Document:

FORM OF UNDERWRITER'S WARRANT

 Exhibit 4.2 
  
 E-FUTURE INFORMATION TECHNOLOGY INC. 
  
 WARRANT AGREEMENT 
  
                     , 2005 
  
 Anderson & Strudwick, Incorporated 
 707
East Main Street 
 20th
Floor 
 Richmond, Virginia 23219 
  
 Ladies and Gentlemen: 
  
 e-Future Information Technology Inc., a Cayman Islands corporation (the “Company”), agrees to issue and sell to you warrants (the
“Warrants”) to purchase the number of ordinary shares, of the Company set forth herein, subject to the terms and conditions contained herein. 
  
 1. Issuance of Warrants; Exercise Price. The Warrants, which shall be in the form attached hereto as Exhibit A, shall be issued to you
concurrently with the execution hereof in consideration of the payment by you to the Company of the sum of US $0.001 cash per ordinary share subject to the Warrants, the receipt and sufficiency of which are hereby acknowledged. The Warrants shall
provide that you and such other holder of holders of the Warrants shall have the right to purchase an aggregate of                     
ordinary shares for an exercise price equal to $7.20 per share (the “Exercise Price”) or $             in the aggregate. The number, character and Exercise Price of such
shares are subject to adjustment as hereinafter provided, and the term “ordinary shares” shall mean, unless the context otherwise requires, the stock and other securities and property receivable upon exercise of the Warrants. The term
“Exercise Price” shall mean, unless the context otherwise requires, the price per ordinary share purchasable under the Warrants as set forth in this Section 1, as adjusted from time to time pursuant to Section 5. 
  
 2. Notices of Record Date; Etc. In the event of (i) any taking by the
Company of a record date with respect to the holders of any class of securities of the Company for purposes of determining which of such holders are entitled to dividends or other distributions, or any right to subscribe for, purchase or otherwise
acquire shares of stock of any class or any other securities or property, or to receive any other right, (ii) any capital reorganization of the Company, or reclassification or recapitalization of capital stock of the Company or any transfer in one
or more related transactions of all or a majority of the assets or revenue or income generating capacity of the Company to, or consolidation or merger of the Company with or into, any other entity or person, or (iii) any voluntary or involuntary
dissolution or winding up of the Company, then and in each such event the Company will mail or cause to be mailed to each holder of a Warrant at the time outstanding a notice specifying, as the case may be, (a) the date on which any such record is
to be taken for the purpose of such dividend, distribution or right, and stating the 

  

 
amount and character of such dividend, distribution or right; or (B) the date on which any such reorganization, reclassification, recapitalization, transfer,
consolidation, merger, conveyance, dissolution, liquidation or winding-up is to take place and the time, if any is to be fixed, as of which the holders of record of ordinary shares (or any other class of stock or securities of the Company, or
another issuer pursuant to Section 5, receivable upon the exercise of the Warrants) shall be entitled to exchange their ordinary shares (or such other stock or securities) for securities or other property deliverable upon such event. Any such notice
shall be deposited in the United States mail, postage prepaid, at least ten (10) days prior to the date therein specified, and the holder(s) of the Warrant(s) may exercise the Warrant(s) and participate in such event as a registered holder of
ordinary shares, upon exercise of the Warrant(s) so held, within the ten (10) day period from the date of mailing such notice. 
  
 3. No Impairment. The Company shall not, by amendment of its organizational documents or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other action, avoid or seek to avoid the observance or performance of any other action, avoid or seek to avoid the observance or performance of any of the terms of this
Agreement or of the Warrants, but will at all times in good faith take any and all action as may be necessary in order to protect the rights of the holders of the Warrants against impairment. Without limiting the generality of the foregoing, the
Company (a) will at all times reserve and keep available, solely for issuance and delivery upon exercise of the Warrants, ordinary shares issuable from time to time upon exercise of the Warrants, (b) will not increase the par value of any shares of
stock receivable upon exercise of the Warrants above the amount payable in respect thereof upon such exercise, and (c) will take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid
and non-assessable stock upon the exercise of the Warrants, or any of them. 
  
 4. Exercise of Warrants. 
  
 (a) Exercise for Cash. At any time and from time to time on and after                     , 2006 and
expiring on                     , 2011 at              p.m., Richmond,
Virginia time (the “Exercise Period”), Warrants may be exercised as to all or any portion of the whole number of ordinary shares covered by the Warrants by the holder thereof by surrender of the Warrants, accompanied by a subscription for
shares to be purchased in the form attached hereto as Exhibit B and by a check payable to the order of the Company in the amount required for purchase of the ordinary shares as to which the Warrant is being exercised, delivered to the Company
at its principal office at eFuture Information Technology Inc., 3/F, Tower E2, Orient Plaza, No. 1 East Chang An Avenue, Dong Cheng District, Beijing, China 100738, Attention: Chairman. 
  
 (b) Cashless Exercise. In addition, during the Exercise Period, Warrants may be exercised as to all
or any portion of the whole number of ordinary shares covered by the Warrants by the holder thereof by surrender of Warrants together with irrevocable instructions to the Company to issue in exchange for the Warrants the number of ordinary shares
equal to the product of (i) the number of ordinary shares as to which the Warrants are being exercised multiplied by (ii) a fraction the numerator of which is the Current Value of an ordinary share less the Exercise Price therefor and the
denominator of which is such Current Value. In the case of 

  

 2 

 
the purchase of less than all the ordinary shares purchasable under the Warrants, the Company shall cancel such Warrants and shall execute and deliver new
Warrants of like tenor for the unexercised balance. For the purposes hereof, “Exercise Date” shall mean the date on which all deliveries required to be made to the Company upon exercise of the Warrants pursuant to this Section 4 shall have
been made. 
  
 (c) Issuance of
Certificates. Upon the exercise of a Warrant in whole or in part, the Company will within five (5) days thereafter, at its expense (including the payment by the Company of any applicable issue or transfer taxes), cause to be issued in the name
of and delivered to the Warrant holder a certificate or certificates for the number of fully paid and non-assessable ordinary shares to which such holder is entitled upon exercise of the Warrant. In the event such holder is entitled to a fractional
share, in lieu thereof such holder shall be paid a cash amount equal to such fraction, multiplied by the Current Value of one full ordinary share on the date of exercise. Certificates for ordinary shares issuable by reason of the exercise of the
Warrant or Warrants shall be dated and shall be effective as of the date of the surrendering of the Warrant for exercise, notwithstanding any delays in the actual execution, issuance or delivery of the certificates for the shares so purchased. In
the event a Warrant or Warrants is exercised as to less than the aggregate amount of all ordinary shares issuable upon exercised as to less than the aggregate amount of all ordinary shares issuable upon exercise of all Warrants held by such person,
the Company shall issue a new Warrant to the holder of the Warrant so exercised covering the aggregate number of ordinary shares as to which Warrants remain unexercised. 
  
 (d) Current Value. For purposes of this section, “Current Value” is defined (i) in the case
for which a public market exists for the ordinary shares at the time of such exercise, at a price per share equal to (A) the average of the means between the closing bid and asked prices of the ordinary shares in the over-the-counter market for 20
consecutive business days commencing 30 business days before the date of such notice, (B) if the ordinary shares are quoted on Nasdaq SmallCap Market, at the average of the means of the daily closing bid and asked prices of the ordinary shares for
20 consecutive business days commencing 30 business days before the date of such notice, or (C) if the ordinary shares are listed on any national securities exchange or The Nasdaq National Market, at the average of the daily closing prices of the
ordinary shares for 20 consecutive business days commencing 30 business days before the date of such notice, and (ii) in the case no public market exists at the time of such exercise, at the Appraised Value. For the purposes of this Agreement,
“Appraised Value” is the value determined in accordance with the following procedures. For a period of five (5) days after the date of an event (a “Valuation Event”) requiring determination of Current Value at a time when no
public market exists for the ordinary shares (the “Negotiation Period”), each party to this Agreement agrees to negotiate in good faith to reach agreement upon the Appraised Value of the securities or property at issue, as of the date of
the Valuation Event, which will be the fair market value of such securities or property, without premium for control or discount for minority interests, illiquidity or restrictions on transfer. In the event that the parties are unable to agree upon
the Appraised Value of such securities or other property by the end of the Negotiation Period, then the Appraised Value of such securities or property will be determined for purposes of this Agreement by a recognized appraisal or investment banking
firm mutually agreeable to the holders of the Warrants and the Company (the “Appraiser”). If the holders of the Warrants 

  

 3 

 
and the Company cannot agree on an Appraiser within two (2) business days after the end of the Negotiation Period, the Company, on the one hand, and the
holders of the Warrants, on the other hand, will each select an Appraiser within ten (10) business days after the end of the Negotiation Period and those Appraisers will determine the fair market value of such securities or property, without premium
for control or discount for minority interests. Such independent Appraiser(s) will be directed to determine fair market value of such securities or property as soon as practicable, but in no event later than thirty (30) days from the date of its
selection. The determination by Appraiser(s) of the fair market value will be conclusive and binding on all parties to this Agreement. If there are two Appraisers, and they do not agree as to fair market value, then fair market value shall be
determined to be the average of the fair market values as determined by each Appraiser. Appraised Value of each ordinary share at a time when (i) the Company is not a reporting company under the Securities Exchange Act of 1934 and (ii) the ordinary
shares are not traded in the organized securities markets, will, in all cases, be calculated by determining the Appraised Value of the entire Company taken as a whole and dividing that value by the number of ordinary shares then outstanding, without
premium for control or discount for minority interests, illiquidity or restrictions on transfer. The costs of the Appraiser(s) will be borne by the Company. In no event will the Appraised Value of the ordinary shares be less than the per share
consideration received or receivable with respect to the ordinary shares or securities or property of the same class in connection with a pending transaction involving a sale, merger, recapitalization, reorganization, consolidation, or share
exchange, dissolution of the Company, sale or transfer of all or a majority of its assets or revenue or income generating capacity, or similar transaction. 
  
 5. Protection Against Dilution. The Exercise Price for the ordinary shares and number of ordinary shares issuable upon exercise of the Warrants is
subject to adjustment from time to time as follows: 
  
 (a) Stock Dividends, Subdivisions, Reclassifications, Etc. In case at any time or from time to time after the date of execution of this Agreement, the Company shall (i) take a record of the holders of ordinary shares for the purpose
of entitling them to receive a dividend or a distribution on ordinary shares payable in ordinary shares or other class of securities, (ii) subdivide or reclassify its outstanding shares of ordinary shares into a greater number shares, or (iii)
combine or reclassify its outstanding ordinary shares into a smaller number of shares, then, and in each such case, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such
subdivision, combination or reclassification shall be adjusted in such a manner that the Exercise Price for the shares issuable upon exercise of the Warrants immediately after such event shall bear the same ratio to the Exercise Price in effect
immediately prior to any such event as the total number of ordinary shares outstanding immediately prior to such event shall bear to the total number of ordinary shares outstanding immediately after such event. 
  
 (b) Adjustment of Number of Shares Purchasable. When
any adjustment is required to be made in the Exercise Price under this Section 5, (i) the number of ordinary shares issuable upon exercise of the Warrants shall be changed (upward to the nearest full share) to the number of ordinary shares
determined by dividing (x) an amount equal to the number of shares 

  

 4 

 
issuable pursuant to the exercise of the Warrants immediately prior to the adjustment, multiplied by the Exercise Price in effect immediately prior to the
adjustment, by (y) the Exercise Price in effect immediately after such adjustment, and (ii) upon exercise of the Warrant, the holder will be entitled to receive the number of ordinary shares of other securities referred to in Section 5(a) that such
holder would have received had the Warrant been exercised prior to the events referred to in Section 5(a). 
  
 (c) Adjustment for Reorganization, Consolidation, Merger, Etc. In case of any reorganization or consolidation of the Company with,
or any merger of the Company with or into, another entity (other than a consolidation or merger in which the Company is the surviving corporation) or in case of any sale or transfer to another entity of the majority of assets of the Company, the
entity resulting from such reorganization or consolidation or surviving such merger or to which such sale or transfer shall be made, as the case may be, shall make suitable provision (which shall be fair and equitable to the holders of Warrants) and
shall assume the obligations of the Company hereunder (by written instrument executed and mailed to each holder of the Warrants then outstanding) pursuant to which, upon exercise of the Warrants, at any time after the consummation of such
reorganization, consolidation, merger or conveyance, the holder shall be entitled to receive the stock or other securities or property that such holder would have been entitled to upon consummation if such holder had exercised the Warrants
immediately prior thereto, all subject to further adjustment as provided in this Section 5. 
  
 (d) Certificate as to Adjustments. In the event of adjustment as herein provided in paragraphs of this Section 5, the Company shall
promptly mail to each Warrant holder a certificate setting forth the Exercise Price and number of ordinary shares issuable upon exercise after such adjustment and setting forth a brief statement of facts requiring such adjustment. Such certificate
shall also set forth the kind and amount of stock or other securities or property into which the Warrants shall be exercisable after any adjustment of the Exercise Price as provided in this Agreement. 
  
 (e) Minimum Adjustment. Notwithstanding the
foregoing, no certificate as to adjustment of the Exercise Price hereunder shall be made if such adjustment results in a change in the Exercise Price then in effect of less than five cents ($0.05) and any adjustment of less than five cents ($0.05)
of any Exercise Price shall be carried forward and shall be made at the time of and together with any subsequent adjustment that, together with any subsequent adjustment that, together with the adjustment or adjustments so carried forward, amounts
to five cents ($0.05) or more; provided however, that upon the exercise of a Warrant, the Company shall have made all necessary adjustments (to the nearest cent) not theretofore made to the Exercise Price up to and including the date upon which such
Warrant is exercised. 
  
 7. Registration Rights.

  
 (a) Demand Registration Under the
Securities Act of 1933. At any time commencing after                     , 2006 through and including
                    , 2011, parties who collectively hold a majority of the ordinary shares issued or issuable upon the exercise of the
Warrants shall have the right (which right is in addition to the registration rights under Section 

  

 5 

 
7.2 hereof), exercisable by written notice to the Company, to have the Company prepare and file with the Securities and Exchange Commission (the
“Commission”), on one occasion, a registration statement and such other documents, including a prospectus, as may be necessary in the opinion of both counsel for the Company and counsel for you and the other holders, in order to comply
with the provisions of the Act, so as to permit a public offering and sale of their respective Warrants, the ordinary shares underlying the Warrants or other securities held as a result of any adjustment made pursuant to Section 5 hereof
(collectively, the “Registrable Securities”). The Company shall notify all holders of the Warrants and the ordinary shares underlying the Warrants of any such demand registration request within ten (10) days of receipt of such request. The
notified holders may participate in such demand registration by notifying the Company within ten (10) days after receiving the Company’s notification. 
  
 (b) Piggyback Registration. If, at any time commencing after
                     , 2006, through and including             ,
2013, the Company proposes to register any of its securities under the Act (other than in connection with a merger or similar transaction with a filing on a Form F-4 or pursuant to Form S-8 or similar form), it will give written notice by registered
or certified mail, at least thirty (30) days prior to the filing of each such registration statement, to you and to all other holders of the Registrable Securities, of its intention to do so. If you or any of the other holders of the Registrable
Securities notify the Company within twenty (20) days after receipt of any such notice of its or their desire to include any such securities in such proposed registration statement, the Company shall afford each of you and such holders of the
Registrable Securities, the opportunity to have any of such securities registered under such registration statement. Notwithstanding the provisions of this Section 7.2, the Company shall have the right at any time after it shall have given written
notice pursuant to this Section 7.2 (irrespective of whether a written request for inclusion of any such securities shall have been made) to elect not to file any such proposed registration statement, or to withdraw the same after the filing but
prior to the effective date thereof. 
  
 (c)
Notice to Be Delivered. The Company covenants and agrees to give written notice of any registration request under Section 7.1 by you or any holder or holders to you and to all other holders of the Warrants or the ordinary shares underlying
the Warrants within ten (10) days from the date of the receipt of any such registration request. 
  
 (d) Covenants of the Company With Respect to Registration. In connection with any registration under Section 7.1 or 7.2 hereof, the
Company covenants and agrees as follows: 
  
 (i)
The Company shall use its best efforts to file a registration statement within forty-five (45) days of receipt of any demand therefor in accordance with Section 7.1, shall use its best efforts to have any registration statement declared effective at
the earliest practicable time, and shall furnish you and each holder desiring to sell the Registrable Securities held by you or the other holders as a result of any adjustment made pursuant to the provisions of Section 5 hereof, such number of
prospectuses as shall reasonably be requested. 
  

 6 

 (ii) The Company shall pay all costs (excluding fees and expenses of counsel for you and
the other holders and any underwriting or selling commissions), fees and expenses in connection with all registration statements filed pursuant to Sections 7.1 and 7.2 hereof including, without limitation, the Company’s legal and accounting
fees, printing expenses, and blue sky fees and expenses. If the Company shall fail to comply with the provisions of Section 7.4, the Company shall, in addition to any other equitable or other relief available to you and the other holders, be liable
for any or all actual damages (which may include damages due to a loss of profit). 
  
 (iii) The Company will take all necessary action which may be required in qualifying or registering the Registrable Securities included in
a registration statement for offering and sale under the securities or blue sky laws of such states as reasonably are requested by you and the other holders, provided that the Company shall not be obligated to execute or file any general consent to
service of process or to qualify as a foreign corporation to do business under the laws of any such jurisdiction. 
  
 (iv) The Company shall indemnify you and all other holders of the Registrable Securities to be sold pursuant to any registration statement
and each person, if any, who controls you or the holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), against all loss, claim, damage, expense or
liability (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Act, the 1934 Act or otherwise, arising from such registration statement
to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify you in the Underwriting Agreement, dated             
            , 2005, by and between you and the Company (the “Underwriting Agreement”) and to provide for just and equitable contribution as set forth in the Underwriting
Agreement. 
  
 (v) You and all other holders of
the Registrable Securities to be sold pursuant to a registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company
within the meaning of Section 15 of the Act or Section 20(a) of the 1934 Act, against all loss, claim, damage or expense or liability (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever)
to which they may become subject under the Act, the 1934 Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, for specific inclusion in such registration statement to the same extent
and with the same effect as the provisions contained in the Underwriting Agreement pursuant to which you have agreed to indemnify the Company and to provide for just and equitable contribution as set forth in the Underwriting Agreement. 

 
 (vi) Nothing contained in this Agreement shall be
construed as requiring you or other holders to exercise their Warrants prior to the initial filing of any registration statement or the effectiveness thereof. 
  

 7 

 (vii) The Company shall deliver promptly to you and all other holders of the Registrable
Securities participating in the offering copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to the registration
statement and permit you and the other holders of the Registrable Securities to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of the National Association of Securities Dealers, Inc. (“NASD”); provided that you and each such holder of the Registrable Securities agrees not to disclose such information
without the prior consent of the Company. Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and
at such reasonable times and as often as you and any other holder of the Registrable Securities shall reasonably request. 
  
 (viii) If required by the underwriters in connection with an underwritten offering which includes Registrable Securities pursuant to this
Section 7, the Company shall enter into an underwriting agreement with one or more underwriters selected for such underwriting. Such underwriting agreement shall be satisfactory in form and substance to the Company, you and each other holder of the
Registrable Securities, and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the underwriters. If required by the underwriters, you and
the other holders of the Registrable Securities shall be parties to any underwriting agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that any or all the representations and warranties of
the Company to or for the benefit of such underwriters shall, to the extent that they may be applicable, also be made to and for the benefit of you and the other holders of the Registrable Securities. You and the other holders of the Registrable
Securities shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to you and the other Holders of the Registrable Securities and their intended methods of
distribution. 
  
 (ix) In connection with any
registration statement filed pursuant to Section 7 hereof, the Company shall furnish, or cause to be furnished, to you and each Holder participating in any underwritten offering and to each underwriter, a signed counterpart, addressed to you, such
holder or underwriter, of (i) an opinion of counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under the
underwriting agreement), and (ii) a “cold comfort” letter, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, a letter dated the date of the closing under the
underwriting agreement), signed by the independent public accountants who have issued a report on the Company’s financial statements included in such registration statement, in each case covering substantially the same matters with respect to
such registration statement (and the prospectus included therein) and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements, as are 

  

 8 

 
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public offerings of
securities. 
  
 (x) The Company shall promptly
notify you and each holder of the Registrable Securities covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Act, upon the Company’s discovery that, or upon the happening
of any event as a result of which, the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances under which they were made, and upon receipt of such notice you and each holder shall not effect any sale of securities and shall immediately cease utilizing or distributing such
prospectus. At the request of you or any such holder, the Company shall promptly prepare and furnish to you or such holder and each underwriter, if any, a reasonable number of copies of a supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such securities, such prospectus shall not include an 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 in the light of the circumstances under which they were made. 
  
 (xi) For purposes of this Agreement, the term “majority” in reference to you and the other holders of the Warrants or the
ordinary shares underlying the Warrants, shall mean in excess of fifty percent (50%) of the then outstanding Warrants that have not been resold to the public pursuant to Rule 144 under the Act or a registration statement filed with the Commission
under the Act. 
  
 8. Stock Exchange Listing. In the event
the Company lists its ordinary shares on any national securities exchange or market, the Company will, at its expense, also list on such exchange, upon exercise of a Warrant, all ordinary shares issuable pursuant to such Warrant. 
  
 9. Restrictive Legend. Executed copies of this Agreement shall be
filed in the principal office of the Company. Instruments evidencing all or part of the Warrants shall contain the legend shown on Exhibit A until
                    ,         , after which time such legend may be removed at the request of
the holder thereof. 
  
 10. Successors and Assigns; Binding
Effect. This Agreement shall be binding upon and inure to the benefit of you and the Company and their respective successors and permitted assigns. 
  
 11. Notices. Any notice hereunder shall be given by registered or certified mail, if to the Company, at its principal office referred to in Section
5 and, if to the holders, to their respective addresses shown in the Warrant ledger of the Company, provided that any holder may at any time on three (3) days’ written notice to the Company designate or substitute another address where notice
is to be given. Notice shall be deemed given and received after a certified or registered letter, properly addressed with postage prepaid, is deposited in the U.S. mail. 
  

 9 

 12. Severability. Every provision of this Agreement is intended to be severable. If any term or
provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the remainder of this Agreement. 
  
 13. Assignment; Replacement of Warrants. The Warrants may be sold, transferred, assigned, pledged or hypothecated by you prior to
                             ,          only to
bona fide officers of Anderson & Strudwick, Incorporated, who in turn shall be subject to the same restriction. If the Warrant or Warrants are assigned, in whole or in part, the Warrants shall be surrendered at the principal office of the
Company, and thereupon, in the case of a partial assignment, a new Warrant shall be issued to the holder thereof covering the number of ordinary shares not assigned, and the assignee shall be entitled to receive a new Warrant covering the number of
ordinary shares so assigned. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant and appropriate bond or indemnification protection, the Company shall issue a new Warrant of
like tenor. 
  
 14. Rights of Shareholders. Until
exercised, the Warrants shall not entitle the holder thereof to any of the rights of a shareholder of the Company. 
  
 15. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Virginia without giving effect
to the principles of choice of laws thereof. 
  
 16.
Definition. All references to the word “you” in this Agreement shall be deemed to apply with equal effect to any persons or entities to whom Warrants have been transferred in accordance with the terms hereof, and, where appropriate,
to any persons or entities holding ordinary shares issuable upon exercise of Warrants. 
  
 17. Headings. The headings herein are for purposes of reference only and shall not limit or otherwise affect the meaning of any of the provisions hereof. 
  

			
	Very truly yours,
	
	EFUTURE INFORMATION TECHNOLOGY, INC.
		
	By:	 	 

			
		
	 Title:
	 	 

			
		
	 Date:
	 	 

  

 10 

 Accepted as of the      day of
            , 2005. 
  

			
	ANDERSON & STRUDWICK, INCORPORATED
		
	By:	 	 

			
		
	 Title:
	 	 

			
		
	 Date:
	 	 

  

 11 

  
 EXHIBIT A 

 
 No.
             
  
                      Shares 
  
 E-FUTURE INFORMATION TECHNOLOGY, INC. 
 COMMON STOCK PURCHASE WARRANT 
  
 THIS IS TO CERTIFY that ANDERSON & STRUDWICK, INCORPORATED or its assigns as permitted in that certain Warrant Agreement (the “Warrant Agreement”) dated
                    , 2005 between the Company (as hereafter defined) and Anderson & Strudwick, Incorporated is entitled to purchase at
any time or from time to time on or after                     , 2006,
                     ordinary shares of e-Future Information Technology Inc., a Cayman Islands corporation (the “Company”), for an
exercise price per share as set forth in the Warrant Agreement referred to herein. This Warrant is issued pursuant to the Agreement, and all rights of the holder of this Warrant are further governed by, and subject to the terms and provisions of
such Warrant Agreement, copies of which are available upon request to the Company. The holder of this Warrant and the shares issuable upon the exercise hereof shall be entitled to the benefits, rights and privileges and subject to the obligations,
duties and liabilities provided in the Warrant Agreement. 
  
 UNTIL                     ,         , NEITHER ANDERSON & STRUDWICK, INCORPORATED
NOR ANY ASSIGNEE OF ALL OR A PORTION OF THE RIGHTS PURSUANT TO THIS WARRANT MAY SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE ANY OF ITS RIGHTS PURSUANT TO THIS WARRANT OTHER THAN TO BONA FIDE OFFICERS OF ANDERSON & STRUDWICK, INCORPORATED.

  
 Subject to the provisions of the Securities Act of 1933, of
the Warrant Agreement and of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, only to the extent expressly permitted in such documents and then only at the office of the Company at e-Future Information
Technology Inc., 3/F, Tower E2, Orient Plaza, No. 1 East Chang An Avenue, Dong Cheng District, Beijing, China 100738, Attention: Chairman, by the holder hereof or by a duly authorized attorney-in-fact, upon surrender of this Warrant duly endorsed,
together with the Assignment hereof duly endorsed. Until transfer hereof on the books of the Company, the Company may treat the registered holder hereof as the owner hereof for all purposes. 
  
 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed and
its corporate seal to be hereunto affixed by its proper corporate officers thereunto duly authorized. 
  

					
	E-FUTURE INFORMATION TECHNOLOGY INC.
			
	By:	 	 	 	(SEAL)
	 	 	 President
	 	 

  

			
	ATTEST:
	
	 
	 Secretary

  

  
 EXHIBIT B 

 
 FORM OF SUBSCRIPTION 
  
 To E-Future Information Technology Inc.: 
  
 The undersigned, the holder of Warrant Number
            , hereby irrevocably elects to exercise the purchase right represented by such Warrant, and to purchase thereunder
                    * shares of ordinary shares of e-Future Information Technology, Inc. 
  
 As payment therefor, the undersigned (mark one): 
  
              herewith makes a payment in cash or by check of U.S.
$                    , or 
  
              requests to utilize the cashless exercise provision in Section 4(b) of the
Warrant Agreement. 
  
 Further, the undersigned requests that the
certificate or certificates for such shares be issued in the name of and delivered to the undersigned. The undersigned acknowledges and agrees that ordinary shares to be received by the undersigned are subject to the restrictions on transfer set
forth in the Warrant. 
  

			
	
	 
	(Signature)
	
	 
	
	 
	(Address)

  
 Dated:
                                     
  

	*	Insert here the number of shares set forth on the face of the Warrant (or, in the case of a partial exercise, the portion thereof as to which the Warrant is being exercised), in
either case without making any adjustment (which adjustment will be made in the issuance of such ordinary shares, other stock, securities, property, or cash) for additional ordinary shares or any other stock or other securities or property or cash
that, pursuant to the adjustment provisions of the Warrant, is deliverable upon exercise. 

  

  
 FORM OF ASSIGNMENT

  
 (To be signed only upon transfer of Warrant) 
  
 For value received, the undersigned hereby sells, assigns and transfers unto
                     the right represented by Warrant Number             
to purchase              ordinary shares of e-Future Information Technology, Inc. to which the attached Warrant related, and appoints
                     as Attorney-in-Fact to transfer such right on the books of e-Future Information Technology, Inc. with the full power of
substitution in the premises. 
  
 The undersigned represents and
warrants that the transfer of the attached Warrant is permitted by the terms of the Warrant Agreement pursuant to which the attached Warrant has been issued, and the transferee hereof, by acceptance of this Assignment, agrees to be bound by the
terms of the Warrant Agreement with the same force and effect as if a signatory thereto. 
  

			
	
	 
	(Signature)
	
	 
	
	 
	(Address)

  
 Dated:Xcyte Therapies, Inc. 2003 Stock Plan

  
 Exhibit 10.1

  
 XCYTE THERAPIES, INC. 
  
 2003 STOCK PLAN 
  
 1. Purposes of the Plan. The purposes of this 2003 Stock Plan
are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Consultants and Directors and to promote the success of the Company’s business. Options granted
under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an Option and subject to the applicable provisions of Section 422 of the Code and the regulations and
interpretations promulgated thereunder. Stock Grants, Stock Units, Stock Appreciation Rights and Stock Purchase Rights may also be granted under the Plan. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Administrator” means the Board or its Committee appointed pursuant to Section 4
of the Plan. 
  
 (b)
“Affiliate” means an entity other than a Subsidiary (as defined below) which, together with the Company, is under common control of a third person or entity. 
  
 (c) “Applicable Laws” means the legal requirements relating to the administration of
stock option and restricted stock plans, including under applicable U.S. state corporate laws, U.S. federal and applicable state securities laws, other U.S. federal and state laws, the Code, any Stock Exchange rules or regulations and the applicable
laws, rules and regulations of any other country or jurisdiction where Options or Stock Awards are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time. 
  
 (d) “Award” means a Stock Award or
an Option granted in accordance with the terms of the Plan. 
  
 (e) “Award Agreement” means a Stock Award Agreement and/or Option Agreement, which may be in written or electronic format, in such form and with such terms and conditions as may be specified by
the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement is subject to the terms and conditions of the Plan. 
  
 (f) “Award Exchange Program” means a program approved by the Administrator whereby outstanding Awards are
exchanged for Awards with a lower exercise price or purchase price or are amended to decrease the exercise price or purchase price as a result of a decline in the Fair Market Value of the Common Stock.  
  
 (g) “Board” means the Board of
Directors of the Company. 
  
 (h)
“Cause” means (i) Participant’s material breach of any of the terms of any written agreement between the Participant and the Company; (ii) Participant’s conviction of a felony harmful to the reputation of the
Company or of a crime involving moral turpitude; 
  

 1 

 
(iii) Participant’s willful misconduct in the performance of his or her duties and responsibilities to the Company; (iv) Participant’s violation of
his or her duty of loyalty or his or her obligations with respect to proprietary information or trade secrets of the Company or to any party to whom the Participant owes an obligation of nondisclosure as a result of his or her relationship with the
Company; (v) Participant’s violation of the Company’s nondiscrimination policies or policies prohibiting harassment; or (vi) Participant’s commission of any other intentional wrongful act that could cause the Company to be liable to a
third party. The determination as to whether a Participant’s Continuous Service is terminated for Cause shall be made in good faith by the Company and shall be final and binding on the Participant. The foregoing definition does not in any way
limit the Company’s ability to terminate a Participant’s employment or consulting relationship at any time as provided in Section 5(d) below. For purposes of this definition of Cause, the term “Company” will be interpreted to
include any Subsidiary, Parent, Affiliate or successor thereto, as appropriate. 
  
 (i) “Change of Control” means (i) a sale of all or substantially all of the Company’s assets, or (ii) any
merger, consolidation or other business combination transaction of the Company with or into another corporation, entity or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of the
Company outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power
represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, or (iii) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or
persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company. 
  
 (j) “Code” means the Internal
Revenue Code of 1986, as amended. 
  
 (k)
“Committee” means one or more committees or subcommittees of the Board appointed by the Board to administer the Plan in accordance with Section 4 below. 
  
 (l) “Common Stock” means the Common Stock of the Company. 
  
 (m) “Company” means Xcyte Therapies,
Inc., a Delaware corporation. 
  
 (n)
“Consultant” means any person, including an advisor, who is engaged by the Company or any Parent, Subsidiary or Affiliate to render services and is compensated for such services. 
  
 (o) “Continuous Service Status”
means the absence of any interruption or termination of service as an Employee, Director or Consultant. Continuous Service Status as an Employee, Director or Consultant shall not be considered interrupted in the case of: (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Administrator, provided that such leave is for a period of not more than ninety (90) days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute,
or unless provided otherwise 

  

 2 

 
pursuant to Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company, its Parents,
Subsidiaries, Affiliates or their respective successors. A change in the capacity in which the Participant renders service to the Company or a Parent, Subsidiary or Affiliate of the Company, such as a change in status from an Employee to a
Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Service Status. 
  
 (p) “Corporate Transaction” means a sale of all or substantially all of the Company’s assets, or a merger,
consolidation or other capital reorganization or transaction of the Company with or into another corporation, entity or person, and includes a Change of Control. 
  
 (q) “Director” means a member of the Board. 
  
 (r) “Employee” means any person
employed by the Company or any Parent, Subsidiary or Affiliate, with the status of employment determined based upon such factors as are deemed appropriate by the Administrator in its discretion, subject to any requirements of the Code or the
Applicable Laws. The payment by the Company of a director’s fee to a Director shall not be sufficient to constitute “employment” of such Director by the Company. 
  
 (s) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

  
 (t) “Fair Market
Value” means, as of any date, the fair market value of the Common Stock, as determined by the Administrator in good faith on such basis as it deems appropriate and applied consistently with respect to Participants. Whenever possible,
the determination of Fair Market Value shall be based upon the closing price for the Shares as reported in the Wall Street Journal for the applicable date. 
  
 (u) “Incentive Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code, as designated in the applicable Option Agreement. 
  
 (v) “Involuntary Termination” means termination of a Participant’s Continuous Service Status under the
following circumstances: (i) termination without Cause by the Company or a Subsidiary, Parent, Affiliate or successor thereto, as appropriate, other than on account of the Participant’s death or disability; or (ii) voluntary resignation by the
Participant within 30 days following (A) a reduction in the Participant’s then-current base salary of more than 20%, other than in connection with a similar reduction in the base salaries of similarly situated employees or consultants as part
of a general salary level reduction; or (B) relocation by the Company or a Subsidiary, Parent, Affiliate or successor thereto, as appropriate, of the Participant’s principal work site to a facility or location by more than 50 miles from the
Participant’s principal work site immediately prior to such relocation. 
  
 (w) “Listed Security” means any security of the Company that is listed or approved for listing on a national
securities exchange or designated or approved for designation as a national market system security on an interdealer quotation system by the National Association of Securities Dealers, Inc. 
  

 3 

 (x) “Named Executive” means any individual who, on the last day
of the Company’s fiscal year, is the chief executive officer of the Company (or is acting in such capacity) or is among the four most highly compensated officers of the Company (other than the chief executive officer). Such officer status shall
be determined pursuant to the executive compensation disclosure rules under the Exchange Act. 
  
 (y) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option, as
designated in the applicable Option Agreement. 
  
 (z) “Option” means a stock option granted pursuant to the Plan. 
  
 (aa) “Option Agreement” means a written document, the form(s) of which shall be approved from time to time by the
Administrator, reflecting the terms of an Option granted under the Plan and includes any documents attached to or incorporated into such Option Agreement, including, but not limited to, a notice of stock option grant and a form of exercise notice.

  
 (bb) “Optioned Stock”
means the Common Stock subject to an Option. 
  
 (cc) “Optionee” means an Employee, Director or Consultant who receives an Option. 
  
 (dd) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section
424(e) of the Code, or any successor provision. 
  
 (ee) “Participant” means any holder of one or more Options or Stock Awards or the Shares issuable or issued upon exercise of such Awards, under the Plan. 
  
 (ff) “Plan” means this 2003 Stock Plan. 
  
 (gg) “Qualifying Performance
Criteria” means any one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit, Affiliate or business segment, either
individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison
group, in each case as specified by the Committee in the Award: (i) cash flow; (ii) earnings (including gross margin, earnings before interest and taxes, earnings before taxes, and net earnings); (iii) earnings per share; (iv) growth in earnings or
earnings per share; (v) stock price; (vi) return on equity or average stockholders’ equity; (vii) total stockholder return; (viii) return on capital; (ix) return on assets or net assets; (x) return on investment; (xi) revenue; (xii) income or
net income; (xiii) operating income or net operating income; (xiv) operating profit or net operating profit; (xv) operating margin; (xvi) return on operating revenue; (xvii) market share; (xviii) contract awards or backlog; (xix) overhead or other
expense reduction; (xx) growth in stockholder value relative to the moving average of the S&P 500 Index or a peer group index; (xxi) credit rating; (xxii) strategic plan development and implementation (including individual performance objectives
that relate to achievement of the 

  

 4 

 
Company’s or any business unit’s strategic plan); (xxiii) improvement in workforce diversity, and (xxiv) any other similar criteria. The Committee
may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period: (A) asset write-downs; (B) litigation or claim judgments or settlements;
(C) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results; (D) accruals for reorganization and restructuring programs; and (E) any extraordinary non-recurring items as described in
Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year. 
  
 (hh) “Restricted Stock” means Shares
of Common Stock acquired pursuant to a grant of a Stock Award under Sections 11, 12 or 13. 
  
 (ii) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time to time, or any
successor provision. 
  
 (jj)
“Share” means a share of the Common Stock, as adjusted in accordance with Section 17 of the Plan. 
  
 (kk) “Stock Appreciation Right” means a right to receive cash and/or shares of Common Stock based on a change in
the Fair Market Value of a specific number of shares of Common Stock granted under Section 13. 
  
 (ll) “Stock Award” means a Stock Grant, a Stock Unit, a Stock Appreciation Right or a Stock Purchase Right.

  
 (mm) “Stock Award
Agreement” means a written agreement, the form(s) of which shall be approved from time to time by the Administrator, between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award
grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
  
 (nn) “Stock Exchange” means any stock exchange or consolidated stock price reporting system on which prices for
the Common Stock are quoted at any given time. 
  
 (oo) “Stock Grant” means the award of a certain number of shares of Common Stock granted under Section 11 below. 
  
 (pp) “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 12 below. 
  
 (qq) “Stock Unit” means a
bookkeeping entry representing an amount equivalent to the Fair Market Value of one Share, payable in cash, property or Shares. Stock Units represent an unfunded and unsecured obligation of the Company, except as otherwise provided for by the
Administrator. 
  
 (rr)
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision. 
  

 5 

 (ss) “Ten Percent Holder” means a person who 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. 
  
 3. Stock Subject to the Plan. Subject to the provisions of Section 17 of the Plan, the maximum aggregate number of Shares that may be sold
under the Plan is 1,345,453 Shares of Common Stock, plus an annual increase on the first day of each of the Company’s fiscal years beginning in 2005 and ending in 2010 equal to the lesser of (a) 109,090 Shares, (b) 4% of the Shares outstanding
on the last day of the immediately preceding fiscal year, or (c) such lesser number of Shares as the Board shall determine. The Shares may be authorized, but unissued, or reacquired Common Stock. If an Award should expire or become unexercisable for
any reason without having been exercised in full, or is surrendered pursuant to an Award Exchange Program, the unpurchased Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under
the Plan. In addition, any Shares of Common Stock which are retained by the Company upon exercise of an Award in order to satisfy the exercise or purchase price for such Award or any withholding taxes due with respect to such exercise or purchase
shall be treated as not issued and shall continue to be available under the Plan. Shares issued under the Plan and later repurchased by the Company pursuant to any repurchase right which the Company may have exercised shall not be available for
future grant under the Plan. 
  
 4. Administration of the
Plan. 
  
 (a)
General. The Plan shall be administered by the Board or a Committee, or a combination thereof, as determined by the Board. The Plan may be administered by different administrative bodies with respect to different classes of
Participants and, if permitted by the Applicable Laws, the Board may authorize one or more officers to make Awards under the Plan. 
  
 (b) Committee Composition. If a Committee has been appointed pursuant to this Section 4, such Committee shall continue to
serve in its designated capacity until otherwise directed by the Board. From time to time the Board may increase the size of any Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies (however caused) and remove all members of a Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws and, in the case of a Committee administering the Plan in
accordance with the requirements of Rule 16b-3 or Section 162(m) of the Code, to the extent permitted or required by such provisions. The Committee shall in all events conform to any requirements of the Applicable Laws. 
  
 (c) Powers of the Administrator. Subject to
the provisions of the Plan and in the case of a Committee, the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 
  
 (i) to determine the Fair Market Value of the Common Stock, in accordance with Section 2(t) of the Plan,
provided that such determination shall be applied consistently with respect to Participants under the Plan; 
  

 6 

 (ii) to select the Employees, Consultants and Directors to whom Awards may from time to
time be granted; 
  
 (iii) to determine whether
and to what extent Awards are granted; 
  
 (iv)
to determine the number of Shares of Common Stock to be covered by each Award granted; 
  
 (v) to approve the form(s) of agreement(s) used under the Plan; 
  
 (vi) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award
granted hereunder, which terms and conditions include but are not limited to the exercise or purchase price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, any pro rata adjustment to vesting as a result of a Participant’s transitioning from full- to part-time service (or vice versa), and any restriction or limitation regarding any Option, Optioned Stock, Stock Award or
Restricted Stock, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 
  
 (vii) to determine whether and under what circumstances an Option may be settled in cash under Section 10(c) instead of Common Stock;

  
 (viii) to implement an Award Exchange Program
on such terms and conditions as the Administrator in its discretion deems appropriate, provided that no amendment or adjustment to an Award that would materially and adversely affect the rights of any Participant shall be made without the prior
written consent of the Participant; 
  
 (ix) to
adjust the vesting of an Option or Stock Award held by an Employee, Consultant or Director as a result of a change in the terms or conditions under which such person is providing services to the Company; 
  
 (x) to construe and interpret the terms of the Plan and
Awards granted under the Plan, which constructions, interpretations and decisions shall be final and binding on all Participants; and 
  
 (xi) in order to fulfill the purposes of the Plan and without amending the Plan, to modify grants of Options or Stock Awards to
Participants who are foreign nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs. 
  

 7 

 5. Eligibility. 
  
 (a) Recipients of Grants. Nonstatutory Stock Options and Stock Awards may be granted to
Employees, Directors and Consultants. Incentive Stock Options may be granted only to Employees, provided that Employees of Affiliates shall not be eligible to receive Incentive Stock Options. 
  
 (b) Type of Option. Each Option shall be
designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. 
  
 (c) ISO $100,000 Limitation. Notwithstanding any designation under Section 5(b), to the extent that the aggregate Fair
Market Value of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000,
such excess Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(c), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares subject to an
Incentive Stock Option shall be determined as of the date of the grant of such Option. 
  
 (d) No Employment Rights. The Plan shall not confer upon any Participant any right with respect to continuation of an
employment or consulting relationship with the Company, nor shall it interfere in any way with such Participant’s right or the Company’s right to terminate the employment or consulting relationship at any time for any reason. 

 
 6. Term of Plan. The Plan shall become effective upon its
adoption by the Board of Directors. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 19 of the Plan. 
  
 7. Term of Option. The term of each Option shall be the term stated in the Option Agreement; provided that the term shall be no more than
ten years from the date of grant thereof or such shorter term as may be provided in the Option Agreement and provided further that, in the case of an Incentive Stock Option granted to a person who at the time of such grant is a Ten Percent Holder,
the term of the Option shall be five years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. 
  
 8. Limitation on Grants to Employees. Subject to adjustment as provided in Section 17 below, the maximum number of Shares that may be
subject to Options and Stock Awards granted to any one Employee under this Plan for any fiscal year of the Company shall be 1,000,000, provided that this Section 8 shall apply only after such time, if any, as the Common Stock becomes a Listed
Security. 
  

 8 

 9. Option Exercise Price and Consideration. 
  
 (a) Exercise Price. The per Share exercise
price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by the Administrator and set forth in the Option Agreement, but shall be subject to the following: 
  
 (i) In the case of an Incentive Stock Option 
  
 (A) granted to an Employee who at the time of grant is a
Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant; or 
  
 (B) granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date
of grant. 
  
 (ii) In the case of a Nonstatutory
Stock Option, the per share Exercise Price shall be such price as determined by the Administrator provided that if such eligible person is, at the time of the grant of such Option, a Named Executive of the Company or an individual whom the
Administrator reasonably believes may become a Named Executive of the Company, the per share Exercise Price shall be no less than 100% of the Fair Market Value on the date of grant if such Option is intended to qualify as performance-based
compensation under Section 162(m) of the Code. 
  
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a Corporate Transaction. 
  
 (b) Permissible Consideration. The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (i) cash; (ii) check; (iii)
subject to any requirements of the Applicable Laws (including without limitation Section 153 of the Delaware General Corporation Law), delivery of Optionee’s promissory note having such recourse, interest, security and redemption provisions as
the Administrator determines to be appropriate after taking into account the potential accounting consequences of permitting an Optionee to deliver a promissory note; (iv) cancellation of indebtedness; (v) other Shares that have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is exercised, provided that in the case of Shares acquired, directly or indirectly, from the Company, such Shares must have been owned by the
Optionee for more than six months on the date of surrender (or such other period as may be required to avoid the Company’s incurring an adverse accounting charge); (vi) if, as of the date of exercise of an Option the Company then is permitting
employees to engage in a “same-day sale” cashless brokered exercise program involving one or more brokers, through such a program that complies with the Applicable Laws (including without limitation the requirements of Regulation T and
other applicable regulations promulgated by the Federal Reserve Board) and that ensures prompt delivery to the Company of the amount required to pay the exercise price and any applicable withholding taxes; or (vii) any combination of the foregoing
methods of payment. In making its determination as to the type of 

  

 9 

 
consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company and the
Administrator may, in its sole discretion, refuse to accept a particular form of consideration at the time of any Option exercise. 
  
 10. Exercise of Option. 
  
 (a) General. 
  
 (i) Exercisability. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined
by the Administrator, consistent with the term of the Plan and reflected in the Option Agreement, including vesting requirements and/or performance criteria with respect to the Company and/or the Optionee. 
  
 (ii) Leave of Absence. In the absence of
determination by the Administrator at the time of grant of the Option, vesting of an Option shall be tolled during any unpaid leave of absence, except to the extent otherwise provided by Applicable Laws. In the event of a military leave, to the
extent required by Applicable Laws, vesting shall toll during any unpaid portion of such leave, provided that upon a Participant’s return from military leave he or she shall be given vesting credit with respect to Options to the same extent as
would have applied had the Participant continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave. 
  
 (iii) Minimum Exercise Requirements. An Option
may not be exercised for a fraction of a Share. The Administrator may require that an Option be exercised as to a minimum number of Shares, provided that such requirement shall not prevent an Optionee from exercising the full number of Shares as to
which the Option is then exercisable. 
  
 (iv)
Procedures for and Results of Exercise. An Option shall be deemed exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to exercise the Option and
the Company has received full payment for the Shares with respect to which the Option is exercised. Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Section 9(b) of the Plan,
provided that the Administrator may, in its sole discretion, refuse to accept any form of consideration at the time of any Option exercise. 
  
 Exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and
for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (v) 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. No adjustment will
be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 17 of the Plan. 
  

 10 

 (b) Termination of Employment or Consulting Relationship. Except as
otherwise set forth in this Section 10(b), the Administrator shall establish and set forth in the applicable Option Agreement the terms and conditions upon which an Option shall remain exercisable, if at all, following termination of an
Optionee’s Continuous Service Status, which provisions may be waived or modified by the Administrator at any time. Unless the Administrator otherwise provides in the Option Agreement, to the extent that the Optionee is not vested in Optioned
Stock at the date of termination of his or her Continuous Service Status, or if the Optionee (or other person entitled to exercise the Option) does not exercise the Option to the extent so entitled within the time specified in the Option Agreement
or below (as applicable), the Option shall terminate and the Optioned Stock underlying the unexercised portion of the Option shall revert to the Plan. In no event may any Option be exercised after the expiration of the Option term as set forth in
the Option Agreement (and subject to Section 7). 
  
 The following provisions (1) shall apply to the extent an Option Agreement does not specify the terms and conditions upon which an Option shall terminate upon termination of an Optionee’s Continuous Service Status, and (2) establish
the minimum post-termination exercise periods that may be set forth in an Option Agreement: 
  
 (i) Termination other than Upon Disability or Death or for Cause. In the event of termination of Optionee’s Continuous
Service Status other than under the circumstances set forth in subsections (ii) through (iv) below, such Optionee may exercise an Option for three months following such termination to the extent the Optionee was vested in the Optioned Stock as of
the date of such termination. No termination shall be deemed to occur and this Section 10(b)(i) shall not apply if (A) the Optionee is a Consultant who becomes an Employee or Director, (B) the Optionee is an Employee who becomes a Consultant or
Director or (C) the Optionee is a Director who becomes an Employee or a Consultant. 
  
 (ii) Disability of Optionee. In the event of termination of an Optionee’s Continuous Service Status as a result of his
or her disability (including a disability within the meaning of Section 22(e)(3) of the Code), such Optionee may exercise an Option at any time within 12 months following such termination to the extent the Optionee was vested in the Optioned Stock
as of the date of such termination. 
  
 (iii)
Death of Optionee. In the event of the death of an Optionee during the period of Continuous Service Status since the date of grant of the Option, or within 30 days following termination of Optionee’s Continuous Service Status, the
Option may be exercised by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance at any time within 12 months following the date of death, but only to the extent the Optionee was vested in the
Optioned Stock as of the date of death or, if earlier, the date the Optionee’s Continuous Service Status terminated. 
  
 (iv) Termination for Cause. In the event of termination of an Optionee’s Continuous Service Status for Cause, any
Option (including any exercisable portion thereof) held by such Optionee shall immediately terminate in its entirety upon first notification to the Optionee of termination of the Optionee’s Continuous Service Status. If an Optionee’s
employment or consulting relationship with the Company is suspended pending an investigation 

  

 11 

 
of whether the Optionee shall be terminated for Cause, all the Optionee’s rights under any Option likewise shall be suspended during the investigation
period and the Optionee shall have no right to exercise any Option. Unless prohibited by Applicable Laws, this Section 10(b)(iv) shall apply with equal effect to vested Shares acquired upon exercise of an Option, in that the Company shall have the
right to repurchase such Shares from the Participant at the lesser of Participant’s original cost for the Shares or the Fair Market Value of the Share at the time of repurchase. Such repurchase shall be effected pursuant to such terms and
conditions, and at such time, as the Administrator shall determine. Nothing in this Section 10(b)(iv) shall in any way limit the Company’s right to purchase unvested Shares issued upon exercise of an Option as set forth in the applicable Option
Agreement. 
  
 (c) Buyout
Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted under the Plan based on such terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made. 
  
 11. Stock
Grants and Stock Unit Awards. Each Stock Award Agreement reflecting the issuance of a Stock Grant or Stock Unit shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions
of such agreements may change from time to time, and the terms and conditions of separate agreements need not be identical, but each such agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions: 
  
 (a) Consideration. A Stock Grant or Stock Unit may be awarded in consideration for such property or services as is permitted under Applicable Law, including for past services actually rendered to the Company or an Affiliate
for its benefit. 
  
 (b) Vesting.
Shares of Common Stock awarded under an agreement reflecting a Stock Grant and a Stock Unit award may, but need not, be subject to a share repurchase option, forfeiture restriction or other conditions in favor of the Company in accordance with a
vesting or lapse schedule to be determined by the Board. 
  
 (c) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous Service terminates, the Company may reacquire any or all of the Shares held by the Participant which
have not vested or which are otherwise subject to forfeiture or other conditions as of the date of termination under the terms of the agreement. 
  
 (d) Transferability. Rights to acquire Shares under a Stock Grant or a Stock Unit agreement shall be transferable by the
Participant only by will or by the laws of descent and distribution. 
  
 12. Stock Purchase Rights. 
  
 (a) Rights to Purchase. When the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing of the terms, 

  

 12 

 
conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and
the time within which such person must accept such offer. The offer to purchase Shares subject to Stock Purchase Rights shall be accepted by execution of a Stock Award Agreement in the form determined by the Administrator. 
  
 (b) Repurchase Option. 
  
 (i) General. Unless the Administrator
determines otherwise, the Stock Award Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason (including death or disability).
The purchase price for Shares repurchased pursuant to the Stock Award Agreement shall be the lesser of the original purchase price paid by the purchaser or the Fair Market Value of the Shares on the date of repurchase, and may be paid by
cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at such rate as the Administrator may determine. In the absence of determination by the Administrator at the time of grant of the Stock Purchase
Right, lapse of the repurchase option shall be tolled during any unpaid leave of absence, except to the extent otherwise provided by Applicable Laws. In the event of a military leave, to the extent required by Applicable Laws, lapse of the
repurchase option shall toll during any unpaid portion of such leave, provided that upon a Participant’s return from military leave the repurchase option shall be deemed to have lapsed to the same extent as would have applied had the
Participant continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave. 
  
 (ii) Termination of Continuous Service Status for Cause. Unless prohibited by Applicable Laws,
in the event of termination of a Participant’s Continuous Service Status for Cause, the Company shall have the right to repurchase from the Participant vested Shares issued upon exercise of a Stock Purchase Right at the lesser of
Participant’s original cost for the Shares or the Fair Market Value of the Share at the time of repurchase or such other terms as determined by the Administrator. Such repurchase shall be effected pursuant to such terms and conditions, and at
such time, as the Administrator shall determine. Nothing in this Section 12(b)(ii) shall in any way limit the Company’s right to purchase unvested Shares as set forth in the applicable Stock Award Agreement. 
  
 (c) Other Provisions. The Stock Award
Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. In addition, the provisions of Stock Award Agreements need not be the same with
respect to each purchaser. 
  
 (d) Rights
as a Stockholder. Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized
transfer agent of the Company. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 17 of the Plan. 
  

 13 

 13. Stock Appreciation Rights. 
  
 (a) General. Stock Appreciation Rights may be
granted either alone, in addition to, or in tandem with other Awards granted under the Plan. The Board may grant Stock Appreciation Rights to eligible Participants subject to terms and conditions not inconsistent with this Plan and determined by the
Board. The specific terms and conditions applicable to the Participant shall be provided for in the Stock Award Agreement. Stock Appreciation Rights shall be exercisable, in whole or in part, at such times as the Board shall specify in the Stock
Award Agreement. 
  
 (b) Exercise of Stock
Appreciation Right. Upon the exercise of a Stock Appreciation Right, in whole or in part, the Participant shall be entitled to a payment in an amount equal to the excess of the Fair Market Value on the date of exercise of a fixed number of
Shares covered by the exercised portion of the Stock Appreciation Right, over the Fair Market Value on the grant date of the Shares covered by the exercised portion of the Stock Appreciation Right (or such other amount calculated with respect to
Shares subject to the award as the Board may determine). The amount due to the Participant upon the exercise of a Stock Appreciation Right shall be paid in such form of consideration as determined by the Board and may be in cash, Shares or a
combination thereof, over the period or periods specified in the Stock Award Agreement. A Stock Award Agreement may place limits on the amount that may be paid over any specified period or periods upon the exercise of a Stock Appreciation Right, on
an aggregate basis or as to any Participant. A Stock Appreciation Right shall be considered exercised when the Company receives written notice of exercise in accordance with the terms of the Stock Award Agreement from the person entitled to exercise
the Stock Appreciation Right. 
  
 (c)
Nonassignability of Stock Appreciation Rights. Except as determined by the Board, no Stock Appreciation Right shall be assignable or otherwise transferable by the Participant except by will or by the laws of descent and distribution.

  
 14. Section 162(m) Compliance. Any Stock Award
(other than an Option or any other Stock Award having a purchase price equal to 100% of the Fair Market Value on the date such award is made) that is intended as “qualified performance-based compensation” within the meaning of Section
162(m) of the Code must vest or become exercisable contingent on the achievement of one or more Qualifying Performance Criteria. Notwithstanding anything to the contrary herein, the Committee shall have the discretion to determine the time and
manner of compliance with Section 162(m) of the Code as required under applicable regulations and to conform the procedures related to the Award to the requirements of Section 162(m). 
  
 15. Taxes. 
  
 (a) As a condition of the grant, vesting or exercise of an Option or Stock Award granted under the Plan, the Participant (or in the case
of the Participant’s death, the person exercising the Option or Stock Award) shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal, state, local or foreign withholding tax obligations that
may arise in connection with such grant, vesting or exercise of the Option or Stock Award or the issuance of Shares. The Company shall not be required to 

  

 14 

 
issue any Shares under the Plan until such obligations are satisfied. If the Administrator allows the withholding or surrender of Shares to satisfy a
Participant’s tax withholding obligations under this Section 15 (whether pursuant to Section 15(c), (d) or (e), or otherwise), the Administrator shall not allow Shares to be withheld in an amount that exceeds the minimum statutory withholding
rates for federal and state tax purposes, including payroll taxes. 
  
 (b) In the case of an Employee and in the absence of any other arrangement, the Employee shall be deemed to have directed the Company to withhold or collect from his or her compensation an amount sufficient to satisfy
such tax obligations from the next payroll payment otherwise payable after the date of an exercise of the Option or Stock Award. 
  
 (c) This Section 15(c) shall apply only after the date, if any, upon which the Common Stock becomes a Listed Security. In the case of
Participant other than an Employee (or in the case of an Employee where the next payroll payment is not sufficient to satisfy such tax obligations, with respect to any remaining tax obligations), in the absence of any other arrangement and to the
extent permitted under the Applicable Laws, the Participant shall be deemed to have elected to have the Company withhold from the Shares to be issued upon exercise of the Option or Stock Award that number of Shares having a Fair Market Value
determined as of the applicable Tax Date (as defined below) equal to the amount required to be withheld. For purposes of this Section 15, the Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be
withheld is to be determined under the Applicable Laws (the “Tax Date”). 
  
 (d) If permitted by the Administrator, in its discretion, a Participant may satisfy his or her tax withholding obligations upon exercise
of an Option or Stock Award by surrendering to the Company Shares that have a Fair Market Value determined as of the applicable Tax Date equal to the amount required to be withheld. In the case of Shares previously acquired from the Company that are
surrendered under this Section 15(d), such Shares must have been owned by the Participant for more than six (6) months on the date of surrender (or such other period of time as is required for the Company to avoid adverse accounting charges).

  
 (e) Any election or deemed election by a
Participant to have Shares withheld to satisfy tax withholding obligations under Section 15(c) or (d) above shall be irrevocable as to the particular Shares as to which the election is made and shall be subject to the consent or disapproval of the
Administrator. Any election by a Participant under Section 5(d) above must be made on or prior to the applicable Tax Date. 
  
 (f) In the event an election to have Shares withheld is made by a Participant and the Tax Date is deferred under Section 83 of the Code
because no election is filed under Section 83(b) of the Code, the Participant shall receive the full number of Shares with respect to which the Option or Stock Award is exercised but such Participant shall be unconditionally obligated to tender back
to the Company the proper number of Shares on the Tax Date. 
  

 15 

 16. Non-Transferability of Options and Stock Awards. 
  
 (a) General. Except as set forth in this
Section 16, Options and Stock Awards 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. The designation of a beneficiary by an Optionee will not
constitute a transfer. An Option or Stock Award may be exercised, during the lifetime of the holder of an Option or Stock Award, only by such holder or a transferee permitted by this Section 16. 
  
 (b) Limited Transferability Rights.
Notwithstanding anything else in this Section 16, prior to the date, if any, on which the Common Stock becomes a Listed Security, the Administrator may in its discretion grant Nonstatutory Stock Options that may be transferred by instrument to
an inter vivos or testamentary trust in which the Options are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift to “Immediate Family” (as defined below), on such terms and conditions as the Administrator
deems appropriate. Following the date, if any, on which the Common Stock becomes a Listed Security, the Administrator may in its discretion grant transferable Nonstatutory Stock Options pursuant to Option Agreements specifying the manner in which
such Nonstatutory Stock Options are transferable. “Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, and shall include adoptive relationships. 
  
 17. Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions. 
  
 (a) Changes in Capitalization. Subject to any action required under Applicable Laws by the stockholders of the Company, the
number of Shares of Common Stock covered by each outstanding Award, the numbers of Shares set forth in Sections 3 and 8 above, and the number of Shares of Common Stock that have been authorized for issuance under the Plan but as to which no Awards
have yet been granted or that have been returned to the Plan upon cancellation or expiration of an Award, as well as the price per Share of Common Stock covered by each such outstanding Award, shall be proportionately adjusted for any increase or
decrease in the number of issued Shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination, recapitalization or reclassification of the Common Stock, or any other increase or decrease in the number of
issued Shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares of Common Stock subject to an Award. 
  
 (b) Dissolution or Liquidation. In the event
of the dissolution or liquidation of the Company, each Option and Stock Award will terminate immediately prior to the consummation of such action, unless otherwise determined by the Administrator. 
  

 16 

 (c) Corporate Transaction. 
  
 (i) In the event of a Corporate Transaction, each
outstanding Option and Stock Award shall be assumed or an equivalent option or right shall be substituted by the successor corporation or a Parent or Subsidiary of such successor corporation, unless such successor corporation does not agree to
assume the outstanding Options or Stock Awards or to substitute equivalent options or rights, in which case such Options or Stock Awards shall terminate upon the consummation of the transaction. 
  
 (ii) In the event of a Change of Control, if the successor
corporation or a Parent or Subsidiary of such successor corporation agrees to assume outstanding Options or Stock Awards or to substitute them with equivalent options or stock awards, the vesting and exercisability of each outstanding Option and
Stock Award shall accelerate such that the Options and Stock Awards shall become vested and exercisable as to the lesser of 25% of the Shares subject to the Option or Stock Award or the remaining unvested Shares, and any repurchase right of the
Company with respect to Shares issued upon exercise of an Option or Stock Award shall lapse as to the lesser of 25% of the Shares initially subject to the Company repurchase right or the remaining Shares subject to the Company repurchase right. The
acceleration of vesting and lapse of repurchase rights provided for in this Section 17(c)(ii) shall occur immediately prior to consummation of the Change of Control and shall apply to Shares that would have vested last under the vesting schedule
applicable to the Option or Stock Award or the Shares subject to Company repurchase right. 
  
 (iii) In addition to the acceleration of vesting and lapse of repurchase rights provided for in Section 17(c)(ii), in the event of the
Involuntary Termination within 12 months of the Change of Control of a Participant holding an Option or Stock Award that is assumed or substituted by the successor corporation in the Change of Control, or holding Common Stock issued upon exercise of
an Option or Stock Award with respect to which the successor corporation has succeeded to a repurchase right as a result of the Change of Control, then any assumed or substituted Option or Stock Award held by such Participant at the time of the
Involuntary Termination shall accelerate and become exercisable as to the lesser of 25% of the Shares subject to the Option or Stock Award or the remaining unvested Shares, and any repurchase right of the Company with respect to Shares issued upon
exercise of an Option or Stock Award shall lapse as to the lesser of 25% of the Shares initially subject to the Company repurchase right or the remaining Shares subject to the Company repurchase right. The acceleration of vesting and lapse of
repurchase rights provided for in this Section 17(c)(iii) shall occur as of the Participant’s last day of Continuous Service Status and shall apply to Shares that would have vested first under the vesting schedule applicable to the Options or
Stock Awards or the Shares subject to Company repurchase right had the Participant’s employment continued. 
  
 (iv) In the event the successor corporation does not agree to assume outstanding Options or Stock Awards, or to substitute them with
equivalent options or stock awards, the vesting and exercisability of each outstanding Option and Stock Award shall accelerate such that the Options and Stock Awards shall become vested and exercisable as to 100% of the remaining unvested Shares,
and any repurchase right of the Company with respect to Shares issued upon exercise of an Option or Stock Award shall lapse as to 100% of the remaining Shares subject to the Company repurchase right. The acceleration of vesting and lapse 

  

 17 

 
of repurchase rights provided for in this Section 17(c)(iv) shall occur immediately prior to consummation of the Change of Control. 
  
 (v) For purposes of this Section 17(c), an Option or a Stock
Award shall be considered assumed, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction or a Change of Control, as the case may be, each holder of an Option or Stock Award would be entitled
to receive upon exercise of the Option or Stock Award the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the
holder had been, immediately prior to such transaction, the holder of the number of Shares of Common Stock covered by the Option or the Stock Award at such time (after giving effect to any adjustments in the number of Shares covered by the Option or
Stock Award as provided for in this Section 17); provided however that if such consideration received in the transaction 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 exercise of the Option or Stock Award to be solely common stock of the successor corporation or its Parent equal to the Fair Market Value of the per Share consideration received by
holders of Common Stock in the transaction. 
  
 (d) Certain Distributions. In the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Administrator may, in its discretion, appropriately adjust the price per Share of Common Stock covered by each outstanding Option or Stock Award to reflect the effect of such distribution. 
  
 18. Time of Granting Options and Stock Awards. The date of
grant of an Option or Stock Award shall, for all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Award, or such other date as is determined by the Administrator, provided that in the case of any
Incentive Stock Option, the grant date shall be the later of the date on which the Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Optionee’s employment relationship with the
Company. Notice of the determination shall be given to each Employee, Consultant or Director to whom an Option or Stock Award is so granted within a reasonable time after the date of such grant. 
  
 19. Amendment and Termination of the Plan. 
  
 (a) Authority to Amend or Terminate. The Board
may at any time amend, alter, suspend or discontinue the Plan, but no amendment, alteration, suspension or discontinuation (other than an adjustment pursuant to Section 17 above) shall be made that would materially and adversely affect the rights of
any Optionee or holder of Stock Awards under any outstanding grant, without his or her consent. In addition, to the extent necessary and desirable to comply with the Applicable Laws, the Company shall obtain stockholder approval of any Plan
amendment in such a manner and to such a degree as required. 
  

 18 

 (b) Effect of Amendment or Termination. Except as to amendments which the
Administrator has the authority under the Plan to make unilaterally, no amendment or termination of the Plan shall materially and adversely affect Options or Stock Awards already granted, unless mutually agreed otherwise between the Optionee or
holder of the Stock Awards and the Administrator, which agreement must be in writing and signed by the Optionee or holder of Stock Awards and the Company. 
  
 20. Conditions Upon Issuance of Shares. Notwithstanding any other provision of the Plan or any agreement entered into by the Company
pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined
by the Company in consultation with its legal counsel. As a condition to the exercise of an Option or Stock Award, the Company may require the person exercising the Award to represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by law. Shares issued upon exercise of Awards granted prior to
the date on which the Common Stock becomes a Listed Security shall be subject to a right of first refusal in favor of the Company pursuant to which the Participant will be required to offer Shares to the Company before selling or transferring them
to any third party on such terms and subject to such conditions as is reflected in the applicable Option Agreement or Stock Award Agreement. 
  
 21. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan. 
  
 22. Agreements. Options and Stock Awards shall be evidenced by Option Agreements and Stock Award Agreements, respectively, in such form(s) as the Administrator shall from time to time approve. 
  
 23. Stockholder Approval. If required by the Applicable Laws,
continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted. Such stockholder approval shall be obtained in the manner and to the degree required
under the Applicable Laws. 
  
 24. Information and Documents
to Optionees and Purchasers. Prior to the date, if any, upon which the Common Stock becomes a Listed Security and if required by the Applicable Laws, the Company shall provide financial statements at least annually to each Optionee and to
each individual who acquired Shares pursuant to the Plan, during the period such Optionee or purchaser has one or more Options or Stock Awards outstanding, and in the case of an individual who acquired Shares pursuant to the Plan, during the period
such individual owns such Shares. The Company shall not be required to provide such information if the issuance of Options or Stock Awards under the Plan is limited to key employees whose duties in connection with the Company assure their access to
equivalent information. 
  

 19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]