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                                                                   EXHIBIT 10.20

The Securities represented by this certificate have not been registered under
the Securities Act of 1933 and are restricted securities within the meaning
thereof. Such securities may not be sold or transferred except pursuant to a
Registration Statement under such Act which is effective and current with
respect to such securities or pursuant to an opinion of counsel reasonably
satisfactory to the issuer of such securities that such sale or transfer is
exempt from the registration requirements of such Act.

               WARRANT FOR THE PURCHASE OF SHARES OF COMMON SHARES

No. LT-1
Shares 129,695

        FOR VALUE RECEIVED, BioTime, Inc. the "Company"), a California
corporation, hereby certifies that Ladenburg Thalmann & Co. Inc., or its
permitted assigns are entitled to purchase from the Company, at any time or from
time to time commencing August 12, 2002, and prior to 5:00 p.m., New York City
time then current, on August 11, 2007, 129,695 fully paid and non-assessable
common shares, no par value, of the Company at the purchase price of $1,34 per
share. (Hereinafter, (i) said common shares, together with any other equity
securities which may be issued by the Company with respect thereto or in
substitution therefor, are referred to as the "Common Stock," (ii) the shares of
the Common Stock purchasable hereunder are referred to as the "Warrant Shares,"
(iii) the aggregate purchase price payable hereunder for the Warrant Shares is
referred to as the "Aggregate Warrant Price," (iv) the price payable hereunder
for each of the shares of the Warrant Shares is referred to as the "Per Share
Warrant Price" and (v) this warrant and all warrants hereafter issued in
exchange or substitution for this warrant are referred to as the "Warrants.")
The Aggregate Warrant Price is not subject to adjustment. The Per Share Warrant
Price is subject to adjustment as hereinafter provided; in the event of any such
adjustment, the number of Warrant Shares shall be adjusted by dividing the
Aggregate Warrant Price by the Per Share Warrant Price in effect immediately
after such adjustment.

1.   Exercise of Warrant.

     This Warrant may be exercised, in whole at any time or in part from time to
     time, commencing August 12, 2002 (the "Commencement Date"), and prior to
     5:00 p.m., New York City time then current, on August 11, 2007 (the
     "Expiration Date"), by the holder of this Warrant (the "Holder") by the
     surrender of this Warrant (with the subscription form at the end hereof
     duly executed) at the address set forth in Subsection 10(a) hereof,
     together with proper payment of the Aggregate Warrant Price, or the
     proportionate part thereof if this Warrant is exercised in part. Payment
     for the Warrant Shares shall be made by certified or official bank check,
     payable to the order of the Company. If this Warrant is exercised in part,
     this Warrant must be exercised for a number of whole shares of the Common
     Stock, and if this Warrant is exercised in part prior to the Expiration
     Date, the Holder is entitled to receive a new Warrant covering the number
     of Warrant Shares and Warrant Price in respect of which this Warrant has
     not been exercised. Upon such exercise and surrender of this Warrant, the
     Company will (i) issue a certificate or certificates in the name of the
     Holder for the number of whole shares of the Common Stock to which the
     Holder shall be entitled and, if this Warrant is exercised in whole, in
     lieu of any fractional share of the Common Stock to which the

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     Holder shall be entitled, pay cash equal to the fair value of such
     fractional share (determined in such reasonable manner as the Board of
     Directors of the Company shall determine), and (ii) deliver the other
     securities and properties receivable upon the exercise of this Warrant, or
     the proportionate part thereof if this Warrant is exercised in part,
     pursuant to the provisions of this Warrant.

2.   Reservation of Warrant Shares.

     The Company agrees that, prior to the expiration of this Warrant, the
     Company will at all times have authorized and in reserve, and will keep
     available, solely for issuance or delivery upon the exercise of this
     Warrant, such number of shares of the Common Stock and such amount of other
     securities and properties as from time to time shall be deliverable to the
     Holder upon the exercise of this Warrant, free and clear of all
     restrictions on sale or transfer (except such as may be imposed under
     applicable federal and state securities laws) and free and clear of all
     preemptive rights and all other rights to purchase securities of the
     Company.

3.   Protection Against Dilution.

     (a) If, at any time or from time to time after the date of this Warrant,
     the Company shall distribute to the holders of its outstanding Common
     Stock, (i) securities, other than shares of Common Stock, or (ii) property,
     other than cash dividends paid in conformity with past practice, without
     payment therefor, with respect to Common Stock, then, and in each such
     case, the Holder, upon the exercise of this Warrant, shall be entitled to
     receive the securities and property which the Holder would have held on the
     date of such exercise if, on the date of this Warrant, the Holder had been
     the holder of record of the number of shares of the Common Stock subscribed
     for upon such exercise and, during the period from the date of this Warrant
     to and including the date of such exercise, had retained such shares and
     the securities and properties receivable by the Holder during such period.

     (b) If, at any time or from time to time after the date of this Warrant,
     the Company shall (i) pay a dividend or make a distribution on its capital
     stock in shares of Common Stock, (ii) subdivide its outstanding shares of
     Common Stock into a greater number of shares, (iii) combine its outstanding
     shares of Common Stock into a smaller number of shares or (iv) issue by
     reclassification of its Common Stock any shares of capital stock of the
     Company, the Per Share Warrant Price in effect immediately prior to such
     action shall be adjusted so that the Holder of any Warrant thereafter
     exercised shall be entitled to receive the number of shares of Common Stock
     or other capital stock of the Company which he would have owned or been
     entitled to received immediately following the happening of any of the
     events described above had such Warrant been exercised immediately prior
     thereto. An adjustment made pursuant to this (b) shall become effective
     immediately after the record date in the case of a dividend or distribution
     and shall become effective immediately after the effective date in the case
     of a subdivision, combination or reclassification. If, as a result of an
     adjustment made pursuant to this (b), the holder of any Warrant thereafter
     surrendered for exercise shall become entitled to receive shares of two or
     more classes of capital stock or shares of Common Stock and other capital
     stock of the Company, the Board of Directors (whose determination shall be
     conclusive and shall be described in a written notice to the Holder
     of any Warrant promptly after such adjustment) shall determine the
     allocation of the adjusted

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     Per Share Warrant Price between or among shares of such classes or capital
     stock or shares of Common Stock and other capital stock.

     (c) In case of any consolidation or merger to which the Company is a party
     other than a merger or consolidation in which the Company is the continuing
     corporation, or in case of any sale or conveyance of the property of the
     Company as an entirety or substantially as an entirety to another entity,
     or in the case of any statutory exchange of securities with another entity
     (including any exchange effectuated in connection with a merger of any
     other corporation with the Company), the Holder of this Warrant shall have
     the right thereafter to convert this Warrant into, or to exchange this
     Warrant for, a Warrant of like tenor to purchase the kind and amount of
     securities, cash or other property which he would have owned or have been
     entitled to receive immediately after such consolidation, merger, statutory
     exchange, sale or conveyance had this Warrant been exercised immediately
     prior to the effective date of such consolidation, merger, statutory
     exchange, sale or conveyance and in any such case, if necessary,
     appropriate adjustment shall be made in the application of the provisions
     set forth in this Section 3 with respect to the rights and interests
     thereafter of the Holder of this Warrant to the end that the provisions set
     forth in this Section 3 shall thereafter correspondingly be made
     applicable, as nearly as may reasonably be, in relation to any shares of
     stock or other securities or property thereafter deliverable on the
     exercise of this Warrant. The above provisions of this 3(f) shall similarly
     apply to successive consolidations, mergers, statutory exchanges, sales or
     conveyances. Notice of any such consolidation, merger, statutory exchange,
     sale or conveyance, and of said provisions so proposed to be made, shall be
     mailed to the Holder not less than 20 days prior to such event. A sale of
     all or substantially all of the assets of the Company for a consideration
     consisting primarily of securities shall be deemed a consolidation or
     merger for the foregoing purposes.

     (d) No adjustment in the Per Share Warrant Price shall be required unless
     such adjustment would require an increase or decrease of at least $0.05 per
     share of Common Stock; provided, however, that any adjustments which by
     reason of this paragraph are not required to be made shall be carried
     forward and taken into account in any subsequent adjustment. All
     calculations under this Section 3 shall be made to the nearest cent or to
     the nearest 1/100th of a share, as the case may be. Anything in this
     Section 3 to the contrary notwithstanding, the Company shall be entitled to
     make such reductions in the Per Share Warrant Price, in addition to those
     required by this Section 3, as it in its discretion shall deem to be
     advisable in order that any stock dividend, subdivision of shares or
     distribution of rights to purchase stock or securities convertible or
     exchangeable for stock hereafter made by the Company to its shareholders
     shall not be taxable.

     (e) Whenever the Per Share Warrant Price is adjusted as provided in this
     Section 3 and upon any modification of the rights of the Holder of this
     Warrant in accordance with this Section 3, the Company shall, at its own
     expense, within ten (10) days of such adjustment or modification, deliver
     to the holder of this Warrant a certificate of the Principal Financial
     Officer of the Company setting forth the Per Share Warrant Price and the
     number of Warrant Shares after such adjustment or the effect of such
     modification, a brief statement of the facts requiring such adjustment or
     modification and the manner of computing the same.

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     (f) If the Board of Directors of the Company shall declare any dividend or
     other distribution in cash, securities of any kind (including but not
     limited to options, warrants, or other rights to acquire Common Stock or
     other capital stock of the Company), or other property with respect to the
     Common Stock, other than distributions of cash out of earned surplus, the
     Company shall mail notice thereof to the Holder not less than 10 days prior
     to the record date fixed for determining shareholders entitled to
     participate in such dividend or other distribution.

4.   Fully Paid Stock; Taxes.

     The Company agrees that the shares of the Common Stock represented by each
     and every certificate for Warrant Shares delivered on the exercise of this
     Warrant in accordance with the terms hereof shall, at the time of such
     delivery, be validly issued and outstanding, fully paid and non-assessable
     and not subject to preemptive rights or other contractual rights to
     purchase securities of the Company, and the Company will take all such
     actions as may be necessary to assure that the par value or stated value,
     if any, per share of the Common Stock is at all times equal to or less than
     the then Per Share Warrant Price. The Company further covenants and agrees
     that it will pay, when due and payable, any and all federal and state
     stamp, original issue or similar taxes which may be payable in respect of
     the issue of any Warrant Share or certificate therefor.

5.   Registration Under Securities Act of 1933.

     (a) The Company shall within fifteen business days after the termination of
     the offering of Common Stock in connection with which this Warrant was
     issued (the "Filing Date"), prepare and file a registration statement under
     the Securities Act of 1933 (the "Act") covering all or any of the Warrant
     Shares. The Company will (i) promptly notify the Holder and all other
     registered holders, if any, of other Warrants and/or Warrant Shares that
     such registration statement was filed, (ii) cause such registration
     statement to cover all Warrant Shares which it has been so requested to
     include, (iii) use its best efforts to cause such registration statement to
     become effective as soon as practicable and to remain effective and current
     and (iv) take all other action necessary under any federal or state law or
     regulation of any governmental authority to permit all Warrant Shares which
     it has been so requested to include in such registration statement to be
     sold or otherwise disposed of and will maintain such compliance with each
     such federal and state law and regulation of any governmental authority for
     the period necessary for the Holder and such Holders to effect the proposed
     sale or other disposition; provided, however, that the Company shall not be
     required to file more than two such registration statements. In the event
     that the Registration Statement is not filed with the SEC by the Filing
     Date or does not become effect or is not maintained effective for the
     period required, then the Holder shall have the right, until the
     Registration Statement is so filed or becomes effective, to convert this
     Warrant (without the payment of the Warrant Price) into a number of Warrant
     Shares equal to the product of (x) the excess of the market price of the
     Common Stock on the date of surrender of the Warrant and the exercise
     subscription form over the Per Share Warrant Price and (y) the number of
     shares subject to issuance upon exercise of the Warrant, divided by the
     market price of the Common Stock on such date

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     (b) The Company agrees that if, at any time, and from time to time, the
     Board of Directors of the Company shall authorize the filing of a
     registration statement under the Act in connection with the proposed offer
     of any of its securities by it or any of its shareholders, other than a
     registration statement on Form S-8 or other form for an employee stock
     option, stock purchase, or other employee benefit plan, or on Form S-4 or
     any other form in connection with any merger, acquisition, consolidation,
     or reorganization, and otherwise than pursuant to Section 5(a) of this
     Warrant any such registration statement shall be deemed a Subsequent
     Registration Statement" and the Company will (i) promptly notify the Holder
     and all other registered Holders, if any, of other Warrants and/or Warrant
     Shares that such Subsequent Registration Statement will be filed and that
     the Warrant Shares which are then held, and/or which may be acquired upon
     the exercise of the Warrants, by the Holder and such Holders will be
     included in such Subsequent Registration Statement at the Holder's and such
     Holders' request, (ii) cause such Subsequent Registration Statement to
     cover all Warrant Shares which it has been so requested to include, and
     (iii) take all other action necessary under any federal or state law or
     regulation of any governmental authority to permit all Warrant Shares which
     it has been so requested to include in such Subsequent Registration
     Statement to be sold or otherwise disposed of and will maintain such
     compliance with each such federal and state law and regulation of any
     governmental authority for the period necessary for the Holder and such
     Holders to effect the proposed sale or other disposition. Notwithstanding
     the foregoing, if the offering of the Company's securities is to be made
     through underwriters, (a) the Company shall not be required to include in
     the Subsequent Registration Statement any Warrant Shares if and to the
     extent that the managing underwriter determines that such inclusion would
     adversely affect such offering or would result in a reduction of the amount
     of securities to be sold for the account of the Company, and (b) all
     Holders proposing to include their Warrant Shares in such Subsequent
     Registration Statement shall enter into an underwriting agreement in
     customary form with the underwriter or underwriters selected for
     underwriting by the Company, and if any holder of Warrant Shares
     disapproves of the terms of any such underwriting, such holder may elect to
     withdraw therefrom by written notice to the Company and the underwriter.
     Any Warrant Shares excluded or withdrawn from such underwriting shall be
     withdrawn from such registration.

     (c) Whenever the Company is required pursuant to the provisions of this
     Section 5 to include Warrant Shares in a registration statement, the
     Company shall (i) furnish each Holder of any such Warrant Shares and each
     underwriter of such Warrant Shares with such copies of the prospectus,
     including the preliminary prospectus, conforming to the Act in order to
     facilitate the sale or distribution of the Warrant Shares, (ii) use its
     best efforts to register or qualify such Warrant Shares under the blue sky
     laws (to the extent applicable) of such jurisdiction or jurisdictions as
     the Holders of any such Warrant Shares and each underwriter of Warrant
     Shares being sold by such Holders shall reasonably request and (iii) take
     such other actions as may be reasonably necessary or advisable to enable
     such Holders and such underwriters to consummate the sale or distribution
     in such jurisdiction or jurisdictions in which such Holders shall have
     reasonably requested that the Warrant Shares be sold.

     (d) The Company shall pay all expenses incurred in connection with any
     registration or other action pursuant to the provisions of this Section,
     including the attorneys' fees and expenses of the Holder(s) of the Warrant
     Shares covered by such registration incurred in connection with such
     registration or other action, other than underwriting discounts or

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     other broker-dealer commissions and fees and applicable transfer taxes
     relating to the Warrant Shares; provided, however, that the Company shall
     not be required to pay any registration expenses if, as a result of the
     withdrawal of a request for registration by holders of Warrant Shares, the
     registration statement does not become effective, in which case the holders
     of Warrant Shares withdrawing a request for registration shall bear such
     registration expenses pro rata on the basis of the number of shares for
     which registration is requested. Notwithstanding any other provision of
     this Warrant to the contrary, in the event any jurisdiction in which
     Warrant Shares shall be qualified imposes a non-waivable requirement that
     expenses incurred in connection with the qualification of the securities be
     borne by selling shareholders, such expenses shall be payable pro rata by
     the selling shareholders; provided that holders of not less than two-thirds
     of the Warrant Shares may elect to exclude such jurisdiction from the
     jurisdictions in which the Warrant Shares are qualified. All selling
     expenses shall be borne by the holders of the securities registered, pro
     rata on the basis of the number of shares registered.

     (e) Each holder of Warrant Shares to be included in any registration
     statement shall furnish to the Company, upon request by the Company, such
     information regarding such holder and the distribution proposed by such
     holder as shall be required to be included in any registration statement,
     prospectus, offering circular or other document in connection with any
     registration, and the Company may exclude from such registration the
     Warrant Shares owned by any holder who fails to provide such information in
     a timely manner.

     (f) The market price of Common Stock shall mean the price of a share of
     Common Stock on the relevant date, determined on the basis of the last
     reported sale price of the Common Stock as reported on the American Stock
     Exchange (the "AMEX") or, if there is no such reported sale on the day in
     question, on the basis of the average of the closing bid and asked
     quotations as so reported, or, if the Common Stock is not listed on the
     AMEX, the last reported sale price of the Common Stock on such other
     national securities exchange or the Nasdaq Stock Market, upon which the
     Common Stock is listed, or, if the Common Stock is not listed on any
     national securities exchange or Nasdaq Stock Market, on the basis of the
     average of the closing bid and asked quotations on the day in question in
     the over-the-counter market as reported by the National Association of
     Securities Dealers' Automated Quotations System, or, if not so quoted, as
     reported by National Quotation Bureau, Incorporated or a similar
     organization.

6.   Indemnification.

     (a) The Company agrees to indemnify and hold harmless each selling holder
     of Warrant Shares and each person who controls any such selling holder
     within the meaning of Section 15 of the Act, and each and all of them, from
     and against any and all losses, claims, damages, liabilities or actions,
     joint or several, to which any selling holder of Warrant Shares or they or
     any of them may become subject under the Act or otherwise and to reimburse
     the persons indemnified as above for any legal or other expenses (including
     the cost of any investigation and preparation) incurred by them in
     connection with any litigation or threatened litigation, whether or not
     resulting in any liability, but only insofar as such losses, claims,
     damages, liabilities or actions arise out of, or are based upon, (i) any
     untrue statement or alleged untrue statement of a material

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     fact contained in any registration statement pursuant to which Warrant
     Shares were registered under the Act (hereinafter called a "Registration
     Statement"), any preliminary prospectus, the final prospectus or any
     amendment or supplement thereto (or in any application or document filed in
     connection therewith) or document executed by the Company based upon
     written information furnished by or on behalf of the Company filed in any
     jurisdiction in order to register or qualify the Warrant Shares under the
     securities laws thereof or the omission or alleged omission to state
     therein a material fact required to be stated therein or necessary to make
     the statements therein, in the light of the circumstances under which they
     were made, not misleading, or (ii) the employment by the Company of any
     device, scheme or artifice to defraud, or the engaging by the Company in
     any act, practice or course of business which operates or would operate as
     a fraud or deceit, or any conspiracy with respect thereto, in which the
     Company shall participate, in connection with the issuance and sale of any
     of the of the Warrant Shares; provided, however, that (i) the indemnity
     agreement contained in this (a) shall not extend to any selling holder of
     Warrant Shares in respect of any such losses, claims, damages, liabilities
     or actions arising out of, or based upon, any such untrue statement or
     alleged untrue statement, or any such omission or alleged omission, if such
     statement or omission was based upon and made in conformity with
     information furnished in writing to the Company by a selling holder of
     Warrant Shares specifically for use in connection with the preparation of
     such Registration Statement, any final prospectus, any preliminary
     prospectus or any such amendment or supplement thereto. The Company agrees
     to pay any legal and other expenses for which it is liable under this (a)
     from time to time (but not more frequently than monthly) within 30 days
     after its receipt of a bill therefor.

     (b) Each selling holder of Warrant Shares, severally and not jointly, will
     indemnify and hold harmless the Company, its directors, its officers who
     shall have signed the Registration Statement and each person, if any, who
     controls the Company within the meaning of Section 15 of the Act to the
     same extent as the foregoing indemnity from the Company, but in each case
     to the extent, and only to the extent, that any statement in or omission
     from or alleged omission from such Registration Statement, any final
     prospectus, any preliminary prospectus or any amendment or supplement
     thereto was made in reliance upon information furnished in writing to the
     Company by such selling holder specifically for use in connection with the
     preparation of the Registration Statement, any final prospectus or the
     preliminary prospectus or any such amendment or supplement thereto;
     provided, however, that the obligation of any holder of Warrant Shares to
     indemnify the Company under the provisions of this paragraph (b) shall be
     limited to the product of the number of Warrant Shares being sold by the
     selling holder and the market price of the Common Stock on the date of the
     sale to the public of those Warrant Shares. Each selling holder of Warrant
     Shares agrees to pay any legal and other expenses for which it is liable
     under this paragraph (b) from time to time (but not more frequently than
     monthly) within 30 days after receipt of a bill therefor.

     (c) If any action is brought against a person entitled to indemnification
     pursuant to the foregoing Sections 6 (a) or (b) (an "indemnified party") in
     respect of which indemnity may be sought against a person granting
     indemnification (an "indemnifying party") pursuant to such Sections, such
     indemnified party shall promptly notify such indemnifying party in writing
     of the commencement thereof; but the omission so to notify the indemnifying
     party of any such action shall not release the indemnifying party from any
     liability it may have to such indemnified party otherwise than on account
     of the

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     indemnity agreement contained in (a) or (b) of this Section 6. In case any
     such action is brought against an indemnified party and it notifies an
     indemnifying party of the commencement thereof, the indemnifying party
     against which a claim is to be made will be entitled to participate therein
     at its own expense and, to the extent that it may wish, to assume at its
     own expense the defense thereof, with counsel reasonably satisfactory to
     such indemnified party; provided, however, that (i) if the defendants in
     any such action include both the indemnified party and the indemnifying
     party and the indemnified party shall have reasonably concluded based upon
     advice of counsel that there may be legal defenses available to it and/or
     other indemnified parties which are different from or additional to those
     available to the indemnifying party, the indemnified party shall have the
     right to select separate counsel to assume such legal defenses and
     otherwise to participate in the defense of such action on behalf of such
     indemnified party or parties and (ii) in any event, the indemnified party
     shall be entitled to have counsel chosen by such indemnified party
     participate in, but not conduct, the defense at the expense of the
     indemnified party. Upon receipt of notice from the indemnifying party to
     such indemnified party of its election so to assume the defense of such
     action and approval by the indemnified party of counsel, the indemnifying
     party will not be liable to such indemnified party under this Section 6 for
     any legal or other expenses subsequently incurred by such indemnified party
     in connection with the defense thereof unless (i) the indemnified party
     shall have employed such counsel in connection with the assumption of legal
     defenses in accordance with proviso (i) to the next preceding sentence (it
     being understood, however, that the indemnifying party shall not be liable
     for the expenses of more than one separate counsel), (ii) the indemnifying
     party shall not have employed counsel reasonably satisfactory to the
     indemnified party to represent the indemnified party within a reasonable
     time after notice of commencement of the action or (iii) the indemnifying
     party has authorized the employment of counsel for the indemnified party at
     the expense of the indemnifying party. An indemnifying party shall not be
     liable for any settlement of any action or proceeding effected without its
     written consent.

     (d) In order to provide for just an equitable contribution in circumstances
     in which the indemnity agreement provided for in (a) of this Section 6 is
     unavailable to a selling holder of Warrant Shares in accordance with its
     terms, the Company and the selling holder of Warrant Shares shall
     contribute to the aggregate losses, claims, damages and liabilities, of the
     nature contemplated by said indemnity agreement, incurred by the Company
     and the selling holder of Warrant Shares, in such proportions as is
     appropriate to reflect the relative benefits received by the Company and
     the selling holder of Warrant Shares from any offering of the Warrant
     Shares; provided, however, that if such allocation is not permitted by
     applicable law or if the indemnified party failed to give the notice
     required under (c) of this Section 6, then the relative fault of the
     Company and the selling holder of Warrant Shares in connection with the
     statements or omissions which resulted in such losses, claims, damages and
     liabilities and other relevant equitable considerations will be considered
     together with such relative benefits.

     (e) The respective indemnity and contribution agreements by the Company and
     the selling holder of Warrant Shares in section (a), (b), (c) and (d) of
     this Section 6 shall remain operative and in full force and effect
     regardless of (i) any investigation made by any selling holder of Warrant
     Shares or by or on behalf of any person who controls such selling holder or
     by the Company or any controlling person of the Company or any director or
     any officer of the company, (ii) payment for any of the Warrant Shares or
     (iii) any termination of this Agreement, and shall survive the delivery of
     the Warrant Shares,

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     and any successor of the Company, or of any selling holder of Warrant
     Shares, or of any person who controls the Company or of any selling holder
     of Warrant Shares, as the case may be, shall be entitled to the benefit of
     such respective indemnity and contribution agreements. The respective
     indemnity and contribution agreements by the Company and the selling holder
     of Warrant Shares contained in (a), (b), (c) and (d) of this Section 6
     shall be in addition to any liability which the Company and the selling
     holder of Warrant Shares may otherwise have.

7.   Limitations on Transfer and Exercise.

     (a) This Warrant is not transferable or assignable by the Holder except (i)
     to Ladenburg Thalmann & Co. Inc., any successor firm or corporation of
     Ladenburg Thalmann & Co. Inc. (ii) to any of the officers or employees of
     Ladenburg Thalmann & Co. Inc. or of any such successor firm or (iii) in the
     case of an individual, pursuant to such individual's last will and
     testament or the laws of descent and distribution and is so transferable
     only upon the books of the Company which it shall cause to be maintained
     for the purpose. The Company may treat the registered holder of this
     Warrant as he or it appears on the Company's books at any time as the
     Holder for all purposes. The Company shall permit any holder of a Warrant
     or his duly authorized attorney, upon written request during ordinary
     business hours, to inspect and copy or make extracts from its books showing
     the registered holders of Warrants. All Warrants will be dated the same
     date as this Warrant.

     (b) By acceptance hereof, the Holder represents and warrants that this
     Warrant is being acquired, and all Warrant Shares to be purchased upon the
     exercise of this Warrant will be acquired, by the Holder solely for the
     account of such Holder and not with a view to the fractionalization and
     distribution thereof and will not be sold or transferred except in
     accordance with the applicable provisions of the Act and the rules and
     regulations of the Securities and Exchange Commission promulgated
     thereunder, and the Holder agrees that this Warrant may not be exercised
     and this Warrant and the Warrant Shares may not be sold, pledged,
     hypothecated, or transferred except under a Registration Statement under
     the Act which is effective and current with respect to this Warrant and
     such Warrant Shares or pursuant to an exemption from such registration and
     an opinion, in form and substance reasonably acceptable to the Company's
     counsel, that registration under the Act is not required in connection with
     such exercise, sale, pledge, hypothecation, or transfer. Any Warrant Shares
     issued upon exercise of this Warrant shall bear the following legend:

               "The Securities represented by this certificate have
               not been registered under the Securities Act of 1933
               and are restricted securities within the meaning
               thereof. Such securities may not be sold or transferred
               except pursuant to a Registration Statement under such
               Act which is effective and current with respect to such
               securities or pursuant to an exemption from
               registration and an opinion of counsel reasonably
               satisfactory to the issuer of such securities that such
               sale or transfer is exempt from the registration
               requirements of such Act."

     (c) The Warrant shall be numbered and shall be registered on the books of
     the Company (the "Warrant Register") as issued. The Company shall be
     entitled to treat the person in whose name this Warrant is so registered as
     the owner in fact thereof for

                                       9
<PAGE>

     all purposes and shall not be bound to recognize any equitable or other
     claim or interest in such Warrant on the part of any other person, and
     shall not be liable for any registration of transfer of any Warrant which
     is registered or to be registered in the name of a fiduciary or the nominee
     of a fiduciary unless made with the actual knowledge that a fiduciary or
     nominee is committing a breach of trust in requesting such registration or
     transfer, or with such knowledge of such facts that its participation
     therein amounts to bad faith.

     (e) At such time as the Company shall register this Warrant under the Act,
     the Company may appoint a Warrant Agent to act on behalf of the Company in
     connection with the issuance, division, transfer and exercise of this
     Warrant. In the event that a Warrant Agent is appointed, the Company shall
     (i) promptly notify the Warrant holders of such appointment and the place
     designated for transfer, exchange and exercise of the Warrants, and (ii)
     take such steps as are necessary to insure that Warrants issued prior to
     such appointment may be exchanged for Warrants countersigned by the Warrant
     Agent. The Warrants issued after the date of such appointment shall be
     countersigned by the Warrant Agent (or any successor to the Warrant Agent
     then acting as warrant agent) and shall not be valid for any purpose unless
     so countersigned. Warrants may be countersigned, however, by the Warrant
     Agent (or by its successor as warrant agent hereunder) and may be delivered
     by the Warrant Agent, notwithstanding that the persons whose manual or
     facsimile signatures appear thereon as proper officers of the Company shall
     have ceased to be such officers at the time of such countersignature,
     issuance or delivery.

     (d) This Warrant shall be transferable only on the Company's Warrant
     Register upon delivery thereof duly endorsed by the holder or by his duly
     authorized attorney or representative, or accompanied by proper evidence of
     succession, assignment or authority to transfer, which endorsement shall be
     guaranteed by a bank or trust company or a broker or dealer which is a
     member of the National Association of Securities Dealers, Inc. In all cases
     of transfer by an attorney, the original power of attorney, duly approved,
     or a copy thereof, duly certified, shall be deposited and remain with the
     Company (or Warrant Agent, if any). In case of transfer by executors,
     administrators, guardians or other legal representatives, duly
     authenticated evidence of their authority shall be produced, and may be
     required to be deposited and remain with the Company (or Warrant Agent) in
     its discretion. Upon any registration of transfer, the Company (or Warrant
     Agent) shall execute and deliver a new Warrant or Warrants to the persons
     entitled thereto.

                                       10
<PAGE>

8.   Loss, etc., of Warrant.

     Upon receipt of evidence satisfactory to the Company and any Warrant Agent
     of the loss, theft, destruction or mutilation of this Warrant, and of
     indemnity reasonably satisfactory to the Company and any Warrant Agent, if
     lost, stolen or destroyed, and upon surrender and cancellation of this
     Warrant, if mutilated, and upon reimbursement of the Company's and Warrant
     Agent's reasonable incidental expenses, the Company or Warrant Agent shall
     execute and deliver to the Holder a new Warrant of like date, tenor and
     denomination.

9.   Warrant Holder Not Shareholders.

     Except as otherwise provided herein, this Warrant does not confer upon the
     Holder any right to vote or to consent to or receive notice as a
     shareholder of the Company, as such, in respect of any matters whatsoever,
     or any other rights or liabilities as a shareholder, prior to the exercise
     hereof.

10.  Communication.

     No notice or other communication under this Warrant shall be effective
     unless, but any notice or other communication shall be effective and shall
     be deemed to have been given if, the same is in writing and is mailed by
     first-class mail, postage prepaid, addressed to:

          (a) the Company at 935 Pardee Street, Berkeley, CA 94710-2623, or such
     other address as the Company has designated in writing to the Holder; or

          (b) the Holder at 590 Madison Ave., New York, NY 10022, or such other
     address as the Holder has designated in writing to the Company.

11.  Headings.

     The headings of this Warrant have been inserted as a matter of convenience
     and shall not affect the construction hereof.

12.  Applicable Law.

     This Warrant shall be governed by and construed in accordance with the laws
     of the State of California without giving effect to the principles of
     conflicts of law thereof.

                                       11
<PAGE>

IN WITNESS WHEREOF, BioTime, Inc. has caused this Warrant to be signed by its
Chief Executive Officer and its corporate seal to be hereunto affixed and
attested by its Secretary this 12th day of August, 2002.

ATTEST:                                     BioTime, Inc.

                                            By:
---------------------------------              ---------------------------
Secretary                                      Chief Financial Officer

[Corporate Seal]

                                       12
<PAGE>

                                  SUBSCRIPTION

     The undersigned, ________________ , pursuant to the provisions of the
foregoing Warrant, hereby agrees to subscribe for and purchase __________ shares
of the Common Stock of BioTime, Inc. covered by said Warrant, and makes payment
therefor in full at the price per share provided by said Warrant.

     Please issue a certificate or certificates for such shares of Common Stock
in the name of, and pay any cash for any fractional share to:

PLEASE INSERT SOCIAL SECURITY           NAME
OR OTHER IDENTIFYING NUMBER             ---------------------------
OF ASSIGNEE                             (Please Print Name &
                                            Address)

---------------------------
                                        ---------------------------
                                        Address

                                        ---------------------------
                                        Signature

                                         NOTE: The above signature should
                                               correspond exactly with the name
                                               on the face of this Warrant
                                               Certificate or with the name of
                                               the assignee appearing in the
                                               assignment form below.

And, if said number of shares shall not be all the shares purchasable under the
within Warrant Certificate, a new Warrant Certificate is to be issued in the
name of said undersigned for the balance remaining of the share purchasable
thereunder less any fraction of a share paid in cash.

                                       13
<PAGE>

                                   ASSIGNMENT

     FOR VALUE RECEIVED, __________ hereby sells, assigns and transfers unto the
foregoing Warrant and all rights evidenced thereby, and does irrevocably
constitute and appoint __________, attorney, to transfer said Warrant on the
books of __________.

Dated:                                      Signature:
        ----------------------------                  --------------------------

                                            Address:
                                                    ----------------------------

                                       14
<PAGE>

                               PARTIAL ASSIGNMENT

     FOR VALUE RECEIVED, __________ hereby assigns and transfers unto __________
the right to purchase __________ shares of the Common Stock of by the foregoing
Warrant, and a proportionate part of said Warrant and the rights evidenced
hereby, and does irrevocably constitute and appoint __________, attorney, to
transfer that part of said Warrant on the books of __________.

Dated:                                         Signature:
        --------------------------                       -----------------------

                                               Address:
                                                       -------------------------

                                       15<PAGE>
                                                                     Exhibit 4.1

                         INDYMAC MORTGAGE HOLDINGS, INC.
                            2000 STOCK INCENTIVE PLAN

        1. Purpose of Plan. The purpose of this 2000 Stock Incentive Plan
("Plan") of IndyMac Mortgage Holdings, Inc., a Delaware corporation (the
"Company"), is to enable the Company and any of its subsidiaries or affiliates
to attract, retain and motivate their employees, consultants, agents, officers
and directors by providing incentives related to equity interests in and the
financial performance of the Company.

        2. Persons Eligible Under Plan. Any person, including any director of
the Company or any of its subsidiaries or affiliates, who is an officer or
employee of the Company or any of its subsidiaries or affiliates or an
individual who performs services for the Company or any of its subsidiaries or
affiliates of a nature similar to those performed by officers or employees, such
as consultants and agents (any of the foregoing, an "Employee") shall be
eligible to be considered for the grant of an Award (as defined in Section 5
below) or Awards under Section 5 of this Plan. Members of the Board of Directors
of the Company (the "Board"), and members of the boards of directors of any of
the Company's subsidiaries or affiliates who are not officers or employees of
the Company or any of its subsidiaries or affiliates ("Non-Employee Directors")
shall be eligible to receive Awards under this Plan only in the form of
nonqualified stock options granted automatically under the provisions of Section
10 of this Plan ("Director Options").

        3. Stock Subject to Plan.

               (a) ISO Limit. The maximum number of Common Shares, $0.01 par
        value per share, of the Company (the "Common Shares") that may be issued
        pursuant to options intended to qualify as incentive stock options
        ("Incentive Stock Options") under Section 422 of the Internal Revenue
        Code of 1986, as amended (the "Code"), granted under this Plan is
        5,000,000, and provided further that, except as otherwise provided
        herein, the aggregate Fair Market Value (as defined in Section 10) of
        Common Shares with respect to which options intended to qualify as
        Incentive Stock Options are exercisable for the first time by any
        individual during any calendar year shall not exceed the limit, if any,
        set forth in Section 422(d) of the Code or any successor provision
        thereto. For purposes of this subsection (a), the Fair Market Value (as
        defined in Section 10) of any Common Shares shall be determined as of
        the time the Incentive Stock Option with respect to the Common Shares is
        granted. Pursuant to Section 422(a)(2) of the Code, only employees (as
        that term is used in Section 422(a)(2) of the Code) of the Company or
        the Company's wholly-owned subsidiaries may receive options intended to
        qualify as Incentive Stock Options under this Plan.

<PAGE>
               (b) Aggregate/Individual Share Limit.

                       (i) The maximum number of Common Shares that may be
               issued pursuant to all Awards (including Incentive Stock Options,
               as set forth in subsection (a) above) granted under this Plan,
               other than Common Shares that are issued pursuant to Awards and
               subsequently reacquired by the Company pursuant to the terms and
               conditions of such Awards ("Reacquired Common Shares"), is
               5,000,000, subject to adjustment as provided in or pursuant to
               Section 6 or 10 hereof (such maximum number, as so adjusted,
               shall be referred to as the "Share Limit").

                       (ii) Notwithstanding anything contained herein to the
               contrary, the aggregate number of Common Shares subject to
               options, stock appreciation rights, and awards of restricted
               stock granted during any calendar year to any individual shall be
               limited to 1,000,000.

               (c) Share Reservation. No Award may be granted under this Plan
        unless, on the date of grant, the sum of (i) the maximum number of
        Common Shares issuable at any time pursuant to such Award, plus (ii) the
        number of Common Shares that have previously been issued pursuant to
        Awards granted under this Plan, other than Reacquired Common Shares
        available for reissue, plus (iii) the maximum number of Common Shares
        that may be issued at any time after such date of grant pursuant to
        Awards that are outstanding on such date, does not exceed the Share
        Limit. Common Shares distributed under the Plan may be treasury shares,
        authorized but unissued shares or shares purchased in the open market
        for this purpose.

               (d) Reissue of Awards and Common Shares. Awards payable in cash
        or Common Shares that are forfeited or for any reason are not so paid
        under this Plan, as well as Common Shares subject to Awards that expire
        or for any reason are terminated and are not issued or constitute
        Reacquired Common Shares, shall again be available for subsequent Awards
        under the Plan.

               (e) Fractional Shares/Minimum Issue. Fractional share interests
        shall be disregarded, but may be accumulated. No fewer than 100 Common
        Shares may be purchased on exercise of any option granted under this
        Plan ("Option") at one time unless the number purchased is the total
        number at the time available for purchase under the Option.

               (f) Privileges of Stock Ownership. Except as otherwise expressly
        authorized by this Plan, an Award recipient shall not be entitled to any
        privilege of stock ownership as to any Common Shares subject to an
        Option granted under this Plan prior to the satisfaction of all
        conditions to the valid exercise of the Option.

                                       2

<PAGE>
        4. Administration of Plan.

               (a) The Committee. Except for the provisions of Section 10 (which
        to the maximum extent feasible shall be self-effectuating), this Plan
        shall be administered by a committee of the Board (the "Committee")
        consisting of two or more directors, each of whom is a "Non-Employee
        Director," as such term is defined in Rule 16b-3 under the Securities
        Exchange Act of 1934, as amended (the "Exchange Act"), and an "Outside
        Director," as such term is defined for purposes of Section 162(m) of the
        Code.

               (b) Powers of the Committee. Subject to the express provisions of
        this Plan, the Committee shall be authorized and empowered to do all
        things necessary or desirable in connection with the administration of
        this Plan including, without limitation, the following:

                       (i) adopt, amend and rescind rules and regulations
               relating to this Plan;

                       (ii) determine which persons meet the requirements of
               Section 2 hereof for eligibility under this Plan and to which of
               such eligible persons, if any, Awards will be granted hereunder;

                       (iii) grant Awards to eligible persons and determine the
               terms and conditions thereof, including, but not limited to, the
               number of Common Shares issuable pursuant thereto, the time not
               more than ten (10) years after the date of an Award at which time
               the Award shall expire or (if not vested) terminate, and the
               conditions upon which Awards become exercisable or vest or shall
               expire or terminate, and the consideration, if any, to be paid
               upon receipt, exercise or vesting of Awards;

                       (iv) determine whether, and the extent to which,
               adjustments are required pursuant to Section 6 hereof;

                       (v) interpret and construe this Plan and the terms and
               conditions of any Award granted under Section 5, whether before
               or after the date set forth in Section 7; and

                       (vi) determine the circumstances under which, consistent
               with the provisions of Section 7, any outstanding Award under
               Section 5 may be amended;

        which authority (except as to clauses (ii) and (iii) above) shall remain
        in effect so long as any Award remains outstanding under this Plan.

               (c) Specific Committee Responsibility and Discretion Regarding
        Awards. Subject to the express provisions of this Plan, the Committee,
        in its sole

                                       3

<PAGE>
        and absolute discretion, shall determine all of the terms and conditions
        of each Award granted under Section 5 of this Plan, which terms and
        conditions may include, subject to such limitations as the Committee may
        from time to time impose, among other things, provisions that:

                       (i) permit the recipient of such Award, including any
               recipient who is a director or officer of the Company, to pay the
               purchase price of the Common Shares or other property issuable
               pursuant to such Award, or such recipient's tax withholding
               obligation upon such issuance or in respect of such Award or
               Shares, in whole or in part, by any one or more of the following:

                               (A) the delivery of previously owned shares of
                       capital stock of the Company (including shares acquired
                       as or pursuant to Awards) then having been owned by the
                       recipient for at least six (6) months (or such other
                       period required under applicable law) or the delivery of
                       other property, or

                               (B) the delivery of a promissory note, under any
                       applicable financing plan or on such other terms and
                       conditions, as in either case authorized by the
                       Committee, consistent with applicable law;

                       (ii) accelerate the receipt of benefits pursuant to such
               Award upon the occurrence of specified events, including, without
               limitation, a change of control of the Company, an acquisition of
               a specified percentage of the voting power of the Company, the
               dissolution or liquidation of the Company, a sale of
               substantially all of the property and assets of the Company or an
               event of the type described in Section 6 hereof, or pursuant to
               the provisions of an employment contract not inconsistent with
               the terms of this Plan, or in other circumstances or upon the
               occurrence of other events as deemed appropriate by the
               Committee;

                       (iii) qualify such Award as an Incentive Stock Option;

                       (iv) extend the exercisability or term of any or all such
               outstanding Awards, change the price of any or all such
               outstanding Awards or otherwise change previously imposed terms
               and conditions, in the specified events described in clause (ii)
               above or in other circumstances or upon the occurrence of other
               events as deemed appropriate by the Committee, in each case
               subject to Section 7;

                       (v) authorize the conversion, succession or substitution
               of outstanding Awards under Section 5 upon the occurrence of any
               event of the type described in Section 6, or in other
               circumstances or upon the occurrence of other events as deemed
               appropriate by the Committee; and/or

                                       4

<PAGE>
                       (vi) provide for automatic grants of Awards or successive
               Awards.

               (d) Binding Determinations. Any action taken by, or inaction of,
        the Company, the Board or the Committee relating or pursuant to this
        Plan shall be within the absolute discretion of that entity or body and
        shall be conclusive and binding upon all persons. No member of the Board
        or officer of the Company shall be liable for any such action or
        inaction of the entity or body, of another person or, except in
        circumstances involving bad faith, of himself or herself.

               (e) Reliance on Experts. In making any determination or in taking
        or not taking any action under this Plan, the Board and the Committee
        may obtain and may rely upon the advice of experts, including
        professional advisors to the Company. No director, officer or agent of
        the Company shall be liable for any such action or determination taken
        or made or omitted in good faith.

               (f) Delegation. The Committee may delegate ministerial,
        non-discretionary functions to individuals who are officers or employees
        of the Company. The Committee also may delegate to certain officer(s) of
        the Company the authority to grant Awards pursuant to Section 5 of the
        Plan, provided that such delegation is set forth in writing and includes
        all applicable limitations and parameters to such Awards, and provided
        further that such Awards are subsequently ratified by the Committee.

        5. Awards.

               (a) Types of Awards. The Committee, on behalf of the Company, is
        authorized under this Plan to enter into any type of arrangement with an
        Employee that is not inconsistent with the provisions of this Plan and
        that by its terms, involves or might involve the issuance of (i) Common
        Shares, (ii) an option, warrant, convertible security, stock
        appreciation right or similar right with an exercise or conversion
        privilege at a fixed or variable price related to the Common Shares or
        other equity securities of the Company and/or the passage of time, the
        occurrence of one or more events, or the satisfaction of performance
        criteria or other conditions, or any combination of these variables, or
        any similar security contemplated by subsection (b) below, or (iii) any
        similar security with a value derived from the value of the Common
        Shares or other equity securities of the Company, all of which may or
        may not involve the payment of cash consideration, subject to subsection
        (e) below. The authorization of any such arrangement (including any
        benefits described in Section 5(e)) is referred to herein as the grant
        of an "Award". The date of grant may be at or after (but not before) the
        date the Committee authorizes the Award. All Awards shall be evidenced
        by a writing with a schedule memorializing the grant of the Award to the
        recipient and setting forth certain specifics with respect to the terms
        and conditions of the Award ("Award Memorandum").

                                       5

<PAGE>
               (b) Form of Awards. Awards are not restricted to any specified
        form or structure and may include, without limitation, sales or bonuses
        of stock, restricted stock, performance restricted stock, stock options,
        reload stock options, stock purchase warrants, other rights to acquire
        stock, securities convertible into or redeemable for stock, stock
        appreciation rights, limited stock appreciation rights, phantom stock,
        dividend equivalents, performance units or performance shares, and an
        Award may consist of one such security or benefit, or two or more of
        them in any combination or alternative. In addition, any Award that is
        intended to qualify as an Incentive Stock Option will automatically be
        converted into a non-qualified stock option to the extent that such
        Award does not satisfy any applicable requirement under Section 422 of
        the Code.

               (c) Restricted Stock Awards. If expressly provided by the
        Committee, and without limiting subsection (b) above, Awards of
        restricted Common Shares ("Restricted Stock") may be made to the holder
        of any Option, based upon dividends or distributions that would have
        been received had the Common Shares covered by the Option been issued
        and outstanding on the applicable dividend record date. The terms and
        conditions of any such Awards of Restricted Stock shall be determined by
        the Committee and set forth in the applicable Award Memorandum.

               (d) Time and Method of Exercise. Awards may be exercised in whole
        or in part at such time or times as shall be determined by the Committee
        and set forth in the applicable Award Memorandum. Awards shall be
        exercised in accordance with procedures established by the Committee,
        subject to Section 4(c)(i) and any holding periods required under
        applicable law.

               (e) Price; Consideration; Option Pricing Limit. Common Shares may
        be issued pursuant to an Award for any lawful consideration as
        determined by the Committee, including, without limitation, cash, Common
        Shares (valued at then Fair Market Value, as defined in Section 10), or
        services rendered by the recipient of such Award; provided that no
        Common Shares shall be issued for less than the minimum lawful
        consideration and no Option which is intended to be an Incentive Stock
        Option shall be granted with an exercise price that is less than the
        Fair Market Value (as defined in Section 10) of the underlying Common
        Shares on the date of grant.

               (f) Effect of Termination of Service or Death; Change in
        Subsidiary Status. Subject to Section 4(c)(ii), and except as otherwise
        provided in the applicable Award Memorandum or otherwise specified or
        approved by the Committee, each Option and all other rights thereunder,
        to the extent not exercised (whether or not presently exercisable),
        shall terminate and become null and void at such time as the holder of
        such Option terminates service as an Employee, except that:

                                       6

<PAGE>
                       (i) if the holder terminates service as an Employee for a
               reason other than cause (as determined by the Committee in its
               sole discretion), death or permanent and total disability (as
               defined in clause (ii) below), the holder may at any time within
               a period of three months after such termination exercise such
               Option to the extent such Option was exercisable on the date of
               such termination;

                       (ii) if the holder terminates service as an Employee by
               reason of permanent and total disability (within the meaning of
               Section 22(e)(3) of the Code), or if the holder becomes
               permanently and totally disabled within three months after
               termination described in clause (i), the holder may at any time
               within a period of twelve (12) months after such termination
               exercise such Option to the extent such Option was exercisable on
               the date of such termination; and

                       (iii) if the holder terminates service as an Employee by
               reason of death, or within three months after a termination
               described in clauses (i) or (ii), then such Option may be
               exercised within a period of twelve (12) months after the
               holder's termination of service as an Employee, to the extent
               such Option was exercisable on the date of such termination;

        provided, however, that in no event may any such Option be exercised by
        any holder after its expiration date.

               Notwithstanding any of the foregoing provisions of this
        subsection (f), if the holder of an Option is an Employee of an entity
        which is a subsidiary or affiliate of the Company and such entity ceases
        to be such a subsidiary or affiliate of the Company, such event shall be
        deemed for purposes of this subsection (f) to be a termination of the
        holder's service as an Employee described in clause (i) above. Absence
        from work caused by military service or authorized sick leave shall not
        be considered a termination of service as an Employee for purposes of
        this subsection (f).

               (g) Cash Awards; Loans. The Committee shall have the express
        authority to create, add or include a cash payment or benefit under this
        Plan, whether in lieu of, in addition to or as an Award or as a
        component of another type of Award, and to make or authorize loans to
        finance, or to otherwise accommodate the financing, acquisition or
        exercise of an Award or the satisfaction of any related tax liability.

               (h) Transfer Restrictions. Unless otherwise permitted in the
        applicable Award Memorandum pursuant to the discretion of the Committee,
        no Award granted hereunder shall be transferable other than by will or
        the laws of descent and distribution or pursuant to a qualified domestic
        relations order.

                                       7

<PAGE>
               (i) Tax Withholding. Upon the issuance of Common Shares, the
        payment of cash or any other taxable event in respect of an Award under
        this Plan, such number of shares or amount of cash or other
        consideration, as the case may be, otherwise issuable or payable may be
        reduced by the amount necessary to satisfy the minimum applicable tax
        withholding requirements imposed on the Company or any of its
        subsidiaries or affiliates in respect of such Award or event, all to the
        extent and in such manner as the Committee may determine.

        6. Adjustments and Acceleration.

                (a) Adjustments. If (i) the outstanding securities of the class
                then subject to this Plan (the "outstanding shares") (A) are
                increased, decreased, exchanged or converted as a result of a
                stock split (including a split in the form of a stock dividend),
                reverse stock split, recapitalization, or similar event or (B)
                are exchanged for or converted into cash, property or a
                different number or kind of securities (or if cash, property or
                securities are distributed in respect of the outstanding
                shares), as a result of a reorganization, merger, consolidation,
                exchange, recapitalization, restructuring or reclassification,
                or (ii) substantially all of the property and assets of the
                Company are sold as an entirety, or (iii) the Company is
                liquidated and dissolved, then, the Committee (or, in the case
                of Director Options, the Board) shall, in such manner and to
                such extent (if any) as is equitable and appropriate, make
                proportionate adjustments in (x) the number and type of shares
                or other securities or cash or other property that may be
                acquired pursuant to Options and other Awards previously granted
                under this Plan (and, where applicable, the exercise price
                thereof so as to maintain the same aggregate exercise price),
                (y) the maximum number and type of shares or other securities,
                cash, or property that may be issued or delivered pursuant to
                Options (including Incentive Stock Options and Director Options)
                and other Awards thereafter granted under this Plan, and (z)
                such other terms as necessarily are affected by such event. In
                the case of an extraordinary distribution, merger,
                reorganization, consolidation, combination, sale of assets,
                exchange or spin off, the Committee (or the Board, in the case
                of Director Options) may make provisions for a substitution or
                exchange of any or all outstanding Options or other Awards or
                rights (or for the securities, cash or property deliverable upon
                exercise of such outstanding Options or other Awards or rights),
                based upon the distribution or consideration payable to holders
                of the Common Shares of the Company upon or in respect of such
                event.

                (b) Acceleration.

                       (i) The Committee, in the exercise of its reasonable
               discretion, may, but need not, make an affirmative determination
               in light of all circumstances surrounding a transaction or group
               of related transactions that a "Change in Control" for purposes
               of this Plan will either occur or

                                       8

<PAGE>
               not occur. In making any such determination, the Committee shall
               give due consideration, without limitation, to the likely effect
               of such transaction(s) on the makeup of the shareholder base, the
               Board and the senior management of the Company. If the Committee
               does not exercise the right to make this affirmative
               determination with respect to a specific transaction or group of
               related transactions, then, with respect thereto, a "Change in
               Control" shall be deemed to occur for purposes of this Plan upon
               the occurrence of any one of the following events:

                               (A) An acquisition (other than directly from the
                       Company) of any common stock or other "Voting Securities"
                       (as hereinafter defined) of the Company by any "Person"
                       (as the term person is used for purposes of Sections
                       13(d) or 14(d) of the Exchange Act, immediately after
                       which such Person has "Beneficial Ownership" (within the
                       meaning of Rule 13d-3 under the Exchange Act) of twenty
                       five percent (25%) or more of the then outstanding shares
                       of the Company's common stock or the combined voting
                       power of the Company's then outstanding Voting
                       Securities; provided, however, that in determining
                       whether a Change in Control has occurred, Voting
                       Securities which are acquired in a "Non-Control
                       Acquisition" (as hereinafter defined) shall not
                       constitute an acquisition which would cause a Change in
                       Control. For purposes of this Plan, (1) "Voting
                       Securities" shall mean the Company's outstanding voting
                       securities entitled to vote generally in the election of
                       directors and (2) a "Non-Control Acquisition" shall mean
                       an acquisition by (a) an employee benefit plan (or a
                       trust forming a part thereof) maintained by (x) the
                       Company, or, (y) any corporation or other Person of which
                       a majority of its voting power or its voting equity
                       securities or equity interest is owned, directly or
                       indirectly, by the Company (for purposes of this
                       definition, a "Subsidiary"), (b) the Company or any of
                       its Subsidiaries, or (c) any Person in connection with a
                       "Non-Control Transaction" (as hereinafter defined);

                               (B) The individuals who as of March 1, 2000 are
                       members of the Board (the "Incumbent Board") cease for
                       any reason to constitute at least two-thirds of the
                       members of the Board; provided, however, that if the
                       election, or nomination for election by the Company's
                       common stockholders, of any new director was approved by
                       a vote of at least two-thirds of the Incumbent Board,
                       such new director shall, for purposes of this Plan, be
                       considered as a member of the Incumbent Board; provided
                       further, however, that no individual shall be considered
                       a member of the Incumbent Board if such individual
                       initially assumed office as a result of either an actual
                       or threatened "Election Contest" (as described in Rule
                       14a-11 under the Exchange Act) or other actual or
                       threatened

                                       9

<PAGE>
                       solicitation of proxies or consents by or on behalf of a
                       Person other than the Board (a "Proxy Contest") including
                       by reason of any agreement intended to avoid or settle
                       any Election Contest or Proxy Contest; or

                               (C) The consummation of: (1) A merger,
                       consolidation or reorganization involving the Company,
                       unless such merger, consolidation or reorganization is a
                       "Non-Control Transaction." A "Non-Control Transaction"
                       shall mean a merger, consolidation or reorganization of
                       the Company where: (a) the stockholders of the Company,
                       immediately before such merger, consolidation or
                       reorganization, own directly or indirectly immediately
                       following such merger, consolidation or reorganization,
                       at least seventy percent (70%) of the combined voting
                       power of the outstanding Voting Securities of the
                       corporation resulting from such merger, consolidation or
                       reorganization (the "Surviving Corporation") in
                       substantially the same proportion as their ownership of
                       the Voting Securities immediately before such merger,
                       consolidation or reorganization; (b) the individuals who
                       were members of the Incumbent Board immediately prior to
                       the execution of the agreement providing for such merger,
                       consolidation or reorganization constitute at least
                       two-thirds of the members of the board of directors of
                       the Surviving Corporation, or in the event that,
                       immediately following the consummation of such
                       transaction, a corporation beneficially owns, directly or
                       indirectly, a majority of the Voting Securities of the
                       Surviving Corporation, the board of directors of such
                       corporation; and (c) no Person other than (w) the
                       Company, (x) any Subsidiary, (y) any employee benefit
                       plan (or any trust forming a part thereof) maintained by
                       the Company, the Surviving Corporation, or any
                       Subsidiary, or (z) any Person who, immediately prior to
                       such merger, consolidation or reorganization had
                       Beneficial Ownership of twenty-five percent (25%) or more
                       of the then outstanding Voting Securities or common stock
                       of the Company, has Beneficial Ownership of twenty-five
                       percent (25%) or more of the combined voting power of the
                       Surviving Corporation's then outstanding Voting
                       Securities or its common stock;

                                        (2) A complete liquidation or
                                dissolution of the Company,

                                        (3) The sale or other disposition of all
                                or substantially all of the assets of the
                                Company to any Person (other than a transfer to
                                a Subsidiary); or

                               (D) or any other occurrence or state of facts,
                       whether similar or dissimilar to the foregoing, that is
                       determined by the

                                       10

<PAGE>
                       Committee to constitute a change in control of the
                       management or policies of the Company.

                       Notwithstanding the foregoing provisions of this Section
               6(b)(i), a Change in Control shall not be deemed to occur solely
               because any Person (the "Subject Person") acquired Beneficial
               Ownership of more than the permitted amount of the then
               outstanding common stock or Voting Securities as a result of the
               acquisition of common stock or Voting Securities by the Company
               which, by reducing the number of shares of common stock or Voting
               Securities then outstanding, increases the proportional number of
               shares Beneficially Owned by the Subject Persons; provided,
               however, that if a Change in Control would occur (but for the
               operation of this sentence) as a result of the acquisition of
               common stock or Voting Securities by the Company, and after such
               share acquisition by the Company, the Subject Person becomes the
               Beneficial Owner of any additional common stock or Voting
               Securities which increases the percentage of the then outstanding
               common stock or Voting Securities Beneficially Owned by the
               Subject Person, then a Change in Control shall occur.

                       (i) Except as otherwise provided in Section 10(j), prior
               to a Change in Control, the Committee may determine in respect of
               Awards held by Employees that upon or in anticipation of the
               occurrence of the Change in Control benefits under Awards shall
               be accelerated only for a limited period of time, which period of
               time shall not be less than a period of time reasonably necessary
               to realize the benefits of such acceleration nor more than one
               year after the Change in Control. If such a determination is not
               made, then (subject to the last sentence of this clause) upon the
               occurrence of a Change in Control and without further action by
               the Board or the Committee, (A) each Option and stock
               appreciation right shall become immediately exercisable, (B)
               performance Restricted Stock shall immediately vest free of
               restrictions, and (C) each performance share Award shall become
               payable to the Employee. The Committee may override the
               limitations on acceleration in this Section 6(b)(ii) by express
               provision in the Award Memorandum or otherwise, and may accord
               any holder of an Award a right to refuse any acceleration,
               whether pursuant to the Award Memorandum or otherwise, in such
               circumstances as the Committee may approve. Any acceleration of
               Awards shall comply with any applicable regulatory and financial
               accounting requirements, including without limitation Section 422
               of the Code.

                       (ii) Any Awards that are (or but for a holder's rejection
               of acceleration would have been) accelerated under this Section 6
               and that are not exercised or vested prior to a dissolution of
               the Company or a reorganization event described in Section 6(a)
               that the Company does not survive shall terminate, provided that
               if provision has been made,

                                       11

<PAGE>
               consistent with the terms hereof, for the substitution, exchange
               or other settlement of Awards, such Awards shall be substituted,
               exchanged or otherwise settled in accordance with such provision.

                       (iii) Any Awards that are (or but for the holder's
               rejection of the acceleration would have been) accelerated that
               are not exercised or vested prior to an abandonment or
               termination of a transaction subject to shareholder approval that
               triggered the Change in Control (as evidenced by public
               announcement, Board resolution, execution of documents
               terminating the transaction, or other action or document
               objectively confirming such abandonment or termination), shall be
               restored to their prior status (except for the effects of the
               passage of time) as if no Change in Control had occurred.

        7. Amendment and Termination of Plan.

               (a) No Award shall be granted under this Plan after March 1,
        2010. Although Common Shares may be issued after March 1, 2010 pursuant
        to Awards granted prior to such date, no Common Shares otherwise shall
        be issued under this Plan after such date. Notwithstanding the
        foregoing, any Award granted prior to such date may vest or be amended
        after such date in any manner that would have been permitted prior to
        such date, except that (except as provided herein) no such amendment
        shall increase the number of shares subject to or comprising such Award,
        or extend the final expiration date of the Award or reduce (below the
        Fair Market Value (as defined in Section 10) on the date of the
        amendment) the exercise price of or under such Award.

               (b) The Board may, without shareholder approval, at any time and
        from time to time, suspend, discontinue or amend this Plan in any
        respect whatsoever, except that no such amendment shall impair any
        rights under any Award theretofore made under the Plan without the
        consent of the holder of such Award. Furthermore, and except as and to
        the extent otherwise permitted by the provisions hereof, no such
        amendment shall, without shareholder approval, cause the Plan to cease
        to satisfy any applicable condition of Rule 16b-3 under the Exchange Act
        or cause any Award under the Plan to cease to qualify for any applicable
        exception under Section 162(m) of the Code.

        8. Effective Date of Plan: Shareholder Approval. This Plan shall be
effective as of March 1, 2000, the date upon which it was approved by the Board;
provided, however, that no Common Shares may be issued under this Plan until it
has been approved by the affirmative votes of the holders of a majority of the
Common Shares of the Company present, or represented, and entitled to vote at a
meeting duly held in accordance with applicable law.

                                       12

<PAGE>
        9. Legal Issues.

               (a) Compliance and Choice of Law: Severability. This Plan, the
        granting and vesting of Awards under this Plan and the issuance and
        delivery of Common Shares and/or the payment of money under this Plan or
        under Awards granted hereunder are subject to compliance with all
        applicable federal and state laws, rules and regulations (including but
        not limited to state and federal securities law and federal margin
        requirements) and to such approvals by any listing, regulatory or
        governmental authority as may, in the opinion of counsel for the
        Company, be necessary or advisable in connection therewith. Any
        securities delivered under this Plan shall be subject to such
        restrictions as the Company may deem necessary or desirable to assure
        compliance with all applicable legal requirements. This Plan, the
        Awards, all documents evidencing Awards and all other related documents
        shall be governed by, and construed in accordance with, the laws of the
        State of Delaware. If any provision shall be held by a court of
        competent jurisdiction to be invalid and unenforceable, the remaining
        provisions of this Plan (subject to Section 9(b)) shall continue in
        effect.

               (b) Plan Construction. It is the intent of the Company that this
        Plan and Awards hereunder satisfy and be interpreted in a manner that in
        the case of recipients who are or may become persons subject to Section
        16 of the Exchange Act satisfies the applicable requirements of Rule
        16b-3 under the Exchange Act so that such persons will be entitled to
        the benefits of Rule 16b-3 or other exemptive rules under Section 16 of
        the Exchange Act and will not be subjected to avoidable liability
        thereunder. If any provision of this Plan or of any Award would
        otherwise frustrate or conflict with the intent expressed above, that
        provision to the extent possible shall be interpreted and deemed amended
        so as to avoid such conflict, but to the extent of any remaining
        irreconcilable conflict with such intent as to such persons in the
        circumstances, such provision shall be deemed inoperative.

               (c) Non-Exclusivity of Plan. Nothing in this Plan shall limit or
        be deemed to limit the authority of the Board or the Committee to grant
        awards or authorize any other compensation, with or without reference to
        the Common Shares, under any other plan or authority.

        10. Non-Employee Director Options

               (a) Participation. Awards relating to the Common Shares
        authorized under this Plan shall be made under this Section 10 only to
        Non-Employee Directors.

               (b) Certain Definitions. The following definitions shall apply to
        this Section 10:

                                       13

<PAGE>
                       (i) "Business Day" shall mean any day, other than
               Saturday, Sunday or any statutory holiday in the state of
               California.

                       (ii) "Director Option" shall mean an Option granted to a
               Non-Employee Director pursuant to this Section 10.

                       (iii) "Disability" shall mean a "permanent and total
               disability" within the meaning of Section 22(e)(3) of the Code.

                       (iv) "Fair Market Value" on a specified date shall mean
               (A) if the Common Shares are listed or admitted to trade on a
               national securities exchange, the average of the high and low
               reported sales prices of the Common Shares on the Composite Tape
               on such date, as published in the Western Edition of The Wall
               Street Journal, on the principal national securities exchange on
               which the Common Shares are so listed or admitted to trade, or,
               if there is no trading of the Shares on such date, then the
               average of the high and low reported sales prices of the Common
               Shares as quoted on such Composite Tape on the next preceding
               date on which there is trading in such Shares; (B) if the Common
               Shares are not listed or admitted to trade on a national
               securities exchange, the average of the high and low reported
               prices for the Common Shares on such date, as furnished by the
               National Association of Securities Dealers, Inc. ("NASD") through
               the NASDAQ National Market Reporting System (or a similar
               organization, if the NASD is no longer reporting such
               information); (C) if the Common Shares are not listed or admitted
               to trade on a national securities exchange and are not reported
               on the National Market Reporting System, the arithmetic mean
               between the bid and asked prices for the Shares on such date, as
               furnished by the NASD or a similar organization; or (D) if the
               Common Shares are not listed or admitted to trade on a national
               securities exchange nor reported on the National Market Reporting
               System and if bid and asked prices for the stock are not
               furnished by the NASD or a similar organization, the value as
               established by the Board at such time for purposes of this Plan.

                       (v) "Retirement" shall mean retirement or resignation as
               a director after at least five (5) years service as a director.

               (c) Annual Awards. On the same date as the annual grant of Awards
        to Employees pursuant to this Plan in each calendar year after 2000
        during the term of the Plan, there shall be granted to each Non-Employee
        Director then in office nonqualified stock options to purchase the
        number of Common Shares equal to 0.025% of the issued and outstanding
        Common Shares of the Company (excluding any Common Shares held in
        treasury by the Company) as of the end of the preceding fiscal year.

                                       14

<PAGE>
               (d) Minimum Number of Shares. Notwithstanding anything to the
        contrary contained herein, a Non-Employee Director shall not receive
        Options for less than 7,500 Common Shares pursuant to this Section 10 in
        any calendar year.

               (e) Purchase Price. The exercise price for Shares under any
        Director Option shall be equal to 100% of the Fair Market Value of a
        Common Share on the date the Director Option is granted. The exercise
        price for Shares under any Director Option may be modified by a separate
        vote of the members of the Board who are officers of the Company, as
        well as the full Board; provided, that the modified exercise price shall
        be no less than 100% of the Fair Market Value of a Common Share on the
        date the exercise price of the Director Option is modified. The exercise
        price of any option granted under this Section 10 shall be paid in full
        at the time of each purchase in cash equivalent or in Common Shares
        valued at their Fair Market Value on the date of exercise of such
        option, or partly in such shares and partly in cash, provided that any
        such Common Shares used in payment shall have been owned by the
        Non-Employee Director at least six months prior to the date of exercise.

               (f) Option Period and Exercisability. Each Director Option
        granted under this Section 10 shall become fully exercisable, in whole
        or in part, on the first anniversary of the grant date. Each option
        granted under this Section 10 and all rights or obligations thereunder
        shall expire on the earlier of the tenth anniversary of the date of
        grant or the liquidation or dissolution of the Company and shall be
        subject to earlier termination as provided below.

               (g) Termination of Directorship. If a Non-Employee Director's
        services as a member of the Board, or as a member of the board of
        directors of a subsidiary or affiliate of the Company, terminate by
        reason of death, Disability or Retirement, an option granted pursuant to
        this Section 10 then held by such Non-Employee Director shall
        immediately become and shall remain exercisable for one year after the
        date of such termination or until the expiration of the stated term of
        such option, whichever first occurs. If a Non-Employee Director's
        services as a member of the Board, or as a member of the board of
        directors of a subsidiary or affiliate of the Company, terminate for any
        other reason (other than Cause), any option granted pursuant to this
        Section 10 which is not then exercisable shall terminate and any such
        option which is then exercisable may be exercised for three months after
        the date of such termination or until the expiration of the stated term,
        which ever first occurs. If a Non-Employee Director is terminated for
        Cause, all Director Options granted to such Non-Employee Director shall
        be forfeited and shall no longer be exercisable, effective on the date
        of such termination for Cause. For purposes of this Section 10, "Cause"
        shall mean, with respect to any Non-Employee Director, termination on
        account of any act of (i) fraud or intentional misrepresentation, (ii)
        embezzlement, misappropriation or conversion of assets or opportunities
        of the Company or any subsidiary or affiliate, or (iii) conviction of a
        felony.

                                       15

<PAGE>
               (h) Adjustments. The provisions of this Section 10 and Director
        Options granted hereunder shall be subject to Section 6. If there shall
        occur any event described in Section 6(a), then in addition to the
        matters contemplated thereby, the Board shall, in such manner and to
        such extent (if any) as is appropriate and equitable, proportionately
        adjust the dollar amounts set forth elsewhere in this Section 10.

               (i) Loans. Subject to the requirements of applicable law, the
        Board may authorize loans to Non-Employee Directors to finance the
        exercise of Awards; provided, however, that no loan shall be made to any
        Non-Employee Director to finance the exercise of an Award made under
        this Section 10 unless (i) such loan is made pursuant to a full recourse
        promissory note, and (ii) such loan, if secured by Common Shares
        (whether issuable under the Award in question or otherwise), is made in
        compliance with Regulation G of the Federal Reserve Board.

               (j) Acceleration Upon a Change in Control. Upon the occurrence of
        a Change in Control referred to in Section 6(b), each Director Option
        granted under this Section 10 shall become immediately exercisable in
        full subject to the terms thereof. To the extent that any Director
        Option granted under this Section 10 is not exercised prior to (i) a
        dissolution of the Company or (ii) a merger or other corporate event
        that the Company does not survive, and no provision is (or consistent
        with the provisions of Section 9 or 10 can be) made for the assumption,
        conversion, substitution or exchange of the option, the Director Option
        shall terminate upon the occurrence of such event.

               (k) Other Provisions. The provisions of Sections 3(e)-(f), 5(h)
        and 7 through 9 are incorporated herein by this reference.

               (l) Grant of Options to Newly Elected Non-Employee Directors.
        Upon the election of a newly elected Non-Employee Director, there shall
        be granted automatically (without any action by the Committee or the
        Board) a nonqualified stock option (the grant date of which shall be the
        date of such election) to each newly elected Non-Employee Director as
        follows: (i) if the Non-Employee Director is elected within six months
        of the date on which the most recent Director Options were granted to
        existing Non-Employee Directors, a non-qualified stock option to
        purchase the same number of Common Shares for which the most recent
        Director Options were granted to existing Non-Employee Directors, and
        (ii) if the Non-Employee Director is elected more than six months
        following the date on which the most recent Director Options were
        granted to existing Non-Employee Directors, but prior to the date in the
        following calendar year on which Director Options are granted to
        existing Non-Employee Directors, a non-qualified stock option to
        purchase one-half the number of Common Shares for which the most recent
        Director Options were granted to existing Non-Employee Directors.

                                       16

<PAGE>
                                Amendments to the
                            2000 Stock Incentive Plan
             (Adopted by the Board of Directors on October 17, 2000)

1.      Section 4(c)(iv) of the 2000 Stock Incentive Plan ("2000 Plan") shall be
        deleted in its entirety and replaced with the following:

                       "(iv) extend the exercisability or term of any or all
               such outstanding Awards or otherwise change previously imposed
               terms and conditions, in the specified events described in clause
               (ii) above, or in other circumstances or upon the occurrence of
               other events as deemed appropriate by the Committee, in each case
               subject to Section 7;"

2.      Section 5(f)(iii) of the 2000 Plan shall be deleted in its entirety and
        replaced with the following:

                       "(iii) if the holder terminates service as an Employee by
               reason of death, or if such death occurs within three months
               after a termination described in clauses (i) or (ii), then such
               Option may be exercised within a period of twelve (12) months
               after the holder's termination of services as an Employee, to the
               extent such Option was exercisable on the date of such
               termination;"

3.      To correct the error in Section 6(b) of the 2000 Plan whereby there
        exist two subparagraphs enumerated as "(i)", the second such
        subparagraph shall be renumbered (ii) and the subparagraphs currently
        numbered (ii) and (iii) shall be renumbered (iii) and (iv).

4.      The second sentence of Section 7(a) of the 2000 Plan shall be deleted in
        its entirety and replaced with the following:

               "Notwithstanding the foregoing, any Award granted prior to such
               date may vest or be amended after such date in any manner that
               would have been permitted prior to such date, except that no such
               amendment shall increase the number of shares subject to or
               comprising such Award, extend the final expiration date of the
               Award or reduce the exercise price of or under such Award."

5.      The second sentence of Section 10(e) of the 2000 Plan shall be deleted
        in its entirety.

                                       17

<PAGE>
                                Amendments to the
                            2000 Stock Incentive Plan
              (Adopted by the Board of Directors on April 24, 2002)

The 2000 Stock Incentive Plan ("Plan") is hereby amended, effective as of April
24, 2002, as follows:

1.      By adding the following new sentence at the end of Section 3(b)(i) of
        the Plan:

        "Subject to Section 6, the maximum number of Common Shares that may be
        issued in conjunction with Awards of Restricted Stock granted after
        April 24, 2002 shall not exceed the sum of (i) 157,153 Common Shares;
        and (ii) any Common Shares issued in conjunction with an Award of
        Restricted Stock and reacquired after April 24, 2002 by the Company."

2.      By substituting the following sentence for the first sentence of Section
        5(d) of the Plan:

        "Awards may be exercised in whole or in part at such time or times as
        shall be determined by the Committee and set forth in the applicable
        Award Memorandum; provided, however that, if the right to become vested
        in such Award is conditioned on the completion of a specified period of
        service with the Company or the Subsidiaries, without achievement of
        performance objectives being required as a condition of either grant or
        vesting, then the required period of service for full vesting shall not
        be less than one year for shares covered by an Option Award and not less
        than three years for shares covered by a Restricted Stock Award (subject
        to acceleration of vesting, to the extent permitted by the Committee, in
        the event of the Participant's death, disability, retirement, change in
        control or involuntary termination)."

3.      By substituting the following for Section 5(e) of the Plan:

        "Common Shares may be issued pursuant to an Award for any lawful
        consideration as determined by the Committee, including, without
        limitation, cash, Common Shares (valued at then Fair Market Value, as
        defined in Section 10), or services rendered by the recipient of such
        Award; provided that no Common Shares shall be issued for less than the
        minimum lawful consideration and, for Options granted after April 24,
        2002, no Option shall be granted with an exercise price that is less
        than the Fair Market Value (as defined in Section 10) of the underlying
        Common Shares on the date of grant. Except for either adjustments
        pursuant to Section 6(a) (relating to adjustment of shares), or
        decreases approved by the Company's shareholders, the Exercise Price for
        any outstanding Option granted under the Plan may not be decreased after
        the date of grant nor may an outstanding Option granted under the Plan
        be surrendered to the Company as consideration for the grant of a new
        Option with a lower exercise price."

                                       18

<PAGE>
4.      By adding the following new sentence at the end of Section 7(b) of the
        Plan:

        "The provisions of Section 5(e) (relating to option pricing) cannot be
        amended unless the amendment is approved by the Company's shareholders."

5.      By adding the following sentence to Section 10(e) of the Plan as the
        second sentence thereof:

        "The exercise price for Shares under any Director Option may not be
        modified without shareholder approval."

                                       19

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