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Exhibit 10.29    
    


JAZZ SEMICONDUCTOR, INC.  


 
  2002 EQUITY INCENTIVE PLAN    
    


ADOPTED: JUNE 22, 2002

APPROVED BY STOCKHOLDERS: JUNE 22, 2002

TERMINATION DATE: JUNE 21, 2012  


1.     PURPOSES.  


        (a)    Eligible Stock Award Recipients.    The persons eligible to receive Stock Awards are the Employees, Directors
and Consultants of the Company and its Affiliates. 


        (b)    Available Stock Awards.    The purpose of the Plan is to provide a means by which eligible recipients of Stock
Awards may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Nonqualified Stock Options,
(ii) Incentive Stock Options, (iii) stock bonuses and (iv) rights to acquire restricted stock. 


        (c)    General Purpose.    The Company, by means of the Plan, seeks to retain the services of the group of persons
eligible to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and
its Affiliates. 


2.     DEFINITIONS.  


        (a)   "Affiliate" means, with respect to any Person, any other Person directly
or indirectly controlling, controlled by, or under common control with, such Person where "control" shall have the meaning given such term under Rule 405 of the Securities Act. For purposes of
this Plan, Affiliates of Carlyle Partners III, L.P. shall include all Persons directly or indirectly controlled by the Carlyle Group, L.L.C. 


        (b)   "Board" means the Board of Directors of the Company. 


        (c)   "Cause" means the termination of employment by reason of: 



        (i)    the Board's objective and factual determination that a Participant failed to substantially perform the Participant's duties (other
than any such
failure resulting from the Participant's Disability) which is not remedied within 30 days after receipt of written notice from the Company specifying such failure; 


         (ii)   the Board's determination that a Participant failed to carry out, or comply with, in any material respect any lawful and reasonable
directive of
the Board, which is not remedied within 30 days after receipt of written notice from the Company specifying such failure; 



        (iii) the Participant's conviction, plea of no contest, plea of nolo contendere, or imposition of
unadjudicated probation for any felony or crime involving moral turpitude; 


         (iv)  the Participant's unlawful use (including being under the influence) or possession of illegal drugs on the Company's premises or while
performing the Participant's duties and responsibilities; or 



        (v)   the Participant's commission of an act of fraud, embezzlement, misappropriation, willful misconduct, or breach of fiduciary duty against
the
Company. 




        (d)   "Code" means the Internal Revenue Code of 1986, as amended. 


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        (e)   "Committee" means a committee of one or more members of the Board
appointed by the Board in accordance with Section 3(c). 


        (f)    "Common Stock" means the common stock of the Company. 


        (g)   "Company" means Jazz Semiconductor, Inc., a Delaware corporation. 



        (h)   "Consultant" means any person, including an advisor, (i) engaged
by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or (ii) serving as a member of the Board of Directors of an Affiliate and who
is compensated for such services. However, the term "Consultant" shall not include Directors who are not compensated by the Company for their services as Directors, and the payment of a director's fee
by the Company for services as a Director shall not cause a Director to be considered a "Consultant" for purposes of the Plan. 



        (i)    "Continuous Service" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an
Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant's
service with the Company or an Affiliate, shall not terminate a Participant's Continuous Service. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or a
Director shall not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party's sole discretion, may determine whether Continuous Service
shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a leave of
absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in the Company's leave of absence policy or in the written terms of the
Participant's leave of absence, if any. 


        (j)    "Corporate Event" means as determined by the Committee (or by the Board,
as applicable) in its sole discretion, any transaction or event described in Section 11(a) or any unusual or nonrecurring transaction or event affecting the Company, any Affiliate of the
Company, or the financial statements of the Company or any Affiliate, or changes in applicable laws, regulations, or accounting principles. 


        (k)   "Director" means a member of the Board of Directors of the Company. 


        (l)    "Disability" means at any time the Company or any of its Affiliates
sponsors a long-term disability plan for the Company's Employees "disability" as defined in such long-term disability plan for the purpose of determining a participant's
eligibility for benefits, provided, however, if the long-term disability plan contains multiple definitions of disability, "Disability" shall refer to that definition of disability which,
if a Participant qualified for such disability benefits, would provide coverage for the longest period of time. The determination of whether a Participant has a Disability shall be made by the person
or persons required to make disability determinations under the long-term disability plan. At any time the Company does not sponsor a long-term disability plan for its
employees, Disability shall mean a Participant's inability to perform, with reasonable accommodation, the essential functions the Participant's position for a minimum of three (3) consecutive
months during any six (6) month period as a result of incapacity due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to the
Participant or the Participant's legal representative, such agreement as to acceptability not to be unreasonably withheld or delayed. Any refusal by a Participant to submit to a medical examination
for the purpose of determining Disability shall be deemed to constitute conclusive evidence of the Participant's Disability. 


        (m)  "Employee" means any person employed by the Company or an Affiliate.
Service as a Director or payment of a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or an Affiliate. 


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        (n)   "Entity" means a corporation, partnership or other entity. 


        (o)   "Exchange Act" means the Securities Exchange Act of 1934, as amended. 



        (p)   "Exchange Act Person" means any natural person, Entity or "group" (within
the meaning of Section 13(d) or 14(d) of the Exchange Act), except that "Exchange Act Person" shall not include (i) the Company or any Subsidiary of the Company; (ii) any employee
benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company;
(iii) an underwriter temporarily holding securities pursuant to an offering of such securities; or (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their Ownership of stock of the Company. 


        (q)   "Fair Market Value" means, as of any date, the value of the Common Stock
determined in good faith by the Board, and in a manner consistent with Section 260.140.50 of Title 10 of the California Code of Regulations. 


        (r)   "Incentive Stock Option" means an Option intended to qualify as an
Incentive Stock Option within the meaning of Section 422 of the Code and which is designated as an Incentive Stock Option by the Committee. 



        (s)   "Liquidity Event" shall mean the consummation of the sale, transfer,
conveyance or other disposition in one or a series of related transactions, of the equity securities of the Company or its successor held by the Principal Stockholder(s) in exchange for currency or
Marketable Securities such that immediately following such transaction (or transactions), the value (at original cost) of [all equity securities held by all of the Principal
Stockholder(s)] is in the aggregate less than 20% of the equity securities (at original cost) held by the Principal Stockholder(s) as of [February 23, 2002]. 



        (t)    "Marketable Securities" means securities of a class of securities listed
for trading on a "national securities exchange" (as defined in Section 6(b) of the Exchange Act) or which are listed for quotation on the NASDAQ National Market System or any successor
quotation system which are not subject to volume or manner of sale limitations under Rule 144 of the Securities Act. 


        (u)   "Nonqualified Stock Option" means an Option not intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder or an Option, which is designated as an Incentive Stock Option by the Committee,
that fails to qualify as an incentive stock option under the meaning of Section 422 of the Code. 


        (v)   "Officer" means any person designated by the Company as an officer. 


        (w)  "Option" means an Incentive Stock Option or a Nonqualified Stock Option
granted pursuant to the Plan. 


        (x)   "Option Agreement" means a written agreement between the Company and an
Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 


        (y)   "Optionholder" means a person to whom an Option is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Option. 


        (z)   "Own," "Owned," "Owner," "Ownership" A person or Entity shall be deemed
to "Own," to have "Owned," to be the "Owner" of, or to have acquired "Ownership" of securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 


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        (aa) "Parent" means any corporation, whether now or hereafter existing (other
than the Company), in an unbroken chain of corporations ending with the Company if each of the corporations other than the last corporation in the unbroken chain owns stock possessing more than fifty
percent of the total combined voting power of all classes of stock in one of the other corporations in such chain. 


        (bb) "Participant" means a person to whom a Stock Award is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 


        (cc) "Person" means an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature. 


        (dd) "Plan" means this Jazz Semiconductor, Inc., 2002 Equity Incentive
Plan. 


        (ee) "Principal Stockholder" means (i) Carlyle Partners III, L.P. or
any of its Affiliates to which (a) Carlyle Partners III, L.P. or any other Person transfers Common Stock, or (b) the Company issues Common Stock; and (ii) Conexant
Systems, Inc. or any of its Affiliates to which (a) Conexant Systems, Inc. or any other Person transfers Common Stock, or (b) the Company issues Common Stock. 


        (ff)  "Securities Act" means the Securities Act of 1933, as amended. 



        (gg) "Stock Award" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock. 


        (hh) "Stock Award Agreement" means a written agreement between the Company
and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 



        (ii)   "Stockholders Agreement" shall mean that certain agreement by and
between the Optionholder and the Company which contains certain restrictions and limitations applicable to the shares of Common Stock acquired upon Option exercise (and to other shares of Common
Stock, if any, held by the Optionholder during the term of such agreement). The Board, in its discretion, shall determine the terms of the Stockholders Agreement and may amend the terms thereof from
time to time. If the Optionholder is not a party to a Stockholders Agreement at the time of exercise of the Option (or any portion thereof), the exercise of the Option shall be subject to the
condition that the Optionholder enter into a Stockholders Agreement with the Company. 


        (jj)  "Subsidiary" means any corporation in an unbroken chain of corporations
beginning with such entity if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. 


        (kk) "Ten Percent Stockholder" means a Person who Owns (or is deemed to Own
pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Affiliates. 


3.     ADMINISTRATION.  


        (a)    Administration by Board.    The Board shall administer the Plan unless and until the Board delegates
administration to a Committee, as provided in Section 3(c). 


        (b)    Powers of Board.    The Board (or the Committee, as applicable) shall have the power, subject to, and within
the limitations of, the express provisions of the Plan: 



         (i)    To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how each Stock
Award shall be
granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted 



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(which
need not be identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock Award; and the number of shares of Common Stock with respect to
which a Stock Award shall be granted to each such person. 


         (ii)   To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its
administration. The Board (or the Committee, as applicable), in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner
and to the extent it shall deem necessary or expedient to make the Plan fully effective. 


         (iii) To amend the Plan, a Stock Award or Stock Award Agreement as provided in Section 12. 


         (iv)  To terminate or suspend the Plan as provided in Section 13. 



        (v)   Generally, to exercise such powers and to perform such acts as the Board (or the Committee, as applicable) deems necessary or expedient to
promote the best interests of the Company and that are not in conflict with the provisions of the Plan. 




        (c)    Delegation to Committee.    The Board may delegate administration of the Plan to a Committee or Committees of
one (1) or more members of the Board, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the
Committee shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board
shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the administration of the Plan. 


        (d)    Delegation to an Officer.    The Board (or the Committee, as applicable) may delegate to one or more Officers
of the Company the authority to do one or both of the following: (i) designate Employees, of the Company or any of its Subsidiaries who are not Officers to be recipients of Stock Awards; and
(ii) determine the number of shares of Common Stock to be subject to such Stock Awards granted to such Employees of the Company; provided,
however, that the Board resolutions regarding such delegation shall specify the total number of shares of Common Stock that may be subject to the Stock Awards granted by such
Officer and that such Officer may not grant a Stock Award to himself or herself. Notwithstanding the foregoing, the Board may not delegate authority to an Officer to determine the Fair Market Value of
the Common Stock. 


        (e)    Review of Decision.    All determinations, interpretations and constructions made by the Board (or the
Committee, as applicable) in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 


4.     SHARES SUBJECT TO THE PLAN.  


        (a)    Share Reserve.    Subject to the provisions of Section 11(a) relating to adjustments upon changes in
stock, the Common Stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate seventeen million six hundred forty-seven thousand (17,647,000) shares of Common Stock. 


        (b)    Reversion of Shares to the Share Reserve.    If any Stock Award shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full, the shares of Common Stock not acquired under such Stock Award shall revert to and again become available for issuance under the
Plan. 


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        (c)    Source of Shares.    The shares of Common Stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise. 


        (d)    Share Reserve Limitation.    To the extent required by Section 260.140.45 of Title 10 of the California
Code of Regulations, the total number of shares of Common Stock issuable upon exercise of all outstanding Options and the total number of shares of Common Stock provided for under any stock bonus or
similar plan of the Company shall not exceed the applicable percentage as calculated in accordance with the conditions and exclusions of Section 260.140.45 of Title 10 of the California Code of
Regulations, based on the shares of Common Stock of the Company that are outstanding at the time the calculation is made. 


5.     ELIGIBILITY.  


        (a)    Eligibility for Specific Stock Awards.    Stock Awards may be granted to Employees, Directors and Consultants.
Incentive Stock Options may be granted only to Employees. 


        (b)    Ten Percent Stockholders.    



         (i)    A Ten Percent Stockholder shall not be granted an Option unless the exercise price of such Option is at least (i) one hundred
ten percent
(110%) of the Fair Market Value of the Common Stock on the date of grant or (ii) in the case of a Nonqualified Stock Option, such lower percentage of the Fair Market Value of the Common Stock
on the date of grant as is permitted by Section 260.140.41 of Title 10 of the California Code of Regulations at the time of the grant of the Option. 



        (ii)   A Ten Percent Stockholder shall not be granted a restricted stock award unless the purchase price of the restricted stock is at least
(i) one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of grant or (ii) such lower percentage of the Fair Market Value of the Common Stock on the date of
grant as is permitted by Section 260.140.42 of Title 10 of the California Code of Regulations at the time of the grant of the restricted stock award. 




        (c)    Limitation on Incentive Stock Options.    To the extent that the aggregate Fair Market Value of Common Stock
subject to an Optionholder's Incentive Stock Option and other incentive stock options granted by the Company, any Parent or Subsidiary, which become exercisable for the first time during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options or other options shall be treated as Nonqualified Stock Options. For purposes of this
Section 7, Incentive Stock Option shall be taken into account in the order in which they were granted, and the Fair Market Value of the Common Stock shall be determined as of the time of grant. 


        (d)    Consultants.    A Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant,
either the offer or the sale of the Company's securities to such Consultant is not exempt under Rule 701 of the Securities Act ("Rule 701") because of the nature of the services that the
Consultant is providing to the Company, because the Consultant is not a natural person, or because of some other provision of Rule 701, unless the Company determines that such grant need not
comply with the requirements of Rule 701 and will satisfy another exemption under the Securities Act as well as comply with the securities laws of all other relevant jurisdictions. 


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6.     GRANTING OPTIONS.  


        (a)   Granting of Options to Employees or Consultants. 



         (i)    The Committee shall from time to time: 



        (1)   Select from among the Employees or Consultants (including those to whom Options have been previously granted under the Plan) such of them
as in
its opinion should be granted Options; 


         (2)   Determine the type of Option granted to Employees; 


         (3)   Determine the number of shares to be subject to such Options granted to such Employees or Consultants; and 



        (4)   Determine the terms and conditions of such Options, consistent with the Plan; provided, however, that all Options granted to Consultants
shall be
Nonqualified Stock Options. 




         (ii)   Upon the selection of an Employee or Consultants to be granted an Option pursuant to Section 6(a), the Committee shall instruct the
Secretary to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting the generality of the preceding sentence, the Committee may require
as a condition to the grant of an Option to an Employee or Consultant that the Employee or Consultant surrender for cancellation some or all of the unexercised Options which have been previously
granted to him or her. An Option the grant of which is conditioned upon such surrender may have an Option price lower (or higher) than the Option price of the surrendered Option, may cover the same
(or a lesser or greater) number of shares as the surrendered Option, may contain such other terms as the Committee deems appropriate and shall be exercisable in accordance with its terms, without
regard to the number of shares, price, period of exercisability or any other term or condition of the surrendered Option. 




        (b)   Granting of Option to Independent Directors. 



         (i)    The Board shall from time to time: 



         (1)   Select from among the Independent Directors (including those to whom Options have previously been granted under the Plan) such of them as
in its
opinion should be granted Options; 


        (2)   Determine the number of shares to be subject to such Options granted to such selected Independent Directors; and 


         (3)   Determine the terms and conditions of such Options, consistent with the Plan; provided, however, that all Options granted to Independent
Directors shall be Nonqualified Stock Options. 





        (c)   Upon the selection of an Independent Director to be granted an Option pursuant to Section 6(b), the Board shall
instruct the Secretary to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting the generality of the preceding sentence, the Board may
require as a condition to the grant of an Option to an Independent Director that the Independent Director surrender for cancellation some or all of the unexercised Options which have been previously
granted to him or her. An Option the grant of which is conditioned upon such surrender may have an Option price lower (or higher) than the Option price of the surrendered Option, may cover the same
(or a lesser or greater) number of shares as the surrendered Option, may contain such other terms as the Board deems appropriate and shall be exercisable in accordance with its terms, without regard
to the number of shares, price, period of exercisability or any other term or condition of the surrendered Option. 


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7.     OPTION PROVISIONS.  


        Each Option shall be evidenced by a written Option Agreement which shall contain such terms and conditions as the Board shall deem appropriate. The provisions of
separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following
provisions: 



        (a)    Term.    The term of an Option shall be ten years from the earlier of the date the Plan is adopted or the date
the Plan is approved by the stockholders, unless a shorter term is determined by the Board (or the Committee, as applicable) at the time of grant of the Option or as the Option may be amended. In the
case of an Incentive Stock Option granted to a Ten Percent Stockholder, the term of the Option shall be five (5) years from the date of grant or such shorter term as may be provided in the
Option Agreement. 


        (b)    Exercise Price of an Option.    



         (i)    Subject to the provisions of Section 5(b) regarding Ten Percent Stockholders, the exercise price of each Option shall be not
less than
eighty-five percent (85%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. 



        (ii)   In the case of an Incentive Stock Option, the per share exercise price of Common Stock shall be no less than one hundred percent (100%)
of the
Fair Market Value per share on the date of grant. 


         (iii) Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 




        (c)    Consideration.    The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the
extent permitted by applicable statutes and regulations, either (i) in cash at the time the Option is exercised or (ii) at the discretion of the Board at the time of the grant of the
Option or subsequently, (1) by delivery to the Company of other Common Stock, (2) according to a deferred payment or other similar arrangement with the Optionholder or (3) in any
other form of legal consideration that may be acceptable to the Board (or the Committee, as applicable). Unless otherwise specifically provided in the Option, the purchase price of Common Stock
acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the
Company that have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). At any time that
the Company is incorporated in Delaware, payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 


        In
the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the minimum rate of interest necessary to avoid (1) the
treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement and (2) the treatment of the
Option as a variable award for financial accounting purposes. 


        (d)    Transferability of an Option.    No Option or interest or right therein or part thereof shall be liable for the
debts, contracts or engagements of the Optionholder or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or
any other means whether such disposition be voluntary or involuntary or by operation of law, by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including
bankruptcy), and any attempted disposition thereof shall be null and void 



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and
of no effect; provided however, an Option shall be transferable by will or by the laws of descent and distribution and, to the extent provided in the Option Agreement, to such further extent as
permitted by Section 260.140.41(d) of Title 10 of the California Code of Regulations at the time of the grant of the Option, and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the
event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 


        (e)    Vesting Generally.    The total number of shares of Common Stock subject to an Option may, but need not, vest
and therefore become exercisable in periodic installments that may, but need not, be equal.
The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The
vesting provisions of individual Options may vary. The provisions of this Section 7(e) are subject to any Option provisions governing the minimum number of shares of Common Stock as to which an
Option may be exercised. Except as otherwise provided in the Option Agreement, no portion of an Option which is exercisable at termination of Continuous Services shall thereafter become exercisable. 


        (f)    Minimum Vesting.    Notwithstanding the foregoing Section 7(e), to the extent that the following
restrictions on vesting are required by Section 260.140.41(f) of Title 10 of the California Code of Regulations at the time of the grant of the Option, then: 



        (i)    Options granted to an Employee who is not an Officer, Director or Consultant shall provide for vesting of the total number of shares
of Common
Stock at a rate of at least twenty percent (20%) per year over five (5) years from the date the Option was granted, subject to reasonable conditions such as continued employment; and 


         (ii)   Options granted to Officers, Directors or Consultants may be made fully exercisable, subject to reasonable conditions such as continued
employment, at any time or during any period established by the Company. 




        (g)    Termination of Continuous Service.    In the event that an Optionholder's Continuous Service terminates (for
reasons other than Cause or upon the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as
of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder's Continuous Service
(or such longer or shorter period specified in the Option Agreement, which period shall not be less than thirty (30) days unless such termination is for Cause), or (ii) the expiration of
the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option
shall terminate. 


        (h)    Extension of Termination Date.    An Optionholder's Option Agreement may also provide that if the exercise of
the Option following the termination of the Optionholder's Continuous Service (for reasons other than Cause or upon the Optionholder's death or Disability) would be prohibited at any time solely
because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the
term of the Option set forth in Section 7(a) or (ii) the expiration of a period of three (3) months after the termination of the Optionholder's Continuous Service during which the
exercise of the Option would not be in violation of such registration requirements. 


        (i)    Disability of Optionholder.    In the event that an Optionholder's Continuous Service terminates as a result of
the Optionholder's Disability, the Optionholder may exercise his or her 



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Option
(to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (i) the date six
(6) months following such termination (or such longer or shorter period specified in the Option Agreement, which period shall not be less than six (6) months) or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option
shall terminate. 


        (j)    Death of Optionholder.    In the event that (i) an Optionholder's Continuous Service terminates as a
result of the Optionholder's death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder's Continuous Service for
a reason other than death, then the Option may be exercised by the Optionholder's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionholder's death pursuant to Section 7(d) (even if the Optionholder dies before becoming entitled to exercise all or any part of the shares subject to the
Option), but only within the period ending on the earlier of (1) the date three (3) years following the date of death (or such longer or shorter period specified in the Option Agreement,
which period shall not be less than six (6) months) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate. 


        (k)    Termination for Cause.    In the event an Optionholder's Continuous Service is terminated for Cause, the Option
shall terminate upon the termination date of such Optionholder's Continuous Service and the Optionholder is prohibited from exercising his or her Option as of the time of such termination. 



        (l)    Conditions to Issuance of Stock Certificates.    The shares of stock issuable and deliverable upon the exercise
of an Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares which have then been reacquired by the Company. A certificate of shares will be delivered
to the Optionholder at the Company's principal place of business within thirty (30) days of receipt by the Company of the written notice and payment, unless an earlier date is agreed upon.
Notwithstanding the above, the Company shall not be required to issue or deliver any certificate or certificates for shares of stock purchased upon the exercise of any Option or portion thereof prior
to fulfillment of all of the following conditions: 



         (i)    The admission of such shares to listing on any and all stock exchanges on which such class of stock is then listed; 


         (ii)   The completion of any registration or other qualification of such shares under any state or federal law or under the rulings or
regulations of
the Securities and Exchange Commission or any other governmental regulatory body, which the Committee (or the Board, in the case of Options granted to Independent Directors) shall, in its sole
discretion, deem necessary or advisable; 


         (iii) The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee (or the Board, in the case
of Options granted to Independent Directors) shall, in its sole discretion, determine to be necessary or advisable; and 



        (iv)  The payment to the Company of all amounts which it is required to withhold under federal, state or local law in connection with the exercise of
the Option. 




        (m)    Rights as Stockholders.    The holder of an Option shall not be, nor have any of the rights or privileges of, a
stockholder of the Company in respect of any shares purchasable upon the exercise of any part of an Option unless and until such holder has signed a Stockholders 



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Agreement
and certificates representing such shares have been issued by the Company to such holder. 


        (n)    Transfer Restrictions.    Shares acquired upon exercise of an Option shall be subject to the terms and
conditions of a Stockholders Agreement. In addition, the Committee (or the Board, in the case of Options granted to Independent Directors), in its sole discretion, may impose further restrictions on
the transferability of the shares purchasable upon the exercise of an Option as it deems appropriate. Any such restriction shall be set forth in the respective Option agreement and may be referred to
on the certificates evidencing such shares. 




8.     PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.  


        (a)    Stock Bonus Awards.    Each stock bonus agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need
not be identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions: 



        (i)    Consideration.    A stock bonus may be awarded in consideration for past services actually rendered to the
Company or an Affiliate for its benefit. 


        (ii)    Vesting.    Subject to the "Repurchase Limitation" in Section 10(g), shares of Common Stock awarded
under the stock bonus agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 


        (iii)    Termination of Participant's Continuous Service.    Subject to the "Repurchase Limitation" in
Section 10(g), in the event that a Participant's Continuous Service terminates, the Company may reacquire any or all of the shares of Common Stock held by the Participant that have not vested
as of the date of termination under the terms of the stock bonus agreement. 


        (iv)    Transferability.    Rights to acquire shares of Common Stock under the stock bonus agreement shall not be
transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. 




        (b)    Restricted Stock Awards.    Each restricted stock purchase agreement shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of
separate restricted stock purchase agreements need not be identical, but each restricted stock purchase agreement shall include (through incorporation of provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions: 



        (i)    Purchase Price.    Subject to the provisions of Section 5(b) regarding Ten Percent Stockholders, the
purchase price of restricted stock awards shall not be less than eighty-five percent (85%) of the Common Stock's Fair Market Value on the date such award is made or at the time the
purchase is consummated. 


        (ii)    Consideration.    The purchase price of Common Stock acquired pursuant to the restricted stock purchase
agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the
Participant; or (iii) in any other form of legal consideration that may be acceptable to the Board (or the Committee, as applicable) in its discretion; provided,
however, that at any time that the Company is incorporated in Delaware, then payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law,
shall not be made by deferred payment. 



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        (iii)    Vesting.    Subject to the "Repurchase Limitation" in Section 10(g), shares of Common Stock acquired
under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 


        (iv)    Termination of Participant's Continuous Service.    Subject to the "Repurchase Limitation" in
Section 10(g), in the event that a Participant's Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the
Participant that have not vested as of the date of termination under the terms of the restricted stock purchase agreement. 



        (v)    Transferability.    Rights to acquire shares of Common Stock under the restricted stock purchase agreement
shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant. 




9.     USE OF PROCEEDS FROM STOCK.  



        Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 


10.   MISCELLANEOUS.  


        (a)    Acceleration of Exercisability and Vesting.    The Board shall have the power to accelerate the time at which a
Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time
at which it may first be exercised or the time during which it will vest. 



        (b)    Stockholder Rights.    No Participant shall be deemed to be the holder of, or to have any of the rights of a
holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 


        (c)    No Employment or other Service Rights.    Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the
right of the Company or an Affiliate to terminate (i) the employment of an Employee with or
without notice and with or without Cause, (ii) the service of a Consultant pursuant to the terms of such Consultant's agreement with the Company or an Affiliate or (iii) the service of a
Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may
be. 


        (d)    Investment Assurances.    The Company may require a Participant, as a condition of exercising or acquiring
Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant's knowledge and experience in financial and business matters and/or to
employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or
together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is
acquiring Common Stock subject to the Stock Award for the Participant's own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing
requirements, and any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock
under the Stock Award has been registered under a then currently effective registration statement under the Securities Act or (2) as to any particular requirement, a determination is made by
counsel for the 


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Company
that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of
the Common Stock. 


        (e)    Withholding Obligations.    To the extent provided by the terms of a Stock Award Agreement, the Participant may
satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the Company's
right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold
shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Stock Award;  provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such
lower amount as may be necessary to avoid variable award accounting); or (iii) delivering to the Company owned and unencumbered shares of Common Stock. 


        (f)    Information Obligation.    To the extent required by Section 260.140.46 of Title 10 of the California
Code of Regulations, the Company shall deliver financial statements to Participants at least annually. This Section 10(f) shall not apply to key Employees whose duties in connection with the
Company assure them access to equivalent information. 


        (g)    Repurchase Limitation.    The terms of any repurchase option shall be specified in the Stock Award and may be
either at Fair Market Value at the time of repurchase or at not less than the original
purchase price. To the extent required by Section 260.140.41 and Section 260.140.42 of Title 10 of the California Code of Regulations at the time a Stock Award is made, any repurchase
option contained in a Stock Award granted to a person who is not an Officer, Director or Consultant shall be upon the terms described below: 



        (i)    Fair Market Value.    If the repurchase option gives the Company the right to repurchase the shares of Common
Stock upon termination of employment at not less than the Fair Market Value of the shares of Common Stock to be purchased on the date of termination of Continuous Service, then (i) the right to
repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares of Common Stock within ninety (90) days of termination of Continuous Service (or in the case
of shares of Common Stock issued upon exercise of Stock Awards after such date of termination, within ninety (90) days after the date of the exercise) or such longer period as may be agreed to
by the Company and the Participant (for example, for purposes of satisfying the requirements of Section 1202(c)(3) of the Code regarding "qualified small business stock") and (ii) the
right terminates when the shares of Common Stock become publicly traded. 


        (ii)    Original Purchase Price.    If the repurchase option gives the Company the right to repurchase the shares of
Common Stock upon termination of Continuous Service at the original purchase price, then (i) the right to repurchase at the original purchase price shall lapse at the rate of at least twenty
percent (20%) of the shares of Common Stock per year over five (5) years from the date the Stock Award is granted (without respect to the date the Stock Award was exercised or became
exercisable) and (ii) the right to repurchase shall be exercised for cash or cancellation of purchase money indebtedness for the shares of Common Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock issued upon exercise of Options after such date of termination, within ninety (90) days after the date of the
exercise) or such longer period as may be agreed to by the Company and the Participant (for example, for purposes of satisfying the requirements of Section 1202(c)(3) of the Code regarding
"qualified small business stock"). 



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        (h)    No Impairment of Rights.    Amendment, suspension or termination of the Plan shall not impair rights and
obligations under any Stock Award granted while the Plan is in effect except with the written consent of the Participant. 


11.   ADJUSTMENTS UPON CHANGES IN STOCK.  


        (a)    Changes in Common Stock; Disposition of Assets and Corporate Events.    



         (i)    In the event that the Board (or the Committee, as applicable) determines that any dividend or other distribution (whether in the
form of cash,
Common Stock, other securities, or other property), recapitalization, reclassification, stock split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company (including, but not
limited to, a Liquidity Event), or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or
other similar corporate transaction or event, in the Committee's sole discretion (or in the case of Options granted to Independent Directors, the Board's sole discretion), affects the Common Stock
such that an adjustment is determined by the Board (or the Committee, as applicable) to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan or with respect to an Option, then the Board (or the Committee, as applicable) shall, in such manner as it may deem equitable, adjust any or all of: 



         (1)   The number and kind of shares of Common Stock (or other securities or property) with respect to which Options may be granted under the
Plan
(including, but not limited to, adjustments of the limitations in Section 4 on the maximum number and kind of shares which may be issued); 


         (2)   The number and kind of shares of Common Stock (or other securities or property) subject to outstanding Options; 



        (3)   The exercise price with respect to any Option; and 


         (4)   The financial or other "targets" specified in each Option agreement for determining the exercisability of Options. 




         (ii)   Subject to the terms of outstanding Options, upon the occurrence of a Corporate Event, the Board (or the Committee, as applicable), in
its sole
discretion, is hereby authorized to take any one or more of the following actions whenever the Board (or the Committee, as applicable) determines that such action is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any Option under this Plan, to facilitate such Corporate Event or to give
effect to such changes in laws, regulations or principles: 



         (1)   In its sole discretion, and on such terms and conditions as it deems appropriate, the Board (or the Committee, as applicable) may provide,
 either
by the terms of the applicable Option agreement or by action taken prior to the occurrence of such Corporate Event and either automatically or upon the Optionholder's request, for either the purchase
of any such Option for an amount of cash equal to the amount that could have been attained upon the exercise of the vested portion of such Option (and such additional portion of the Option as the
Board or Committee may determine) immediately prior to the occurrence of such transaction or event, or the replacement of such vested (and other) portion of such Option with other rights or property
selected by the Board (or the Committee, as applicable) in its sole discretion; 




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         (2)   In its sole discretion, the Board (or the Committee, as applicable) may provide, either by the terms of the applicable Option agreement
or by
action taken prior to the occurrence of such Corporate Event, that the Option (or any portion thereof) cannot be exercised after such event; 


         (3)   In its sole discretion, and on such terms and conditions as it deems appropriate, the Board (or the Committee, as applicable) may provide,
 either
by the terms of the applicable Option agreement or by action taken prior to the occurrence of such Corporate Event, that for a specified period of time prior to such Corporate Event, such Option shall
be exercisable as to all shares covered thereby or a specified portion of such shares, notwithstanding anything to the contrary in (A) Section 7; or (B) the provisions of the
applicable Option agreement; 


        (4)   In its sole discretion, and on such terms and conditions as it deems appropriate, the Board (or the Committee, as applicable) may provide,
either
by the terms of the applicable Option agreement or by action taken prior to the occurrence of such Corporate Event, that upon such event, such Option (or any portion thereof) be assumed by the
successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a
parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices; 



        (5)   In its sole discretion, and on such terms and conditions as it deems appropriate, the Board (or the Committee, as applicable) may make
adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Options (or any portion thereof) and/or in the terms and conditions of (including
the exercise price), and the criteria included in, outstanding Options and Options which may be granted in the future; and 




         (iii) Subject to the Board (or the Committee, as applicable) may, in its sole discretion, include such further provisions and limitations in any
Option agreement as it may deem equitable and in the best interests of the Company and its Subsidiaries. 




12.   AMENDMENT OF THE PLAN AND STOCK AWARDS.  


        (a)    Amendment of Plan.    The Plan may be wholly or partially amended or otherwise modified, suspended or
terminated at any time or from time to time by the Board or the Committee. However, without stockholder approval within twelve (12) months before or after such action no action of the Board or
the Committee may, except as provided in Section 11, increase any limit imposed in Section 4 on the maximum number of shares which may be issued on exercise of Options, reduce the
minimum Option price requirements of Section 7(b), or extend the limit imposed in this Section 12 on the period during which options may be granted. Except as provided by
Section 11, neither the amendment, suspension nor termination of the Plan shall, without the consent of the holder of the Option, alter or impair any rights or obligations under any Option
theretofore granted. No Option may be granted during any period of suspension nor after termination of the Plan, and in no event may any Option be granted under this Plan after the expiration of ten
(10) years from the date the Plan is adopted by the Board. 


        (b)    Stockholder Approval.    This Plan will be submitted for the approval of the Company's stockholders within
twelve (12) months after the date of the Board's initial adoption of this Plan and the Plan and the Options granted hereunder will be effective upon approval by such stockholders as
contemplated by Section 280G(b)(5)(A)(ii) of the Code and regulations thereunder as if a "change in control" occurred immediately following such approval. No Option may be exercised to
any extent by anyone unless and until the Plan is so approved by the stockholders, and if such approval has not been 


15





 



obtained
by the end of said twelve-month period, the Plan and all Options theretofore granted shall thereupon be canceled and become null and void. 


        (c)    Amendment of Stock Awards.    The Board at any time, and from time to time, may amend the terms of any one or
more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company
requests the consent of the Participant and (ii) the Participant consents in writing. 


13.   TERMINATION OR SUSPENSION OF THE PLAN.  


        (a)    Plan Term.    The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall
terminate on the day before the tenth (10th) anniversary of the date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated. 


14.   EFFECTIVE DATE OF PLAN.  


        The Plan shall become effective as determined by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be granted) unless and
until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 



15.   CHOICE OF LAW.  


        The law of the State of California shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such
state's conflict of laws rules. 


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QuickLinks



Exhibit 10.29


2002 EQUITY INCENTIVE PLAN