Document:

EX-4.1

 

Exhibit 4.1

FIRST AMENDMENT TO INDENTURE

          This
First Amendment to Indenture (this “Amendment”)
dated as of October 24, 2006 is
executed and delivered by Centerplate, Inc. (the “Company”), a Delaware corporation
formerly known as Volume Services America Holdings, Inc., and The Bank of New York, a New York
banking corporation, as trustee (the “Trustee”) under the Indenture dated as of December
10, 2003 by and among the Company, the Trustee and the subsidiaries of the Company listed on the
signature pages thereto (the “Indenture”).

          WHEREAS, the Indenture governs the form and terms of the Company’s 13.5% Subordinated Notes
due 2013 (the “Notes”); and

          WHEREAS, the Company and the Trustee wish to make certain amendments to the Indenture pursuant
to Section 9.01 thereof in connection with the cancellation of the global certificates representing
the Notes and the authentication and delivery of replacement certificates therefor in accordance
with the Company’s instructions set forth in the Authentication and Delivery Order to the Trustee
dated as of the date hereof.

          NOW THEREFORE, the Company and the Trustee hereby agree to amend the Indenture in accordance
with Section 9.01 thereof as follows:

	 	1.	 	A new definition is added to Section 1.01 in appropriate alphabetical order as
follows:
	 
	 	 	 	“Registered Holder’ shall mean the Person in whose name the Global Securities are
registered, which initially shall be The Bank of New York or its nominee, as custodian for
the beneficial owners of the Notes.”
	 
	 	2.	 	The third paragraph of Section 2.02(b) is hereby deleted and replaced in its entirety
with the following:
	 
	 	 	 	“Members of, or participants in, the Depositary (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Security held on their behalf by the
Registered Holder, the Depositary or the Trustee as Securities Custodian or under such
Global Security, and the Registered Holder may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner of such Global Security for
all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Registered Holder or
the Depositary or impair, as between the Depositary and its Agent Members, the operation of
customary practices of such Depositary governing the exercise of the rights of a holder of
a beneficial interest in any Global Security.”
	 
	 	3.	 	Section 2.02(c) is hereby deleted and replaced in its entirety with the following:

     “(c) Global Securities Legend. Each Global Security shall bear the following
legend (the “Global Securities Legend”) or such other legend as may be required by the
Registered Holder or the Depositary from time to time:

 

 

 - 2 -

	 	 	 	“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE REGISTERED
HOLDER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF THE REGISTERED HOLDER OR SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE REGISTERED HOLDER, ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED HOLDER HAS AN INTEREST HEREIN.
	 
	 	 	 	TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART,
TO NOMINEES OF THE REGISTERED HOLDER OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.”
	 
	 	 	 	In addition, the Securities may have notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company or any Guarantor is subject, if any,
or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company).”
	 
	 	4.	 	Other than as amended hereby the Indenture shall remain unchanged and in full force
and effect.
	 
	 	5.	 	The Trustee makes no representation as to the validity or sufficiency of this
Amendment. The recitals and statements herein are deemed to be those of the Company, not
of the Trustee.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	CENTERPLATE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Rina E. Teran	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	  Name:  Rina E. Teran	 	 
	 

	 	 	 	  Title:    Associate
General Counsel and 
               Corporate Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Luis Perez	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	  Name:  Luis
Perez	 	 
	 

	 	 	 	  Title:    Assistant
Vice President<PAGE>
                                                                    Exhibit 10.1

                       PINE PHOTONICS COMMUNICATIONS, INC.

                                 2000 STOCK PLAN

                            ADOPTED ON JULY 18, 2000

<PAGE>

                                TABLE OF CONTENTS

                                                                        Page No.
                                                                        --------

SECTION 1. ESTABLISHMENT AND PURPOSE........................................1

SECTION 2. ADMINISTRATION...................................................1

         (a)      Committees of the Board of Directors......................1
         (b)      Authority of the Board of Directors.......................1

SECTION 3. ELIGIBILITY......................................................1

         (a)      General Rule..............................................1
         (b)      Ten-Percent Stockholders..................................1

SECTION 4. STOCK SUBJECT TO PLAN............................................2

         (a)      Basic Limitation..........................................2
         (b)      Additional Shares.........................................2

SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES..........................2

         (a)      Stock Purchase Agreement..................................2
         (b)      Duration of Offers and Nontransferability of Rights.......2
         (c)      Purchase Price............................................2
         (d)      Withholding Taxes.........................................2
         (e)      Restrictions On Transfer of Shares and Minimum Vesting....3
         (f)      Accelerated Vesting.......................................3

SECTION 6. TERMS AND CONDITIONS OF OPTIONS..................................3

         (a)      Stock Option Agreement....................................3
         (b)      Number of Shares..........................................3
         (c)      Exercise Price............................................3
         (d)      Withholding Taxes.........................................3
         (e)      Exercisability............................................4
         (f)      Accelerated Exercisability................................4
         (g)      Basic Term................................................4
         (h)      Nontransferability........................................4
         (i)      Termination of Service (Except by Death)..................4
         (j)      Leaves of Absence.........................................5
         (k)      Death of Optionee.........................................5
         (l)      No Rights as a Stockholder................................5
         (m)      Modification, Extension and Assumption of Options.........5
         (n)      Restrictions On Transfer of Shares and Minimum Vesting....5
         (o)      Accelerated Vesting.......................................6

                                       i

<PAGE>

SECTION 7. PAYMENT FOR SHARES...............................................6

         (a)      General Rule..............................................6
         (b)      Surrender of Stock........................................6
         (c)      Services Rendered.........................................6
         (d)      Promissory Note...........................................6
         (e)      Exercise/sale.............................................7
         (f)      Exercise/pledge...........................................7

SECTION 8. ADJUSTMENT OF SHARES.............................................7

         (a)      General...................................................7
         (b)      Mergers and Consolidations................................7
         (c)      Reservation of Rights.....................................8

SECTION 9. SECURITIES LAW REQUIREMENTS......................................8

         (a)      General...................................................8
         (b)      Financial Reports.........................................8

SECTION 10. NO RETENTION RIGHTS.............................................8

SECTION 11. DURATION AND AMENDMENTS.........................................8

         (a)      Term of the Plan..........................................8
         (b)      Right to Amend or Terminate the Plan......................8
         (c)      Effect of Amendment or Termination........................9

SECTION 12. DEFINITIONS.....................................................9

SECTION 13. EXECUTION......................................................11

                                       ii

<PAGE>

               PINE PHOTONICS COMMUNICATIONS, INC. 2000 STOCK PLAN

SECTION 1. ESTABLISHMENT AND PURPOSE.

      The purpose of the Plan is to offer selected individuals an opportunity to
acquire a  proprietary  interest in the success of the  Company,  or to increase
such interest,  by purchasing  Shares of the Company's  Stock. The Plan provides
both for the  direct  award or sale of Shares  and for the grant of  Options  to
purchase Shares. Options granted under the Plan may include Nonstatutory Options
as well as ISOs intended to qualify under Section 422 of the Code.

      Capitalized terms are defined in Section 12.

SECTION 2. ADMINISTRATION.

      (a) COMMITTEES OF THE BOARD OF DIRECTORS.  The Plan may be administered by
one or more  Committees.  Each Committee shall consist of one or more members of
the Board of Directors who have been  appointed by the Board of Directors.  Each
Committee shall have such authority and be responsible for such functions as the
Board of Directors has assigned to it. If no Committee has been  appointed,  the
entire Board of Directors shall  administer the Plan. Any reference to the Board
of Directors in the Plan shall be construed as a reference to the  Committee (if
any) to whom the Board of Directors has assigned a particular function.

      (b) AUTHORITY OF THE BOARD OF DIRECTORS.  Subject to the provisions of the
Plan,  the Board of Directors  shall have full  authority and discretion to take
any actions it deems necessary or advisable for the  administration of the Plan.
All decisions, interpretations and other actions of the Board of Directors shall
be final and binding on all Purchasers,  all Optionees and all persons  deriving
their rights from a Purchaser or Optionee.

SECTION 3. ELIGIBILITY.

      (a) GENERAL RULE. Only Employees,  Outside Directors and Consultants shall
be eligible for the grant of Options or the direct award or sale of Shares. Only
Employees shall be eligible for the grant of ISOs.

      (b) TEN-PERCENT STOCKHOLDERS.  An individual who owns more than 10% of the
total combined voting power of all classes of outstanding  stock of the Company,
its Parent or any of its  Subsidiaries  shall not be eligible for designation as
an Optionee or Purchaser  unless (i) the Exercise  Price is at least 110% of the
Fair Market Value of a Share on the date of grant,  (ii) the Purchase  Price (if
any) is at least 100% of the Fair Market  Value of a Share and (iii) in the case
of an ISO, such ISO by its terms is not exercisable after the expiration of five
years  from  the  date of  grant.  For  purposes  of  this  Subsection  (b),  in
determining stock ownership, the attribution rules of Section 424(d) of the Code
shall be applied.

<PAGE>

SECTION 4. STOCK SUBJECT TO PLAN.

      (a) BASIC LIMITATION.  Shares offered under the Plan may be authorized but
unissued Shares or treasury  Shares.  The aggregate number of Shares that may be
issued  under the Plan (upon  exercise  of  Options  or other  rights to acquire
Shares) shall not exceed  2,675,000  Shares,  subject to adjustment  pursuant to
Section 8. The  number of Shares  that are  subject  to Options or other  rights
outstanding  at any time  under the Plan  shall not  exceed the number of Shares
that then remain available for issuance under the Plan. The Company,  during the
term of the  Plan,  shall at all times  reserve  and keep  available  sufficient
Shares to satisfy the requirements of the Plan.

      (b) ADDITIONAL  SHARES. In the event that any outstanding  Option or other
right for any reason expires or is canceled or otherwise terminated,  the Shares
allocable to the  unexercised  portion of such Option or other right shall again
be available for the purposes of the Plan. In the event that Shares issued under
the Plan are  reacquired by the Company  pursuant to any  forfeiture  provision,
right of  repurchase  or right of first  refusal,  such  Shares  shall  again be
available  for the  purposes of the Plan,  except that the  aggregate  number of
Shares  which may be issued upon the  exercise of ISOs shall in no event  exceed
2,675,000 Shares (subject to adjustment pursuant to Section 8).

SECTION 5. TERMS AND CONDITIONS OF AWARDS OR SALES.

      (a) STOCK PURCHASE AGREEMENT.  Each award or sale of Shares under the Plan
(other than upon exercise of an Option)  shall be evidenced by a Stock  Purchase
Agreement  between the  Purchaser  and the Company.  Such award or sale shall be
subject to all applicable terms and conditions of the Plan and may be subject to
any other  terms and  conditions  which are not  inconsistent  with the Plan and
which the Board of Directors deems appropriate for inclusion in a Stock Purchase
Agreement.  The provisions of the various Stock Purchase Agreements entered into
under the Plan need not be identical.

      (b)  DURATION  OF OFFERS AND  NONTRANSFERABILITY  OF RIGHTS.  Any right to
acquire Shares under the Plan (other than an Option) shall automatically  expire
if not exercised by the  Purchaser  within 30 days after the grant of such right
was  communicated  to the  Purchaser  by the  Company.  Such right  shall not be
transferable  and shall be exercisable  only by the Purchaser to whom such right
was granted.

      (c) PURCHASE  PRICE.  The Purchase Price of Shares to be offered under the
Plan shall not be less than 85% of the Fair Market Value of such  Shares,  and a
higher  percentage  may be required by Section  3(b).  Subject to the  preceding
sentence,  the Board of Directors shall determine the Purchase Price at its sole
discretion.  The Purchase  Price shall be payable in a form described in Section
7.

      (d)  WITHHOLDING  TAXES.  As a condition  to the  purchase of Shares,  the
Purchaser shall make such arrangements as the Board of Directors may require for
the  satisfaction  of any  federal,  state,  local or  foreign  withholding  tax
obligations that may arise in connection with such purchase.

                                       2

<PAGE>

      (e)  RESTRICTIONS  ON TRANSFER OF SHARES AND MINIMUM  VESTING.  Any Shares
awarded  or sold under the Plan  shall be  subject  to such  special  forfeiture
conditions,  rights of  repurchase,  rights of first refusal and other  transfer
restrictions as the Board of Directors may determine. Such restrictions shall be
set forth in the applicable Stock Purchase Agreement and shall apply in addition
to any restrictions that may apply to holders of Shares  generally.  In the case
of a Purchaser  who is not an officer of the Company,  an Outside  Director or a
Consultant,  any right to  repurchase  the  Purchaser's  Shares at the  original
Purchase Price (if any) upon termination of the Purchaser's  Service shall lapse
at least as rapidly as 20% per year over the five-year period  commencing on the
date of the award or sale of the Shares.  Any such right may be  exercised  only
within 90 days after the termination of the Purchaser's  Service for cash or for
cancellation of indebtedness incurred in purchasing the Shares.

      (f) ACCELERATED  VESTING.  Unless the applicable Stock Purchase  Agreement
provides otherwise, any right to repurchase a Purchaser's Shares at the original
Purchase Price (if any) upon termination of the Purchaser's  Service shall lapse
and all of such Shares  shall  become  vested if (i) the Company is subject to a
Change  in  Control  before  the  Purchaser's  Service  terminates  and (ii) the
repurchase  right is not  assigned  to the entity  that  employs  the  Purchaser
immediately after the Change in Control or to its parent or subsidiary.

SECTION 6. TERMS AND CONDITIONS OF OPTIONS.

      (a) STOCK OPTION  AGREEMENT.  Each grant of an Option under the Plan shall
be evidenced by a Stock Option  Agreement  between the Optionee and the Company.
Such Option shall be subject to all applicable  teens and conditions of the Plan
and may be subject to any other terms and conditions  which are not inconsistent
with the Plan and which the Board of Directors  deems  appropriate for inclusion
in a  Stock  Option  Agreement.  The  provisions  of the  various  Stock  Option
Agreements entered into under the Plan need not be identical.

      (b) NUMBER OF SHARES. Each Stock Option Agreement shall specify the number
of Shares that are subject to the Option and shall provide for the adjustment of
such number in accordance with Section 8. The Stock Option  Agreement shall also
specify whether the Option is an ISO or a Nonstatutory Option.

      (c) EXERCISE PRICE. Each Stock Option Agreement shall specify the Exercise
Price.  The  Exercise  Price of an ISO  shall  not be less than 100% of the Fair
Market  Value of a Share on the date of grant,  and a higher  percentage  may be
required by Section 3(b). The Exercise Price of a Nonstatutory  Option shall not
be less than 85% of the Fair Market Value of a Share on the date of grant, and a
higher percentage may be required by Section 3(b).  Subject to the preceding two
sentences,  the Exercise Price under any Option shall be determined by the Board
of Directors at its sole  discretion.  The Exercise  Price shall be payable in a
form described in Section 7.

      (d) WITHHOLDING  TAXES.  As a condition to the exercise of an Option,  the
Optionee shall make such  arrangements as the Board of Directors may require for
the  satisfaction  of any  federal,  state,  local or  foreign  withholding  tax
obligations that may arise in connection with such exercise.  The Optionee shall
also make  such  arrangements  as the Board of  Directors

                                       3

<PAGE>

may  require  for the  satisfaction  of any  federal,  state,  local or  foreign
withholding tax obligations that may arise in connection with the disposition of
Shares acquired by exercising an Option.

      (e)  EXERCISABILITY.  Each Stock Option  Agreement  shall specify the date
when all or any installment of the Option is to become exercisable.  In the case
of an Optionee  who is not an officer of the Company,  an Outside  Director or a
Consultant,  an Option shall become  exercisable  at least as rapidly as 20% per
year over the five-year period  commencing on the date of grant.  Subject to the
preceding  sentence,  the Board of Directors shall determine the  exercisability
provisions of any Stock Option Agreement at its sole discretion.

      (f)  ACCELERATED  EXERCISABILITY.   Unless  the  applicable  Stock  Option
Agreement  provides  otherwise,  all  of  an  Optionee's  Options  shall  become
exercisable  in full if (i) the Company is subject to a Change in Control before
the Optionee's Service terminates,  (ii) such Options do not remain outstanding,
(iii) such Options are not assumed by the  surviving  corporation  or its parent
and (iv) the surviving  corporation  or its parent does not  substitute  options
with substantially the same terms for such Options.

      (g) BASIC TERM. The Stock Option  Agreement  shall specify the term of the
Option. The term shall not exceed 10 years from the date of grant, and a shorter
term may be required by Section  3(b).  Subject to the preceding  sentence,  the
Board of Directors at its sole  discretion  shall determine when an Option is to
expire.

      (h)  NONTRANSFERABILITY.  No Option shall be  transferable by the Optionee
other  than  by  beneficiary  designation,  will  or the  laws  of  descent  and
distribution.  An Option may be  exercised  during the  lifetime of the Optionee
only by the Optionee or by the Optionee's guardian or legal  representative.  No
Option or interest therein may be transferred, assigned, pledged or hypothecated
by the Optionee during the Optionee's  lifetime,  whether by operation of law or
otherwise, or be made subject to execution, attachment or similar process.

      (i)  TERMINATION OF SERVICE  (EXCEPT BY DEATH).  If an Optionee's  Service
terminates for any reason other than the Optionee's  death,  then the Optionee's
Options shall expire on the earliest of the following occasions:

            (i) The expiration date determined pursuant to Subsection (g) above;

            (ii) The date three months after the  termination  of the Optionee's
      Service for any reason  other than  Disability,  or such later date as the
      Board of Directors may determine; or

            (iii) The date six months after the  termination  of the  Optionee's
      Service  by  reason  of  Disability,  or such  later  date as the Board of
      Directors may determine.

The  Optionee may  exercise  all or part of the  Optionee's  Options at any time
before the expiration of such Options under the preceding sentence,  but only to
the extent  that such  Options  had  become  exercisable  before the  Optionee's
Service  terminated (or became  exercisable as a result of the  termination) and
the underlying  Shares had vested before the Optionee's  Service

                                       4

<PAGE>

terminated  (or  vested as a result of the  termination).  The  balance  of such
Options shall lapse when the Optionee's  Service  terminates.  In the event that
the Optionee dies after the termination of the Optionee's Service but before the
expiration  of the  Optionee's  Options,  all or  part of  such  Options  may be
exercised  (prior to  expiration)  by the  executors  or  administrators  of the
Optionee's  estate or by any person who has acquired such Options  directly from
the Optionee by beneficiary designation, bequest or inheritance, but only to the
extent that such Options had become  exercisable  before the Optionee's  Service
terminated  (or  became  exercisable  as a result  of the  termination)  and the
underlying Shares had vested before the Optionee's Service terminated (or vested
as a result of the termination).

      (j) LEAVES OF ABSENCE. For purposes of Subsection (i) above, Service shall
be deemed to continue while the Optionee is on a bona fide leave of absence,  if
such leave was approved by the Company in writing and if continued  crediting of
Service for this purpose is expressly  required by the terms of such leave or by
applicable law (as determined by the Company).

      (k) DEATH OF  OPTIONEE.  If an  Optionee  dies  while the  Optionee  is in
Service,  then  the  Optionee's  Options  shall  expire  on the  earlier  of the
following dates:

            (i) The expiration date determined pursuant to Subsection (g) above;
      or

            (ii) The date 12 months after the Optionee's death.

All or part of the  Optionee's  Options may be  exercised at any time before the
expiration  of such Options  under the  preceding  sentence by the  executors or
administrators  of the Optionee's  estate or by any person who has acquired such
Options  directly  from the  Optionee  by  beneficiary  designation,  bequest or
inheritance,  but only to the extent that such  Options  had become  exercisable
before the Optionee's death or became  exercisable as a result of the death. The
balance of such Options shall lapse when the Optionee dies.

      (l) NO  RIGHTS  AS A  STOCKHOLDER.  An  Optionee,  or a  transferee  of an
Optionee,  shall  have no rights as a  stockholder  with  respect  to any Shares
covered by the Optionee's  Option until such person becomes  entitled to receive
such  Shares  by filing a notice of  exercise  and  paying  the  Exercise  Price
pursuant to the terms of such Option.

      (m)  MODIFICATION,   EXTENSION  AND  ASSUMPTION  OF  OPTIONS.  Within  the
limitations  of the Plan,  the Board of Directors  may modify,  extend or assume
outstanding  Options or may  accept  the  cancellation  of  outstanding  Options
(whether  granted by the  Company or another  issuer) in return for the grant of
new Options  for the same or a  different  number of Shares and at the same or a
different Exercise Price. The foregoing  notwithstanding,  no modification of an
Option shall, without the consent of the Optionee,  impair the Optionee's rights
or increase the Optionee's obligations under such Option.

      (n)  RESTRICTIONS  ON TRANSFER OF SHARES AND MINIMUM  VESTING.  Any Shares
issued upon  exercise of an Option shall be subject to such  special  forfeiture
conditions,  rights of  repurchase,  rights of first refusal and other  transfer
restrictions as the Board of Directors may determine. Such restrictions shall be
set forth in the applicable  Stock Option  Agreement and

                                       5

<PAGE>

shall apply in addition to any restrictions  that may apply to holders of Shares
generally.  In the case of an Optionee who is not an officer of the Company,  an
Outside Director or a Consultant:

            (i) Any right to repurchase  the  Optionee's  Shares at the original
      Exercise Price upon  termination of the Optionee's  Service shall lapse at
      least as rapidly as 20% per year over the five-year  period  commencing on
      the date of the option grant;

            (ii)  Any  such  right  may  be  exercised  only  for  cash  or  for
      cancellation of indebtedness incurred in purchasing the Shares; and

            (iii) Any such right may be exercised  only within 90 days after the
      later of (A) the termination of the Optionee's  Service or (B) the date of
      the option exercise.

      (o)  ACCELERATED  VESTING.  Unless the applicable  Stock Option  Agreement
provides otherwise, any right to repurchase an Optionee's Shares at the original
Exercise Price upon termination of the Optionee's Service shall lapse and all of
such  Shares  shall  become  vested if (i) the Company is subject to a Change in
Control before the Optionee's  Service  terminates and (ii) the repurchase right
is not assigned to the entity that employs the  Optionee  immediately  after the
Change in Control or to its parent or subsidiary.

SECTION 7. PAYMENT FOR SHARES.

      (a) GENERAL RULE.  The entire  Purchase  Price or Exercise Price of Shares
issued under the Plan shall be payable in cash or cash  equivalents  at the time
when such Shares are purchased, except as otherwise provided in this Section 7.

      (b)  SURRENDER OF STOCK.  To the extent that a Stock  Option  Agreement so
provides, all or any part of the Exercise Price may be paid by surrendering,  or
attesting to the  ownership  of,  Shares that are already owned by the Optionee.
Such Shares  shall be  surrendered  to the Company in good form for transfer and
shall be  valued  at their  Fair  Market  Value on the date  when the  Option is
exercised.  The Optionee  shall not  surrender,  or attest to the  ownership of,
Shares in payment of the  Exercise  Price if such action would cause the Company
to recognize  compensation  expense (or  additional  compensation  expense) with
respect to the Option for financial reporting purposes.

      (c) SERVICES RENDERED. At the discretion of the Board of Directors, Shares
may be awarded  under the Plan in  consideration  of  services  rendered  to the
Company, a Parent or a Subsidiary prior to the award.

      (d) PROMISSORY  NOTE. To the extent that a Stock Option Agreement or Stock
Purchase  Agreement  so  provides,  all or a portion  of the  Exercise  Price or
Purchase  Price (as the case may be) of Shares issued under the Plan may be paid
with a full-recourse  promissory note. However,  the par value of the Shares, if
newly  issued,  shall be paid in cash or cash  equivalents.  The Shares shall be
pledged as security for payment of the principal  amount of the promissory  note
and  interest  thereon.  The  interest  rate  payable  under  the  terms  of the
promissory  note shall not be less than the  minimum  rate (if any)  required to
avoid the  imputation  of  additional  interest

                                       6

<PAGE>

under the Code.  Subject to the  foregoing,  the Board of Directors (at its sole
discretion) shall specify the term, interest rate, amortization requirements (if
any) and other provisions of such note.

      (e)  EXERCISE/SALE.  To  the  extent  that a  Stock  Option  Agreement  so
provides, and if Stock is publicly traded, payment may be made all or in part by
the delivery (on a form  prescribed by the Company) of an irrevocable  direction
to a securities broker approved by the Company to sell Shares and to deliver all
or part of the sales  proceeds  to the  Company in payment of all or part of the
Exercise Price and any withholding taxes.

      (f)  EXERCISE/PLEDGE.  To the  extent  that a Stock  Option  Agreement  so
provides, and if Stock is publicly traded, payment may be made all or in part by
the delivery (on a form  prescribed by the Company) of an irrevocable  direction
to pledge Shares to a securities  broker or lender  approved by the Company,  as
security  for a loan,  and to deliver  all or part of the loan  proceeds  to the
Company  in  payment of all or part of the  Exercise  Price and any  withholding
taxes.

SECTION 8. ADJUSTMENT OF SHARES.

      (a) GENERAL.  In the event of a subdivision  of the  outstanding  Stock, a
declaration of a dividend  payable in Shares,  a declaration of an extraordinary
dividend  payable in a form other than  Shares in an amount  that has a material
effect on the Fair Market Value of the Stock, a combination or  consolidation of
the  outstanding  Stock into a lesser number of Shares,  a  recapitalization,  a
spin-off,  a reclassification  or a similar  occurrence,  the Board of Directors
shall make  appropriate  adjustments  in one or more of (i) the number of Shares
available for future  grants under Section 4, (ii) the number of Shares  covered
by each  outstanding  Option or (iii) the Exercise Price under each  outstanding
Option.

      (b) MERGERS AND  CONSOLIDATIONS.  In the event that the Company is a party
to a merger  or  consolidation,  outstanding  Options  shall be  subject  to the
agreement of merger or consolidation. Such agreement shall provide for:

            (i) The continuation of such outstanding  Options by the Company (if
      the Company is the surviving corporation);

            (ii) The assumption of the Plan and such outstanding  Options by the
      surviving corporation or its parent;

            (iii) The substitution by the surviving corporation or its parent of
      options with substantially the same terms for such outstanding Options;

            (iv) The full  exercisability  of such outstanding  Options and full
      vesting  of  the  Shares   subject  to  such  Options,   followed  by  the
      cancellation of such Options; or

            (v) The  settlement  of the full value of such  outstanding  Options
      (whether or not then exercisable) in cash or cash equivalents, followed by
      the cancellation of such Options.

                                       7

<PAGE>

      (c)  RESERVATION  OF  RIGHTS.  Except as  provided  in this  Section 8, an
Optionee or Purchaser  shall have no rights by reason of (i) any  subdivision or
consolidation of shares of stock of any class,  (ii) the payment of any dividend
or (iii) any other  increase or decrease in the number of shares of stock of any
class.  Any  issuance  by the  Company  of  shares  of  stock of any  class,  or
securities  convertible into shares of stock of any class, shall not affect, and
no  adjustment  by reason  thereof  shall be made with respect to, the number or
Exercise Price of Shares subject to an Option.  The grant of an Option  pursuant
to the Plan  shall not  affect in any way the right or power of the  Company  to
make adjustments,  reclassifications,  reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve,  liquidate,  sell
or transfer all or any part of its business or assets.

SECTION 9. SECURITIES LAW REQUIREMENTS.

      (a) GENERAL. Shares shall not be issued under the Plan unless the issuance
and  delivery of such Shares  comply  with (or are exempt  from) all  applicable
requirements of law, including (without  limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated  thereunder,  state securities
laws  and  regulations,  and the  regulations  of any  stock  exchange  or other
securities market on which the Company's securities may then be traded.

      (b) FINANCIAL  REPORTS.  The Company each year shall furnish to Optionees,
Purchasers and  stockholders  who have received Stock under the Plan its balance
sheet and income  statement,  unless such Optionees,  Purchasers or stockholders
are key Employees whose duties with the Company assure them access to equivalent
information. Such balance sheet and income statement need not be audited.

SECTION 10. NO RETENTION RIGHTS.

      Nothing in the Plan or in any right or Option granted under the Plan shall
confer upon the  Purchaser  or Optionee any right to continue in Service for any
period of specific  duration or interfere with or otherwise  restrict in any way
the rights of the Company (or any Parent or  Subsidiary  employing  or retaining
the  Purchaser or Optionee)  or of the  Purchaser or Optionee,  which rights are
hereby  expressly  reserved by each, to terminate his or her Service at any time
and for any reason, with or without cause.

SECTION 11. DURATION AND AMENDMENTS.

      (a)  TERM OF THE  PLAN.  The  Plan,  as set  forth  herein,  shall  become
effective on the date of its adoption by the Board of Directors,  subject to the
approval of the Company's stockholders.  In the event that the stockholders fail
to  approve  the Plan  within  12  months  after  its  adoption  by the Board of
Directors,  any grants of Options or sales or awards of Shares that have already
occurred shall be rescinded,  and no additional grants, sales or awards shall be
made thereafter under the Plan. The Plan shall terminate  automatically 10 years
after  its  adoption  by the Board of  Directors  and may be  terminated  on any
earlier date pursuant to Subsection (b) below.

      (b) RIGHT TO AMEND OR  TERMINATE  THE PLAN.  The  Board of  Directors  may
amend,  suspend or terminate the Plan at any time and for any reason;  provided,
however,  that

                                       8

<PAGE>

any  amendment of the Plan which  increases  the number of Shares  available for
issuance  under the Plan (except as provided in Section 8), or which  materially
changes the class of persons who are  eligible  for the grant of ISOs,  shall be
subject to the  approval of the  Company's  stockholders.  Stockholder  approval
shall not be required for any other amendment of the Plan.

      (c) EFFECT OF AMENDMENT OR TERMINATION.  No Shares shall be issued or sold
under the Plan after the termination thereof,  except upon exercise of an Option
granted prior to such termination. The termination of the Plan, or any amendment
thereof,  shall not affect any Share previously  issued or any Option previously
granted under the Plan.

SECTION 12. DEFINITIONS.

      (a) "BOARD OF DIRECTORS" shall mean the Board of Directors of the Company,
as constituted from time to time.

      (b) "CHANGE IN CONTROL" shall mean:

            (i) The  consummation  of a merger or  consolidation  of the Company
      with or into  another  entity or any other  corporate  reorganization,  if
      persons who were not stockholders of the Company immediately prior to such
      merger,  consolidation or other  reorganization own immediately after such
      merger,  consolidation or other  reorganization  50% or more of the voting
      power  of the  outstanding  securities  of each of (A) the  continuing  or
      surviving entity and (B) any direct or indirect parent corporation of such
      continuing or surviving entity; or

            (ii) The sale, transfer or other disposition of all or substantially
      all of the Company's assets.

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's  incorporation  or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

      (c) "CODE" shall mean the Internal Revenue Code of 1986, as amended.

      (d)  "COMMITTEE"  shall mean a  committee  of the Board of  Directors,  as
described in Section 2(a).

      (e) "COMPANY" shall mean Pine Photonics  Communications,  Inc., a Delaware
corporation.

      (f)  "CONSULTANT"  shall mean a person who performs bona fide services for
the Company,  a Parent or a Subsidiary  as a  consultant  or advisor,  excluding
Employees and Outside Directors.

      (g)  "DISABILITY"  shall mean that the Optionee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment.

                                       9

<PAGE>

      (h) "EMPLOYEE"  shall mean any individual who is a common-law  employee of
the Company, a Parent or a Subsidiary.

      (i)  "EXERCISE  PRICE"  shall  mean the  amount for which one Share may be
purchased upon exercise of an Option,  as specified by the Board of Directors in
the applicable Stock Option Agreement.

      (j) "FAIR MARKET  VALUE"  shall mean the fair market value of a Share,  as
determined by the Board of Directors in good faith. Such determination  shall be
conclusive and binding on all persons.

      (k) "ISO" shall mean an  employee  incentive  stock  option  described  in
Section 422(b) of the Code.

      (l)  "NONSTATUTORY  OPTION"  shall mean a stock  option not  described  in
Sections 422(b) or 423(b) of the Code.

      (m) "OPTION"  shall mean an ISO or  Nonstatutory  Option granted under the
Plan and entitling the holder to purchase Shares.

      (n) "OPTIONEE" shall mean a person who holds an Option.

      (o) "OUTSIDE  DIRECTOR"  shall mean a member of the Board of Directors who
is not an Employee.

      (p)  "PARENT"  shall mean any  corporation  (other than the Company) in an
unbroken  chain  of  corporations  ending  with  the  Company,  if  each  of the
corporations  other than the Company  owns stock  possessing  50% or more of the
total  combined  voting  power  of all  classes  of  stock  in one of the  other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

      (q) "PLAN" shall mean this Pine Photonics Communications,  Inc. 2000 Stock
Plan.

      (r) "PURCHASE PRICE" shall mean the  consideration for which one Share may
be acquired under the Plan (other than upon exercise of an Option), as specified
by the Board of Directors.

      (s)  "PURCHASER"  shall mean a person to whom the Board of  Directors  has
offered the right to acquire  Shares under the Plan (other than upon exercise of
an Option).

      (t)  "SERVICE"  shall mean  service as an  Employee,  Outside  Director or
Consultant.

      (u) "SHARE" shall mean one share of Stock,  as adjusted in accordance with
Section 8 (if applicable).

                                       10
<PAGE>

      (v) "STOCK"  shall mean the Common Stock of the Company,  with a par value
of $0.0001 per Share.

      (w) "STOCK OPTION  AGREEMENT" shall mean the agreement between the Company
and an Optionee that contains the terms,  conditions and restrictions pertaining
to the Optionee's Option.

      (x) "STOCK  PURCHASE  AGREEMENT"  shall  mean the  agreement  between  the
Company and a Purchaser  who acquires  Shares  under the Plan that  contains the
terms, conditions and restrictions pertaining to the acquisition of such Shares.

      (y)  "SUBSIDIARY"  means any  corporation  (other than the  Company) in an
unbroken  chain  of  corporations  beginning  with the  Company,  if each of the
corporations  other than the last  corporation  in the unbroken chain owns stock
possessing  50% or more of the total  combined  voting  power of all  classes of
stock in one of the other corporations in such chain. A corporation that attains
the status of a  Subsidiary  on a date after the  adoption  of the Plan shall be
considered a Subsidiary commencing as of such date.

SECTION 13. EXECUTION.

      To record the adoption of the Plan by the Board of Directors,  the Company
has caused its authorized officer to execute the same.

                                    PINE PHOTONICS COMMUNICATIONS, INC.

                                    By:
                                         ---------------------------------------

                                    Title:
                                            ------------------------------------

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]