Document:

EXHIBIT A

                             2000 STOCK OPTION PLAN

                                       OF

                               ION NETWORKS, INC.

        1. Purposes of the Plan. This stock option plan (the "Plan") is intended

to provide an incentive to employees  (including  directors and officers who are

employees),  and to  consultants  and  directors who are not  employees,  of Ion

Networks,  Inc.,  a  Delaware  corporation  (the  "Company"),   or  any  of  its

Subsidiaries  (as  such  term is  defined  in  Paragraph  19),  and to  offer an

additional  inducement in obtaining the services of such  individuals.  The Plan

provides for the grant of "incentive stock options"  ("ISOs") within the meaning

of Section 422 of the Internal  Revenue Code of 1986,  as amended (the  "Code"),

and  nonqualified  stock  options  which do not qualify as ISOs  ("NQSOs").  The

Company  makes no  representation  or  warranty,  express or implied,  as to the

qualification of any option as an "incentive stock option" under the Code.

        2. Stock Subject to the Plan. Subject to the provisions of Paragraph 12,

the aggregate  number of shares of the Company's  Common Stock,  par value $.001

per share  ("Common  Stock"),  for which  options may be granted  under the Plan

shall not exceed  3,000,000  shares.  Such  shares of Common  Stock may,  in the

discretion of the Board of Directors of the Company (the "Board of  Directors"),

consist either in whole or in part of authorized  but unissued  shares of Common

Stock or shares of Common Stock held in the treasury of the Company.  Subject to

the  provisions of Paragraph 13, any shares of Common Stock subject to an option

which for any reason expires, is canceled or is terminated  unexercised or which

ceases for any reason to be  exercisable  shall again become  available  for the

granting of options  under the Plan.  However,  should the exercise  price of an

option  under the Plan be paid with shares of Common  Stock or should  shares of

Common  Stock  otherwise  issuable  under the Plan be withheld by the Company in

satisfaction of the  withholding  taxes incurred in connection with the exercise

of an option,  then the number of shares of Common Stock  available for issuance

under the Plan  shall be  reduced  by the gross  number of shares  for which the

option is exercised,  and not by the net number of shares of Common Stock issued

to the holder of such option.  The Company shall at all times during the term of

the Plan  reserve and keep  available  such number of shares of Common  Stock as

will be sufficient to satisfy the requirements of the Plan.

        3.  Administration  of the Plan.  The Plan will be  administered  by the

Board of Directors,  or by a committee  (the  "Committee")  consisting of two or

more directors appointed by the Board of Directors. Those administering the Plan

shall  be  referred  to  herein  as the  "Administrators."  Notwithstanding  the

foregoing,  if the  Company is or  becomes a  corporation  issuing  any class of

common  equity  securities  required to be  registered  under  Section 12 of the

Securities  Exchange Act of 1934, as amended (the "Exchange Act"), to the extent

necessary  to preserve  any  deduction  under  Section  162(m) of the Code or to

comply with Rule 16b-3 promulgated under the Exchange Act, or any successor rule

("Rule 16b-3"),  any Committee appointed by the Board of Directors to administer

the Plan shall be  comprised  of two or more  directors  each of whom shall be a

"non-employee  director,"  within the  meaning of Rule  16b-3,  and an  "outside

director," within the meaning of Treasury Regulation Section 1.162-27(e)(3), and

the delegation of powers to the Committee  shall be consistent  with  applicable

laws and regulations  (including,  without limitation,  applicable state law and

Rule  16b-3).  Unless  otherwise  provided  in the  By-Laws of the  Company,  by

resolution  of the Board of  Directors  or  applicable  law, a  majority  of the

members of the Board or the Committee shall constitute a quorum, and the acts of

a majority of the  members  present at any meeting at which a quorum is present,

and any acts approved in writing by all members without a meeting,  shall be the

acts of the Board or the Committee.

         Subject to the express provisions of the Plan, the Administrators shall

have the authority, in their sole discretion, to determine the persons who shall

be granted options; the times when they shall receive options; whether an option

granted to an  employee  shall be an ISO or a NQSO;  the type  (i.e.,  voting or

non-voting)  and number of shares of Common  Stock to be subject to each option;

the term of each option; the date each option shall become exercisable;  whether

an  option  shall  be  exercisable  in  whole  or in  installments,  and,  if in

installments,  the  number  of  shares of  Common  Stock to be  subject  to each

installment;  whether  the  installments  shall be  cumulative;  the  date  each

installment shall become  exercisable and the term of each installment;  whether

to accelerate the date of exercise of any option or installment;  whether shares

of Common  Stock may be issued upon the  exercise  of an option as partly  paid,

and,  if so, the dates when  future  installments  of the  exercise  price shall

become due and the  amounts of such  installments;  the  exercise  price of each

option;  the form of payment of the exercise  price;  the fair market value of a

share of Common Stock; whether and under what conditions to restrict the sale or

other disposition of the shares of Common Stock acquired upon the exercise of an

option  and,  if so,  whether  and  under  what  conditions  to  waive  any such

restriction; whether and under what conditions to subject the exercise of all or

any  portion  of an  option  to  the  fulfillment  of  certain  restrictions  or

contingencies  as  specified  in the  contract  referred to in Paragraph 11 (the

"Contract"), including without limitation restrictions or contingencies relating

to (a) entering into a covenant not to compete with the Company,  its Parent (if

any) (as  such  term is  defined  in  Paragraph  19) and any  Subsidiaries,  (b)

financial  objectives for the Company,  any of its Subsidiaries,  a division,  a

product line or other category and/or (c) the period of continued  employment of

the  optionee  with the  Company or any of its  Subsidiaries,  and to  determine

whether such  restrictions or contingencies  have been met; the amount,  if any,

necessary to satisfy the obligation of the Company,  any of its  Subsidiaries or

any  Parent to  withhold  taxes or other  amounts;  whether  an  optionee  has a

Disability  (as such term is defined in Paragraph  19);  with the consent of the

optionee,  to cancel or modify an option,  provided,  however, that the modified

provision is permitted to be included in an option granted under the Plan on the

date of the  modification;  provided,  further,  however,  that in the case of a

modification  (within the meaning of Section 424(h) of the Code) of an ISO, such

option  as  modified  would  be  permitted  to be  granted  on the  date of such

modification  under the terms of the Plan; to construe the respective  Contracts

and the Plan; to prescribe,  amend and rescind rules and regulations relating to

the Plan  (including  the  rules  and  regulations  of the  Company's  2000 U.K.

sub-plan);  to approve any provision of the Plan or any option granted under the

Plan or any amendment to either which, under Rule 16b-3 or Section 162(m) of the

Code,  requires  the  approval  of  the  Board  of  Directors,  a  committee  of

non-employee directors or the stockholders,  in order to be exempt under Section

16(b) of the Exchange Act (unless otherwise  specifically provided herein) or to

preserve any deduction  under Section  162(m) of the Code; and to make all other

determinations   necessary  or  advisable  for   administering   the  Plan.  Any

controversy  or claim arising out of or relating to the Plan, any option granted

under  the  Plan  or  any  Contract  shall  be  determined  unilaterally  by the

Administrators in their sole discretion. The determinations of the

Administrators  on matters  referred to in this  Paragraph 3 shall be conclusive

and binding on all parties.  No Administrator or former  Administrator  shall be

liable for any action or  determination  made in good faith with  respect to the

Plan or any option granted hereunder.

        4. Eligibility.  The  Administrators  may from time to time,  consistent

with the  purposes  of the Plan,  grant  options  to such  employees  (including

officers and directors who are employees) of, or consultants  to, the Company or

any of its  Subsidiaries,  and to such directors of the Company who, at the time

of  grant,  are  not  common  law  employees  of  the  Company  or of any of its

Subsidiaries, as the Administrators may determine in their sole discretion. Such

options  granted  shall  cover  such  number of  shares  of Common  Stock as the

Administrators may determine in their sole discretion;  provided,  however, that

if on the date of grant of an option,  any class of common  stock of the Company

(including  without  limitation  the Common  Stock) is required to be registered

under  Section 12 of the Exchange Act, the maximum  number of shares  subject to

options that may be granted to any employee  during any calendar  year under the

Plan shall be 400,000 shares;  provided,  further,  however,  that the aggregate

market  value  (determined  at the time the option is  granted) of the shares of

Common Stock for which any eligible  employee may be granted ISOs under the Plan

or any other plan of the Company, or of a Parent or a Subsidiary of the Company,

which are  exercisable  for the first time by such optionee  during any calendar

year shall not exceed  $100,000.  The  $100,000 ISO  limitation  amount shall be

applied by taking ISOs into account in the order in which they were granted. Any

option (or  portion  thereof)  granted in excess of such ISO  limitation  amount

shall be treated as a NQSO to the extent of such excess.

        5.  Exercise  Price.  The  exercise  price of the shares of Common Stock

under  each  option  shall be  determined  by the  Administrators  in their sole

discretion;  provided,  however,  that the exercise price of an ISO shall not be

less than the fair market  value of the Common  Stock  subject to such option on

the date of grant; and provided,  further,  however, that if, at the time an ISO

is granted,  the optionee owns (or is deemed to own under Section  424(d) of the

Code) stock  possessing  more than 10% of the total combined voting power of all

classes of stock of the Company,  of any of its Subsidiaries or of a Parent, the

exercise  price of such ISO shall not be less than 110% of the fair market value

of the Common Stock subject to such ISO on the date of grant.

         The fair  market  value of a share of Common  Stock on any day shall be

(a) if the  principal  market  for the  Common  Stock is a  national  securities

exchange,  the average of the highest and lowest  sales  prices per share of the

Common Stock on such day as reported by such exchange or on a consolidated  tape

reflecting  transactions on such exchange,  (b) if the principal  market for the

Common  Stock is not a national  securities  exchange  and the  Common  Stock is

quoted on the Nasdaq  Stock  Market  ("Nasdaq"),  and (i) if actual  sales price

information  is available  with respect to the Common Stock,  the average of the

highest  and lowest  sales  prices per share of the Common  Stock on such day on

Nasdaq, or (ii) if such information is not available, the average of the highest

bid and the lowest  asked  prices per share for the Common  Stock on such day on

Nasdaq,  or (c) if the  principal  market for the Common Stock is not a national

securities exchange and the Common Stock is not quoted on Nasdaq, the average of

the highest bid and lowest  asked  prices per share for the Common Stock on such

day as  reported on the OTC  Bulletin  Board  Service or by  National  Quotation

Bureau, Incorporated or a comparable service; provided,

however,  that  if  clauses  (a),  (b)  and  (c) of  this  Paragraph  5 are  all

inapplicable because the Company's Common Stock is not publicly traded, or if no

trades have been made or no quotes are  available  for such day, the fair market

value of a share of Common Stock shall be  determined by the  Administrators  by

any method  consistent with any applicable  regulations  adopted by the Treasury

Department relating to stock options.

        6. Term. Each option granted pursuant to the Plan shall be for such term

as is established by the Administrators,  in their sole discretion, at or before

the time such option is granted; provided, however, that the term of each option

granted  pursuant to the Plan shall be for a period not  exceeding 10 years from

the date of grant thereof, and provided further,  that if, at the time an ISO is

granted,  the  optionee  owns (or is deemed to own under  Section  424(d) of the

Code) stock  possessing  more than 10% of the total combined voting power of all

classes of stock of the Company,  of any of its Subsidiaries or of a Parent, the

term of the ISO shall be for a period not exceeding  five years from the date of

grant. Options shall be subject to earlier termination as hereinafter provided.

        7. Exercise.  An option (or any installment thereof), to the extent then

exercisable,  shall be exercised by giving  written notice to the Company at its

principal office stating which option is being exercised,  specifying the number

of  shares of  Common  Stock as to which  such  option  is being  exercised  and

accompanied by payment in full of the aggregate  exercise price therefor (or the

amount due on exercise if the applicable Contract permits installment  payments)

(a) in cash  and/or  by  certified  check,  (b)  with the  authorization  of the

Adminstrators,  with  previously  acquired  shares  of  Common  Stock  having an

aggregate fair market value  (determined in accordance with Paragraph 5), on the

date of exercise,  equal to the  aggregate  exercise  price of all options being

exercised, or (c) some combination thereof;  provided,  however, that in no case

may shares be  tendered  if such  tender  would  require  the Company to incur a

charge against its earnings for financial accounting purposes. The Company shall

not be required to issue any shares of Common Stock  pursuant to the exercise of

any option until all required payments with respect thereto,  including payments

for any required withholding amounts, have been made.

         The Administrators may, in their sole discretion, permit payment of the

exercise  price of an option by delivery by the optionee of a properly  executed

notice,  together with a copy of the optionee's  irrevocable  instructions  to a

broker  acceptable to the  Administrators to deliver promptly to the Company the

amount  of sale or loan  proceeds  sufficient  to pay such  exercise  price.  In

connection  therewith,  the Company may enter into  agreements  for  coordinated

procedures with one or more brokerage firms.

         An optionee shall not have the rights of a stockholder  with respect to

such shares of Common Stock to be received  upon the exercise of an option until

the date of issuance of a stock  certificate to the optionee for such shares or,

in the case of  uncertificated  shares,  until  the date an entry is made on the

books of the  Company's  transfer  agent  representing  such  shares;  provided,

however, that until such stock certificate is issued or until such book entry is

made, any optionee using  previously  acquired shares of Common Stock in payment

of an option  exercise  price shall continue to have the rights of a stockholder

with respect to such previously acquired shares.

In no case may a fraction of a share of Common  Stock be  purchased  or

issued under the Plan.

        8.  Termination  of  Relationship.  Except as may otherwise be expressly

provided in the applicable Contract, any optionee whose employment or consulting

relationship  with the  Company,  its  Parent and any of its  Subsidiaries,  has

terminated for any reason other than the death or Disability of the optionee may

exercise any option granted to the optionee as an employee or consultant, to the

extent  exercisable  on the date of such  termination,  at any time within three

months after the date of  termination,  but not thereafter and in no event after

the date the option would  otherwise have expired;  provided,  however,  that if

such  relationship  is terminated  either (a) for Cause (as defined in Paragraph

19),  or (b) without the consent of the  Company,  such option  shall  terminate

immediately.

         For the  purposes  of the Plan,  an  employment  relationship  shall be

deemed to exist between an individual  and a corporation  if, at the time of the

determination,  the individual was an employee of such  corporation for purposes

of Section  422(a) of the Code. As a result,  an  individual on military  leave,

sick leave or other bona fide leave of absence  shall  continue to be considered

an  employee  for  purposes  of the Plan  during such leave if the period of the

leave does not exceed 90 days, or, if longer, so long as the individual's  right

to  re-employment  with the  Company,  any of its  Subsidiaries  or a Parent  is

guaranteed  either by statute or by contract.  If the period of leave exceeds 90

days and the individual's right to re-employment is not guaranteed by statute or

by contract,  the employment  relationship shall be deemed to have terminated on

the 91st day of such leave.

         Except  as may  otherwise  be  expressly  provided  in  the  applicable

Contract, an optionee whose directorship with the Company has terminated for any

reason other than the  optionee's  death or Disability  may exercise the options

granted to the optionee as a director  who was not an employee of or  consultant

to the Company or any of its Subsidiaries, to the extent exercisable on the date

of  such  termination,  at any  time  within  three  months  after  the  date of

termination,  but not thereafter and in no event after the date the option would

otherwise have expired;  provided,  however, that if the optionee's directorship

is terminated for Cause or without the consent of the Company, such option shall

terminate immediately.

         Nothing  in the Plan or in any  option  granted  under  the Plan  shall

confer on any person any right to continue in the employ or as a  consultant  of

the  Company,  its Parent or any of its  Subsidiaries,  or as a director  of the

Company,  or interfere  in any way with any right of the Company,  its Parent or

any of its  Subsidiaries  to  terminate  such  relationship  at any time for any

reason  whatsoever  without  liability to the Company,  its Parent or any of its

Subsidiaries.

        9.  Death or  Disability  of an  optionee.  Except as may  otherwise  be

expressly provided in the applicable Contract,  if an optionee dies (a) while he

is  employed  by, or a  consultant  to,  the  Company,  its Parent or any of its

Subsidiaries,  (b) within three months after the  termination  of the optionee's

employment  or  consulting  relationship  with the  Company,  its Parent and its

Subsidiaries  (unless such  termination  was for Cause or without the consent of

the Company) or (c) within one year following the termination of such employment

or consulting  relationship by reason of the optionee's Disability,  the options

granted to the optionee as an employee of, or consultant  to, the Company or any

of its Subsidiaries,  may be exercised, to the

extent  exercisable on the date of the optionee's death, by the optionee's Legal

Representative (as such term is defined in Paragraph 19), at any time within one

year after death,  but not  thereafter and in no event after the date the option

would otherwise have expired.  Except as may otherwise be expressly  provided in

the  applicable   Contract,   any  optionee   whose   employment  or  consulting

relationship with the Company, its Parent and its Subsidiaries has terminated by

reason of the  optionee's  Disability  may exercise such options,  to the extent

exercisable upon the effective date of such termination,  at any time within one

year after  such date,  but not  thereafter  and in no event  after the date the

option would otherwise have expired.

         Except  as may  otherwise  be  expressly  provided  in  the  applicable

Contract,  if an  optionee  dies (a) while the  optionee  is a  director  of the

Company,  (b)  within  three  months  after the  termination  of the  optionee's

directorship  with the Company  (unless such  termination  was for Cause) or (c)

within one year after the  termination of the optionee's  directorship by reason

of the optionee's Disability,  the options granted to the optionee as a director

who  was  not  an  employee  of or  consultant  to  the  Company  or  any of its

Subsidiaries,  may be exercised,  to the extent  exercisable  on the date of the

optionee's death, by the optionee's Legal  Representative at any time within one

year after death,  but not  thereafter and in no event after the date the option

would otherwise have expired.  Except as may otherwise be expressly  provided in

the applicable  Contract,  an optionee whose  directorship  with the Company has

terminated by reason of  Disability,  may exercise  such options,  to the extent

exercisable  on the effective date of such  termination,  at any time within one

year after  such date,  but not  thereafter  and in no event  after the date the

option would otherwise have expired.

        10.  Compliance with Securities  Laws. It is a condition to the exercise

of any option that either (a) a Registration  Statement under the Securities Act

of 1933, as amended (the "Securities Act"), with respect to the shares of Common

Stock to be issued upon such exercise shall be effective and current at the time

of exercise, or (b) there is an exemption from registration under the Securities

Act for the issuance of the shares of Common Stock upon such  exercise.  Nothing

herein shall be construed as requiring the Company to register shares subject to

any  option  under  the  Securities  Act or to keep any  Registration  Statement

effective or current.

         The  Administrators  may  require,  in  their  sole  discretion,  as  a

condition to the grant or exercise of an option,  that the optionee  execute and

deliver to the Company the optionee's  representations and warranties,  in form,

substance and scope satisfactory to the Administrators, which the Administrators

determine  is  necessary  or  convenient  to  facilitate  the  perfection  of an

exemption from the registration  requirements of the Securities Act,  applicable

state securities laws or other legal requirements, including without limitation,

that (a) the shares of Common Stock to be issued upon exercise of the option are

being acquired by the optionee for the  optionee's  own account,  for investment

only and not with a view to the  resale  or  distribution  thereof,  and (b) any

subsequent  resale or  distribution  of shares of Common Stock by such  optionee

will be made only pursuant to (i) a Registration  Statement under the Securities

Act which is  effective  and current  with respect to the shares of Common Stock

being sold, or (ii) a specific  exemption from the registration  requirements of

the Securities Act, but in claiming such exemption,  the optionee,  prior to any

offer of sale or sale of such shares of Common Stock,  shall provide the Company

with a favorable  written  opinion of counsel  satisfactory  to the Company,  in

form,  substance and scope satisfactory to the Company,  as to the applicability

of such exemption to the proposed sale or distribution.

         In addition, if at any time the Administrators shall determine that the

listing or qualification of the shares of Common Stock subject to such option on

any securities exchange, Nasdaq or under any applicable law, or that the consent

or approval of any  governmental  agency or  regulatory  body,  is  necessary or

desirable as a condition to, or in connection with, the granting of an option or

the  issuance  of shares of Common  Stock  thereunder,  such  option  may not be

granted  or  exercised  in  whole or in part,  as the case may be,  unless  such

listing, qualification, consent or approval shall have been effected or obtained

free of any conditions not acceptable to the Administrators.

        11.  Stock  Option  Contracts.  Each  option  shall be  evidenced  by an

appropriate  Contract  which  shall  be duly  executed  by the  Company  and the

optionee.  Such Contract shall contain such terms, provisions and conditions not

inconsistent  herewith as may be determined by the  Administrators in their sole

discretion. The terms of each option and Contract need not be identical.

        12. Adjustments upon Changes in Common Stock.  Notwithstanding any other

provision  of the Plan,  in the event of any  change in the  outstanding  Common

Stock by  reason  of a stock  dividend,  recapitalization,  spin-off,  split-up,

combination  or exchange of shares or the like which  results in a change in the

number or kind of shares of Common Stock which are outstanding immediately prior

to such event,  the aggregate number and kind of shares subject to the Plan, the

aggregate number and kind of shares subject to each  outstanding  option and the

exercise price thereof, and the maximum number of shares subject to options that

may be granted to any  employee in any  calendar  year,  shall be  appropriately

adjusted by the Board of Directors,  whose determination shall be conclusive and

binding on all  parties.  Such  adjustment  may provide for the  elimination  of

fractional  shares that might  otherwise be subject to options  without  payment

therefor. Notwithstanding the foregoing, no adjustment shall be made pursuant to

this Paragraph 12 if such  adjustment (a) would cause the Plan to fail to comply

with  Section  422 of the  Code or  with  Rule  16b-3  of the  Exchange  Act (if

applicable to such option),  or (b) would be considered as the adoption of a new

plan requiring stockholder approval.

         Except  as may  otherwise  be  expressly  provided  in  the  applicable

Contract,  in the event of (i) a  proposed  dissolution  or  liquidation  of the

Company,  or (ii) a proposed sale of all or  substantially  all of the assets or

outstanding  equity of the Company,  or (iii) the merger or consolidation of the

Company with or into another  entity or any other  corporate  reorganization  if

persons  who were not  shareholders  of the  Company  immediately  prior to such

merger, consolidation or other reorganization own immediately after such merger,

consolidation or other  reorganization fifty percent (50%) or more of the voting

power of the  outstanding  securities of each of (A) the continuing or surviving

entity and (B) any direct or indirect  parent  corporation of such continuing or

surviving entity, the Board of Directors of the Company shall, as to outstanding

options,  either (1) make  appropriate  provision for the protection of any such

outstanding  options by the  substitution  on an equitable  basis of appropriate

stock of the Company or of the merged,  consolidated  or  otherwise  reorganized

corporation  which will be issuable  in respect to one share of Common  Stock of

the Company;  provided that the excess of

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the aggregate fair market value of the shares subject to the options immediately

after such  substitution  over the purchase  price  thereof is not more than the

excess of the aggregate  fair market value of the shares subject to such options

immediately  before such  substitution  over the purchase price thereof,  or (2)

upon written notice to an optionee, provide that all unexercised options must be

exercised  within a specified  number of days of the date of such notice or they

will be  terminated.  In any such  case,  the  Board of  Directors  may,  in its

discretion, advance the lapse of any waiting or installment periods and exercise

dates.

        13.  Amendments and Termination of the Plan. The Plan was adopted by the

Board of Directors on October 16, 2000.  No option may be granted under the Plan

after October 15, 2010. The Board of Directors,  without further approval of the

Company's stockholders,  may at any time suspend or terminate the Plan, in whole

or in  part,  or  amend  it from  time to time in such  respects  as it may deem

advisable,  including without  limitation,  in order that ISOs granted hereunder

meet the requirements for "incentive stock options" under the Code, or to comply

with the provisions of Rule 16b-3 or Section 162(m) of the Code or any change in

applicable laws or regulations,  ruling or  interpretation  of any  governmental

agency  or  regulatory  body;  provided,  however,  that no  amendment  shall be

effective, without the requisite prior or subsequent stockholder approval, which

would (a) except as contemplated in Paragraph 12, increase the maximum number of

shares of Common Stock for which options may be granted under the Plan or change

the maximum  number of shares for which  options may be granted to  employees in

any calendar  year,  (b) change the  eligibility  requirements  for  individuals

entitled  to  receive  options  hereunder,  or (c) make  any  change  for  which

applicable  law  or  any   governmental   agency  or  regulatory  body  requires

stockholder approval. No termination,  suspension or amendment of the Plan shall

adversely  affect the rights of an optionee  under any option  granted under the

Plan  without  such  optionee's  consent.  The  power of the  Administrators  to

construe  and  administer  any  option  granted  under  the  Plan  prior  to the

termination or suspension of the Plan shall  continue after such  termination or

during such suspension.

        14.  Non-Transferability.  No option  granted  under  the Plan  shall be

transferable  other than by will or the laws of descent  and  distribution,  and

options  may be  exercised,  during the  lifetime of the  optionee,  only by the

optionee or the optionee's Legal Representatives.  Except to the extent provided

above,  options  may not be  assigned,  transferred,  pledged,  hypothecated  or

disposed of in any way (whether by operation of law or otherwise)  and shall not

be subject to execution,  attachment or similar process,  and any such attempted

assignment,  transfer,  pledge,  hypothecation or disposition  shall be null and

void ab initio and of no force or effect.

        15.  Withholding  Taxes.  The Company,  or its Subsidiary or Parent,  as

applicable,  may withhold (a) cash or (b) with the consent of the Administrators

(in the  Contract  or  otherwise),  shares  of Common  Stock to be  issued  upon

exercise of an option or a combination  of cash and shares,  having an aggregate

fair market  value  (determined  in  accordance  with  Paragraph 5) equal to the

amount which the Administrators determine is necessary to satisfy the obligation

of the Company,  a  Subsidiary  or Parent to withhold  Federal,  state and local

income taxes or other amounts incurred by reason of the grant, vesting, exercise

or  disposition  of an option or the  disposition  of the  underlying  shares of

Common Stock. Alternatively,  the Company may require the optionee to pay to the

Company such amount, in cash, promptly upon demand.

        16. Legends; Payment of Expenses. The Company may endorse such legend or

legends upon the certificates for shares of Common Stock issued upon exercise of

an option under the Plan and may issue such "stop transfer"  instructions to its

transfer  agent  in  respect  of  such  shares  as it  determines,  in its  sole

discretion,  to be necessary or appropriate to (a) prevent a violation of, or to

perfect an exemption from, the registration  requirements of the Securities Act,

applicable state securities laws or other legal requirements,  (b) implement the

provisions  of the Plan or any  agreement  between the Company and the  optionee

with  respect to such  shares of Common  Stock,  or (c)  permit  the  Company to

determine  the  occurrence  of a  "disqualifying  disposition,"  as described in

Section 421(b) of the Code, of the shares of Common Stock  transferred  upon the

exercise of an ISO granted under the Plan.

         The Company  shall pay all issuance  taxes with respect to the issuance

of shares of Common Stock upon the exercise of an option granted under the Plan,

as well as all fees and expenses incurred by the Company in connection with such

issuance.

        17. Use of Proceeds.  The cash proceeds to be received upon the exercise

of an option  under the Plan shall be added to the general  funds of the Company

and used for such corporate purposes as the Board of Directors may determine, in

its sole discretion.

        18.  Substitutions  and  Assumptions  of Options of Certain  Constituent

Corporations.  Anything in this Plan to the contrary notwithstanding,  the Board

of Directors may, without further approval by the  stockholders,  substitute new

options for prior options of a Constituent  Corporation (as such term is defined

in Paragraph 19) or assume the prior options of such Constituent Corporation.

        19. Definitions.

        (a) "Cause",  in connection with the  termination of an optionee,  shall

mean (i) "cause," as such term (or any similar  term,  such as "with  cause") is

defined in any employment, consulting or other applicable agreement for services

between  the  Company  and  such  optionee,  or (ii) in the  absence  of such an

agreement,  "cause"  as such term is  defined in the  Contract  executed  by the

Company and such  optionee  pursuant to Paragraph 11, or (iii) in the absence of

both of the foregoing,  (A) indictment of such optionee for any illegal conduct,

(B) failure of such optionee to adequately  perform any of the optionee's duties

and  responsibilities  in  any  capacity  held  with  the  Company,  any  of its

Subsidiaries  or any Parent (other than any such failure  resulting  solely from

such optionee's physical or mental incapacity), (C) the commission of any act or

failure to act by such  optionee  that  involves  moral  turpitude,  dishonesty,

theft,  destruction  of property,  fraud,  embezzlement  or  unethical  business

conduct, or that is otherwise injurious to the Company,  any of its Subsidiaries

or any Parent or any other affiliate of the Company (or its or their  respective

employees), whether financially or otherwise, (D) any violation by such optionee

of any Company  rule or policy,  or (E) any  violation  by such  optionee of the

requirements  of such  Contract,  any other  contract or  agreement  between the

Company and such optionee or this Plan (as in effect from time to time); in each

case, with respect to subsections (A) through (E), as determined by the Board of

Directors.

        (b) "Constituent  Corporation"  shall mean any corporation which engages

with the Company, its Parent or any Subsidiary in a transaction to which Section

424(a) of the Code applies (or would apply if the option  assumed or substituted

were an ISO), or any Parent or any Subsidiary of such corporation.

        (c) "Disability"  shall mean a permanent and total disability within the

meaning of Section 22(e)(3) of the Code.

        (d) "Legal  Representative"  shall mean the executor,  administrator  or

other  person who at the time is  entitled  by law to  exercise  the rights of a

deceased or  incapacitated  optionee with respect to an option granted under the

Plan.

        (e)  "Parent"  shall mean a "parent  corporation"  within the meaning of

Section 424(e) of the Code.

        (f)  "Subsidiary"  shall  mean a  "subsidiary  corporation"  within  the

meaning of Section 424(f) of the Code.

        20.  Governing Law. The Plan, such options as may be granted  hereunder,

the  Contracts  and all related  matters  shall be governed by, and construed in

accordance  with, the laws of the State of Delaware,  without regard to conflict

or choice of law provisions.

         Neither the Plan nor any Contract  shall be  construed  or  interpreted

with any  presumption  against the Company by reason of the Company  causing the

Plan  or  Contract  to  be  drafted.   Whenever  from  the  context  it  appears

appropriate,  any term stated in either the singular or plural shall include the

singular and plural,  and any term stated in the  masculine,  feminine or neuter

gender shall include the masculine, feminine and neuter.

        21. Partial Invalidity.  The invalidity,  illegality or unenforceability

of any  provision  in the Plan,  any  option or  Contract  shall not  affect the

validity,  legality or enforceability of any other provision, all of which shall

be valid,  legal and  enforceable to the fullest extent  permitted by applicable

law.

        22. Stockholder  Approval.  The Plan shall be subject to approval by (a)

the holders of a majority of the votes present in person or by proxy entitled to

vote  hereon at a duly held  meeting of the  Company's  stockholders  at which a

quorum is present or (b) the Company's  stockholders  acting in accordance  with

the  provisions  of Section  228 of the  Delaware  General  Corporation  Law. No

options  granted  hereunder may be exercised  prior to such approval,  provided,

however, that the date of grant of any option shall be determined as if the Plan

had not been subject to such approval.  Notwithstanding  the  foregoing,  if the

Plan is not approved by a vote of the  stockholders  of the Company on or before

October 15, 2001, the Plan and any options granted hereunder shall terminate.

                                                                       EXHIBIT B

                                                                       ---------

                               ION NETWORKS, INC.

                             2000 STOCK OPTION PLAN

                     2000 U. K. SUB-P1AN/U.K. APPROVED RULES

In pursuance of its powers under the Ion  Networks,  Inc. 2000 Stock Option Plan

(the "Plan"), the Board of Directors, or a duly appointed committee of the Board

of Directors (the "Committee") of Ion Networks, Inc. (the "Company") has adopted

these rules (the "UK Rules") for the purposes of operating  the Plan with regard

to such options  ("Options")  which the UK Rules are  expressed to extend at the

time when the Option is granted.  Unless the  context  requires  otherwise,  all

expressions used in the UK Rules have the same meaning as the Plan. The Plan, as

supplemented by the UK Rules, is referred to hereinafter as the "Sub-Plan".  For

the  avoidance  of doubt,  the terms of the Plan  (insofar as they have not been

disapplied by Rule p of the UK Rules) shall form part of the Sub-Plan.

         (1)      The  shares  over  which  Options  may be  granted  under  the

                  Sub-Plan  form part of the ordinary  share capital (as defined

                  in Section 832 (1) Income and  Corporation  Taxes Act 1988) ("

                  ICTA 1988") of the  Company  and must at all times,  including

                  the time of grant and the time of  exercise,  comply  with the

                  terms  of  the  Plan  and  comply  with  the  requirements  of

                  paragraphs 10 to 14 Schedule 9 ICTA 1988.

         (2)      The companies  participating  in this Sub-Plan are the Company

                  and all companies controlled by the Company within the meaning

                  of Section 840 ICTA 1988 ("Subsidiaries").

         (3)      The shares of Common  Stock to be  acquired on exercise of the

                  Option in accordance with the terms of the Sub-Plan will be:

                  (1)      fully paid up;

                  (2)      not redeemable;

                  (3)      not   subject   to  any   restrictions   other   than

                           restrictions  which  attach to all shares of the same

                           class.  For the  purpose  of this  clause,  the  term

                           "restrictions" includes restrictions which are deemed

                           to  attach  to  the   shares   under  any   contract,

                           agreement, arrangement or condition as referred to in

                           paragraph 13 Schedule 9 ICTA 1988.

         (4)      An Option granted under this Sub-Plan shall not be exercisable

                  for more than ten years after the date of grant.

         (5)      To the  extent any  restrictions  or  contingencies  have been

                  imposed by the  Committee  under the  provisions  contained in

                  Paragraph 3 of the Plan,  these  restrictions or contingencies

                  shall:

                  (1)      be objective and set out in full at the time of grant

                           in the stock option contract

                           referred to at Paragraph 11 of the Plan;

                  (2)      be such that rights to exercise such Option after the

                           fulfillment  or  attainment  of any  restrictions  or

                           contingencies  so specified shall not be dependent on

                           the further discretion of any person; and

                  (3)      not be  capable  of  amendment,  variation  or waiver

                           unless an event  occurs  which  causes the  Committee

                           reasonably to consider that waived, varied or amended

                           restrictions  or  contingencies  would  be  a  fairer

                           measure of performance and would be no more difficult

                           to satisfy.

         (6)      No Option will be granted to an  employee  or  director  under

                  this Sub-Plan, or where an Option has previously been granted,

                  no Option  shall be exercised  by an  optionholder  if at that

                  time he has,  or any time within the  preceding  12 months has

                  had, a material  interest  for the purposes of Schedule 9 ICTA

                  1988 in either the Company being a close  company  (within the

                  meaning  of Chapter I of Part XI of ICTA 1988) or in a company

                  being a close company which has control (within the meaning of

                  Section 840 ICTA 1988) of the Company or in a company  being a

                  close  company  and a member of a  consortium  (as  defined in

                  Section   187(7)ICTA   1988)  which  owns  the   Company.   In

                  determining  whether a  company  is a close  company  for this

                  purpose,  Section  414(l)(a)ICTA  1988 (exclusion of companies

                  not  resident in the United  Kingdom)  and Section 415 of ICTA

                  1988 (exclusion of certain companies with listed shares) shall

                  be disregarded.

         (7)      Notwithstanding  any  provision of the Plan, no Option will be

                  granted to an  employee  or  director  under this  Sub-Plan in

                  relation to which the exercise  price is manifestly  less than

                  the fair market value (as defined in Section  187(2)ICTA 1988)

                  of the  Company's  Common  Stock  on the  date of grant of the

                  Option.  The  exercise  price  shall be  stated at the date of

                  grant  of  the  Option  and  determined  in  accordance   with

                  Paragraph 5 of the Plan,  save that the  exercise  price of an

                  Option  granted under the Sub-Plan  shall be not less than one

                  hundred  percent  (100%) of the fair market value of the stock

                  on the date of grant,  and shall be agreed in advance with the

                  Shares  Valuation  Division of the Inland Revenue or otherwise

                  determined   with  the  agreement  of  the  Shares   Valuation

                  Division.

         (8)      Notwithstanding  Paragraph  7 of the Plan,  settlement  of the

                  exercise  price may not be in the form of previously  acquired

                  shares  of Common  Stock  and  payment  of the  amount  due on

                  exercise may not be made in installments.

         (9)      Any  alteration or amendment to this  Sub-Plan  shall not have

                  effect  unless  approved by the Board of Inland  Revenue.  The

                  Company  undertakes to provide details thereof to the Board of

                  Inland Revenue without delay for this purpose.

         (10)     Notwithstanding   Paragraph  11  of  the  Plan,  any  material

                  alteration  of the  standard  form of stock  option  agreement

                  shall not have effect  unless  approved by the Board of Inland

                  Revenue.

         (11)     No adjustment  as a  consequence  of a change in share capital

                  pursuant  to  Paragraph  12 of the  Plan  shall be made to any

                  Option which has been granted  under the Sub-Plan  unless such

                  adjustment  would  be  permitted  under  the  Plan  and  is  a

                  variation in the share capital of which the scheme

                                      -35-

      

                  shares  form part  under  paragraph  29  Schedule 9 ICTA 1988.

                  Where so permitted, no such adjustment shall take effect until

                  the  approval of the Board of Inland  Revenue  shall have been

                  obtained thereto.  No exchange of options under this paragraph

                  11 will be permitted  unless it complies  with  provisions  of

                  paragraph 15 schedule 9 ICTA 1988.

         (12)     For the  avoidance  of doubt it is stated  that the Company is

                  the grantor as defined in paragraph l(1) Schedule 9 ICTA 1988.

         (13)     Any  Option  granted to an  employee  or  director  under this

                  Sub-Plan  shall be limited to take effect so that  immediately

                  following such grant, the aggregate  market value  (determined

                  at the time  prescribed  by  paragraph 28 Schedule 9 ICTA 1988

                  and  calculated in accordance  with the provisions of the said

                  Schedule 9) of shares of Common  Stock which the  optionholder

                  can  acquire  under  this  Sub-Plan  and any  other  scheme or

                  schemes,  not being a  savings-related  share  option  scheme,

                  approved  under the said  Schedule  9 and  established  by the

                  grantor or by any  associated  company  (as defined in Section

                  416 ICTA 1988) of the grantor (and not  exercised),  shall not

                  exceed  (pound)30,000  or such other sum as may be  prescribed

                  from  time to time  by  paragraph  28  Schedule  9 ICTA  1988,

                  provided   always   that  this  limit  shall  not  exceed  the

                  limitations set out in the Plan.

         (14)     An Option  will only be  granted  under  this  Sub-Plan  to an

                  employee  (other  than one who is a  director)  or a full-time

                  director of the Company or a subsidiary  participating in this

                  Sub-Plan. For this purpose, a full-time director is one who is

                  employed by the  Company  required to work at least 25 hours a

                  week  excluding  meal-times  in the business of the Company or

                  its  Subsidiaries.  For the  avoidance of doubt an Option will

                  not be granted under this Sub-Plan to a consultant or director

                  who  is  not  an  employee  of  the  Company  or  any  of  its

                  Subsidiaries,  and  all  references  in the  Plan  to  Options

                  granted to consultants shall be disregarded.

         (15)     The  Company  shall,  not later  than 30 days after the actual

                  receipt of the written  notice of exercise of an Option  given

                  in accordance  with the provisions of the Plan,  together with

                  the payment of the aggregate  exercise price in respect of the

                  shares of Common Stock to be issued or transferred pursuant to

                  the exercise of an Option,  allot and issue  credited as fully

                  paid or transfer to the Optionee and cause to be registered in

                  his name the number of shares of Common Stock specified in the

                  written notice.

         (16)     The  following  shall not form part of and shall  therefore be

                  disregarded for the purposes of the Sub-Plan:

                  (1)      in  Paragraph  3 of the Plan,  the words  "whether to

                           accelerate  the date of  exercise  of any  option  or

                           installment;  whether  shares of Common  Stock may be

                           issued upon the exercise of an option as partly paid,

                           and, if so, the dates when future installments of the

                           exercise  price  shall  become due and the amounts of

                           such  installments;" the words "the fair market value

                           of a share of Common  Stock;  whether  and under what

                           conditions to restrict the sale or other  disposition

                           of the  shares  of  Common  Stock  acquired  upon the

                           exercise  of an Option  and if so  whether  and under

                           what  circumstances to waive such  restriction;"  and

                           the  words  "with the  consent  of the  optionee,  to

                           cancel or modify an option,  provided  however,  that

                           the modified provision is permitted to be included in

                           an  Option  granted  under  the  Plan on the  date of

                           modification";

                  (2)      in  the  first   paragraph   of   Paragraph   7,  the

                           parenthetical  that  reads,  "or  the  amount  due on

                           exercise   if   the   applicable   Contract   permits

                           installment  payments" and the language from "(b)" to

                           the end of that paragraph; and

                  (3)      all  references  in  the  Plan  to  "Incentive  Stock

                           Options" or "Non-Qualified Stock Options." and

                  (4)      the terms of paragraph 18 of the Plan.Rider 26A

ION NETWORKS, INC.

2006 STOCK INCENTIVE PLAN

1.

Purposes of the Plan.  The purposes of this Stock Incentive Plan are to attract and retain the best available personnel, to provide additional incentives to Employees, Directors and Consultants and to promote the success of the Company’s business.

2.

Definitions.  As used herein, the following definitions shall apply:

(a)

“Administrator” means the Board or any of the Committees appointed to administer the Plan.

(b)

“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

(c)

“Applicable Laws” means the legal requirements relating to the administration of stock incentive plans, if any, under applicable provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein. 

(d)

“Assumed” means that (i) pursuant to a Corporate Transaction defined in Section 2(q)(i), 2(q)(ii) or 2(q)(iii), the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its Parent in connection with the Corporate Transaction or (ii) pursuant to a Corporate Transaction defined in Section (q)(iv) or 2(q)(v), the Award is expressly affirmed by the Company.  

(e)

“Award” means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Performance Unit, Performance Share, or other right or benefit under the Plan.

(f)

“Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto.

(g)

“Board” means the Board of Directors of the Company.

(h)

“Cause” means, with respect to the termination by the Company or a Related Entity of the Grantee’s Continuous Service, that such termination is for “Cause” as such term is expressly defined in a then-effective written agreement between the Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee’s:  (i) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or a Related Entity; (ii) dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person.

(i)

“Change in Control” means a change in ownership or control of the Company effected through either of the following transactions:

(i)

the direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such stockholders accept, or

(ii)

a change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors.

(j)

“Code” means the Internal Revenue Code of 1986, as amended.

(k)

“Committee” means any committee appointed by the Board to administer the Plan.

(l)

“Common Stock” means the common stock of the Company.

(m)

“Company” means ION Networks, Inc., a Delaware corporation.

(n)

“Consultant” means any person (other than an Employee or a Director, solely with respect to rendering services in such person’s capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity. 

(o)

“Continuing Directors” means members of the Board who either (i) have been Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and were elected or nominated for election as Board members by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board.

(p)

“Continuous Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee, Director or Consultant, is not interrupted or terminated.  Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement).  An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave.  For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds ninety (90) days, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the expiration of such ninety (90) day period.

(q)

“Corporate Transaction” means any of the following transactions:  

(i)

a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated;

(ii)

the sale, transfer or other disposition of all or substantially all of the assets of the Company;

(iii)

the complete liquidation or dissolution of the Company; 

(iv)

any reverse merger in which the Company is the surviving entity but in which securities possessing more than forty percent (40%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger; or

(v)

acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction.

(r)

“Covered Employee” means an Employee who is a “covered employee” under Section 162(m)(3) of the Code.

(s)

“Director” means a member of the Board or the board of directors of any Related Entity.

(t)

“Disability” means as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy.  If the Company or the Related Entity to which the Grantee provides service does not have a long-term disability plan in place, “Disability” means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment for a period of not less than ninety (90) consecutive days.  A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion.

(u)

“Dividend Equivalent Right” means a right entitling the Grantee to compensation measured by dividends paid with respect to Common Stock.  

(v)

“Employee” means any person, including an Officer or Director, who is an employee of the Company or any Related Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance.  The payment of a director’s fee by the Company or a Related Entity shall not be sufficient to constitute “employment” by the Company.

(w)

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(x)

“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

(i)

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

(ii)

If the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported, the Fair Market Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

(iii)

In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good faith.

(y)

“Grantee” means an Employee, Director or Consultant who receives an Award under the Plan.

(z)

“Immediate Family”  means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Grantee’s household (other than a tenant or employee), a trust in which these persons (or the Grantee) have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of assets, and any other entity in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interests.  

(aa)

“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code

(bb)

“Non-Qualified Stock Option” means an Option not intended to qualify as an Incentive Stock Option.  In addition, any validly issued Option that is intended to be an Incentive Stock Option, but which does not satisfy the Code’s requirements for Incentive Stock Options, shall be treated as a Non-Qualified Stock Option. 

(cc)

“Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

(dd)

“Option” means an option to purchase Shares pursuant to an Award Agreement granted under the Plan.

(ee)

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

.

(ff)

“Performance-Based Compensation” means compensation qualifying as “performance-based compensation” under Section 162(m) of the Code

(gg)

“Performance Shares” means Shares or an Award denominated in Shares which may be earned in whole or in part upon attainment of performance criteria established by the Administrator.  

(hh)

“Performance Units” means an Award which may be earned in whole or in part upon attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities as established by the Administrator.  

(ii)

“Plan” means this 2006 Stock Incentive Plan.

(jj)

“Related Entity” means any Parent or Subsidiary of the Company and any business, corporation, partnership, limited liability company or other entity in which the Company or a Parent or a Subsidiary of the Company holds a substantial ownership interest, directly or indirectly.

(kk)

Replaced” means that (i) pursuant to a Corporate Transaction defined in Section 2(q)(i), 2(q)(ii) or 2(q)(iii), the Award is replaced with a comparable stock award or a cash incentive program of the successor entity or Parent thereof which preserves the compensation element of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award or (ii) pursuant to a Corporate Transaction defined in Section 2(q)(iv) or 2(q)(v), the Award is replaced with a comparable stock award or a cash incentive program of the Company or Parent thereof which preserves the compensation element of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award.  The determination of Award comparability shall be made by the Administrator and its determination shall be final, binding and conclusive.

(ll)

“Restricted Stock” means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator.  

(mm)

“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

(nn)

“SAR” means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of Common Stock. 

(oo)

“Share” means a share of the Common Stock.

(pp)

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

3.

Stock Subject to the Plan.

(a)

Subject to the provisions of subsection (b) and Section 10 below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive Stock Options) is four million  (4,000,000) Shares; provided, however, that no more than five hundred thousand (500,000) of these Shares may be issued pursuant to Restricted Stock or SARs.  The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock. 

(b)

In addition, any Shares authorized for issuance under any of the Company’s 1994, 1998, and 2000 stock option plans as to which no Awards have yet been granted or which have or are returned to any such Plan shall be deemed available for issuance under this Plan.  To the extent such Shares are available for issuance under this Plan, they shall not be simultaneously available for issuance under any other plan, it being the intention of this provision that there be no duplication of Shares underlying any Award.

(c)

Any Shares covered by an Award (or portion of an Award) which is forfeited or canceled or expires, shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan.  Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at the lower of their original purchase price or their Fair Market Value at the time of repurchase, such Shares shall become available for future grant under the Plan.  

4.

Administration of the Plan.

(a)

Plan Administrator.  

(i)

Administration with Respect to Directors and Officers.  With respect to grants of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3.  Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.  

(ii)

Administration With Respect to Consultants and Other Employees.  With respect to grants of Awards to Employees or Consultants who are neither Directors nor 

Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws.  Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.  The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board determines from time to time.

(iii)

Administration With Respect to Covered Employees.  Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based Compensation.  In the case of such Awards granted to Covered Employees, references to the “Administrator” or to a “Committee” shall be deemed to be references to such Committee or subcommittee.

(iv)

Administration Errors.  In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a), such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable Laws.  

(b)

Powers of the Administrator.  Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion:

(i)

to select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder;

(ii)

to determine whether and to what extent Awards are granted hereunder;

(iii)

to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder;

(iv)

to approve forms of Award Agreements for use under the Plan;

(v)

to determine the terms and conditions of any Award granted hereunder;

(vi)

to amend the terms of any outstanding Award granted under the Plan, provided that any amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent;

(vii)

to construe and interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement, granted pursuant to the Plan;

(viii)

to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions and to afford Grantees favorable treatment under such rules or laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the provisions of the Plan; and

(ix)

to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

5.

Eligibility.  Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants.  Incentive Stock Options may be granted only to Employees of the Company or a Parent or a Subsidiary of the Company.  An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards.  Awards may be granted to such Employees, Directors or Consultants who are residing in foreign jurisdictions as the Administrator may determine from time to time. 

6.

Terms and Conditions of Awards.

(a)

Designation of Award.  Each Award shall be designated in the Award Agreement.  In the case of an Option, the Option shall be designated as either an Incentive Stock Option or a Non-Qualified Stock Option.  However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of Shares subject to Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options.  For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the grant date of the relevant Option.

(b)

Conditions of Award.  Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria.  The performance criteria established by the Administrator may be based on any one of, or combination of, increase in share price, earnings per share, total stockholder return, return on equity, return on assets, return on investment, net operating income, cash flow, revenue, economic value added, personal management objectives, or other measure of performance selected by the Administrator.  Partial achievement of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the Award Agreement.  

(c)

Acquisitions and Other Transactions.  The Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction.  

(d)

Deferral of Award Payment.  The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award (but only to the extent that such deferral programs would not result in an accounting compensation charge unless otherwise determined by the Administrator).  The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, 

Shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program.

(e)

Separate Programs.  The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time.  

(f)

Individual Option and SAR Limit.  The maximum number of Shares with respect to which Options and SARs may be granted to any Grantee in any fiscal year of the Company shall be three hundred thousand (300,000) Shares.    The foregoing limitation shall be adjusted proportionately in connection with any change in the Company’s capitalization pursuant to Section 10, below.  To the extent required by Section 162(m) of the Code or the regulations thereunder, in applying the foregoing limitation with respect to a Grantee, if any Option or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum number of Shares with respect to which Options and SARs may be granted to the Grantee.  For this purpose, the repricing of an Option (or in the case of a SAR, the base amount on which the stock appreciation is calculated is reduced to reflect a reduction in the Fair Market Value of the Common Stock) shall be treated as the cancellation of the existing Option or SAR and the grant of a new Option or SAR.

(g)

Early Exercise.  The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award.  Any unvested Shares received pursuant to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate.  

(h)

Term of Award.  The term of each Award shall be the term stated in the Award Agreement, provided, however, that the term of an Incentive Stock Option shall be no more than ten (10) years from the date of grant thereof.   However, in the case of an Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement.  

(i)

Transferability of Awards.  Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee; provided, however, that the Grantee may designate a beneficiary of the Grantee’s Incentive Stock Option in the event of the Grantee’s death on a beneficiary designation form provided by the Administrator.  Other Awards shall be transferable by will and by the laws of descent and distribution, and during the lifetime of the Grantee, by gift and/or pursuant to a domestic relations order to members of the Grantee’s Immediate Family to the extent and in the manner determined by the Administrator.  

(j)

Time of Granting Awards.  The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to grant such Award, or such other date as is determined by the Administrator.

7.

Award Exercise or Purchase Price, Consideration and Taxes.

(a)

Exercise or Purchase Price.  The exercise or purchase price, if any, for an Award shall be as follows:

(i)

In the case of an Incentive Stock Option: 

(A)

granted to an Employee who, at the time of the grant of such Incentive Stock Option 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 of the Company, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or

(B)

granted to any Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

(ii)

In the case of a Non-Qualified Stock Option or SAR, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

(iii)

In the case of Awards intended to qualify as Performance-Based Compensation, the exercise or purchase price, if any, shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

(iv)

In the case of other Awards, such price as is determined by the Administrator.

(v)

Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(c), above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award.

(b)

Consideration.  Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award 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).  In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following, provided that the portion of the consideration equal to the par value of the Shares must be paid in cash or other legal consideration permitted by the Delaware General Corporation Law: 

(i)

cash;

(ii)

check; 

(iii)

delivery of Grantee’s promissory note with such recourse, interest, security, and redemption provisions as the Administrator determines as appropriate; 

(iv)

surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require (including withholding of Shares otherwise deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised (but only to the extent that such exercise of the Award would not result in an accounting compensation charge with respect to the Shares used to pay the exercise price unless otherwise determined by the Administrator); 

(v)

with respect to Options, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; or 

(vi)

any combination of the foregoing methods of payment. 

(c)

Taxes.  No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any foreign, federal, state, or local income and employment tax withholding obligations, including, without limitation, obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option.  Upon exercise of an Award the Company shall withhold or collect from Grantee an amount sufficient to satisfy such tax obligations. 

8.

Exercise of Award.

(a)

Procedure for Exercise; Rights as a Stockholder.  

(i)

Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the Plan and specified in the Award Agreement.

(ii)

An Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised, including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as provided in Section 7(b)(v).  Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to Shares subject to an Award, notwithstanding the exercise of an Option or other Award.  The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Award.  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 the Award Agreement or Section 10, below.

(b)

Exercise of Award Following Termination of Continuous Service.

(i)

An Award may not be exercised after the termination date of such Award set forth in the Award Agreement and may be exercised following the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement.

(ii)

Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service for a specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first.

(iii)

Any Award designated as an Incentive Stock Option to the extent not exercised within the time permitted by law for the exercise of Incentive Stock Options following the termination of a Grantee’s Continuous Service shall convert automatically to a Non-Qualified Stock Option and thereafter shall be exercisable as such to the extent exercisable by its terms for the period specified in the Award Agreement.

9.

Conditions Upon Issuance of Shares.

(a)

Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

(b)

As a condition to the exercise of an Award, the Company may require the person exercising such 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 any Applicable Laws.

10.

Adjustments Upon Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, the maximum number of Shares with respect to which Options and SARs may be granted to any Grantee in any fiscal year of the Company, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar transaction affecting the Shares, (ii) any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, or (iii) as the Administrator may determine in its discretion, any other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation (including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or any similar transaction; 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 and its determination shall be final, binding and conclusive.  Except as the Administrator determines, 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 hereof shall be made with respect to, the number or price of Shares subject to an Award.  

11.

Corporate Transactions/Changes in Control.  

(a)

Termination of Award to Extent Not Assumed in Corporate Transaction.  Effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate.  However, all such Awards shall not terminate to the extent they are Assumed in connection with the Corporate Transaction.

(b)

Acceleration of Award Upon Corporate Transaction/Change in Control.  Except as provided otherwise in an individual Award Agreement, in the event of any Corporate Transaction or Change in Control, there will not be any acceleration of vesting or exercisability of any Award.  

(c)

Effect of Acceleration on Incentive Stock Options.  The portion of any Incentive Stock Option accelerated under this Section 11 in connection with a Corporate Transaction or Change in Control shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded.  To the extent such dollar limitation is exceeded, the accelerated excess portion of such Option shall be exercisable as a Non-Qualified Stock Option.  

12.

Effective Date and Term of Plan.  The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the stockholders of the Company.  It shall continue in effect for a term of ten (10) years unless sooner terminated.  Subject to Section 17, below, and Applicable Laws, Awards may be granted under the Plan upon its becoming effective.

13.

Amendment, Suspension or Termination of the Plan.  

(a)

The Board may at any time amend, suspend or terminate the Plan.  To the extent necessary to comply with Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required.

(b)

No Award may be granted during any suspension of the Plan or after termination of the Plan.

(c)

No amendment, suspension or termination of the Plan (including termination of the Plan under Section 12, above) shall adversely affect any rights under Awards already granted to a Grantee, unless consented to by the Grantee.

14.

Reservation of Shares.

(a)

The Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

(b)

The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in 

respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

15.

No Effect on Terms of Employment/Consulting Relationship.  The Plan shall not confer upon any Grantee any right with respect to the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related Entity to terminate the Grantee’s Continuous Service at any time, with or without Cause, and with or without notice.  The ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will is in no way affected by its determination that the Grantee’s Continuous Service has been terminated for Cause for purposes of this Plan. 

16.

No Effect on Retirement and Other Benefit Plans.  Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation.  The Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended.

17.

Stockholder Approval.  The Plan shall be subject to approval by (a) the holders of a majority of the votes present in person or by proxy entitled to vote hereon at a duly held meeting of the Company’s stockholders at which a quorum is present or (b) the Company’s stockholders acting in accordance with the provisions of Section 228 of the Delaware general Corporation Law. No options granted hereunder may be exercised prior to such approval, provided, however, that the date of grant of any option shall be determined as if the Plan had not been subject to such approval.  Notwithstanding the foregoing, if the Plan is not approved by a vote of the stockholders of the Company on or before January 22, 2007, the Plan and any options granted hereunder shall terminate.

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