**Exhibit 10.7**

**SCICLONE PHARMACEUTICALS, INC.**

**2004 OUTSIDE DIRECTORS STOCK OPTION PLAN**

**As Amended Through February 22, 2007**

1. **ESTABLISHMENT, PURPOSEAND TERMOF PLAN.**

1.1 **Establishmen**t***.*** The SciClone Pharmaceuticals, Inc. 2004 Outside Directors Stock Option Plan (the “***Plan***”) is established effective as of May 26, 2004, the date onwhich it is approved by the stockholders of the Company (the *“****Effective Date****”*). 

1.2**Purpose*****.*** The purpose of the Plan is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward persons performing services as Outside Directors of the Company and bymotivating such persons to contribute to the growth and profitability of the Company. 

1.3 **Term of Plan.** The Plan shall continue ineffect until terminated by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions on such shares under the terms of the Plan and the agreements evidencing Options grantedunder the Plan have lapsed. 

2. **DEFINITIONSAND CONSTRUCTION.**

2.1 **Definitions.**Whenever used herein, the following terms shall have their respective meanings set forth below: 

(a) *“****Board****”* means the Board of Directors of the Company. If one or more Committees have been appointed by the Boardto administer the Plan, *“****Board****”* also means such Committee(s). 

(b)*“****Code****”* means the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder. 

(c) *“****Committee****”* means the compensation committee or other committee of one or members of the Board duly appointed to administer the Plan and having such powers as shall bespecified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board granted herein, including, without limitation, the power to amend or terminate the Plan at any time,subject to the terms of the Plan and any applicable limitations imposed by law. 

(d) *“****Company****”* meansSciClone Pharmaceuticals, Inc. a Delaware corporation, or any successor corporation thereto. 

(e)*“****Director****”* means a member of the Board or of the board of directors of any other Parent Corporation or Subsidiary Corporation. 

 

1 

(f) *“****Disability****”* means the permanent and total disability of theOptionee within the meaning of Section 22(e)(3) of the Code. 

(g) *“****Exchange Act****”* means theSecurities Exchange Act of 1934, as amended. 

(h) *“****Fair Market Value****”* means, as of any date, thevalue of a share of Stock or other property as determined by the Board, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following: 

(i) If, on such date, the Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shallbe the closing price of a share of Stock (or the closing bid price of a share of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or such other national or regional securities exchange ormarket system constituting the primary market for the Stock, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on suchsecurities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board,in its discretion. 

(ii) If, on such date, the Stock is not listed on a national or regional securities exchange or market system, theFair Market Value of a share of Stock shall be as determined by the Board in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse. 

(i) *“****Option****”* means a right to purchase Stock (subject to adjustment as provided in Section 4.2) pursuant tothe terms and conditions of the Plan. Each Option shall be a nonstatutory stock option; that is, an option not intended to qualify as an incentive stock option within the meaning of Section 422(b) of the Code. 

(j) *“****Option Agreement****”* means a written agreement between the Company and an Optionee setting forth the terms,conditions and restrictions of the Option granted to the Optionee and any shares acquired upon the exercise thereof. An Option Agreement may consist of a form of “Notice of Grant of Stock Options” and a form of “Stock OptionAgreement” incorporated therein by reference, or such other form or forms as the Board may approve from time to time. 

(k)*“****Optionee****”* means a person who has been granted one or more Options. 

(l) *“****OutsideDirector****”* means a Director who is not an employee of the Company or of any Parent Corporation or Subsidiary Corporation. 

 

2 

(m) *“****Parent Corporation****”* means any present or future “parentcorporation” of the Company, as defined in Section 424(e) of the Code. 

(n) *“****Rule 16b-3****”*means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulation. 

(o)*“****Securities Act****”* means the Securities Act of 1933, as amended. 

(p)*“****Service****”* means an Optionee’s service with the Company as a Director. An Optionee’s Service shall be deemed to have terminated if the Optionee ceases to be a Director, even if the Optionee continues torender service to the Company in a capacity other than as a Director or commences rendering service to a Parent Corporation or Subsidiary Corporation. An Optionee’s Service shall not be deemed to have terminated if the Optionee takes any bonafide leave of absence approved by the Company. Unless otherwise provided by the Board in the grant of an Option and set forth in the Option Agreement evidencing such Option, an approved leave of absence shall be treated as Service for purposes ofdetermining vesting under the Option. Subject to the foregoing, the Company, in its discretion, shall determine whether the Optionee’s Service has terminated and the effective date of such termination. 

(q) *“****Stock****”* means the common stock of the Company, as adjusted from time to time in accordance withSection 4.2. 

(r) *“****Subsidiary Corporation****”* means any present or future “subsidiarycorporation” of the Company, as defined in Section 424(f) of the Code. 

2.2 **Construction.** Captions and titles containedherein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use ofthe term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 

3.**ADMINISTRATION.**

3.1 **Administration by the Board.** The Plan shall be administered by theBoard. All questions of interpretation of the Plan or of any Option shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Option. At any time that any class ofequity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3. For this purpose, the Board may delegate authority toadminister the Plan to a Committee composed solely of two or more Non-Employee Directors. 

3.2 **Authority of Officers.** Any officer ofthe Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the officer hasapparent authority with respect to such matter, right, obligation, determination or election. 

 

3 

3.3 **Indemnification.** In addition to such other rights of indemnification as they may have asmembers of the Board or officers or employees of the Company, members of the Board and any officers or employees of the Company to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against allreasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reasonof any action taken or failure to act under or in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by theCompany) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, badfaith or intentional misconduct in duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handleand defend the same. 

4. **SHARES SUBJECTTO PLAN.**

4.1 **Maximum Number of Shares Issuable.** Subject to adjustment as provided in Section 4.2, the maximum aggregate number of sharesof Stock that may be issued under the Plan shall be one million seven hundred sixty-five thousand (1,765,000) and shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof. Shares issuable under the Planshall consist of authorized but unissued or reacquired shares of Stock or any combination thereof. If an outstanding Option for any reason expires or is terminated or canceled without having been exercised in full, the shares of Stock allocable tothe unexercised portion of such Option shall again be available for issuance under the Plan. Shares of Stock shall not be deemed to have been issued pursuant to the Plan to the extent such shares are withheld in satisfaction of tax withholdingobligations pursuant to Section 6.5. 

4.2 **Adjustments for Changes in Capital Structure*****.*** Subject to any requiredaction by the stockholders of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification,stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to thestockholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments shall be made in the number and class ofshares subject to the Plan and to any outstanding Options and in the exercise price per share of any outstanding Options in order to prevent dilution or enlargement of Optionees’ rights under the Plan. For purposes of the foregoing, conversionof any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section 4.2 shall be rounded down tothe nearest 

 

4 

whole number, and in no event may the exercise price of any Option be decreased to an amount less than the par value, ifany, of the stock subject to the Option. Such adjustments shall be determined by the Board, and its determination shall be final, binding and conclusive. 

5. **ELIGIBILITY.**

Options shall be granted only to those personswho, at the time of grant, are serving as Outside Directors. 

6. **TERMSAND CONDITIONSOF OPTIONS.**

Options shall be evidenced by Option Agreements specifying the number ofshares of Stock covered thereby, in such form as the Board shall from time to time establish. Option Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms andconditions: 

6.1 **Automatic Grant.** Subject to the execution by an Outside Director of an appropriate Option Agreement, Options shallbe granted automatically and without further action of the Board, as follows: 

(a) ***Initial Option.*** Each person who firstbecomes an Outside Director on or after the Effective Date shall be granted on the date such person first becomes an Outside Director an Option to purchase fifty thousand (50,000) shares of Stock (an *“****InitialOption****”*). 

(b) ***Annual Option.*** Each Outside Director shall be granted on the date of each annual meetingof the stockholders of the Company which occurs on or after the Effective Date (an *“****Annual Meeting****”*) immediately following which such person remains an Outside Director an Option to purchase thirty thousand(30,000) shares of Stock (an *“****Annual Option****”*); provided, however, that an Outside Director granted an Initial Option within the prior one year period immediately preceding the date of an Annual Meetingshall be granted an option to purchase that number of shares subject to an Annual Option multiplied by a fraction, the numerator of which is the number of full months which have lapsed since the date of appointment as an Outside Director and thedenominator of which is twelve (12). 

(c) ***Right to Decline Option.*** Notwithstanding the foregoing, any person may elect notto receive an Option by delivering written notice of such election to the Board no later than the day prior to the date such Option would otherwise be granted. A person so declining an Option shall receive no payment or other consideration in lieuof such declined Option. A person who has declined an Option may revoke such election by delivering written notice of such revocation to the Board no later than the day prior to the date such Option would be granted pursuant to Section 6.1(a)or (b), as the case may be. 

6.2 **Exercise Price*****.*** The exercise price per share of Stock subject to an Option shall bethe Fair Market Value of a share of Stock on the date of grant of the Option. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than 

 

5 

the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution foranother option in a manner qualifying under the provisions of Section 424(a) of the Code. 

6.3 **Exercisability and Term ofOptions*****.*** Except as otherwise provided in the Plan or in the Option Agreement evidencing an Option and provided that the Optionee’s Service has not terminated prior to the relevant date, each Option shall vest and becomeexercisable as follows: 

(a) ***Initial Option***. The Initial Option shall vest and become exercisable with respect to one-third(1/3) of the shares initially subject thereto on the first anniversary of the date of grant, an additional one third (1/3) of the shares initially subject thereto shall vest and become exercisable on the second anniversary of the date ofgrant, and the remainder shall vest and become exercisable on the third anniversary of the date of grant. 

(b) ***AnnualOption***: The Annual Option shall vest and become exercisable with respect to one-twelfth (1/12) of the shares initially subject thereto for each full month of the Optionee’s continuous Service from the date of grant until the Optionis fully vested. 

(c) ***Term of Option***. Unless earlier terminated in accordance with the terms of the Plan or the OptionAgreement evidencing an Option, each Option shall terminate and cease to be exercisable on the tenth (10th) anniversary of the date of grant of the Option. 

6.4 **Payment of Exercise Price.**

(a) ***Forms of Consideration Authorized.*** Except asotherwise provided below, payment of the exercise price for the number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash or by check, (ii) by tender to the Company, or attestation to the ownership, ofshares of Stock owned by the Optionee having a Fair Market Value (as determined by the Company without regard to any restrictions on transferability applicable to such stock by reason of federal or state securities laws or agreements with anunderwriter for the Company) not less than the exercise price, (iii) by delivery of a properly executed notice together with irrevocable instructions to a broker providing for the assignment to the Company of the proceeds of a sale or loan withrespect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors ofthe Federal Reserve System) (a *“****Cashless Exercise****”*), or (iv) by any combination thereof. 

(b)***Limitations on Forms of Consideration.***

(i) **Tender of Stock.** Notwithstanding the foregoing, an Option may not beexercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of theCompany’s stock. Unless otherwise provided by the 

 

6 

Board, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stockunless such shares either have been owned by the Optionee for more than six (6) months or were not acquired, directly or indirectly, from the Company. 

(ii) **Cashless Exercise.** The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for theexercise of Options by means of a Cashless Exercise. 

6.5 **Tax Withholding*****.*** The Company shall have the right, but notthe obligation, to deduct from the shares of Stock issuable upon the exercise of an Option, or to accept from the Optionee the tender of, a number of whole shares of Stock having a Fair Market Value, as determined by the Company, equal to all or anypart of the federal, state, local and foreign taxes, if any, required by law to be withheld by the Company with respect to such Option or the shares acquired upon the exercise thereof. Alternatively or in addition, in its discretion, the Companyshall have the right to require the Optionee, by cash payment or otherwise, including by means of a Cashless Exercise, to make adequate provision for any such tax withholding obligations of the Company arising in connection with the Option or theshares acquired upon the exercise thereof. The Fair Market Value of any shares of Stock withheld or tendered to satisfy any such tax withholding obligations shall not exceed the amount determined by the applicable minimum statutory withholdingrates. The Company shall have no obligation to deliver shares of Stock until the Company’s tax withholding obligations have been satisfied by the Optionee. 

6.6 **Effect of Termination of Service.**

(a) ***Option Exercisability*****.** Subject toearlier termination of the Option as otherwise provided herein, an Option shall be exercisable after an Optionee’s termination of Service only during the applicable time period determined in accordance with this Section 6.6 and thereaftershall terminate: 

(i) **Disability.** If the Optionee’s Service terminates because of the Disability of the Optionee, the Option,to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or legal representative) at any time prior to the expiration of twelve(12) months after the date on which the Optionee’s Service terminated, but in any event no later than the date of expiration of the Option’s term as set forth in the Option Agreement evidencing such Option (the*“****Option Expiration Date****”*). 

(ii) **Death.** If the Optionee’s Service terminates because ofthe death of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee’s legal representative or other person who acquired the right toexercise the Option by reason of the Optionee’s death at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. TheOptionee’s Service shall be deemed to have terminated on account of death if the Optionee dies within three (3) months after the Optionee’s termination of Service. 

 

7 

(iii) **Other Termination of Service.** If the Optionee’s Service terminates for any reason,except Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s Service terminated, may be exercised by the Optionee at any time prior to the expiration of three(3) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 

(b) ***Extension if Exercise Prevented by Law*****.** Notwithstanding the foregoing, if the exercise of an Option within the applicable time periods set forth in Section 6.6(a) is prevented by the provisions ofSection 9 below, the Option shall remain exercisable until three (3) months after the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later than the Option Expiration Date. 

(c) ***Extension if Optionee Subject to Section 16(b*****).** Notwithstanding the foregoing, if a sale within the applicable timeperiods set forth in Section 6.6(a) of shares acquired upon the exercise of the Option would subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of(i) the tenth (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the Optionee’s termination of Service,or (iii) the Option Expiration Date. 

6.7 **Transferability of Options.**During the lifetime of the Optionee, an Option shall beexercisable only by the Optionee or the Optionee’s guardian or legal representative. No Option shall be assignable or transferable by the Optionee, except by will or by the laws of descent and distribution. Notwithstanding the foregoing, to theextent permitted by the Board, in its discretion, and set forth in the Option Agreement evidencing such Option, an Option shall be assignable or transferable subject to the applicable limitations, if any, described in the General Instructions toForm S-8 Registration Statement under the Securities Act. 

7. **STANDARD FORMSOFOPTION AGREEMENT.**

7.1 **Option Agreement*****.*** Each Option shall complywith and be subject to the terms and conditions set forth in the form of Option Agreement approved by the Board concurrently with its adoption of the Plan and as amended from time to time. 

7.2 **Authority to Vary Terms*****.*** The Board shall have the authority from time to time to vary the terms of any standard form of OptionAgreement described in this Section 7 either in connection with the grant or amendment of an individual Option or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any suchnew, revised or amended standard form or forms of Option Agreement are not inconsistent with the terms of the Plan. Such authority shall include, but not by way of limitation, the authority to grant Options which are immediately exercisable subjectto the Company’s right to repurchase any unvested shares of Stock acquired by the Optionee on exercise of an Option in the event such Optionee’s Service is terminated for any reason. 

 

8 

8. **EFFECTOF CHANGEINCONTROL.**

8.1 **Definitions.**

(a) An *“****Ownership Change Event****”* shall be deemed to have occurred if any of the following occurs with respect to theCompany: (i) the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidationin which the Company is a party; (iii) the sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv) a liquidation or dissolution of the Company. 

(b) A *“****Change in Control****”* shall mean an Ownership Change Event or a series of related Ownership Change Events(collectively, a *“****Transaction****”*) wherein the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as theirownership of shares of the Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of theCompany or, in the case of a Transaction described in Section 8.1(a)(iii), the corporation or other business entity to which the assets of the Company were transferred (the *“****Transferee****”*), as the case maybe. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business entities which own the Companyor the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or exchanges of the voting securities of the Companyor multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. 

8.2 **Effect of Change inControl on Options.** In the event of a Change in Control, any unexercisable or unvested portions of outstanding Options and any shares acquired upon the exercise thereof shall be immediately exercisable and vested in full as of the date ten(10) days prior to the date of the Change in Control. The exercise or vesting of any Option and any shares acquired upon the exercise thereof that was permissible solely by reason of this Section 8.2 shall be conditioned upon theconsummation of the Change in Control. In addition, the surviving, continuing, successor, or purchasing corporation or parent corporation thereof, as the case may be (the *“****Acquiror****”*), may either assume theCompany’s rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for the Acquiror’s stock. Any Options which are neither assumed or substituted for by the Acquiror inconnection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of the Change in Control. Notwithstanding the foregoing, if the corporation the stock ofwhich is subject to the outstanding Options immediately prior to an Ownership Change Event described in Section 8.1(a)(i) constituting a Change in Control is the surviving or continuing corporation and immediately after such Ownership ChangeEvent less than 

 

9 

fifty percent (50%) of the total combined voting power of its voting stock is held by another corporation, theoutstanding Options shall not terminate unless the Board otherwise provides in its discretion. For the purposes of this Section 8.2, an Option shall be considered assumed if, for every share of Stock subject thereto immediately prior to theChange in Control, the Optionee has the right, following the Change in Control, to acquire in accordance with the terms and conditions of the assumed Option the consideration (whether stock, cash or other securities or property) received in theChange in Control transaction by holders of shares of Stock for each share held immediately prior to such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of theoutstanding shares of Stock); provided, however, that if such consideration received in the Change in Control transaction was not solely common stock of the Acquiror, the Board may, with the consent of the Acquiror, provide for the consideration tobe acquired to be solely common stock of the Acquiror equal in Fair Market Value to the per share consideration received by holders of Stock in the Change in Control transaction. 

9. **COMPLIANCEWITH SECURITIES LAW.**

The grant of Options and the issuance of shares of Stock upon exercise of Options shall be subject to compliance with all applicable requirements offederal, state and foreign law with respect to such securities. Options may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law orregulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’slegal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have beenobtained. As a condition to the exercise of any Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make anyrepresentation or warranty with respect thereto as may be requested by the Company. 

10. **TERMINATIONORAMENDMENTOF PLAN.**

The Board may terminate or amend the Plan at anytime. However, without the approval of the Company’s stockholders, there shall be (a) no increase in the maximum aggregate number of shares of Stock that may be issued under the Plan (except by operation of the provisions ofSection 4.2), (b) no material change in the class of persons eligible to receive Options, and (c) no material change in the amount, timing or exercise price formula of automatic grants of Options pursuant to Section 6.1 above. Notermination or amendment of the Plan shall affect any then outstanding Option unless expressly provided by the Board. In any event, no termination or amendment of the Plan may adversely affect any then outstanding Option without the consent of theOptionee. 

 

10 

11. **MISCELLANEOUS PROVISIONS.**

11.1 **Provision of Information.** Each Optionee shall be given access to information concerning the Company equivalent to that information generallymade available to the Company’s common stockholders. 

11.2 **Fractional Shares.** The Company shall not be required to issuefractional shares upon the exercise of any Option. 

11.3 **Beneficiary Designation.**Each Optionee may file with the Company a writtendesignation of a beneficiary who is to receive any benefit under the Plan to which the Optionee is entitled in the event of such Optionee’s death before he or she receives any or all of such benefit. Each designation will revoke all priordesignations by the same Optionee, shall be in a form prescribed by the Company, and will be effective only when filed by the Optionee in writing with the Company during the Optionee’s lifetime. If a married Optionee designates a beneficiaryother than the Optionee’s spouse, the effectiveness of such designation shall be subject to the consent of the Optionee’s spouse. 

11.4 **Rights as a Stockholder.** An Optionee shall have no rights as a stockholder with respect to any shares covered by an Option until the date of the issuance of a certificate for such shares (as evidenced by the appropriate entry onthe books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as providedin Section 4.2 or another provision of the Plan. 

 

11