Document:

Exhibit
10.3

 

PAYMENT
GUARANTY

made by

BEHRINGER
HARVARD OPPORTUNITY REIT I, INC.,  

as guarantor,

in favor of

CITIGROUP
GLOBAL MARKETS REALTY CORP.

Dated as of May 2,
2007

 

PAYMENT GUARANTY

This GUARANTY (this “Guaranty”), dated as of May 2, 2007,
made by BEHRINGER HARVARD OPPORTUNITY REIT I,
INC., a Maryland corporation  (“Behringer REIT”), having an address
at Behringer Harvard Holdings, LLC, 15601 Dallas Parkway, Suite 600, Addison,
Texas 75001, (“Guarantor”), in favor of CITIGROUP GLOBAL MARKETS
REALTY CORP., a New York corporation (together with its successors
and assigns, hereinafter referred to as “Lender”),
having an address at 388 Greenwich Street, Floor 11, New York, New York  10013.

R  E  C  I
T  A  L  S:

A.                       Pursuant
to that certain Promissory Note dated as of the date hereof (as the same may be
amended, modified, supplemented or replaced from time to time, the “Note”) between BEHRINGER HARVARD SANTA CLARA LP  (“Borrower”) and
Lender, Lender has agreed to make a loan (the “Loan”)
to Borrower in the maximum principal amount of up to $52,115,000.00 or so much
thereof as may be advanced from time to time;

B.                         As
a condition to Lender’s making the Loan, Lender is requiring that Guarantor
execute and deliver to Lender this Guaranty; and

C.                         Guarantor
hereby acknowledges that it will materially benefit from Lender’s agreeing to
make the Loan;

NOW, THEREFORE, in consideration
of the premises set forth herein and as an inducement for and in consideration
of the agreement of Lender to make the Loan pursuant to the Note, Guarantor
hereby agrees, covenants, represents and warrants to Lender as follows:

1.                            Definitions.

(a)                             All capitalized terms used
and not defined herein shall have the respective meanings given such terms in
the Note.

(b)                            The term “Guaranteed Obligations”
means (i) the repayment of the Debt (as defined in the Note) and (ii) all of
Borrower’s obligations under the Note and the Fee Letter (as defined in the
Note).

2.                           Guaranty.

(a)                             Guarantor hereby
irrevocably, absolutely and unconditionally guarantees to Lender the full,
prompt and complete payment when due of the Guaranteed Obligations.

(b)                            All sums payable to Lender
under this Guaranty shall be payable on demand and without reduction for any
offset, claim, counterclaim or defense.

(c)                             Guarantor hereby agrees to
indemnify, defend and save harmless Lender from and against any and all costs,
losses, liabilities, claims, causes of action, expenses 

and damages, including reasonable attorneys’ fees and disbursements,
which Lender may suffer or which otherwise may arise by reason of Borrower’s
failure to pay any of the Guaranteed Obligations when due, irrespective of
whether such costs, losses, liabilities, claims, causes of action, expenses or
damages are incurred by Lender prior or subsequent to Lender’s declaring the
Principal, interest and other sums evidenced by the Note or the Fee Letter to
be due and payable.

3.                           Representations and Warranties.  Guarantor hereby represents and warrants (as
to itself) to Lender as follows (which representations and warranties shall be
given as of the date hereof and shall survive the execution and delivery of
this Guaranty):

(a)                             Organization, Authority and Execution.  Behringer REIT is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Maryland, and has all necessary power and authority to own its properties and
to conduct its business as presently conducted or proposed to be conducted and
to enter into and perform this Guaranty and all other agreements and
instruments to be executed by it in connection herewith.  This Guaranty has been duly executed and
delivered by Guarantor.

(b)                            Enforceability.  This
Guaranty constitutes a legal, valid and binding obligation of Guarantor,
enforceable against Guarantor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally or general principles of equity.

(c)                             No Violation.  The
execution, delivery and performance by 
Guarantor of its obligations under this Guaranty has been duly
authorized by all necessary action, and do not and will not violate any law,
regulation, order, writ, injunction or decree of any court or governmental
body, agency or other instrumentality applicable to Guarantor, or result in a
breach of any of the terms, conditions or provisions of, or constitute a
default under, or result in the creation or imposition of any mortgage, lien,
charge or encumbrance of any nature whatsoever upon any of the assets of
Guarantor pursuant to the terms of Guarantor’s articles of organization, or any
mortgage, indenture, agreement or instrument to which Guarantor is a party or
by which it or any of its properties is bound. 
Guarantor is not default under any other guaranty which it has provided
to Lender.

(d)                            No Litigation.  There
are no actions, suits or proceedings at law or at equity, pending or, to
Guarantor’s best knowledge, threatened against or affecting Guarantor or which
involve or might involve the validity or enforceability of this Guaranty or
which might materially adversely affect the financial condition of Guarantor or
the ability of Guarantor to perform any of its obligations under this
Guaranty.  Guarantor is not in default
beyond any applicable grace or cure period with respect to any order, writ,
injunction, decree or demand of any Governmental Authority which might
materially adversely affect the financial condition of Guarantor or the ability
of Guarantor to perform any of its obligations under this Guaranty.

(e)                             Consents.  All consents,
approvals, orders or authorizations of, or registrations, declarations or
filings with, all Governmental Authorities (collectively, the “Consents”) that
are required in connection with the valid execution, delivery and performance 

 2
 

by Guarantor of this Guaranty have been obtained and Guarantor agrees
that all Consents required in connection with the carrying out or performance
of any of Guarantor’s obligations under this Guaranty will be obtained when
required.

(f)                               Financial Statements and Other Information.  All financial statements of Guarantor
heretofore delivered to Lender are true and correct in all material respects
and fairly present the financial condition of Guarantor as of the respective
dates thereof, and no materially adverse change has occurred in the financial
conditions reflected therein since the respective dates thereof.  None of the aforesaid financial statements or
any certificate or statement furnished to Lender by or on behalf of Guarantor
in connection with the transactions contemplated hereby, and none of the
representations and warranties in this Guaranty contains any untrue statement
of a material fact or omits to state a material fact necessary in order to make
the statements contained therein or herein not misleading.  Guarantor is not insolvent within the meaning
of the United States Bankruptcy Code or any other applicable law, code or
regulation and the execution, delivery and performance of this Guaranty will
not render Guarantor insolvent.

(g)                            Consideration. 
Guarantor is the owner, directly or indirectly, of legal and beneficial
equity interests in Borrower, and as such will materially benefit from the
making of the Loan.

4.                           Reserved

5.                           Unconditional Character of Obligations of Guarantor.

(a)                             The obligations of
Guarantor hereunder shall be irrevocable, absolute and unconditional,
irrespective of the validity, regularity or enforceability, in whole or in
part, of the Note or Fee Letter or any provision thereof, or the absence of any
action to enforce the same, any waiver or consent with respect to any provision
thereof, the recovery of any judgment against Borrower, Guarantor or any other
Person or any action to enforce the same, any failure or delay in the
enforcement of the obligations of Borrower under the Note or the Fee Letter or
Guarantor under this Guaranty, or any setoff, counterclaim, and irrespective of
any other circumstances which might otherwise limit recourse against Guarantor
by Lender or constitute a legal or equitable discharge or defense of a
guarantor or surety.  Lender may enforce
the obligations of Guarantor under this Guaranty by a proceeding at law, in
equity or otherwise, independent of any loan foreclosure or similar proceeding
or any deficiency action against Borrower or any other Person at any time,
either before or after an action against the Property or any part thereof,
Borrower or any other Person.  This Guaranty is a guaranty of payment and performance
and not merely a guaranty of collection.  Guarantor waives diligence, notice of
acceptance of this Guaranty, filing of claims with any court, any proceeding to
enforce any provision of any other Loan Document, against Guarantor, Borrower
or any other Person, any right to require a proceeding first against Borrower
or any other Person, or to exhaust any security (including, without limitation,
the Property) for the performance of the Guaranteed Obligations or any other obligations
of Borrower or any other Person, or any protest, presentment, notice of default
or other notice or demand whatsoever (except to the extent expressly provided
to the contrary in this Guaranty).

 3
 

(b)                            The obligations of
Guarantor under this Guaranty, and the rights of Lender to enforce the same by
proceedings, whether by action at law, suit in equity or otherwise, shall not
be in any way affected by any of the following:

(i)                            any
insolvency, bankruptcy, liquidation, reorganization, readjustment, composition,
dissolution, receivership, conservatorship, winding up or other similar
proceeding involving or affecting Borrower, the Property (as defined in the
Note) or any part thereof, Guarantor or any other Person;

(ii)                         any
failure by Lender or any other Person, whether or not without fault on its
part, to perform or comply with any of the terms of the Note or Fee Letter, or
any document or instrument relating thereto;

(iii)                      the sale,
transfer or conveyance of the Property or any interest therein to any Person,
whether now or hereafter having or acquiring an interest in the Property or any
interest therein and whether or not pursuant to any foreclosure, trustee sale
or similar proceeding against Borrower or the Property or any interest therein;

(iv)                     the conveyance
to Lender, any Affiliate of Lender or Lender’s nominee of the Property or any
interest therein by a deed-in-lieu of foreclosure;

(v)                        the
release of Borrower or any other Person from the performance or observance of
any of the agreements, covenants, terms or conditions contained in either the
Note or the Fee Letter by operation of law or otherwise; or

(vi)                     the release
in whole or in part of any collateral for any or all Guaranteed Obligations or
for the Loan or any portion thereof.

(c)                             Except as otherwise
specifically provided in this Guaranty, Guarantor hereby expressly and
irrevocably waives all defenses in an action brought by Lender to enforce this
Guaranty based on claims of waiver, release, surrender, alteration or
compromise and all setoffs, reductions, or impairments, whether arising
hereunder or otherwise.

(d)                            Lender may deal with
Borrower and Affiliates of Borrower in the same manner and as freely as if this
Guaranty did not exist and shall be entitled, among other things, to grant
Borrower or any other Person such extension or extensions of time to perform
any act or acts as may be deemed advisable by Lender, at any time and from time
to time, without terminating, affecting or impairing the validity of this
Guaranty or the obligations of Guarantor hereunder.

(e)                             No compromise, alteration,
amendment, modification, extension, renewal, release or other change of, or
waiver, consent, delay, omission, failure to act or other action with respect
to, any liability or obligation under or with respect to, or of any of the
terms, covenants or conditions of, the Note or the Fee Letter shall in any way
alter, impair or affect any of the obligations of Guarantor hereunder, and
Guarantor agrees that if either the Note or the Fee Letter are modified with
Lender’s consent, the Guaranteed Obligations shall automatically be deemed
modified to include such modifications.

 4
 

(f)                               Lender may proceed to
protect and enforce any or all of its rights under this Guaranty by suit in
equity or action at law, whether for the specific performance of any covenants
or agreements contained in this Guaranty or otherwise, or to take any action
authorized or permitted under applicable law, and shall be entitled to require
and enforce the performance of all acts and things required to be performed
hereunder by Guarantor.  Each and every
remedy of Lender shall, to the extent permitted by law, be cumulative and shall
be in addition to any other remedy given hereunder or now or hereafter existing
at law or in equity.

(g)                            No waiver shall be deemed
to have been made by Lender of any rights hereunder unless the same shall be in
writing and signed by Lender, and any such waiver shall be a waiver only with
respect to the specific matter involved and shall in no way impair the rights
of Lender or the obligations of Guarantor to Lender in any other respect or at
any other time.

(h)                            At the option of Lender,
Guarantor may be joined in any action or proceeding commenced by Lender against
Borrower in connection with or based upon either the Note or the Fee Letter and
recovery may be had against Guarantor in such action or proceeding or in any
independent action or proceeding against Guarantor to the extent of Guarantor’s
liability hereunder, without any requirement that Lender first assert,
prosecute or exhaust any remedy or claim against Borrower or any other Person,
or any security for the obligations of Borrower or any other Person.

(i)                                Guarantor agrees that
this Guaranty shall continue to be effective or shall be reinstated, as the
case may be, if at any time any payment is made by Borrower or Guarantor to
Lender and such payment is rescinded or must otherwise be returned by Lender
(as determined by Lender in its sole and absolute discretion) upon insolvency,
bankruptcy, liquidation, reorganization, readjustment, composition,
dissolution, receivership, conservatorship, winding up or other similar
proceeding involving or affecting Borrower or Guarantor, all as though such
payment had not been made.

(j)                                In the event that
Guarantor shall advance or become obligated to pay any sums under this Guaranty
or in connection with the Guaranteed Obligations or in the event that for any
reason whatsoever Borrower or any subsequent owner of the Property or any part
thereof is now, or shall hereafter become, indebted to Guarantor, Guarantor
agrees that (i) the amount of such sums and of such indebtedness and all
interest thereon shall at all times be subordinate as to lien, the time of
payment and in all other respects to all sums, including principal and interest
and other amounts, at any time owed to Lender under the Note or the Fee Letter,
and (ii) Guarantor shall not be entitled to enforce or receive payment
thereof until all principal, interest and other sums due pursuant to the Note
or the Fee Letter have been paid in full. 
Nothing herein contained is intended or shall be construed to give
Guarantor any right of subrogation in or under the Note or the Fee Letter or
any right to participate in any way therein, or in the right, title or interest
of Lender in or to any collateral for the Loan, notwithstanding any payments
made by Guarantor under this Guaranty, until the actual and irrevocable receipt
by Lender of payment in full of all principal, interest and other sums due with
respect to the Loan or otherwise payable under the Note or the Fee Letter.  If any amount shall be paid to Guarantor on
account of such subrogation rights at any time when any such sums due and owing
to Lender 

 5
 

shall not have been fully paid, such amount shall be paid by Guarantor
to Lender for credit and application against such sums due and owing to Lender.

(k)                             Guarantor’s obligations
hereunder shall survive a foreclosure, deed-in-lieu of foreclosure or similar
proceeding involving the Property and the exercise by Lender of any of all of
its remedies pursuant to the Note or the Fee Letter and Guarantor expressly
agrees that to the extent necessary to satisfy its obligations under Section 2
hereof, it shall be and remain liable for any deficiency remaining after
foreclosure of any Mortgage or security interest securing the Note,
notwithstanding provisions of law that may prevent the Lender from enforcing
such deficiency against the Borrower..

6.                           Covenants.

(a)                              As used in this Section
6, the following terms shall have the respective meanings set forth below:

(i)                                 “GAAP” shall mean generally
accepted accounting principles, consistently applied.

(ii)                               “Material Guaranty” shall
mean a guaranty entered into for a reason other than as a non-recourse
guarantor under loans secured by real estate.

(iii)                           “Net Worth” shall mean, as of
a given date,  (x) the total assets of
Guarantor as of such date less (y) Guarantor’s total liabilities as of such
date, determined in accordance with GAAP.

(b)                             Guarantor shall not, at
any time while a default in the payment of the Guaranteed Obligations has
occurred and is continuing, either (i) enter into or effectuate any transaction
with any Affiliate which would reduce the Net Worth of Guarantor, including the
payment of any dividend or distribution to a shareholder, or the redemption,
retirement, purchase or other acquisition for consideration of any stock in
Guarantor or (ii) sell, pledge, mortgage or otherwise transfer to any Person
any of Guarantor’s assets, or any interest therein, except for fair value.

(c)                              Guarantor shall not, at
any time while the Loan remains outstanding, enter into a Material Guaranty or
Material Guaranties which in the aggregate exceed $20,000,000.00.

(d)                             Guarantor shall not, and
shall not permit, the voluntary or involuntary sale, conveyance, mortgage,
grant, bargain, encumbrance, pledge, assignment, grant of any options with
respect to, or any other transfer or disposition of (directly or indirectly,
voluntarily or involuntarily, by operation of law or otherwise, and whether or
not for consideration or of record) of a direct or indirect, legal or
beneficial interest in the unencumbered assets set forth in Schedule I attached
hereto prior to the Maturity Date without Lender’s prior written consent.

7.                           Entire Agreement/Amendments. 
This instrument represents the entire agreement between the parties with
respect to the subject matter hereof. 
The terms of this 

 6
 

Guaranty shall not be waived, altered, modified,
amended, supplemented or terminated in any manner whatsoever except by written
instrument signed by Lender and Guarantor.

8.                           Successors and Assigns. 
This Guaranty shall be binding upon Guarantor, and Guarantor’s estate,
heirs, personal representatives, successors and assigns, may not be assigned or
delegated by Guarantor and shall inure to the benefit of Lender and its
successors and assigns.

9.                           Applicable Law and Consent to Jurisdiction.  This Guaranty shall be governed by, and
construed in accordance with, the substantive laws of the State of New
York.  Guarantor irrevocably
(a) agrees that any suit, action or other legal proceeding arising out of
or relating to this Guaranty may be brought in a court of record in the City
and County of New York or in the Courts of the United States of America located
in the Southern District of New York, (b) consents to the jurisdiction of
each such court in any such suit, action or proceeding and (c) waives any
objection which it may have to the laying of venue of any such suit, action or
proceeding in any of such courts and any claim that any such suit, action or
proceeding has been brought in an inconvenient forum.  Guarantor irrevocably consents to the service
of any and all process in any such suit, action or proceeding by service of
copies of such process to Guarantor at its address provided in Section 14
hereof.  Nothing in this Section 9,
however, shall affect the right of Lender to serve legal process in any other
manner permitted by law or affect the right of Lender to bring any suit, action
or proceeding against Guarantor or its property in the courts of any other
jurisdictions.

10.                     Section Headings.  The
headings of the sections and paragraphs of this Guaranty have been inserted for
convenience of reference only and shall in no way define, modify, limit or
amplify any of the terms or provisions hereof.

11.                     Severability.  Any
provision of this Guaranty which may be determined by any competent authority
to be prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law,
Guarantor hereby waives any provision of law which renders any provision hereof
prohibited or unenforceable in any respect.

12.                     WAIVER OF TRIAL BY JURY. 
GUARANTOR HEREBY WAIVES THE RIGHT OF TRIAL BY JURY IN ANY LITIGATION,
ACTION OR PROCEEDING ARISING HEREUNDER OR IN CONNECTION THEREWITH.

13.                     Judgment.  If Lender
recovers a judgment on this Guaranty, Guarantor agrees to pay to Lender
immediately upon demand all reasonable attorneys’ fees and costs incurred by
Lender in collecting and satisfying such judgment; it being expressly
understood that such agreement by the Guarantor is absolute and unconditional
and (i) shall survive (and not merge into) the entry of any judgment and (ii)
shall not be limited regardless of the security for the Loan, and regardless of
whether the Lender exercises any available rights or remedies against any
collateral pledged as security for the Loan.

 7
 

14.                     Notices.  All notices,
consents, approvals and requests required or permitted hereunder (a “Notice”) shall
be given in writing and shall be effective for all purposes if either hand
delivered with receipt acknowledged, or by a nationally recognized overnight
delivery service (such as Federal Express), or by certified or registered
United States mail, return receipt requested, postage prepaid, or by facsimile
and confirmed by facsimile answer back, in each case addressed as follows (or
to such other address or Person as a party shall designate from time to time by
notice to the other party):  If to Lender:
Citigroup Global Markets Realty Corp., 388 Greenwich Street, Floor 11, New
York, New York 10013, Attention: Commercial Mortgage Finance, Telecopier (212)
816-1299, with a copy to: Thacher Proffitt & Wood LLP, Two World Financial
Center, New York, New York 10281, Attention: Donald F. Simone, Esq.,
Telecopier: (212) 912-7751; if to Guarantor: 
15601 Dallas Parkway, Suite 600, Addison, Texas  75001, Attention: Chief Legal Counsel,
Telecopier: (214) 655-1610, and 15601 Dallas Parkway, Suite 600, Addison,
Texas  75001, Telecopier: (214)
655-1610.  A notice shall be deemed to
have been given:  in the case of hand
delivery, at the time of delivery; in the case of registered or certified mail,
when delivered or the first attempted delivery on a Business Day; or in the
case of overnight delivery, upon the first attempted delivery on a Business
Day.

15.                     Guarantor’s Receipt of Loan Documents.  Guarantor by its execution hereof
acknowledges receipt of true copies of all of the Note or the Fee Letter, the
terms and conditions of which are hereby incorporated herein by reference.

16.                     Interest; Expenses. 
If Guarantor fails to pay all or any sums due hereunder upon demand by
Lender, the amount of such sums payable by Guarantor to Lender shall bear
interest from the date of demand until paid at the Default Rate in effect from
time to time.

(a)                              Guarantor hereby agrees
to pay all costs, charges and expenses, including  reasonable attorneys’ fees and disbursements,
that may be incurred by Lender in enforcing the covenants, agreements,
obligations and liabilities of Guarantor under this Guaranty.

 8

IN WITNESS WHEREOF,
Guarantor has executed this Guaranty as of the date first above written.

	
  

  	
  BEHRINGER HARVARD OPPORTUNITY 

  REIT I, INC., a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Gerald
  J. Reihsen, III

  	
   

  
	
   

  	
   

  	
  Name: Gerald J. Reihsen,
  III

  
	
   

  	
   

  	
  Title:Executive Vice
  President

  

 

Schedule
I

Unencumbered
Assets

Whitewater

Bent Tree

Las ColinasExhibit 10.1

CONCEPTUS,
INC.

NINTH
AMENDED AND RESTATED

2001
EQUITY INCENTIVE PLAN

2001 Equity Incentive Plan

Adopted by the Board: March 21,
2001

Approved
by Stockholders: May 16, 2001

Amended and Restated Equity
Incentive Plan

Adopted by the Board: March 2002

Approved
by Stockholders: May 30, 2002

Second Amended and Restated
Equity Incentive Plan

Adopted by the Board: April 2003

Approved
by Stockholders: June 10, 2003

Third Amended and Restated Equity
Incentive Plan

Adopted by the Board: March 2004

Approved
by Stockholders: June 1, 2004

Amendment to Third Amended and
Restated Equity Incentive Plan

Adopted by the Board: March 2004

Approved
by Stockholders: June 1, 2004

Fourth Amended and Restated
Equity Incentive Plan

Adopted
by the Board: November 30, 2004

Fifth Amended and Restated Equity
Incentive Plan

Adopted
by the Board: January 5, 2005

Sixth Amended and Restated Equity
Incentive Plan

Adopted
by the Board: December 16, 2005

Seventh Amended and Restated
Equity Incentive Plan

Adopted
by the Board: February 10, 2006

Eighth Amended and Restated
Equity Incentive Plan

Adopted by the Board: April 2006

Approved
by Stockholders: June 7, 2006

Ninth Amended and Restated Equity
Incentive Plan

Adopted
by the Board: April 12, 2007

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  PURPOSES OF THE PLAN

  	
   

  	
  1

  
	
  2.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
  3.

  	
   

  	
  STOCK SUBJECT TO THE PLAN

  	
   

  	
  4

  
	
  4.

  	
   

  	
  ADMINISTRATION OF THE PLAN

  	
   

  	
  5

  
	
  5.

  	
   

  	
  ELIGIBILITY

  	
   

  	
  6

  
	
  6.

  	
   

  	
  LIMITATIONS

  	
   

  	
  6

  
	
  7.

  	
   

  	
  TERM OF PLAN

  	
   

  	
  7

  
	
  8.

  	
   

  	
  TERM OF AWARDS

  	
   

  	
  7

  
	
  9.

  	
   

  	
  OPTION EXERCISE PRICE AND CONSIDERATION

  	
   

  	
  7

  
	
  10.

  	
   

  	
  EXERCISE OF OPTION;

  	
   

  	
  8

  
	
  11.

  	
   

  	
  NON-TRANSFERABILITY OF AWARDS

  	
   

  	
  10

  
	
  12.

  	
   

  	
  GRANTS OF AWARDS TO INDEPENDENT DIRECTORS

  	
   

  	
  11

  
	
  13.

  	
   

  	
  RESTRICTED STOCK; STOCK PURCHASE RIGHTS

  	
   

  	
  11

  
	
  14.

  	
   

  	
  RESTRICTED STOCK UNITS

  	
   

  	
  11

  
	
  15.

  	
   

  	
  STOCK APPRECIATION RIGHTS

  	
   

  	
  12

  
	
  16.

  	
   

  	
  OTHER AWARDS

  	
   

  	
  14

  
	
  17.

  	
   

  	
  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION,
  MERGER OR ASSET SALE

  	
   

  	
  15

  
	
  18.

  	
   

  	
  TIME OF GRANTING AWARDS

  	
   

  	
  17

  
	
  19.

  	
   

  	
  AMENDMENT AND TERMINATION OF THE PLAN

  	
   

  	
  17

  
	
  20.

  	
   

  	
  STOCKHOLDER APPROVAL

  	
   

  	
  18

  
	
  21.

  	
   

  	
  INABILITY TO OBTAIN AUTHORITY

  	
   

  	
  19

  
	
  22.

  	
   

  	
  RESERVATION OF SHARES

  	
   

  	
  19

  
	
  23.

  	
   

  	
  INVESTMENT INTENT

  	
   

  	
  19

  
	
  24.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  19

  

 

CONCEPTUS,
INC.

NINTH
AMENDED AND RESTATED 2001 EQUITY INCENTIVE PLAN

1.             Purposes of the
Plan.  The purposes of the Conceptus,
Inc. Ninth Amended and Restated 2001 Equity Incentive Plan are to attract and
retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company’s business.  Options granted under the Plan may be
Incentive Stock Options or Non-Qualified Stock Options, as determined by the
Administrator at the time of grant. 
Other Awards may also be granted under the Plan.

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

(a)           “Acquisition”
means (i) any consolidation or merger of the Company with or into any other
corporation or other entity or person in which the stockholders of the Company
prior to such consolidation or merger own less than fifty percent (50%) of the
Company’s voting power immediately after such consolidation or merger,
excluding any consolidation or merger effected exclusively to change the
domicile of the Company; or (ii) a sale of all or substantially all of the
assets of the Company.

(b)           “Administrator”
means the Board or the Committee responsible for conducting the general
administration of the Plan, as applicable, in accordance with Section 4
hereof.

(c)           “Applicable Laws”
means the requirements relating to the administration of equity compensation
plans under U.S. state corporate laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction
where Awards are granted under the Plan.

(d)           “Award” shall
mean an Option, a Restricted Stock award, a Stock Appreciation Right award, a
Performance Share award, a Dividend Equivalents award, a Stock Payment award, a
Stock Purchase Right or a Restricted Stock Unit award granted to an eligible
individual under the Plan.

(e)           “Award Agreement”
means any written agreement, contract, or other instrument or document
evidencing an Award.

(f)            “Board” means
the Board of Directors of the Company.

(g)           “Code” means the
Internal Revenue Code of 1986, as amended, or any successor statute or statutes
thereto.  Reference to any particular
Code section shall include any successor section.

(h)           “Committee”
means a committee appointed by the Board in accordance with Section 4
hereof.

(i)            “Common Stock”
means the Common Stock of the Company, par value $0.003 per share.

 1
 

(j)            “Company” means
Conceptus, Inc., a Delaware corporation.

(k)           “Consultant”
means any consultant or adviser if: (i) the consultant or adviser renders
bona fide services to the Company or any Parent or Subsidiary of the Company;
(ii) the services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for
the Company’s securities; and (iii) the consultant or adviser is a natural
person who has contracted directly with the Company or any Parent or Subsidiary
of the Company to render such services.

(l)            “Director”
means a member of the Board.

(m)          “Employee” means
any person, including an Officer or Director, who is an employee (as defined in
accordance with Section 3401(c) of the Code) of the Company or any Parent or
Subsidiary of the Company.  A Service
Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any
successor.  For purposes of Incentive
Stock Options, no such leave may exceed ninety (90) days, unless reemployment
upon expiration of such leave is guaranteed by statute or contract.  Neither service as a Director nor payment of
a director’s fee by the Company shall be sufficient, by itself, to constitute “employment”
by the Company.

(n)           “Equity
Restructuring” shall mean a non-reciprocal transaction between the Company
and its stockholders, such as a stock dividend, stock split, spin-off, rights
offering or recapitalization through a large, nonrecurring cash dividend, that
affects shares of Common Stock (or other securities of the Company) or the
share price of Common Stock (or of other securities) and causes a change in the
per share value of the Common Stock underlying outstanding Awards.

(o)           “Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute
or statutes thereto.  Reference to any particular
Exchange Act section shall include any successor section.

(p)           “Fair Market Value”
means, as of any date, the value of a share of Common Stock determined as
follows:

(i)            If the Common Stock is
listed on any established stock exchange or a national market system,
including, without limitation, the Nasdaq Global Select Market, the Nasdaq
Global Market or the Nasdaq Capital Market, its Fair Market Value shall be the
closing sales price for a share of such stock (or the closing bid, if no sales
were reported) as quoted on such exchange or system on the day of determination
(or the most recent day on which sales were reported if none were reported on
such date), as reported in The Wall Street Journal or such other source as the
Administrator deems reliable;

(ii)           If the Common Stock is
regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean between the high bid and low
asked prices for a share of the Common Stock on the day of determination (or
the most recent day on which bid and asked prices were reported if none were
reported on such date); or

 2
 

(iii)          In the absence of an
established market for the Common Stock, the Fair Market Value thereof shall be
determined in good faith by the Administrator.

(q)           “Full Value Award”
means any Award other than an Option or other Award for which the Participant
pays the intrinsic value (whether directly or by forgoing a right to receive a
payment from the Company).

(r)            “Holder” means
a person who has been granted or awarded an Award or who holds Shares acquired
pursuant to the exercise of an Award.

(s)           “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 Administrator.

(t)            “Independent
Director” means a Director who is not an Employee of the Company.

(u)           “Independent
Director Equity Compensation Policy” shall have the meaning set forth in
Section 12.

(v)           “Non-Qualified Stock
Option” means an Option (or portion thereof) that is not designated as an
Incentive Stock Option by the Administrator, or which is designated as an
Incentive Stock Option by the Administrator but fails to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

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

(x)            “Option” means
a stock option granted pursuant to the Plan.

(y)           “Option Agreement”
means a written agreement between the Company and a Holder evidencing the terms
and conditions of an individual Option grant. 
The Option Agreement is subject to the terms and conditions of the Plan.

(z)            “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.

(aa)         “Performance Share”
means a right granted to a Holder pursuant to Section 16, to receive cash,
Stock, or other Awards, the payment of which is contingent upon achieving
certain performance goals established by the Committee.

(bb)         “Plan” means the
Conceptus, Inc. Ninth Amended and Restated 2001 Equity Incentive Plan.

 3
 

(cc)         “Restricted Stock”
means Shares (i) acquired pursuant to the exercise of an unvested Option in
accordance with Section 10(h) below or pursuant to a Stock Purchase Right
granted under Section 13 below or (ii) issued pursuant to a Restricted
Stock award under Section 13 below.

(dd)         “Restricted Stock Unit”
means a right to receive a specified number of shares of Common Stock during
specified time periods pursuant to Section 14.

(ee)         “Rule 16b-3” means
that certain Rule 16b-3 under the Exchange Act, as such Rule may be amended
from time to time.

(ff)           “Securities Act”
means the Securities Act of 1933, as amended, or any successor statute or
statutes thereto.  Reference to any
particular Securities Act section shall include any successor section.

(gg)         “Service Provider”
means an Employee, Director or Consultant.

(hh)         “Share” means a
share of Common Stock, as adjusted in accordance with Section 17 below.

(ii)           “Stock Appreciation
Right” or “SAR” means a right granted pursuant to Section 15 to receive a
payment equal to the excess of the Fair Market Value of a specified number of
shares of Common Stock on the date the SAR is exercised over the Fair Market
Value on the date the SAR was granted as set forth in the applicable Award
Agreement.

(jj)           “Stock Payment”
means (a) a payment in the form of Shares, or (b) an option or other right to
purchase Shares, as part of any bonus, deferred compensation or other
arrangement, made in lieu of all or any portion of the compensation, granted
pursuant to Section 16.

(kk)         “Stock Purchase Right”
means a right to purchase Common Stock pursuant to Section 13 below.

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

3.             Stock Subject to
the Plan.  Subject to the provisions
of Section 17 of the Plan, the shares of stock subject to Awards shall be
Common Stock, initially shares of the Company’s Common Stock, par value $0.003
per share.  Subject to the provisions of
Section 17 of the Plan, the maximum aggregate number of Shares which may
be issued or transferred pursuant to Awards under the Plan is 4,000,000
Shares.  Shares issued pursuant to an
Award may be authorized but unissued, or reacquired Common Stock.  To the extent that an Award terminates,
expires, or lapses for any reason, any Shares subject to the Award shall again
be available for the grant of an Award pursuant to the Plan.  Additionally, any Shares tendered or withheld
to satisfy the grant or exercise price or tax withholding obligation pursuant
to any Award shall again be available for the grant of an Award pursuant to the
Plan, subject to the limitations of this Section 3.  If Shares of Restricted Stock are repurchased
by the

 4
 

Company at their original
purchase price, if any, such Shares shall become available for future grant
under the Plan.  Notwithstanding the
provisions of this Section 3, no Shares may again be optioned, granted or
awarded if such action would cause an Incentive Stock Option to fail to qualify
as an Incentive Stock Option under Section 422 of the Code.

4.             Administration of
the Plan.

(a)           Administrator.  Either the Board or a Committee of the Board
delegated administrative authority hereunder shall administer the Plan and, in
the case of a Committee, the Committee shall consist solely of two or more
Independent Directors each of whom is both an “outside director,” within the
meaning of Section 162(m) of the Code, and a “non-employee director” within the
meaning of Rule 16b-3.  Within the scope
of such authority, the Board or the Committee may (i) delegate to a committee
of one or more members of the Board who are not Independent Directors the
authority to grant awards under the Plan to eligible persons who are either (1)
not then “covered employees,” within the meaning of Section 162(m) of the Code
and are not expected to be “covered employees” at the time of recognition of
income resulting from such award or (2) not persons with respect to whom the
Company wishes to comply with Section 162(m) of the Code and/or (ii) delegate
to a committee of one or more members of the Board who are not “non-employee
directors,” within the meaning of Rule 16b-3, the authority to grant awards
under the Plan to eligible persons who are not then subject to Section 16 of
the Exchange Act.  The Board may abolish
the Committee at any time and revest in the Board the administration of the
Plan.  Appointment of Committee members
shall be effective upon acceptance of appointment. Committee members may resign
at any time by delivering written notice to the Board.  Vacancies in the Committee may be filled only
by the Board.

(b)           Powers of the
Administrator.  Subject to the
provisions of the Plan and the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its sole discretion:

(i)            to determine the Fair
Market Value;

(ii)           to select the Service
Providers to whom Awards may from time to time be granted hereunder;

(iii)          to determine the number
of Shares to be covered by each such Award granted hereunder;

(iv)          to approve forms of
agreement for use under the Plan;

(v)           to determine the terms
and conditions of any Award granted hereunder (such terms and conditions
include, but are not limited to, the exercise price, the time or times when
Awards may vest or be exercised (which may be based on performance criteria),
any vesting acceleration or waiver of forfeiture restrictions, and any
restriction or limitation regarding any Award or the Common Stock relating
thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine);

 5
 

(vi)          to determine whether to
offer to buyout a previously granted Option as provided in
subsection 10(i) and to determine the terms and conditions of such offer
and buyout (including whether payment is to be made in cash or Shares);

(vii)         to prescribe, amend and
rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of
qualifying for preferred tax treatment under foreign tax laws;

(viii)        to allow Holders to
satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued pursuant to an Award that number of Shares having
a Fair Market Value equal to the minimum amount required to be withheld based
on the statutory withholding rates for federal and state tax purposes that
apply to supplemental taxable income. 
The Fair Market Value of the Shares to be withheld shall be determined
on the date that the amount of tax to be withheld is to be determined.  All elections by Holders to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable;

(ix)           to amend the Plan or
any Award granted under the Plan as provided in Section 20; and

(x)            to construe and
interpret the terms of the Plan and Awards granted pursuant to the Plan and to
exercise such powers and perform such acts as the Administrator deems necessary
or desirable to promote the best interests of the Company which are not in
conflict with the provisions of the Plan.

(c)           Effect of
Administrator’s Decision.  All
decisions, determinations and interpretations of the Administrator shall be
final and binding on all Holders.

5.             Eligibility.  Awards other than Incentive Stock Options may
be granted to Service Providers. 
Incentive Stock Options may be granted only to Employees.  If otherwise eligible, a Service Provider who
has been granted an Award may be granted additional Awards.  Each Independent Director shall be eligible
to be granted Awards pursuant to the Independent Director Equity Compensation
Policy described in Section 12.

6.             Limitations.

(a)           Each Option shall be
designated by the Administrator in the Option Agreement as either an Incentive
Stock Option or a Non-Qualified Stock Option. 
However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of Shares subject to a Holder’s Incentive Stock
Options 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
Non-Qualified Stock Options.

For purposes of this
Section 6(a), Incentive Stock Options shall be taken into account in the
order in which they were granted, and the Fair Market Value of the Shares shall
be determined as of the time of grant.

 6
 

(b)           Neither the Plan nor
any Award shall confer upon a Holder any right with respect to continuing the
Holder’s employment or consulting relationship with the Company, nor shall they
interfere in any way with the Holder’s right or the Company’s right to
terminate such employment or consulting relationship at any time, with or
without cause.

(c)           The maximum number of
shares of Common Stock with respect to one or more Awards that may be granted
to any one Service Provider during a calendar year shall be 800,000.  Notwithstanding the foregoing, the maximum
number of shares of Common Stock with respect to one or more Full Value Awards
that may be granted to any one Service Provider during a calendar year shall be
300,000.  The limitations in this Section
6(c) shall be adjusted proportionately in connection with any change in the
Company’s capitalization as described in Section 17.  For purposes of this Section 6(c), if an
Option is canceled in the same calendar year it was granted (other than in
connection with a transaction described in Section 17), the canceled Option
will be counted against the limit set forth in this Section 6(c).  For this purpose, if the exercise price of an
Option is reduced, the transaction shall be treated as a cancellation of the
Option and the grant of a new Option.

7.             Term of Plan.  The Plan became effective upon its initial
adoption by the Board on March 21, 2001 and shall continue in effect until it
is terminated under Section 20 of the Plan.  No Awards may be issued under the Plan after
March 21, 2011, the tenth (10th) anniversary of the date upon which the Plan
was initially adopted by the Board.

8.             Term of Awards.  The term of each Award shall be stated in the
Award Agreement; provided, however, that the term
shall be no more than ten (10) years from the date of grant thereof.  In the case of an Incentive Stock Option
granted to a Holder who, at the time the Option is granted, owns (or is treated
as owning under Code Section 424) stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, 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.

9.             Option Exercise
Price and Consideration.

(a)           The per share exercise
price for the Shares to be issued upon exercise of an Option shall be such
price as is determined by the Administrator, but shall be subject to the
following:

(i)            In the case of an
Incentive Stock Option

(A)          granted to an Employee
who, at the time of grant of such Option, owns (or is treated as owning under
Code Section 424) stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
per Share exercise price shall be no less than one hundred ten percent (110%)
of the Fair Market Value per Share on the date of grant.

(B)           granted to any other
Employee, the per Share exercise price shall be no less than one hundred
percent (100%) of the Fair Market Value per Share on the date of grant.

(b)           The consideration to be
paid for the Shares to be issued upon exercise of an Option, including the
method of payment, shall be determined by the Administrator.  Such consideration may consist of
(1) cash, (2) check, (3) with the consent of the Administrator,
other

 7
 

Shares which (x) in
the case of Shares acquired from the Company, have been owned by the Holder for
more than six (6) months on the date of surrender, and (y) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which such Option shall be exercised, (4) with the
consent of the Administrator, surrendered Shares then issuable upon exercise of
the Option having a Fair Market Value on the date of exercise equal to the
aggregate exercise price of the Option or exercised portion thereof,
(5) property of any kind which constitutes good and valuable consideration
(6) with the consent of the Administrator, delivery of a notice that the
Holder has placed a market sell order with a broker with respect to Shares then
issuable upon exercise of the Options and that the broker has been directed to
pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price, provided, that
payment of such proceeds is then made to the Company upon settlement of such
sale, or (7) with the consent of the Administrator, any combination of the
foregoing methods of payment.

10.           Exercise of Option;(a)
Vesting; Fractional Exercises. 
Options granted hereunder shall be vested and exercisable according to
the terms hereof at such times and under such conditions as determined by the
Administrator and set forth in the Option Agreement.  An Option may not be exercised for a fraction
of a Share.

(a)           All Options shall be
subject to such additional terms and conditions as determined by the
Administrator and shall be evidenced by a written Option Agreement.  In the event that the exercise price of an
Option is intended to be below the Fair Market Value per Share on the date of
grant, such Option Agreement may also include limitations regarding the
exercise of such Option and may provide that such exercise is subject to
certain terms and restrictions, including but not limited to, an election, by
specified date, of the Holder, regarding such Option, to  the extent such terms and
restrictions are required so as not cause the Option or the shares of Common
Stock issuable pursuant to the exercise of such Option to be includable in the
gross income of the Holder under Section 409A of the Code prior to such times
or occurrence of such events, as permitted by the Code and the regulations and
other guidance thereunder (including, without limitation, Section 409A of the
Code, and the regulations and other guidance issued by the Secretary of the
Treasury thereunder).

(b)           Deliveries upon
Exercise.  All or a portion of an
exercisable Option shall be deemed exercised upon delivery of all of the
following to the Secretary of the Company or his or her office:

(i)            A written or
electronic notice complying with the applicable rules established by the
Administrator stating that the Option, or a portion thereof, is exercised.  The notice shall be signed by the Holder or
other person then entitled to exercise the Option or such portion of the Option;

(ii)           Such representations
and documents as the Administrator, in its sole discretion, deems necessary or
advisable to effect compliance with Applicable Laws.  The Administrator may, in its sole
discretion, also take whatever additional actions it deems appropriate to
effect such compliance, including, without limitation, placing legends on share
certificates and issuing stop transfer notices to agents and registrars;

(iii)          Upon the exercise of all
or a portion of an unvested Option pursuant to Section 10(h), a Restricted
Stock purchase agreement in a form determined by the Administrator and signed
by the Holder or other person then entitled to exercise the Option or such
portion of the Option; and

 8
 

(iv)          In the event that the
Option shall be exercised pursuant to Section 10(f) by any person or persons
other than the Holder, appropriate proof of the right of such person or persons
to exercise the Option.

(c)           Conditions to
Delivery of Share Certificates.  The
Company shall not be required to issue or deliver any certificate or
certificates for Shares 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 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 Administrator
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 Administrator shall, in its sole discretion, determine to be necessary or
advisable;

(iv)          The lapse of such reasonable
period of time following the exercise of the Option as the Administrator may
establish from time to time for reasons of administrative convenience; and

(v)           The receipt by the
Company of full payment for such Shares, including payment of any applicable
withholding tax, which in the sole discretion of the Administrator may be in
the form of consideration used by the Holder to pay for such Shares under
Section 9(b).

(d)           Termination of
Relationship as a Service Provider. 
If a Holder ceases to be a Service Provider other than by reason of the
Holder’s disability or death, such Holder may exercise his or her Option within
such period of time as is specified in the Option Agreement to the extent that
the Option is vested on the date of termination.  In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for three (3) months
following the Holder’s termination.  If,
on the date of termination, the Holder is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option immediately
cease to be issuable under the Option and shall again become available for
issuance under the Plan.  If, after
termination, the Holder does not exercise his or her Option within the time
period specified herein, the Option shall terminate, and the Shares covered by
such Option shall again become available for issuance under the Plan.

(e)           Disability of Holder.  If a Holder ceases to be a Service Provider
as a result of the Holder’s disability, the Holder may exercise his or her
Option within such period of time as is specified in the Option Agreement to
the extent the Option is vested on the date of termination.  In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for twelve
(12) months following the Holder’s termination.  If such disability is not a “disability” as
such term is defined in Section 22(e)(3) of the Code, in the case of an
Incentive Stock Option such Incentive Stock

 9
 

Option shall
automatically cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Non-Qualified Stock Option from and after the day
which is three (3) months and one (1) day following such termination.  If, on the date of termination, the Holder is
not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall immediately cease to be issuable under the Option
and shall again become available for issuance under the Plan.  If, after termination, the Holder does not exercise
his or her Option within the time specified herein, the Option shall terminate,
and the Shares covered by such Option shall again become available for issuance
under the Plan.

(f)            Death of Holder.  If a Holder dies while a Service Provider,
the Option may be exercised within such period of time as is specified in the
Option Agreement, by the Holder’s estate or by a person who acquires the right
to exercise the Option by bequest or inheritance, but only to the extent that
the Option is vested on the date of death. 
In the absence of a specified time in the Option Agreement, the Option
shall remain exercisable for twelve (12) months following the Holder’s
termination.  If, at the time of death,
the Holder is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option shall immediately cease to be issuable under
the Option and shall again become available for issuance under the Plan.  The Option may be exercised by the executor
or administrator of the Holder’s estate or, if none, by the person(s) entitled
to exercise the Option under the Holder’s will or the laws of descent or
distribution.  If the Option is not so
exercised within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall again become available for issuance under
the Plan.

(g)           Regulatory Extension.  A Holder’s Option Agreement may provide that
if the exercise of the Option following the termination of the Holder’s status
as a Service Provider (other than upon the Holder’s death or Disability) would
be prohibited at any time solely because the issuance of shares 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 8 or (ii) the expiration of a period of three (3) months after
the termination of the Holder’s status as a Service Provider during which the
exercise of the Option would not be in violation of such registration
requirements.

(h)           Early Exercisability.  The Administrator may provide in the terms of
a Holder’s Option Agreement that the Holder may, at any time before the Holder’s
status as a Service Provider terminates, exercise the Option in whole or in
part prior to the full vesting of the Option; provided,
however, that Shares acquired upon exercise of an Option which has
not fully vested may be subject to any forfeiture, transfer or other
restrictions as the Administrator may determine in its sole discretion.

(i)            Buyout Provisions.  Subject to the provisions of Section 17(e),
the Administrator may at any time offer to buyout for a payment in cash or
Shares, an Option previously granted, based on such terms and conditions as the
Administrator shall establish and communicate to the Holder at the time that
such offer is made.

11.           Non-Transferability
of Awards.  Awards may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Holder, only by the Holder.

 10
 

12.           Grants of Awards to
Independent Directors. 
Notwithstanding anything herein to the contrary, the grant of any Award
to an Independent Director shall be made by the Board pursuant to a written
policy or program which may be recommended by a Committee of the Board and
approved by the Board (the “Independent Director Equity Compensation Policy”)
in its discretion.  The Independent
Director Equity Compensation Policy shall set forth the type of Award(s) to be
granted to Independent Directors, the number of Shares to be subject to
Independent Director Awards, the conditions on which such Awards shall be
granted, become exercisable and/or payable and expire, and such other terms and
conditions as may be set forth in the Independent Director Equity Compensation
Policy and determined by the Board in its discretion.

13.           Restricted Stock;
Stock Purchase Rights.

(a)           Restricted Stock;
Rights to Purchase.  Restricted Stock
and/or Stock Purchase Rights may be issued either alone, in addition to, or in
tandem with Options granted under the Plan and/or cash awards made outside of
the Plan.  After the Administrator
determines that it will offer Restricted Stock or Stock Purchase Rights under
the Plan, it shall advise the offeree in writing of the terms, conditions and
restrictions related to the offer, including the number of Shares that such
person shall be entitled to purchase, the price to be paid, if any, and the
time within which such person must accept such offer.  The offer shall be
accepted by execution of a Restricted Stock purchase agreement in the form
determined by the Administrator.

(b)           Repurchase Right;
Forfeiture.  Unless the Administrator
determines otherwise, the Restricted Stock purchase agreement shall grant the
Company the right to repurchase Shares acquired upon exercise of a Stock
Purchase Right or provide for the forfeiture of Shares acquired pursuant to a
Restricted Stock award upon the termination of the purchaser’s status as a
Service Provider for any reason.  The
purchase price for Shares repurchased by the Company pursuant to such
repurchase right, if any, and the rate at which such repurchase right or any
forfeiture provision shall lapse shall be determined by the Administrator in
its sole discretion, and shall be set forth in the Restricted Stock purchase
agreement.

(c)           Other Provisions.  The Restricted Stock purchase agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

(d)           Rights as a
Shareholder.  Once the Stock Purchase
Right is exercised or the Restricted Stock is issued, the purchaser shall have
rights equivalent to those of a shareholder and shall be a shareholder when his
or her purchase or award is entered upon the records of the duly authorized
transfer agent of the Company.  No
adjustment shall be made for a dividend or other right for which the record
date is prior to the date the Stock Purchase Right is exercised or Restricted
Stock is awarded, except as provided in Section 17 of the Plan.

14.           Restricted Stock
Units.

Any Service
Provider selected by the Administrator may be granted an award of Restricted
Stock Units in the manner determined from time to time by the Administrator.

 11
 

(a)           The vesting of
Restricted Stock Units shall be determined by the Administrator and may be
linked to specific performance criteria determined to be appropriate by the
Administrator, in each case on a specified date or dates or over any period or
periods determined by the Administrator. 
Common Stock underlying a Restricted Stock Unit award will not be issued
until the Restricted Stock Unit award has vested, pursuant to a vesting
schedule or performance criteria set by the Administrator.

(b)           Unless
otherwise provided by the Administrator, a Holder awarded Restricted Stock
Units shall have no rights as a Company stockholder with respect to such
Restricted Stock Units until such time as the Restricted Stock Units have
vested and the Common Stock underlying the Restricted Stock Units has been
issued.

(c)           All
Restricted Stock Units shall be subject to such additional terms and conditions
as determined by the Administrator and shall be evidenced by a written Award
Agreement.  Such Award Agreement may also
include limitations regarding the distribution of payments due pursuant to such
Restricted Stock Units and may provide that such payments are subject to an
election, by a certain date, of the Holder to whom such payment is to be
awarded, to  the
extent such limitations and elections are required so as not cause any
Restricted Stock Unit Award or the shares of Common Stock or cash issuable
pursuant to any Restricted Stock Unit Award (or other amounts issuable or
distributable) to be includable in the gross income of the Holder under Section
409A of the Code prior to such times or occurrence of such events, as permitted
by the Code and the regulations and other guidance thereunder (including,
without limitation, Section 409A of the Code, and the regulations and other
guidance issued by the Secretary of the Treasury thereunder).

15.           Stock Appreciation Rights.

A Stock
Appreciation Right may be granted to any Service Provider selected by the
Administrator.  A Stock Appreciation
Right may be granted (a) in connection and simultaneously with the grant
of an Option, (b) with respect to a previously granted Option, or
(c) independent of an Option.  A
Stock Appreciation Right shall be subject to such terms and conditions not
inconsistent with the Plan as the Administrator shall impose and shall be
evidenced by an Award Agreement.

(a)           Coupled
Stock Appreciation Rights.  A Coupled
Stock Appreciation Right (“CSAR”) shall be related to a particular
Option and shall be exercisable only when and to the extent the related Option
is exercisable.

(i)            A
CSAR may be granted to a Holder for no more than the number of shares subject
to the simultaneously or previously granted Option to which it is coupled.

(ii)           A CSAR shall entitle
the Holder (or other person entitled to exercise the Option pursuant to the
Plan) to surrender to the Company unexercised a portion of the Option to which
the CSAR relates (to the extent then exercisable pursuant to its terms) and to
receive from the Company in exchange therefor an amount determined by
multiplying the difference obtained by subtracting the Option exercise price
from the Fair Market Value of a share of Common Stock on the date of exercise
of the CSAR by the number of shares of Common Stock with respect to which the
CSAR shall have been exercised, subject to any limitations the Administrator
may impose.

(b)           Independent Stock
Appreciation Rights.  An Independent
Stock Appreciation Right (“ISAR”) shall be unrelated to any Option and
shall have a term set by the Administrator. 
An ISAR shall be exercisable in such installments as the Administrator
may determine.  An ISAR shall

 12
 

cover such number of
shares of Common Stock as the Administrator may determine.  The exercise price per share of Common Stock
subject to each ISAR shall be set by the Administrator; provided, however, that, the Administrator in its sole and absolute discretion may
provide that the ISAR may be exercised subsequent to a termination of
employment or service, as applicable, or following an Acquisition of the
Company, or because of the Holder’s retirement, death or disability, or
otherwise.  An ISAR shall entitle
the Holder (or other person entitled to exercise the ISAR pursuant to the Plan)
to exercise all or a specified portion of the ISAR (to the extent then exercisable
pursuant to its terms) and to receive from the Company an amount determined by
multiplying the difference obtained by subtracting the exercise price per share
of the ISAR from the Fair Market Value of a share of Common Stock on the date
of exercise of the ISAR by the number of shares of Common Stock with respect to
which the ISAR shall have been exercised, subject to any limitations the
Administrator may impose.

(c)           Payment and
Limitations on Exercise, Distribution. 
Payment of the amounts determined under Section 15(a) and 15(b) above
shall be in cash, in Common Stock (based on its Fair Market Value as of the
date the Stock Appreciation Right is exercised) or a combination of both, as
determined by the Administrator.

(i)            The Administrator shall determine the
terms and procedures regarding the payment of amounts determined under Section
15(a) and 15(b) above, and may provide that such payments are subject to an
election by the Holder to whom such payment is to be awarded, in accordance
with this Section 15(c).  Specifically,  the
Committee may provide for the deferral of the payment issuable pursuant to a
Stock Appreciation Right at the election of the Holder to whom such award is to
be awarded in accordance with the terms of this Section 15(c).

(A)          Subject to the paragraph
(B) below, any election of a Holder to defer the issuance of payment pursuant
to Stock Appreciation Right shall be made not later than the close of the
taxable year preceding the first taxable year in which such Holder performs
services for such Stock Appreciation Right or related Option, in the case of a
CSAR.

(B)           In the case of the
first year in which a Holder becomes eligible to participate in the Plan, any
election of such Holder to defer the payment pursuant to a Stock Appreciation
Right may be made with respect to services to be performed subsequent to the
election within thirty (30) days after the date such Holder becomes eligible to
participate in the Plan.

(C)           A Holder, under such
terms as the Administrator shall determine in its sole discretion, may elect to
receive the shares of Common Stock or cash issuable pursuant to a Stock
Appreciation Right upon one or more of the following events:

(i)             a date specified in
such election,

(ii)            the termination of
Holder,

(iii)           an Unforeseeable Emergency
of such Holder;

(iv)           a Change in Control;

 13
 

(v)            death; or

(vi)           Qualified Disability;

provided, however,
in the case of a Holder who is a “key employee” as defined in Code Section
416(i) (determined without regard to paragraph (5) thereof) of the Company, the
payment issuable pursuant to Holder’s termination shall not be made before the
date which is six (6) months after the date of such termination.

(D)          A deferral election made
by a Holder shall be irrevocable and shall not be amended, modified or terminated
by such Holder.

(E)           Prohibition on
Acceleration of Distributions.

The terms
regarding the issuance of payments pursuant to a Stock Appreciation Right shall
not be amended, modified or terminated in any manner which permits the
acceleration of the time or schedule of such issuance of shares of Common Stock
or cash.

(F)           Limitation of
Distributions.  Notwithstanding the
provisions of this section, shares of Common Stock or cash shall be issuable
pursuant to a Stock Appreciation Right at such times or upon such events as are
specified in Section 15(c)(i)(C) above and the terms of the Award Agreement
only to the extent the issuance or distribution at such times or upon such
events under such terms will not cause the Award or the shares of Common Stock or
cash issuable pursuant to the Award (or other amounts issuable or
distributable) to be includable in the gross income of the Holder under Section
409A of the Code prior to such times or occurrence of such events, as permitted
by the Code and the regulations and other guidance thereunder (including,
without limitation, Section 409A of the Code, and the regulations and other
guidance issued by the Secretary of the Treasury thereunder).

(G)           For purposes of this
Section 15, the “Unforeseeable Emergency” of a Holder shall mean a severe
financial hardship to such Holder resulting from:  (i) an illness or accident of such Holder, or
the spouse or a dependent (as defined in Code Section 152(a)) of such Holder,
(ii) the loss of such Holder property due to casualty, or (iii) other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of such Holder.  For
purposes of this Section 15, “Qualified Disability” shall mean the Holder is “disabled,”
as such term is defined in Section 409A of the Code, and the regulations and
other guidance issued by the Secretary of the Treasury thereunder.  For purposes of this Section 15, “Change in
Control” shall mean a change in control as defined as in Section 409A of the
Code, and the regulations and other guidance issued by the Secretary of the
Treasury thereunder.

16.           Other Awards.

(a)           Performance Share
Awards.  Any Service Provider
selected by the Committee may be granted one or more Performance Share awards
which may be denominated in a number of Shares or in a dollar value of Shares
and which may be linked to any one or more specific performance criteria
determined appropriate by the Committee, in each case on a specified date or
dates or over any period or periods determined by the Committee.  In making such determinations, the Committee
shall consider (among such other factors as it deems relevant in light of the
specific type of award) the contributions, responsibilities and other
compensation of the particular Holder.

 14
 

(b)           Dividend Equivalents.  Any Service Provider selected by the
Committee may be granted Dividend Equivalents based on the dividends declared
on the shares of Stock that are subject to any Award, to be credited as of
dividend payment dates, during the period between the date the Award is granted
and the date the Award is exercised, vests or expires, as determined by the
Committee.  Such Dividend Equivalents
shall be converted to cash or additional Shares by such formula and at such
time and subject to such limitations as may be determined by the Committee.

(c)           Stock Payments.  Any Service Provider selected by the
Committee may receive Stock Payments in the manner determined from time to time
by the Committee.  The number of shares
shall be determined by the Committee and may be based upon specific performance
criteria determined appropriate by the Committee, determined on the date such
Stock Payment is made or on any date thereafter.

17.           Adjustments upon
Changes in Capitalization, Merger or Asset Sale.

(a)           In the event that the
Administrator determines that other than an Equity Restructuring any dividend
or other distribution (whether in the form of cash, Common Stock, other
securities, or other property), reclassification, reorganization, merger,
consolidation, spin-off, combination, repurchase, liquidation,
dissolution, or sale, transfer, exchange or other disposition of all or
substantially all of the assets of the Company, 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 Administrator’s sole discretion, affects
the Common Stock such that an adjustment is determined by the Administrator to
be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended by the Company to be made available under the Plan
or with respect to any Award, then the Administrator shall, in such manner as
it may deem equitable, adjust any or all of:

(i)            the number and kind of
shares of Common Stock (or other securities or property) with respect to which
Awards may be granted or awarded (including, but not limited to, adjustments of
the limitations in Section 3 on the maximum number and kind of shares which may
be issued and adjustments of the maximum number of Shares that may be purchased
by any Holder in any calendar year pursuant to Section 6(c));

(ii)           the number and kind of
shares of Common Stock (or other securities or property) subject to outstanding
Awards; and

(iii)          the grant or exercise
price with respect to any Award.

(b)           In the event of any
transaction or event described in Section 17(a), the Administrator, in its sole
discretion, and on such terms and conditions as it deems appropriate, and to
the extent allowed by Section 409A of the Code and any applicable regulations
thereunder, to the extent applicable, either by the terms of the Award or by
action taken prior to the occurrence of such transaction or event and either
automatically or upon the Holder’s request, is hereby authorized to take any
one or more of the

 15
 

following actions whenever the Administrator
determines that such action is appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended by the Company to be
made available under the Plan or with respect to any Award granted or issued
under the Plan or to facilitate such transaction or event:

(i)            To provide for either
the purchase of any such Award for an amount of cash equal to the amount that
could have been obtained upon the exercise of such Award or realization of the
Holder’s rights had such Award been currently exercisable or payable or fully
vested or the replacement of such Award with other rights or property selected
by the Administrator in its sole discretion;

(ii)           To provide that such
Award shall be exercisable as to all shares covered thereby, notwithstanding
anything to the contrary in the Plan or the provisions of such Award;

(iii)          To provide that such
Award 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;

(iv)          To make adjustments in
the number and type of shares of Common Stock (or other securities or property)
subject to outstanding Awards, and/or in the terms and conditions of (including
the grant or exercise price), and the criteria included in, outstanding Awards
or Awards which may be granted in the future; and

(v)           To provide that
immediately upon the consummation of such event, such Award shall not be
exercisable and shall terminate; provided, that
for a specified period of time prior to such event, such Award shall be
exercisable as to all Shares covered thereby, and the restrictions imposed
under an Award Agreement upon some or all Shares may be terminated and, in the
case of Restricted Stock, some or all shares of such Restricted Stock may cease
to be subject to repurchase, notwithstanding anything to the contrary in the
Plan or the provisions of such Award Agreement.

(c)           In connection with the
occurrence of any Equity Restructuring, and notwithstanding anything to the
contrary in Sections 17(a) and 17(b):

(i)            The number and type of
securities subject to each outstanding Award and the exercise price or grant
price thereof, if applicable, will be proportionately adjusted.  The adjustments provided under this Section
17(c)(i) shall be nondiscretionary and shall be final and binding on the
affected Holder and the Company.

(ii)           The Administrator shall
make such proportionate adjustments, if any, as the Administrator in its
discretion may deem appropriate to reflect such Equity Restructuring with
respect to the aggregate number and kind of Shares that may be issued under the
Plan (including, but not limited to, adjustments of the limitations in Section
3 and Section 6(c)).

(iii)          Notwithstanding anything
in this Section 17 to the contrary, this Section 17(c) shall not apply to, and
instead Section 17(a) of the Plan shall apply to, any Award to which the
application of this Section 17(c) would (A) result in a penalty tax under
Section 409A of the Code and the proposed and final regulations and guidance
issued by the Secretary of the Treasury thereunder or (B) cause any Incentive
Stock Option to fail to qualify as an “incentive stock option” under Section
422 of the Code.

 16
 

(d)           Subject to Section 3,
the Administrator may, in its sole discretion, include such further provisions
and limitations in any Award Agreement or Common Stock certificate, as it may
deem equitable and in the best interests of the Company.

(e)           If the Company
undergoes an Acquisition, then any surviving corporation or entity or acquiring
corporation or entity, or affiliate of such corporation or entity, may assume
any Awards outstanding under the Plan or may substitute similar stock awards
(including an award to acquire the same consideration paid to the stockholders
in the transaction described in this subsection 17(e)) for those outstanding
under the Plan.  In the event any
surviving corporation or entity or acquiring corporation or entity in an Acquisition,
or affiliate of such corporation or entity, does not assume such Awards or does
not substitute similar stock awards for those outstanding under the Plan, then
with respect to (i) Awards held by Holders in the Plan whose status as a
Service Provider has not terminated prior to such event, the vesting of such
Awards (and, if applicable, the time during which such awards may be exercised)
shall be accelerated and made fully exercisable and all restrictions thereon
shall lapse at least ten (10) days prior to the closing of the Acquisition (and
the Awards terminated if not exercised prior to the closing of such
Acquisition), and (ii) any other Awards outstanding under the Plan, such rights
shall be terminated if not exercised prior to the closing of the Acquisition.  Notwithstanding the assumption or
substitution of Options granted to Service Providers other than Independent
Directors pursuant to the foregoing provisions, any Award granted to
Independent Directors pursuant to the Independent Director Equity Compensation
Policy which is outstanding immediately prior to the closing of the Acquisition
shall not be assumed or substituted for, shall be accelerated and made fully
vested and/or exercisable, as applicable, at least ten (10) days prior to the
closing of the Acquisition and shall terminate if not exercised prior to the
closing of such Acquisition.

(f)            The existence of the
Plan or any Award Agreement and the Awards granted hereunder shall not affect
or restrict in any way the right or power of the Company or the stockholders of
the Company to make or authorize any adjustment, recapitalization,
reorganization or other change in the Company’s capital structure or its
business, any merger or consolidation of the Company, any issue of stock or of
options, warrants or rights to purchase stock or of bonds, debentures,
preferred or prior preference stocks whose rights are superior to or affect the
Common Stock or the rights thereof or which are convertible into or
exchangeable for Common Stock, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

18.           Time of Granting
Awards.  The date of grant of an
Award shall, for all purposes, be the date on which the Administrator makes the
determination granting such Award, or such other date as is determined by the
Administrator.  Notice of the
determination shall be given to each Service Provider to whom an Award is so
granted within a reasonable time after the date of such grant.

19.           Amendment and
Termination of the Plan.

(a)           Amendment and
Termination.  The Board may at any
time wholly or partially amend, alter, suspend or terminate the Plan.  However, without approval of the Company’s
stockholders given within twelve (12) months before or after the action by the
Board, no action of the Board may, except as provided in Section 17, increase
the limits imposed in Section 3 on the maximum number of Shares which may
be issued under the Plan or extend the term of the Plan under Section 7.

 17
 

(b)           Savings Clause.  Notwithstanding
anything to the contrary in the Plan or any Award Agreement relating to an
outstanding Award, if and to the extent the Administrator shall determine that
the terms of any Award may result in the failure of the such Award to comply
with the requirements of Section 409A of the Code, or any applicable
regulations or guidance promulgated by the Secretary of the Treasury in
connection therewith, the Administrator shall have authority to take such action
to amend, modify, cancel or terminate the Plan or any Award as it deems
necessary or advisable, including without limitation:

(i)            Any amendment or
modification of the Plan or any Award to conform the Plan or such Award to the
requirements of Section 409A of the Code or any regulations or other guidance
thereunder (including, without limitation, any amendment or modification of the
terms of any Award regarding vesting, exercise, or the timing or form of
payment).

(ii)           Any cancellation or
termination of any unvested Award, or portion thereof, without any payment to
the Holder holding such Award.

(iii)          Any cancellation or
termination of any vested Award, or portion thereof, with immediate payment to
the Holder holding such Award of the amount otherwise payable upon the
immediate exercise of any such Award, or vested portion thereof, by such
Holder.

(iv)          Any such amendment,
modification, cancellation, or termination of the Plan or any Award may
adversely affect the rights of a Holder with respect to such Award without the
Holder’s consent.

(c)           Stockholder Approval.  The Board shall obtain stockholder approval
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

(d)           Effect of Amendment
or Termination.  Except as provided
in Section 17(b), above, no amendment, alteration, suspension or termination of
the Plan shall impair the rights of any Holder, unless mutually agreed
otherwise between the Holder and the Administrator, which agreement must be in
writing and signed by the Holder and the Company.  Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with
respect to Awards granted or awarded under the Plan prior to the date of such
termination.

(e)           Repricing Prohibited.  Notwithstanding any provision in this Plan to
the contrary, absent approval of the stockholders of the Company no Award may
be amended to reduce the per Share exercise price of the Shares subject to such
Award below the per Share exercise price as of the date the Award is
granted.  In addition, absent approval of
the stockholders of the Company no Award may be granted in exchange for, or in
connection with, the cancellation or surrender of an Award having a higher per
Share exercise price.

20.           Stockholder Approval.  The Plan will be submitted for the approval
of the Company’s stockholders within twelve (12) months after the date of the
Board’s adoption of the Plan.  Awards may
be granted or awarded prior to such stockholder approval, provided that Awards
not previously authorized under the Plan shall not be exercisable, shall not
vest and the restrictions thereon shall not

 18
 

lapse prior to the time
when the Plan is approved by the stockholders, and provided further that if
such approval has not been obtained at the end of said twelve-month
period, any Award previously granted or awarded but not previously authorized
under the Plan shall thereupon be canceled and become null and void.

21.           Inability to Obtain
Authority.  The inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

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

23.           Investment Intent.  The Company may require a Plan Holder, as a
condition of exercising or acquiring stock under any Award, (i) to give written
assurances satisfactory to the Company as to the Holder’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 rights under any Award; and (ii) to give written assurances
satisfactory to the Company stating that the Holder is acquiring the stock
subject to the Award for the Holder’s own account and not with any present
intention of selling or otherwise distributing the stock.  The foregoing requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (A) the
issuance of the shares upon the exercise or acquisition of stock under the
applicable Award has been registered under a then currently effective
registration statement under the Securities Act or (B) as to any particular
requirement, a determination is made by counsel for the 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 stock.

24.           Governing Law.  The validity and enforceability of this Plan
shall be governed by and construed in accordance with the laws of the State  of Delaware without regard to otherwise
governing principles of conflicts of law.

 19

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