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<p align="center"><font size="2" face="Times New Roman">As filed with the Securities and Exchange Commission on February 14, 2007</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
REGISTRATION NO. 333 &#8209;XXXXXX&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p><b><u><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b></p>

<p align="center"><b><font size="4" face="Times New Roman">UNITED STATES</font></b></p>

<p align="center"><b><font size="4" face="Times New Roman">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">WASHINGTON, D.C. 20549</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="4" face="Times New Roman">FORM S&#8209;8</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">REGISTRATION STATEMENT</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">under the</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">SECURITIES ACT OF 1933</font></b></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="4" face="Times New Roman">JENNIFER CONVERTIBLES, INC.</font></b></p>

<p align="center"><font size="1" face="Times New Roman">(<i>Exact Name of Registrant as Specified in Its Charter)</i></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Delaware&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11-2824646</font></b></p>

<p><font size="1" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (<i>State or Other
Jurisdiction</i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(<i>I.R.S. Employer</i></font></p>

<p><i><font size="1" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of Incorporation or Organization</font></i><font size=
"1">)<i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Identification No.</i>)</font></p>

<p><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="2" face="Times New Roman">419 Crossways Park Drive</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">Woodbury, New York 11797</font></b></p>

<p align="center"><font size="1" face="Times New Roman">(<i>Address, Including Zip Code, of Principal Executive Offices</i>)</font></p>

<p align="center"><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="2" face="Times New Roman">Jennifer Convertibles, Inc. 2006 Equity Incentive Plan</font></b></p>

<p align="center"><i><font size="1" face="Times New Roman">(Full Titles of the Plan)</font></i></p>

<p align="center"><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="2" face="Times New Roman">Harley J. Greenfield, Chief Executive Officer</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">Jennifer Convertibles, Inc.</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">419 Crossways Park Drive</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">Woodbury, New York 11797</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">(516) 496-1900</font></b></p>

<p align="center"><font size="1" face="Times New Roman">(<i>Name, Address and Telephone Number, Including</i></font></p>

<p align="center"><i><font size="1" face="Times New Roman">Area Code, of Agent For Service</font></i><font size="1">)</font></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><i><font size="1" face="Times New Roman">with a copy to:</font></i></p>

<p align="center"><b><font size="2" face="Times New Roman">Kenneth R. Koch, Esq.</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">Mintz Levin Cohn Ferris Glovsky and Popeo P.C.</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">666 Third Avenue</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">New York, New York 10017</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">(212) 935-3000</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="2" face="Times New Roman">CALCULATION OF REGISTRATION FEE</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="825">
<tr height="63">
<td height="63" valign="bottom">
<p align="center"><font size="1" face="Times New Roman">Title of Securities to be Registered</font></p>
</td>
<td height="63" valign="bottom">
<p align="center"><font size="1" face="Times New Roman">Amount to be Registered<sup>(1)</sup></font></p>
</td>
<td height="63" valign="bottom">
<p align="center"><font size="1" face="Times New Roman">Proposed Maximum Offering Price Per Share</font></p>
</td>
<td height="63" valign="bottom">
<p align="center"><font size="1" face="Times New Roman">Proposed Maximum Aggregate Offering Price</font></p>
</td>
<td height="63" valign="bottom">
<p align="center"><font size="1" face="Times New Roman">Amount of Registration</font></p>
</td>
</tr>

<tr height="31">
<td height="31" valign="top">
<p><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="1" face="Times New Roman">Common Stock, par value $0.01 per share</font></p>
</td>
<td height="31" valign="top">
<p align="center"><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="1" face="Times New Roman">600,000<sup>(2)</sup></font></p>
</td>
<td height="31" valign="top">
<p align="center"><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="1" face="Times New Roman">$4.60<sup>(3)</sup></font></p>
</td>
<td height="31" valign="top">
<p align="center"><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="1" face="Times New Roman">$2,760,000<sup>(3)</sup></font></p>
</td>
<td height="31" valign="top">
<p align="center"><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="1" face="Times New Roman">$295.32</font></p>
</td>
</tr>
</table>

<p><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p><sup><font size="1" face="Times New Roman">(1)</font></sup><font size="1">Plus such indeterminate number of shares of common stock as may be issued to prevent dilution resulting from stock dividends, stock splits or similar transactions in accordance with Rule 416
under the Securities Act of 1933, as amended.</font></p>

<p><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p><sup><font size="1" face="Times New Roman">(2)</font></sup><font size="1">Represents the registration of 600,000 shares of our common stock issuable upon exercise of options reserved for grant and issuance of stock awards under the Plan.</font></p>

<p><font size="1" face="Times New Roman"><font size="1" face="Times New Roman">&nbsp;</font></font></p>

<p><sup><font size="1" face="Times New Roman">(3)</font></sup><font size="1">Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(h) and Rule 457(c) under the Securities Act of 1933, as amended, based on the average of the high
and low trading prices of our common stock as quoted on the American Stock Exchange on February 12, 2007.</font></p>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><u><font size="2" face="Times New Roman">EXPLANATORY NOTE</font></u></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><i><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In accordance with the instructional Note to Part I of Form S-8 as promulgated by the Securities and Exchange Commission, the information
specified by Part I of Form S-8 has been omitted from this Registration Statement on Form S-8 for offers of Common Stock pursuant to the Plan.</font></i></p>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="2" face="Times New Roman">PART II</font></b></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</b></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 3.&nbsp; Incorporation of Certain Documents by Reference</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following documents filed by the Registrant with the Commission are incorporated herein by reference:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b> The Registrant&rsquo;s</font> <font size="2">Annual Report on Form 10-K for the fiscal year ended August
26, 2006.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font size="2">The Registrant&rsquo;s</font> <font size="2">Quarterly Reports on Form 10-Q for the quarter
ended</font> <font size="2">November 25, 2006.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font size="2">The Registrant&rsquo;s</font> <font size="2">Current Reports on Form 8-K dated October 18,
2006, November 2, 2006, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 8, 2006 and January 31, 2007.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The description of the Common Stock contained in the Registrant&rsquo;s Registration Statement
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on Form 8-A filed under the Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Act&rdquo;), filed with the Commission on June
9, 2003, including any amendment or report filed &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for the purpose of updating such description.</font></p>

<p><b><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">&nbsp;</font></b></font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All reports and other documents filed by the Registrant after the date hereof pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the
filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be part hereof from the date of filing of
such reports and documents.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 4.&nbsp; Description of Securities</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 5.&nbsp; Interests of Named Experts and Counsel</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font size="2">The validity of the issuance of the shares of Common Stock registered under this Registration Statement has been passed upon for the
Registrant by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.&nbsp; A member of that firm owns an aggregate of approximately 25,000 shares of Common Stock of the Registrant.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 6.&nbsp; Indemnification of Directors and Officers</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incorporated by reference from the Registrant&rsquo;s Registration Statement on Form S-1, Nos. 333-22214 and 33-10800.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 7.&nbsp; Exemption from Registration Claimed</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 8.&nbsp; Exhibits</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4.1)&nbsp;&nbsp;&nbsp;&nbsp; Form of Common Stock Certificate (Filed as Exhibit 5.1 to Registrant&rsquo;s Registration Statement on Form&nbsp;8-A, dated
August 26, 1987, as amended, and incorporated herein by reference).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4.2)&nbsp;&nbsp;&nbsp;&nbsp; Certificate of Incorporation of the Registrant (Filed as Exhibit 3.1 to Registrant&rsquo;s Registration Statement on Form S-1, as
amended, Nos. 333-22214 and 33-10800, and incorporated herein by reference).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4.3)&nbsp;&nbsp;&nbsp;&nbsp; Restated By-Laws of the Registrant (Filed as Exhibit 3.2 to Registrant&rsquo;s Registration Statement on Form S-1, as amended,
Nos. 333-22214 and 33-10800, and incorporated herein by reference).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as to the legality of shares being
registered.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23.1)&nbsp;&nbsp; Consent of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (included in opinion of counsel filed as Exhibit 5).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23.2)&nbsp;&nbsp; Consent of Eisner LLP.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (24)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power of Attorney to file future amendments (set forth on the signature page of this Registration Statement).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (99.1)&nbsp;&nbsp; Jennifer Convertibles, Inc. 2006 Equity Incentive Plan</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Item 9.&nbsp; Undertakings</font></u><font size="2">.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned Registrant hereby undertakes:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To file, during any period in which offers or sales are being made, a post-effective amendment to this
registration statement:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the registration statement.&nbsp; Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (&sect; 230.424(b) of this chapter) if, in the aggregate, the changes
in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration
statement;</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><i><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provided, however</font></i><font size="2">, That:</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the
registration statement is on Form S-8 (&sect; 230.16b of this chapter), and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to
Section 13 or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) that are incorporated by reference in this registration statement; and</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if
the registration statement is on Form S-3 (&sect; 239.13 of this chapter) or Form F-3 (&sect; 239.33 of this chapter) and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) (&sect; 230.424(b) of
this chapter) that is part of the registration statement.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) <i>Provided further, however</i>, that paragraphs (a)(1)(i) and (a)(1)(ii) do not
apply if the registration statement is for an offering of asset-backed securities on Form S-1 (&sect; 239.11 of this chapter) or Form S-3 (&sect; 239.13 of this chapter), and the information required to be included in a post-effective amendment is provided pursuant
to Item 1100(c) of Regulation AB (&sect; 229.1100(c)).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To remove from registration by means of a post-effective amendment any of the securities being registered which
remain unsold at the termination of the offering.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant&rsquo;s annual report
pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference
in this registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to
the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.&nbsp; In the event that a
claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</font></p>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<p align="center"><b><font size="2" face="Times New Roman">SIGNATURES</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><i><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Registrant</font></i><font size="2">.&nbsp; Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Woodbury, New York on February 14, 2007.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>Jennifer Convertibles, Inc.</b></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By&nbsp; <u>/s/ Harley J. Greenfield</u></font></p>

<p><b><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b>
<font size="2">Harley J. Greenfield</font></p>

<p><b><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b>
<font size="2">Chief Executive Officer</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each person whose signature appears below constitutes and appoints Harley J. Greenfield and Rami Abada, and each of them singly, his true and lawful
attorneys-in-fact and agents, with full power of substitution and resubstitution in each of them singly, for him and in his name, place and stead, and in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration
Statement on Form&nbsp;S-8 of Jennifer Convertibles, Inc., and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting to the attorneys-in-fact and agents, and each of them, full
power and authority to do and perform each and every act and thing requisite or necessary to be done in or about the premises, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that the attorneys-in-fact and
agents or any of each of them or their substitute may lawfully do or cause to be done by virtue hereof.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the
dates indicated.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">Signature</font></u><font size=
"2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Title</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>
Date</u></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">/s/ Harley J. Greenfield&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u> <font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer and</font></p>

<p><font size="2" face="Times New Roman">Harley J.
Greenfield&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Chairman of the Board&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; February 14, 2007</font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p><u><font size="2" face="Times New Roman">/s/ Rami Abada&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u> <font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; February 14, 2007</font></p>

<p><font size="2" face="Times New Roman">Rami
Abada&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Director</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">/s/ Joseph Schillero&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u> <b><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b> <font size="2">
Controller&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; February 14, 2007</font></p>

<p><font size="2" face="Times New Roman">Joseph
Schillero&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">/s/ Edward
Bohn&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u> <font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; February 14, 2007</font></p>

<p><font size="2" face="Times New Roman">Edward Bohn</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">/s/ Kevin Coyle&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u> <font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
February 14, 2007</font></p>

<p><font size="2" face="Times New Roman">Kevin Coyle</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><u><font size="2" face="Times New Roman">/s/ Mark Berman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u> <font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Director&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; February 14, 2007</font></p>

<p><font size="2" face="Times New Roman">Mark Berman</font></p>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<p><b><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b>
<b><font size="2">Jennifer Convertibles, Inc.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b>INDEX TO EXHIBITS FILED WITH</b></font></p>

<p><b><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FORM
S&#8209;8 REGISTRATION STATEMENT</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Exhibit</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><u><font size="2" face="Times New Roman">Number</font></u></p>
</td>
<td valign="top">
<p><u><font size="2" face="Times New Roman">Description</font></u></p>
</td>
<td valign="top">
<p><u><font size="2" face="Times New Roman"><u><font size="2" face="Times New Roman">&nbsp;</font></u></font></u></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(4.1)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Form of Common Stock Certificate (1) (Filed as Exhibit 5.1 to Registrant&rsquo;s Registration Statement on Form&nbsp;8-A, dated August 26, 1987, as amended, and incorporated herein by reference).</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(4.2)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Certificate of Incorporation of the Registrant (Filed as Exhibit 3.1 to Registrant&rsquo;s Registration Statement on Form S-1, as amended, Nos. 333-22214 and 33-10800, and incorporated herein by reference).</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(4.3)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Restated By-Laws of the Registrant (Filed as Exhibit 3.2 to Registrant&rsquo;s Registration Statement on Form S-1, as amended, Nos. 333-22214 and 33-10800, and incorporated herein by reference).</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">&nbsp;</font></b></font></b></p>
</td>
<td valign="top">
<p><b><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">&nbsp;</font></b></font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(5)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as to the legality of shares being registered, filed herewith.</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(23.1)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Consent of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (included in opinion of counsel filed as Exhibit 5).</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(23.2)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Consent of Eisner LLP, filed herewith.</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(24)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Power of Attorney to file future amendments (set forth on the signature page of this Registration Statement.)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">(99.1)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Jennifer Convertibles, Inc. 2006 Equity Incentive Plan</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</div>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<div>
<p align="center"><b><font size="2" face="Times New Roman">EXHIBIT 5</font></b></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">February 14, 2007</font></p>
</td>
</tr>
</table>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">Jennifer Convertibles, Inc.</font></p>

<p><font size="2" color="black" face="Times New Roman">419 Crossways Park Drive</font></p>

<p><font size="2" color="black" face="Times New Roman">Woodbury, New York 11797</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">Re: Registration Statement on Form S-8</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">Ladies and Gentlemen:</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">We have acted as counsel to Jennifer Convertibles, Inc, a Delaware corporation (the &ldquo;Company&rdquo;), in connection with the preparation of its registration statement on Form S-8 under the Securities Act of
1933 (the &ldquo;Registration Statement&rdquo;), to which this opinion is to be filed as an exhibit.&nbsp; The Registration Statement relates to the issuance of up to an aggregate of 600,000 shares of the Company's common stock, par value $0.01 per share (the
&ldquo;Option Shares&rdquo;), pursuant to the Company&rsquo;s 2006 Equity Incentive Plan (the &ldquo;Plan&rdquo;).</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">We have examined such records and documents, including the Plan, and made such examinations of law as we have deemed relevant in connection with this opinion.&nbsp; This opinion relates only to the laws of the
State of New York, the corporate laws of the State of Delaware and the federal laws of the United States of America in force on the date hereof.</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">Based upon the foregoing, and subject to the qualifications stated herein, we are of the opinion that, when issued upon the exercise of and in accordance with the terms of stock options duly and validly granted
against payment therefor, the Option Shares, which are then originally issued by the Company, will be validly issued, fully paid and nonassessable.</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.&nbsp; In so doing, we do not admit that we are in the category of persons whose consent is required under Section 7 of
the Securities Act of 1933 or the rules and regulations of the Securities and Exchange Commission promulgated thereunder.</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">Sincerely,</font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman"><font size="2" color="black" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" color="black" face="Times New Roman">/s/&nbsp; Mintz Levin Cohn Ferris</font></p>

<p><font size="2" face="Times New Roman">Glovsky and Popeo, P.C.</font></p>
</div>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<div>
<p align="center"><b><font size="2" face="Times New Roman">EXHIBIT 23.2</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></b></p>

<p><b><font size="2" face="Arial"><b><font size="2" face="Arial">&nbsp;</font></b></font></b></p>

<p><b><font size="2" face="Arial"><b><font size="2" face="Arial">&nbsp;</font></b></font></b></p>

<pre>
<font size="2" face="Times New
Roman">We consent to the incorporation by reference in the Registration Statement (Form S-8) pertaining to the 2006 Equity Incentive Plan of Jennifer Convertibles, Inc. of our report dated November 3, 2006, except for Note 15, as to which the date is November 17, 2006, with respect to the consolidated financial statements and schedule of Jennifer Convertibles, Inc. included in its Annual Report (Form 10-K) for the year ended August 26, 2006, filed with the Securities and Exchange Commission.</font>
</pre>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">Eisner LLP</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">New York, New York</font></p>

<p><font size="2" face="Times New Roman">February&nbsp;14, 2007</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>
</div>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<div>
<p align="center"><b><font size="2" face="Times New Roman">EXHIBIT 99.1</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">&nbsp;</font></b></font></b></p>

<p align="center"><b><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">&nbsp;</font></b></font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">JENNIFER CONVERTIBLES, INC.</font></b></p>

<p align="center"><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p align="center"><b><font size="2" face="Times New Roman">2006 EQUITY INCENTIVE PLAN</font></b></p>

<p><b><font size="2" face="Times New Roman"><b><font size="2" face="Times New Roman">&nbsp;</font></b></font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>DEFINITIONS</u></font></b>.</p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Jennifer Convertibles, Inc. 2006
Equity Incentive Plan, have the following meanings:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Administrator</u> means the Board of Directors,
unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Affiliate</u> means a corporation which, for
purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Agreement</u> means an agreement between the
Company and a Participant delivered pursuant to the Plan, in such form as the Administrator shall approve.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Board of Directors</u> means the Board of
Directors of the Company.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Code</u> means the United States Internal
Revenue Code of 1986, as amended.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Committee</u> means the committee of the Board
of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u> means shares of the
Company&rsquo;s common stock, $0.01 par value per share.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Company</u> means Jennifer Convertibles, Inc., a
Delaware corporation.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Disability</u> or <u>Disabled</u> means
permanent and total disability as defined in Section 22(e)(3) of the Code.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Employee</u> means any employee of the Company or of
an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fair Market Value</u> of a Share of Common Stock
means:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Common Stock is listed on a national securities exchange or traded in the over&#8209;the&#8209;counter market and sales prices are regularly reported for the Common Stock, the closing or last price of
the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date;</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Common Stock is not traded on a national securities exchange but is traded on the over&#8209;the&#8209;counter market, if sales prices are not regularly reported for the Common Stock for the trading day
referred to in clause&nbsp;(1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the trading day on which Common Stock
was traded on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; and</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Common Stock is neither listed on a national securities exchange nor traded in the over&#8209;the&#8209;counter market, such value as the Administrator, in good faith, shall determine.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ISO</u> means an option meant to qualify as an
incentive stock option under Section&nbsp;422 of the Code.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Non&#8209;Qualified Option</u> means an option
which is not intended to qualify as an ISO.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option</u> means an ISO or Non&#8209;Qualified
Option granted under the Plan.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Participant</u> means an Employee, director or
consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan.<sup></sup>As used herein, &ldquo;Participant&rdquo; shall include &ldquo;Participant&rsquo;s Survivors&rdquo; where the context requires.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Plan</u> means this Jennifer Convertibles, Inc.
2006 Equity Incentive Plan.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Shares</u> means shares of the Common Stock as
to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph&nbsp;3 of the Plan.&nbsp; The Shares issued under the Plan may be
authorized and unissued shares or shares held by the Company in its treasury, or both.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Stock-Based Award</u> means a grant by the
Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Stock Grant</u> means a grant by the Company of
Shares under the Plan.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Stock Right</u> means a right to Shares or the
value of Shares of the Company granted pursuant to the Plan -- an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Survivor</u> means a deceased
Participant&rsquo;s legal representatives and/or any person or persons who acquired the Participant&rsquo;s rights to a Stock Right by will or by the laws of descent and distribution.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PURPOSES OF THE PLAN</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan is intended to encourage ownership of Shares by Employees and directors of and certain consultants to the Company in order to attract and retain such
people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate.&nbsp; The Plan provides for the granting of ISOs, Non&#8209;Qualified Options,
Stock Grants and Stock-Based Awards.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SHARES SUBJECT TO THE PLAN</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The number of Shares which may be issued from time to time pursuant to this Plan
shall be 600,000, plus (ii) any shares of Common Stock that are represented by awards granted under the Company&rsquo;s 2003 Stock Option Plan that are forfeited, expire or are cancelled without delivery of shares of Common Stock or which result in the forfeiture of
shares of Common Stock back to the Company on or after the date of approval of this Plan by the stockholders, or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend,
combination, recapitalization or similar transaction in accordance with Paragraph 24 of the Plan provided, however, that no more than 316,667 Shares shall be added to the Plan pursuant to subsection (ii).</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If an Option ceases to be &ldquo;outstanding&rdquo;, in whole or in part (other
than by exercise), or if the Company shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any
Shares not being issued, the unissued Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan.&nbsp; Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender of
Shares or if the Company&rsquo;s tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were
subject to the Stock Right or portion thereof, and not the net number of Shares actually issued.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ADMINISTRATION OF THE PLAN</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the
Committee, in which case the Committee shall be the Administrator.&nbsp; Subject to the provisions of the Plan, the Administrator is authorized to:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interpret the provisions of the Plan and all Stock Rights and to make
all rules and determinations which it deems necessary or advisable for the administration of the Plan;</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Determine which Employees, directors and consultants shall be granted
Stock Rights;</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Determine the number of Shares for which a Stock Right or Stock Rights
shall be granted, provided, however, that in no event shall Stock Rights with respect to more than 200,000 Shares be granted to any Participant in any fiscal year;</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Specify the terms and conditions upon which a Stock Right or Stock
Rights may be granted; and</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adopt any sub-plans applicable to residents of any specified
jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company or to Plan Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional
restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock Right;</font></p>

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<p><font size="2" face="Times New Roman">provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of preserving the tax status under Section 422 of the Code of those Options which are
designated as ISOs.&nbsp; Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the
Administrator is the Committee.&nbsp; In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities
and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ELIGIBILITY FOR PARTICIPATION</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be an
Employee, director or consultant of the Company or of an Affiliate at the time a Stock Right is granted.&nbsp; Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, director or consultant of the
Company or of an Affiliate; provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right.&nbsp; ISOs
may be granted only to Employees.&nbsp; Non&#8209;Qualified Options, Stock Grants and Stock-Based Awards may be granted to any Employee, director or consultant of the Company or an Affiliate.&nbsp; The granting of any Stock Right to any individual shall neither
entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock Rights.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TERMS AND CONDITIONS OF OPTIONS</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant.&nbsp; The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate
including, without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto.&nbsp; The Option Agreements shall be subject to at least the following terms and conditions:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Non&#8209;Qualified Options</u>:&nbsp; Each Option intended to be a
Non&#8209;Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non&#8209;Qualified Option:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Price</u>: Each Option Agreement shall state the option price (per share) of the Shares covered by each Option, which option price shall be determined by the Administrator but shall
not be less than the Fair Market Value per share of Common Stock.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Number of Shares</u>: Each Option Agreement shall state the number of Shares to which it pertains.</font></p>

<p><font size="2" face="Times New Roman">&nbsp;</font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Periods</u>:&nbsp; Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights
accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals or events.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Conditions</u>:&nbsp; Exercise of any Option may be conditioned upon the Participant&rsquo;s execution of a Share purchase agreement in form satisfactory to the Administrator providing for
certain protections for the Company and its other shareholders, including requirements that:</font></p>

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<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Participant&rsquo;s or the Participant&rsquo;s Survivors&rsquo; right to sell or transfer the Shares may be restricted; and</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Participant or the Participant&rsquo;s Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any applicable
restrictions.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ISOs</u>:&nbsp; Each Option intended to be an ISO shall be issued
only to an Employee and be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the
Internal Revenue Service:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Minimum standards</u>:&nbsp; The ISO shall meet the minimum standards required of Non&#8209;Qualified Options, as described in Paragraph 6(a) above.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Option Price</u>:&nbsp; Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section&nbsp;424(d) of the Code:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10% <u>or less</u> of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each ISO shall not be less than 100% of
the Fair Market Value per share of the Shares on the date of the grant of the Option; or</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each ISO shall not be less than 110% of the
Fair Market Value on the date of grant.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Term of Option</u>:&nbsp; For Participants who own:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10% <u>or less</u> of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier
time as the Option Agreement may provide; or</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than five years from the date of the grant or at such earlier
time as the Option Agreement may provide.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Limitation on Yearly Exercise</u>:&nbsp; The Option Agreements shall restrict the amount of ISOs which may become exercisable in any calendar year (under this or any other ISO plan of the Company or
an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed $100,000.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TERMS AND CONDITIONS OF STOCK GRANTS</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each offer of a Stock Grant to a Participant shall state the date prior to which the Stock Grant must be accepted by the Participant, and the principal terms
of each Stock Grant shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.&nbsp; The Agreement shall be in a form approved by the Administrator and shall contain terms and
conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Agreement shall state the purchase price (per share), if any, of the Shares
covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by Delaware General Corporation Law<b></b>on the date of the grant of the Stock Grant;</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Agreement shall state the number of Shares to which the Stock Grant pertains;
and</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Agreement shall include the terms of any right of the Company to restrict or
reacquire the Shares subject to the Stock Grant, including the time and events upon which such rights shall accrue and the purchase price therefor, if any.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS</u>.&nbsp;</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the
Administrator may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units.&nbsp; The principal terms
of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.&nbsp; The Agreement shall be in a form approved by the Administrator and shall contain terms
and conditions which the Administrator determines to be appropriate and in the best interest of the Company.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EXERCISE OF OPTIONS AND ISSUE OF SHARES</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee, together with
provision for payment of the full purchase price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement.&nbsp; Such notice shall be signed by the
person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement.&nbsp; Payment of the purchase price for the Shares as to which such
Option is being exercised shall be made (a)&nbsp;in United States dollars in cash or by check, or (b)&nbsp;at the discretion of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash
exercise price of the Option and held for at least six months, or (c)&nbsp;at the discretion of the Administrator, by having the Company retain from the shares otherwise issuable upon exercise of the Option, a number of shares having a Fair Market Value equal as of
the date of exercise to the exercise price of the Option, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator, or (e)&nbsp;at the discretion of
the Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such
payment on exercise of an ISO as is permitted by Section 422 of the Code.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the
Participant&rsquo;s Survivors, as the case may be).&nbsp; In determining what constitutes &ldquo;reasonably promptly,&rdquo; it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or
regulation (including, without limitation, state securities or &ldquo;blue sky&rdquo; laws) which requires the Company to take any action with respect to the Shares prior to their issuance.&nbsp; The Shares shall, upon delivery, be fully paid, non-assessable
Shares.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator shall have the right to accelerate the date of exercise of any installment of any Option; provided that the Administrator
shall not accelerate the exercise date of any installment of any Option granted to an Employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 27) without the prior approval of the Employee if such acceleration would violate
the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b> The Administrator may, in its discretion, amend any term or condition of an outstanding Option provided (i) such term or
condition as amended is permitted by the Plan, (ii) any such amendment shall be made only with the consent of the Participant to whom the Option was granted, or in the event of the death of the Participant, the Participant&rsquo;s Survivors, if the amendment is
adverse to the Participant, and (iii) any such amendment of any Option shall be made only after the Administrator determines whether such amendment would constitute a &ldquo;modification&rdquo; of any Option which is an ISO (as that term is defined in Section 424(h)
of the Code) or would cause any adverse tax consequences for the holder of such Option including, but not limited to, pursuant to Section 409A of the Code.</p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ACCEPTANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A Stock Grant or Stock-Based Award (or any part or installment thereof) shall be accepted by executing the applicable Agreement and
delivering it to the Company or its designee, together with provision for payment of the full purchase price, if any, in accordance with this Paragraph for the Shares as to which such Stock Grant or Stock-Based Award is being accepted, and upon compliance with any
other conditions set forth in the applicable Agreement.&nbsp; Payment of the purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being accepted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of
the Administrator, through delivery of shares of Common Stock held for at least six months and having a Fair Market Value equal as of the date of acceptance of the Stock Grant or Stock Based-Award to the purchase price of the Stock Grant or Stock-Based Award, or (c)
at the discretion of the Administrator, by any combination of (a) and (b) above; or (d) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall then, if required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or
Stock-Based Award was accepted to the Participant (or to the Participant&rsquo;s Survivors, as the case may be), subject to any escrow provision set forth in the applicable Agreement.&nbsp; In determining what constitutes &ldquo;reasonably promptly,&rdquo; it is
expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or &ldquo;blue sky&rdquo; laws) which requires the Company to take any
action with respect to the Shares prior to their issuance.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b> The Administrator may, in its discretion, amend any term or condition of an outstanding Stock Grant, Stock-Based Award or
applicable Agreement provided (i) such term or condition as amended is permitted by the Plan, and (ii) any such amendment shall be made only with the consent of the Participant to whom the Stock Grant or Stock-Based Award was made, if the amendment is adverse to the
Participant.</p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>RIGHTS AS A SHAREHOLDER</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Participant to whom a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock
Right, except after due exercise of the Option or acceptance of the Stock Grant or as set forth in any Agreement, and tender of the full purchase price, if any, for the Shares being purchased pursuant to such exercise or acceptance and registration of the Shares in
the Company&rsquo;s share register in the name of the Participant.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of
descent and distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement.&nbsp; Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above shall no longer qualify as an ISO.&nbsp;
The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph.&nbsp; Except as provided above, a
Stock Right shall only be exercisable or may only be accepted, during the Participant&rsquo;s lifetime, by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar process.&nbsp; Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or
the levy of any attachment or similar process upon a Stock Right, shall be null and void.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN &ldquo;FOR CAUSE&rdquo; OR DEATH OR DISABILITY</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Option Agreement, in the event of a termination of service (whether as an employee,
director or consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A Participant who ceases to be an employee, director or consultant of
the Company or of an Affiliate (for any reason other than termination &ldquo;for cause&rdquo;, Disability, or death for which events there are special rules in Paragraphs 14, 15, and 16, respectively), may exercise any Option granted to him or her to the extent that
the Option is exercisable on the date of such termination of service, but only within such term as the Administrator has designated in a Participant&rsquo;s Option Agreement.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as provided in Subparagraph (c) below, or Paragraph 15 or 16, in
no event may an Option intended to be an ISO, be exercised later than three months after the Participant&rsquo;s termination of employment.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provisions of this Paragraph, and not the provisions of Paragraph 15
or 16, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant&rsquo;s Disability or death within three months after the termination of
employment, director status or consultancy, the Participant or the Participant&rsquo;s Survivors may exercise the Option within one year after the date of the Participant&rsquo;s termination of service, but in no event after the date of expiration of the term of the
Option.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding anything herein to the contrary, if subsequent to a
Participant&rsquo;s termination of employment, termination of director status or termination of consultancy, but prior to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant&rsquo;s termination, the
Participant engaged in conduct which would constitute &ldquo;cause&rdquo;, then such Participant shall forthwith cease to have any right to exercise any Option.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A Participant to whom an Option has been granted under the Plan who is
absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of
such absence alone, to have terminated such Participant&rsquo;s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as required by law or as set forth in a Participant&rsquo;s
Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant&rsquo;s status within or among the Company and any Affiliates, so long as the Participant continues to be an employee, director or consultant of the Company or any
Affiliate.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON OPTIONS OF TERMINATION OF SERVICE &ldquo;FOR CAUSE&rdquo;</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Option Agreement, the following rules apply if the Participant&rsquo;s service (whether
as an employee, director or consultant) with the Company or an Affiliate is terminated &ldquo;for cause&rdquo; prior to the time that all his or her outstanding Options have been exercised:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All outstanding and unexercised Options as of the time the Participant
is notified his or her service is terminated &ldquo;for cause&rdquo; will immediately be forfeited.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Plan, &ldquo;cause&rdquo; shall include (and is not
limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or non&#8209;feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting,
advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or any Affiliate.&nbsp; The determination of the Administrator as to the existence of
&ldquo;cause&rdquo; will be conclusive on the Participant and the Company.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ldquo;Cause&rdquo; is not limited to events which have occurred prior
to a Participant&rsquo;s termination of service, nor is it necessary that the Administrator&rsquo;s finding of &ldquo;cause&rdquo; occur prior to termination.&nbsp; If the Administrator determines, subsequent to a Participant&rsquo;s termination of service but prior
to the exercise of an Option, that either prior or subsequent to the Participant&rsquo;s termination the Participant engaged in conduct which would constitute &ldquo;cause&rdquo;, then the right to exercise any Option is forfeited.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any provision in an agreement between the Participant and the Company or
an Affiliate, which contains a conflicting definition of &ldquo;cause&rdquo; for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Option Agreement:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A Participant who ceases to be an employee, director or consultant of the
Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent that the Option has become exercisable but has not been exercised on the date of Disability; and</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of Disability of any additional vesting rights that would have accrued on the next vesting
date had the Participant not become Disabled.&nbsp; The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A Disabled Participant may exercise such rights only within the period
ending one year after the date of the Participant&rsquo;s Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not become Disabled and had continued to be
an employee, director or consultant or, if earlier, within the originally prescribed term of the Option.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator shall make the determination both of whether
Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).&nbsp; If requested, the
Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Option Agreement:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of the death of a Participant while the Participant is an
employee, director or consultant of the Company or of an Affiliate, such Option may be exercised by the Participant&rsquo;s Survivors:</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent that the Option has become exercisable but has not been exercised on the date of death; and</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on the next vesting date
had the Participant not died.&nbsp; The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant&rsquo;s date of death.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Participant&rsquo;s Survivors wish to exercise the Option, they
must take all necessary steps to exercise the Option within one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died
and had continued to be an employee, director or consultant or, if earlier, within the originally prescribed term of the Option.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of a termination of service (whether as an employee, director or consultant) with the Company or an Affiliate for any reason
before the Participant has accepted a Stock Grant, such offer shall terminate.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Paragraph 17 and Paragraph 18 below, a Participant to whom a Stock Grant has been offered and accepted under the Plan
who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence,
be deemed, by virtue of such absence alone, to have terminated such Participant&rsquo;s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition, for purposes of this Paragraph 17 and Paragraph 18 below, any change of employment or other service within or among the Company
and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an employee, director or consultant of the Company or any Affiliate.</font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN &ldquo;FOR CAUSE&rdquo; OR DEATH OR DISABILITY</u>.</font></b></p>

<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Stock Grant Agreement, in the event of a termination of service (whether as an
employee, director or consultant), other than termination &ldquo;for cause,&rdquo; Disability, or death for which events there are special rules in Paragraphs 19, 20, and 21, respectively, before all forfeiture provisions or Company rights of repurchase shall have
lapsed, then the Company shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant as to which the Company&rsquo;s forfeiture or repurchase rights have not lapsed.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE &ldquo;FOR CAUSE&rdquo;</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Stock Grant Agreement, the following rules apply if the Participant&rsquo;s service
(whether as an employee, director or consultant) with the Company or an Affiliate is terminated &ldquo;for cause&rdquo;:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Shares subject to any Stock Grant that remain subject to forfeiture
provisions or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Plan, &ldquo;cause&rdquo; shall include (and is not
limited to) dishonesty with respect to the employer, insubordination, substantial malfeasance or non&#8209;feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or any Affiliate.&nbsp; The determination of the Administrator as to the existence of &ldquo;cause&rdquo;
will be conclusive on the Participant and the Company.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ldquo;Cause&rdquo; is not limited to events which have occurred prior
to a Participant&rsquo;s termination of service, nor is it necessary that the Administrator&rsquo;s finding of &ldquo;cause&rdquo; occur prior to termination.&nbsp; If the Administrator determines, subsequent to a Participant&rsquo;s termination of service, that
either prior or subsequent to the Participant&rsquo;s termination the Participant engaged in conduct which would constitute &ldquo;cause,&rdquo; then the Company&rsquo;s right to repurchase all of such Participant&rsquo;s Shares shall apply.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any provision in an agreement between the Participant and the Company or
an Affiliate, which contains a conflicting definition of &ldquo;cause&rdquo; for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant.</font></p>

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<p><b><font size="2" face="Times New Roman">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Stock Grant Agreement, the following rules apply if a Participant ceases to be an
employee, director or consultant of the Company or of an Affiliate by reason of Disability:&nbsp; to the extent the forfeiture provisions or the Company&rsquo;s rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided,
however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant through the date of Disability as would have lapsed
had the Participant not become Disabled.&nbsp; The proration shall be based upon the number of days accrued prior to the date of Disability.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for
such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).&nbsp; If requested, the Participant shall be examined by a physician selected or approved by the
Administrator, the cost of which examination shall be paid for by the Company.</font></p>

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<p><b><font size="2" face="Times New Roman">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EFFECT ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided in a Participant&rsquo;s Stock Grant Agreement, the following rules apply in the event of the death of a
Participant while the Participant is an employee, director or consultant of the Company or of an Affiliate:&nbsp; to the extent the forfeiture provisions or the Company&rsquo;s rights of repurchase have not lapsed on the date of death, they shall be exercisable;
provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant through the date of death as would have
lapsed had the Participant not died.&nbsp; The proration shall be based upon the number of days accrued prior to the Participant&rsquo;s death.</font></p>

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<p><b><font size="2" face="Times New Roman">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>PURCHASE FOR INVESTMENT</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless the offering and sale of the Shares to be issued upon the particular exercise or acceptance of a Stock Right shall have been
effectively registered under the Securities Act of 1933, as now in force or hereafter amended (the &ldquo;1933 Act&rdquo;), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been
fulfilled:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The person(s) who exercise(s) or accept(s) such Stock Right shall
warrant to the Company, prior to the receipt of such Shares, that such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event
the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant:</font></p>

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<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &ldquo;The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the
Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities
laws.&rdquo;</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the discretion of the Administrator, the Company shall have received
an opinion of its counsel that the Shares may be issued upon such particular exercise or acceptance in compliance with the 1933 Act without registration thereunder.</font></p>

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<p><b><font size="2" face="Times New Roman">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>DISSOLUTION OR LIQUIDATION OF THE COMPANY</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock
Grants and Stock-Based Awards which have not been accepted will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant&rsquo;s Survivors have not otherwise terminated and expired, the Participant or the
Participant&rsquo;s Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to such
dissolution or liquidation.&nbsp; Upon the dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable Agreement.</font></p>

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<p><b><font size="2" face="Times New Roman">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ADJUSTMENTS</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the occurrence of any of the following events, a Participant&rsquo;s rights with respect to any Stock Right granted to him or her
hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant&rsquo;s Agreement:</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Stock Dividends and Stock Splits</u>.&nbsp; If (i)&nbsp;the shares of
Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii)&nbsp;additional shares or new or different shares or other
securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise of an Option or acceptance of a Stock Grant shall be appropriately increased or
decreased proportionately, and appropriate adjustments shall be made including, in the purchase price per share, to reflect such events.&nbsp; The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the
occurrence of such events.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Corporate Transactions</u>.&nbsp; If the Company is to be
consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Company&rsquo;s assets other than a transaction to merely change the state of incorporation (a &ldquo;Corporate Transaction&rdquo;), the Administrator or the board of
directors of any entity assuming the obligations of the Company hereunder (the &ldquo;Successor Board&rdquo;), shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the
Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the
Participants, provide that all Options must be exercised (all Options being made fully vested and immediately exercisable prior to their termination for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which
period the Options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Options (all Options being made fully vested and immediately exercisable for purposes of this
Subparagraph) over the exercise price thereof.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall either (i) make appropriate provisions for the
continuation of such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the
Corporate Transaction or securities of any successor or acquiring entity; or (ii) terminate all Stock Grants in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Stock Grants over the purchase price thereof, if
any.&nbsp; In addition, in the event of a Corporate Transaction, the Administrator may waive any or all Company forfeiture or repurchase rights with respect to outstanding Stock Grants.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Recapitalization or Reorganization</u>.&nbsp; In the event of a
recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or
accepting a Stock Grant after the recapitalization or reorganization shall be entitled to receive for the purchase price paid upon such exercise or acceptance of the number of replacement securities which would have been received if such Option had been exercised or
Stock Grant accepted prior to such recapitalization or reorganization.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Adjustments to Stock-Based Awards</u>.&nbsp; Upon the happening of
any of the events described in Subparagraphs a, b or c above, any outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs.&nbsp; The Administrator or the Successor Board shall determine the specific
adjustments to be made under this Paragraph 24, including, but not limited to the effect if any, of a Change of Control and, subject to Paragraph 4, its determination shall be conclusive.</font></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Modification of ISOs</u>.&nbsp; Notwithstanding the foregoing, any
adjustments made pursuant to Subparagraph a, b or c above with respect to ISOs shall be made only after the Administrator determines whether such adjustments would constitute a &ldquo;modification&rdquo; of such ISOs (as that term is defined in Section&nbsp;424(h) of
the Code) or would cause any adverse tax consequences for the holders of such ISOs.&nbsp; If the Administrator determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments, unless
the holder of an ISO specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such &ldquo;modification&rdquo; on his or her income tax treatment with respect to the ISO.&nbsp;
This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6b(iv).</font></p>

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<p><b><font size="2" face="Times New Roman">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>ISSUANCES OF SECURITIES</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock Rights.&nbsp; Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in
property (including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>FRACTIONAL SHARES</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of
such fractional shares equal to the Fair Market Value thereof.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CONVERSION OF ISOs INTO NON&#8209;QUALIFIED OPTIONS; TERMINATION OF ISOs</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such
Participant&rsquo;s ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non&#8209;Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an employee of the Company or an
Affiliate at the time of such conversion.&nbsp; At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non&#8209;Qualified Options as the Administrator in its discretion may
determine, provided that such conditions shall not be inconsistent with this Plan.&nbsp; Nothing in the Plan shall be deemed to give any Participant the right to have such Participant&rsquo;s ISOs converted into Non&#8209;Qualified Options, and no such conversion
shall occur until and unless the Administrator takes appropriate action.&nbsp; The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>WITHHOLDING</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (&ldquo;F.I.C.A.&rdquo;) withholdings or
other amounts are required by applicable law or governmental regulation to be withheld from the Participant&rsquo;s salary, wages or other remuneration in connection with the exercise or acceptance of a Stock Right or in connection with a Disqualifying Disposition
(as defined in Paragraph 29) or upon the lapsing of any forfeiture provision or right of repurchase or for any other reason required by law, the Company may withhold from the Participant&rsquo;s compensation, if any, or may require that the Participant advance in
cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company&rsquo;s Common Stock or a
promissory note, is authorized by the Administrator (and permitted by law).&nbsp; For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most
recent practicable date prior to the date of exercise.&nbsp; If the fair market value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate
employer.&nbsp; The Administrator in its discretion may condition the exercise of an Option for less than the then Fair Market Value on the Participant&rsquo;s payment of such additional withholding.&nbsp;</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying
Disposition of any shares acquired pursuant to the exercise of an ISO.&nbsp; A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale or gift) of such shares before the later of (a) two years after the date
the Employee was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code.&nbsp; If the Employee has died before such stock is sold, these holding period
requirements do not apply and no Disqualifying Disposition can occur thereafter.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>TERMINATION OF THE PLAN</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan will terminate on December 17, 2016, the date which is ten years from the <u>earlier</u> of the date of its adoption by the Board of
Directors and the date of its approval by the shareholders of the Company.&nbsp; The Plan may be terminated at an earlier date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect
any Agreements executed prior to the effective date of such termination.</font></p>

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<p><font size="2" face="Times New Roman"><font size="2" face="Times New Roman">&nbsp;</font></font></p>

<p><b><font size="2" face="Times New Roman">31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>AMENDMENT OF THE PLAN AND AGREEMENTS</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan may be amended by the shareholders of the Company.&nbsp; The Plan may also be amended by the Administrator, including, without
limitation, to the extent necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded
incentive stock options under Section 422 of the Code, and to the extent necessary to qualify the shares issuable upon exercise or acceptance of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities
exchange or quotation in any national automated quotation system of securities dealers.&nbsp; Any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such
shareholder approval.&nbsp; Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him or her.&nbsp; With the consent of the Participant affected, the
Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan.&nbsp; In the discretion of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which
is not adverse to the Participant.</font></p>

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<p><b><font size="2" face="Times New Roman">32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>EMPLOYMENT OR OTHER RELATIONSHIP</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or
director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period
of time.</font></p>

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<p><b><font size="2" face="Times New Roman">33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>GOVERNING LAW</u>.</font></b></p>

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<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Plan shall be construed and enforced in accordance with the law of the State of Delaware.</font></p>

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{"company-data": {"conformed-name": "JENNIFER CONVERTIBLES INC", "cik": "0000806817", "assigned-sic": "5712", "irs-number": "112824646", "state-of-incorporation": "DE", "fiscal-year-end": "0830"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-140727", "film-number": "07625568"}, "business-address": {"street1": "419 CROSSWAYS PK DR", "city": "WOODBURY", "state": "NY", "zip": "11797", "phone": "5164961900"}, "mail-address": {"street1": "419 CROSSWAYS PARK DR", "street2": "419 CROSSWAYS PARK DR", "city": "WOODBURY", "state": "NY", "zip": "11797"}}
As filed with the Securities and Exchange Commission on February 14, 2007
REGISTRATION NO. 333 ‑XXXXXX
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S‑8
REGISTRATION STATEMENT
under the
SECURITIES ACT OF 1933
JENNIFER CONVERTIBLES, INC.
(
Exact Name of Registrant as Specified in Its Charter)
Delaware                                                                                                                 
11-2824646
(
State or Other
Jurisdiction
(
I.R.S. Employer
of Incorporation or Organization
)
Identification No.
)
419 Crossways Park Drive
Woodbury, New York 11797
(
Address, Including Zip Code, of Principal Executive Offices
)
Jennifer Convertibles, Inc. 2006 Equity Incentive Plan
(Full Titles of the Plan)
Harley J. Greenfield, Chief Executive Officer
Jennifer Convertibles, Inc.
419 Crossways Park Drive
Woodbury, New York 11797
(516) 496-1900
(
Name, Address and Telephone Number, Including
Area Code, of Agent For Service
)
with a copy to:
Kenneth R. Koch, Esq.
Mintz Levin Cohn Ferris Glovsky and Popeo P.C.
666 Third Avenue
New York, New York 10017
(212) 935-3000
CALCULATION OF REGISTRATION FEE
Title of Securities to be Registered
Amount to be Registered
(1)
Proposed Maximum Offering Price Per Share
Proposed Maximum Aggregate Offering Price
Amount of Registration
Common Stock, par value $0.01 per share
600,000
(2)
$4.60
(3)
$2,760,000
(3)
$295.32
(1)
Plus such indeterminate number of shares of common stock as may be issued to prevent dilution resulting from stock dividends, stock splits or similar transactions in accordance with Rule 416
under the Securities Act of 1933, as amended.
(2)
Represents the registration of 600,000 shares of our common stock issuable upon exercise of options reserved for grant and issuance of stock awards under the Plan.
(3)
Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(h) and Rule 457(c) under the Securities Act of 1933, as amended, based on the average of the high
and low trading prices of our common stock as quoted on the American Stock Exchange on February 12, 2007.
EXPLANATORY NOTE
In accordance with the instructional Note to Part I of Form S-8 as promulgated by the Securities and Exchange Commission, the information
specified by Part I of Form S-8 has been omitted from this Registration Statement on Form S-8 for offers of Common Stock pursuant to the Plan.
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.  Incorporation of Certain Documents by Reference
.
The following documents filed by the Registrant with the Commission are incorporated herein by reference:
(a)
The Registrant's
Annual Report on Form 10-K for the fiscal year ended August
26, 2006.
(b)
The Registrant's
Quarterly Reports on Form 10-Q for the quarter
ended
November 25, 2006.
(c)
The Registrant's
Current Reports on Form 8-K dated October 18,
2006, November 2, 2006,                December 8, 2006 and January 31, 2007.
(d)        The description of the Common Stock contained in the Registrant's Registration Statement
                                 on Form 8-A filed under the Securities Exchange Act of 1934, as amended
(the "Exchange                                    Act"), filed with the Commission on June
9, 2003, including any amendment or report filed              for the purpose of updating such description.
All reports and other documents filed by the Registrant after the date hereof pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the
filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be part hereof from the date of filing of
such reports and documents.
Item 4.  Description of Securities
.
Not applicable.
Item 5.  Interests of Named Experts and Counsel
.
The validity of the issuance of the shares of Common Stock registered under this Registration Statement has been passed upon for the
Registrant by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.  A member of that firm owns an aggregate of approximately 25,000 shares of Common Stock of the Registrant.
Item 6.  Indemnification of Directors and Officers
.
Incorporated by reference from the Registrant's Registration Statement on Form S-1, Nos. 333-22214 and 33-10800.
Item 7.  Exemption from Registration Claimed
.
Not applicable.
Item 8.  Exhibits
.
(4.1)     Form of Common Stock Certificate (Filed as Exhibit 5.1 to Registrant's Registration Statement on Form 8-A, dated
August 26, 1987, as amended, and incorporated herein by reference).
(4.2)     Certificate of Incorporation of the Registrant (Filed as Exhibit 3.1 to Registrant's Registration Statement on Form S-1, as
amended, Nos. 333-22214 and 33-10800, and incorporated herein by reference).
(4.3)     Restated By-Laws of the Registrant (Filed as Exhibit 3.2 to Registrant's Registration Statement on Form S-1, as amended,
Nos. 333-22214 and 33-10800, and incorporated herein by reference).
(5)        Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as to the legality of shares being
registered.
(23.1)   Consent of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (included in opinion of counsel filed as Exhibit 5).
(23.2)   Consent of Eisner LLP.
(24)      Power of Attorney to file future amendments (set forth on the signature page of this Registration Statement).
(99.1)   Jennifer Convertibles, Inc. 2006 Equity Incentive Plan
Item 9.  Undertakings
.
(a)        The undersigned Registrant hereby undertakes:
(1)        To file, during any period in which offers or sales are being made, a post-effective amendment to this
registration statement:
(i)            To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)            To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the registration statement.  Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (§ 230.424(b) of this chapter) if, in the aggregate, the changes
in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
(iii)            To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration
statement;
Provided, however
, That:
(A) Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the
registration statement is on Form S-8 (§ 230.16b of this chapter), and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to
Section 13 or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) that are incorporated by reference in this registration statement; and
(B) Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if
the registration statement is on Form S-3 (§ 239.13 of this chapter) or Form F-3 (§ 239.33 of this chapter) and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) (§ 230.424(b) of
this chapter) that is part of the registration statement.
(C)
Provided further, however
, that paragraphs (a)(1)(i) and (a)(1)(ii) do not
apply if the registration statement is for an offering of asset-backed securities on Form S-1 (§ 239.11 of this chapter) or Form S-3 (§ 239.13 of this chapter), and the information required to be included in a post-effective amendment is provided pursuant
to Item 1100(c) of Regulation AB (§ 229.1100(c)).
(2)        That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3)        To remove from registration by means of a post-effective amendment any of the securities being registered which
remain unsold at the termination of the offering.
(b)        The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant's annual report
pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference
in this registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c)        Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to
the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.  In the event that a
claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
SIGNATURES
The Registrant
.  Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable
grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Woodbury, New York on February 14, 2007.
Jennifer Convertibles, Inc.
By
/s/ Harley J. Greenfield
Harley J. Greenfield
Chief Executive Officer
Each person whose signature appears below constitutes and appoints Harley J. Greenfield and Rami Abada, and each of them singly, his true and lawful
attorneys-in-fact and agents, with full power of substitution and resubstitution in each of them singly, for him and in his name, place and stead, and in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration
Statement on Form S-8 of Jennifer Convertibles, Inc., and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting to the attorneys-in-fact and agents, and each of them, full
power and authority to do and perform each and every act and thing requisite or necessary to be done in or about the premises, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that the attorneys-in-fact and
agents or any of each of them or their substitute may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the
dates indicated.
Signature
Title
Date
/s/ Harley J. Greenfield
Chief Executive Officer and
Harley J.
Greenfield                                          
Chairman of the Board               February 14, 2007
/s/ Rami Abada
Chief Financial Officer and         February 14, 2007
Rami
Abada                                                     
Director
/s/ Joseph Schillero
Controller                                  February 14, 2007
Joseph
Schillero
/s/ Edward
Bohn
Director                                   
            February 14, 2007
Edward Bohn
/s/ Kevin Coyle
Director                                               
February 14, 2007
Kevin Coyle
/s/ Mark Berman
Director                                   
            February 14, 2007
Mark Berman
Jennifer Convertibles, Inc.
INDEX TO EXHIBITS FILED WITH
FORM
S‑8 REGISTRATION STATEMENT
Exhibit
Number
Description
(4.1)
Form of Common Stock Certificate (1) (Filed as Exhibit 5.1 to Registrant's Registration Statement on Form 8-A, dated August 26, 1987, as amended, and incorporated herein by reference).
(4.2)
Certificate of Incorporation of the Registrant (Filed as Exhibit 3.1 to Registrant's Registration Statement on Form S-1, as amended, Nos. 333-22214 and 33-10800, and incorporated herein by reference).
(4.3)
Restated By-Laws of the Registrant (Filed as Exhibit 3.2 to Registrant's Registration Statement on Form S-1, as amended, Nos. 333-22214 and 33-10800, and incorporated herein by reference).
(5)
Opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as to the legality of shares being registered, filed herewith.
(23.1)
Consent of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. (included in opinion of counsel filed as Exhibit 5).
(23.2)
Consent of Eisner LLP, filed herewith.
(24)
Power of Attorney to file future amendments (set forth on the signature page of this Registration Statement.)
(99.1)
Jennifer Convertibles, Inc. 2006 Equity Incentive Plan
EXHIBIT 5
February 14, 2007
Jennifer Convertibles, Inc.
419 Crossways Park Drive
Woodbury, New York 11797
Re: Registration Statement on Form S-8
Ladies and Gentlemen:
We have acted as counsel to Jennifer Convertibles, Inc, a Delaware corporation (the "Company"), in connection with the preparation of its registration statement on Form S-8 under the Securities Act of
1933 (the "Registration Statement"), to which this opinion is to be filed as an exhibit.  The Registration Statement relates to the issuance of up to an aggregate of 600,000 shares of the Company's common stock, par value $0.01 per share (the
"Option Shares"), pursuant to the Company's 2006 Equity Incentive Plan (the "Plan").
We have examined such records and documents, including the Plan, and made such examinations of law as we have deemed relevant in connection with this opinion.  This opinion relates only to the laws of the
State of New York, the corporate laws of the State of Delaware and the federal laws of the United States of America in force on the date hereof.
Based upon the foregoing, and subject to the qualifications stated herein, we are of the opinion that, when issued upon the exercise of and in accordance with the terms of stock options duly and validly granted
against payment therefor, the Option Shares, which are then originally issued by the Company, will be validly issued, fully paid and nonassessable.
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.  In so doing, we do not admit that we are in the category of persons whose consent is required under Section 7 of
the Securities Act of 1933 or the rules and regulations of the Securities and Exchange Commission promulgated thereunder.
Sincerely,
/s/  Mintz Levin Cohn Ferris
Glovsky and Popeo, P.C.
EXHIBIT 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in the Registration Statement (Form S-8) pertaining to the 2006 Equity Incentive Plan of Jennifer Convertibles, Inc. of our report dated November 3, 2006, except for Note 15, as to which the date is November 17, 2006, with respect to the consolidated financial statements and schedule of Jennifer Convertibles, Inc. included in its Annual Report (Form 10-K) for the year ended August 26, 2006, filed with the Securities and Exchange Commission.
Eisner LLP
New York, New York
February 14, 2007
EXHIBIT 99.1
JENNIFER CONVERTIBLES, INC.
2006 EQUITY INCENTIVE PLAN
1.
DEFINITIONS
.
Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Jennifer Convertibles, Inc. 2006
Equity Incentive Plan, have the following meanings:
Administrator
means the Board of Directors,
unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee.
Affiliate
means a corporation which, for
purposes of Section 424 of the Code, is a parent or subsidiary of the Company, direct or indirect.
Agreement
means an agreement between the
Company and a Participant delivered pursuant to the Plan, in such form as the Administrator shall approve.
Board of Directors
means the Board of
Directors of the Company.
Code
means the United States Internal
Revenue Code of 1986, as amended.
Committee
means the committee of the Board
of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.
Common Stock
means shares of the
Company's common stock, $0.01 par value per share.
Company
means Jennifer Convertibles, Inc., a
Delaware corporation.
Disability
or
Disabled
means
permanent and total disability as defined in Section 22(e)(3) of the Code.
Employee
means any employee of the Company or of
an Affiliate (including, without limitation, an employee who is also serving as an officer or director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Stock Rights under the Plan.
Fair Market Value
of a Share of Common Stock
means:
(1)          If the Common Stock is listed on a national securities exchange or traded in the over‑the‑counter market and sales prices are regularly reported for the Common Stock, the closing or last price of
the Common Stock on the composite tape or other comparable reporting system for the trading day on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date;
(2)          If the Common Stock is not traded on a national securities exchange but is traded on the over‑the‑counter market, if sales prices are not regularly reported for the Common Stock for the trading day
referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the trading day on which Common Stock
was traded on the applicable date and if such applicable date is not a trading day, the last market trading day prior to such date; and
(3)          If the Common Stock is neither listed on a national securities exchange nor traded in the over‑the‑counter market, such value as the Administrator, in good faith, shall determine.
ISO
means an option meant to qualify as an
incentive stock option under Section 422 of the Code.
Non‑Qualified Option
means an option
which is not intended to qualify as an ISO.
Option
means an ISO or Non‑Qualified
Option granted under the Plan.
Participant
means an Employee, director or
consultant of the Company or an Affiliate to whom one or more Stock Rights are granted under the Plan.
As used herein, "Participant" shall include "Participant's Survivors" where the context requires.
Plan
means this Jennifer Convertibles, Inc.
2006 Equity Incentive Plan.
Shares
means shares of the Common Stock as
to which Stock Rights have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan.  The Shares issued under the Plan may be
authorized and unissued shares or shares held by the Company in its treasury, or both.
Stock-Based Award
means a grant by the
Company under the Plan of an equity award or an equity based award which is not an Option or a Stock Grant.
Stock Grant
means a grant by the Company of
Shares under the Plan.
Stock Right
means a right to Shares or the
value of Shares of the Company granted pursuant to the Plan -- an ISO, a Non-Qualified Option, a Stock Grant or a Stock-Based Award.
Survivor
means a deceased
Participant's legal representatives and/or any person or persons who acquired the Participant's rights to a Stock Right by will or by the laws of descent and distribution.
2.
PURPOSES OF THE PLAN
.
The Plan is intended to encourage ownership of Shares by Employees and directors of and certain consultants to the Company in order to attract and retain such
people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate.  The Plan provides for the granting of ISOs, Non‑Qualified Options,
Stock Grants and Stock-Based Awards.
3.
SHARES SUBJECT TO THE PLAN
.
(a)          The number of Shares which may be issued from time to time pursuant to this Plan
shall be 600,000, plus (ii) any shares of Common Stock that are represented by awards granted under the Company's 2003 Stock Option Plan that are forfeited, expire or are cancelled without delivery of shares of Common Stock or which result in the forfeiture of
shares of Common Stock back to the Company on or after the date of approval of this Plan by the stockholders, or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend,
combination, recapitalization or similar transaction in accordance with Paragraph 24 of the Plan provided, however, that no more than 316,667 Shares shall be added to the Plan pursuant to subsection (ii).
(b)          If an Option ceases to be "outstanding", in whole or in part (other
than by exercise), or if the Company shall reacquire (at not more than its original issuance price) any Shares issued pursuant to a Stock Grant or Stock-Based Award, or if any Stock Right expires or is forfeited, cancelled, or otherwise terminated or results in any
Shares not being issued, the unissued Shares which were subject to such Stock Right shall again be available for issuance from time to time pursuant to this Plan.  Notwithstanding the foregoing, if a Stock Right is exercised, in whole or in part, by tender of
Shares or if the Company's tax withholding obligation is satisfied by withholding Shares, the number of Shares deemed to have been issued under the Plan for purposes of the limitation set forth in Paragraph 3(a) above shall be the number of Shares that were
subject to the Stock Right or portion thereof, and not the net number of Shares actually issued.
4.
ADMINISTRATION OF THE PLAN
.
The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the
Committee, in which case the Committee shall be the Administrator.  Subject to the provisions of the Plan, the Administrator is authorized to:
a.            Interpret the provisions of the Plan and all Stock Rights and to make
all rules and determinations which it deems necessary or advisable for the administration of the Plan;
b.            Determine which Employees, directors and consultants shall be granted
Stock Rights;
c.            Determine the number of Shares for which a Stock Right or Stock Rights
shall be granted, provided, however, that in no event shall Stock Rights with respect to more than 200,000 Shares be granted to any Participant in any fiscal year;
d.            Specify the terms and conditions upon which a Stock Right or Stock
Rights may be granted; and
e.            Adopt any sub-plans applicable to residents of any specified
jurisdiction as it deems necessary or appropriate in order to comply with or take advantage of any tax or other laws applicable to the Company or to Plan Participants or to otherwise facilitate the administration of the Plan, which sub-plans may include additional
restrictions or conditions applicable to Stock Rights or Shares issuable pursuant to a Stock Right;
provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of preserving the tax status under Section 422 of the Code of those Options which are
designated as ISOs.  Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Stock Right granted under it shall be final, unless otherwise determined by the Board of Directors, if the
Administrator is the Committee.  In addition, if the Administrator is the Committee, the Board of Directors may take any action under the Plan that would otherwise be the responsibility of the Committee.
To the extent permitted under applicable law, the Board of Directors or the Committee may allocate all or any portion of its responsibilities
and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person selected by it. The Board of Directors or the Committee may revoke any such allocation or delegation at any time.
5.
ELIGIBILITY FOR PARTICIPATION
.
The Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be an
Employee, director or consultant of the Company or of an Affiliate at the time a Stock Right is granted.  Notwithstanding the foregoing, the Administrator may authorize the grant of a Stock Right to a person not then an Employee, director or consultant of the
Company or of an Affiliate; provided, however, that the actual grant of such Stock Right shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the execution of the Agreement evidencing such Stock Right.  ISOs
may be granted only to Employees.  Non‑Qualified Options, Stock Grants and Stock-Based Awards may be granted to any Employee, director or consultant of the Company or an Affiliate.  The granting of any Stock Right to any individual shall neither
entitle that individual to, nor disqualify him or her from, participation in any other grant of Stock Rights.
6.
TERMS AND CONDITIONS OF OPTIONS
.
Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or
requested by the Company, by the Participant.  The Administrator may provide that Options be granted subject to such terms and conditions, consistent with the terms and conditions specifically required under this Plan, as the Administrator may deem appropriate
including, without limitation, subsequent approval by the shareholders of the Company of this Plan or any amendments thereto.  The Option Agreements shall be subject to at least the following terms and conditions:
a.
Non‑Qualified Options
:  Each Option intended to be a
Non‑Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non‑Qualified Option:
i.
Option Price
: Each Option Agreement shall state the option price (per share) of the Shares covered by each Option, which option price shall be determined by the Administrator but shall
not be less than the Fair Market Value per share of Common Stock.
ii.
Number of Shares
: Each Option Agreement shall state the number of Shares to which it pertains.
iii.
Option Periods
:  Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights
accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals or events.
iv.
Option Conditions
:  Exercise of any Option may be conditioned upon the Participant's execution of a Share purchase agreement in form satisfactory to the Administrator providing for
certain protections for the Company and its other shareholders, including requirements that:
A.           The Participant's or the Participant's Survivors' right to sell or transfer the Shares may be restricted; and
B.           The Participant or the Participant's Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any applicable
restrictions.
b.
ISOs
:  Each Option intended to be an ISO shall be issued
only to an Employee and be subject to the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the
Internal Revenue Service:
i.
Minimum standards
:  The ISO shall meet the minimum standards required of Non‑Qualified Options, as described in Paragraph 6(a) above.
ii.
Option Price
:  Immediately before the ISO is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:
A.           10%
or less
of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each ISO shall not be less than 100% of
the Fair Market Value per share of the Shares on the date of the grant of the Option; or
B.           More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each ISO shall not be less than 110% of the
Fair Market Value on the date of grant.
iii.
Term of Option
:  For Participants who own:
A.           10%
or less
of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than ten years from the date of the grant or at such earlier
time as the Option Agreement may provide; or
B.           More than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, each ISO shall terminate not more than five years from the date of the grant or at such earlier
time as the Option Agreement may provide.
iv.
Limitation on Yearly Exercise
:  The Option Agreements shall restrict the amount of ISOs which may become exercisable in any calendar year (under this or any other ISO plan of the Company or
an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed $100,000.
7.
TERMS AND CONDITIONS OF STOCK GRANTS
.
Each offer of a Stock Grant to a Participant shall state the date prior to which the Stock Grant must be accepted by the Participant, and the principal terms
of each Stock Grant shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by the Administrator and shall contain terms and
conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards:
(a)          Each Agreement shall state the purchase price (per share), if any, of the Shares
covered by each Stock Grant, which purchase price shall be determined by the Administrator but shall not be less than the minimum consideration required by Delaware General Corporation Law
on the date of the grant of the Stock Grant;
(b)          Each Agreement shall state the number of Shares to which the Stock Grant pertains;
and
(c)          Each Agreement shall include the terms of any right of the Company to restrict or
reacquire the Shares subject to the Stock Grant, including the time and events upon which such rights shall accrue and the purchase price therefor, if any.
8.
TERMS AND CONDITIONS OF OTHER STOCK-BASED AWARDS
.
The Administrator shall have the right to grant other Stock-Based Awards based upon the Common Stock having such terms and conditions as the
Administrator may determine, including, without limitation, the grant of Shares based upon certain conditions, the grant of securities convertible into Shares and the grant of stock appreciation rights, phantom stock awards or stock units.  The principal terms
of each Stock-Based Award shall be set forth in an Agreement, duly executed by the Company and, to the extent required by law or requested by the Company, by the Participant.  The Agreement shall be in a form approved by the Administrator and shall contain terms
and conditions which the Administrator determines to be appropriate and in the best interest of the Company.
9.
EXERCISE OF OPTIONS AND ISSUE OF SHARES
.
An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company or its designee, together with
provision for payment of the full purchase price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement.  Such notice shall be signed by the
person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement.  Payment of the purchase price for the Shares as to which such
Option is being exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash
exercise price of the Option and held for at least six months, or (c) at the discretion of the Administrator, by having the Company retain from the shares otherwise issuable upon exercise of the Option, a number of shares having a Fair Market Value equal as of
the date of exercise to the exercise price of the Option, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established with a securities brokerage firm, and approved by the Administrator, or (e) at the discretion of
the Administrator, by any combination of (a), (b), (c) and (d) above or (f) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine. Notwithstanding the foregoing, the Administrator shall accept only such
payment on exercise of an ISO as is permitted by Section 422 of the Code.
The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the
Participant's Survivors, as the case may be).  In determining what constitutes "reasonably promptly," it is expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or
regulation (including, without limitation, state securities or "blue sky" laws) which requires the Company to take any action with respect to the Shares prior to their issuance.  The Shares shall, upon delivery, be fully paid, non-assessable
Shares.
The Administrator shall have the right to accelerate the date of exercise of any installment of any Option; provided that the Administrator
shall not accelerate the exercise date of any installment of any Option granted to an Employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 27) without the prior approval of the Employee if such acceleration would violate
the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6(b)(iv).
The Administrator may, in its discretion, amend any term or condition of an outstanding Option provided (i) such term or
condition as amended is permitted by the Plan, (ii) any such amendment shall be made only with the consent of the Participant to whom the Option was granted, or in the event of the death of the Participant, the Participant's Survivors, if the amendment is
adverse to the Participant, and (iii) any such amendment of any Option shall be made only after the Administrator determines whether such amendment would constitute a "modification" of any Option which is an ISO (as that term is defined in Section 424(h)
of the Code) or would cause any adverse tax consequences for the holder of such Option including, but not limited to, pursuant to Section 409A of the Code.
10.
ACCEPTANCE OF STOCK GRANTS AND STOCK-BASED AWARDS AND ISSUE OF SHARES
.
A Stock Grant or Stock-Based Award (or any part or installment thereof) shall be accepted by executing the applicable Agreement and
delivering it to the Company or its designee, together with provision for payment of the full purchase price, if any, in accordance with this Paragraph for the Shares as to which such Stock Grant or Stock-Based Award is being accepted, and upon compliance with any
other conditions set forth in the applicable Agreement.  Payment of the purchase price for the Shares as to which such Stock Grant or Stock-Based Award is being accepted shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of
the Administrator, through delivery of shares of Common Stock held for at least six months and having a Fair Market Value equal as of the date of acceptance of the Stock Grant or Stock Based-Award to the purchase price of the Stock Grant or Stock-Based Award, or (c)
at the discretion of the Administrator, by any combination of (a) and (b) above; or (d) at the discretion of the Administrator, payment of such other lawful consideration as the Administrator may determine.
The Company shall then, if required by the applicable Agreement, reasonably promptly deliver the Shares as to which such Stock Grant or
Stock-Based Award was accepted to the Participant (or to the Participant's Survivors, as the case may be), subject to any escrow provision set forth in the applicable Agreement.  In determining what constitutes "reasonably promptly," it is
expressly understood that the issuance and delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or "blue sky" laws) which requires the Company to take any
action with respect to the Shares prior to their issuance.
The Administrator may, in its discretion, amend any term or condition of an outstanding Stock Grant, Stock-Based Award or
applicable Agreement provided (i) such term or condition as amended is permitted by the Plan, and (ii) any such amendment shall be made only with the consent of the Participant to whom the Stock Grant or Stock-Based Award was made, if the amendment is adverse to the
Participant.
11.
RIGHTS AS A SHAREHOLDER
.
No Participant to whom a Stock Right has been granted shall have rights as a shareholder with respect to any Shares covered by such Stock
Right, except after due exercise of the Option or acceptance of the Stock Grant or as set forth in any Agreement, and tender of the full purchase price, if any, for the Shares being purchased pursuant to such exercise or acceptance and registration of the Shares in
the Company's share register in the name of the Participant.
12.
ASSIGNABILITY AND TRANSFERABILITY OF STOCK RIGHTS
.
By its terms, a Stock Right granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of
descent and distribution, or (ii) as approved by the Administrator in its discretion and set forth in the applicable Agreement.  Notwithstanding the foregoing, an ISO transferred except in compliance with clause (i) above shall no longer qualify as an ISO. 
The designation of a beneficiary of a Stock Right by a Participant, with the prior approval of the Administrator and in such form as the Administrator shall prescribe, shall not be deemed a transfer prohibited by this Paragraph.  Except as provided above, a
Stock Right shall only be exercisable or may only be accepted, during the Participant's lifetime, by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar process.  Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Stock Right or of any rights granted thereunder contrary to the provisions of this Plan, or
the levy of any attachment or similar process upon a Stock Right, shall be null and void.
13.
EFFECT ON OPTIONS OF TERMINATION OF SERVICE OTHER THAN "FOR CAUSE" OR DEATH OR DISABILITY
.
Except as otherwise provided in a Participant's Option Agreement, in the event of a termination of service (whether as an employee,
director or consultant) with the Company or an Affiliate before the Participant has exercised an Option, the following rules apply:
a.            A Participant who ceases to be an employee, director or consultant of
the Company or of an Affiliate (for any reason other than termination "for cause", Disability, or death for which events there are special rules in Paragraphs 14, 15, and 16, respectively), may exercise any Option granted to him or her to the extent that
the Option is exercisable on the date of such termination of service, but only within such term as the Administrator has designated in a Participant's Option Agreement.
b.            Except as provided in Subparagraph (c) below, or Paragraph 15 or 16, in
no event may an Option intended to be an ISO, be exercised later than three months after the Participant's termination of employment.
c.            The provisions of this Paragraph, and not the provisions of Paragraph 15
or 16, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of employment, director status or consultancy; provided, however, in the case of a Participant's Disability or death within three months after the termination of
employment, director status or consultancy, the Participant or the Participant's Survivors may exercise the Option within one year after the date of the Participant's termination of service, but in no event after the date of expiration of the term of the
Option.
d.            Notwithstanding anything herein to the contrary, if subsequent to a
Participant's termination of employment, termination of director status or termination of consultancy, but prior to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant's termination, the
Participant engaged in conduct which would constitute "cause", then such Participant shall forthwith cease to have any right to exercise any Option.
e.            A Participant to whom an Option has been granted under the Plan who is
absent from the Company or an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of
such absence alone, to have terminated such Participant's employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.
f.             Except as required by law or as set forth in a Participant's
Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant's status within or among the Company and any Affiliates, so long as the Participant continues to be an employee, director or consultant of the Company or any
Affiliate.
14.
EFFECT ON OPTIONS OF TERMINATION OF SERVICE "FOR CAUSE"
.
Except as otherwise provided in a Participant's Option Agreement, the following rules apply if the Participant's service (whether
as an employee, director or consultant) with the Company or an Affiliate is terminated "for cause" prior to the time that all his or her outstanding Options have been exercised:
a.            All outstanding and unexercised Options as of the time the Participant
is notified his or her service is terminated "for cause" will immediately be forfeited.
b.            For purposes of this Plan, "cause" shall include (and is not
limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance or non‑feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting,
advisory, nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or any Affiliate.  The determination of the Administrator as to the existence of
"cause" will be conclusive on the Participant and the Company.
c.            "Cause" is not limited to events which have occurred prior
to a Participant's termination of service, nor is it necessary that the Administrator's finding of "cause" occur prior to termination.  If the Administrator determines, subsequent to a Participant's termination of service but prior
to the exercise of an Option, that either prior or subsequent to the Participant's termination the Participant engaged in conduct which would constitute "cause", then the right to exercise any Option is forfeited.
d.            Any provision in an agreement between the Participant and the Company or
an Affiliate, which contains a conflicting definition of "cause" for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant.
15.
EFFECT ON OPTIONS OF TERMINATION OF SERVICE FOR DISABILITY
.
Except as otherwise provided in a Participant's Option Agreement:
a.            A Participant who ceases to be an employee, director or consultant of the
Company or of an Affiliate by reason of Disability may exercise any Option granted to such Participant:
(i)           To the extent that the Option has become exercisable but has not been exercised on the date of Disability; and
(ii)          In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of Disability of any additional vesting rights that would have accrued on the next vesting
date had the Participant not become Disabled.  The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability.
b.            A Disabled Participant may exercise such rights only within the period
ending one year after the date of the Participant's Disability, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not become Disabled and had continued to be
an employee, director or consultant or, if earlier, within the originally prescribed term of the Option.
c.            The Administrator shall make the determination both of whether
Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).  If requested, the
Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.
16.
EFFECT ON OPTIONS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT
.
Except as otherwise provided in a Participant's Option Agreement:
a.            In the event of the death of a Participant while the Participant is an
employee, director or consultant of the Company or of an Affiliate, such Option may be exercised by the Participant's Survivors:
(i)           To the extent that the Option has become exercisable but has not been exercised on the date of death; and
(ii)          In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have accrued on the next vesting date
had the Participant not died.  The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant's date of death.
b.            If the Participant's Survivors wish to exercise the Option, they
must take all necessary steps to exercise the Option within one year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died
and had continued to be an employee, director or consultant or, if earlier, within the originally prescribed term of the Option.
17.
EFFECT OF TERMINATION OF SERVICE ON UNACCEPTED STOCK GRANTS
.
In the event of a termination of service (whether as an employee, director or consultant) with the Company or an Affiliate for any reason
before the Participant has accepted a Stock Grant, such offer shall terminate.
For purposes of this Paragraph 17 and Paragraph 18 below, a Participant to whom a Stock Grant has been offered and accepted under the Plan
who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other than a Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence,
be deemed, by virtue of such absence alone, to have terminated such Participant's employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide.
In addition, for purposes of this Paragraph 17 and Paragraph 18 below, any change of employment or other service within or among the Company
and any Affiliates shall not be treated as a termination of employment, director status or consultancy so long as the Participant continues to be an employee, director or consultant of the Company or any Affiliate.
18.
EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE OTHER THAN "FOR CAUSE" OR DEATH OR DISABILITY
.
Except as otherwise provided in a Participant's Stock Grant Agreement, in the event of a termination of service (whether as an
employee, director or consultant), other than termination "for cause," Disability, or death for which events there are special rules in Paragraphs 19, 20, and 21, respectively, before all forfeiture provisions or Company rights of repurchase shall have
lapsed, then the Company shall have the right to cancel or repurchase that number of Shares subject to a Stock Grant as to which the Company's forfeiture or repurchase rights have not lapsed.
19.
EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE "FOR CAUSE"
.
Except as otherwise provided in a Participant's Stock Grant Agreement, the following rules apply if the Participant's service
(whether as an employee, director or consultant) with the Company or an Affiliate is terminated "for cause":
a.            All Shares subject to any Stock Grant that remain subject to forfeiture
provisions or as to which the Company shall have a repurchase right shall be immediately forfeited to the Company as of the time the Participant is notified his or her service is terminated for Cause.
b.            For purposes of this Plan, "cause" shall include (and is not
limited to) dishonesty with respect to the employer, insubordination, substantial malfeasance or non‑feasance of duty, unauthorized disclosure of confidential information, breach by the Participant of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or similar agreement between the Participant and the Company, and conduct substantially prejudicial to the business of the Company or any Affiliate.  The determination of the Administrator as to the existence of "cause"
will be conclusive on the Participant and the Company.
c.            "Cause" is not limited to events which have occurred prior
to a Participant's termination of service, nor is it necessary that the Administrator's finding of "cause" occur prior to termination.  If the Administrator determines, subsequent to a Participant's termination of service, that
either prior or subsequent to the Participant's termination the Participant engaged in conduct which would constitute "cause," then the Company's right to repurchase all of such Participant's Shares shall apply.
d.            Any provision in an agreement between the Participant and the Company or
an Affiliate, which contains a conflicting definition of "cause" for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to that Participant.
20.
EFFECT ON STOCK GRANTS OF TERMINATION OF SERVICE FOR DISABILITY
.
Except as otherwise provided in a Participant's Stock Grant Agreement, the following rules apply if a Participant ceases to be an
employee, director or consultant of the Company or of an Affiliate by reason of Disability:  to the extent the forfeiture provisions or the Company's rights of repurchase have not lapsed on the date of Disability, they shall be exercisable; provided,
however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant through the date of Disability as would have lapsed
had the Participant not become Disabled.  The proration shall be based upon the number of days accrued prior to the date of Disability.
The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for
such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination).  If requested, the Participant shall be examined by a physician selected or approved by the
Administrator, the cost of which examination shall be paid for by the Company.
21.
EFFECT ON STOCK GRANTS OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT
.
Except as otherwise provided in a Participant's Stock Grant Agreement, the following rules apply in the event of the death of a
Participant while the Participant is an employee, director or consultant of the Company or of an Affiliate:  to the extent the forfeiture provisions or the Company's rights of repurchase have not lapsed on the date of death, they shall be exercisable;
provided, however, that in the event such forfeiture provisions or rights of repurchase lapse periodically, such provisions or rights shall lapse to the extent of a pro rata portion of the Shares subject to such Stock Grant through the date of death as would have
lapsed had the Participant not died.  The proration shall be based upon the number of days accrued prior to the Participant's death.
22.
PURCHASE FOR INVESTMENT
.
Unless the offering and sale of the Shares to be issued upon the particular exercise or acceptance of a Stock Right shall have been
effectively registered under the Securities Act of 1933, as now in force or hereafter amended (the "1933 Act"), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the following conditions have been
fulfilled:
a.            The person(s) who exercise(s) or accept(s) such Stock Right shall
warrant to the Company, prior to the receipt of such Shares, that such person(s) are acquiring such Shares for their own respective accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event
the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant:
"The
shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the
Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities
laws."
b.            At the discretion of the Administrator, the Company shall have received
an opinion of its counsel that the Shares may be issued upon such particular exercise or acceptance in compliance with the 1933 Act without registration thereunder.
23.
DISSOLUTION OR LIQUIDATION OF THE COMPANY
.
Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised and all Stock
Grants and Stock-Based Awards which have not been accepted will terminate and become null and void; provided, however, that if the rights of a Participant or a Participant's Survivors have not otherwise terminated and expired, the Participant or the
Participant's Survivors will have the right immediately prior to such dissolution or liquidation to exercise or accept any Stock Right to the extent that the Stock Right is exercisable or subject to acceptance as of the date immediately prior to such
dissolution or liquidation.  Upon the dissolution or liquidation of the Company, any outstanding Stock-Based Awards shall immediately terminate unless otherwise determined by the Administrator or specifically provided in the applicable Agreement.
24.
ADJUSTMENTS
.
Upon the occurrence of any of the following events, a Participant's rights with respect to any Stock Right granted to him or her
hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in a Participant's Agreement:
a.
Stock Dividends and Stock Splits
.  If (i) the shares of
Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, or (ii) additional shares or new or different shares or other
securities of the Company or other non-cash assets are distributed with respect to such shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise of an Option or acceptance of a Stock Grant shall be appropriately increased or
decreased proportionately, and appropriate adjustments shall be made including, in the purchase price per share, to reflect such events.  The number of Shares subject to the limitations in Paragraph 3(a) and 4(c) shall also be proportionately adjusted upon the
occurrence of such events.
b.
Corporate Transactions
.  If the Company is to be
consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Company's assets other than a transaction to merely change the state of incorporation (a "Corporate Transaction"), the Administrator or the board of
directors of any entity assuming the obligations of the Company hereunder (the "Successor Board"), shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the
Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Corporate Transaction or securities of any successor or acquiring entity; or (ii) upon written notice to the
Participants, provide that all Options must be exercised (all Options being made fully vested and immediately exercisable prior to their termination for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which
period the Options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Options (all Options being made fully vested and immediately exercisable for purposes of this
Subparagraph) over the exercise price thereof.
With respect to outstanding Stock Grants, the Administrator or the Successor Board, shall either (i) make appropriate provisions for the
continuation of such Stock Grants on the same terms and conditions by substituting on an equitable basis for the Shares then subject to such Stock Grants either the consideration payable with respect to the outstanding Shares of Common Stock in connection with the
Corporate Transaction or securities of any successor or acquiring entity; or (ii) terminate all Stock Grants in exchange for a cash payment equal to the excess of the Fair Market Value of the Shares subject to such Stock Grants over the purchase price thereof, if
any.  In addition, in the event of a Corporate Transaction, the Administrator may waive any or all Company forfeiture or repurchase rights with respect to outstanding Stock Grants.
c.
Recapitalization or Reorganization
.  In the event of a
recapitalization or reorganization of the Company other than a Corporate Transaction pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, a Participant upon exercising an Option or
accepting a Stock Grant after the recapitalization or reorganization shall be entitled to receive for the purchase price paid upon such exercise or acceptance of the number of replacement securities which would have been received if such Option had been exercised or
Stock Grant accepted prior to such recapitalization or reorganization.
d.
Adjustments to Stock-Based Awards
.  Upon the happening of
any of the events described in Subparagraphs a, b or c above, any outstanding Stock-Based Award shall be appropriately adjusted to reflect the events described in such Subparagraphs.  The Administrator or the Successor Board shall determine the specific
adjustments to be made under this Paragraph 24, including, but not limited to the effect if any, of a Change of Control and, subject to Paragraph 4, its determination shall be conclusive.
e.
Modification of ISOs
.  Notwithstanding the foregoing, any
adjustments made pursuant to Subparagraph a, b or c above with respect to ISOs shall be made only after the Administrator determines whether such adjustments would constitute a "modification" of such ISOs (as that term is defined in Section 424(h) of
the Code) or would cause any adverse tax consequences for the holders of such ISOs.  If the Administrator determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments, unless
the holder of an ISO specifically agrees in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such "modification" on his or her income tax treatment with respect to the ISO. 
This paragraph shall not apply to the acceleration of the vesting of any ISO that would cause any portion of the ISO to violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6b(iv).
25.
ISSUANCES OF SECURITIES
.
Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Stock Rights.  Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in
property (including without limitation, securities) of the Company prior to any issuance of Shares pursuant to a Stock Right.
26.
FRACTIONAL SHARES
.
No fractional shares shall be issued under the Plan and the person exercising a Stock Right shall receive from the Company cash in lieu of
such fractional shares equal to the Fair Market Value thereof.
27.
CONVERSION OF ISOs INTO NON‑QUALIFIED OPTIONS; TERMINATION OF ISOs
.
The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such
Participant's ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non‑Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an employee of the Company or an
Affiliate at the time of such conversion.  At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non‑Qualified Options as the Administrator in its discretion may
determine, provided that such conditions shall not be inconsistent with this Plan.  Nothing in the Plan shall be deemed to give any Participant the right to have such Participant's ISOs converted into Non‑Qualified Options, and no such conversion
shall occur until and unless the Administrator takes appropriate action.  The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion.
28.
WITHHOLDING
.
In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act ("F.I.C.A.") withholdings or
other amounts are required by applicable law or governmental regulation to be withheld from the Participant's salary, wages or other remuneration in connection with the exercise or acceptance of a Stock Right or in connection with a Disqualifying Disposition
(as defined in Paragraph 29) or upon the lapsing of any forfeiture provision or right of repurchase or for any other reason required by law, the Company may withhold from the Participant's compensation, if any, or may require that the Participant advance in
cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the statutory minimum amount of such withholdings unless a different withholding arrangement, including the use of shares of the Company's Common Stock or a
promissory note, is authorized by the Administrator (and permitted by law).  For purposes hereof, the fair market value of the shares withheld for purposes of payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most
recent practicable date prior to the date of exercise.  If the fair market value of the shares withheld is less than the amount of payroll withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate
employer.  The Administrator in its discretion may condition the exercise of an Option for less than the then Fair Market Value on the Participant's payment of such additional withholding.
29.
NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION
.
Each Employee who receives an ISO must agree to notify the Company in writing immediately after the Employee makes a Disqualifying
Disposition of any shares acquired pursuant to the exercise of an ISO.  A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale or gift) of such shares before the later of (a) two years after the date
the Employee was granted the ISO, or (b) one year after the date the Employee acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code.  If the Employee has died before such stock is sold, these holding period
requirements do not apply and no Disqualifying Disposition can occur thereafter.
30.
TERMINATION OF THE PLAN
.
The Plan will terminate on December 17, 2016, the date which is ten years from the
earlier
of the date of its adoption by the Board of
Directors and the date of its approval by the shareholders of the Company.  The Plan may be terminated at an earlier date by vote of the shareholders or the Board of Directors of the Company; provided, however, that any such earlier termination shall not affect
any Agreements executed prior to the effective date of such termination.
31.
AMENDMENT OF THE PLAN AND AGREEMENTS
.
The Plan may be amended by the shareholders of the Company.  The Plan may also be amended by the Administrator, including, without
limitation, to the extent necessary to qualify any or all outstanding Stock Rights granted under the Plan or Stock Rights to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded
incentive stock options under Section 422 of the Code, and to the extent necessary to qualify the shares issuable upon exercise or acceptance of any outstanding Stock Rights granted, or Stock Rights to be granted, under the Plan for listing on any national securities
exchange or quotation in any national automated quotation system of securities dealers.  Any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such
shareholder approval.  Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under a Stock Right previously granted to him or her.  With the consent of the Participant affected, the
Administrator may amend outstanding Agreements in a manner which may be adverse to the Participant but which is not inconsistent with the Plan.  In the discretion of the Administrator, outstanding Agreements may be amended by the Administrator in a manner which
is not adverse to the Participant.
32.
EMPLOYMENT OR OTHER RELATIONSHIP
.
Nothing in this Plan or any Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or
director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any Affiliate for any period
of time.
33.
GOVERNING LAW
.
This Plan shall be construed and enforced in accordance with the law of the State of Delaware.