Document:

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                                                                   EXHIBIT 10.36

                          FORM OF PETsMART.COM, INC.
                       2000 DIRECTORS' STOCK OPTION PLAN

1.   PURPOSES OF THE PLAN.

     The purposes of this Directors' Stock Option Plan are to attract and retain
the best available personnel for service as Directors of the Company, to provide
additional incentive to the Outside Directors of the Company to serve as
Directors, and to encourage their continued service on the Board. All options
granted hereunder shall be nonstatutory stock options.

2.   DEFINITIONS.

     As used herein, the following definitions shall apply:

     (a) "Affiliate" has the meaning given to such term in Rule 144(a)(1)
promulgated under the Securities Act of 1933, as amended.

     (b) "Board" means the Board of Directors of the Company or the com
pensation committee thereof.

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

     (d) "Common Stock" means the Common Stock of the Company.

     (e) "Company" means PETsMART.com, Inc. a Delaware corporation.

     (f) "Continuous Status As A Director" means the absence of any
interruption or termination of service as a Director.

     (g) "Corporate Transaction" means a dissolution or liquidation of the
Company, a sale of all or substantially all of the Company's assets, or a
merger, consolidation or other capital reorganization of the Company with or
into another corporation.

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

     (i) "Employee" means any person, including any officer or Director,
employed by the Company or any Subsidiary or Affiliate of the Company. The
payment of a director's fee by the Company shall not be sufficient in and of
itself to constitute "employment" by the Company.

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

     (k) "Option" means a nonstatutory stock option granted pursuant to the Plan
(i.e., options that are not intended to qualify as incentive stock options under
Section 422 of the Code).

     (l) "Optioned Stock" means the Common Stock subject to an Option.

     (m) "Optionee" means an Outside Director who receives an Option.

     (n) "Outside Director" means a Director who is not an Employee.

     (o) "Plan" means this 2000 Directors' Stock Plan.

     (p) "Share" means a share of the Common Stock, as adjusted in accordance
with Section 11 of the Plan.

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

3.   ELIGIBILITY.

     Options may be granted only to Outside Directors.  All Options shall be
automatically granted in accordance with the terms set forth in Section 6 below.

     The Plan shall not confer upon any Optionee any right with respect to
continuation of service as a Director or nomination to serve as a Director, nor
shall it interfere in any way with any rights which the Director or the Company
may have to terminate his or her directorship at any time.

4.   STOCK SUBJECT TO THE PLAN.

     Subject to the provisions of Section 12 of the Plan, the maximum aggregate
number of Shares which may be optioned and sold under the Plan is 300,000 Shares
of Common Stock (the "Pool").  The Shares may be authorized, but unissued, or
reacquired Common Stock.

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     If an Option should expire or become unexercisable for any reason without
having been exercised in full, the unpurchased Shares which were subject thereto
shall, unless the Plan has been terminated, become available for future grant
under the Plan.  In addition, any Shares of Common Stock that are retained by
the Com  pany upon exercise of an Option in order to satisfy the exercise price
for such Option, or any withholding taxes due with respect to such exercise,
shall be treated as not issued and shall continue to be available under the
Plan.  If Shares that were acquired upon exercise of an Option are subsequently
repurchased by the Company, such Shares shall not in any event be returned to
the Plan and shall not become available for future grant under the Plan.

5.   ADMINISTRATION OF THE PLAN.

     (a)  ADMINISTRATOR.  Except as otherwise required herein, the Plan shall be
administered by the Board.

     (b)  POWERS OF THE BOARD.  Subject to the provisions and restrictions of
the Plan, the Board shall have the authority, in its discretion:  (i) to
determine, upon review of relevant information and in accordance with Section
8(b) of the Plan, the fair market value of the Common Stock; (ii) to determine
the exercise price per Share of Options to be granted, which exercise price
shall be determined in accordance with Section 8 of the Plan; (iii) to
interpret the Plan; (iv) to prescribe, amend and rescind rules and regulations
relating to the Plan; (v) to authorize any person to execute on behalf of the
Company any instrument required to effectuate the grant of an Option previously
granted hereunder; and (vi) to make all other determinations deemed necessary or
advisable for the administration of the Plan.

     (c)  EFFECT OF BOARD'S DECISION.  All decisions, determinations and
interpretations of the Board shall be final and binding on all Optionees and any
other holders of any Options granted under the Plan.

     (d)  SUSPENSION OR TERMINATION OF OPTION.  If the Chief Executive Officer
or his or her designee reasonably believes that an Optionee has committed an
act of misconduct, such officer may suspend the Optionee's right to exercise any
option pending a determination by the Board (excluding the Outside Director
accused of such misconduct).  If the Board (excluding the Outside Director
accused of such misconduct) determines an Optionee has committed an act of
embezzlement, fraud, dishonesty, nonpayment of an obligation owed to the
Company, breach of fiduciary duty or deliberate disregard of the Company rules
resulting in loss, damage

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or injury to the Company, or if an Optionee makes an unauthorized disclosure of
any Company trade secret or confidential information, engages in any conduct
constituting unfair competition, induces any Company customer to breach a
contract with the Company or induces any principal for whom the Company acts as
agent to terminate such agency relationship, neither the Optionee nor his or her
estate shall be entitled to exercise any Option whatsoever. In making such
determination, the Board of Directors (excluding the Outside Director accused of
such misconduct) shall act fairly and shall give the Optionee an opportunity to
appear and present evidence on Optionee's behalf at a hearing before the Board
or a committee of the Board.

6.   PROCEDURE FOR GRANTS.

     All grants of Options hereunder shall be automatic and nondiscretionary and
shall be made strictly in accordance with the following provisions:

          (i)  No person shall have any discretion to select which Outside
Directors shall be granted Options or to determine the number of Shares to be
covered by Options granted to Outside Directors.

          (ii) Each Outside Director who becomes an Outside Director after the
effective date of this Plan shall be automatically granted an Option to purchase
25,000 Shares on the date on which such person first becomes an Outside
Director, whether through election by the stockholders of the Company or
appointment by the Board to fill a vacancy.

          (iii) Each Outside Director shall thereafter be automatically granted
an Option to purchase 12,500 Shares on the date of each Annual Meeting of the
Company's stockholders immediately following which such Outside Director is
serving on the Board, provided that, on such date, he or she shall have served
on the Board for at least six (6) months prior to the date of such Annual
Meeting.

          (iv) Notwithstanding the provisions of subsections (ii) and (iii)
hereof, in the event that a grant would cause the number of Shares subject to
outstanding Options plus the number of Shares previously purchased upon exercise
of Options to exceed the Pool, then each such automatic grant shall be for that
number of Shares determined by dividing the total number of Shares remaining
available for grant by the number of Outside Directors receiving an Option on
the automatic grant date. Any further grants shall then be deferred until such
time, if any, as additional Shares become available for grant under the Plan
through action of the stockholders to

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increase the number of Shares which may be issued under the Plan or through
cancellation or expiration of Options previously granted hereunder.

          (v)  Notwithstanding the provisions of subsections (ii) and (iii)
hereof, any grant of an Option made before the Company has obtained stockholder
approval of the Plan in accordance with Section 15 hereof shall be conditioned
upon obtaining such stockholder approval of the Plan in accordance with Section
15 hereof.

7.   VESTING AND EXERCISABILITY.

     The Option shall be fully vested and exercisable in its entirety
immediately upon grant. The Option shall be exercisable only while the Outside
Director remains a Director of the Company, except as set forth in Section 10
below.

8.   TERM OF OPTIONS.

     The term of each Option shall be ten (10) years from the date of grant
thereof unless an Option terminates sooner pursuant to Section 10 below.

9.   EXERCISE PRICE AND CONSIDERATION.

     (a)  EXERCISE PRICE.  The per Share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be 100% of the fair market value
per Share on the date of grant of the Option.

     (b)  FAIR MARKET VALUE.  The fair market value shall be determined by the
Board; provided however that in the event the Common Stock is traded on the
Nasdaq National Market or listed on a stock exchange, the fair market value per
Share shall be the closing sales price on such system or exchange on the date of
grant of the Option (or, in the event that the Common Stock is not traded on
such date, on the immediately preceding trading date), as reported in THE WALL
STREET JOURNAL, or if there is a public market for the Common Stock but the
Common Stock is not traded on the Nasdaq National Market or listed on a stock
exchange, the fair market value per Share shall be the mean of the bid and asked
prices of the Common Stock in the over-the-counter market on the date of grant,
as reported in THE WALL STREET JOURNAL (or, if not so reported, as otherwise
reported by the National Association of Securities Dealers Automated Quotation
("Nasdaq") System).

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     (c)  FORM OF CONSIDERATION.  The consideration to be paid for the Shares to
be issued upon exercise of an Option shall consist entirely of cash, check,
other Shares of Common Stock having a fair market value on the date of surrender
equal to the aggregate exercise price of the Shares as to which the Option shall
be exercised (which, if acquired from the Company, shall have been held for at
least six months), or any combination of such methods of payment and/or any
other consideration or method of payment as shall be permitted under
applicable corporate law.

10.  EXERCISE OF OPTION.

     (a) An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company.  Full payment may consist of any consideration and method of payment
allowable under Section 9(c) of the Plan.  Until the issuance (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the stock certificate evidencing such Shares,
no right to vote or receive dividends or any other rights as a stockholder shall
exist with respect to the Optioned Stock, notwithstanding the exercise of the
Option.  A share certificate for the number of Shares so acquired shall be
issued to the Optionee as soon as practicable after exercise of the Option.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 12 of the Plan.

     (b)  TERMINATION OF CONTINUOUS STATUS AS A DIRECTOR.  If an Outside
Director ceases to serve as a Director, he or she may, but only within ninety
(90) days after the date he or she ceases to be a Director of the Company,
exercise his or her Option to the extent that he or she was entitled to exercise
it at the date of such termination.  Notwithstanding the foregoing, in no event
may the Option be exercised after its term set forth in Section 8 has expired.
To the extent that such Outside Director was not entitled to exercise an Option
at the date of such termination, or does not exercise such Option (to the
extent he or she was entitled to exercise) within the time specified above,
the Option shall terminate and the Shares underlying the unexercised portion of
the Option shall revert to the Plan.

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11.  NONTRANSFERABILITY OF OPTIONS.

     The Option 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 or pursuant to a qualified domestic relations order (as defined by
the Code or the rules thereunder).  The designation of a beneficiary by an
Optionee does not constitute a transfer.  An Option may be exercised during
the lifetime of an Optionee only by the Optionee or a transferee permitted by
this Section.

12.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPO  RATE TRANSACTIONS.

     (a)  ADJUSTMENT.  Subject to any required action by the stockholders of the
Company, the number of shares of Common Stock covered by each outstanding
Option, the number of Shares of Common Stock set forth in Section 6 above, and
the number of Shares of Common Stock which have been authorized for issuance
under the Plan but as to which no Options have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option, as well
as the price per Share of Common Stock covered by each such outstanding Option,
shall be proportionately adjusted for any increase or decrease in the number of
issued Shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock (including
any such change in the number of Shares of Common Stock effected in connection
with a change in domicile of the Company) or any other increase or decrease in
the number of issued Shares of Common Stock effected without receipt of
consideration by the Company; provided however that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration."  Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

     (b)  CORPORATE TRANSACTIONS.  In the event of a Corporate Transaction,
each outstanding Option shall be assumed or an equivalent option shall be
substituted by the successor corporation or a Parent or Subsidiary of such
successor corporation, unless the successor corporation does not agree to assume
the outstand-

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ing Options or to substitute equivalent options, in which case the Options shall
terminate upon the consummation of the transaction.

     (c)  CERTAIN DISTRIBUTIONS.  In the event of any distribution to the
Company's stockholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per Share of Common Stock covered by each
outstanding Option to reflect the effect of such distribution.

13.  AMENDMENT AND TERMINATION OF THE PLAN.

     (a)  AMENDMENT AND TERMINATION.  The Board may amend or terminate the Plan
from time to time in such respects as the Board may deem advisable; provided
that, to the extent necessary and desirable to comply with Rule 16b-3 under the
Exchange Act (or any other applicable law or regulation), the Company shall
obtain approval of the stockholders of the Company to Plan amendments to the
extent and in the manner required by such law or regulation.

     (b)  EFFECT OF AMENDMENT OR TERMINATION.  Any such amend  ment or
termination of the Plan that would impair the rights of any Optionee shall not
affect Options already granted to such Optionee and such Options shall remain in
full force and effect as if this Plan had not been amended or terminated, unless
mutually agreed otherwise between the Optionee and the Board, which agreement
must be in writing and signed by the Optionee and the Company.

14.  OPTION AGREEMENT.

     Options shall be evidenced by written option agreements in such form as the
Board shall approve.

15.  STOCKHOLDER APPROVAL.

     If required by the Applicable Laws, continuance of the Plan shall be
subject to approval by the stockholders of the Company. Such stockholder
approval shall be obtained in the manner and to the degree required under the
Applicable Laws.

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16.  TERM OF PLAN; EFFECTIVE DATE.

     The Plan shall become effective on the effectiveness of the registration
statement under the Securities Act of 1933, as amended, relating to the
Company's initial public offering of securities.  It shall continue in effect
for a term of ten (10) years unless sooner terminated under Section 13 of the
Plan.

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                                                                   EXHIBIT 10.37

                          FORM OF PETsMART.COM, INC.
                       2000 EMPLOYEE STOCK PURCHASE PLAN

Section 1. General Purpose of Plan; Definitions.

               The name of this plan is the PETsMART.Com, Inc. 2000 Employee
Stock Purchase Plan (the "Plan"). The Plan was adopted by the Board (defined
below) on [    ], subject to the approval of the stockholders of the Company
(defined below), which approval was obtained on [    ]. The purpose of the Plan
is to provide Employees (defined below) of the Company (defined below), with the
opportunity to purchase Common Stock (defined below) through accumulated payroll
deductions. It is the intention of the Company that the Plan qualify as an
"employee stock purchase plan" within the meaning of Section 423 of the Code
(defined below), and that the provisions of the Plan be construed in a manner
consistent with the requirements of such Section of the Code.

               For purposes of the Plan, the following terms shall be defined as
set forth below:

               (a)  "Administrator" means the Board, or if and to the extent the
                     -------------
Board does not administer the Plan, the Committee in accordance with Section 11
below.

               (b)  "Board" shall mean the Board of Directors of the Company.
                     -----

               (c)  "Change in Capitalization" shall mean any increase,
                     ------------------------
reduction, change or exchange of Shares for a different number of shares and/or
kind of shares or other securities of the Company by reason of a
reclassification, recapitalization, merger, consolidation, reorganization,
issuance of warrants or rights, stock dividend, stock split or reverse stock
split, combination or exchange of Shares, repurchase of Shares, change in
corporate structure or otherwise.

               (d)  "Code" shall mean the Internal Revenue Code of 1986, as
                     ----
amended from time to time, or any successor thereto.

               (e)  "Committee" shall mean a committee appointed by the Board to
                     ---------
administer the Plan and to perform the functions set forth herein.

               (f)  "Common Stock" shall mean the common stock, $0.001 par
                     ------------
value, of the Company.
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               (g)  "Company" shall mean PETsMART.Com, Inc., a Delaware
                     -------
corporation or any Subsidiary of the Company.

               (h)  "Compensation" shall mean the fixed salary or wage paid by
                     ------------
the Company to an Employee as reported by the Company to the United States
government for Federal income tax purposes, including an Employee's portion of
salary deferral contributions pursuant to Section 401(k) of the Code and any
amount excludable pursuant to Section 125 of the Code, but excluding any
payments for overtime, shift premium, incentive compensation, bonuses,
commissions, severance pay, expense reimbursements or any credit or benefit
under any employee plan maintained by the Company.

               (i)  "Continuous Status as an Employee" shall mean the absence of
                     --------------------------------
any interruption or termination of service as an Employee. Continuous Status as
an Employee shall not be considered interrupted in the case of a leave of
absence agreed to in writing by the Company, as appropriate, provided that (x)
such leave is for a period of not more than 90 days or (y) reemployment with the
Company, as appropriate, is guaranteed by contract or statute upon expiration of
such leave.

               (j)  "Employee" shall mean any person who is customarily employed
                     --------
for at least twenty (20) hours per week and more than five (5) months in a
calendar year by the Company

               (k) "Effective Date" shall mean the date on which the Securities
                    --------------
and Exchange Commission declares the Company's Registration Statement (as
defined below) effective.

               (l)  "Enrollment Date" shall mean the first Trading Day of each
                     ---------------
Offering Period.

               (m)  "Fair Market Value" as of a particular date shall mean the
                     -----------------
fair market value of the Shares as determined by the Administrator in its sole
discretion; provided, however, that (i) if the Shares are admitted to trading on
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a national securities exchange, fair market value of the Shares on any date
shall be the closing sale price reported for the Shares on such exchange on such
date or, if no sale was reported on such date, on the last date preceding such
date on which a sale was reported, (ii) if the Shares are admitted to quotation
on the National Association of Securities Dealers Automated Quotation ("Nasdaq")
System or other comparable quotation system and have been designated as a
National Market System ("NMS") security, fair market value of the Shares on any
date shall be the closing sale price reported for the Shares on such system on
such date or, if no

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sale was reported on such date, on the last date preceding such date on which a
sale was reported, or (iii) if the Shares are admitted to quotation on the
Nasdaq System but have not been designated as an NMS security, fair market value
of the Shares on any date shall be the average of the highest bid and lowest
asked prices of the Shares on such system on such date or, if no bid and ask
prices were reported on such date, on the last date preceding such date on which
both bid and ask prices were reported. Notwithstanding anything to the contrary
contained herein, for purposes of the Enrollment Date of the first Offering
Period under the Plan, fair market value of the Shares shall be the initial
price to the public as set forth in the final prospectus included within the
registration statement in Form S-1 filed with the Securities and Exchange
Commission for the initial underwritten public offering of the Stock (the
"Registration Statement").

               (n)  "Offering Period" shall mean a period as described in
                     ---------------
Section 3 hereof.

               (o)  "Participant" shall mean an Employee who elects to
                     -----------
participate in the Plan pursuant to Section 4 hereof.

               (p)  "Purchase Date" shall mean the last Trading Day of each
                     -------------
Offering Period.

               (q)  "Purchase Price" shall mean an amount equal to the lesser
                     --------------
of (i) 85% of the Fair Market Value of a Share on the Enrollment Date or (ii)
85% of the Fair Market Value of a Share on the Purchase Date.

               (r)  "Share" shall mean a share of Common Stock.
                     -----

               (s)  "Subsidiary" shall mean any corporation (other than the
                     ----------
Company) in an unbroken chain of corporations, beginning with the Company, if,
at the time of the granting of an option, each of the corporations other than
the last corporation in the unbroken chain 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, whether or not such corporation now exists or is
hereafter organized or acquired by the Company or a Subsidiary.

               (t)  "Trading Day" shall mean a day on which national stock
                     -----------
exchanges and the Nasdaq System are open for trading.

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Section 2.  Eligibility.

               (a)  Subject to the limitations set forth in Section 2(b) hereof,
any person who is an Employee as of an Enrollment Date shall be eligible to
participate in the Plan in accordance with Section 4 hereof and shall be granted
an option for the Offering Period commencing on such Enrollment Date.

               (b)  Notwithstanding any provision of the Plan to the contrary,
no Employee shall be granted an option under the Plan (i) if such Employee (or
any other person whose stock would be attributed to such Employee pursuant to
Section 424(d) of the Code) would own stock and/or hold outstanding options to
purchase stock possessing five percent (5%) or more of the total combined voting
power or value of all classes of stock of the Company, or (ii) if such grant
would permit such Employee's right to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company, to accrue
at a rate that exceeds twenty-five thousand dollars ($25,000) of Fair Market
Value of such stock (determined at the time such option is granted) for any
calendar year in which such option would be outstanding. Any amounts received
from an Employee that cannot be used to purchase Shares as a result of this
limitation shall be returned as soon as reasonably practicable to the Employee
without interest.

Section 3.  Offering Periods.

               The Plan shall be implemented by a series of consecutive six-
month Offering Periods, with a new Offering Period commencing on the first
Trading Day on or after May 15 and November 15 of each year, or at such other
time or times as may be determined by the Administrator, and ending on the last
Trading Day on or before the following November 14 and May 14, respectively, or
at such other time or times as may be determined by the Administrator; provided,
                                                                       --------
however, that the first Offering Period under the Plan shall commence with the
-------
first Trading Day on or after the date on which the Securities and Exchange
Commission declares the Company's Registration Statement effective and ending on
the last Trading Day on or before the May 14 or November 14 immediately
thereafter. The Plan shall continue until terminated in accordance with Section
17 hereof. Subject to Section 17 hereof, the Administrator shall have the power
to change the duration and/or the frequency of Offering Periods with respect to
future offerings and shall use its best efforts to notify Employees of any such
change at least fifteen (15) days prior to the scheduled beginning of the first
Offering Period to be affected. In no event shall any option

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granted hereunder be exercisable more than twenty-seven (27) months from its
date of grant.

Section 4.  Enrollment; Participation.

               (a)  On each Enrollment Date, the Company shall commence an
offering by granting each eligible Employee who has elected to participate in
such Offering Period pursuant to Section 4(b) hereof an option to purchase on
the Purchase Date of such Offering Period up to a number of Shares determined by
dividing each Employee's payroll deductions accumulated prior to such Purchase
Date and retained in the Participant's account as of such Purchase Date by the
applicable Purchase Price; provided that in no event shall a Participant be
permitted to purchase during each Offering Period more than 2,500 Shares
(subject to any adjustment pursuant to Section 16 hereof), provided, further,
                                                           --------  -------
that such purchase shall be subject to the limitations set forth in Sections
2(b) and 10 hereof.  Exercise of the option shall occur as provided in Section 6
hereof, unless the Participant has withdrawn pursuant to Section 8 hereof. The
option with respect to an Offering Period shall expire on the Purchase Date with
respect to such Offering Period or the withdrawal date if earlier.

               (b)  Subject to the limitations set forth in Section 2(b) hereof,
an Employee may elect to become a Participant in the Plan by completing and
filing a subscription agreement authorizing the Company to make payroll
deductions (as set forth in Section 5 hereof) at least five (5) business days
prior to the applicable Enrollment Date unless a later time for filing the
subscription agreement is set by the Administrator for all Employees. Unless a
Participant, by giving written notice (or such other notice as may from time to
time be prescribed by the Administrator), elects not to participate with respect
to any subsequent Offering Period, the Participant shall be deemed to have
accepted each new offer and to have authorized payroll deductions in respect
thereof during each subsequent Offering Period.

Section 5.  Payroll Deductions.

               (a)  An Employee may, in accordance with rules and procedures
adopted by the Administrator and subject to the limitation set forth in Section
2(b) hereof, authorize payroll deductions in amounts which are not less than one
percent (1%) and not more than fifteen percent (15%) of such Employee's
Compensation on each payday during the Offering Period. Payroll deductions shall

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commence on the first payroll paid following the Enrollment Date, and shall end
on the last payroll paid prior to the Purchase Date of the Offering Period to
which the subscription agreement is applicable, unless sooner terminated by the
Participant's withdrawal from the Plan or termination of the Participant's
Continuous Status as an Employee as provided in Section 8 hereof. A Participant
may increase or decrease his or her rate of payroll deductions at any time
during an Offering Period, but not more frequently than once during each
Offering Period, or as may be determined by the Administrator prior to the
commencement of an Offering Period, by giving written notice (or such other
notice as may from time to time be prescribed by the Administrator). The change
in rate shall be effective the first full payroll period following five (5)
business days after the Company's receipt of the new subscription agreement
unless the Company elects to process a given change in rate of payroll
deductions more quickly.

               (b)  All payroll deductions made by a Participant shall be
credited to such Participant's account under the Plan and shall be withheld in
whole percentages only. A Participant may not make any additional payments into
such account.

               (c)  Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 2(b) hereof, a
Participant's rate of payroll deductions may be decreased by the Company to zero
percent (0%) at any time during an Offering Period. Payroll deductions shall
recommence at the rate provided for in such Participant's subscription agreement
at the beginning of the first Offering Period which is scheduled to end the
following calendar year, unless a Participant increases or decreases the rate of
his or her payroll deductions as provided in Section 5(a) hereof, or terminates
his or her participation in the Plan as provided in Section 8 hereof.

Section 6.  Purchase of Shares.

               Unless a Participant withdraws from the Plan as provided in
Section 8 hereof, such Participant's election to purchase Shares shall be
exercised automatically on each Purchase Date, and the maximum number of whole
Shares subject to option shall be purchased for each Participant at the
applicable Purchase Price with the accumulated payroll deductions in each
Participant's account as of the Purchase Date. No fractional Shares may be
purchased hereunder. Any payroll deductions accumulated in a Participant's
account following the purchase of Shares on any Purchase Date that are not
sufficient to purchase a full Share shall be retained in

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the Participant's account for the subsequent Offering Period, subject to earlier
withdrawal by the Participant as provided in Section 8 hereof. Any additional
amounts remaining in a Participant's account following the purchase of Shares on
any Purchase Date that are equal to, or in excess of, the amount required under
this Section 6 to purchase at least one full Share shall be returned to the
Participant as soon as reasonably practicable following the Purchase Date.
During a Participant's lifetime, a Participant's option to purchase Shares
hereunder is exercisable only by the Participant.

Section 7.  Delivery of Shares; Withdrawal or Sale of Shares.

               As promptly as reasonably practicable after each Purchase Date,
the Company shall either arrange the delivery of the whole Shares purchased on
such date by each Participant to the Participant's brokerage account or arrange
the delivery to the Participant of a share certificate representing such Shares.

Section 8.  Withdrawal; Termination of Employment.

               (a)  A Participant may withdraw all, but not less than all, of
the payroll deductions credited to such Participant's account (that have not
been used to purchase Shares) under the Plan by giving written notice to the
Company at least five (5) business days prior to the Purchase Date of the
Offering Period in which the withdrawal occurs. Withdrawal of payroll deductions
shall be deemed to be a withdrawal from the Plan. All of the payroll deductions
credited to such Participant's account (that have not been used to purchase
Shares) shall be paid to such Participant promptly after receipt of such
Participant's notice of withdrawal, and such Participant's eligibility to
participate in the Plan for the Offering Period in which the withdrawal occurs
shall be automatically terminated. No further payroll deductions for the
purchase of Shares shall be made for such Participant during such Offering
Period. If a Participant withdraws from an Offering Period, payroll deductions
for such Participant shall not resume at the beginning of the succeeding
Offering Period unless the Participant timely delivers to the Company a new
subscription agreement in accordance with the provisions of Section 4 hereof. A
Participant's withdrawal from an Offering Period shall not have any effect upon
a Participant's eligibility to participate in any similar plan which may
hereafter be adopted by the Company or in succeeding Offering Periods which
commence after termination of the Offering Period from which the Participant
withdraws.

                                       7
<PAGE>

               (b)  Upon termination of a Participant's Continuous Status as an
Employee during the Offering Period for any reason, including Participant's
voluntary termination, retirement or death, all the payroll deductions credited
to such Participant's account (that have not been used to purchase Shares) shall
be returned to such Participant or, in the case of such Participant's death, to
the person or persons entitled thereto under Section 12 hereof, and such
Participant's option shall be automatically terminated. Such termination shall
be deemed a withdrawal from the Plan.

Section 9.  Interest.

               No interest shall accrue on or be payable by the Company with
respect to the payroll deductions of a Participant in the Plan.

Section 10.  Stock Subject to Plan.

               (a)  Subject to adjustment upon Changes in Capitalization of the
Company as provided in Section 16 hereof, the maximum number of Shares which
shall be reserved for sale under the Plan shall be 1,000,000 Shares, plus an
annual increase to be added on each of the first five anniversaries of the
Effective Date equal to the lesser of (i) 500,000 shares, (ii) 3% of the
outstanding shares on such date or (iii) a lesser amount determined by the
Board. Such Shares shall be available as of the first day of the first Offering
Period that commences in each such fiscal year. The Shares may consist, in whole
or in part, of authorized and unissued Shares or treasury Shares. If the total
number of Shares which would otherwise be subject to options granted pursuant to
Section 2(a) hereof on an Enrollment Date exceeds the number of Shares then
available under the Plan (after deduction of all Shares for which options have
been exercised or are then outstanding), the Administrator shall make a pro rata
allocation of the Shares remaining available for option grant in as uniform a
manner as shall be practicable and as it shall determine to be equitable. In
such event, the Administrator shall give written notice to each Participant of
such reduction of the number of option Shares affected thereby and shall
similarly reduce the rate of payroll deductions, if necessary.

               (b)  No Participant shall have rights as a stockholder with
respect to any option granted hereunder until the date on which such Shares
shall be deemed to have been purchased by the Participant in accordance with
Section 6 hereof.

                                       8
<PAGE>

               (c)  Shares purchased on behalf of a Participant under the Plan
shall be registered in the name of the Participant or, if requested in writing
by the Participant, in the names of the Participant and the Participant's
spouse.

Section 11.  Administration.

               The Plan shall be administered by the Board or a Committee. The
Board or the Committee shall have full power and authority, subject to the
provisions of the Plan, to promulgate such rules and regulations as it deems
necessary for the proper administration of the Plan, to interpret the provisions
and supervise the administration of the Plan, and to take all action in
connection therewith or in relation thereto as it deems necessary or advisable.
Any decision reduced to writing and signed by a majority of the members of the
Committee shall be fully effective as if it had been made at a meeting duly
held. The Company shall pay all expenses incurred in the administration of the
Plan. No member of the Board or Committee shall be personally liable for any
action, determination, or interpretation made in good faith with respect to the
Plan, and all members of the Board or Committee shall be fully indemnified by
the Company with respect to any such action, determination or interpretation.

               All decisions, determinations and interpretations of the Board or
Committee shall be final and binding on all persons, including the Company, its
Parent, any Subsidiary, the Employee (or any person claiming any rights under
the Plan through any Employee) and any stockholder of the Company, its Parent or
any Subsidiary.

Section 12.  Designation of Beneficiary.

               (a)  A Participant may file, on forms supplied by and delivered
to the Company, a written designation of a beneficiary who is to receive Shares
and/or cash, if any, remaining in such Participant's account under the Plan in
the event of the Participant's death.

               (b)  Such designation of beneficiary may be changed by the
Participant at any time by written notice. In the event of the death of a
Participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such Participant's death, the Company shall
deliver the balance of the Shares and/or cash credited to Participant's account
to the executor or administrator of the estate of the Participant or, if no such
executor or administrator has

                                       9
<PAGE>

been appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such Shares and/or cash to the spouse or to any one or
more dependents or relatives of the Participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may
designate.

Section 13.  Transferability.

               Neither payroll deductions credited to a Participant's account
nor any rights with regard to the exercise of an option or any rights to receive
Shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by the laws of descent and distribution or as
provided in Section 12 hereof) by the Participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect,
except that the Company may treat such act as an election to withdraw funds in
accordance with Section 8 hereof.

Section 14.  Use of Funds.

               All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall
not be obligated to segregate such payroll deductions.

Section 15.  Reports.

               Individual accounts shall be maintained by the Company for each
Participant in the Plan. Statements of account shall be given to each
Participant at least annually which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of Shares purchased and the
remaining cash balance, if any.

Section 16.  Effect of Certain Changes.

               In the event of a Change in Capitalization or the distribution of
an extraordinary dividend, the Administrator shall conclusively determine the
appropriate equitable adjustments, if any, to be made under the Plan, including
without limitation adjustments to the number of Shares which have been
authorized for issuance under the Plan, but have not yet been placed under
option, as well as the Purchase Price of each option under the Plan which has
not yet been exercised. In the event of a Change in Control of the Company, the
Offering Period shall terminate unless otherwise provided by the Administrator.

                                       10
<PAGE>

Section 17.  Amendment or Termination.

               The Board may at any time terminate or amend the Plan.  Except as
provided in Section 16 hereof, no such termination may adversely affect options
previously granted and no amendment may make any change in any option
theretofore granted which adversely affects the rights of any Participant.  To
the extent necessary to comply with Section 423 of the Code (or any successor
rule or provision or any other applicable law, regulation or stock exchange
rule), the Company shall obtain stockholder approval in such a manner and to
such a degree as required.

Section 18.  Notices.

               All notices or other communications by a Participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when they are received in a timely manner in the form specified by the
Company at the location, or by the person, designated by the Company for the
receipt thereof.

Section 19.  Regulations and Other Approvals; Governing Law.

               (a)  This Plan and the rights of all persons claiming hereunder
shall be construed and determined in accordance with the laws of the State of
California without giving effect to the choice of law principles thereof, except
to the extent that such law is preempted by Federal law.

               (b)  The obligation of the Company to sell or deliver Shares with
respect to options granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state
securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Administrator.

Section 20.  Withholding of Taxes.

               If the Participant makes a disposition, within the meaning of
Section 424(c) of the Code of any Share or Shares issued to Participant pursuant
to Participant's exercise of an option, and such disposition occurs within the
two-year period commencing on the day after the Enrollment Date or within the
one-year

                                       11
<PAGE>

period commencing on the day after the Purchase Date, Participant shall, within
ten (10) days of such disposition, notify the Company thereof and thereafter
immediately deliver to the Company any amount of Federal, state or local income
taxes and other amounts which the Company informs the Participant the Company
may be required to withhold.

Section 21.  Effective Date.

               Subject to the approval of the Plan by the stockholders of the
Company within twelve (12) months before or after the date the Plan is adopted
by the Board, the Plan shall be effective as of the first Trading Day on or
after the date on which the Securities and Exchange Commission declares the
Company's Registration Statement effective (the "Effective Date").

Section 22.  Term of Plan.

               No option shall be granted pursuant to the Plan and no Offering
Period shall commence on or after the tenth anniversary of the Effective Date,
but options theretofore granted may extend beyond that date.

                                       12

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