstanding voting securities; or

       

      (ii)     The
        consummation of the sale or disposition by the Company of all or substantially
        all of the Company's assets; or

       

      (iii)    A
        change in the composition of the Board occurring within a one-year period,
        as a
        result of which fewer than a majority of the directors are Incumbent Directors.
        "Incumbent Directors" means directors who either (A) are Directors as of
        the effective date of the Plan, or (B) are elected, or nominated for
        election, to the Board with the affirmative votes of at least a majority
        of the
        Incumbent Directors at the time of such election or nomination (but will
        not
        include an individual whose election or nomination is in connection with
        an
        actual or threatened proxy contest relating to the election of directors
        to the
        Company); or

       

      (iv)     The
        consummation of a merger or consolidation of the Company with any other
        corporation, other than a merger or consolidation which would result in the
        voting securities of the Company outstanding immediately prior thereto
        continuing to represent (either by remaining outstanding or by being converted
        into voting securities of the surviving entity or its parent) at least fifty
        percent (50%) of the total voting power represented by the voting securities
        of
        the Company or such surviving entity or its parent outstanding immediately
        after
        such merger or consolidation.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (i)    
        "Code"
        means
        the Internal Revenue Code of 1986, as amended. Any reference to a section
        of the
        Code herein will be a reference to any successor or amended section of the
        Code.

       

      (j)     "Committee"
        means a
        committee of Directors or other individuals satisfying Applicable Laws appointed
        by the Board in accordance with Section 4 of the Plan.

       

      (k)     "Common
        Stock"
        means
        the Common Stock of the Company.

       

      (l)     "Company"
        means
        Wherify Wireless, Inc., a Delaware corporation, or any successor
        thereto.

       

      (m)   "Consultant"
        means
        any person, including an advisor, engaged by the Company or a Parent or
        Subsidiary to render services to such entity.

       

      (n)    "Director"
        means a
        member of the Board.

       

      (o)    "Disability"
        means
        total and permanent disability as defined in Section 22(e)(3) of the Code,
        provided that in the case of Awards other than Incentive Stock Options, the
        Administrator in its discretion may determine whether a permanent and total
        disability exists in accordance with uniform and non-discriminatory standards
        adopted by the Administrator from time to time.

       

      (p)    "Dividend
        Equivalent"
        means a
        credit, made at the discretion of the Administrator, to the account of a
        Participant in an amount equal to the cash dividends paid on one Share for
        each
        Share represented by an Award held by such Participant.

       

      (q)    "Employee"
        means
        an "employee" (within the meaning of Section 3401(c) of the Code and the
        regulations thereunder) of the Company or any Parent or Subsidiary of the
        Company. Neither service as an Outside Director nor payment of a director's
        fee
        by the Company to an Outside Director will be sufficient to constitute
        "employment" by the Company.

       

      (r)    "Exchange
        Act"
        means
        the Securities Exchange Act of 1934, as amended.

       

      (s)    "Exchange
        Program"
        means a
        program under which (i) outstanding Awards are surrendered or cancelled in
        exchange for Awards of the same type (which may have lower exercise prices
        and
        different terms), Awards of a different type, and/or cash, and/or (ii) the
        exercise price of an outstanding Award is reduced. The terms and conditions
        of
        any Exchange Program will be determined by the Administrator in its sole
        discretion.

       

      (t)    "Fair
        Market Value"
        means,
        as of any date and unless the Administrator determines otherwise, the value
        of
        Common Stock determined as follows:

       

      (i)     If
        the Common Stock is listed on any established stock exchange or a national
        market system, including without limitation the NASDAQ National Market or
        The
        NASDAQ SmallCap Market of The NASDAQ Stock Market, its Fair Market Value
        will be
        the closing sales price for such stock (or the closing bid, if no sales were
        reported) as quoted on such exchange or system for the day of determination,
        as
        reported in The
        Wall Street Journal
        or such
        other source as the Administrator deems reliable;

       

      (ii)    If
        the Common Stock is regularly quoted by a recognized securities dealer but
        selling prices are not reported, the Fair Market Value of a Share of Common
        Stock will be the mean between the high bid and low asked prices for the
        Common
        Stock for the day of determination, as reported in The
        Wall Street Journal
        or such
        other source as the Administrator deems reliable; or

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (iii)   In
        the
        absence of an established market for the Common Stock, the Fair Market Value
        will be determined in good faith by the Administrator.

       

      (u)    "Fiscal
        Year"
        means
        the fiscal year of the Company.

       

      (v)    "Incentive
        Stock Option"
        means
        an Option intended to qualify as an incentive stock option within the meaning
        of
        Section 422 of the Code and the regulations promulgated
        thereunder.

       

      (w)    "Involuntary
        Termination"
        means
        the termination of the service of any Participant with the Company or any
        Parent
        or Subsidiary of the Company which occurs by reason of:

       

      (i)    such
        Participant's involuntary dismissal or discharge by the Company or any Parent
        or
        Subsidiary of the Company for reasons other than Misconduct; or

       

      (ii)    such
        Participant's voluntary resignation following (A) a change in his or her
        position with the Company or Parent or Subsidiary of the Company which
        materially reduces his or her duties and responsibilities or the level of
        management to which he or she reports, (B) a reduction in his or her level
        of compensation (including base salary, fringe benefits and target bonus
        under
        any corporate-performance based bonus or incentive programs) by more than
        fifteen percent (15%) or (C) a relocation of such Participant's place of
        employment by more than fifty (50) miles, provided and only if such change,
        reduction or relocation is effected by the Corporation without the Participant's
        consent.

       

      (x)    "Misconduct"
        means
        the commission of any act of fraud, embezzlement or dishonesty by a Participant,
        any unauthorized use or disclosure by such person of confidential information
        or
        trade secrets of the Company (or any Parent or Subsidiary of the Company),
        or
        any other intentional misconduct by such person adversely affecting the business
        or affairs of the Company (or any Parent or Subsidiary of the Company) in
        a
        material manner. The foregoing definition shall not be deemed to be inclusive
        of
        all the acts or omissions which the Company (or any Parent or Subsidiary
        of the
        Company) may consider as grounds for the dismissal or discharge of any
        Participant or other person in the service of the Company (or any Parent
        or
        Subsidiary of the Company).

       

      (y)    "Nonstatutory
        Stock Option"
        means
        an Option that by its terms does not qualify or is not intended to qualify
        as an
        Incentive Stock Option.

       

      (z)    "Officer"
        means a
        person who is an officer of the Company within the meaning of Section 16 of
        the Exchange Act and the rules and regulations promulgated
        thereunder.

       

      (aa)   
         
        "Option"
        means a
        stock option granted pursuant to the Plan.

       

      (bb)        
        "Other
        Stock Based Awards"
        means
        Awards granted pursuant to Section 9 of the Plan.

       

      (cc)         
        "Outside
        Director"
        means a
        Director who is not an Employee.

       

      (dd)       
         "Parent"
        means a
        "parent corporation," whether now or hereafter existing, as defined in
        Section 424(e) of the Code.

       

      (ee)        
         "Participant"
        means
        the holder of an outstanding Award granted under the Plan.

       

      (ff)          
        "Period
        of Restriction"
        means
        the period during which the transfer of Shares of Restricted Stock are subject
        to restrictions and therefore, the Shares are subject to a substantial risk
        of
        forfeiture. Such restrictions may be based on the passage of time, the
        achievement of target levels of performance, or the occurrence of other events
        as determined by the Administrator.

       

      (gg)        
        "Plan"
        means
        this 2004 Stock Plan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (hh)        
        "Restricted
        Stock"
        means
        shares of Common Stock issued pursuant to a Restricted Stock award under
        Section 8 of the Plan or issued pursuant to the early exercise of an
        Option.

       

      (ii)          
        "Rule 16b-3"
        means
        Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in
        effect when discretion is being exercised with respect to the Plan.

       

      (jj)           
        "Section 16(b)"
        means
        Section 16(b) of the Exchange Act.

       

      (kk)         
        "Service
        Provider"
        means
        an Employee, Director or Consultant.

       

      (ll)           
        "Share"
        means a
        share of the Common Stock, as adjusted in accordance with Section 12 of the
        Plan.

       

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

       

      3.
        Stock Subject to the Plan.

       

      (a)
        Stock Subject to the Plan. Subject
        to the provisions of Section 12 of the Plan, the maximum aggregate number
        of
        Shares that may be issued under the Plan is 10,000,000, all of which may
        be
        issued upon the exercise of Incentive Stock Options granted under the Plan.
        The
        Shares may be authorized, but unissued, or reacquired Common Stock. Upon
        payment
        in Shares pursuant to the exercise of an Award, the number of Shares available
        for issuance under the Plan shall be reduced only by the number of Shares
        actually issued in such payment. If a Participant pays the exercise price
        (or
        purchase price, if applicable) of an Award through the tender of Shares,
        or if
        Shares are tendered or withheld to satisfy any Company withholding obligations,
        the number of Shares so tendered or withheld shall again be available for
        issuance pursuant to future Awards under the Plan. The Shares issued under
        the
        Plan may be authorized, but unissued, or reacquired Common Stock.

       

      (b)
        Lapsed Awards.
        If any
        outstanding Award expires or is terminated or canceled without having been
        exercised or settled in full, or if Shares acquired pursuant to an Award
        subject
        to forfeiture or repurchase are forfeited or repurchased by the Company,
        the
        Shares allocable to the terminated portion of such Award or such forfeited
        or
        repurchased Shares shall again be available for grant under the
        Plan.

       

      (c)
        Section 162(m) Grant Limit.
        Subject
        to the provisions of Section 12 of the Plan, at any time that the Company
        is a "publicly held corporation" within the meaning of Section 162(m) of
        the Code, no Employee or prospective Employee may be granted one or more
        Options
        within any fiscal year of the Company which in the aggregate cover more than
        1,000,000 Shares. An Option which is canceled (or deemed to be canceled under
        Treasury Regulation Section 1.162-27(e)(2)(vi)(B)) within the same fiscal
        year of the Company in which it was granted shall continue to be counted
        against
        the Share limit set forth in this Section 3(c).

       

      4.
        Administration of the Plan.

       

      (a)
        Procedure.

       

      (i)           
        Multiple
        Administrative Bodies.
        Different Committees with respect to different groups of Service Providers
        may
        administer the Plan.

       

      (ii)          
        Section 162(m).
        To the
        extent that the Administrator determines it to be desirable and necessary
        to
        qualify Awards granted hereunder as "performance-based compensation" within
        the
        meaning of Section 162(m) of the Code, the Plan will be administered by a
        Committee of two or more "outside directors" within the meaning of
        Section 162(m) of the Code.

       

      (iii)         
        Rule 16b-3.
        To the
        extent desirable to qualify transactions hereunder as exempt under
        Rule 16b-3, the transactions contemplated hereunder will be structured to
        satisfy the requirements for exemption under Rule 16b-3.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (iv)         
        Other
        Administration.
        Other
        than as provided above, the Plan will be administered by (A) the Board or
        (B) a Committee, which committee will be constituted to satisfy Applicable
        Laws.

       

      (v)          
        Delegation
        of Authority for Day-to-Day Administration.
        Except
        to the extent prohibited by Applicable Law, the Administrator may delegate
        to
        one or more individuals the day-to-day administration of the Plan and any
        of the
        functions assigned to it in this Plan. Such delegation may be revoked at
        any
        time.

       

      (b)          
        Powers of the Administrator.
        Subject
        to the provisions of the Plan, and in the case of a Committee, subject to
        the
        specific duties delegated by the Board to such Committee, the Administrator
        will
        have the authority, in its discretion:

       

      (i)            
        to determine the Fair Market Value;

       

      (ii)           
        to select the Service Providers to whom Awards may be granted
        hereunder;

       

      (iii)          
        to determine the number of Shares to be covered by each Award granted
        hereunder;

       

      (iv)          
        to approve forms of agreement for use under the Plan;

       

      (v)           
        to determine the terms and conditions, not inconsistent with the terms of
        the
        Plan, of any Award granted hereunder. Such terms and conditions include,
        but are
        not limited to, the exercise price or purchase price for an Award, the time
        or
        times when Awards may be exercised (which may be based on performance criteria),
        the time or times when Awards or Shares become vested, any forfeiture or
        repurchase rights of the Company or any Parent or Subsidiary of the Company
        with
        respect to Shares or Awards held by a Participant, whether an Option may
        be
        exercisable for unvested Shares which are subject to repurchase by the Company
        or any Parent or Subsidiary of the Company if a Participant ceases to be
        a
        Service Provider while holding unvested Shares, any vesting acceleration
        or
        waiver of forfeiture or repurchase rights, and any restriction or limitation
        regarding any Award or the Shares relating thereto, based in each case on
        such
        factors as the Administrator, in its sole discretion, will
        determine;

       

      (vi)          
        to reduce the exercise price of any Award to the then current Fair Market
        Value
        if the Fair Market Value of the Common Stock covered by such Award shall
        have
        declined since the date the Award was granted;

       

      (vii)         
        to institute an Exchange Program;

       

      (viii)       
         to construe and interpret the terms of the Plan and Awards granted
        pursuant to the Plan;

       

      (ix)          
        to prescribe, amend and rescind rules and regulations relating to the Plan,
        including rules and regulations relating to sub-plans established for the
        purpose of satisfying applicable foreign laws and/or qualifying for preferred
        tax treatment under applicable foreign tax laws;

       

      (x)           
        to modify or amend each Award (subject to Section 15(c) of the Plan),
        including the discretionary authority to extend the post-termination
        exercisability period of Awards longer than is otherwise provided for in
        the
        Plan;

       

      (xi)          
        to allow Participants to satisfy withholding tax obligations by electing
        to have
        the Company withhold from the Shares or cash to be issued upon exercise or
        vesting of an Award that number of Shares or cash having a Fair Market Value
        equal to the minimum amount required to be withheld. The Fair Market Value
        of
        any Shares to be withheld will be determined on the date that the amount
        of tax
        to be withheld is to be determined. All elections by a Participant to have
        Shares or cash withheld for this purpose will be made in such form and under
        such conditions as the Administrator may deem necessary or
        advisable;

       

      (xii)          to
        authorize any person to execute on behalf of the Company any instrument required
        to effect the grant of an Award previously granted by the
        Administrator;

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (xiii)        
        to allow a Participant to defer the receipt of the payment of cash or the
        delivery of Shares that would otherwise be due to such Participant under
        an
        Award;

       

      (xv)     
            to determine whether Awards will be settled in Shares, cash
        or in any combination thereof;

       

      (xvi)        
        to determine whether Awards will be adjusted for Dividend
        Equivalents;

       

      (xvii)       
        to create Other Stock Based Awards for issuance under the Plan;

       

      (xviii)      
        to establish a program whereby Service Providers designated by the Administrator
        can reduce compensation otherwise payable in cash in exchange for Awards
        under
        the Plan;

       

      (xix)         
        to impose such restrictions, conditions or limitations as it determines
        appropriate as to the timing and manner of any resales by a Participant or
        other
        subsequent transfers by the Participant of any Shares issued as a result
        of or
        under an Award, including without limitation, (A) restrictions under an
        insider trading policy, and (B) restrictions as to the use of a specified
        brokerage firm for such resales or other transfers; and

       

      (xx)          
        to make all other determinations deemed necessary or advisable for administering
        the Plan.

       

      (c)           
        Effect
        of Administrator's Decision.
        The
        Administrator's decisions, determinations and interpretations will be final
        and
        binding on all Participants and any other holders of Awards.

       

      5.
        Eligibility.
        Nonstatutory Stock Options and Restricted Stock may be granted to Service
        Providers. Incentive Stock Options may be granted only to
        Employees.

       

      6.
        Limitations.

       

      (a)
        ISO
        $100,000 Rule.
        Each
        Option will be designated in the Award Agreement as either an Incentive Stock
        Option or a Nonstatutory Stock Option. However, notwithstanding such
        designation, to the extent that the aggregate Fair Market Value of the Shares
        with respect to which Incentive Stock Options are exercisable for the first
        time
        by the Participant during any calendar year (under all plans of the Company
        and
        any Parent or Subsidiary) exceeds $100,000, such Options will be treated
        as
        Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive
        Stock Options will be taken into account in the order in which they were
        granted. The Fair Market Value of the Shares will be determined as of the
        time
        the Option with respect to such Shares is granted.

       

      (b)
        No
        Rights as a Service Provider.
        Neither
        the Plan nor any Award shall confer upon a Participant any right with respect
        to
        continuing his or her relationship as a Service Provider, nor shall they
        interfere in any way with the right of the Participant or the right of the
        Company or its Parent or Subsidiaries to terminate such relationship at any
        time, with or without cause.

       

      7.
        Stock Options.

       

      (a)
        Term
        of Option.
        The term
        of each Option will be stated in the Award Agreement. In the case of an
        Incentive Stock Option, the term will be ten (10) years from the date of
        grant or such shorter term as may be provided in the Award Agreement. Moreover,
        in the case of an Incentive Stock Option granted to a Participant who, at
        the
        time the Incentive Stock Option is granted, owns stock representing more
        than
        ten percent (10%) of the total combined voting power of all classes of stock
        of
        the Company or any Parent or Subsidiary, the term of the Incentive Stock
        Option
        will be five (5) years from the date of grant or such shorter term as may
        be provided in the Award Agreement.

       

      (b)
        Option Exercise Price and Consideration.

       

      (i)
        Exercise Price. The per Share exercise price for the Shares to be issued
        pursuant to exercise of an Option will be determined by the Administrator,
        subject to the following:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (1) 
        In the case of an Incentive Stock Option

       

      (A) 
        granted to an Employee who, at the time the Incentive Stock Option is granted,
        owns stock representing more than ten percent (10%) of the voting power of
        all
        classes of stock of the Company or any Parent or Subsidiary, the per Share
        exercise price will be no less than 110% of the Fair Market Value per Share
        on
        the date of grant.

       

      (B) 
        granted to any Employee other than an Employee described in paragraph (A)
        immediately above, the per Share exercise price will be no less than 100%
        of the
        Fair Market Value per Share on the date of grant.

       

      (2) 
        In the case of a Nonstatutory Stock Option, the per Share exercise price
        will be
        determined by the Administrator. In the case of a Nonstatutory Stock Option
        intended to qualify as "performance-based compensation" within the meaning
        of
        Section 162(m) of the Code, the per Share exercise price will be no less
        than 100% of the Fair Market Value per Share on the date of grant.

       

      (3) 
        Notwithstanding the foregoing, Incentive Stock Options may be granted with
        a per
        Share exercise price of less than 100% of the Fair Market Value per Share
        on the
        date of grant pursuant to a merger or other corporate transaction.

       

      (ii)
        Waiting Period and Exercise Dates.At the time an Option is granted, the
        Administrator will fix the period within which the Option may be exercised
        and
        will determine any conditions that must be satisfied before the Option may
        be
        exercised.

       

      (c)
        Form
        of Consideration.
        The
        Administrator will determine the acceptable form of consideration for exercising
        an Option, including the method of payment. In the case of an Incentive Stock
        Option, the Administrator will determine the acceptable form of consideration
        at
        the time of grant. Such consideration to the extent permitted under
        Section 16(a) of the Plan and all other Applicable Laws may consist
        entirely of:

       

      (i) 
        cash;

       

      (ii) 
        check;

       

      (iii) 
        promissory note on such terms and conditions as determined by the Administrator
        in its sole and absolute discretion;

       

      (iv) 
        other Shares which meet the conditions established by the Administrator to
        avoid
        adverse accounting consequences (as determined by the
        Administrator);

       

      (v) consideration
        received by the Company under a cashless exercise program implemented by
        the
        Company in connection with the Plan;

       

      (vi) a
        reduction in the amount of any Company liability to the Participant, including
        any liability attributable to the Participant's participation in any
        Company-sponsored deferred compensation program or arrangement;

       

      (vii) 
        any combination of the foregoing methods of payment; or

       

      (viii) 
        such other consideration and method of payment for the issuance of Shares
        to the
        extent permitted by Applicable Laws.

       

      (d)
        Exercise of Option.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (i)
        Procedure for Exercise; Rights as a Stockholder.Any Option granted hereunder
        will be exercisable according to the terms of the Plan and at such times
        and
        under such conditions as determined by the Administrator and set forth in
        the
        Award Agreement. An Option may not be exercised for a fraction of a
        Share.

       

      An
        Option
        will be deemed exercised when the Company receives: (x) written or
        electronic notice of exercise (in accordance with the Award Agreement) from
        the
        person entitled to exercise the Option, and (y) full payment for the Shares
        with respect to which the Option is exercised. Full payment may consist of
        any
        consideration and method of payment authorized by the Administrator and
        permitted by the Award Agreement and the Plan. Shares issued upon exercise
        of an
        Option will be issued in the name of the Participant or, if requested by
        the
        Participant, in the name of the Participant and his or her spouse. Until
        the
        Shares are issued (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 will exist with
        respect to the Awarded Stock, notwithstanding the exercise of the Option.
        The
        Company will issue (or cause to be issued) such Shares promptly after the
        Option
        is exercised. No adjustment will be made for a dividend or other right for
        which
        the record date is prior to the date the Shares are issued, except as provided
        in Section 12 of the Plan or the applicable Award Agreement.

       

      Exercising
        an Option in any manner will decrease the number of Shares thereafter available
        for sale under the Option, by the number of Shares as to which the Option
        is
        exercised.

       

      (ii)   
        Termination
        of Relationship as a Service Provider.
        If a
        Participant ceases to be a Service Provider, other than upon the Participant's
        death or Disability, the Participant may exercise his or her Option within
        such
        period of time as is specified in the Award Agreement to the extent that
        the
        Option is vested on the date of termination (but in no event later than the
        expiration of the term of such Option as set forth in the Award Agreement).
        In
        the absence of a specified time in the Award Agreement, the Option will remain
        exercisable for three (3) months following the Participant's termination.
        Unless otherwise provided by the Administrator, if on the date of termination
        the Participant is not vested as to his or her entire Option, the Shares
        covered
        by the unvested portion of the Option as of such termination date will revert
        to
        the Plan on the date one (1) month following the Participant's termination.
        If after termination the Participant does not exercise his or her Option
        within
        the time specified herein, in the Award Agreement or by the Administrator,
        the
        Option will terminate, and the Shares covered by such Option will revert
        to the
        Plan.

       

      (iii) 
        Disability
        of Participant.
        If a
        Participant ceases to be a Service Provider as a result of the Participant's
        Disability, the Participant may exercise his or her Option within such period
        of
        time as is specified in the Award Agreement to the extent the Option is vested
        on the date of termination (but in no event later than the expiration of
        the
        term of such Option as set forth in the Award Agreement). In the absence
        of a
        specified time in the Award Agreement, the Option will remain exercisable
        for
        twelve (12) months following the Participant's termination. Unless
        otherwise provided by the Administrator, if on the date of termination the
        Participant is not vested as to his or her entire Option, the Shares covered
        by
        the unvested portion of the Option as of such termination date will revert
        to
        the Plan on the date one (1) month following the Participant's termination.
        If after termination the Participant does not exercise his or her Option
        within
        the time specified herein, in the Award Agreement or by the Administrator,
        the
        Option will terminate, and the Shares covered by such Option will revert
        to the
        Plan.

       

      (iv) 
        Death
        of Participant.
        If a
        Participant dies while a Service Provider, the Option may be exercised following
        the Participant's death within such period of time as is specified in the
        Award
        Agreement to the extent that the Option is vested on the date of death (but
        in
        no event may the option be exercised later than the expiration of the term
        of
        such Option as set forth in the Award Agreement), by the Participant's
        designated beneficiary, provided such beneficiary has been designated in
        writing
        prior to Participant's death in a form acceptable to the Administrator. If
        no
        such beneficiary has been designated by the Participant, then such Option
        may be
        exercised by the personal representative of the Participant's estate or by
        the
        person(s) to whom the Option is transferred pursuant to the Participant's
        will
        or in accordance with the laws of descent and distribution. In the absence
        of a
        specified time in the Award Agreement, the Option will remain exercisable
        for
        twelve (12) months following Participant's death. Unless otherwise provided
        by the Administrator, if at the time of death Participant is not vested as
        to
        his or her entire Option, the Shares covered by the unvested portion of the
        Option as of the date of the Participant's death will revert to the Plan
        on the
        date one (1) month following the Participant's death. If the Option is not
        so exercised within the time specified herein, in the Award Agreement or
        by the
        Administrator, the Option will terminate, and the Shares covered by such
        Option
        will revert to the Plan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (e)
        Buyout Provisions.
        The
        Administrator may at any time offer to buy out for a payment in cash or Shares
        an Option previously granted based on such terms and conditions as the
        Administrator shall establish and communicate to the Participant at the time
        that such offer is made.

       

      8.
        Restricted Stock.

      (a)
        Grant of Restricted Stock.
        Subject
        to the terms and provisions of the Plan, the Administrator, at any time and
        from
        time to time, may grant Shares of Restricted Stock to Service Providers in
        such
        amounts as the Administrator, in its sole discretion, will determine. Subject
        to
        Section 16(a) of the Plan and any other Applicable Laws, the Administrator
        shall determine the form of consideration to be paid for such Shares. Such
        consideration to the extent permitted under Section 16(a) of the Plan and
        all other Applicable Laws may consist entirely of:

       

      (i)    
        cash;

       

      (ii)   
        check;

       

      (iii)   past
        services rendered to the Company (or any Parent or Subsidiary);

       

      (iv)   promissory
        note on such terms and conditions as determined by the Administrator in its
        sole
        and absolute discretion;

       

      (v)   
        any combination of the foregoing methods of payment; or

       

      (vi)  
        such other consideration and method of payment for the issuance of Shares
        to the
        extent permitted by Applicable Laws.

       

      (b)
        Restricted Stock Agreement.
        Each
        Award of Restricted Stock will be evidenced by an Award Agreement that will
        specify the Period of Restriction, the number of Shares granted, and such
        other
        terms and conditions as the Administrator, in its sole discretion, will
        determine. Unless the Administrator determines otherwise, Shares of Restricted
        Stock will be held by the Company as escrow agent until the restrictions
        on such
        Shares have lapsed.

       

      (c)
        Transferability.
        Except
        as provided in this Section 8, Shares of Restricted Stock may not be sold,
        transferred, pledged, assigned, or otherwise alienated or hypothecated until
        the
        end of the applicable Period of Restriction.

       

      (d)
        Other Restrictions.
        The
        Administrator, in its sole discretion, may impose such other restrictions
        on
        Shares of Restricted Stock as it may deem advisable or appropriate.

       

      (e)
        Removal of Restrictions. Except
        as
        otherwise provided in this Section 8, Shares of Restricted Stock covered by
        each Restricted Stock grant made under the Plan will be released from escrow
        as
        soon as practicable after the last day of the Period of Restriction. The
        Administrator, in its discretion, may accelerate the time at which any
        restrictions will lapse or be removed.

       

      (f)
        Voting Rights.
        During
        the Period of Restriction, Service Providers holding Shares of Restricted
        Stock
        granted hereunder may exercise full voting rights with respect to those Shares,
        unless the Administrator determines otherwise.

       

      (g)
        Dividends and Other Distributions.
        During
        the Period of Restriction, Service Providers holding Shares of Restricted
        Stock
        will be entitled to receive all dividends and other distributions paid with
        respect to such Shares unless otherwise provided in the Award Agreement.
        If any
        such dividends or distributions are paid in Shares, the Shares will be subject
        to the same restrictions on transferability and forfeitability as the Shares
        of
        Restricted Stock with respect to which they were paid.

       

      (h)
        Return of Restricted Stock to Company.
        On the
        date set forth in the Award Agreement, the Restricted Stock for which
        restrictions have not lapsed will revert to the Company and again will become
        available for grant under the Plan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      9.
        Other Stock Based Awards.
        Other
        Stock Based Awards may be granted either alone, in addition to, or in tandem
        with, other Awards granted under the Plan and/or cash awards made outside
        of the
        Plan. The Administrator shall have authority to determine the Service Providers
        to whom and the time or times at which Other Stock Based Awards shall be
        made,
        the amount of such Other Stock Based Awards, and all other conditions of
        the
        Other Stock Based Awards including any dividend and/or voting
        rights.

       

      10.
        Leaves of Absence.
        Unless
        the Administrator provides otherwise, vesting of Awards granted hereunder
        will
        be suspended during any unpaid leave of absence and will resume on the date
        the
        Participant returns to work on a regular schedule as determined by the Company;
        provided, however, that no vesting credit will be awarded for the time vesting
        has been suspended during such leave of absence. A Service Provider will
        not
        cease to be an Employee in the case of (i) any leave of absence approved by
        the Company or (ii) transfers between locations of the Company or between
        the Company, its Parent, or any Subsidiary. For purposes of Incentive Stock
        Options, no such leave may exceed three (3) months, unless reemployment
        upon expiration of such leave is guaranteed by statute or contract. If
        reemployment upon expiration of a leave of absence approved by the Company
        is
        not so guaranteed and the leave of absence lasts longer than three
        (3) months, then three months following the day after the expiration of the
        initial three-month leave period, any Incentive Stock Option held by the
        Participant will cease to be treated as an Incentive Stock Option and will
        be
        treated for tax purposes as a Nonstatutory Stock Option.

       

      11.
        Non-Transferability of Awards.
        Unless
        determined otherwise by the Administrator, an Award may not be sold, pledged,
        assigned, hypothecated, transferred, or disposed of in any manner other than
        by
        will or by the laws of descent or distribution and may be exercised, during
        the
        lifetime of the Participant, only by the Participant. If the Administrator
        makes
        an Award transferable, such Award will contain such additional terms and
        conditions as the Administrator deems appropriate.

       

      12.
        Adjustments; Dissolution or Liquidation; Merger or Change in
        Control.

      (a)
        Adjustments.
        In the
        event that any dividend or other distribution (whether in the form of cash,
        Shares, other securities, or other property), recapitalization, stock split,
        reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
        combination, repurchase, or exchange of Shares or other securities of the
        Company, or other change in the corporate structure of the Company affecting
        the
        Shares occurs such that an adjustment is determined by the Administrator
        (in its
        sole discretion) to be appropriate in order to prevent dilution or enlargement
        of the benefits or potential benefits intended to be made available under
        the
        Plan, then the Administrator shall, in such manner as it may deem equitable,
        adjust (i) the number and class of Shares which may be delivered under
        Section 3(a) of the Plan, (ii) the maximum number of Shares by which
        the Shares reserved under the Plan shall increase in each fiscal year of
        the
        Company under Section 3(a) of the Plan, (iii) the maximum number and
        class of Shares for which any Employee or prospective Employee may be granted
        Options per fiscal year of the Company under Section 3(c) of the Plan and
        (iv) the number, class, and exercise price of Shares subject to outstanding
        Awards. Notwithstanding the preceding, the number of Shares subject to any
        Award
        always shall be a whole number.

       

      (b)
        Dissolution or Liquidation.
        In the
        event of the proposed dissolution or liquidation of the Company, the
        Administrator will notify each Participant as soon as practicable prior to
        the
        effective date of such proposed transaction. The Administrator in its discretion
        may provide for a Participant to have the right to exercise his or her Award,
        to
        the extent applicable, until ten (10) days prior to such transaction as to
        all of the Awarded Stock covered thereby, including Shares as to which the
        Award
        would not otherwise be exercisable. In addition, the Administrator may provide
        that any Company repurchase option or forfeiture rights applicable to any
        Award
        shall lapse 100%, and that any Award vesting shall accelerate 100%, provided
        the
        proposed dissolution or liquidation takes place at the time and in the manner
        contemplated. To the extent it has not been previously exercised or vested,
        an
        Award will terminate immediately prior to the consummation of such proposed
        action.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c)
        Merger or Change in Control.

       

      (i)
        Stock
        Options. In the event of a merger or Change in Control, each outstanding
        Option
        shall be assumed or an equivalent option substituted by the successor
        corporation or a Parent or Subsidiary of the successor corporation. With
        respect
        to Options granted to an Outside Director that are assumed or substituted
        for,
        if immediately prior to or after the merger or Change in Control the
        Participant's status as a Director or a director of the successor corporation,
        as applicable, is terminated other than upon a voluntary resignation by the
        Participant, then the Participant shall fully vest in and have the right
        to
        exercise such Options as to all of the Awarded Stock, including Shares as
        to
        which it would not otherwise be vested or exercisable. The Administrator
        shall
        also have the discretionary authority to structure one or more Option grants
        so
        that those Shares subject to such Options shall automatically vest, in whole
        or
        in part, upon the Involuntary Termination of the Participant's service with
        the
        Company or a Parent or Subsidiary of the Company within a designated period
        (not
        to exceed eighteen (18) months) following the effective date of any Change
        in Control in which those Shares do not otherwise vest. Unless determined
        otherwise by the Administrator, in the event that the successor corporation
        refuses to assume or substitute for the Option, the Participant shall fully
        vest
        in and have the right to exercise the Option as to all of the Awarded Stock,
        including Shares as to which it would not otherwise be vested or exercisable.
        If
        an Option is not assumed or substituted in the event of a merger or Change
        in
        Control, the Administrator shall notify the Participant in writing or
        electronically that the Option shall be exercisable, to the extent vested
        (taking into account any acceleration of vesting applicable to such option),
        for
        a period of up to 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 the
        merger
        or Change in Control, the option or stock appreciation right confers the
        right
        to purchase or receive, for each Share of Awarded Stock subject to the Option
        immediately prior to the merger or Change in Control, the consideration (whether
        stock, cash, or other securities or property) received in the merger or Change
        in Control 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 such consideration received in the merger
        or
        Change in Control is not solely common stock of the successor corporation
        or its
        Parent, the Administrator may, with the consent of the successor corporation,
        provide for the consideration to be received upon the exercise of the Option,
        for each Share of Awarded Stock subject to the Option, to be solely common
        stock
        of the successor corporation or its Parent equal in fair market value to
        the per
        share consideration received by holders of Common Stock in the merger or
        Change
        in Control. Notwithstanding anything herein to the contrary, an Award that
        vests, is earned or paid-out upon the satisfaction of one or more performance
        goals will not be considered assumed if the Company or its successor modifies
        any of such performance goals without the Participant's consent; provided,
        however, a modification to such performance goals only to reflect the successor
        corporation's post-merger or post-Change in Control corporate structure will
        not
        be deemed to invalidate an otherwise valid Award assumption.

       

      (ii)
        Restricted Stock and Other Stock Based Awards.In the event of a merger or
        Change
        in Control, each outstanding Restricted Stock award shall be assumed or an
        equivalent Restricted Stock award substituted by the successor corporation
        or a
        Parent or Subsidiary of the successor corporation. With respect to Awards
        granted to an Outside Director that are assumed or substituted for, if
        immediately prior to or after the merger or Change in Control the Participant's
        status as a Director or a director of the successor corporation, as applicable,
        is terminated other than upon a voluntary resignation by the Participant,
        then
        the Participant shall fully vest in such Awards, including Shares as to which
        the Participant would not otherwise be vested. Unless determined otherwise
        by
        the Administrator, in the event that the successor corporation refuses to
        assume
        or substitute for the Restricted Stock award, the Participant shall fully
        vest
        in the Restricted Stock including as to Shares which would not otherwise
        be
        vested. The Administrator shall also have the discretionary authority to
        structure one or more grants of Restricted Stock so that those Shares of
        Restricted Stock shall automatically vest, in whole or in part, upon the
        Involuntary Termination of the Participant's service with the Company or
        a
        Parent or Subsidiary of the Company within a designated period (not to exceed
        eighteen (18) months) following the effective date of any Change in Control
        in which those shares of Restricted Stock do not otherwise vest. For the
        purposes of this paragraph, a Restricted Stock award shall be considered
        assumed
        if, following the merger or Change in Control, the award confers the right
        to
        purchase or receive, for each Share subject to the Award immediately prior
        to
        the merger or Change in Control, the consideration (whether stock, cash,
        or
        other securities or property) received in the merger or Change in Control
        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 such consideration received in the merger or Change
        in Control is not solely common stock of the successor corporation or its
        Parent, the Administrator may, with the consent of the successor corporation,
        provide for the consideration to be received, for each Share and each unit/right
        to acquire a Share subject to the Award, to be solely common stock of the
        successor corporation or its Parent equal in fair market value to the per
        share
        consideration received by holders of Common Stock in the merger or Change
        in
        Control. Notwithstanding anything herein to the contrary, an Award that vests,
        is earned or paid-out upon the satisfaction of one or more performance goals
        will not be considered assumed if the Company or its successor modifies any
        of
        such performance goals without the Participant's consent; provided, however,
        a
        modification to such performance goals only to reflect the successor
        corporation's post-merger or post-Change in Control corporate structure will
        not
        be deemed to invalidate an otherwise valid Award assumption.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      13.
        Date
        of Grant.
        The date
        of grant of an Award will be, for all purposes, the date on which the
        Administrator makes the determination granting such Award, or such other
        later
        date as is determined by the Administrator. Notice of the determination will
        be
        provided to each Participant within a reasonable time after the date of such
        grant.

       

      14.
        Term
        of Plan.
        Subject
        to Section 19 of the Plan, the Plan will become effective upon its adoption
        by the Board. It will continue in effect for a term of ten (10) years
        unless terminated earlier under Section 15 of the Plan.

       

      15.
        Amendment and Termination of the Plan.

       

      (a)
        Amendment and Termination.
        The
        Board may at any time amend, alter, suspend or terminate the Plan.

       

      (b)
        Stockholder Approval.
        The
        Company will obtain stockholder approval of any Plan amendment to the extent
        necessary and desirable to comply with Applicable Laws.

       

      (c)
        Effect of Amendment or Termination.
        Subject
        to Section 17 of the Plan, no amendment, alteration, suspension or
        termination of the Plan will impair the rights of any Participant, unless
        mutually agreed otherwise between the Participant and the Administrator,
        which
        agreement must be in writing and signed by the Participant and the Company.
        Termination of the Plan will not affect the Administrator's ability to exercise
        the powers granted to it hereunder with respect to Awards granted under the
        Plan
        prior to the date of such termination.

       

      16.
        Conditions Upon Issuance of Shares.

       

      (a)
        Legal Compliance.
        Shares
        will not be issued pursuant to the exercise of an Award unless the exercise
        of
        such Award and the issuance and delivery of such Shares will comply with
        Applicable Laws and will be further subject to the approval of counsel for
        the
        Company with respect to such compliance. Notwithstanding any other provision
        of
        the Plan, the Company shall not be required to take or permit any action
        under
        the Plan or any agreement which, in the good faith determination of the
        Administrator, would result in a material risk of violation by the Company
        of
        Section 13(k) of the Exchange Act.

       

      (b)
        Investment Representations.
        As a
        condition to the exercise or receipt of an Award, the Company may require
        the
        person exercising or receiving such Award to represent and warrant at the
        time
        of any such exercise or receipt 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.

       

      17.
        Severability.
        Notwithstanding any contrary provision of the Plan or an Award to the contrary,
        if any one or more of the provisions (or any part thereof) of this Plan or
        the
        Awards shall be held invalid, illegal or unenforceable in any respect, such
        provision shall be modified so as to make it valid, legal and enforceable,
        and
        the validity, legality and enforceability of the remaining provisions (or
        any
        part thereof) of the Plan or Award, as applicable, shall not in any way be
        affected or impaired thereby.

       

      18.
        Inability to Obtain Authority.
        The
        inability of the Company to obtain authority from any regulatory body having
        jurisdiction, which authority is deemed by the Company's counsel to be necessary
        to the lawful issuance and sale of any Shares hereunder, will relieve the
        Company of any liability in respect of the failure to issue or sell such
        Shares
        as to which such requisite authority will not have been obtained.

       

      19.
        Stockholder Approval.
        The Plan
        will be subject to approval by the stockholders of the Company within twelve
        (12) months after the date the Plan is adopted. Such stockholder approval
        will be obtained in the manner and to the degree required under Applicable
        Laws.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      WHERIFY
        WIRELESS, INC.

      2004
        STOCK PLAN

      STOCK
        OPTION AGREEMENT

       

      Unless
        otherwise defined herein, the terms defined in the 2004 Stock Plan (the "Plan")
        shall have the same defined meanings in this Stock Option Agreement (the
        "Option
        Agreement").

       

      1.
        Grant of Option.
        The
        Administrator of the Company hereby grants to the Optionee (the "Optionee")
        named in the Certificate of Stock Option Grant (the "Certificate"), an option
        (the "Option") to purchase the number of Shares set forth in the Certificate,
        at
        the exercise price per Share set forth in the Certificate (the "Exercise
        Price"), and subject to the terms and conditions of the Plan, which is
        incorporated herein by reference. Subject to Section 15 of the Plan, in the
        event of a conflict between the terms and conditions of the Plan and this
        Option
        Agreement, the terms and conditions of the Plan shall prevail. This Option
        shall
        expire at the close of business on the expiration date set forth in the
        Certificate (the "Expiration Date"), unless sooner terminated in accordance
        with
        the provisions of this Option Agreement or the Plan. The Certificate is
        incorporated herein by reference and is a part of this Option
        Agreement.

       

      If
        designated in the Certificate as an Incentive Stock Option ("ISO"), this
        Option
        is intended to qualify as an Incentive Stock Option as defined in
        Section 422 of the Code. Nevertheless, to the extent that it exceeds the
        $100,000 rule of Code Section 422(d), this Option shall be treated as a
        Nonstatutory Stock Option ("NSO").

       

      2.
        Exercise of Option.
        This
        Option shall be exercisable during its term in accordance with the provisions
        of
        Section 7 of the Plan as follows:

       

      (a)
        Right to Exercise.

       

      (i) Subject
        to subsections 2(a)(ii) and 2(a)(iii) below, this Option shall be
        exercisable cumulatively according to the vesting schedule set forth in the
        Certificate, subject to the Optionee's continuing as a Service Provider on
        such
        dates.

       

      (ii) This
        Option may not be exercised for a fraction of a Share.

       

      (iii) This
        Option may be exercised, to the extent it is then vested, for three months
        after
        Optionee ceases to be a Service Provider. Upon death or Disability of the
        Optionee, this Option may be exercised, to the extent it is then vested,
        for one
        year after Optionee ceases to be Service Provider. In no event shall this
        Option
        be exercised later than the Expiration Date as provided above.

       

      (b)
        Method of Exercise.
        This
        Option shall be exercisable by delivery of an Exercise Notice (the "Exercise
        Notice") in the form as set forth in Exhibit A
        hereto
        which shall state the election to exercise the Option, the number of Shares
        with
        respect to which the Option is being exercised, and such other representations
        and agreements as may be required by the Company. The Exercise Notice shall
        be
        accompanied by payment of the aggregate Exercise Price as to all exercised
        Shares. This Option shall be deemed to be exercised upon receipt by the Company
        of such fully executed Exercise Notice accompanied by the aggregate Exercise
        Price.

       

      No
        Shares
        shall be issued pursuant to the exercise of an Option unless such issuance
        and
        such exercise complies with Applicable Laws. Assuming such compliance, for
        income tax purposes the Shares shall be considered transferred to the Optionee
        on the date on which the Option is exercised with respect to such
        Shares.

       

      3.
        Optionee's Representations.
        In the
        event the Shares have not been registered under the Securities Act of 1933,
        as
        amended, at the time this Option is exercised, the Optionee shall, if required
        by the Company, concurrently with the exercise of all or any portion of this
        Option, make to the Company certain representations and warranties as set
        forth
        in the Exercise Notice.

       

      4.
        Lock-Up Period.
        Optionee
        hereby agrees that, if so requested by the Company or any representative
        of the
        underwriters (the "Managing Underwriter") in connection with any registration
        of
        the offering of any securities of the Company under the Securities Act, Optionee
        shall not sell or otherwise transfer any Shares or other securities of the
        Company during the 180-day period (or such other period as may be requested
        in
        writing by the Managing Underwriter and agreed to in writing by the Company
        not
        to exceed 180 days) (the "Market Standoff Period") following the effective
        date of a registration statement of the Company filed under the Securities
        Act.
        The Company may impose stop-transfer instructions with respect to securities
        subject to the foregoing restrictions until the end of such Market Standoff
        Period.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      5.
        Method of Payment.
        Payment
        of the aggregate Exercise Price shall be by any of the following, or a
        combination thereof, at the election of the Optionee (to the extent permitted
        under Section 16(a) of the Plan and all other Applicable
        Laws):

       

      (a)   
        cash;

       

      (b)   
        check;

       

      (c)   
        consideration received by the Company under a formal cashless exercise program
        adopted by the Company in connection with the Plan; or

       

      (d)  
        surrender of other Shares which, (i) have been owned by the Optionee for
        the requisite period necessary to avoid a charge to the Company's earnings
        for
        financial reporting purposes on the date of surrender, and (ii) have a Fair
        Market Value on the date of surrender equal to the aggregate Exercise Price
        of
        the exercised Shares.

       

      6.
        Restrictions on Exercise.
        This
        Option may not be exercised (i) until such time as the Plan has been
        approved by the stockholders of the Company, or (ii) if the issuance of
        such Shares upon such exercise or the method of payment of consideration
        for
        such shares would not be permitted under Section 16(a) of the Plan or would
        constitute a violation of any Applicable Law.

       

      7.
        Non-Transferability of Option.
        This
        Option may not be transferred in any manner otherwise than by will or by
        the
        laws of descent or distribution and may be exercised during the lifetime
        of
        Optionee only by Optionee. The terms of the Plan and this Option Agreement
        shall
        be binding upon the executors, administrators, heirs, successors and assigns
        of
        the Optionee.

       

      8.
        Term
        of Option.
        The term
        of this Option shall begin on the grant date set forth in the Certificate
        and
        shall expire on the Expiration Date. This Option may be exercised only within
        such term, and may be exercised during such term only in accordance with
        the
        Plan and the terms of this Option Agreement.

       

      9.
        Rights as Stockholder.
        Until
        the issuance of the Shares (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 stock, notwithstanding the exercise of the Option.
        The Shares shall be issued to the Optionee as soon as practicable after the
        Option is exercised. No adjustment shall be made for a dividend or other
        right
        for which the record date is prior to the date of issuance except as provided
        in
        Section 7(d) of the Plan.

       

      10.
        Restrictive Legends and Stop-Transfer Orders.

       

      (a)
        Legends.
        Optionee
        understands and agrees that the Company shall cause legends to be placed
        upon
        any certificate(s) evidencing ownership of the Shares in order to evidence
        any
        restrictions on the transfer of the Shares set forth in this Option Agreement
        or
        in the Plan, together with any other legends that may be required by the
        Company
        or by state or federal securities laws.

       

      (b)
        Stop-Transfer Notices.
        Optionee
        agrees that, in order to ensure compliance with the restrictions referred
        to
        herein, the Company may issue appropriate "stop transfer" instructions to
        its
        transfer agent, if any, and that, if the Company transfers its own Shares,
        it
        may make appropriate notations to the same effect in its own
        records.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c)
        Refusal to Transfer.
        The
        Company shall not be required (i) to transfer on its books any Shares that
        have been sold or otherwise transferred in violation of any of the provisions
        of
        this Option Agreement or (ii) to treat as owner of such Shares or to accord
        the right to vote or pay dividends to any purchaser or other transferee to
        whom
        such Shares shall have been so transferred.

       

      11.
        Tax
        Consequences.
        Set
        forth below is a brief summary as of the date of this Option of some of the
        federal tax consequences of exercise of this Option and disposition of the
        Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS
        ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
        EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

       

      (a)
        Exercise of NSO.
        There
        may be a regular federal income tax liability upon the exercise of an NSO.
        The
        Optionee will be treated as having received compensation income (taxable
        at
        ordinary income tax rates) equal to the excess, if any, of the Fair Market
        Value
        of the exercised Shares on the date of exercise over the Exercise Price.
        If
        Optionee is an Employee or a former Employee, the Company will be required
        to
        withhold from Optionee's compensation or collect from Optionee and pay to
        the
        applicable taxing authorities an amount in cash equal to a percentage of
        this
        compensation income at the time of exercise, and may refuse to honor the
        exercise and refuse to deliver Shares if such withholding amounts are not
        delivered at the time of exercise.

       

      (b)
        Exercise of ISO.
        If this
        Option qualifies as an ISO, there will be no regular federal income tax
        liability upon the exercise of the Option, although the excess, if any, of
        the
        Fair Market Value of the exercised Shares on the date of exercise over the
        Exercise Price will be treated as an adjustment to the alternative minimum
        tax
        for federal tax purposes and may subject the Optionee to the alternative
        minimum
        tax in the year of exercise.

       

      (c)
        Disposition of Shares.
        In the
        case of an NSO, if Shares are held for more than one year after the date
        of
        exercise of the Option, any gain realized on disposition of the Shares will
        be
        treated as long-term capital gain for federal income tax purposes. In the
        case
        of an ISO, if Shares transferred pursuant to the Option are held for more
        than
        one year after exercise and more than two years after the grant date of the
        Option, any gain realized on disposition of the Shares will also be treated
        as
        long-term capital gain for federal income tax purposes. If Shares purchased
        under an ISO are disposed of within one year after exercise or two years
        after
        the grant date of the Option, any gain realized on such disposition will
        be
        treated as compensation income in the year of such disposition (taxable at
        ordinary income rates) to the extent of the difference between the Exercise
        Price of the exercised Shares and the lesser of (i) the Fair Market Value
        of the exercised Shares on the date of exercise, or (ii) the sale price of
        the exercised Shares. Different rules may apply if the Shares are subject
        to a
        substantial risk of forfeiture (within the meaning of Section 83 of the
        Code) at the time of purchase. Any additional gain will be taxed as capital
        gain, which will be long-term or short-term depending on the period that
        the ISO
        Shares were held.

       

      (d)
        Notice of Disqualifying Disposition of ISO Shares.
        If the
        Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise
        disposes of any of the Shares acquired pursuant to the ISO on or before the
        later of (i) the date two years after the grant date of the Option, or
        (ii) the date one year after the date of exercise, the Optionee shall
        immediately notify the Company in writing of such disposition. Optionee agrees
        that Optionee may be subject to income tax withholding by the Company on
        the
        compensation income recognized by the Optionee as a result of such disqualifying
        disposition.

       

      (e)
        Withholding Taxes.
        Optionee
        agrees to make appropriate arrangements with the Company (or any parent or
        subsidiary of the Company employing or retaining Optionee) for the satisfaction
        of all Federal, state, local and foreign income and employment tax withholding
        requirements applicable to the Option exercise. Optionee acknowledges and
        agrees
        that the Company may refuse to honor the exercise and refuse to deliver the
        Shares if such withholding amounts are not delivered at the time of
        exercise.

       

      12.
        Entire Agreement; Governing Law.
        The Plan
        is incorporated herein by reference. The Plan and this Option Agreement
        (including the Certificate and all of the exhibits, which are parts of this
        Agreement) constitute the entire agreement of the parties with respect to
        the
        subject matter hereof and supersede in their entirety all prior undertakings
        and
        agreements of the Company and Optionee with respect to the subject matter
        hereof, and may not be modified adversely to the Optionee's interest except
        by
        means of a writing signed by the Company and Optionee. This Option Agreement
        is
        governed by the internal substantive laws but not the choice of law rules
        of
        California.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      13.
        No
        Guarantee of Continued Service.
        OPTIONEE
        ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING
        SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE
        WILL
        OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION
        OR
        ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
        THIS
        AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE
        SET
        FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
        ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD,
        OR AT
        ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S
        RIGHT TO TERMINATE OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME,
        WITH OR WITHOUT CAUSE.

       

      14.
        Acknowledgement.
        By
        accepting this Option, Optionee acknowledges receipt of a copy of the Plan
        and
        represents that he or she is familiar with the terms and provisions thereof,
        and
        accepts this Option subject to all of the terms and provisions thereof. Further,
        Optionee acknowledges that Optionee has reviewed the Plan and this Option
        Agreement (including the Certificate and all of the exhibits, which are parts
        of
        this Agreement) in their entirety, has had an opportunity to obtain the advice
        of counsel prior accepting this Option and fully understands all provisions
        of
        the Option. Further, Optionee agrees to accept as binding, conclusive and
        final
        all decisions or interpretations of the Administrator upon any questions
        arising
        under the Plan or this Option. Optionee further agrees to notify the Company
        upon any change in his or her residence address.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
        A

       

      EXERCISE
        NOTICE

       

      
        	
                 

              	
                To:

              	
                WHERIFY
                  WIRELESS, INC.

                (the "Company")

              	
                 

              
	
                 

              	
                From:

              	
                 

              	
                 

              
	
                 

              	
                Date:

              	
                 

              	
                 

              
	
                 

              	
                 

                (Last
                  ( (Last Name) (First Name) (M.I.)

              

      

       

      Pursuant
        to the provisions of the WHERIFY WIRELESS, INC. 2004
        Stock Plan (the "Plan"), Certificate of Stock Option Grant and Option Agreement
        under which the following stock option(s) was/were granted, I hereby elect
        to
        exercise the following stock option(s) granted to me by the Company (as defined
        in the Plan) to purchase shares of Company Common Stock (the
        "Shares"):

       

      Grant
        Exercise Information:

       

      
        	
                1

              	 	
                2

              	 	
                3

              	 	
                4

              	 	
                5

              	 	
                6

              	 	
                7

              
	
                Grant

                Number
                  (if

                applicable)

              	 	
                Grant Date

              	 	
                Grant
                  Type

                (Check One)

              	 	
                Grant

                Price Per

                Share

              	 	
                # of Shares

                to
                  Exercise

              	 	
                Amount Due

                For
                  Stock

              	 	
                Amount Due

                for
                  Taxes

              
	
                 

              	 	
                 

              	 	
                o ISO
                  o NSO

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                 

              	 	
                 

              	 	
                o ISO
                  o NSO

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                 

              	 	
                 

              	 	
                o ISO
                  o NSO

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                 

              	 	
                 

              	 	
                o ISO
                  o NSO

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                 

              	 	
                 

              	 	
                o ISO
                  o NSO

              	 	
                 

              	 	
                 

              	 	
                 

              	 	
                 

              
	
                 

              	 	
                 

              	 	
                o ISO
                  o NSO

              	 	
                Totals

              	 	
                (A)

              	 	
                (B)

              	 	
                (C)

              

      

       

      Method
        Of
        Payment: o Check

      ***If
        check not enclosed, please indicate:

      Method
        of Payment  
        Total Due for Exercise (B+C): $

       
        

      TO
        COMPLETE YOUR STOCK OPTION EXERCISE, YOU MUST DO THE FOLLOWING:

       

      1. Review
        the Terms and Conditions of Stock Option Exercise attached as Exhibit B to
        this document.

       

      2. Review
        and complete the terms of purchase set forth below.

       

      Terms
        of
        Purchase:

       

      By
        signing this Exercise Notice, I hereby represent and warrant to the Company
        that
        I have read and agree to (i) all of the Terms and Conditions of Stock
        Option Exercise attached hereto as Exhibit B and (ii) all of the terms
        and conditions of the Option Agreement (including exhibits).

       

      I
        am
        hereby delivering to the Company: (i) this fully completed and executed
        Exercise Notice and (ii) the full purchase price for the
        Shares.

       

      I
        understand that, if I am an officer or director of the Company, I may be
        subject
        to additional requirements under Federal securities regulations which pertain
        to
        this type of transaction.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
        B

       

      TERMS
        AND CONDITIONS OF STOCK OPTION EXERCISE

       

      1.
        Exercise.
        The
        Optionee (the "Optionee") identified on the Exercise Notice to which these
        Terms
        and Conditions of Stock Option Exercise (these "Terms and Conditions") are
        attached has elected to exercise the option (the "Option") to purchase shares
        of
        Common Stock of the Company (as defined in the Wherify Wireless, Inc. 2004
        Stock
        Plan) identified on the Exercise Notice, and thereby purchase from the Company
        that number of shares of the Company's Common Stock identified on the Exercise
        Notice (the "Shares") at the applicable exercise price per share set forth
        in
        the Option Agreement (the "Exercise Price"), and subject to the terms and
        conditions of: (i) the 2004 Stock Plan (the "Plan"), (ii) the Stock
        Option Agreement (including all exhibits thereto and the Certificate of Stock
        Option Grant (the "Certificate")) pursuant to which the Company granted the
        Option to Optionee (the "Option Agreement"), and (iii) the Exercise Notice,
        including these Terms and Conditions. Unless otherwise defined herein, the
        terms
        defined in the Plan shall have the same defined meanings in these Terms and
        Conditions.

       

      2.
        Delivery of Payment.
        Purchaser herewith delivers to the Company the full purchase price of the
        Shares, as set forth in the Option Agreement and any and all withholding
        taxes
        due in connection with the exercise of the Option.

       

      3.
        Representations of Optionee.
        Optionee
        acknowledges that Optionee has received, read and understood the Plan and
        the
        Option Agreement (including the Certificate and all of the exhibits, which
        are
        part of the Option Agreement) and agrees to abide by and be bound by their
        terms
        and conditions. Optionee understands that Optionee may suffer adverse tax
        consequences as a result of Optionee's purchase or disposition of the Shares.
        Optionee represents that Optionee has consulted with any tax consultants
        Optionee deems advisable in connection with the purchase or disposition of
        the
        Shares and that Optionee is not relying on the Company for any tax advice.
        Optionee understands and agrees that the Company shall cause the legends
        to be
        placed upon any certificate(s) evidencing ownership of the Shares in order
        to
        evidence any restrictions on the transfer of the Shares set forth in the
        Option
        Agreement or in the Plan, together with any other legends that may be required
        by the Company or by state or federal securities laws.

       

      4.
        Investment Representations.
        In the
        event that the Shares have not been registered under the Securities Act of
        1933,
        as amended (the "Securities Act"), at the time of exercise, then in connection
        with the purchase of the Shares, the Optionee represents to the Company the
        following:

       

      (a) Optionee
        is aware of the Company's business affairs and financial condition and has
        acquired sufficient information about the Company to reach an informed and
        knowledgeable decision to acquire the Shares. Optionee is acquiring these
        Shares
        for investment for Optionee's own account only and not with a view to, or
        for
        resale in connection with, any "distribution" thereof within the meaning
        of the
        Securities Act.

       

      (b) Optionee
        acknowledges and understands that the Shares constitute "restricted securities"
        under the Securities Act and have not been registered under the Securities
        Act
        in reliance upon a specific exemption therefrom, which exemption depends
        upon,
        among other things, the bona fide nature of Optionee's investment intent
        as
        expressed herein. In this connection, Optionee understands that, in the view
        of
        the Securities and Exchange Commission, the statutory basis for such exemption
        may be unavailable if Optionee's representation was predicated solely upon
        a
        present intention to hold these Shares for the minimum capital gains period
        specified under tax statutes, for a deferred sale, for or until an increase
        or
        decrease in the market price of the Shares, or for a period of one year or
        any
        other fixed period in the future. Optionee further understands that the Shares
        must be held indefinitely unless they are subsequently registered under the
        Securities Act or an exemption from such registration is available. Optionee
        further acknowledges and understands that the Company is under no obligation
        to
        register the Shares. Optionee understands that the certificate evidencing
        the
        Shares will be imprinted with a legend which prohibits the transfer of the
        Shares unless they are registered or such registration is not required in
        the
        opinion of counsel satisfactory to the Company and with any other legend
        required under applicable state securities laws.

       

      (c) Optionee
        is familiar with the provisions of Rule 701 and Rule 144, each
        promulgated under the Securities Act, which, in substance, permit limited
        public
        resale of "restricted securities" acquired, directly or indirectly from the
        issuer thereof, in a non-public offering subject to the satisfaction of certain
        conditions. Rule 701 provides that if the issuer qualifies under
        Rule 701 at the time of the grant of the Option to the Optionee, the
        exercise will be exempt from registration under the Securities Act. In the
        event
        the Company becomes subject to the reporting requirements of Section 13 or
        15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter
        (or such longer period as any market stand-off agreement may require) the
        Shares
        exempt under Rule 701 may be resold, subject to the satisfaction of certain
        of the conditions specified by Rule 144, including: (1) the resale
        being made through a broker in an unsolicited "broker's transaction" or in
        transactions directly with a market maker (as said term is defined under
        the
        Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the
        availability of certain public information about the Company, (3) the
        amount of Shares being sold during any three month period not exceeding the
        limitations specified in Rule 144(e), and (4) the timely filing of a
        Form 144, if applicable.

       
        

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      In
        the
        event that the Company does not qualify under Rule 701 at the time of grant
        of the Option, then the Shares may be resold in certain limited circumstances
        subject to the provisions of Rule 144, which requires the resale to occur
        not less than one year after the later of the date the Shares were sold by
        the
        Company or the date the Shares were sold by an affiliate of the Company,
        within
        the meaning of Rule 144; and, in the case of acquisition of the Shares by
        an affiliate, or by a non-affiliate who subsequently holds the Shares less
        than
        two years, the satisfaction of the conditions set forth in sections (1),
        (2),
        (3) and (4) of the paragraph immediately above.

       

      (d) Optionee
        further understands that in the event all of the applicable requirements
        of
        Rule 701 or 144 are not satisfied, registration under the Securities Act,
        compliance with Regulation A, or some other registration exemption will be
        required; and that, notwithstanding the fact that Rules 144 and 701 are not
        exclusive, the Staff of the Securities and Exchange Commission has expressed
        its
        opinion that persons proposing to sell private placement Shares other than
        in a
        registered offering and otherwise than pursuant to Rules 144 or 701 will
        have a substantial burden of proof in establishing that an exemption from
        registration is available for such offers or sales, and that such persons
        and
        their respective brokers who participate in such transactions do so at their
        own
        risk. Optionee understands that no assurances can be given that any such
        other
        registration exemption will be available in such event.

       

      5.
        Lock-Up Period.
        Optionee
        hereby agrees that, if so requested by the Company or any representative
        of the
        underwriters (the "Managing Underwriter") in connection with any registration
        of
        the offering of any securities of the Company under the Securities Act, Optionee
        shall not sell or otherwise transfer any Shares or other securities of the
        Company during the 180-day period (or such other period as may be requested
        in
        writing by the Managing Underwriter and agreed to in writing by the Company
        not
        to exceed 180 days) (the "Market Standoff Period") following the effective
        date of a registration statement of the Company filed under the Securities
        Act.
        The Company may impose stop-transfer instructions with respect to securities
        subject to the foregoing restrictions until the end of such Market Standoff
        Period.

       

      6.
        Successors and Assigns.
        The
        Company may assign any of its rights under this Exercise Notice to single
        or
        multiple assignees, and the terms and conditions of this Exercise Notice
        shall
        inure to the benefit of the successors and assigns of the Company. Subject
        to
        the restrictions on transfer herein set forth, the terms and conditions of
        this
        Exercise Notice shall be binding upon Optionee and his or her heirs, executors,
        administrators, successors and assigns.

       

      7.
        Interpretation.
        Any
        dispute regarding the interpretation of this Exercise Notice shall be submitted
        by Optionee or by the Company forthwith to the Administrator which shall
        review
        such dispute at its next regular meeting. The resolution of such a dispute
        by
        the Administrator shall be final and binding on all parties.

       

      8.
        Governing Law; Severability.
        This
        Exercise Notice is governed by the internal substantive laws, but not the
        choice
        of law rules, of California.

       

      9.
        Entire Agreement.
        The Plan
        and Option Agreement (including the Certificate and all exhibits, which are
        parts of the Option Agreement) are incorporated herein by reference. This
        Exercise Notice, the Plan, the Certificate, and the Option Agreement constitute
        the entire agreement of the parties with respect to the subject matter hereof
        and supersede in their entirety all prior undertakings and agreements of
        the
        Company and Optionee with respect to the subject matter hereof, and may not
        be
        modified adversely to the Optionee's interest except by means of a writing
        signed by the Company

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