Document:

Prepared by R.R. Donnelley Financial -- Supplemental Stock Option Plan

  
 Exhibit 10.16 
  
 XILINX, INC. 
  
 SUPPLEMENTAL STOCK OPTION
PLAN* 
  

	1.
	 
	Purposes of the Plan.    The purposes of this Stock Plan are: 
 

  

	 	•
	 
	to attract and retain the best available personnel for positions of substantial responsibility, 
 

  

	 	•
	 
	to provide additional incentive to eligible Employees and Consultants, and 
 

  

	 	•
	 
	to promote the success of the Company’s business. 
 

  
 Nonstatutory Stock Options may be granted under the Plan. 
  

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

  
 (a)  “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance
with Section 4 of the Plan. 
  
 (b)  “Applicable Laws” means the legal requirements
relating to the administration of stock option plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the
Plan. 
  
 (c)  “Board” means the Board of Directors of the Company. 

 
 (d)  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (e)  “Committee” means a Committee appointed by the Board in accordance with Section 4 of the Plan.

  
 (f)  “Common Stock” means the Common Stock of the Company. 
  
 (g)  “Company” means Xilinx, Inc., a Delaware corporation. 
  
 (h)  “Consultant” means any person, including an advisor, engaged by the Company to render services and who is
compensated for such services, provided that the term “Consultant” shall not include any person who is also an officer or Director of the Company. 
  
 (i)    “Director” means a member of the Board. 
  
 (j)  “Disability” means total and permanent disability as defined in Section 22(e)(3) of he Code. 
  
 (k)  “EmpIoyee” means any person employed by the Company other than any person who is an officer or Director of the Company. 
  
 (1)  “Fair Market” means, as of any date, the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market trading day prior to the time 
  
  
 

	*
	 
	Adopted April 17, 1996 and adjusted to reflect stock splits as of March 11, 1999 and December 27, 1999. 
 

 
of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable. 
  
 (m)  “Nonstatutory Stock Option” means an Option not intended to qualify as an incentive stock option within the meaning of Section 422 of the
Code and the regulations promulgated thereunder. 
  
 (n)  “Notice of Grant” means a
written notice evidencing certain terms and conditions of an individual Option grant. The Notice of Grant is part of the Option Agreement. 
  
 (o)  “Option” means a stock option granted pursuant to the Plan. 
  
 (p)  “Option Agreement” means a written agreement between the Company and an optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and
conditions of the Plan. 
  
 (q)  “Optioned Stock” means the Common Stock subject to an
Option. 
  
 (r)  “Optionee” means an Employee or Consultant who holds an outstanding
Option. 
  
 (s)  “Plan” means this Supplemental Stock Option Plan. 

 
 (t)  “Share” means a share of the Common Stock, as adjusted in accordance with Section 12 of the
Plan. 
  
 3.    Stock Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the maximum
aggregate number of Shares which may be optioned and sold under the Plan is 2,200,000 Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option expires or becomes unexercisable without having been exercised in full, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated). 
  
 4.    Administration of the Plan. 
  
 (a)    Administration.    The Plan shall be administered by (i) the Board or (ii) a
Committee designated by the Board, which Committee shall be constituted to satisfy Applicable Laws. Once appointed, such Committee shall serve in its designated capacity until otherwise directed by the Board. The Board may increase the size of the
Committee and appoint additional members, remove members (with or without cause) and substitute new members, fill vacancies (however caused), and remove all members of the Committee and thereafter directly administer the Plan, all to the extent
permitted by Applicable Laws. 
  
 (b)    Powers of the
Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

  
 (i)  to determine the Fair Market Value of the Common Stock, in accordance with Section
2(l) of the Plan; 
  
 (ii)  to select the Consultants and Employees to whom Options may be
granted hereunder; 
  
 (iii)  to determine whether and to what extent Options are granted
hereunder; 

  
 (iv)  to determine the number of shares of Common Stock
to be covered by each Option granted hereunder; 
  
 (v)  to approve forms of agreement for
use under the Plan; 
  
 (vi)  to determine the terms and conditions, not inconsistent with
the terms of the Plan, of any award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall
determine; 
  
 (vii)  to construe and interpret the terms of the Plan and awards granted
pursuant to the Plan; 
  
 (viii)  to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
  
 (ix)  to modify or amend each Option (subject to Section 15(b) of the Plan), including the discretionary authority to extend the post-termination
exercisability period of Options; 
  
 (x)  to authorize any person to execute on behalf of
the Company any instrument required to effect the grant of an Option previously granted by the Administrator; 
  
 (xi)  to make all other determinations deemed necessary or advisable for administering the Plan. 
  
 (c)    Effect of Administrator’s Decision.    The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees and any other
holders of Options. 
  
 5.    Eligibility.    Nonstatutory Stock Options may be granted to
Employees and Consultants. If otherwise eligible, an Employee or Consultant who has been granted an Option may be granted additional Options. Notwithstanding anything to the contrary contained in the Plan, Options may not be granted to officers or
Directors under this Plan. 
  
 6.    Limitations.    Neither the Plan nor any Option shall
confer upon an Optionee any right with respect to continuing the Optionee’s employment or consulting relationship with the Company, nor shall they interfere in any way with the Optionee’s right or the Company’s right to terminate such
employment or consulting relationship at any time, with or without cause. 
  
 7.    Term of
Plan.    The Plan shall become effective upon its adoption by the Board. It shall continue in effect until terminated under Section 15 of the Plan. 
  
 8.    Term of Option.    The term of each Option shall be stated in the Notice of Grant. 
  
 9.    Option Exercise Price and Consideration 
  
 (a)    Exercise Price.    The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator. 
  
 (b)    Waiting Period and Exercise Dates.    At the time an Option is granted, the
Administrator shall fix the period within which the, Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. 

  
 (c)    Form of
Consideration.    The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment. Such consideration may consist entirely of 
  
 (i)  cash; 
  
 (ii)  check; 
  
 (iii)  promissory note; 
  
 (iv)  other Shares which (A)
in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised; 
  
 (v)  delivery of a properly executed
exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price;

  
 (vi)  such other consideration and method of payment for the issuance of Shares to the
extent permitted by Applicable Laws; or 
  
 (vii)  any combination of the foregoing methods
of payment. 
  
 10.    Exercise of Option. 
  
 (a)    Procedure for Exercise; Rights as a Shareholder.    Any Option granted hereunder shall be exercisable according to the
terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. 
  
 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed
exercised when the Company receives: (i) written notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested
by the Optionee, in the name of the Optionee and his or her spouse. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any. other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate
promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 12 of the Plan. 
  
 Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale
under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b)    Termination of Employment.    Upon termination of an Optionee’s status as an Employee or Consultant (other than as a result of the Optionee’s death or Disability), the
Optionee may exercise his or her Option, but only within thirty (30) days from the date of such termination or such other period of time as is determined by the Administrator (but not to exceed twelve (12) months) and, unless determined otherwise by
the Administrator, only to the extent that the Optionee was entitled to exercise it at the date of such termination (and in no event later than the expiration of the term of such Option as set forth in the Option Agreement). To
 

 
the extent that Optionee was not entitled to exercise an Option at the date of such termination, and to the extent that the Optionee does not exercise such Option (to the extent otherwise so
entitled) within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 Notwithstanding the above, in the event of an Optionee’s change in status from Consultant to Employee or Employee to Consultant, the Optionee’s status as an Employee or Consultant shall not automatically terminate
solely as a result of such change in status. 
  
 (c)    Disability of
Optionee.    Upon termination of an Optionee’s status as an Employee or Consultant as a result of the Optionee’s Disability, the Optionee may exercise his or her Option, but only within three (3) months or such time
period as the Administrator shall specify from the date of such termination (but not to exceed twelve (12) months), and, unless determined otherwise by the Administrator, only to the extent that the Optionee was entitled to exercise it at the date
of such termination (and in no event later than the expiration of the term of such Option as set forth in the Option Agreement). To the extent that Optionee was not entitled to exercise an Option at the date of such termination, and to the extent
that the Optionee does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (d)    Death of Optionee.    In the event of an Optionee’s death, the Optionee’s
estate or a person who acquired the right to exercise the deceased Optionee’s Option by bequest or inheritance may exercise the Option, but only within twelve (12) months or such shorter time period as the Administrator shall specify following
the date of death, and, unless determined otherwise by the Administrator, only to the extent that the Optionee was entitled to exercise it at the date of death (but in no event later than the expiration of the term of such Option as set forth in the
Option Agreement). To the extent that Optionee was not entitled to exercise an Option at the date of death, and to the extent that the Optionee’s estate or a person who acquired the right to exercise such Option does not exercise such Option
(to the extent otherwise so entitled) within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 11.    Non-Transferability of Options.    An Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than
by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 
  
 12.    Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
  
 (a)    Changes in Capitalization.    Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Option, and the
number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option, as well as the price per
share of Common Stock covered by each such outstanding Option shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible
securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as
expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option. 
  
 (b)    Dissolution or
Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would
not otherwise be exercisable. In addition, the
 

 
Administrator may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Option shall lapse as to all such Shares, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Option will terminate immediately prior to the consummation of such proposed action. 
  
 (c)    Merger or Asset Sale.    In the event of a merger of the Company with or into
another corporation, or the sale of substantially all of the assets of the Company, each outstanding Option will be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation (the “Successor Corporation”), unless the Successor Corporation refuses to assume or substitute for the Option, in which case the Optionee shall have the right to exercise the Option as to all of the Optioned Stock, including
Shares as to which it would not otherwise be exercisable. If an Option is exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee that the Option shall be fully
exercisable for a period of thirty (30) days from the date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes of this paragraph the Option shall be considered assumed if, following the merger or sale
of assets, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or
property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets was not solely common stock of the Successor Corporation, the Administrator may, with the consent of the Successor
Corporation, provide for the consideration to be received upon the exercise of the Option for each Share of Optioned Stock subject to the Option to be solely common stock of the Successor Corporation equal in fair market value to the per share
consideration received by holders of Common Stock in the merger or sale of assets. 
  
 13.    Date of
Grant.    The date of grant of an Option shall be, for all purposes, the date on which the Administrator makes the determination granting such Option, or such other later date as is determined by the Administrator. Notice of
the determination shall be provided to each Optionee within a reasonable time after the date of such grant. 
  
 14.    Withholding Taxes.    In accordance with any applicable administrative guidelines it establishes, the Administrator may allow a purchaser to pay the amount of taxes required by
law to be withheld as a result of a purchase of Shares, by withholding from any payment of Common Stock due as a result of such purchase, or by permitting the purchaser to deliver to the Company, Shares having a Fair Market Value, as determined by
the Administrator, equal to the amount of such required withholding taxes. 
  
 15.    Amendment and Termination of
the Plan. 
  
 (a)    Amendment and Termination.    The Board may
at any time amend, alter, suspend or terminate the Plan. 
  
 (b)    Effect of Amendment or
Termination.    No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in
writing and signed by the Optionee and the Company. 
  
 16.    Conditions Upon Issuance of Shares. 

 
 (a)    Legal Compliance.    Shares shall not be issued pursuant to the exercise
of an Option unless the exercise of such Option and the issuance and delivery of such Shares shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, Applicable Laws, and the requirements of any stock exchange or quotation system upon which the Shares may then be listed or quoted, and shall be further subject to the approval of counsel for the Company with
respect to such compliance. 

  
 (b)    Investment
Representations.    As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares if in the opinion of counsel for the Company, such a representation is required. 
  
 17.    Liability of Company.    The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

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

                                                                    Exhibit 10.9

                                EXAR CORPORATION

                           2000 EQUITY INCENTIVE PLAN

                            Adopted September 7, 2000
                 Amended and Restated Effective December 6, 2000
                 Amended and Restated Effective January 26, 2001
                  Amended and Restated Effective June 21, 2001
                  Amended and Restated Effective March 21, 2002
                        Stockholder Approval Not Required

1.   Purposes.

     The persons eligible to receive Stock Awards are the Employees and
Consultants of the Company. The purpose of the Plan is to provide a means by
which eligible recipients of Stock Awards may be given an opportunity to benefit
from increases in value of the stock of the Company through the granting of (i)
Nonstatutory Stock Options, (ii) stock bonuses and (iii) rights to purchase
restricted stock, all as described below. The Plan is also intended to provide a
means by which the Company may grant Stock Awards to persons not previously
employed by the Company as an inducement essential to those persons entering
employment contracts with the Company. Such inducement grants may be made to
persons who ultimately are employed by the Company as Officers.

     The Company, by means of the Plan, seeks to retain the services of persons
who are or will become Employees of or Consultants to the Company or an
Affiliate, and to provide incentives for such persons to exert maximum efforts
for the success of the Company and its Affiliates.

     The Company intends that the Stock Awards issued under the Plan shall, in
the discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c), be
either (i) Options granted pursuant to Section 6 hereof or (ii) stock bonuses or
rights to purchase restricted stock granted pursuant to Section 8 hereof.

2.   Definitions.

     (a) "Affiliate" means any parent corporation or subsidiary corporation of
the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f) respectively, of the Code.

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

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

     (d) "Committee" means a committee or subcommittee appointed by the Board in
accordance with subsection 3(c) of the Plan.

     (e) "Company" means Exar Corporation, a Delaware corporation.

                                       1.

<PAGE>

     (f) "Consultant" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services.

     (g) "Continuous Service" means that the service of an individual to the
Company, whether as an Employee, Officer, Director or Consultant, is not
interrupted or terminated. The Board or the Committee may determine, in that
party's sole discretion, whether Continuous Service shall be considered
interrupted in the case of any leave of absence approved by the Board or the
Committee, including sick leave, military leave, or any other personal leave.
Continuous Service shall not be deemed to have terminated merely because of a
change in the capacity in which a person renders service to the Company or an
Affiliate, whether such service is as an Employee, Officer, Director or
Consultant or a change in the entity for which the person renders such service,
provided that there is no interruption in the person's service relationship with
the Company or an Affiliate.

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

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

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

     (k) "Fair Market Value" means, as of any date, the lower of (1) the last
quoted per share selling price for the Company's Common Stock on the Nasdaq
National Market on the relevant date; or (2) the arithmetic mean of the highest
and lowest quoted selling prices on the Nasdaq National Market on the relevant
date. If there were no sales on such date, then "Fair Market Value" means on the
nearest trading day before the lower of (1) the last quoted per share selling
price for the Company's Common Stock on the Nasdaq National Market; or (2) the
arithmetic mean of the highest and lowest quoted selling prices on the Nasdaq
National Market.

     Notwithstanding the preceding, for federal, state, and local income tax
purposes, fair market value shall be determined by the Board (or its delegate)
in accordance with uniform and nondiscriminatory standards adopted from time to
time.

     (l) "Non-Employee Director" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or subsidiary, does not
receive compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure would be required under Item 404(a) of Regulation S-K, and is
not engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a
"non-employee director" for purposes of Rule 16b-3.

     (m) "Nonstatutory Stock Option" means a stock option not intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code and the regulations promulgated thereunder.

                                       2.

<PAGE>

     (n) "Officer" means a person who possesses the authority of an "officer" as
that term is used in Rule 4460(i)(1)(A) of the Rules of the National Association
of Securities Dealers, Inc. For purposes of the Plan, a person in the position
of "Vice President" or higher shall be classified as an "Officer" unless the
Board or Committee expressly finds that such person does not possess the
authority of an "officer" as that term is used in Rule 4460(i)(1)(A) of the
Rules of the National Association of Securities Dealers, Inc.

     (o) "Option" means a Nonstatutory Stock Option granted pursuant to the
Plan.

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

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

     (r) "Plan" means this 2000 Equity Incentive Plan.

     (s) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect with respect to the Company at the time discretion is
being exercised regarding the Plan.

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

     (u) "Stock Award" means any right granted under the Plan, including any
Option, any stock bonus, and any right to purchase restricted stock.

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

3.   Administration.

     (a) The Plan shall be administered by the Board unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).

     (b) The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

         (1) To determine from time to time which of the persons eligible under
the Plan shall be granted Stock Awards; when and how each Stock Award shall be
granted; whether a Stock Award will be an Option, a stock bonus, a right to
purchase restricted stock, or a combination of the foregoing; the provisions of
each Stock Award granted (which need not be identical), including the time or
times when a person shall be permitted to receive stock pursuant to a Stock
Award; and the number of shares with respect to which a Stock Award shall be
granted to each such person.

                                       3.

<PAGE>

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

          (3) To amend the Plan or a Stock Award as provided in Section 13.

          (4) To terminate or suspend the Plan as provided in Section 14.

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

     (c)  The Board may delegate administration of the Plan to a committee of
the Board composed of two (2) or more members (the "Committee"), all of the
members of which Committee may be, in the discretion of the Board, Non-Employee
Directors. If administration is delegated to a Committee, the Committee shall
have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee any of
the administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the Committee or
such a subcommittee), subject, however, to such resolutions, not inconsistent
with the provisions of the Plan, as may be adopted from time to time by the
Board. The Board may abolish the Committee at any time and revest in the Board
the administration of the Plan. In addition, notwithstanding anything in this
Section 3 to the contrary, the Board or the Committee may delegate to a
subcommittee of one or more members of the Board the authority to grant Stock
Awards to eligible persons who are not then subject to Section 16 of the
Exchange Act.

4.   Shares Subject to the Plan.

     (a)  Subject to the provisions of Section 12 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Stock Awards shall
not exceed in the aggregate five million seven hundred thousand (5,700,000)
shares of the Company's Common Stock. If any Stock Award shall for any reason
expire or otherwise terminate, in whole or in part, without having been
exercised in full, the stock not acquired under such Stock Award shall revert to
and again become available for issuance under the Plan.

     (b)  The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

5.   Eligibility.

     (a)  Stock Awards may be granted only to Employees or Consultants.

     (b)  The aggregate number of shares issued pursuant to Stock Awards granted
to Officers shall not exceed forty percent (40%) of the number of shares
reserved for issuance under the Plan, as determined at the time of each such
issuance to an Officer, except that there shall be excluded from this
calculation shares issued to Officers not previously employed by the

                                       4.

<PAGE>

Company pursuant to Stock Awards granted as an inducement essential to such
individuals entering into employment relationships with the Company.

     (c)  A Consultant shall not be eligible for the grant of a Stock Award if,
at the time of grant, a Form S-8 Registration Statement under the Securities Act
("Form S-8") is not available to register either the offer or the sale of the
Company's securities to such Consultant because of the nature of the services
that the Consultant is providing to the Company, or because the Consultant is
not a natural person, or as otherwise provided by the rules governing the use of
Form S-8, unless the Company determines both (i) that such grant (A) shall be
registered in another manner under the Securities Act (e.g., on a Form S-3
Registration Statement) or (B) does not require registration under the
Securities Act in order to comply with the requirements of the Securities Act,
if applicable, and (ii) that such grant complies with the securities laws of all
other relevant jurisdictions.

6.   Option Provisions.

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

     (a)  Term. No Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.

     (b)  Price. Except as otherwise provided in Section 7 of the Plan, the
exercise price of each Option shall be not less than one hundred percent (100%)
of the Fair Market Value of the stock subject to the Option on the date of
grant.

     (c)  Consideration. The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board or the Committee, at the time of the grant of the
Option, (A) by delivery to the Company of other common stock of the Company, (B)
according to a deferred payment arrangement (however, in the event the Company
is then incorporated in the state of Delaware, then payment of the common
stock's "par value" as defined in the Delaware General Corporation Law shall not
be made by deferred payment), or other arrangement (which may include, without
limiting the generality of the foregoing, the use of other common stock of the
Company) with the person to whom the Option is granted or to whom the Option is
transferred pursuant to subsection 6(d) or (C) in any other form of legal
consideration that may be acceptable to the Board. Unless otherwise specifically
provided in the Option, the purchase price of common stock of the Company
acquired pursuant to an Option that is paid by delivery to the Company of other
Company common stock acquired directly or indirectly from the Company, shall be
paid only by shares of common stock of the Company that have been held for more
than six (6) months (or such longer or shorter period of time required to avoid
a charge to earnings for financial accounting purposes). In the case of any
deferred payment arrangement, interest shall be compounded at least annually and
shall be charged at the minimum rate of interest necessary to avoid the
treatment as interest, under any applicable

                                       5.

<PAGE>

provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

     (d) Transferability. An Option shall not be transferable except by will or
by the laws of descent and distribution, and shall be exercisable during the
lifetime of the person to whom the Option is granted only by such person;
provided, however, that an Option may be transferred to the extent provided in
the Option Agreement. The person to whom the Option is granted may, but need
not, designate, by delivering written notice of the same to the Company (in a
form acceptable to the Company) during such person's lifetime, a third party
who, in the event of the death of the Optionholder, shall thereafter be entitled
to exercise the Option and receive any and all proceeds thereof. If no such
designation is made during the Optionholder's lifetime, the estate or the person
to whom the Option is transferred by will or by the laws of descent and
distribution shall, in the event of the death of the Optionholder, thereafter be
entitled to exercise the Option and receive any and all proceeds thereof.

     (e) Vesting. The total number of shares of stock subject to an Option may,
but need not, be allotted in periodic installments (which may, but need not, be
equal). From time to time during each of such installment periods, the Option
may become exercisable ("vest") with respect to some or all of the shares
allotted to that period, and may be exercised with respect to some or all of the
shares allotted to such period and/or any prior period as to which the Option
was not fully exercised. During the remainder of the term of the Option (if its
term extends beyond the end of the installment periods), the Option may be
exercised from time to time with respect to any shares then remaining subject to
the Option. The provisions of this subsection 6(e) are subject to any Option
provisions governing the minimum number of shares as to which an Option may be
exercised.

     (f) Termination of Employment or Relationship as a Director or Consultant.
In the event an Optionholder's Continuous Service terminates (other than upon
the Optionholder's death or disability), the Optionholder may exercise the
Option (to the extent that the Optionholder was entitled to exercise it as of
the date of termination) but only within such period of time ending on the
earlier of (i) the date three (3) months following the termination of the
Optionholder's Continuous Service (or such longer or shorter period as specified
in the Option Agreement), or (ii) the expiration of the term of the Option as
set forth in the Option Agreement; provided, however, if the Optionholder is
terminated for cause, then the Option shall terminate on the date Optionholder's
Continuous Service ceases. If, at the date of termination, the Optionholder is
not entitled to exercise the entire Option, the shares covered by the
unexercisable portion of the Option shall revert to and again become available
for issuance under the Plan. If, after termination, the Optionholder does not
exercise the Option within the time specified in the Option Agreement, the
Option shall terminate, and the shares covered by such Option shall revert to
and again become available for issuance under the Plan.

     An Optionholder's Option Agreement may also provide that if the exercise of
the Option following the termination of the Optionholder's Continuous Service
(other than upon the Optionholder's death or disability) would result in
liability under Section 16(b) of the Exchange Act, then the Option shall
terminate on the earlier of (i) the expiration of the term of the Option set
forth in the Option Agreement, or (ii) the tenth (10th) day after the last date
on which such exercise would result in such liability under Section 16(b) of the
Exchange Act. Finally, an

                                       6.

<PAGE>

Optionholder's Option Agreement may also provide that if the exercise of the
Option following the termination of the Optionholder's Continuous Service (other
than upon the Optionholder's death or disability) would be prohibited at any
time solely because the issuance of shares would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in the first
paragraph of this subsection 6(f), or (ii) the expiration of a period of three
(3) months after the termination of the Optionholder's Continuous Service during
which the exercise of the Option would not be in violation of such registration
requirements.

     (g) Disability of Optionholder. In the event an Optionholder's Continuous
Service terminates as a result of the Optionholder's disability, the
Optionholder may exercise the Option (to the extent that the Optionholder was
entitled to exercise it as of the date of termination), but only within such
period of time ending on the earlier of (i) the date twelve (12) months
following such termination (or such longer or shorter period specified in the
Option Agreement), or (ii) the expiration of the term of the Option as set forth
in the Option Agreement. If, at the date of termination, the Optionholder is not
entitled to exercise the entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance
under the Plan. If, after termination, the Optionholder does not exercise the
Option within the time specified herein, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for
issuance under the Plan.

     (h) Death of Optionholder. In the event of the death of an Optionholder
during, or within a period specified in the Option Agreement after the
termination of, the Optionholder's Continuous Service, the Option may be
exercised (to the extent the Optionholder was entitled to exercise the Option as
of the date of death) by the Optionholder's estate, by a person who acquired the
right to exercise the Option by bequest or inheritance or by a person designated
to exercise the Option upon the Optionholder's death pursuant to subsection
6(d), but only within the period ending on the earlier of (i) the date eighteen
(18) months following the date of death (or such longer or shorter period
specified in the Option Agreement), or (ii) the expiration of the term of such
Option as set forth in the Option Agreement. If, at the time of death, the
Optionholder was not entitled to exercise the entire Option, the shares covered
by the unexercisable portion of the Option shall revert to and again become
available for issuance under the Plan. If, after death, the Option is not
exercised within the time specified herein, the Option shall terminate, and the
shares covered by such Option shall revert to and again become available for
issuance under the Plan.

7.   Deferred Salary Grants.

     (a) Any Employee who is selected by the Board or Committee ("Deferral
Participant") may elect to apply a portion of his or her base salary, in an
amount equal to at least five thousand dollars ($5,000) but in no event more
than fifty thousand dollars ($50,000), to the acquisition of an Option to
purchase shares of the Company's common stock pursuant to the terms of this
Section 7 ("Deferred Salary Option"). Such election is irrevocable and must be
filed with the Company prior to the commencement of the calendar year in which
the base salary to be deferred is earned. Notwithstanding the foregoing, a newly
hired, elected or appointed Deferral Participant may file an irrevocable
election with the Company within thirty (30) days of the date the Deferral
Participant commences employment with the Company.

                                       7.

<PAGE>

     Each Deferral Participant who files such a timely election shall
automatically be granted an Option under this Section 7 on (i) the first trading
day in January of the calendar year for which the deferral election is to be in
effect; or (ii) for a newly hired Deferral Participant, the first trading day of
the month following the month the Deferral Participant files such election.

     (b) The number of shares of Company common stock subject to a Deferred
Salary Option shall be determined pursuant to the following formula (rounded
down to the nearest whole number):

         X= A / (B x 66-2/3%), where
         X is the number of Option shares,
         A is the maximum amount of base salary subject to the deferral
         election, and
         B is the Fair Market Value per share of the common stock on the Option
         grant date.

     (c) The purchase price per share of common stock of the Company for the
shares to be purchased pursuant to the exercise of any Deferred Salary Option
shall be thirty three and one third percent (33-1/3%) of the fair market value
of the Company's common stock on the date such Deferred Salary Option is
granted.

     (d) Each Deferred Salary Option shall vest (become exercisable) equally
over the twelve (12) month period that is the calendar year in which salary is
deferred, and shall terminate on the earlier of (i) ten (10) years from the date
the Option was granted, or (ii) three (3) years following termination of the
Deferral Participant's employment with the Company or an Affiliate. If the
Deferred Salary Option is not exercised during the applicable period, it shall
be deemed to have been forfeited and of no further force or effect.

8.   Terms of Stock Bonuses and Purchases of Restricted Stock.

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

     (a) Purchase Price. The purchase price under each restricted stock purchase
agreement shall be such amount as the Board or Committee shall determine and
designate in such Stock Award Agreement. Notwithstanding the foregoing, the
Board or the Committee may determine that eligible participants in the Plan may
be awarded stock pursuant to a stock bonus agreement in consideration for past
services actually rendered to the Company or for its benefit.

     (b) Transferability. No rights under a stock bonus or restricted stock
purchase agreement shall be transferable by any participant under the Plan,
either voluntarily or by operation of law, except where such assignment is
required by law or expressly authorized by the terms of the applicable Stock
Award Agreement.

                                       8.

<PAGE>

     (c) Consideration. The purchase price of stock acquired pursuant to a stock
purchase agreement shall be paid either: (i) in cash at the time of purchase;
(ii) at the discretion of the Board or the Committee, according to a deferred
payment arrangement or other arrangement with the person to whom the stock is
sold; or (iii) in any other form of legal consideration that may be acceptable
to the Board or the Committee in its discretion. Notwithstanding the foregoing,
the Board or the Committee to which administration of the Plan has been
delegated may award stock pursuant to a stock bonus agreement in consideration
for past services actually rendered to the Company or for its benefit.

     (d) Vesting. Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board or the Committee.

     (e) Termination of Employment or Relationship as a Director or Consultant.
In the event an Optionholder's Continuous Service terminates, the Company may
repurchase or otherwise reacquire any or all of the shares of stock held by that
person which have not vested as of the date of termination under the terms of
the stock bonus or restricted stock purchase agreement between the Company and
such person.

9.   Covenants of the Company.

     (a) During the terms of the Stock Awards, the Company shall keep available
at all times the number of shares of stock required to satisfy such Stock Awards
up to the number of shares of stock authorized under the Plan.

     (b) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the Stock Award; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act either the Plan, any Stock Award granted under the Plan or
any stock issued or issuable pursuant to any such Stock Award. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of stock under the Plan, the Company shall be
relieved from any liability for failure to issue and sell stock upon exercise of
such Stock Awards unless and until such authority is obtained.

10.  Use of Proceeds From Stock.

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

11.  Miscellaneous.

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

                                       9.

<PAGE>

     (b) No Employee, Director or Consultant or any person to whom a Stock Award
is transferred under subsection 6(d) or 8(b) shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares subject
to such Stock Award unless and until such person has satisfied all requirements
for exercise of the Stock Award pursuant to its terms.

     (c) Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Employee or Consultant or other holder of
Stock Awards any right to continue to serve the Company or any Affiliate in the
capacity in effect at the time the Stock Award was granted or shall affect the
right of the Company or any Affiliate to terminate (i) the employment of any
Employee with or without cause, or (ii) the service of a Consultant subject to
the terms of such Consultant's agreement with the Company or any Affiliate. In
the event that a holder of Stock Awards is permitted or otherwise entitled to
take a leave of absence, the Board or Committee shall have the unilateral right
to (i) determine whether such leave of absence will be treated as a termination
of employment or relationship as consultant for purposes of the Plan and
corresponding provisions of any outstanding Stock Awards, and (ii) suspend or
otherwise delay the time or times at which the shares subject to the Stock
Awards would otherwise vest. The status of any person as an eligible Employee or
Consultant shall not be construed as a commitment that any Stock Award will be
granted under the Plan to such eligible Employee or Consultant, or to eligible
Employees or Consultants generally.

     (d) Payments and other benefits received by an Optionholder under the Plan
or under an Option granted pursuant to the Plan shall not be deemed a part of an
Optionholder's regular, recurring compensation for purposes of the termination,
indemnity or severance pay law of any country and shall not be included in, nor
have any effect on, the determination of benefits under any other employee
benefit plan, contract or similar arrangement provided by the Company or a Group
Company, unless expressly so provided by such other plan, contract or
arrangement, or unless the Board expressly determines that an Option or portion
of an Option should be included to reflect competitive compensation practices or
to recognize that an Option has been granted in lieu of a portion of competitive
cash compensation.

     (e) The Company may require any person to whom a Stock Award is granted, or
any person to whom a Stock Award is transferred pursuant to subsection 6(d) or
8(b), as a condition of exercising or acquiring stock under any Stock Award, (1)
to give written assurances satisfactory to the Company as to such person's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters, and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (2) to
give written assurances satisfactory to the Company stating that such person is
acquiring the stock subject to the Stock Award for such person's own account and
not with any present intention of selling or otherwise distributing the stock.
The foregoing requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (i) the issuance of the shares upon the
exercise of the Option has been registered under a then currently effective
registration statement under the Securities Act, or (ii) as to any particular
requirement, a determination is made by counsel for the Company that such
requirement need not be met in the circumstances under the then applicable
securities laws.

                                      10.

<PAGE>

     (f) To the extent provided by the terms of a Stock Award Agreement, the
person to whom a Stock Award is granted may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of stock
under a Stock Award by any of the following means or by a combination of such
means: (1) tendering a cash payment; (2) authorizing the Company to withhold
shares from the shares of the common stock otherwise issuable to the participant
as a result of the exercise or acquisition of stock under the Stock Award; or
(3) delivering to the Company owned and unencumbered shares of Company common
stock. Notwithstanding the foregoing, the Company shall not be authorized to
withhold shares of Common Stock at rates in excess of the minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes.

12.  Adjustments Upon Changes in Stock.

     (a) If any change is made in the stock subject to the Plan, or subject to
any Stock Award (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan shall automatically be
adjusted as appropriate in the type(s) and maximum number of securities subject
to the Plan pursuant to subsection 4(a) and the outstanding Stock Awards will be
appropriately adjusted in the type(s) and number of securities and price per
share of stock subject to such outstanding Stock Awards. (The conversion of any
convertible securities of the Company shall not be treated as a "transaction not
involving the receipt of consideration by the Company.")

     (b) In the event of (1) a dissolution or liquidation of the Company; (2) a
merger or consolidation in which the Company is not the surviving corporation;
(3) a reverse merger in which the Company is the surviving corporation but the
shares of the Company's common stock outstanding immediately preceding the
merger are converted by virtue of the merger into other property, whether in the
form of securities, cash or otherwise; or (4) any other capital reorganization
in which more than fifty percent (50%) of the shares of the Company entitled to
vote are exchanged, excluding in each case a capital reorganization in which the
sole purpose is to change the state of incorporation of the Company, then all
outstanding Stock Awards shall become vested and exercisable in full for a
period of at least ten (10) days. Outstanding Stock Awards that have not been
exercised prior to such event shall terminate on the date of such event unless
assumed by a successor corporation.

13.  Amendment of the Plan and Stock Awards.

     (a) The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 12 relating to adjustments upon changes
in stock, no amendment shall be effective unless approved by the stockholders of
the Company to the extent stockholder approval is necessary for the Plan to
satisfy the requirements of Rule 16b-3 of the Exchange Act or any Nasdaq or
securities exchange listing requirements.

     (b) Rights and obligations under any Stock Award granted before amendment
of the Plan shall not be impaired by any amendment of the Plan unless (i) the
Company requests the

                                      11.

<PAGE>

consent of the person to whom the Stock Award was granted and (ii) such person
consents in writing.

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

14.  Termination or Suspension of the Plan.

     (a) The Board may suspend or terminate the Plan at any time. No Stock
Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

     (b) Rights and obligations under any Stock Award granted while the Plan is
in effect shall not be impaired by suspension or termination of the Plan, except
with the written consent of the person to whom the Stock Award was granted.

15.  Effective Date of Plan.

     The Plan shall become effective on the date on which it is adopted by the
Board.

                                      12.

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