Document:

2002 Stock Incentive Plan

 Exhibit 10.16 
  
 WARP TECHNOLOGY HOLDINGS, INC. 
  
 2002 STOCK INCENTIVE PLAN 
  
 1. Purpose. The purpose of the WARP Technology Holdings, Inc. 2002 Stock Incentive Plan (the “Plan”) is to provide a means through
which the Company and its Subsidiaries and Affiliates may attract able persons to enter and remain in the employ of the Company and its Subsidiaries and Affiliates and to provide a means whereby eligible persons can acquire and maintain Common Stock
ownership, or be paid incentive compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare of the Company and its Subsidiaries and Affiliates and promoting an identity of interest between
stockholders and these eligible persons. 
  
 So that the
appropriate incentive can be provided, the Plan provides for granting Incentive Stock Options, Nonqualified Stock Options, Restricted Stock Awards and Stock Bonuses, or any combination of the foregoing. Capitalized terms not defined in the text are
defined in Section 23. 
  
 2. Shares Subject to The
Plan. Subject to Section 18, the total number of Shares reserved and available for grant and issuance pursuant to this Plan will be 10,000,000 Shares plus Shares that are subject to: (a) issuance upon exercise of an Option but cease to be
subject to such Option for any reason other than exercise of such Option; (b) an Award granted hereunder but are forfeited or are repurchased by the Company at the original issue price; and (c) an Award that otherwise terminates without Shares being
issued. At all times the Company shall reserve and keep available a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding Options granted under this Plan and all other outstanding but unvested Awards granted
under this Plan. 
  
 3. Eligibility. ISOs (as
defined in Section 5 below) may be granted only to employees (including officers and directors who are also employees) of the Company or of a Parent or Subsidiary of the Company. All other Awards may be granted to employees, officers, directors,
consultants, independent contractors and advisors of the Company or any Parent, Affiliate or Subsidiary of the Company; provided such consultants, contractors and advisors render bona fide services not in connection with the offer and sale of
securities in a capital-raising transaction. 
  
 4.
Administration. 
  
 4.1 Committee
Authority. This Plan will be administered by the Committee or by the Board. Subject to the general purposes, terms and conditions of this Plan, and to the direction of the Board, the Committee will have full power to implement and carry out this
Plan. Without limitation, the Committee will have the authority to: 
  

	 	a.	select persons to receive Awards; 

  

	 	b.	determine the nature, extent, form and terms of Awards and the number of Shares or other consideration subject to Awards; 

  

	 	c.	determine the vesting, exercisability and payment of Awards; 

  

	 	d.	correct any defect, supply any omission or reconcile any inconsistency in this Plan, any Award or any Award Agreement; 

  

	 	e.	determine whether Awards will be granted singly, in combination with, in tandem with, in replacement of, or as alternatives to, other Awards under this Plan or any other incentive
or compensation plan of the Company or any Parent or Subsidiary of the Company; 

  

	 	f.	prescribe, amend and rescind rules and regulations relating to this Plan or any Award; 

  

	 	g.	construe and interpret this Plan, any Award Agreement and any other agreement or document executed pursuant to this Plan; 

  

	 	h.	grant waivers of Plan or Award conditions; 

  

	 	i.	determine whether an Award has been earned; and 

  

	 	j.	make all other determinations necessary or advisable for the administration of this Plan. 

  
 The Committee shall have the authority, subject to the provisions of the Plan, to establish, adopt, or revise such rules and
regulations and to make all such determinations relating to the Plan as it may deem necessary or advisable for the administration of the Plan. The Committee’s interpretation of the Plan or any documents evidencing Awards granted pursuant
thereto and all decisions and determinations by the Committee with respect to the Plan shall be final, binding, and conclusive on all parties unless otherwise determined by the Board. 
  
 4.2 Committee Discretion. Any determination made by the Committee with respect to any Award will be
made in its sole discretion at the time of grant of the Award or, unless in contravention of any express term of this Plan or Award, at any later time, and such determination will be final and binding on the Company and on all persons having an
interest in any Award under this Plan. 
  
 5.
Options. The Committee may grant Options to eligible persons and will determine: whether such Options will be intended to be Incentive Stock Options within the 

  

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meaning of the Code (“ISO”) or Nonqualified Stock Options (“NQSOs”), the number of Shares subject to the Option, the Exercise Price of
the Option, the period during which the Option may be exercised, and all other terms and conditions of the Option, subject to the following: 
  
 5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an Award Agreement (“Stock Option
Agreement”), which will expressly identify the Option as an ISO or a NQSO, and will be in such form and contain such provisions (which need not be the same for each Participant) as the Committee may from time to time approve, and which will
comply with and be subject to the terms and conditions of this Plan. 
  
 5.2 Exercise Period. Options may be exercisable within the times or upon the events determined by the Committee as set forth in the Stock Option Agreement governing such Option; provided, however, that no
Option will be exercisable after the expiration of ten (10) years from the date the Option is granted; and provided further that no ISO granted to a person who directly or by attribution owns more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of any Parent or Subsidiary of the Company (“Ten Percent Stockholder”) will be exercisable after the expiration of five (5) years from the date the ISO is granted. The Committee also may
provide for Options to become exercisable at one time or from time to time, periodically or otherwise, in such number of Shares or percentage of Shares as the Committee determines. 
  
 5.3 Exercise Price. The Exercise Price of an Option will be determined by the Committee when the
Option is granted; provided that: (i) the Exercise Price of an ISO will be not less than 100% of the Fair Market Value of the Shares on the date of grant; and (ii) the Exercise Price of any ISO granted to a Ten Percent Stockholder will not be less
than 110% of the Fair Market Value of the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with Section 8 of this Plan. 
  

5.4 Date of Grant. The date of grant of an Option will be the date on which the Committee makes the determination to grant such
Option, unless otherwise specified by the Committee. The Stock Option Agreement and a copy of this Plan will be delivered to the Participant within a reasonable time after the granting of the Option. 
  
 5.5 Method of Exercise. Options may be exercised only
by delivery to the Company of a written stock option exercise agreement (the “Exercise Agreement”) in a form approved by the Committee (which need not be the same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if any, and such representations and agreements regarding Participant’s investment intent and access to information and other matters, if any, as may be required or
desirable by the Company to comply with applicable securities laws, together with payment in full of the Exercise Price for the number of Shares being purchased. 
  

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 5.6 Termination. Notwithstanding the exercise periods set forth in the Stock
Option Agreement, exercise of an Option will always be subject to the following: 
  

	 	a.	If the Participant is Terminated for any reason except death or Disability, then the Participant may exercise such Participant’s Options only to the extent that such Options
would have been exercisable upon the Termination Date no later than three (3) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be determined by the Committee, with any exercise beyond three
(3) months after the Termination Date deemed to be a NQSO), but in any event, no later than the expiration date of the Options. 

  

	 	b.	If the Participant is Terminated because of Participant’s death or Disability (or the Participant dies within three (3) months after a Termination other than for Cause or
because of Participant’s Disability), then Participant’s Options may be exercised only to the extent that such Options would have been exercisable by Participant on the Termination Date and must be exercised by Participant (or
Participant’s legal representative or authorized assignee) no later than twelve (12) months after the Termination Date (or such shorter or longer time period not exceeding five (5) years as may be determined by the Committee, with any such
exercise beyond (a) three (3) months after the Termination Date when the Termination is for any reason other than the Participant’s death or Disability, or (b) twelve (12) months after the Termination Date when the Termination is for
Participant’s death or Disability, deemed to be a NQSO), but in any event no later than the expiration date of the Options. 

  

	 	c.	Notwithstanding the provisions in paragraph 5.6(a) above, if a Participant is terminated for Cause, neither the Participant, the Participant’s estate nor such other person who
may then hold the Option shall be entitled to exercise any Option with respect to any Shares whatsoever, after termination of service, whether or not after termination of service the Participant may receive payment from the Company or Subsidiary for
vacation pay, for services rendered prior to termination, for services rendered for the day on which termination occurs, for salary in lieu of notice, or for any other benefits. In making such determination, the Board shall give the Participant an
opportunity to present to the Board evidence on his behalf. For the purpose of this paragraph, termination of service shall be deemed to occur on the date when the Company dispatches notice or advice to the Participant that his service is
terminated. 

  
 5.7 Limitations
on ISO. The aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which ISOs are exercisable for the first time by a 

  

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Participant during any calendar year (under this Plan or under any other incentive stock option plan of the Company, Parent or Subsidiary of the Company)
will not exceed $100,000. If the Fair Market Value of Shares on the date of grant with respect to which ISOs are exercisable for the first time by a Participant during any calendar year exceeds $100,000, then the Options for the first $100,000 worth
of Shares to become exercisable in such calendar year will be ISOs and the Options for the amount in excess of $100,000 that become exercisable in that calendar year will be NQSOs. In the event that the Code or the regulations promulgated thereunder
are amended after the Effective Date of this Plan to provide for a different limit on the Fair Market Value of Shares permitted to be subject to ISO, such different limit will be automatically incorporated herein and will apply to any Options
granted after the effective date of such amendment. 
  
 5.8 Modification, Extension or Renewal. The Committee may modify, extend or renew outstanding Options and authorize the grant of new Options in substitution therefore, provided that any such action may not, without the written
consent of a Participant, impair any of such Participant’s rights under any Option previously granted. Any outstanding ISO that is modified, extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the Code.
The Committee may reduce the Exercise Price of outstanding Options without the consent of Participants affected by a written notice to them. 
  
 5.9 Limitations on Exercise. The Committee may specify a reasonable minimum number of Shares that may be purchased on any exercise
of an Option, provided that such minimum number will not prevent Participant from exercising the Option for the full number of Shares for which it is then exercisable. 
  
 5.10 No Disqualification. Notwithstanding any other provision in this Plan, no term of this Plan
relating to ISOs will be interpreted, amended or altered, nor will any discretion or authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of the Code or, without the consent of the Participant affected, to
disqualify any ISO under Section 422 of the Code. 
  
 6.
Restricted Stock. A Restricted Stock Award is an offer by the Company to sell to an eligible person Shares that are subject to restrictions. The Committee will determine to whom an offer will be made, the number of Shares the person may
purchase, the price to be paid (the “Purchase Price”), the restrictions to which the Shares will be subject, and all other terms and conditions of the Restricted Stock Award, subject to the following: 
  
 6.1 Form of Restricted Stock Award. All purchases
under a Restricted Stock Award made pursuant to this Plan will be evidenced by an Award Agreement (“Restricted Stock Purchase Agreement”) that will be in such form (which need not be the same for each Participant) as the Committee will
from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. The offer of Restricted Stock will be accepted by the Participant’s execution and delivery of the Restricted Stock Purchase Agreement and
full 

  

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payment for the Shares to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is delivered to the person. If such
person does not execute and deliver the Restricted Stock Purchase Agreement along with full payment for the Shares to the Company within thirty (30) days, then the offer will terminate, unless otherwise determined by the Committee. 
  
 6.2 Purchase Price. The Purchase Price of Shares sold
pursuant to a Restricted Stock Award will be determined by the Committee on the date the Restricted Stock Award is granted. Payment of the Purchase Price may be made in accordance with Section 8 of this Plan. 
  
 6.3 Terms of Restricted Stock Awards. Restricted
Stock Awards shall be subject to such restrictions as the Committee may impose. These restrictions may be based upon completion of a specified number of years of service with the Company or upon completion of the performance goals as set out in
advance in the Participant’s individual Restricted Stock Purchase Agreement. Restricted Stock Awards may vary from Participant to Participant and between groups of Participants. Prior to the grant of a Restricted Stock Award, the Committee
shall: (a) determine the nature, length and starting date of any Performance Period for the Restricted Stock Award; (b) select from among the Performance Factors to be used to measure performance goals, if any; and (c) determine the number of Shares
that may be awarded to the Participant. Prior to the payment of any Restricted Stock Award, the Committee shall determine the extent to which such Restricted Stock Award has been earned. Performance Periods may overlap and Participants may
participate simultaneously with respect to Restricted Stock Awards that are subject to different Performance Periods and having different performance goals and other criteria. 
  
 6.4 Stock Restrictions. Each certificate representing Restricted Stock awarded under the Plan shall
bear the following legend until the lapse of all restrictions with respect to such Stock: 
  
 “Transfer of this certificate and the shares represented hereby is restricted pursuant to the terms of a Restricted Stock Agreement,
dated as of             , between WARP Technology Holdings, Inc. and             . A copy of such Agreement is on
file at the Principal executive offices of the Company.” 
  
 Stop transfer orders shall be entered with the Company’s transfer agent and registrar against the transfer of legended securities. 
  
 6.5 Termination During Performance Period. If a Participant is Terminated during a Performance Period for any reason, then such
Participant will be entitled to payment (whether in Shares, cash or otherwise) with respect to the Restricted Stock Award only to the extent earned as of the date of Termination in accordance with the Restricted Stock Purchase Agreement, unless the
Committee will determine otherwise. 
  

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 7. Stock Bonuses. 
  
 7.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares (which may consist of Restricted
Stock) for services rendered to the Company or any Parent or Subsidiary of the Company. A Stock Bonus may be awarded for past services already rendered to the Company, or any Parent or Subsidiary of the Company pursuant to an Award Agreement (the
“Stock Bonus Agreement”) that will be in such form (which need not be the same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. A Stock
Bonus may also be awarded upon satisfaction of such performance goals as are set out in advance in a Participant’s individual Award Agreement (the “Performance Stock Bonus Agreement”) that will be in such form (which need not be the
same for each Participant) as the Committee will from time to time approve, and will comply with and be subject to the terms and conditions of this Plan. Stock Bonuses may vary from Participant to Participant and between groups of Participants, and
may be based upon the achievement of the Company, Parent or Subsidiary and/or individual performance factors or upon such other criteria as the Committee may determine. 
  
 7.2 Terms of Stock Bonuses. The Committee will determine the number of Shares to be awarded to the
Participant. If the Stock Bonus is being earned upon the satisfaction of performance goals pursuant to a Performance Stock Bonus Agreement, then the Committee will: (a) determine the nature, length and starting date of any Performance Period for
each Stock Bonus; (b) select from among the Performance Factors to be used to measure the performance, if any; and (c) determine the number of Shares that may be awarded to the Participant. Prior to the payment of any Stock Bonus, the Committee
shall determine the extent to which such Stock Bonuses have been earned. Performance Periods may overlap and Participants may participate simultaneously with respect to Stock Bonuses that are subject to different Performance Periods and different
performance goals and other criteria. The number of Shares may be fixed or may vary in accordance with such performance goals and criteria as may be determined by the Committee. The Committee may adjust the performance goals applicable to the Stock
Bonuses to take into account changes in law and accounting or tax rules and to make such adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary or unusual items, events or circumstances to avoid windfalls
or hardships. 
  
 7.3 Form of Payment. The
earned portion of a Stock Bonus may be paid currently or on a deferred basis with such interest or dividend equivalent, if any, as the Committee may determine. Payment may be made in the form of cash or whole Shares or a combination thereof, either
in a lump sum payment or in installments, all as the Committee will determine. 
  

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 8. Payment For Share Purchases. 
  
 8.1 Payment. Payment for Shares purchased pursuant to
this Plan may be made in cash (by check) or, where expressly approved for the Participant by the Committee and where permitted by law: 
  

	 	a.	by cancellation of indebtedness of the Company to the Participant; 

  

	 	b.	by surrender of shares that either: (1) have been owned by Participant for more than six (6) months and have been paid for within the meaning of SEC Rule 144 (and, if such shares
were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); or (2) were obtained by Participant in the public market; 

  

	 	c.	by waiver of compensation due or accrued to the Participant for services rendered; 

  

	 	d.	with respect only to purchases upon exercise of an Option, and provided that a public market for the Company’s stock exists: 

  

	 	(1)	through a “same day sale” commitment from the Participant and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD
Dealer”) whereby the Participant irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward
the Exercise Price directly to the Company; or 

  

	 	(2)	through a “margin” commitment from the Participant and a NASD Dealer whereby the Participant irrevocably elects to exercise the Option and to pledge the Shares so
purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the Exercise Price directly to
the Company; or 

  

	 	e.	by such other method as the Committee or the Board deems appropriate in its sole discretion. 

  
 9. Withholding Taxes. 
  
 9.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of Awards granted under
this Plan, the Company may require the Participant to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares. Whenever,
under this Plan, 

  

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payments in satisfaction of Awards are to be made in cash, such payment will be net of an amount sufficient to satisfy federal, state, and local withholding
tax requirements. 
  
 9.2 Stock
Withholding. When, under applicable tax laws, a Participant incurs tax liability in connection with the exercise or vesting of any Award that is subject to tax withholding and the Participant is obligated to pay the Company the amount required
to be withheld, the Committee may in its sole discretion allow the Participant to satisfy the minimum withholding tax obligation by electing to have the Company withhold from the Shares to be issued that number of Shares having a Fair Market Value
equal to the minimum amount required to be withheld, determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this purpose will be made in accordance with the
requirements established by the Committee and be in writing in a form acceptable to the Committee. 
  
 10. Privileges of Stock Ownership. No Participant will have any of the rights of a stockholder with respect to any Shares until the Shares
are issued to the Participant. After Shares are issued to the Participant, the Participant will be a stockholder and have all the rights of a stockholder with respect to such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such Shares are Restricted Stock, then any new, additional or different securities the Participant may become entitled to receive with respect to such Shares by virtue of a
stock dividend, stock split or any other change in the corporate or capital structure of the Company will be subject to the same restrictions as the Restricted Stock; provided, further, that the Participant will have no right to retain such stock
dividends or stock distributions with respect to Shares that are repurchased at the Participant’s Purchase Price or Exercise Price pursuant to Section 12. 
  

11. Transferability. Awards granted under this Plan, and any interest therein, will not be transferable or assignable by Participant, and
may not be made subject to execution, attachment or similar process, otherwise than by will or by the laws of descent and distribution or as determined by the Committee and set forth in the Award Agreement with respect to Awards that are not ISOs.
During the lifetime of the Participant an Award will be exercisable only by the Participant, and any elections with respect to an Award may be made only by the Participant unless otherwise determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs. 
  
 12.
Restrictions on Shares. At the discretion of the Committee, the Company may reserve to itself and/or its assignee(s) in the Award Agreement a right to repurchase a portion of or all Unvested Shares held by a Participant following such
Participant’s Termination at any time within ninety (90) days after the later of Participant’s Termination Date and the date Participant purchases Shares under this Plan, for cash and/or cancellation of purchase money indebtedness, at the
Participant’s Exercise Price or Purchase Price, as the case may be. 
  

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 13. Certificates. All certificates for Shares or other securities delivered under this Plan
will be subject to such stock transfer orders, legends and other restrictions as the Committee may deem necessary or advisable, including restrictions under any applicable federal, state or foreign securities law, or any rules, regulations and other
requirements of the SEC or any stock exchange or automated quotation system upon which the Shares may be listed or quoted. 
  
 14. Escrow; Pledge of Shares. To enforce any restrictions on a Participant’s Shares, the Committee may require the Participant to
deposit all certificates representing Shares, together with stock powers or other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until such
restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. 
  
 15. Exchange And Buyout of Awards. The Committee may, at any time or from time to time, authorize the Company, with the consent of the
respective Participants, to issue new Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The Committee may at any time buy from a Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as the Committee and the Participant may agree. 
  
 16. Securities Law And Other Regulatory Compliance. An Award will not be effective unless such Award is in compliance with all applicable
federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the Shares may then be listed or quoted, as they are in effect on the date of
grant of the Award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for Shares under this Plan prior to: (a) obtaining any
approvals from governmental agencies that the Company determines are necessary or advisable; and/or (b) completion of any registration or other qualification of such Shares under any state or federal law or ruling of any governmental body that the
Company determines to be necessary or advisable. The Company will be under no obligation to register the Shares with the SEC or to effect compliance with the registration, qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so. 
  
 17. No Obligation to Employ. Nothing in this Plan or any Award granted under this Plan will confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company or limit in any way the right of the Company or any Parent or Subsidiary of the Company to terminate
Participant’s employment or other relationship at any time, with or without cause. 
  

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 18. Corporate Transactions. 
  
 18.1 Assumption or Replacement of Awards by Successor. In the event of (a) a dissolution or
liquidation of the Company, (b) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or
other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Awards granted under this Plan are assumed, converted or replaced by the successor corporation, which assumption
will be binding on all Participants), (c) a merger in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls
another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (d) the sale of substantially all of the assets of the Company, or (e) the acquisition, sale, or transfer of more
than 50% of the outstanding shares of the Company by tender offer or similar transaction, any or all outstanding Awards may be assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement will be
binding on all Participants. In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar consideration to Participants as was provided to stockholders (after taking into account the existing
provisions of the Awards). The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the
Participant. In the event such successor corporation (if any) refuses to assume or substitute Awards, as provided above, pursuant to a transaction described in this Subsection 18.1, such Awards will expire on such transaction at such time and on
such conditions as the Committee will determine. Notwithstanding anything in this Plan to the contrary, the Committee may, in its sole discretion, provide that the vesting of any or all Awards granted pursuant to this Plan will accelerate upon a
transaction described in this Section 18 or otherwise. If the Committee exercises such discretion with respect to Options, such Options will become exercisable in full prior to the consummation of such event at such time and on such conditions as
the Committee determines, and if such Options are not exercised prior to the consummation of the corporate transaction, they shall terminate at such time as determined by the Committee. 
  
 18.2 Other Treatment of Awards. Subject to any greater rights granted to Participants under the
foregoing provisions of this Section 18, in the event of the occurrence of any transaction described in Section 18.1, any outstanding Awards will be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution,
liquidation, or sale of assets. 
  
 18.3
Assumption of Awards by the Company. The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other company or otherwise, by either; (a)
granting an Award under this Plan in substitution of such other company’s award; or (b) assuming such award as if it had been granted under this Plan if the terms of such assumed award could be 

  

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applied to an Award granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or assumed award would have
been eligible to be granted an Award under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an award granted by another company, the terms and conditions of such award will remain
unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option
rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. 
  
 18.4 Adjustment of Shares. In the event that the number of outstanding shares is changed by a stock dividend, recapitalization,
stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without consideration, then (a) the number of Shares reserved for issuance under this Plan, (b) the Exercise
Prices of and number of Shares subject to outstanding Options, and (c) the number of Shares subject to other outstanding Awards will be proportionately adjusted, subject to any required action by the Board or the stockholders of the Company and
compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such fraction of a Share or will be rounded up to the nearest
whole Share, as determined by the Committee. 
  
 19. Term of
Plan. Unless earlier terminated as provided herein, this Plan will terminate ten (10) years from the date this Plan is adopted by the Board. 
  
 20. Amendment or Termination of Plan. The Board may at any time terminate or amend this Plan in any respect, including without limitation
amendment of any form of Award Agreement or instrument to be executed pursuant to this Plan; provided, however, that the Board will not, without the approval of the stockholders of the Company, amend this Plan in any manner that requires such
stockholder approval. 
  
 21. General. 

 
 21.1 Additional Provisions of an Award. Awards
under the Plan also may be subject to such other provisions (whether or not applicable to the benefit awarded to any other Participant) as the Committee determines appropriate including, without limitation, provisions for the forfeiture of or
restrictions on resale or other disposition of shares of Stock acquired under any Award, provisions giving the Company the right to repurchase shares of Stock acquired under any Award in the event the Participant elects to dispose of such shares,
and provisions to comply with Federal and state securities laws and Federal and state tax withholding requirements. Any such provisions shall be reflected in the applicable Award agreement. 
  
 21.2. Claim to Awards and Employment Rights. No
employee or other person shall have any claim or right to be granted an Award under the Plan or, having been selected for 

  

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the grant of an Award, to be selected for a grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any
Participant any right to be retained in the employ or service of the Company, a Subsidiary or an Affiliate. 
  
 21.3. Designation and Change of Beneficiary. Each Participant shall file with the Committee a written designation of one or more
persons as the beneficiary who shall be entitled to receive the amounts payable with respect to an Award of Restricted Stock, if any, due under the Plan upon his death. A Participant may, from time to time, revoke or change his beneficiary
designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or change or
revocation thereof, shall be effective unless received by the Committee prior to the Participant’s death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by the Participant, the
beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate. 
  
 21.4. Payments to Persons Other Than Participants. If the Committee shall find that any person to whom any amount is payable under
the Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his estate (unless a prior claim therefore has been made by a duly appointed legal representative) may, if
the Committee so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise
entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefore. 
  
 21.5. No Liability of Committee Members. No member of the Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on his behalf in his capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the Committee and each other
employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum
paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or willful bad faith; provided, however, that approval of the Board shall be
required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company’s Articles of Incorporation or By-Laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  

 13 

 21.6. Governing law. The Plan and all agreements hereunder shall be governed by
and construed in accordance with the internal laws of the State of Nevada without regard to the principles of conflicts of law thereof. 
  
 21.7. Funding. No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to
purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a
segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of
additional compensation by performance of services, they shall have the same rights as other employees under general law. 
  
 21.8. Reliance on Reports. Each member of the Committee and each member of the Board shall be fully justified in relying, acting or
failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Subsidiaries and Affiliates and upon any other information furnished
in connection with the Plan by any person or persons other than himself. 
  
 21.9. Relationship to Other Benefits. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of
the Company or any Subsidiary except as otherwise specifically provided in such other plan. 
  
 21.10. Expenses. The expenses of administering the Plan shall be borne by the Company and its Subsidiaries and Affiliates.

  
 21.11. Pronouns. Masculine pronouns
and other words of masculine gender shall refer to both men and women. 
  
 21.12. Titles and Headings. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings
shall control. 
  
 21.13. Termination of
Employment. For all purposes herein, a person who transfers from employment or service with the Company to employment or service with a Subsidiary or Affiliate or vice versa shall not be deemed to have terminated employment or service with the
Company, a Subsidiary or Affiliate. 
  
 21.14
Nonexclusivity of The Plan. Neither the adoption of this Plan by the Board, the submission of this Plan to the stockholders of the Company for approval, nor any provision of this Plan will be construed as creating any limitations
on the power of the Board to 

  

 14 

 
adopt such incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options and bonuses otherwise than under
this Plan, and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 22. Definitions. As used in this Plan, the following terms will have the following meanings: 
  
 “Affiliate” means any affiliate of the Company within the meaning
of 17 CFR 230.405. 
  
 “Award” means any award under
this Plan, including any Option, Restricted Stock or Stock Bonus. 
  
 “Award Agreement” means, with respect to each Award, the signed written agreement between the Company and the Participant setting forth the terms and conditions of the Award. 
  
 “Board” means the Board of Directors of the Company. 

 
 “Cause” means the Company, a Subsidiary or Affiliate having
cause to terminate a Participant’s employment or service under any existing employment, consulting or any other agreement between the Participant and the Company or a Subsidiary or Affiliate or, in the absence of such an employment, consulting
or other agreement, upon (i) the determination by the Committee that the Participant has ceased to perform his duties to the Company, a Subsidiary or Affiliate (other than as a result of his incapacity due to physical or mental illness or injury),
which failure amounts to an intentional and extended neglect of his duties to such party, (ii) the Committee’s determination that the Participant has engaged or is about to engage in conduct materially injurious to the Company, a Subsidiary or
Affiliate or (iii) the Participant having been convicted of a felony. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any regulations under such section.

  
 “Committee” means the Stock Option Committee or
such other committee appointed by the Board consisting of two or more Outside Directors, or in the absence of any such committee, the full Board of Directors of the Company. 
  
 “Company” means WARP Technology Holdings, Inc. or any successor corporation. 
  
 “Disability” means a disability, whether temporary or permanent,
partial or total, as determined by the Committee. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

 15 

 “Exercise Price” means the price at which a holder of an Option may purchase the Shares
issuable upon exercise of the Option. 
  
 “Fair Market
Value” means, as of any date, the value of a share of the Company’s Common Stock determined as follows: 
  

	 	a	if such Common Stock is then quoted on the NASDAQ National Market, its closing price on the NASDAQ National Market on the date of determination as reported in The Wall Street
Journal; 

  

	 	b	if such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal national securities
exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; 

  

	 	c	if such Common Stock is publicly traded but is not quoted on the NASDAQ National Market nor listed or admitted to trading on a national securities exchange, the average of the
closing bid and asked prices on the date of determination as reported in The Wall Street Journal; 

  

	 	d	if none of the foregoing is applicable, by the Committee in good faith. 

  
 “Insider” means an officer or director of the Company or any other person whose transactions in the Company’s Common Stock are subject to
Section 16 of the Exchange Act. 
  
 “Option” means an
award of an option to purchase Shares pursuant to Section 5. 
  
 “Outside Director” means a person who is (i) a “nonemployee director” within the meaning of Rule 16b-3 under the Exchange Act, or any successor rule or regulation and (ii) an “outside director” within the
meaning of Section 162(m) of the Code. 
  
 “Parent”
means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company if each of such corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. 
  
 “Participant” means a person who receives an Award under this Plan. 
  
 “Performance Factors” means the factors selected by the Committee from among the following measures to determine whether the performance goals established by the Committee and applicable to Awards have been
satisfied: 
  

	 	a	Net revenue and/or net revenue growth; 

  

 16 

	 	b	Earnings before income taxes and amortization and/or earnings before income taxes and amortization growth; 

  

	 	c	Operating income and/or operating income growth; 

  

	 	d	Net income and/or net income growth; 

  

	 	e	Earnings per share and/or earnings per share growth; 

  

	 	f	Total stockholder return and/or total stockholder return growth; 

  

	 	g	Return on equity; 

  

	 	h	Operating cash flow return on income; 

  

	 	i	Adjusted operating cash flow return on income; 

  

	 	j	Economic value added; and 

  

	 	k	Individual confidential business objectives. 

  
 “Performance Period” means the period of service determined by the Committee, not to exceed five years, during which years of service or
performance is to be measured for Restricted Stock Awards or Stock Bonuses. 
  
 “Plan” means this WARP Technology Holdings, Inc. 2002 Stock Incentive Plan, as amended from time to time. 
  
 “Restricted Stock Award” means an award of Shares pursuant to Section 6. 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Shares” means shares of the Company’s Common Stock reserved
for issuance under this Plan, as adjusted pursuant to Sections 2 and 18, and any successor security. 
  
 “Stock Bonus” means an award of Shares, or cash in lieu of Shares, pursuant to Section 7. 
  

 17 

 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain. 
  
 “Termination” or
“Terminated” means, for purposes of this Plan with respect to a Participant, that the Participant has for any reason ceased to provide services as an employee, officer, director, consultant, independent contractor, or advisor to the
Company or a Parent or Subsidiary of the Company. An employee will not be deemed to have ceased to provide services in the case of (i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee, provided, that
such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute or unless provided otherwise pursuant to formal policy adopted from time to time by the Company and
issued and promulgated to employees in writing. In the case of any employee on an approved leave of absence, the Committee may make such provisions respecting suspension of vesting of the Award while on leave from the employ of the Company or a
Subsidiary as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the Option agreement. The Committee will have sole discretion to determine whether a Participant has ceased to
provide services and the effective date on which the Participant ceased to provide services (the “Termination Date”). 
  
 “Unvested Shares” means “Unvested Shares” as defined in the Award Agreement. 
  
 “Vested Shares” means “Vested Shares” as defined in the
Award Agreement. 
  
 As adopted by the Board of Directors of WARP
Technology Holdings, Inc. as of November     , 2002. 
  

 18Non-Plan Stock Option Agreement

 Exhibit 4.1 
  

Stock Option Agreement 
  

			
	 Optionee
	  	Wayne R. Inouye
	 Grant Date
	  	March 11, 2004
	 Vesting Start Date
	  	March 11, 2004
	 Exercise Price
	  	$5.19
	 Option Shares
	  	10,000,000

  
 Pursuant to an
Employment Agreement dated as of January 30, 2004 between Gateway, Inc. and Wayne R. Inouye, Gateway Inc. hereby grants to Wayne R. Inouye (“Optionee”) a non-qualified stock option to allow Optionee to purchase shares of the Company’s
Common Stock up to the number of shares shown by Option Shares, above, on the terms described herein. The Option is effective as of the Grant Date shown above. The Company will deliver to Optionee certificates for shares purchased under the Option
upon payment of the Exercise Price, subject to the terms and conditions set forth in the Agreement. 
  
 1.    Definitions. Capitalized terms used herein have the following meanings: 
  
 1.1    Board means the Board of Directors of the Company. 
  
 1.2    Cause shall mean any of the following: (A) Optionee’s engaging in (1) any material acts of
fraud, theft, embezzlement, or (2) any other acts or omissions that would constitute violations of any applicable securities law, the Foreign Corrupt Practices Act, or any similar law, ordinance, rule, regulation, decree or order of any Governmental
Entity (as defined in the Employment Agreement), that cause or result in material harm or injury to the Company and its affiliates taken as a whole; (B) the Company having four (4) consecutive quarters of negative EBITDA at any time after the 2005
calendar year; (C) Optionee’s willful misconduct in connection with his responsibilities as an employee, director, or other representative of the Company; (D) Optionee’s unreasonable neglect or refusal to perform some or all of the
material duties assigned to him pursuant to this Agreement and/or otherwise appropriate to Optionee’s position; (E) Optionee’s conviction for any felony, including any plea of guilty or nolo contendere or placement in a pretrial diversion
program; and/or (F) Optionee’s material breach of any of the terms of the Employment Agreement or any other agreement that he now has or later has with the Company and/or any of its affiliates. 
  
 1.3    Change of Control of the Company shall mean the
following: 
  
 Any Person is or becomes the beneficial owner
(within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of the Company representing a percentage of the combined voting power of the Company’s then outstanding securities that is at
least equal to the greater of (x) 30% and (y) the percentage of such combined voting power then owned by Theodore Waitt and his affiliates and associates; or 
  

the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either
were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 
  

 there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the
Company with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately
after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, directly or indirectly, of securities of the
Company representing a percentage of the combined voting power of the Company’s then outstanding securities that is at least equal to the greater of (x) 30% and (y) the percentage of such combined voting power then owned by Theodore Waitt and
his affiliates and associates; or 
  
 the stockholders of the
Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition
by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their
ownership of the Company immediately prior to such sale. 
  
 1.4    Code means the Internal Revenue Code of 1986, as amended. 
  
 1.5    Committee means the Compensation Committee of the Board. 
  
 1.6    Common Stock means the Company’s Common Stock, par value $.01 per share. 
  
 1.7    Company means Gateway, Inc., a Delaware
corporation. 
  
 1.8    Disability shall mean
for purposes of this Agreement, that an Optionee shall be deemed to have a Disability if, for physical or mental reasons, Optionee is, with or without reasonable accommodation, unable to perform the essential functions of his job duties for a period
of not less than ninety (90) calendar days during any twelve-month period, and is entitled to disability benefits under the Company’s then-existing long-term disability plan. 
  
 1.9    Employment Agreement shall mean the Employment Agreement dated as of January 30, 2004 between
Gateway, Inc. and Wayne R. Inouye. 
  
 1.10  Exchange
Act means the Securities Exchange Act of 1934, as amended. 
  
 1.11  Exercise of the Option means the purchase by Optionee of Option Shares under Section 2. 
  
 1.12  Exercise Price means the Exercise Price shown above, which is the closing price per share of the Common Stock as reported in The Wall
Street Journal or similar readily available public source for the Grant Date. 
  
 1.13  Good Reason shall mean Optionee gives notice of his voluntary resignation of his employment after the occurrence of any of the following, without Optionee’s written consent: (A) a material
reduction of Optionee’s duties, position or responsibilities as CEO relative to Optionee’s duties, position, or responsibilities as CEO in effect immediately prior to such reduction including by virtue of the Company being acquired and
made part of a larger entity (as, for example, when the Chief Executive Officer of a company remains as such following a Change of Control of the Company but is not made the Chief Executive Officer of the acquiring company); (B) a material breach of
this Agreement by the Company; (C) a material reduction in Optionee’s Base Salary (as defined in the Employment Agreement); (D) the failure to be nominated for re-election to the Board or (E) the Company requires Optionee to be based
(excluding regular travel responsibility) at any office or location more than 50 miles from the principal office of the Company at the Effective Date. 
  

 1.14  Option means the option to purchase Common Stock granted Optionee by this Agreement.

  
 1.15  Optionee means Wayne R. Inouye. 

 
 1.16  Option Shares means all shares of Common Stock issued or
issuable upon Option exercise, as adjusted under Section 8. 
  
 1.17  Requirements has the meaning provided in Section 10. 
  
 1.18  Securities Act means the Securities Act of 1933, as amended. 
  
 1.19  Service means continuous active service as an employee of the Company or a subsidiary of the Company. 
  
 2.    Exercise. Optionee may exercise the Option, in one or
more transactions, to the extent that at the time of exercise the Option is vested (as provided in Section 3) and has not expired (as provided in Section 5.1). Optionee exercises the Option by giving a written notice that the Option is to be
exercised pursuant to the Company stock option exercise program established with a Company-approved broker. As of the date of this grant, the Company’s program is administered by Salomon Smith Barney as the Company-approved broker, but the
company may designate alternative or additional Company-approved brokers from time to time. 
  
 3.    Vesting. Subject to the terms of this Option Agreement, the Option will vest in four (4) annual installments from the Grant Date as follows: (i) on the first anniversary of the
date of grant, one million (1,000,000) shares shall vest, (ii) on the second anniversary of the date of grant, two million (2,000,000) shares shall vest, (iii) on the third anniversary of the date of grant, three million (3,000,000) shares shall
vest, and (iv) on the fourth anniversary of the date of grant, four million (4,000,000) shares shall vest. 
  

	4.    Termination	of Service. 

  
 (a) Except as set forth in Section 4(b) – (d), the Option can vest only when Optionee is in Service. 
  
 (b) Effect of Death or Disability. In the event of
Optionee’s death or Disability during Optionee’s Service and before expiration of the Option, the Option shall immediately be 100% vested as of the date of death or Disability. 
  
 (c) Termination by the Company for Cause or by Optionee other than for Good Reason. At any time during the
four year period beginning with the Grant Date, if the Company terminates Optionee’s employment under the Employment Agreement for Cause, or Optionee terminates his employment with the Company other than for Good Reason, the Option shall
immediately terminate and all unvested portions of the Option shall immediately be forfeited by him. 
  
 (d) Termination by Optionee for Good Reason or by the Company other than for Death, Disability or Cause. At any time during the four year
period beginning with the Grant Date, if Optionee’s employment is terminated by Optionee for Good Reason, or by the Company for any reason other than Optionee’s death, Disability or for Cause, the Option shall immediately be 100% vested as
of the date of such termination. In the event of such termination following a Change of Control, the Optionee shall be entitled to an excise tax gross-up payment, if any, pursuant to the terms of Appendix “A” to the Employment Agreement.

  
 5.1  Expiration of the Option. 
  
 (a) Except as otherwise provided in this Agreement, the Option will expire
at midnight of the day before the tenth anniversary date of the Grant Date (the “Normal Option Expiration Date”). 
  
 (b) In the event the Optionee’s Service terminates prior to the Normal Option Expiration Date, then (i) the Option will expire at midnight of the
last day of the post-termination exercise period, if applicable, as provided under Section 5.2, or (ii) if no post-termination exercise period applies, the Option will expire at midnight on the last day of the Optionee’s Service. 
  

 5.2  Post-Termination Expiration in Connection with Termination of Service. 
  
 (a) Except as provided in Section 5.2(c), in the event Optionee’s
Service terminates due to Optionee’s death or Disability, Optionee (or his estate) shall have 90 days following the date of termination of Service to exercise any vested Options. 
  
 (b) Except as provided in Section 5.2(c), in the event Optionee’s Service is terminated by the Company other than for
Cause or voluntarily terminated by Optionee for Good Reason, Optionee shall have 90 days following the date of termination of Service to exercise any vested Options. 
  
 (c) Except as provided in Section 5.2(d), in the event Optionee’s Service is terminated by the Company for Cause or
voluntarily terminated by Optionee without Good Reason, Optionee shall have 10 days following the date of termination of Service to exercise any vested options. 
  

(d) In the event Optionee’s Service terminates upon or within twelve (12) months of a Change of Control, Optionee shall have 30 days following the
date of termination of Service to exercise any vested Options. 
  
 6.    Withholding of Taxes and Commissions. The Company shall, as a condition of Option exercise, require payment by Optionee of any withholding or other tax due upon Option exercise. 
  
 7.    Payment. Payments by Optionee required under Section
6 may be made either in cash (including certified or cashier’s check, or money order) or by delivery of other shares of Common Stock already owned by Optionee for at least six months and to which Optionee has good title, free and clear of all
liens and encumbrances or by any other means in accordance with applicable law as approved by the Committee. 
  
 8.    Adjustments. In the event of any stock dividend, stock split, recapitalization, reorganization, merger, consolidation, combination or exchanges of shares, or any other similar
change affecting the Common Stock, the Committee, in its sole discretion and to the extent the Option is unexercised, may adjust the Exercise Price and the number and type of Option Shares subject, in each case, to compliance with applicable law.

  
 9.    Transferability. The Option is
personal to Optionee and is not transferable by Optionee except by will or other transfer to his estate or immediate family members upon death of Optionee. Any transfer of the Option or Option Shares in violation of this Agreement is void from
inception. 
  
 10. Registration. The Company is not obligated to
issue any shares of Common Stock upon Option exercise unless (1) such shares have been registered under the Securities Act or an exemption from such registration is available and otherwise deemed appropriate by the Committee for such issuance; and
(2) such issuance is in compliance with applicable law and regulations and the requirements of any stock exchange, quotation service or similar agency on which the Common Stock may then be listed or quoted (such law, regulations and requirements
being collectively referred to herein as Requirements). The Company has no obligation to so register shares of Common Stock or to so comply with Requirements. 
  

11. Remedies. Each party is entitled to enforce its rights under this Agreement and to recover damages for breach. The parties agree that money damages
may not always be an adequate remedy for breach, and in such event the wronged party may, in its sole discretion, request specific performance and/or injunctive relief (without posting bond or other security) from any court of competent jurisdiction
to enforce or prevent any breach of this Agreement. 
  
 12. Employment
Agreement. This Option is granted pursuant to the Employment Agreement. In the event of any conflict between the provisions of this Agreement and the Employment Agreement, the provisions of the Employment Agreement shall govern. 

 

 13. Miscellaneous. This Agreement is not an offer and is effective only when fully signed. All required
notices must be in writing and are deemed given upon delivery if sent with return receipt via a reputable delivery service. No failure or delay to enforce a provision will be deemed a waiver thereof. The invalidity of any provision will not affect
the validity of any other provision. Descriptive headings are intended as a convenience and not as operative text. This Agreement is governed by the internal law of the state of Delaware, USA in all respects. This Agreement may be signed in
counterparts, is (together with the Employment Agreement) the entire and exclusive set of terms and conditions for transactions made under it and binds and benefits the permitted successors and assigns of all parties. This Agreement may only be
modified by a writing signed by all parties, unless the modification only enhances Optionee’s rights, in which case it can become effective with only the Company’s signature. 
  
 14. Optionee Acknowledgment. Optionee agrees, represents and acknowledges that (1) Optionee’s exercise of the Option and
purchase of Option Shares will be for Optionee’s own account and not on behalf of any others; (2) certain laws govern and restrict Optionee’s right to offer, sell or otherwise dispose of any Option Shares, unless an exemption from
such laws is available and otherwise deemed appropriate by the Committee; (3) Optionee will not offer, sell or otherwise dispose of any Option Shares in any way which would cause Optionee or any the Company to violate any Requirement or require
the Company to register such disposition under any Requirement; (4) Optionee may be required upon Option exercise or upon subsequent transfer of Option Shares to furnish representations and undertakings deemed appropriate by the Committee for
compliance with Requirements; (5) certificates evidencing Option Shares will bear such legends, if any, deemed appropriate by the Committee for compliance with Requirements; (6) Optionee will not offer, sell or otherwise dispose of any Option Shares
in violation of any policy of the Company; (7) the Option is not intended to be an incentive stock option within the meaning of Section 422 of the Code; (8) Optionee only has rights as a stockholder of Option Shares if and to the extent that
Optionee exercises the Option and retains ownership of Option Shares; (9) Optionee has received and read a signed original of this Agreement; (10) Optionee, by signing below, accepts the Option; (11) Optionee will be bound by the provisions of
this Agreement as of the Grant Date; and (12) Optionee has read and agrees to be bound by the Company’s Securities Trading Policy or any successor policy, and by any applicable trading black-out dates the Company may designate. 

 
 The parties, or their respective, authorized representatives, have signed
this Agreement effective as of the Grant Date: 
  

									
	 Optionee
	 	 	 	Gateway, Inc.
					
	Signed:	 	 	 	 	 	Signed:	 	 
	 	 	
	 	 	 	 	 	

	 	 	Wayne R. Inouye	 	 	 	 	 	 Theodore W. Waitt
 Chairman and
 Chief Executive Officer

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