Document:

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                                                                     EXHIBIT 4.9

                                                                       NO. CSW-3

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND, EXCEPT AS PROVIDED HEREIN, MAY NOT
BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
THEREOF UNDER SUCH ACT EXCEPT PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS
NOT REQUIRED.

                        WARRANT TO PURCHASE COMMON STOCK

Company:                  Handspring, Inc., a Delaware corporation

Number of Shares:         150,000

Class of Stock:           Common Stock

Initial Exercise Price:   $0.719 per share, representing the average closing
                          price per share over the ten (10) trading day period
                          preceding the Issue Date

Issue Date:               March 17, 2003

Expiration Date:          March 17, 2010

      This Warrant certifies that, for good and valuable consideration,
EOP-Industrial Portfolio, L.L.C., a Delaware limited liability company (the
"HOLDER"), is entitled to purchase from the corporation named above (the
"COMPANY"), from the Issue Date until 5:00 p.m. Pacific time on the Expiration
Date, the number of fully paid and nonassessable shares of the class of stock
(the "SHARES") of the Company at the Initial Exercise Price per Share (the
"WARRANT PRICE"), all as set forth above and as adjusted pursuant to Section 2
of this Warrant, subject to the provisions and upon the terms and conditions set
forth in this Warrant.

      1.    EXERCISE.

            1.1   METHOD OF EXERCISE. The Holder may exercise this Warrant by
delivering a duly executed Notice of Exercise in substantially the form attached
as Exhibit A to the principal office of the Company. Unless the Holder is
exercising the election set forth in Section 1.2, this Warrant may be exercised
in whole or in part and the Holder shall make payment therefore either by
delivery to the Company of a check for the aggregate Warrant Price for the
Shares being purchased, or by cancellation of indebtedness owed by the Company
to the Holder, or by a combination of the foregoing.

            1.2   NET EXERCISE ELECTION. The Holder may elect to exercise all or
a portion of this Warrant, without the payment by the Holder of any additional
consideration, by the surrender of this Warrant or such portion of this Warrant
to the Company, with the net exercise election selected in the Notice of
Exercise attached hereto as Exhibit A duly executed by the Holder, into up to
the number of Shares that is obtained under the following formula:
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                                   X = Y (A-B)
                                       ------
                                        A

Where:      X =   the number of Shares to be issued to the Holder pursuant to
                  this Section 1.2.

            Y =   the number of Warrant Shares as to which this Warrant is then
                  being net exercised.

            A =   the fair market value of one Share shall be the closing price
                  per share of the Company's Common Stock quoted on the Nasdaq
                  National Market, or on any exchange on which the Common Stock
                  is listed, whichever is applicable, as published in the
                  Western Edition of The Wall Street Journal for the five (5)
                  trading days prior to the date the net exercise election is
                  made pursuant to this Section 1.2; if there does not exist a
                  public market for the Company's Common Stock at the time of
                  such exercise, the fair market value of one Share shall be as
                  determined by the Company's Board of Directors in good faith
                  and communicated in writing to Holder upon Holder's request.

            B =   the Warrant Price.

            1.3   DELIVERY OF CERTIFICATE AND NEW WARRANT. Promptly after Holder
exercises this Warrant, the Company shall deliver to Holder certificates for the
Shares acquired and, if this Warrant has not been fully exercised and has not
expired, this Warrant shall automatically be reduced by the number of Shares
issued and remain exercisable for such remaining Shares not so acquired, and all
other terms of the Warrant shall otherwise remain in full force and effect as so
adjusted. Upon final exercise of this Warrant for any such remaining number of
Shares, this Warrant shall be surrendered by the Holder to the Company for
cancellation.

            1.4   REPLACEMENT OF WARRANTS. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and amount to the Company
(but without the requirement of a bond in the case where the Warrant is held by
the initial Holder) or, in the case of mutilation, on surrender and cancellation
of this Warrant, the Company at its expense shall execute and deliver, in lieu
of this Warrant, a new warrant of like tenor.

            1.5   SALE, MERGER, CONSOLIDATION OR LIQUIDATION OF THE COMPANY.

                  1.5.1 Acquisition. For the purpose of this Warrant,
"ACQUISITION" means (a) any sale or exchange of the capital stock by the
stockholders of the Company in one transaction or series of related transactions
where more than 50% of the outstanding voting power of the Company is acquired
by a person or entity or group of related persons or entities; or (b) any
reorganization, consolidation, merger or similar transaction or series of
related transactions (each, a "COMBINATION TRANSACTION") in which the Company is
a constituent corporation or is a party if, as a result of such Combination
Transaction, the voting securities of the Company that are outstanding
immediately prior to the consummation of such Combination Transaction do not
represent, or are not converted into, securities of the surviving corporation of

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such Combination Transaction (or such surviving corporation's parent corporation
if the surviving corporation is owned by the parent corporation) that,
immediately after the consummation of such Combination Transaction, together
possess at least fifty percent (50%) of the total voting power of all securities
of such surviving corporation (or its parent corporation, if applicable) that
are outstanding immediately after the consummation of such Combination
Transaction; or (c) a sale of all or substantially all of the assets of the
Company, that is followed by the distribution of the proceeds to the Company's
stockholders.

                  1.5.2 Assumption of Warrant. Upon the closing of (a) any
Combination Transaction that is not an Acquisition or (b) any Acquisition where
the consideration for the Acquisition to be received by the Company's
stockholders in exchange for their capital stock of the Company consists solely
of stock or other securities of the acquirer or any entity affiliated with the
acquirer, the successor entity shall assume the obligations of this Warrant, and
this Warrant shall be exercisable for the same securities or other consideration
as would be payable for the Shares issuable upon exercise of the unexercised
portion of this Warrant as if such Shares were outstanding on the record date
for such Combination Transaction or Acquisition, as the case may be, and
subsequent closing thereof. The Warrant Price shall be adjusted accordingly.

                  1.5.3 Termination of Warrant. In the case of (a) an
Acquisition where the consideration for the Acquisition to be received by the
Company's stockholders in exchange for their capital stock of the Company
consists of cash or a combination of cash and securities and/or other property
of the acquirer or any entity affiliated with the acquirer or (b) the proposed
liquidation and dissolution of the Company, the Company shall give Holder at
least twenty (20) days advance written notice of such event (the "COMPANY
NOTICE"), which notice shall include the Company's best estimate of the per
Share price receivable upon the occurrence of the event set forth in (a) or (b)
above and the proposed date upon which such event is expected to occur. During
such notice period, Holder may exercise this Warrant in accordance with its
terms, and may make such exercise contingent upon the happening of such event
and/or the existence of a minimum value of the Shares receivable upon exercise
as provided on Holder's exercise notice; provided that such minimum value shall
be no greater than the per share price set forth in the Company Notice. Subject
to prior exercise as provided in the preceding sentence, this Warrant will
terminate at 5:00 p.m. Pacific time on the day prior to the date such event is
expected to occur as set forth in the Company Notice; provided that (a) the
Company Notice of the proposed event is actually received by the Holder, as
evidenced by a return receipt of certified mail delivery, a certificate of
delivery by hand delivery or written verification of delivery from the overnight
courier, and (b) the event actually occurs.

      2.    ADJUSTMENTS TO THE SHARES.

            2.1   COMMON STOCK DIVIDENDS, SPLITS, ETC. If the Company declares
or pays a dividend on the outstanding shares of the Company's Common Stock
payable in shares of the Company's Common Stock or subdivides or combines the
outstanding shares of the Company's Common Stock, then upon exercise of this
Warrant, the Holder shall receive, without cost to the Holder, the total number
of shares of Common Stock to which the Holder would have been entitled had the
Holder owned the Shares of record as of the date the dividend, subdivision or
combination occurred.

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            2.2   RECLASSIFICATION, EXCHANGE OR SUBSTITUTION. Upon any
reclassification, exchange, substitution, or other event that results in a
change of the number and/or class of the securities issuable upon exercise of
this Warrant (other than an Acquisition or a stock dividend, split, combination
or other distribution), the Holder shall be entitled to receive, upon exercise
of this Warrant, the number and kind of securities and property that Holder
would have received for the Shares if this Warrant had been exercised
immediately before such reclassification, exchange, substitution or other event.
The Company or its successor shall promptly issue to the Holder a new Warrant
for such new securities or other property. The new Warrant shall provide for
adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 2 including, without limitation,
appropriate adjustments to the Warrant Price and to the number of securities or
property issuable upon exercise of the new Warrant.

            2.3   ADJUSTMENTS OF WARRANT PRICE. If the outstanding Shares are
combined or consolidated, by reclassification or otherwise, into a lesser number
of shares, the Warrant Price shall be proportionately increased. If the
outstanding Shares are divided by reclassification or otherwise, into a greater
number of shares, the Warrant Price shall be proportionately decreased.

            2.4   ADJUSTMENT IS CUMULATIVE. The provisions of this Section 2
shall similarly apply to successive stock dividends, stock splits or
combinations, reclassifications, exchanges, substitutions, or other events.

            2.5   FRACTIONAL SHARES. No fractional Shares shall be issuable upon
exercise of the Warrant and the number of Shares to be issued shall be rounded
down to the nearest whole Share. If a fractional share interest arises upon any
exercise of the Warrant, the Company shall eliminate such fractional Share
interest by paying Holder an amount by check computed by multiplying the
fractional interest by the fair market value of a full Share.

            2.6   NOTICE OF CERTAIN EVENTS. In case of any Acquisition or of the
voluntary or involuntary dissolution, liquidation or winding up of the Company,
then in each such event the Company shall cause to be given to the Holder at
least twenty (20) days prior notice of such event. The Company recognizes and
acknowledges that Equity Office Properties Trust, a Maryland real estate
investment trust ("EOPT") and an affiliate of the initial Holder, intends to
qualify as a "real estate investment trust" for purposes of the Internal Revenue
Code of 1986, as amended, and that maintaining such status is of material
concern to EOPT and the initial Holder. Accordingly, the Company represents and
warrants to Holder that as of the date hereof, the shares of Common Stock of the
Company deliverable on the exercise of this Warrant do not constitute ten
percent (10%) or more of either (i) the total voting power or (ii) the total
value of the current outstanding securities of the Company. The Company shall
notify Holder in writing at least twenty (20) days in advance of any redemption,
repurchase, or other actions taken by the Company or any other person, including
but not limited to any additional issuances or adjustments made pursuant to any
provisions of this Warrant, in each case which would cause the shares of Common
Stock of the Company deliverable on the exercise of this Warrant to constitute
ten percent (10%) or more of either (i) the total voting power or (ii) the total
value of the outstanding securities of the Company. For purposes of this Section
2.6, the term "securities" shall have the meaning used for such term in the
Investment Company Act of 1940,

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as amended, and the term "value" shall mean, with respect to securities for
which market quotations are readily available, the market value of such
securities and, with respect to any other securities, the fair value of such
securities.

            2.7   CERTIFICATE AS TO ADJUSTMENTS. Upon each adjustment of the
Warrant Price, the Company at its expense shall promptly compute such
adjustment, and furnish Holder with a certificate of its Chief Financial Officer
setting forth such adjustment and the facts upon which such adjustment is based.
The Company shall, upon written request, furnish Holder a certificate setting
forth the Warrant Price in effect upon the date thereof and the series of
adjustments leading to such Warrant Price.

      3.    REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

            3.1   REPRESENTATIONS AND WARRANTIES. The Company hereby represents
and warrants to the Holder that: (a) the Company has all requisite power and
authority to enter into and perform its obligations under this Warrant; (b) as
of the date hereof, there are 1,000,000,000 shares of Common Stock of the
Company authorized, of which 147,140,955 shares are issued and outstanding; (c)
the execution and delivery by the Company of the Warrant and the performance of
all obligations of the Company hereunder have been duly authorized by all
necessary board and stockholder actions; and (d) all Shares which may be issued
upon the exercise of the purchase right represented by this Warrant shall, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable, and
free of any liens and encumbrances except for restrictions on transfer provided
for herein or under applicable federal and state securities laws.

            3.2   REGISTRATION RIGHTS.

                  3.2.1 Certain Definitions. For purposes of this Section 3.2:

                        (a)   Registration. The terms "REGISTER," "REGISTERED"
and "REGISTRATION" refer to a registration effected by preparing and filing a
registration statement in compliance with the Securities Act of 1933, as amended
(the "SECURITIES ACT"), and the declaration or ordering of effectiveness of such
registration statement.

                        (b)   Registrable Securities. The term "REGISTRABLE
SECURITIES" means (i) the Shares that are issuable to the Holder upon exercise
of the Warrant, and (ii) any shares of the Company's Common Stock that may be
issued as a dividend or other distribution (including shares of the Company's
Common Stock issued in a subdivision and split of the Company's outstanding
Common Stock) with respect to, or in exchange for, or in replacement of, shares
of the Company's Common Stock described in clauses (i) or (ii) of this Section
3.2.1(b); excluding in all cases, however, from the definition of "Registrable
Securities" any such shares of the Company's Common Stock that are: (w)
registered under the Securities Act other than pursuant to a registration
statement filed pursuant to this Warrant; (x) transferred by a person in a
transaction in which rights under this Warrant with respect to such shares of
the Company's Common Stock are not assigned in accordance with the terms of this
Warrant; (y) sold pursuant to a registration statement filed pursuant to this
Warrant; or (z) sold pursuant to

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Rule 144 promulgated under the Securities Act or otherwise sold to the public.
Except as provided in clause (ii) of the first sentence of this Section
3.2.1(b), without limitation, the term "Registrable Securities" does not include
any shares of the Company's Common Stock that were not issued in connection with
the exercise of this Warrant.

                        (c)   Form S-3. The term "FORM S-3" means a registration
statement filed under Form S-3 under the Securities Act, as such is in effect at
the Issue Date, or any successor form of registration statement under the
Securities Act subsequently adopted by the Securities and Exchange Commission
(the "SEC") which permits inclusion or incorporation of a substantial amount of
information by reference to other documents filed by the Company with the SEC.

                        (d)   Rule 415. The term "RULE 415" means Rule 415
promulgated under the Securities Act, as such Rule may be amended from time to
time, or any similar or successor rule or regulation hereafter adopted by the
SEC.

                  3.2.2 Form S-3 Shelf Registration.

                        (a)   Filing and Registration Period. Subject to the
terms and conditions of this Warrant, no later than May 29, 2003, and consistent
with the requirements of applicable law, the Company shall prepare and file with
the SEC a registration statement on Form S-3 for an offering to be made on a
continuous basis pursuant to Rule 415 covering all of the then outstanding
Registrable Securities (the "SHELF REGISTRATION"). The Company shall use
commercially reasonable efforts to have such Shelf Registration declared
effective no later than July 29, 2003 and to keep the Shelf Registration
continuously effective under the Securities Act for a continuous period of time
(such period of time being hereinafter called the "REGISTRATION PERIOD")
commencing on the date the Shelf Registration is declared effective under the
Securities Act by the SEC and ending on the date that is the second anniversary
of the Issue Date. The Company shall have no duty or obligation to keep the
Shelf Registration effective after the expiration of the Registration Period.

                        (b)   Supplements and Amendments. During the
Registration Period, the Company shall supplement and amend the Shelf
Registration, if, as and when required by the Securities Act, the rules and
regulations promulgated thereunder or the rules, regulations or instructions
applicable to Form S-3.

                        (c)   Manner of Sales. Any sale of Registrable
Securities pursuant to a Shelf Registration under this Section 3.2.2 may only be
made in accordance with the method or methods of distribution of such
Registrable Securities that are described in the registration statement for the
Shelf Registration, based on information provided by the Selling Holders under
Section 3.2.7 and permitted by such form of registration statement. Any sale of
Registrable Securities pursuant to a Shelf Registration under this Section 3.2.2
must be made in compliance with applicable prospectus delivery requirements.

                        (d)   No Underwritings. No sale of Registrable
Securities under any Shelf Registration effected pursuant to this Section 3.2.2
may be effected pursuant to any

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underwritten offering without the Company's prior written consent, which may be
withheld in its sole and absolute discretion.

                        (e)   Restrictions on Sale. Holder acknowledges and
agrees that any sale of Registrable Securities under any Shelf Registration
effected pursuant to this Section 3.2.2 must be pre-cleared with the Company's
General Counsel in order to ensure that there is no material undisclosed
corporate information that could render such Shelf Registration inaccurate.

                  3.2.3 Limitations. Notwithstanding the provisions of Section
3.2.2 above, the Company shall not be obligated to effect any registration,
qualification or compliance of Registrable Securities pursuant to Section 3.2.2
of this Warrant, and the Holder shall not be entitled to sell Registrable
Securities pursuant to any registration statement filed under Section 3.2.2 of
this Warrant, as applicable:

                        (f)   if Form S-3 is not then available for such
offering by the Holder provided, that if such form is not available, the Company
shall use commercially reasonable efforts to become eligible to use such form
and the Registration Period shall be extended for such period of time that such
form is not available, but only if all of Holder's Registrable Securities may
not be resold in a three month period pursuant to Rule 144;

                        (g)   if the Company shall furnish to the Holder a
certificate signed by an officer of the Company stating that, in the good faith
judgment of such officer, it would be detrimental to the Company and its
stockholders for sales under the Registration Statement to occur at such time,
due, for example, to the existence of a material development or potential
material development involving the Company, which the Company would be obligated
to disclose in the prospectus contained in the Shelf Registration, which
disclosure would, in the good faith judgment of such officer, be premature or
otherwise inadvisable at such time or would have a material adverse affect upon
the Company and its stockholders, in which event the Company will have the right
to suspend the use of the Registration Statement for a period of not more than
thirty (30) days pursuant to this Section 3.2.3(b), provided that in the event
that the Registration Statement is suspended by the Company pursuant to this
Section 3.2.3(b), then the Company shall extend the Registration Period
hereunder by the number of days that the Registration Statement was suspended;

                        (h)   if the Company's Common Stock ceases to be
publicly traded;

                        (i)   in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general
consent to service of process in effecting such registration, qualification or
compliance, unless the Company is already subject to service of process in such
jurisdiction; or

                        (j)   if the SEC refuses to declare such registration
effective due to the participation of any particular Holder in such registration
(unless such Holder withdraws all such Holder's Registrable Securities from such
registration statement); or if the manner in which any Registrable Securities
are proposed to be disposed of pursuant to the Shelf

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Registration is not included within the plan of distribution set forth in the
prospectus for the Shelf Registration.

                  3.2.4 Shares Otherwise Eligible for Resale. Notwithstanding
anything herein to the contrary, the Company shall not be obligated to effect or
continue to keep effective any such registration, registration statement,
qualification or compliance with respect to the Registrable Securities held by
any particular Holder:

                        (k)   if all of the Registrable Securities then held by
such Holder may be resold by such Holder within a three month period without
registration under the Securities Act pursuant to the provisions of Rule 144
promulgated under the Securities Act (or successor provisions), or otherwise; or

                        (l)   after expiration or termination of the
Registration Period.

                  3.2.5 Expenses. The Company shall pay all expenses incurred in
connection with any registration effected by the Company pursuant to this
Warrant (excluding brokers' discounts and commissions), including, without
limitation, all filing, registration and qualification, printers', legal
(including, the reasonable fees and expenses of one counsel for all Holders as a
group) and accounting fees.

                  3.2.6 Obligations of Company. Subject to Sections 3.2.2, 3.2.3
and 3.2.4 above, when required to effect the registration of any Registrable
Securities under the terms of this Warrant, the Company will, as expeditiously
as reasonably possible:

                        (m)   furnish to each of the Holders such number of
copies of the prospectus for the Shelf Registration, including a preliminary
prospectus (and amendments or supplements thereto), in conformity with the
requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by them;

                        (n)   notify each Holder of Registrable Securities
promptly and, if requested by such Holder, confirm such notification in writing
promptly (i) when the registration statement has become effective and when any
post-effective amendments and supplements thereto become effective, (ii) of any
request by the SEC or any state securities authority for any post-effective
amendments or supplements to a registration statement that has become effective,
(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a registration statement or the initiation
of any proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, and (v) of any determination by
the Company that a post-effective amendment to a registration statement would be
appropriate;

                        (o)   use all reasonable efforts to (i) register and
qualify the securities covered by such registration statement under such other
securities or blue sky laws of such jurisdictions in the United States as will
be reasonably requested by the Holders; provided that the Company will not be
required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such state or
jurisdiction;

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and (ii) cause such Registrable Securities to be registered with or approved by
such other governmental agencies or authorities, including the National
Association of Securities Dealers as may be necessary by virtue of the business
and operations of the Company; provided that the Company will not be required to
(A) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph (c), (B) subject itself
to taxation in any jurisdiction, or (C) consent to general service of process in
any such jurisdiction except as may be required by the Securities Act;

                        (p)   use its commercially reasonable efforts to cause
all such Registrable Securities to be listed on the Nasdaq National Market and
each securities exchange on which similar securities issued by the Company are
then listed; and

                        (q)   upon the request of any Holder, promptly provide
the name, address and other contact information regarding the Company's transfer
agent for the Registrable Securities and the CUSIP number for the Registrable
Securities.

                  3.2.7 Furnish Information. It shall be a condition precedent
to the obligations of the Company to take any action pursuant to this Section
3.2 that any selling Holders will furnish to the Company such information
regarding themselves, the Registrable Securities held by them, and the intended
method of disposition and plan of distribution of such Registrable Securities as
shall be required to timely effect the registration of their Registrable
Securities.

                  3.2.8 Delay of Registration. No Holder will have any right to
obtain or seek an injunction restraining or otherwise delaying any registration
that is the subject of this Warrant as the result of any controversy that might
arise with respect to the interpretation or implementation of this Warrant.

                  3.2.9 Indemnification.

                        (r)   By the Company. To the extent permitted by law,
the Company will indemnify, defend and hold harmless each Holder and its
directors, officers and each person, if any, who controls Holder with the
meaning of the Securities Act, against any losses, claims, damages, or
liabilities (joint or several) or actions in respect thereof, including any of
the foregoing incurred in a settlement of any litigation, commenced or
threatened, or to which such Holder may otherwise become subject under the
Securities Act, the Securities Exchange Act of 1934, as amended (the "EXCHANGE
ACT") or other U.S. federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations
(collectively, a "VIOLATION"):

                              (i)   any untrue statement or alleged untrue
statement of a material fact contained in a registration statement filed by the
Company pursuant to this Warrant pursuant to which Registrable Securities are
sold, including any preliminary prospectus or final prospectus contained therein
or any amendments or supplements thereto;

                              (ii)  the omission or alleged omission to state in
such registration statement, preliminary prospectus or final prospectus or any
amendments or

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supplements thereto, a material fact required to be stated therein, or necessary
to make the statements therein not misleading; or

                              (iii) any Violation or alleged Violation by the
Company of the Securities Act, the Exchange Act, any U.S. federal or state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any U.S. federal or state securities law in connection with
the offering of Registrable Securities covered by such registration statement;

provided, however, that the indemnity agreement contained in this Section
3.2.9(a) shall not apply to (A) any losses, claims, damages or liabilities (or
actions in respect thereto) insofar as such Violation occurs in reliance upon
and in conformity with information furnished in writing by any Holder for use in
connection with such registration; (B) amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the written consent of the Company (which consent shall not be unreasonably
withheld); or (C) any losses, claims, damages or liabilities (or actions in
respect thereto) insofar as such Violation results from Holder's failure to
comply with the terms and conditions of Sections 3.2.2(c) or (e).

                        (s)   By the Holder. To the extent permitted by law,
each selling Holder will indemnify and hold harmless the Company, each of its
directors, each of its officers who have signed the registration statement, each
Person, if any, who controls the Company within the meaning of the Securities
Act, any underwriter and any other Holder selling securities under such
registration statement, against any losses, claims, damages or liabilities
(joint or several) to which the Company or any such director, officer,
controlling person, underwriter or other such Holder may become subject under
the Securities Act, the Exchange Act or other federal or state law, insofar as
such losses, claims, damages or liabilities (or actions in respect thereto)
arise out of or are based upon any Violation, in each case to the extent (and
only to the extent) that such Violation (i) occurs in reliance upon and in
conformity with information furnished in writing by such Holder for use in
connection with such registration or (ii) results from Holder's failure to
comply with the terms and conditions of Sections 3.2.2(c) or (e). Each selling
Holder's liability pursuant to this Section 3.2.9(b) shall be limited to an
amount equal to the net proceeds received by such selling Holder pursuant to
sales under the registration statement.

                        (t)   Notice. Promptly after receipt by an indemnified
party under this Section 3.2.9 of notice of the commencement of any action
(including any governmental action) against such indemnified party, such
indemnified party will, if a claim for indemnification or contribution in
respect thereof is to be made against any indemnifying party under this Section
3.2.9, deliver to the indemnifying party a written notice of the commencement
thereof and, if the indemnifying party is the Company, the Company shall have
the right and obligation to control the defense of such action, and if the
Company fails to defend such action it shall indemnify and promptly reimburse
the selling Holders for any reasonable attorneys' fees and other expenses
reasonably incurred by them in connection with investigating or defending such
action; provided, however, that: (i) the Company shall also have the right, at
its option, to assume and control the defense of any action with respect to
which the Company or any person entitled to be indemnified by the selling
Holders under Section 3.2.9(b) is entitled to indemnification from the selling
Holders; (ii) the indemnified party or parties shall have the right

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to participate at its own expense in the defense of such action and (but only to
the extent agreed in writing with the Company and any other indemnifying party
similarly noticed) to assume the defense thereof with counsel mutually
satisfactory to the parties; and (iii) an indemnified party shall have the right
to retain its own counsel, with the fees and expenses of such counsel to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to an
actual or potential conflict of interests between such indemnified party and any
other party represented by such counsel in such proceeding. The failure of an
indemnified party to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, if prejudicial to the
ability of the indemnifying party to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
3.2.9, but the omission so to deliver written notice to the indemnifying party
will not relieve the indemnifying party of any liability that it may have to any
indemnified party otherwise than under this Section 3.2.9.

                        (u)   Defect Eliminated in Final Prospectus. The
foregoing indemnity agreements of the Company and the Holders are subject to the
condition that, insofar as they relate to any Violation made in a preliminary
prospectus but eliminated or remedied in the amended or supplemented prospectus
on file with the SEC and effective at the time the sale of Registrable
Securities under such registration statement occurs (the "AMENDED PROSPECTUS"),
such indemnity agreement shall not inure to the benefit of any person if a copy
of the Amended Prospectus was furnished to the indemnified party and was not
furnished to the person asserting the loss, liability, claim or damage in the
action giving rise to indemnity claims under this Section 3.2.9, at or prior to
the time such action is required by the Securities Act.

                        (v)   Survival. The obligations of the Company and any
Holders under this Section 3.2.9 shall survive the completion of any offering of
Registrable Securities in a registration statement pursuant to this Warrant, and
otherwise.

                  3.2.10 Duration and Termination of Company's Obligations. The
Company will have no obligations pursuant to Section 3.2.2 of this Warrant to
maintain or continue to keep effective any registration or registration
statement pursuant hereto: (a) after the expiration or termination of the
Registration Period; (b) with respect to a particular Holder if, in the opinion
of counsel to the Company, all such Registrable Securities proposed to be sold
by such Holder may be sold in a three (3) month period without registration
under the Securities Act pursuant to Rule 144 promulgated under the Securities
Act or otherwise; or (c) if all Registrable Securities have been registered and
sold pursuant to a registration effected pursuant to this Warrant and/or have
been transferred in transactions in which registration rights hereunder have not
been assigned in accordance with this Warrant.

            3.3   REPORTS UNDER THE EXCHANGE ACT. With a view to making
available to the Holder the benefits of Rule 144 and any other rule or
regulations of the SEC that may at any time permit Holder to sell securities of
the Company to the public without registration, the Company agrees to use
commercially reasonable efforts to:

                  (a)   make and keep public information available, as those
terms are understood and defined in Rule 144, at all times after the Issue Date.

                                       11
<PAGE>
                  (b)   file with the SEC in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act; and

                  (c)   furnish to Holder, so long as the Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by the
Company that it has complied with the reporting requirements of Rule 144, the
Securities Act and the Exchange Act, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to
avail Holder of any rule or regulation of the SEC that permits the selling of
any such securities without registration or pursuant to such form.

      4.    REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE HOLDER.

            4.1   REPRESENTATIONS. The Holder hereby represents and warrants to
the Company as follows: The Holder is a sophisticated investor having such
knowledge and experience in business and investment matters that the Holder is
capable of protecting the Holder's own interests in connection with the
acquisition, exercise or disposition of this Warrant. The Holder is an
"accredited investor" within the meaning of Regulation D promulgated under the
Securities Act. The Holder is aware that this Warrant and the Shares are being,
or will be, issued to the Holder in reliance upon the Holder's representation in
this Section 4 and that such securities are restricted securities that cannot be
publicly sold except in certain prescribed situations. The Holder is aware of
the provisions of Rule 144 promulgated under the Securities Act and of the
conditions under which sales may be made thereunder. The Holder has received
such information about the Company as the Holder deems reasonable, has had the
opportunity to ask questions and receive answers from the Company with respect
to its business, assets, prospects and financial condition and has verified any
answers the Holder has received from the Company with independent third parties
to the extent the Holder deems necessary. The Holder of this Warrant, by
acceptance hereof, acknowledges that this Warrant and the Shares to be issued
upon exercise hereof thereof are being acquired solely for the Holder's own
account and not as a nominee for any other party, and for investment, and that
the Holder will not offer, sell or otherwise dispose of this Warrant or any
Shares to be issued upon exercise hereof thereof except under circumstances that
will not result in a violation of the Act or any state securities laws.

            4.2   LEGENDS. This Warrant and the Shares shall be imprinted with a
legend in substantially the following form:

            THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
            1933, AS AMENDED, OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD,
            PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
            THEREOF UNDER SUCH ACT OR LAW EXCEPT PURSUANT TO RULE 144 AND ANY
            STATE EXEMPTION FROM REGISTRATION OR AN OPINION OF COUNSEL
            REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
            REGISTRATION IS NOT REQUIRED.

                                       12
<PAGE>
            4.3   RESTRICTIONS ON TRANSFER.

                  4.3.1 Transfer Restrictions. The Holder may not transfer all
or part of this Warrant without the prior written consent of the Company, which
consent may be withheld at the sole and absolute discretion of the Company;
except (i) in the case of a Holder who is a partnership or limited liability
company, to a partner (including a limited partner) of such partnership or a
member of such limited liability company; (ii) to any parent or majority-owned
subsidiary of any Holder or parent of any Holder or any successor of any Holder
or any parent of any Holder; (iii) to (x) any taxable REIT subsidiary of Equity
Office Properties Trust, a Maryland real estate investment trust, or (y) Equity
Office Properties Management Corp., a Delaware corporation, or any one of its
subsidiaries; (iv) to the Amended and Restated Equity Office Properties
Management Corp. Trust as of September 30, 2002, of which Equity Office
Properties Management Corp. is the sole beneficiary; or (v) to any "affiliate"
of a Holder (as defined in Rule 12b-2 of the Exchange Act). If transferring a
part of this Warrant, such transfer must be in the amount of a warrant to
purchase 25,000 shares or more and must be made by surrendering this Warrant
with the assignment attached hereto as Exhibit B. The shares issuable upon
exercise of this Warrant shall be freely transferable subject to Section 4.3.2.

                  4.3.2 Compliance with Securities Laws on Transfer. Subject to
the provisions of Section 4.3.1, this Warrant and the Shares issuable upon
exercise of this Warrant may not be transferred or assigned in whole or in part
without compliance with applicable federal and state securities laws by the
transferor and the transferee (including, without limitation, the delivery of
investment representation letters and legal opinions reasonably satisfactory to
the Company and the Company's transfer agent, as reasonably requested by the
Company and the Company's transfer agent, it being understood and agreed that no
legal opinion shall be required for transfers of the Warrant to the entities set
forth in Section 4.3.1(i) through (v), inclusive.

      5.    GENERAL PROVISIONS.

            5.1   NOTICES. Any and all notices required or permitted to be given
to a party pursuant to the provisions of this Warrant will be in writing and
will be effective and deemed to provide such party sufficient notice under this
Warrant on the earliest of the following: (i) at the time of personal delivery,
if delivery is in person; (ii) at the time of transmission by facsimile,
addressed to the other party at its facsimile number specified herein (or
hereafter modified by subsequent notice to the parties hereto), with
confirmation of receipt made by both telephone and printed confirmation sheet
verifying successful transmission of the facsimile; (iii) one (1) business day
after deposit with an express overnight courier for United States deliveries, or
two (2) business days after such deposit for deliveries outside of the United
States, with proof of delivery from the courier requested; or (iv) three (3)
business days after deposit in the United States mail by certified mail (return
receipt requested) for United States deliveries.

            All notices for delivery outside the United States will be sent by
facsimile or by express courier. All notices not delivered personally or by
facsimile will be sent with postage and/or other charges prepaid and properly
addressed to the party to be notified at the address or facsimile number set
forth below the signature lines to this Warrant, or at such other address or
facsimile number as such other party may designate by one of the indicated means
of notice

                                       13
<PAGE>
herein to the other parties hereto. Notices to the Company will be marked
"Attention: General Counsel". Notices by facsimile shall be machine verified as
received.

            5.2   ATTORNEYS FEES. In the event of any dispute between the
parties concerning the terms and provisions of this Warrant, the party
prevailing in such dispute shall be entitled to collect from the other party all
costs incurred in such dispute, including reasonable attorneys' fees.

            5.3   GOVERNING LAW. This Warrant will be governed by and construed
in accordance with the laws of the State of California, without giving effect to
that body of laws pertaining to conflict of laws.

            5.4   FURTHER ASSURANCES. The parties agree to execute such further
documents and instruments and to take such further actions as may be reasonably
necessary to carry out the purposes and intent of this Warrant.

            5.5   TITLES AND HEADINGS. The titles, captions and headings of this
Warrant are included for ease of reference only and will be disregarded in
interpreting or construing this Warrant. Unless otherwise specifically stated,
all references herein to "sections" and "exhibits" will mean "sections" and
"exhibits" to this Warrant.

            5.6   SEVERABILITY. If any provision of this Warrant is determined
by any court or arbitrator of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, such provision will be enforced to the maximum
extent possible given the intent of the parties hereto. If such clause or
provision cannot be so enforced, such provision shall be stricken from this
Warrant and the remainder of this Warrant shall be enforced as if such invalid,
illegal or unenforceable clause or provision had (to the extent not enforceable)
never been contained in this Warrant. Notwithstanding the forgoing, if the value
of this Warrant based upon the substantial benefit of the bargain for any party
is materially impaired, which determination as made by the presiding court or
arbitrator of competent jurisdiction shall be binding, then both parties agree
to substitute such provision(s) through good faith negotiations.

            5.7   COUNTERPARTS. This Warrant may be executed in any number of
counterparts, each of which when so executed and delivered will be deemed an
original, and all of which together shall constitute one and the same agreement.

            5.8   FACSIMILE SIGNATURES. This Warrant may be executed and
delivered by facsimile and upon such delivery the facsimile signature will be
deemed to have the same effect as if the original signature had been delivered
to the other party. The original signature copy shall be delivered to the other
party by express overnight delivery. The failure to deliver the original
signature copy and/or the nonreceipt of the original signature copy shall have
no effect upon the binding and enforceable nature of this Warrant.

            5.9   AMENDMENT AND WAIVERS. This Warrant may be amended only by a
written agreement executed by each of the parties hereto. No amendment of or
waiver of, or modification of any obligation under this Warrant will be
enforceable unless set forth in a writing signed by the party against which
enforcement is sought. Any amendment effected in accordance with this section
will be binding upon all parties hereto and each of their respective

                                       14
<PAGE>
successors and assigns. No delay or failure to require performance of any
provision of this Warrant shall constitute a waiver of that provision as to that
or any other instance. No waiver granted under this Warrant as to any one
provision herein shall constitute a subsequent waiver of such provision or of
any other provision herein, nor shall it constitute the waiver of any
performance other than the actual performance specifically waived.

            5.10  ENTIRE AGREEMENT. This Warrant and the documents referred to
herein constitute the entire agreement and understanding of the parties with
respect to the subject matter of this Warrant, and supersede all prior
understandings and agreements, whether oral or written, between or among the
parties hereto with respect to the specific subject matter hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>
                                                                       NO. CSW-3

<TABLE>
<S>                                             <C>
WARRANT HOLDER:                                 COMPANY:

                                                /s/ Donna Dubinsky
                                               -----------------------------------------
EOP-INDUSTRIAL PORTFOLIO, L.L.C.,               HANDSPRING, INC.,
a Delaware limited liability company            a Delaware corporation

By:       EOP Operating Limited Partnership,             By:  /s/ William Slakey
          a Delaware limited partnership,                Name:    William Slakey
          its sole member                                Title:   VP, CFO

          By: Equity Office Properties Trust
          a Maryland real estate
          investment trust
          its general partner

            By: /s/ Bruce H. Burkard
            Name:  Bruce H. Burkard
            Title: Vice President - Leasing

Address:  c/o Equity Office Properties Trust    Address: 189 Bernardo Avenue

Two North Riverside Plaza, Suite 2100                    Mountain View, CA  94043

Chicago, IL  60606-2601

Attention to:  General Counsel                  Attention to: David Pine, General Counsel

Facsimile:     (312) 559-5021                   Facsimile:    (650) 230-5477
</TABLE>

              [SIGNATURE PAGE TO WARRANT TO PURCHASE COMMON STOCK]
<PAGE>
                                                                       NO. CSW-3

                                   EXHIBIT A

                               NOTICE OF EXERCISE

                  (TO BE SIGNED ONLY UPON EXERCISE OF WARRANT)

      1.    The undersigned hereby elects to purchase ____________________
shares of the ____________________ Common Stock (the "SHARES") of Handspring,
Inc. a Delaware corporation, pursuant to the terms of the attached Warrant to
Purchase Common Stock with an Issue Date of ____________________ (the
"WARRANT"), as follows:

      (Initial applicable method:)

      ____  a.    The undersigned tenders herewith payment of the total purchase
                  price of such Shares in full, pursuant to a check or wire
                  transfer, in the amount of $__________.

      ____  b.    This exercise _____ is _____ is not contingent upon the
                  closing of the Acquisition or other event specified in the
                  Company Notice to Holder in accordance with Section 1.5 of the
                  Warrant received by Holder on ________________ and _____ is
                  _____ is not contingent upon a sale price or fair market value
                  for the Company's Common Stock in the Acquisition or other
                  event of no less than the lesser of (a) $__________ per share
                  or (b) the per share price set forth in the Company Notice.

      ____  c.    The undersigned tenders herewith payment of the purchase price
                  of such Shares by cancellation of indebtedness of the Company
                  to the undersigned in the amount of $________.

      ____  d.    The undersigned hereby elects to exercise the Warrant by the
                  net exercise election pursuant to Section 1.2 of the Warrant.
                  This election is exercised with respect to __________ shares
                  of Common Stock covered by the Warrant resulting in a net
                  total of __________ Shares being issued to the undersigned.

      ____  e.    By a combination of the foregoing as indicated above or on the
                  attached sheet.

      2.    Please issue a certificate or certificates representing said Shares
in the name of the undersigned. The undersigned represents that it is acquiring
the shares solely for its own account and not as a nominee for any other party
and not with a view toward the resale or distribution
<PAGE>
thereof except in compliance with applicable securities laws and hereby repeats
the representations and warranties of the undersigned that are set forth in
Section 4.1 of the attached Warrant.

                                             ___________________________________
                                             (Printed Name of Holder)

                                             ___________________________________
                                             ___________________________________
                                             ___________________________________
                                             Address:

                                             ___________________________________
                                             (Signature of Holder)

                                       18
<PAGE>
                                                                       NO. CSW-3

                                   EXHIBIT B

                                   ASSIGNMENT
                      (TO BE SIGNED ONLY UPON ASSIGNMENT)

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ______________________________ the rights to purchase ______________ shares
of Common Stock evidenced by the within Warrant, and appoints
______________________ to transfer the same on the books of ___________________
with the full power of substitution in the premises.

Date: _____________________________

NOTE: The signature of Holder must conform in all respects to the name of Holder
as specified on the face of the Warrant without alteration, enlargement or any
change whatsoever.<PAGE>

                                                                    EXHIBIT 10.1

                            CARDIOGENESIS CORPORATION
                                STOCK OPTION PLAN

                            (AS RESTATED, JUNE 2003)

         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 Employees and
Consultants; and

                  -        to promote the success of the Company's business.

         Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant. Stock Purchase Rights may also be granted under the Plan.

         2.       Definitions. 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 or Stock Purchase Rights
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 Sec. 4 of Plan.

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

                  (g)      "Company" means CardioGenesis Corporation, a
California corporation formerly known as Eclipse Surgical Technologies, Inc.

                  (h)      "Consultant" means any person, including an advisor,
engaged by the Company or a Parent or Subsidiary to render services and who is
compensated for such services. The term "Consultant" shall not include Directors
who are paid only a director's fee by the Company or who are not compensated by
the Company for their services as Directors.

                  (i)      "Continuous Status as an Employee or Consultant"
means that the employment or consulting relationship with the Company, any
Parent, or Subsidiary, is not interrupted or terminated. Continuous Status as an
Employee or Consultant shall not be considered interrupted in the case of (i)
any leave of absence approved by the Company or (ii) transfers between locations
of the Company or between the Company, its Parent, any Subsidiary, or any
successor. A leave of absence approved by the Company shall include sick leave,
military leave, or any other personal leave approved by an authorized
representative of the Company. For purposes of Incentive Stock Options, no such
leave may exceed ninety days, unless reemployment upon expiration of such leave
is guaranteed by statute or contract. If reemployment upon expiration of a leave
of absence approved by the Company is not so guaranteed, on the 181st day of
such leave any Incentive Stock Option held by the Optionee shall cease to be
treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option.

<PAGE>

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

                  (k)      "Disability" means total and permanent disability as
defined in Section 22(e)(3) of the Code.

                  (l)      "Employee" means any person, including Officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company.
Neither service as a Director nor payment of a director's fee by the Company
shall be sufficient to constitute "employment" by the Company.

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

                  (n)      "Fair Market Value" means, as of any date, the value
of Common Stock determined as follows:

                           (i)      If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The
Nasdaq Stock Market, its Fair Market Value shall be the closing sale 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 of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

                           (ii)     If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

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

                  (o)      "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code and the regulations promulgated thereunder.

                  (p)      "Nonstatutory Stock Option" means an Option not
intended to qualify as an Incentive Stock Option.

                  (q)      "Notice of Grant" means a written notice evidencing
certain terms and conditions of an individual Option or Stock Purchase Right
grant. The Notice of Grant is part of the Option Agreement.

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

                  (s)      "Option" means a stock option granted pursuant to the
Plan.

                  (t)      "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.

                  (u)      "Option Exchange Program" means a program whereby
Outstanding options are surrendered in exchange for options with a lower
exercise price.

                  (v)      "Optioned Stock" means the Common Stock subject to an
Option or Stock Purchase Right.

                  (w)      "Optionee" means an Employee or Consultant who holds
an outstanding Option or Stock Purchase Right.

                                       2

<PAGE>

                  (x)      "Parent" means a "parent corporation", whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (y)      "Plan" means this Stock Option Plan.

                  (z)      "Restricted Stock" means shares of Common Stock
acquired pursuant to a grant of Stock Purchase Rights under Section 11 below.

                  (aa)     "Restricted Stock Purchase Agreement" means a written
agreement between the Company and the Optionee evidencing the terms and
restrictions applying to stock purchased under a Stock Purchase Right. The
Restricted Stock Purchase Agreement is subject to the terms and conditions of
the Plan and the Notice of Grant.

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

                  (cc)     "Section 16(b)" means Section 16(b) of the Securities
Exchange Act of 1934, as amended.

                  (dd)     "Share" means a share of the Common Stock, as
adjusted in accordance with Section 13 of the Plan.

                  (ee)     "Stock Purchase Right" means the right to purchase
Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice of
Grant.

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

         3.       Stock Subject to the Plan. Subject to the provisions of
Section 13 of the Plan, the maximum aggregate number of Shares which may be
optioned and sold under the Plan is 8,600,000 Shares. The Shares may be
authorized, but unissued, or reacquired Common Stock. The Plan is the successor
to the Company's Dual Stock Option Plan (the "Prior Plan"). Options granted
under the Prior Plan continue to be subject to the terms and conditions of the
Prior Plan and not the Plan unless otherwise agreed on a case by case basis by
holders of such options. No further options may be granted under the Prior Plan.
The number of Options outstanding under the Prior Plan and the number of Shares
issued upon exercise of options granted under the Prior Plan reduces the number
of Shares which may be optioned and sold under the Plan. If an option granted
under the Prior Plan expires without being exercised, then the number of Shares
which may be optioned and sold under the Plan increases by such number.

                  If an Option or Stock Purchase Right 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); provided, however, that Shares that
have actually been issued under the Plan, whether upon exercise of an Option or
Right, shall not be returned to the Plan and shall not become available for
future distribution, under the Plan, except that if Shares of Restricted Stock
are repurchased by the Company at their original purchase price, and the
original purchaser of such Shares did not receive any benefits of ownership of
such Shares, such Shares shall become available for future grant under the Plan.
For purposes of the preceding sentence, voting rights shall not be considered a
benefit of Share ownership.

         4.       Administration of the Plan.

                  (a)      Procedure.

                           (i)      Multiple Administrative Bodies. If
permitted by Rule 16b-3, the Plan may be administered by different bodies with
respect to Directors, Officers who are not Directors, and Employees who are
neither Directors nor Officers.

                                       3

<PAGE>

                           (ii)     Administration With Respect to Directors and
Officers Subject to Section l6(b). With respect to Option or Stock Purchase
Right grants made to Employees who are also Officers or Directors subject to
Section 16(b) of the Exchange Act, the Plan shall be administered by (A) the
Board, if the Board may administer the Plan in a manner complying with the rules
under Rule 16b-3 relating to the disinterested administration of employee
benefit plans under which Section 16(b) exempt discretionary grants and awards
of equity securities are to be made, or (B) a committee designated by the Board
to administer the Plan, which committee shall be constituted to comply with the
rules under Rule 16b-3 relating to the disinterested administration of employee
benefit plans under which Section 16(b) exempt discretionary grants and awards
of equity securities are to be made. Once appointed, such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board. From time to time 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 the rules under Rule 16b-3 relating to the disinterested
administration of employee benefit plans under which Section 16(b) exempt
discretionary grants and awards of equity securities are to be made.

                           (iii)    Administration With Respect to Other
Persons. With respect to Option or Stock Purchase Right grants made to Employees
or Consultants who are neither Directors nor Officers of the Company, the Plan
shall be administered by (A) the Board or (B) 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 including those contained in Section 15(b) 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(n) of the Plan.

                           (ii)     to select the Consultants and Employees to
whom Options and Stock Purchase Rights may be granted hereunder;

                           (iii)    to determine whether and to what extent
Options and Stock Purchase Rights or any combination thereof, are granted
hereunder;

                           (iv)     to determine the number of shares of Common
Stock to be covered by each Option and Stock Purchase Right 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 or Stock Purchase Rights 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 Stock Purchase Right 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)    [deleted];

                           (viii)   to construe and interpret the terms of the
Plan and awards granted pursuant to the Plan;

                           (ix)     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;

                                       4

<PAGE>

                           (x)      to modify or amend each Option or Stock
Purchase Right (subject to Section 15(d) of the Plan), including the
discretionary authority to extend the post-termination exercisability period of
Options longer than is otherwise provided for in the Plan;

                           (xi)     to authorize any person to execute on behalf
of the Company any instrument required to effect the grant of an Option or Stock
Purchase Right previously granted by the Administrator;

                           (xii)    to institute an Option Exchange Program; and

                           (xiii)   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 or Stock Purchase
Rights.

         5.       Eligibility. Nonstatutory Stock Options and Stock Purchase
Rights may be granted to Employees and Consultants. Incentive Stock Options may
be granted only to Employees. If otherwise eligible, an Employee or Consultant
who has been granted an Option or Stock Purchase Right may be granted additional
Options or Stock Purchase Rights.

         6.       Limitations.

                  (a)      Each Option shall be designated in the written option
agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designation, to the extent that the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted. If
an Option is granted hereunder that is part Incentive Stock Option and part
Nonstatutory Stock Option due to becoming first exercisable in any calendar year
in excess of $100,000, the Incentive Stock Option portion of such Option shall
become exercisable first an such calendar year, and the Nonstatutory Stock
Option portion shall commence becoming exercisable once the $100,000 limit has
been reached.

                  (b)      Neither the Plan nor any Option or Stock Purchase
Right 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 Optionees right or the Company's right to
terminate such employment or consulting relationship at any time, with or
without cause.

                  (c)      The following limitations shall apply to grants of
Options to Employees:

                           (i)      No Employee shall be granted, in any fiscal
year of the Company, Options to purchase more than 300,000 Shares.

                           (ii)     In connection with his or her initial
employment, an Employee may be granted Options to purchase up to an additional
600,000 Shares which shall not count against the limit set forth in subsection
(i) above.

                           (iii)    The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 13.

                           (iv)     If an Option is cancelled in the same fiscal
year of the Company in which it was granted (other than in connection with a
transaction described in Section 13), the cancelled Option will be counted
against the limits set forth in Subsections (i) and (ii) above.

                                       5

<PAGE>

         7.       Term of Plan. The amended and restated Plan shall begin to be
in effect on April 24, 1996, and shall continue in effect until March 31, 2006
unless terminated earlier under Section 15 of the Plan.

         8.       Term of Option. The term of each Option shall be stated in the
Notice of Grant; provided, however, that in the case of an Incentive Stock
Option, the term shall be ten (10) years from the date of grant or such shorter
term as may be provided in the Notice of Grant. Moreover, in the case of an
Incentive Stock Option granted to an Optionee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent(10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the term of the Incentive Stock Option shall be five (5) years from
the date of grant or such shorter term as may be provided in the Notice of
Grant.

         (9)      Option Exercise Price and Consideration.

                  (d)      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, subject to the following:

                           (i)      In the case of an Incentive Stock Option:

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

                                    (B)     granted to any Employee other than
an Employee described in paragraph (A) immediately above, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

                           (ii)     In the case of a Nonstatutory Stock Option,
the per Share exercise price shall be determined by the Administrator, but in no
case the per Share exercise price shall be no less than 100% of the Fair Market
Value per Share on the date of grant.

                  (e)      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. In so doing, the Administrator may
specify that an Option may not be exercised until the completion of a service
period.

                  (f)      Form of Consideration. The Administrator shall
determine the acceptable form of consideration for exercising an Option,
including the method of payment. In the case of an Incentive Stock Option, the
Administrator shall determine the acceptable form of consideration at the time
of grant. 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;

                                       6

<PAGE>

                           (vi)     a reduction in the amount of any Company
liability to the Optionee, including any liability attributable to the
Optionee's participation in any Company-sponsored deferred compensation program
or arrangement;

                           (vii)    any combination, of the foregoing methods of
payment; or

                           (viii)   such other consideration and method of
payment for the issuance of Shares to the extent permitted by Applicable Laws.

         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 13 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 or Consulting Relationship.
Upon termination of an Optionee's Continuous Status as an Employee or
Consultant, other than upon the Optionee's death or Disability, the Optionee may
exercise his or her Option within such period of time as is specified in the
Notice of Grant to the extent that he or she is entitled to exercise it on the
date of termination (but in no event later than the expiration of the term of
such Option as set forth in the Notice of Grant). In the absence of a specified
time in the Notice of Grant, the Option shall remain exercisable for three (3)
months following the Optionee's termination. In the case of an Incentive Stock
Option, such period of time for exercise shall not exceed three (3) months from
the date of termination. If, on the date of termination, the Optionee is not
entitled to exercise his or her entire Option, the Shares covered by the
unexercisable portion of the Option shall revert to the Plan. If, after
termination, the Optionee does not exercise his or her Option within the time
specified by the Administrator, 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 Continuous Status as an Employee or Consultant shall
not automatically terminate solely as a result of such change in status. In such
event, an Incentive Stock Option held by the Optionee shall cease to be treated
as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option three months and one day following such change of
status.

                  (c)      Disability of Optionee. Upon termination of an
Optionee's Continuous Status as an employee or Consultant as a result of the
Optionee's Disability, the Optionee may exercise his or her Option at any time
within twelve (12) months from the date of termination, but only to the extent
that the Optionee is entitled to exercise it on the date of termination (and in
no event later than the expiration of the term of the Option as set forth in the
Notice of Grant). If, on the date of termination, the Optionee is not entitled
to exercise his or her entire

                                       7

<PAGE>

Option, the Shares covered by the unexercisable portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option 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. Upon the death of an Optionee, the
Option may be exercised at any time within twelve (12) months following the date
of death (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant), by the Optionee's estate or by a person
who acquires the right to exercise the Option by bequest or inheritance, but
only to the extent that the Optionee would have been entitled to exercise the
Option on the date of death. If, at the time of death, the Optionee is not
entitled to exercise his or her entire Option, the Shares covered by the
unexercisable portion of the Option shall immediately revert to the Plan. If the
Optionee's estate or the person who acquires the right to exercise the Option by
bequest or inheritance does not exercise the Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

                  (e)      Buyout Provisions. The Administrator may at any time
offer to buy out for a payment in cash or Shares, an Option previously granted
based on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

                  (f)      Rule 16b-3. Options granted to individuals subject to
Section 16 of the Exchange Act ("Insiders") must comply with the applicable
provisions of Rule 16b-3 and shall contain such additional conditions or
restrictions as may be requited thereunder to qualify for the maximum exemption
from Section 16 of the Exchange Act with respect to Plan transactions.

         11.      Stock Purchase Rights.

                  (a)      Rights to Purchase. Stock Purchase Rights may be
issued either alone, in addition to, or in tandem with other awards granted
under the Plan and/or cash awards made outside of the Plan. After the
Administrator determines that it will offer Stock Purchase Rights under the
Plan, it shall advise the offeree in writing, by means of a Notice of Grant, of
the terms, conditions and restrictions related to the offer, including the
number of Shares that the offeree shall be entitled to purchase, the price to be
paid, and the time within which the offeree must accept such offer, which shall
in no event exceed six (6) months from the date upon which the Administrator
made the determination to grant the Stock Purchase Right. The offer shall be
accepted by execution of a Restricted Stock Purchase Agreement in the form
determined by the Administrator.

                  (b)      Repurchase Option. Unless the Administrator
determines otherwise, the Restricted Stock Purchase Agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary
termination of the purchaser's employment with the Company for any reason
(including death or Disability). The purchase price for Shares repurchased
pursuant to the Restricted Stock purchase agreement shall be the original price
paid by the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company. The repurchase option shall lapse at a rate determined
by the Administrator.

                  (c)      Rule 16b-3. Stock Purchase Rights granted to
Insiders, and Shares purchased by Insiders in connection with Stock Purchase
Rights, shall be subject to any restrictions applicable thereto in compliance
with Rule 16b-3. An Insider may only purchase Shares pursuant to the grant of a
Stock Purchase Right, and may only sell Shares purchased pursuant to the grant
of a Stock Purchase Right, during such time or times as are permitted by Rule
l6b-3.

                  (d)      Other Provisions. The Restricted Stock Purchase
Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole
discretion. In addition, the provisions of Restricted Stock Purchase Agreements
need not be the same with respect to each purchaser.

                  (e)      Rights as a Shareholder. Once the Stock Purchase
Right is enclosed, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 13
of the Plan.

                                       8

<PAGE>

         12.      Non-Transferability of Options and Stock Purchase Rights. An
Option or Stock Purchase Right 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.

         13.      Adjustments Upon Changes in Capitalization. Dissolution,
Merger or Asset Sale.

                  (a)      Changes in Capitalization. Subject to any required
action by the shareholders at' the Company, the number of shares of Common Stock
covered by each outstanding Option and Stock Purchase Right, and the number of
shares of Common Stock which have been authorized for issuance under the Plan
but as to which no Options or Stock Purchase Rights have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an
Option or Stock Purchase Right, as well as the price per share of Common Stock
covered by each such outstanding Option or Stock Purchase Right, 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 soy 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 or Stock Purchase Right.

                  (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 and Stock Purchase Right
shall be assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation refuses so assume or substitute for the Option or
Stock Purchase Right, the Option shall terminate, unless the Administrator shall
provide for the accelerated vesting of Options outstanding as such time. If an
Option or Stock Purchase Right 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 or Stock Purchase Right shall be fully
exercisable for a period of fifteen (15) days from the date of such notice, and
the Option or Stock Purchase Right shall terminate upon the expiration of such
period. For the purposes of this paragraph, the Option or Stock Purchase Right
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 or Stock Purchase Right 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 or its Parent,
the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option or Stock
Purchase Right, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger or sale of assets.

         14.      Date of Grant. The date of grant of an Option or Stock
Purchase Right shall be, for all purposes, the date on which the Administrator
makes the determination granting such Option or Stock Purchase Right, or such

                                       9

<PAGE>

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.

         15.      Amendment and Termination of the Plan; Shareholder Approval.

                  (a)      Amendment and Termination. The Board may at any time
amend, alter, suspend or terminate the Plan.

                  (b)      Shareholder Approval. The Company shall obtain
shareholder approval of any Plan amendment to the extent necessary and desirable
to comply with Rule 16b-3 or with Section 422 of the Code (or any successor rule
or statute or other applicable law, rule or regulation, including the
requirements of any exchange or quotation system on which the Common Stock is
listed or quoted). Such shareholder approval, if required, shall be obtained in
such a manner and to such a degree as is required by the applicable law, rule or
regulation.

                  (c)      Shareholder Approval Required at a Shareholder
Meeting. Furthermore, the approval of a majority of the shares present and
entitled to vote at a duly convened meeting of shareholders shall be required to
authorize: (1) the grant of any stock option, including a stock appreciation
right, with an exercise price that is less than 100% of the fair market value of
the underlying stock on the date of grant; or (2) the reduction of the exercise
price of any stock option, including a stock appreciation right, outstanding or
to be granted in the future; the cancellation and re-grant of options at a lower
exercise price (including entering into any "6 month and 1 day" cancellation and
re-grant scheme), whether or not the cancelled options are put back into the
available pool for grant; the replacement of underwater options with restricted
stock in an exchange, buy-back or other scheme; or replace any options with new
options having a lower exercise price or accelerated vesting schedule in an
exchange, buy-back or other scheme. This Section 15(c) may not be further
amended or repealed without the affirmative vote of the holders of a majority of
the shares present and entitled to vote at a duly convened meeting of
shareholders.

                  (d)      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 or Stock Purchase Right unless the exercise of such
Option or Stock Purchase Right 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 or Stock Purchase Right, the Company may require the
person exercising such Option or Stock Purchase Right 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.

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

                  (b)      Grants Exceeding Allotted Shares. If the Optioned
Stock covered by an Option or Stock Purchase Right exceeds, as of the date of
grant, the number of Shares which may be issued under the Plan without
additional shareholder approval, such Option or Stock Purchase Right shall be
void with respect to such excess Optioned Stock, unless shareholder approval of
an amendment sufficiently increasing the number of Shares subject to the Plan is
timely obtained in accordance with Section 15(b) of the Plan.

                                       10

<PAGE>

         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.

                                       11

<PAGE>

                                    Exhibit A
                            CARDIOGENESIS CORPORATION
                                STOCK OPTION PLAN
                                 EXERCISE NOTICE

         1.       Exercise of Option. Effective as of today, _______________,
____, the undersigned ("Purchaser") hereby elects to purchase ___________ shares
(the "Shares") of the Common Stock of CardioGenesis Corporation (the "Company")
under and pursuant to the Stock Option Plan, as amended, (the "Plan") and the
Stock Option Agreement incorporated into the Notice of Grant between the Company
and Purchaser with a grant date of ____________, ____ (collectively the "Option
Agreement"). The purchase price for the Shares shall be $____ per share, as
required by the Option Agreement, for a total of $__________.

         2.       Delivery of Payment. Purchaser herewith delivers to the
Company the full purchase price for the Shares, or has entered into an agreement
for a cashless exercise of the Shares, with delivery of payment to the Company
to occur prior to Purchaser's receipt of remaining shares or proceeds.

         3.       Representations of Purchaser. Purchaser acknowledges that
Purchaser has received, read and understood the Plan and the Option Agreement
and agrees to abide by and be bound by their terms and conditions.

         4.       Rights as Shareholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
A share certificate for the number of Shares so acquired shall be issued to the
Optionee as soon as practicable after exercise of the Option. No adjustment will
be made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 13 of the
Plan.

         5.       Tax Consultation. Purchaser understands that Purchaser may
suffer adverse tax consequences as a result of Purchaser's purchase or
disposition of the Shares. Purchaser represents that Purchaser has consulted
with any tax consultants Purchaser deems advisable in connection with the
purchase or disposition of the Shares and that Purchaser is not relying on the
Company for any tax advice.

         6.       Entire Agreement, Governing Law. The Plan and Option Agreement
are incorporated herein by reference. This Exercise Notice, the Plan, and the
Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's or the Company's
Interests except by means of a writing signed by the Company and Purchaser.

This Exercise Notice is governed by California law except for that body of law
pertaining to conflict of laws,

Submitted by:                               Accepted by:

PURCHASER:                                  CARDIOGENESIS CORPORATION

____________________________________        ____________________________________
Signature                                   By

____________________________________        ____________________________________
Print Name                                  Title

                                       12

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