Document:

Exhibit
      10.2

    AMENDED
      AND RESTATED

     

    2005
      EQUITY INCENTIVE PLAN

    OF

    THE
      CHILDREN’S PLACE RETAIL STORES, INC.

     

    

     

    1.  Purpose.
      The
      purpose of this Equity Incentive Plan is to advance the interests of the
      Corporation by encouraging and enabling the acquisition of a larger personal
      proprietary interest in the Corporation by key employees and directors of the
      Corporation and its Subsidiaries upon whose judgment and keen interest the
      Corporation is largely dependent for the successful conduct of its operations
      and by providing such key employees and directors with incentives to put forth
      maximum efforts for the success of the Corporation’s business. It is anticipated
      that the acquisition of such proprietary interests in the Corporation and such
      incentives will stimulate the efforts of such key employees and directors on
      behalf of the Corporation and its Subsidiaries and strengthen their desire
      to
      remain with the Corporation and its Subsidiaries. It is also expected that
      such
      incentives and the opportunity to acquire such a proprietary interest will
      enable the Corporation and its Subsidiaries to attract desirable employees
      and
      directors.

     

    2.  Definitions.
      When
      used in this Plan, unless the context otherwise requires:

     

    (a)  “Alternative
      Rights” shall have the meaning as set forth in Section 9 hereof.

     

    (b)  “Board
      of
      Directors” shall mean the Board of Directors of the Corporation, as constituted
      at any time.

     

    (c)  Except
      as
      otherwise provided in the holder’s employment agreement (if any) with the
      Corporation or a Subsidiary, “Cause” shall mean, with respect to the holder of
      an Incentive Award, (i) a breach by the holder of any of the material provisions
      of any employment agreement between the holder and the Corporation or a
      Subsidiary that the holder fails to remedy or cease within ten (10) days after
      notice thereof to the holder; (ii) any conduct, action or behavior by the holder
      that has or may reasonably be expected to have a material adverse effect on
      the
      reputation of the Corporation or its Subsidiaries or on the holder’s reputation
      or that is not befitting of an executive officer, employee or director of the
      Corporation or a Subsidiary; (iii) the commission by the holder of an act
      involving moral turpitude or dishonesty, whether or not in connection with
      the
      holder’s employment by, or service as a director of, the Corporation or a
      Subsidiary; (iv) the holder shall have committed any act of fraud or
      embezzlement against the Corporation or a Subsidiary or engaged in any other
      willful misconduct in connection with his duties; or (v) the holder shall have
      been convicted of a felony (other than a felony relating to motor vehicle laws).
      Notwithstanding the foregoing, no Cause shall be deemed to exist with respect
      to
      the holder’s acts described in (ii) above unless the Corporation shall have
      given prior written notice to the holder specifying the Cause with reasonable
      particularity and, within 30 days after such notice, the holder shall not have
      cured or eliminated the problem or thing giving rise to such Cause.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d)  “Chairman
      of the Board” shall mean the person who at the time shall be Chairman of the
      Board of Directors.

     

    (e)  “Change
      in Control” shall mean any of the following events: (i) the sale to any
      purchaser of (A) all or substantially all of the assets of the Corporation
      or
      (B) capital stock representing more than 50% of the stock of the
      Corporation entitled to vote generally in the election of directors of the
      Corporation; (ii) the merger or consolidation of the Corporation with another
      corporation if, immediately after such merger or consolidation, less than a
      majority of the combined voting power of the then outstanding securities
      entitled to vote generally in the election of directors of the surviving or
      resulting corporation in such merger or consolidation is held, directly or
      indirectly, in the aggregate by the holders immediately prior to such
      transaction of the outstanding securities of the Corporation; (iii) the filing
      of a report on Schedule 13D or Schedule 14D-1 (or any successor schedule, form,
      or report or item therein), each promulgated pursuant to the Exchange Act,
      disclosing that any person (as the term “person” is used in Section 13(d)(3) or
      Section 14(d)(2) of the Exchange Act) has become the beneficial owner (as the
      term “beneficial owner” is defined under Rule 13d-3 or any successor rule or
      regulation promulgated under the Exchange Act) of securities representing 50%
      or
      more of the combined voting power of the voting stock of the Corporation; or
      (iv) the filing by the Corporation of a report or proxy statement with the
      Securities and Exchange Commission pursuant to the Exchange Act disclosing
      in
      response to Form 8-K or Schedule 14A (or any successor schedule, form, or report
      or item therein) that a change in control of the Corporation has occurred or
      will occur in the future pursuant to any then existing contract or transaction.
      Notwithstanding the foregoing, a “Change in Control” shall not be deemed to
      occur as a result of an event described above if a majority of the individuals
      who are members of the Board of Directors prior to such event specifically
      determines that a Change in Control should not be deemed to have
      occurred.

     

    (f)  “Code”
      shall mean the Internal Revenue Code of 1986, as amended.

     

    (g)  “Committee”
      shall mean the Committee hereinafter described in Section 3 hereof.

     

    (h)  “Corporation”
      shall mean The Children’s Place Retail Stores, Inc., a Delaware
      corporation.

     

    (i)  “Deferred
      Stock Award” shall mean an Incentive Award granted in accordance with Section 15
      hereof.

     

    (j)  “Disability”
      shall mean: (i) with respect to the holder of an Option that is not an incentive
      stock option, the holder’s inability, as a result of physical or mental
      incapacity or infirmity, to perform the duties of his employment for (a) a
      continuous period of at least 120 days, or (b) periods aggregating at least
      180
      days during any period of 12 consecutive months; or (ii) with respect to the
      holder of an Option that is an incentive stock option, and when used in
      connection with such incentive stock option following such holder’s termination
      of employment, a “disability” within the meaning of Section 22(e)(3) of the
      Code. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (k)  “Eligible
      Director” shall mean a director of the Corporation who is not also an employee
      of the Corporation or a Subsidiary.

     

    (l)  “Eligible
      Persons” shall mean those persons described in Section 4 who are potential
      recipients of Incentive Awards.

     

    (m)  “Exchange
      Act” shall mean the Securities Exchange Act of 1934, as amended.

     

    (n)  “Fair
      Market Value” on a specified date shall mean the average of the highest and
      lowest selling price at which a Share is traded on the stock exchange, if any,
      on which Shares are primarily traded or, if the Shares are not then traded
      on a
      stock exchange, the average of the closing representative bid and asked price
      of
      a Share as reported by the principal securities exchange or securities trading
      market on which the Shares are listed or approved for trading, but if no Shares
      were traded on such date, then on the last previous date on which a Share was
      so
      traded, or, if none of the above are applicable, the value of a Share as
      established by the Board of Directors or the Committee for such date using
      any
      reasonable method of valuation.

     

    (o)  “Incentive
      Award” shall mean an Option, Right, Restricted Stock Award, Deferred Stock Award
      or Performance Award granted pursuant to this Plan.

     

    (p)  “Options”
      shall mean the stock options granted pursuant to this Plan.

     

    (q)  “Performance
      Award” shall mean an Incentive Award granted in accordance with Section 16
      hereof.

     

    (r)  “Plan”
      shall mean this 2005 Equity Incentive Plan of The Children’s Place Retail
      Stores, Inc., as adopted by the Board of Directors on April 18, 2005, as amended
      and restated on June 23, 2005, as such Plan from time to time may be further
      amended.

     

    (s)  “President”
      shall mean the person who at the time shall be the President of the
      Corporation.

     

    (t)  “Restricted
      Shares” shall mean the Shares issued as a result of a Restricted Stock
      Award.

     

    (u)  “Restricted
      Stock Award” shall mean a grant of Restricted Shares or of the right to purchase
      Restricted Shares pursuant to Section 13 hereof. 

     

    (v)  “Rights”
      shall mean Alternative Rights and/or Stock Appreciation Rights granted pursuant
      to the Plan. 

     

    (w)  “Share”
      shall mean a share of common stock, par value $.10 per share, of the
      Corporation.

     

    (x)  “Spread”
      shall mean the excess of the Fair Market Value of a Share on the date of
      exercise of a Right over the exercise price per Share of such Right.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (y)  “Stock
      Appreciation Rights” shall have the meaning as set forth in Section 9
      hereof.

     

    (z)  “Subsidiary”
      shall mean any corporation, limited liability corporation, partnership or
      limited partnership, 50% or more of whose stock having general voting power,
      membership interests, or capital or profits interests, as the case may be,
      is
      owned by the Corporation, or by another Subsidiary as herein defined, of the
      Corporation; provided, however, that for purposes of an Option that is an
      incentive stock option to be granted to an employee of a Subsidiary, the term
      “Subsidiary” shall mean a subsidiary corporation as defined in Section 424(f) of
      the Code. 

     

    3.  Administration.
      The
      Plan shall be administered by the Compensation Committee of the Board of
      Directors (the “Committee”), which shall consist of two or more directors of the
      Corporation, each of whom shall be a “Non-Employee Director” within the meaning
      of Rule 16b-3 under the Exchange Act and an “outside director” within the
      meaning of Section 162(m) of the Code. Any member of the Committee may resign
      by
      giving written notice thereof to the Board of Directors, and any member of
      the
      Committee may be removed at any time, with or without Cause, by the Board of
      Directors. If, for any reason, a member of the Committee shall cease to serve,
      the vacancy shall be filled by the Board of Directors. 

     

    The
      Committee shall have full power and authority to administer and interpret the
      Plan. Determinations of the Committee as to any question which may arise with
      respect to the interpretation of the provisions of the Plan and Incentive Awards
      shall be final. The Committee may authorize and establish such rules,
      regulations and revisions thereof not inconsistent with the provisions of the
      Plan, as it may deem advisable to make the Plan and Incentive Awards effective
      or provide for their administration, and may take such other action with regard
      to the Plan and Incentive Awards as it shall deem desirable to effectuate their
      purpose.

     

    4.  Participants.
      The
      class of persons who are potential recipients of Incentive Awards granted under
      this Plan shall consist of key employees and directors of the Corporation or
      a
      Subsidiary, as determined by the Committee in its sole discretion. The parties
      to whom Incentive Awards are granted under this Plan, and the number of Shares
      subject to each such Incentive Award, shall be determined by the Committee
      in
      its sole discretion, subject, however, to the terms and conditions of this
      Plan.
      Each Eligible Director shall only be eligible to receive Options in accordance
      with Section 7 hereof.

     

    5.  Shares.
      Subject
      to the provisions of Section 20 hereof, the Committee may grant Incentive Awards
      with respect to an aggregate of up to 2 million Shares, all of which Shares
      may
      be either Shares held in treasury or authorized but unissued Shares, provided,
      however, that the foregoing limitation shall not apply to Alternative Rights
      but
      shall apply to any Option with respect to which the Alternative Rights are
      granted. The maximum number of Shares which may be the subject of Options and
      Rights granted during any calendar year to any individual shall not exceed
      500,000 Shares. If the Shares that would be issued or transferred pursuant
      to
      any Incentive Awards are not issued or transferred and cease to be issuable
      or
      transferable for any reason, or if Restricted Shares which are subject to a
      Restricted Stock Award are forfeited, the number of Shares subject to such
      Incentive Award will no longer be charged against the limitation provided for
      herein and may again be made subject to Incentive Awards; provided, however,
      that Shares as to which an Option has been surrendered in connection with the
      exercise of an Alternative Right shall not again be available for the grant
      of
      any further Incentive Awards. If any portion of a Stock Appreciation Right
      expires or is forfeited for any reason prior to being exercised, the number
      of
      Shares subject to the unexercised portion of such Stock Appreciation Right
      will
      no longer be charged against the limitation provided for herein and may again
      be
      made subject to Incentive Awards. Notwithstanding the preceding, with respect
      to
      any Option and/or Rights granted to any individual who is a “covered employee”
      within the meaning of Section 162(m) of the Code that is canceled, the number
      of
      shares subject to such Option and/or Rights shall continue to count against
      the
      maximum number of shares which may be the subject of Options and Rights granted
      to such individual during the applicable calendar year. For purposes of the
      preceding sentence, if, after grant, the exercise price of an Option and/or
      the
      base amount of any Rights is reduced, such reduction shall be treated as a
      cancellation of such Option and/or Rights and the grant of a new Option and/or
      Rights (if any), and both the cancellation of the Option and/or Rights and
      the
      new Option and/or Rights shall reduce the maximum number of Shares for which
      Options and Rights may be granted to the holder of such Option and/or Rights
      during the applicable calendar year. In the event Shares are withheld by the
      Corporation to satisfy income or other tax withholding obligations with respect
      to any Incentive Award, the Shares withheld for this purpose shall reduce the
      maximum number of Shares for which Options and/or Rights may be granted to
      the
      holder of such Option and/or Rights and shall be charged against the limitations
      in this Section 5.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.  Grant
      of Options.
      The
      number of Options to be granted to any Eligible Person shall be determined
      by
      the Committee in its sole discretion. 

     

    At
      the
      time an Option is granted, the Committee may, in its sole discretion, designate
      whether such Option (a) is to be considered as an incentive stock option within
      the meaning of Section 422 of the Code, or (b) is not to be treated as an
      incentive stock option for purposes of this Plan and the Code. Options with
      respect to which no designation is made by the Committee shall be deemed to
      be
      incentive stock options to the extent that the $100,000 limitation described
      in
      the succeeding paragraph is satisfied. No Option which is intended to qualify
      as
      an incentive stock option shall be granted under this Plan to any person who,
      at
      the time of such grant, is not an employee of the Corporation or a
      Subsidiary.

     

    Notwithstanding
      any other provision of this Plan to the contrary, to the extent that the
      aggregate Fair Market Value (determined as of the date an Option is granted)
      of
      the Shares with respect to which Options which are designated as incentive
      stock
      options, and any other incentive stock options, granted to an employee (under
      this Plan, or any other incentive stock option plan maintained by the
      Corporation or any Subsidiary that meets the requirements of Section 422 of
      the
      Code) first become exercisable in any calendar year exceeds $100,000, such
      Options shall be treated as Options which are not incentive stock options.
      This
      paragraph shall be applied by taking Options into account in the order in which
      they are granted.

     

    Nothing
      herein contained shall be construed to prohibit the issuance of Options at
      different times to the same person.

     

    An
      Option
      agreement signed by the Chairman of the Board or the President or a Vice
      President of the Corporation, attested by the Treasurer or an Assistant
      Treasurer, or Secretary or an Assistant Secretary of the Corporation and bearing
      the seal of the Corporation affixed thereto, shall be issued to each person
      to
      whom an Option is granted. The Option agreement shall be in the form as may
      be
      determined by the Committee from time to time, and need not be identical with
      respect to each grantee. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.  Grants
      of Options to Eligible Directors.
      Notwithstanding any other provision of this Plan to the contrary, Options which
      are not incentive stock options shall be granted to each Eligible Director
      in
      accordance with this Section 7. Each Eligible Director who is initially elected
      to the Board of Directors by the Corporation shall be granted an Option on
      the
      date of his initial election to the Board of Directors to purchase 15,000 Shares
      at a purchase price per Share equal to the Fair Market Value of a Share on
      the
      date of grant of such Option. On the last day of each fiscal year of the
      Corporation, each member of the Board of Directors who is an Eligible Director
      on such date shall be granted an additional Option to purchase 6,000 Shares
      at a
      purchase price per Share equal to the Fair Market Value of a Share on the date
      of grant of such Option; provided, however, that with respect to any such
      Eligible Director who is initially elected to the Board of Directors during
      such
      a fiscal year, the Option granted to such Eligible Director on the last day
      of
      the fiscal year during which he was initially elected to the Board of Directors
      shall be for a number of Shares equal to 6,000 multiplied by a fraction, the
      numerator of which shall be the number of days during the fiscal year during
      which such Eligible Director was a member of the Board of Directors and the
      denominator of which shall be 365, which number of Shares shall be rounded
      up to
      the next whole number of Shares.

     

    8.  Option
      Purchase Price.
      The
      price per Share of the Shares to be purchased pursuant to the exercise of any
      Option shall be fixed by the Committee at the time of grant; provided, however,
      that in no event shall such purchase price be less than 100% of the Fair Market
      Value of a Share on the date of grant of the Option. 

     

    9.  Grant
      of Rights.
      The
      Committee, in its sole discretion, shall have the authority to grant Rights
      to
      any Eligible Person, which may be granted separately, or in connection with
      an
      Option at the time of the grant of an Option. Any Rights granted in connection
      with an Option (“Alternative Rights”) shall be granted with respect to the same
      number of Shares as are covered by the Option, subject to adjustment pursuant
      to
      the provisions of Section 20 hereof, and may be exercised as an alternative
      to the exercise of the related Option.

     

    Alternative
      Rights granted in connection with an Option shall entitle the holder thereof
      to
      receive Shares from the Corporation, determined as hereinafter provided, only
      if
      and to the extent that the related Option is exercisable, by surrendering the
      Option with respect to the number of Shares as to which such Rights are then
      exercised. Such Option, to the extent surrendered, shall be deemed exercised
      for
      purposes of the limitations under Section 5. Upon any exercise of Alternative
      Rights, the holder thereof shall be entitled to receive a number of Shares
      (rounded down to the next whole number of Shares) equal to (i) the product
      obtained by multiplying (A) the Spread by (B) the number of Shares in respect
      of
      which the Rights shall have then been so exercised, divided by (ii) the Fair
      Market Value of a Share on the date of exercise. 

     

    Upon
      the
      exercise of Rights granted without relationship to an Option (“Stock
      Appreciation Rights”), the holder thereof shall be entitled to receive a number
      of Shares (rounded down to the next whole number of Shares) equal to (i) the
      product obtained by multiplying (A) the Spread by (B) the number of Shares
      in
      respect of which the Stock Appreciation Rights shall have then been so
      exercised, divided by (ii) the Fair Market Value of a Share on the date of
      exercise. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
      anything contained herein, the Committee, in its sole discretion, may limit
      the
      amount payable upon the exercise of Rights. Any such limitation shall be
      determined as of the date of grant and noted in the Rights agreement evidencing
      the grant of the Rights.

     

    Rights
      shall be evidenced by an agreement executed on behalf of the Corporation and
      by
      the Eligible Person to whom the Rights are granted. Each Rights agreement shall
      set forth the number of Shares subject to the Rights being granted, the exercise
      price per Share thereof, and such other terms and conditions as determined
      by
      the Committee at the time of grant; provided, however, that (i) the exercise
      price per Share of Alternative Rights shall be equal to the purchase price
      per
      Share of the Option related thereto, and (ii) in no event shall the exercise
      price per Share of any Rights be less than 100% of the Fair Market Value of
      a
      Share on the date of grant of such Rights. The form of agreement shall be as
      determined from time to time by the Committee, and need not be identical with
      respect to each grantee. 

     

    10.  Duration
      of Options and Rights.
      The
      duration of any Option or Right granted under this Plan shall be fixed by the
      Committee at the time of grant; provided, however, that no Option or Right
      shall
      remain in effect for a period of more than ten (10) years from the date upon
      which it is granted. 

     

    The
      duration of any Alternative Rights granted in connection with any Option shall
      be coterminous with the duration of the related Option.

     

    11.  Ten
      Percent Shareholders.
      Notwithstanding any other provision of this Plan to the contrary, no Option
      which is intended to qualify as an incentive stock option may be granted under
      this Plan to any employee who, at the time the Option is granted, owns shares
      possessing more than ten percent (10%) of the total combined voting power of
      all
      classes of stock of the Corporation, unless the exercise price under such Option
      is at least 110% of the Fair Market Value of a Share on the date such Option
      is
      granted and the duration of such Option is no more than five (5)
      years.

     

    12.  Exercise
      of Options and Rights.
      Except
      as otherwise provided herein or in the holder’s employment agreement (if any)
      with the Corporation or a Subsidiary, Options and Rights shall become vested
      and
      exercisable by the holder as determined by the Committee in its sole discretion
      at the time of grant and as set forth in the applicable Option and/or Rights
      agreement (such vesting may be based on continued employment or service, or
      upon
      the achievement of pre-established corporate or individual performance
      objectives, or otherwise, including any combination thereof but in no event
      shall the vesting period be less than three (3) years commencing on the date
      of
      the grant if based on continued employment or service or less than one (1)
      year
      commencing on the date of the grant if based on achievement of pre-established
      corporate or individual performance objectives, or otherwise, including any
      combination thereof ). 

     

    Notwithstanding
      the foregoing, all or any part of any remaining unexercised Options and/or
      Rights granted to any Eligible Person may be exercised, subject to Section
      19
      hereof, in the following circumstances (but in no event, other than the holder’s
      death, during the six (6) month period commencing on the date of grant, and
      in
      no event prior to approval of the Plan by shareholders of the Corporation as
      provided in Section 26 hereof or after the term of the Option or Rights has
      expired): (a) upon the holder’s retirement from the Corporation and all
      Subsidiaries on or after his 65th birthday; (b) upon the Disability or death
      of
      the holder; (c) upon a Change of Control while the holder is in the employ
      or
      service of the Corporation; or (d) upon the occurrence of such special
      circumstance or event as in the opinion of the Committee merits special
      consideration. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    An
      Option
      shall be exercised by the delivery of a written notice duly signed by the holder
      thereof to such effect, together with the Option agreement (and, in the case
      of
      the exercise of an Option with respect to which Alternative Rights were granted
      in relation thereto, the related Rights agreement) and the full purchase price
      of the Shares purchased pursuant to the exercise of the Option, to the Chairman
      of the Board of Directors or an officer of the Corporation appointed by the
      Chairman of the Board of Directors for the purpose of receiving the same.
      Payment of the full purchase price shall be made as follows: in cash or by
      check
      payable to the order of the Corporation; by delivery to the Corporation of
      Shares which shall be valued at their Fair Market Value on the date of exercise
      of the Option (provided, that a holder may not use any Shares to pay the
      purchase price unless the holder has beneficially owned such Shares for at
      least
      six (6) months); or by such other methods as the Committee may permit from
      time
      to time. 

     

    Within
      a
      reasonable time after the exercise of an Option, the Corporation shall cause
      to
      be delivered to the person entitled thereto, a certificate for the Shares
      purchased pursuant to the exercise of the Option. If the Option shall have
      been
      exercised with respect to less than all of the Shares subject to the Option,
      the
      Corporation shall also cause to be delivered to the person entitled thereto
      a
      new Option agreement in replacement of the agreement surrendered at the time
      of
      the exercise of the Option, indicating the number of Shares with respect to
      which the Option remains available for exercise, or the original Option
      agreement shall be endorsed to give effect to the partial exercise thereof.
      The
      Committee may permit deemed or constructive transfers of Shares in lieu of
      actual transfer and physical delivery of certificates.

     

    Upon
      the
      exercise of an Option with respect to which Alternative Rights were also granted
      in relation thereto, the number of Shares subject to exercise under the related
      Alternative Rights shall also be reduced by the number of Shares for which
      the
      related Option was exercised. If the Option shall have been exercised with
      respect to less than all of the Shares subject thereto, the Corporation shall
      also cause to be delivered to the person entitled thereto a new Option agreement
      and a new Rights agreement in replacement of the Option and Rights agreements
      surrendered at the time of the partial exercise of the Option, with respect
      to
      the difference between the number of Shares under the Option agreement (and
      the
      Rights agreement) immediately before the exercise of the Option and the number
      of Shares with respect to which the Option was so exercised, or the original
      Option agreement and the original Rights agreement shall be endorsed to give
      effect to the partial exercise (and surrender) thereof.

     

    Alternative
      Rights or Stock Appreciation Rights shall be exercised by the delivery of a
      duly
      signed notice in writing to such effect, together with the Rights agreement.
      Holders of Alternative Rights shall also surrender the related Option agreement.
      Within a reasonable time thereafter, the Corporation shall cause to be delivered
      to the person entitled thereto, a certificate for the number of Shares
      determined in accordance with Section 9 hereof. Upon the exercise of
      Alternative Rights, the number of Shares subject to exercise under the related
      Option or portion thereof shall be reduced by the number of Shares represented
      by the Option or portion thereof surrendered. If the Rights shall have been
      exercised with respect to less than all of the Shares subject thereto, the
      Corporation shall also cause to be delivered to the person entitled thereto
      a
      Rights agreement (and an Option agreement, in the case of Alternative Rights)
      with respect to the difference between the number of Shares under the Rights
      agreement (and related Option agreement, if any) surrendered at the time of
      the
      exercise of the Rights and the number of Shares with respect to which the Rights
      were so exercised, or the original Rights agreement (and related Option
      agreement, if any) shall be endorsed to give effect to the partial exercise
      (and
      surrender) thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding
      any other provision of the Plan or of any Option or Rights agreement, no Option
      or Rights granted pursuant to the Plan may be exercised at any time when the
      Option or Rights or the granting or exercise thereof violates any law or
      governmental order or regulation.

     

    13.  Terms
      and Conditions of Restricted Stock Awards.
      The
      Committee shall have the authority to grant to any Eligible Person a Restricted
      Stock Award, subject to the following terms and conditions: 

     

    (a)  All
      Restricted Shares granted to or purchased by an Eligible Person pursuant to
      the
      Plan shall be subject to the following conditions:

     

    (1)  except
      as
      otherwise provided in the holder’s employment agreement (if any) with the
      Corporation or a Subsidiary, the Restricted Shares shall be subject to such
      transfer restrictions and risk of forfeiture as the Committee shall determine
      at
      the time the Restricted Stock Award is granted, until such specific conditions
      are met (which conditions may be based on continued employment or service,
      or
      achievement of pre-established corporate or individual performance objectives,
      or otherwise, including any combination thereof), and such restrictions shall
      lapse, and the Restricted Shares subject to a Restricted Stock Award shall
      vest,
      as determined by the Committee in its sole discretion at the time of grant
      and
      as set forth in the applicable Restricted Stock Award agreement but in no event
      shall the vesting period be less than three (3) years commencing on the date
      of
      the grant if based on continued employment or service or less than one (1)
      year
      commencing on the date of the grant if based on achievement of pre-established
      corporate or individual performance objectives, or otherwise, including any
      combination thereof;

     

    (2)  the
      Restricted Shares may not be sold, transferred, or otherwise alienated or
      hypothecated until the restrictions are satisfied, removed or
      expire;

     

    (3)  each
      certificate representing Restricted Shares issued pursuant to a Restricted
      Stock
      Award under this Plan shall bear a legend making appropriate reference to the
      restrictions imposed;

     

    (4)  the
      Committee may impose such other conditions as it may deem advisable on any
      Restricted Shares granted to or purchased by an Eligible Person pursuant to
      a
      Restricted Stock Award under this Plan, including, without limitation,
      restrictions under the requirements of any stock exchange upon which such Shares
      or shares of the same class are then listed, and under any securities law
      applicable to such Shares; and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (5)  Notwithstanding
      the foregoing, all restrictions to which a Restricted Stock Award is subject
      shall lapse, in the following circumstances: (a) upon the holder’s retirement
      from the Corporation and all Subsidiaries on or after his 65th birthday; (b)
      upon the Disability or death of the holder; (c) upon a Change of Control while
      the holder is in the employ or service of the Corporation; or (d) upon the
      occurrence of such special circumstance or event as in the opinion of the
      Committee merits special consideration.

     

    (b)  Prior
      to
      the satisfaction, expiration or lapse of all of the restrictions and conditions
      imposed upon Restricted Shares, a stock certificate or certificates representing
      such Restricted Shares shall be registered in the holder’s name but shall be
      retained by the Corporation for the holder’s account. The holder shall have the
      right to vote such Restricted Shares and shall have all other rights and
      privileges of a beneficial and record owner with respect thereto, including,
      without limitation, the right to receive dividends, distributions and
      adjustments with respect thereto; provided, however, that such dividends,
      distributions and adjustments shall be retained by the Corporation for the
      holder’s account and for delivery to the holder, together with the stock
      certificate or certificates representing such Restricted Shares, as and when
      said restrictions and conditions shall have been satisfied, expired or lapsed.
      

     

    (c)  A
      Restricted Stock Award shall be evidenced by an agreement executed on behalf
      of
      the Corporation and by the Eligible Person to whom the Restricted Stock Award
      is
      granted. The form of Restricted Stock Award agreement shall be determined from
      time to time by the Committee, and need not be identical with respect to each
      grantee.

     

    14.  Restricted
      Stock Purchase Price.
      Except
      as otherwise provided in the holder’s employment agreement (if any) with the
      Corporation or a Subsidiary, the purchase price per Share for Restricted Shares
      to be purchased pursuant to Restricted Stock Awards shall be fixed by the
      Committee at the time of the grant of the Restricted Stock Award and shall
      be
      set forth in the applicable Restricted Stock Award agreement; provided, however,
      that such purchase price shall not be less than the par value of such Shares.
      Payment of such purchase price shall be made in cash or by check payable to
      the
      order of the Corporation, or by such other method as the Committee may
      permit.

     

    15.  Deferred
      Stock Awards.
      The
      Committee shall have the authority to grant to any Eligible Person a Deferred
      Stock Award, subject to the following terms and conditions:

     

    (a)  Delivery
      of, and the issuance of certificates representing, Shares issuable pursuant
      to a
      Deferred Stock Award shall occur upon expiration of the deferral period
      specified by the Committee;

     

    (b)  Deferred
      Stock Awards shall be subject to such restrictions as the Committee may impose,
      in its sole discretion at the time of grant and as set forth in the applicable
      Deferred Stock Award agreement (such restrictions may lapse based on continued
      employment or service, upon the achievement of pre-established corporate or
      individual performance objectives, at the expiration of a specified deferral
      period or at earlier specified times, separately or in combination, in
      installments, or otherwise, including any combination thereof but in no event
      shall the restriction period be less than three (3) years if based on continued
      employment or service or less than one (1) year if based upon the achievement
      of
      pre-established corporate or individual performance objectives, at the
      expiration of a specified deferral period or at earlier times, separately or
      in
      combination, in installments, or otherwise, including any combination thereof);
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)  Notwithstanding
      the foregoing, all restrictions to which a Deferred Stock Award is subject
      shall
      lapse, in the following circumstances: (a) upon the holder’s retirement from the
      Corporation and all Subsidiaries on or after his 65th birthday; (b) upon the
      Disability or death of the holder; (c) upon a Change of Control while the holder
      is in the employ or service of the Corporation; or (d) upon the occurrence
      of
      such special circumstance or event as in the opinion of the Committee merits
      special consideration; and 

     

    (d)  A
      Deferred Stock Award shall be evidenced by an agreement executed on behalf
      of
      the Corporation and by the Eligible Person to whom the Deferred Stock Award
      is
      granted. The form of Deferred Stock Award agreement shall be determined from
      time to time by the Committee, and need not be identical with respect to each
      grantee.

     

    16.  Performance
      Awards.
      The
      Committee shall have the authority to grant to any Eligible Person a Performance
      Award, subject to such terms and conditions as shall be determined by the
      Committee in its sole discretion at the time of grant and as set forth in the
      applicable Performance Award agreement. The value of a Performance Award may
      be
      linked to the market value, book value, net profits or other measure of the
      value of a Share, or other specific performance criteria determined appropriate
      by the Committee, in each case on a specified date or dates or over any period
      or periods determined by the Committee, or may be based upon the appreciation
      in
      the market value, book value, net profits or other measure of the value of
      a
      specified number of Shares over a fixed period or periods determined by the
      Committee; provided, however, that the dates or periods described herein shall
      not be prior to or less than one (1) year following the date of the grant.
      In
      making such determinations, the Committee shall consider (among such other
      factors as it deems relevant in light of the specific type of award) the
      contributions, responsibilities and other compensation of the particular
      Eligible Person. A Performance Award shall be evidenced by an agreement executed
      on behalf of the Corporation and by the Eligible Person to whom the Performance
      Award is granted. The form of Performance Award agreement shall be determined
      from time to time by the Committee, and need not be identical with respect
      to
      each grantee.

     

    17.  Consideration
      for Incentive Awards.
      The
      Corporation shall obtain such consideration for the grant of an Incentive Award
      as the Committee in its discretion may determine.

     

    18.  Restrictions
      on Transferability of Incentive Awards.
      Incentive Awards and all other rights thereunder shall be non-transferable
      and
      non-assignable by the holder thereof except to the extent that the estate of
      a
      deceased holder of an Incentive Award may be permitted to exercise them. Options
      and Rights may be exercised or surrendered during the holder’s lifetime only by
      the holder thereof.

     

    19.  Termination
      of Employment or Service.
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)  Except
      as
      otherwise provided
      herein, in the holder’s employment agreement (if any) with the Corporation or a
      Subsidiary, or in the applicable Option and/or Rights agreement,
      all or
      any part of any Option and/or Rights, to the extent unexercised, shall terminate
      immediately upon the cessation or termination for any reason of the holder’s
      employment by, or service as a director of, the Corporation or any Subsidiary,
      provided that (except as otherwise provided herein, in the holder’s employment
      agreement (if any) with the Corporation or a Subsidiary, or in the applicable
      Option and/or Rights agreement) the holder shall have ninety (90) days following
      the cessation of the holder’s employment or service with the Corporation or its
      Subsidiaries, and no longer, within which to exercise any unexercised Option
      and/or Rights that such holder could have exercised on the day on which such
      employment or service terminated; and provided, further, that such exercise
      must
      be accomplished prior to the expiration of the term of such Option and/or
      Rights. Notwithstanding the foregoing, if the cessation of employment or service
      is due to Disability or to death, the holder or the representative of the Estate
      or the heirs of a deceased holder shall have the privilege of exercising the
      Options and/or Rights which are vested but unexercised at the time of such
      Disability or death for a period of time that is no less than one (1) year
      from
      the date of the holder’s Disability or death. Notwithstanding the foregoing, and
      except as otherwise provided in the holder’s employment agreement (if any) with
      the Corporation or a Subsidiary, if the employment or service of any holder
      of
      an Option and/or Rights with the Corporation or a Subsidiary shall be terminated
      for Cause, all unexercised Options and/or Rights of such holder shall terminate
      immediately upon such termination of the holder’s employment or service with the
      Corporation and all Subsidiaries, and a holder of Options and/or Rights whose
      employment or service with the Corporation and all Subsidiaries is so
      terminated, shall have no right after such termination to exercise any
      unexercised Option and/or Rights he might have exercised prior to the
      termination of his employment or service with the Corporation and all
      Subsidiaries.

     

    (b)  Except
      as
      otherwise provided in the holder’s employment agreement (if any) with the
      Corporation or a Subsidiary, the Committee shall determine in its sole
      discretion at the time of grant of a Restricted Stock Award or a Deferred Stock
      Award, the affect, if any, that a termination of the holder’s employment or
      service with the Corporation or any Subsidiary shall have on such Incentive
      Award, and such terms shall be set forth in the applicable Incentive Award
      agreement. Notwithstanding the foregoing, and except as otherwise provided
      in
      the holder’s employment agreement (if any) with the Corporation or a Subsidiary,
      if the employment or service of any holder of a Restricted Stock Award or a
      Deferred Stock Award with the Corporation or a Subsidiary shall be terminated
      for Cause, then (i) all Restricted Shares subject to restrictions at the time
      his employment terminates (and any dividends, distributions and adjustments
      retained by the Corporation with respect thereto), and (ii) any Shares
      subject to a Deferred Stock Award with respect to which the deferral period
      has
      not expired, shall be forfeited and any consideration received therefor from
      the
      holder shall be returned to the holder. 

     

    (c)  Except
      as
      otherwise provided in the holder’s employment agreement (if any) with the
      Corporation or a Subsidiary, the Committee shall determine in its sole
      discretion at the time of grant of a Performance Award, the affect, if any,
      that
      a termination of the holder’s employment or service with the Corporation or any
      Subsidiary shall have on such Performance Award, and such terms shall be set
      forth in the applicable Performance Award agreement. Notwithstanding the
      foregoing, and except as otherwise provided in the holder’s employment agreement
      (if any) with the Corporation or a Subsidiary, if the employment or service
      of
      any holder of a Performance Award with the Corporation or a Subsidiary shall
      be
      terminated for Cause, then such holder’s Performance Award shall terminate
      immediately upon such termination of the holder’s employment or service with the
      Corporation and all Subsidiaries.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    20.  Adjustment
      Provision.
      If,
      prior to the complete exercise of any Option and/or Rights, or prior to the
      satisfaction, expiration or lapse of all of the restrictions and conditions
      imposed pursuant to a Restricted Stock Award or Deferred Stock Award, there
      shall be declared and paid a stock dividend upon the Shares or if the Shares
      shall be split up, converted, exchanged, reclassified, or in any way substituted
      for:

     

    (a)  in
      the
      case of an Option, then the Option, to the extent that it has not been
      exercised, shall entitle the holder thereof upon the future exercise of the
      Option to such number and kind of securities or cash or other property subject
      to the terms of the Option to which he would have been entitled had he actually
      owned the Shares subject to the unexercised portion of the Option at the time
      of
      the occurrence of such stock dividend, split-up, conversion, exchange,
      reclassification or substitution, and the aggregate purchase price upon the
      future exercise of the Option shall be the same as if the originally optioned
      Shares were being purchased thereunder; provided, however, that with respect
      to
      an Option that is an incentive stock option, such adjustment shall be made
      in
      accordance with Section 424 of the Code; 

     

    (b)  in
      the
      case of an Alternative Right, then the number of Shares subject to the
      Alternative Right, to the extent that it has not been exercised, shall be
      adjusted to equal the number of Shares to which the holder would have been
      entitled had he actually owned the Shares subject to the unexercised portion
      of
      the Alternative Right at the time of the occurrence of such stock dividend,
      split-up, conversion, exchange, reclassification or substitution, and the
      aggregate exercise price shall proportionately be adjusted so that the aggregate
      exercise price of such Alternative Right immediately prior to such an event
      shall be equal to the aggregate exercise price of the adjusted Alternative
      Right
      immediately following the occurrence of such event; 

     

    (c)  in
      the
      case of a Stock Appreciation Right, then the number of Shares subject to the
      Stock Appreciation Right, to the extent that it has not been exercised, shall
      be
      adjusted to equal the number of Shares to which the holder would have been
      entitled had he actually owned the Shares subject to the unexercised portion
      of
      the Stock Appreciation Right at the time of the occurrence of such stock
      dividend, split-up, conversion, exchange, reclassification or substitution,
      and
      the aggregate exercise price shall proportionately be adjusted so that the
      aggregate exercise price of such Stock Appreciation Right immediately prior
      to
      such an event shall be equal to the aggregate exercise price of the adjusted
      Stock Appreciation Right immediately following the occurrence of such event;
      

     

    (d)  in
      the
      case of a Restricted Share issued pursuant to a Restricted Stock Award, the
      holder of such Restricted Stock Award shall receive, subject to the same
      restrictions and other conditions of such Restricted Stock Award as determined
      pursuant to the provisions of Section 13, the same securities or other property
      as are received by the holders of the Corporation’s Shares pursuant to such
      stock dividend, split-up, conversion, exchange, reclassification or
      substitution; and

     

    (e)  in
      the
      case of a Deferred Stock Award, the holder shall receive, at such time as would
      otherwise apply under such Deferred Stock Award, such number and kind of
      securities or cash or other property to which he would have been entitled had
      he
      actually owned the Shares subject to the Deferred Stock Award at the time of
      the
      occurrence of such stock dividend, split-up, conversion, exchange,
      reclassification or substitution.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    With
      respect to any Incentive Awards other than Rights, any fractional shares or
      securities issuable as a result of such adjustment shall be payable in cash
      based upon the Fair Market Value of such shares or securities at the time such
      shares or securities would have otherwise been issued. With respect to any
      Rights, any fractional shares or securities issuable as a result of such
      adjustment shall be rounded down to the nearest whole number of Shares. If
      any
      such event should occur, the number of Shares with respect to which Incentive
      Awards remain to be issued, or with respect to which Incentive Awards may be
      reissued, shall be adjusted in a similar manner.

     

    In
      addition to the adjustments provided for in the preceding paragraph, upon the
      occurrence of any of the events referred to in said paragraph prior to the
      complete payments pursuant to a Performance Award, the Committee, in its sole
      discretion, shall determine the amount of cash and/or the number of Shares
      which
      shall be paid to the holder of a Performance Award at such time as payment
      would
      otherwise be made, so that there shall be no increase or dilution in the cash
      and/or value of the Shares or other property to which the holder shall be
      entitled by reason of such events. 

     

    Notwithstanding
      any other provision of the Plan, in the event of a recapitalization, merger,
      consolidation, rights offering, separation, reorganization or liquidation,
      or
      any other change in the corporate structure or outstanding shares, the
      Committee, in its sole discretion, may make such adjustments to the number
      of
      Shares and the class of shares available hereunder or to any outstanding
      Incentive Awards as shall be necessary to prevent dilution or enlargement of
      rights, and/or make provision for the payment of cash (or other property if
      received as consideration) in cancellation of any outstanding Incentive
      Award.

     

    21.  Issuance
      of Shares and Compliance with Securities Act.
      The
      Corporation may postpone the issuance and delivery of Shares pursuant to the
      grant or exercise of any Incentive Award until (a) the admission of
      such
      Shares to listing on the principal securities exchange or securities trading
      market on which Shares of the Corporation of the same class are then listed
      or
      approved for trading, and (b) the completion of such registration or
      other
      qualification of such Shares under any State or Federal law, rule or regulation
      as the Corporation shall determine to be necessary or advisable. Any holder
      of
      an Incentive Award shall make such representations and furnish such information
      as may, in the opinion of counsel for the Corporation, be appropriate to permit
      the Corporation, in the light of the then existence or non-existence with
      respect to such Shares of an effective Registration Statement under the
      Securities Act of 1933, as from time to time amended (the “Securities Act”), to
      issue the Shares in compliance with the provisions of the Securities Act or
      any
      comparable act. The Corporation shall have the right, in its sole discretion,
      to
      legend any Shares which may be issued pursuant to the grant or exercise of
      any
      Incentive Award, or may issue stop transfer orders in respect
      thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    22.  Code
      Section 162(m).
      Notwithstanding any other provision of the Plan, if the Committee determines
      at
      the time an Incentive Award is granted to an Eligible Person who is, or is
      likely to be, as of the end of the tax year in which the Corporation would
      claim
      a tax deduction in connection with such Incentive Award, a “covered employee”
      (as defined under Section 162(m) of the Code), then the Committee may provide
      that this Section 22 is applicable to such Incentive Award. If
      the
      Committee determines that an Incentive Award is subject to this Section 22,
      the
      lapsing of restrictions thereon and the distribution of cash, Shares or other
      property pursuant thereto, as applicable, shall be subject to the achievement
      of
      one or more objective performance goals established by the Committee, which
      shall be based on the attainment of specified levels of one or any combination
      of the following: revenue growth; booking of orders; earnings, or some
      derivative thereof (including earnings before interest and taxes, earnings
      before interest, taxes, depreciation and amortization, or earnings per share);
      operating income; pre- or after-tax income; cash flow; net earnings; return
      on
      equity; return on capital (including return on total capital or return on
      invested capital); return on assets or net assets; economic value added (or
      an
      equivalent metric); share price performance; total shareholder return;
      improvement in or attainment of expense levels; and improvement in or attainment
      of working capital levels of the Corporation or any Subsidiary, division,
      business unit or product line of the Corporation for or within which the
      Eligible Person is primarily employed. Such performance goals also may be based
      solely by reference to the Corporation’s performance or the performance of a
      Subsidiary, division, business unit or product line of the Corporation, or
      based
      upon the relative performance of other companies or upon comparisons of any
      of
      the indicators of performance relative to other companies. The Committee may
      also exclude the impact of an event or occurrence which the Committee determines
      should appropriately be excluded, including (i) restructurings, discontinued
      operations, extraordinary items, and other unusual or non-recurring charges,
      (ii) an event either not directly related to the operations of the Corporation
      or not within the reasonable control of the Corporation’s management, or (iii)
      the cumulative effects of tax or accounting changes in accounting standards
      required by generally accepted accounting principles. Such performance goals
      shall be set by the Committee within the time period prescribed by, and shall
      otherwise comply with the requirements of, Section 162(m) of the Code, and
      the
      regulations thereunder. 

     

    23.  Income
      Tax Withholding.
      If the
      Corporation or a Subsidiary shall be required to withhold any amounts by reason
      of any Federal, State, local or foreign tax rules or regulations in respect
      of
      any Incentive Award, the Corporation or the Subsidiary shall be entitled to
      take
      such action as it deems appropriate in order to ensure compliance with such
      withholding requirements. In order to facilitate payment by the holder of an
      Incentive Award of his withholding obligations with respect to the Incentive
      Award, the Corporation or Subsidiary may, at its election, (a) deduct from
      any
      cash payment otherwise due to the holder, the appropriate withholding amount,
      (b) require the holder to pay to the Corporation or Subsidiary in cash the
      appropriate withholding amount, (c) permit the holder to elect to have the
      Corporation withhold a portion of the Shares otherwise to be delivered with
      respect to such Incentive Award, the Fair Market Value of which is equal to
      the
      minimum statutory withholding amount, or (d) permit the holder to elect to
      deliver to the Corporation Shares already owned by the holder for at least
      six
      (6) months, the Fair Market Value of which is equal to the appropriate
      withholding amount; provided, however, that if Shares are to be withheld by
      the
      Corporation for purposes of satisfying such withholding obligations, the number
      of Shares withheld shall be calculated using the minimum statutory withholding
      rates. 

     

    24.  Amendment
      of the Plan.
      Except
      as hereinafter provided, the Board of Directors or the Committee may at any
      time
      withdraw or from time to time amend the Plan as it relates to, and the terms
      and
      conditions of, any Incentive Awards not theretofore granted, and the Board
      of
      Directors or the Committee may at any time withdraw or from time to time amend
      the Plan as it relates to, and the terms and conditions of, any outstanding
      Incentive Award, provided that any amendment of an outstanding Incentive Award
      that would adversely affect the rights of the holder thereof shall not be
      effected without the holder’s consent. Notwithstanding the foregoing, any
      material amendment of the Plan by the Board of Directors or the Committee,
      including an amendment which would increase the number of Shares issuable under
      the Plan or to any individual or change the class of Eligible Persons, shall
      be
      subject to the approval of the shareholders of the Corporation within one (1)
      year of such amendment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    25.  No
      Right of Employment or Service.
      Nothing
      contained herein or in an Incentive Award agreement shall be construed to confer
      on any employee or director any right to be continued in the employ of the
      Corporation or any Subsidiary or as a director of the Corporation, or derogate
      from any right of the Corporation and any Subsidiary to retire, request the
      resignation of, or discharge such employee or director (without or with pay),
      at
      any time, with or without Cause.

     

    26.  Effective
      Date of the Plan.
      This
      Plan is conditioned upon its approval by the shareholders of the Corporation
      on
      or before April 18, 2006; except that this Plan is adopted and approved by
      the
      Board of Directors effective April 18, 2005 to permit the grant of Incentive
      Awards prior to the approval of the Plan by the shareholders of the Corporation
      as aforesaid. In the event that this Plan is not approved by the shareholders
      of
      the Corporation as aforesaid, this Plan and any Incentive Awards granted
      hereunder shall be void and of no force or effect.

     

    27.  Final
      Grant Date.
      No
      Incentive Award shall be granted under the Plan after April 18,
      2015.

     

    IN
      WITNESS WHEREOF, the Corporation has caused these presents to be executed by
      its
      duly authorized officer as of June 23, 2005.

     

    

    
      	 	 	 
	 	THE
              CHILDREN’S PLACE RETAIL STORES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Steven
              Balasiano
	 	
              
Title:
              Senior Vice President, General Counsel 
	 	and
              Chief Administrative OfficerMED1ONLINE
                                5601 Gray Street
                             Arvada, Colorado 80002

June 24, 2005

DIOMED, INC.
1 Dundee Park, Suite 5
Andover, MA 01810

Ladies and Gentlemen:

      This letter sets forth our understanding and agreement regarding the terms
upon which Med1Online (referred to as "we" or "us" or variations thereof) will
distribute certain medical products manufactured by Diomed, Inc. (referred to as
"you" or variations thereof).

      1. Background. You are the manufacturer of the DIOMED Endo Venous Laser
Treatment (EVLT(R)) System (the "EVLT(R) System"). We are interested in
distributing the EVLT(R) System in the OB/GYN and Plastic Surgery markets in the
United States (the "Market"), and you desire to appoint us as your exclusive
distributor of the EVLT(R) System to the Market. We will not sell the EVLT(R)
System to customers located outside the United States or for use outside the
United States without your prior written approval.

      2. Grant of Distribution Rights. You appoint us as your exclusive
distributor of the EVLT(R) System to the Market, and grant us the exclusive
right to distribute and sell the EVLT(R) System in the Market on the terms and
conditions described in this Agreement. You will refer to us all inquiries you
receive for or relating to the EVLT(R) System within the Market. We will refer
to you all inquiries we receive for or relating to the EVLT(R) System outside
the Market. All updates, modifications, improvements and customizations made to
the EVLT(R) System during the term of this Agreement will be considered to be
part of the EVLT(R) System for purposes of this Agreement, and our rights under
this paragraph 2 will apply to the EVLT(R) System as so updated, modified,
improved or customized.

      3. Limitation on Activities. Except for accounts listed in Exhibit B,
which shall be referred to us if not closed within 90 days of the signing of
this agreement, during the term of this Agreement, you will not yourself
distribute or sell (except to us under this Agreement), or grant to any third
party any right to distribute or sell, the EVLT(R) System within the Market.
During the term of this Agreement, we will not distribute or sell any minimally
invasive treatment of varicose veins within the Market, except for used systems
acquired through direct purchases or trades from physicians.

      4. Marketing Activities.

            (a) We will use our existing sales force to develop new markets and
improve overall market penetration for the EVLT(R) System within the Market,
including securing commitments with doctors and doctor groups to purchase
EVLT(R) Systems. We will provide financing to qualified customers as required.

<PAGE>

            (b) We will spend a minimum of ****CONFIDENTIAL TREATMENT
REQUESTED**** per calendar quarter during the term of this Agreement on
marketing, advertising and promoting the EVLT(R) System and/or your other
products. During the initial quarterly period from July 1, 2005 to September 30,
2005, our expenditures are expected to be allocated as follows: ****CONFIDENTIAL
TREATMENT REQUESTED**** for Internet advertising; ****CONFIDENTIAL TREATMENT
REQUESTED**** for a direct mail campaign; ****CONFIDENTIAL TREATMENT
REQUESTED**** for a telesales campaign; and ****CONFIDENTIAL TREATMENT
REQUESTED**** for conducting seminars. You will reimburse us for the foregoing
expenditures during this initial quarterly period, up to a maximum of
****CONFIDENTIAL TREATMENT REQUESTED****, by providing us with a credit against
our purchases of EVLT(R) Systems under this Agreement. In subsequent quarters,
we may vary the allocation of our expenditures, based on our reasonable
judgment, and you will not be obligated to reimburse us for such expenditures.

            (c) We will accurately represent the capability, functionality and
specifications of the EVLT(R) System, and we will make no representations,
warranties or other statements to any party regarding the EVLT(R) System that
are inconsistent with the product literature distributed by you. We will comply
with all applicable laws and regulations in performing our duties hereunder, and
will cooperate with you in providing required information to any governmental
authority. We agree to defend and indemnify you and hold you harmless from any
liability, damages, costs, or expenses that you might incur as a result of our
breach of this Section 4(c).

      5. Marketing Support.

            (a) You will provide to us, at your expense, reasonable quantities
of existing product pictures, descriptions and sales literature (in both hard
copy and electronic forms), and any other promotional and marketing support
available to your own sales representatives, for our use in marketing,
advertising and promoting the EVLT(R) System. You will also develop and permit
us to use, solely for marketing and training purposes hereunder, an online
demonstration program, with three-dimensional modeling and interactive
components, in which you will retain all intellectual property rights.

            (b) During the term of this Agreement, we will have a limited,
non-exclusive, non-sublicenseable license to use the Diomed name and logo, the
EVLT(R) Systems name, and any other trademarks or service marks you use in
connection with the EVLT(R) System (collectively, the "Marks") solely in
connection with our activities under this Agreement. Title to and ownership of
the Marks shall remain with you. We will use the Marks exactly in the form
provided and in conformance with your trademark usage policies, and you will
have the right to review and approve all uses of the Marks.

            (c) You will provide sales tools and demonstration EVLT(R) Systems
for our use at mutually agreed upon tradeshows at which we promote EVLT(R)
Systems. You and we may also, by mutual agreement, share the costs of
participating in a trade show at which you and we both have a presence.

                                       2
<PAGE>

      6. Sales Training. You will provide reasonable quantities of existing
training materials, presentations, sales/demonstration tools, product brochures
and sales literature regarding the EVLT(R) System to us at no cost to assist us
in developing an in-house sales training program for our sales representatives.
You will also provide yearly sales training to at least three (3) of our sales
representatives at no cost, provided that we will bear the travel and living
costs associated with the training.

      7. Customer Support.

            (a) You will provide our customers with standard installation,
training and warranty service on all EVLT(R) Systems we sell, at no cost to us.
You will abide by your uptime, service and warranty commitments, as established
by you from time to time, and will inform us of the terms of these commitments
in writing. You will provide telephone consultations and clinical assistance for
post-sale customer support and product questions relating to the EVLT(R) System
to our customers at no cost to us.

            (b) On your request, we will provide clinical training to customers
that purchase EVLT Systems from us, and you will reimburse us for such training
at a rate to be agreed upon, plus reasonable expenses other than travel and
living expenses. Clinical training services we provide will only be performed by
our employees whom you have certified to provide such training.

      8. Orders. We will place orders for EVLT(R) Systems with you FOB Diomed on
our standard purchase order form setting forth the quantity of the products
ordered and the desired shipment date (which shall not be less than two (2)
weeks following the date of the order unless you otherwise agree). Any
pre-printed terms and conditions on our standard purchase order form shall not
modify the terms of this Agreement. You will notify us within one business day
following receipt of our order if EVLT(R) Systems are not available for shipment
within two (2) weeks, and, in such case, you will be responsible for any
additional reasonable costs incurred to expedite shipment. No order will be
binding unless acknowledged and accepted by you, but you may not unreasonably
refuse to accept any order. You will confirm your acceptance or rejection of an
order within five (5) days after your receipt of such order. Once an order is
accepted, neither you nor we may cancel or modify it without the other party's
approval.

      9. Pricing, Shipping and Payment.

            (a) The initial price at which you will sell EVLT(R) Systems to us
is set forth on Exhibit A. We may also purchase certain services from you, as
set forth on Exhibit A, at the prices listed therein. You have the right to
modify the price we pay for EVLT(R) Systems or such services upon sixty (60)
days' prior written notice. In the event of a price increase, we will, within
thirty (30) days, provide you with a list of pending customer sales, and you
will permit us to place orders for EVLT(R) Systems for sale to those customers
at the pre-increase price until ninety (90) days after the date of your notice
of the price increase. You and we agree that we will determine the prices at
which we sell EVLT(R) Systems and services to end users.

                                       3
<PAGE>

            (b) You will also sell us two (2) EVLT(R) Systems for demonstration
purposes at a price of ****CONFIDENTIAL TREATMENT REQUESTED**** each, and we
agree that we will not resell such systems. You may, from time to time, sell us
additional used EVLT(R) Systems at a discounted price for demonstration
purposes, which we may resell to customers. The price we pay for such used
EVLT(R) Systems will be determined by mutual agreement based on the age and past
usage level of the systems.

            (c) You will ship EVLT(R) Systems purchased by us, FOB from your
manufacturing facility, to us or to our customer, as we specify in our orders.
We will make payment to you within 45 days from the date of receipt of the
goods, and you may charge us interest (at a rate of 1% per month) and reasonable
collection costs on any late payments.

      10. Fulfillment of Orders. You agree to sell and deliver to us (subject to
our orders) a number of EVLT(R) Systems at least equal to the minimum number of
systems described in paragraph 11 below. Beyond such minimum number of systems,
you agree to use commercially reasonable efforts to sell and deliver to us
(subject to our orders) a sufficient quantity of EVLT(R) Systems to meet our
requirements.

      11. Minimum Purchases.

            (a) We will issue a purchase order for at least ****CONFIDENTIAL
TREATMENT REQUESTED**** EVLT(R) Systems upon your execution of this Agreement.
In order to maintain exclusivity under this Agreement, we must purchase at least
****CONFIDENTIAL TREATMENT REQUESTED**** EVLT(R) Systems during each successive
three (3) month period during the term of this Agreement.

            (b) If we fail to purchase the minimum number of EVLT(R) Systems
during any three (3) month period for any reason (except as described below),
then, upon your delivery of written notice of such failure to us, our rights
under paragraph 2 of this Agreement shall become non-exclusive in nature and
thereafter you will have the right to yourself distribute and sell, and grant to
third parties the right to distribute and sell, the EVLT(R) Systems within the
Market.

            (c) If you reject any order, the minimum purchase quantity for the
period in which such order was placed will be reduced by the number of EVLT(R)
Systems covered by such rejected order. Similarly, if you fail to deliver any
EVLT(R) Systems within ten (10) days after the date for delivery specified by us
in the order for such systems, the minimum purchase commitment for the period in
which such systems were scheduled for delivery will be reduced by the number of
EVLT(R) Systems which were not so delivered. If during any period we purchase
more than the minimum number of EVLT(R) Systems that we are required to purchase
for such period, such excess number of systems will be applied to reduce the
minimum purchase commitment for the subsequent period or periods.

      12. Term. This Agreement will be effective as of the date of your
execution of this Agreement, and unless sooner terminated pursuant to the terms
hereof, will terminate on the third (3rd) anniversary of such date. You and we

                                       4
<PAGE>

may, by written agreement, extend the term of this Agreement for additional one
(1) year periods after the initial term. This Agreement may be terminated by
either you or us if the other party materially breaches any of the terms of this
Agreement and fails to cure such breach within thirty (30) days after written
demand by the non-breaching party.

      13. Rights Upon Termination. Upon the termination of this Agreement for
any reason, all rights and obligations of the parties under this Agreement will
cease, except for (i) our obligation to make payments with respect to orders of
EVLT(R) Systems delivered by you prior to the effective date of termination,
(ii) our right to continue to distribute and sell for a period of 180 days all
EVLT(R) Systems we have on hand as of the effective date of termination, and
(iii) the rights and obligations of the parties under this paragraph and under
paragraph 14.

      14. Indemnification. You agree to defend and indemnify us and hold us
harmless from any liability, damages, costs, or expenses that we might incur
from claims asserted or instituted against us in connection with our
distribution or sale of EVLT(R) Systems under this Agreement to the extent that
such claims arise out of (i) an alleged violation of any United States
copyright, patent, trademark or other proprietary right of any third party, or
(ii) an alleged lack of quality or safety of any EVLT(R) Systems sold by you to
us under this Agreement. We will give you prompt notice of any such claim, and
will give you full authority, in your discretion, to control the defense of, or
to settle, any such claim at your expense.

      15. Disputes. Any dispute arising out of or relating to this Agreement
will be submitted to binding arbitration in Boston, Massachusetts, pursuant to
the Commercial Arbitration Rules of the American Arbitration Association, and
judgment on the award may be entered in any court of competent jurisdiction,
provided, however that either party may seek preliminary injunctive or other
equitable relief pending arbitration to prevent irreparable harm. You and we
each submit to the nonexclusive jurisdiction of state courts of The Commonwealth
of Massachusetts or the United States District Court for the District of
Massachusetts for the purposes described in this paragraph. The prevailing party
in any arbitration or litigation will be entitled to recover all reasonable
expenses thereof, including attorney's fees in connection with such proceedings
or any appeal thereof.

      16. General. This Agreement: (a) may be executed in any number of
counterparts, all of which together shall constitute one and the same
instrument; (b) shall be governed by the laws of The Commonwealth of
Massachusetts; (c) constitutes the entire agreement between you and us with
respect to its subject matter, superseding all prior oral and written
communications, negotiations, understandings, agreements and the like between
you and us in such respect, other than the existing non-disclosure agreement
between you and us; (d) may be amended, and any right under this Agreement may
be waived, only in writing (which, in the case of any amendment is signed by you
and us, or, in the case of the waiver of any right, by the party waiving such
right); (e) shall bind and inure to the benefit of both you and us and our
respective successors and assigns; (f) shall be construed as if both parties
jointly prepared this Agreement; (g) shall be terminable without cause by either
you or us upon ninety (90) days' written notice to the other party; (h) shall be
severable, such that if any provision of this Agreement is invalid or
unenforceable, such provision shall be excluded from this Agreement and the
balance of this Agreement shall be interpreted as if such provision were so

                                       5
<PAGE>

excluded and shall be enforceable in accordance with its terms; (i) contains
rights which are cumulative, and no right or remedy conferred upon either party
is intended to be exclusive of any other right or remedy, and every right and
remedy shall be in addition to any other right or remedy given; (j) shall not be
construed such that any waiver by either party of any of its rights or of any
breaches of the other party in a particular instance is deemed a waiver of the
same or different rights or breaches in subsequent instances; and (k) shall not
be construed so as to constitute the relationship of the parties as partners,
joint venturers, agents or any kind of relationship other than independent
contractors.

      If you agree with and accept the above terms, please indicate your
agreement and acceptance by signing below.

                                        Yours truly,

                                        MED1ONLINE

                                        /s/  Ralph Morgan
                                        Ralph Morgan, Vice President of Sales
                                        and Marketing

Agreed and accepted
As of June 24, 2005:

DIOMED, INC.

/s/  Christopher Geberth
Christopher Geberth, Vice President Finance

                                       6
<PAGE>

                               EXHIBIT A -Pricing

Transfer price to Med1Online: ****CONFIDENTIAL TREATMENT REQUESTED****

Transfer price includes installation by clinical sales person or regional sales
person. The installation shall at the minimum include: equipment installation,
in-service, laser safety training, and supervision of 2-3 live cases.

Invoice Line Items

<TABLE>
<CAPTION>
<S>                                             <C>
Physician Training:                             ****CONFIDENTIAL TREATMENT REQUESTED****
Face-to-face Sales Call without Demonstration:  ****CONFIDENTIAL TREATMENT REQUESTED****
Demonstration and sales call:                   ****CONFIDENTIAL TREATMENT REQUESTED****
</TABLE>

                                       7
<PAGE>

                         EXHIBIT B -Current Account List

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

o     ****CONFIDENTIAL TREATMENT REQUESTED****

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]