Document:

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                                                                    Exhibit 10.1

                         REAL ESTATE PURCHASE AGREEMENT

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<S>                      <C>
Seller:                  NZ Properties, Inc., an Arizona corporation

Buyer:                   Bambifeathers LLC, a Delaware limited liability company

Escrow Agent:            Transnation Title Insurance Co.

Escrow No.:              308628

Date:                    April 19, 2002
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         1. COMPLETE AGREEMENT. This Real Estate Purchase Agreement shall
constitute an agreement ("Agreement") on the part of the Seller to sell and on
the part of the Buyer to purchase the five separate industrial buildings known
to the parties as Aspen Business Center: 2873, 2877 and 2885 N. Nevada Street,
Chandler, AZ (the "ASPEN SITE"); El Dorado Commerce Center: 973 and 1019 N.
Colorado Street, Gilbert, AZ; Grove Commons Industrial Park: 1514, and 1522 and
1536 W. Todd Drive and 7151 S. Harl, Tempe, AZ; 12th Place/Neltec Building: 1420
W. 12th Place, Tempe, AZ ("12TH PLACE SITE"); and Watkins Distribution Center:
215 E. Watkins, Phoenix, AZ ("WATKINS SITE"), and legally described on the
attached Exhibit "A-1" through "A-5", including the buildings, easements,
rights, licenses, warranties, approvals and other appurtenances (collectively,
the "PROPERTY") in accordance with the terms and conditions hereof. No other
agreements have been made between the parties except as expressly set forth
herein.

         2. SALES PRICE. The total sales price for the Property is Twenty-Two
Million Eight Hundred Fifty-Five Thousand Dollars ($22,855,000.00), payable as
follows:

                  (a) With Buyer's execution and acceptance of this Agreement,
Buyer shall deposit with Escrow Agent the sum of Two Hundred Twenty-Five
Thousand Dollars ($225,000.00), which shall be held as earnest money.

                  (b) Should Buyer desire to extend the Due Diligence Period (as
defined below) as permitted by Paragraph 8 below, Buyer shall deposit with
Escrow Agent an additional sum of Two Hundred Fifty Thousand Dollars
($250,000.00), which shall be held as earnest money.

                  (c) On or before the Closing Date (as defined below) Buyer
shall assume the loans which are existing first liens on each of the parcels
comprising the Property (the "LOANS") in the approximate aggregate amount of
Fourteen Million Eight Hundred Eighty-Two Thousand Six Hundred Seventy-Four
Dollars and 27/100 ($14,882,674.27).

                  (d) On or before the Closing Date, Buyer shall deposit with
Escrow Agent the balance of the sales price in the approximate amount of Seven
Million Seven Hundred Forty-Seven Thousand Three Hundred Twenty-Five Dollars and
73/100 ($7,747,325.73), being the aggregate purchase price of $22,855,000.00,
less the earnest money deposit and the approximate outstanding

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principal balances of the Loans on the Property as of the Closing Date. The
actual amount will be calculated as of the Closing Date based upon the then
outstanding principal balances of the Loans.

All deposits shall be in cash, wire transfer, or by cashier's check payable to
Escrow Agent. Upon the Close of Escrow, all amounts paid according to Paragraphs
2(a), 2(b) and 2(c) of this Agreement, less any closing costs and prorations
payable by Seller hereunder shall be disbursed to Seller.

         3. OPENING AND CLOSING DATE. Escrow shall be deemed open on the date
(the "OPENING DATE") when one (1) fully executed original of this Agreement,
together with the earnest money deposit required under Paragraph 2(a) above, has
been delivered to Escrow Agent. Escrow Agent shall advise Buyer and Seller in
writing of the Opening Date. The settlement of the respective obligations of
Seller and Buyer under this Agreement and the closing of the Escrow established
hereunder (the "CLOSE OF ESCROW" or "CLOSING") shall occur on the date that is
the earlier of (i) three (3) days after the date that all of the contingencies
set forth in Paragraph 33 below have been satisfied, or (ii) May 31, 2002 (the
"CLOSING DATE"), or such other date as may be mutually agreed upon by Seller and
Buyer, unless either Seller or Buyer elects to cancel this Agreement and the
Escrow as hereinafter provided.

         4. EARNEST MONEY DEPOSIT. Escrow Agent is instructed to deposit all
earnest money paid into Escrow (collectively, the "EARNEST MONEY DEPOSIT") in a
money market or other similar account, subject to immediate withdrawal, at a
federally insured bank or savings and loan institution. The Earnest Money
Deposit shall not be released to Seller prior to Close or earlier termination of
the Escrow, except as expressly provided for herein. If the Escrow closes, the
Earnest Money Deposit, together with all interest thereon shall be paid to
Seller and credited against the total sales price to be paid to Seller. If the
Earnest Money Deposit is forfeited by Buyer as provided by this Agreement, the
Earnest Money Deposit, together with any interest earned thereon, shall be paid
immediately to Seller. If Buyer elects to cancel this Agreement pursuant to
Paragraph 6, 7 or 8 below, the Earnest Money Deposit and all interest earned
thereon shall be returned to Buyer and thereafter neither Seller nor Buyer shall
have any further obligation hereunder except as expressly provided herein. Upon
the expiration of Buyer's right to cancel this Agreement under said Paragraphs,
the Earnest Money Deposit shall be nonrefundable and at Close of or the earlier
termination of Escrow, except in the event of Seller's default, shall be paid to
Seller, together with all interest earned thereon, in accordance with the terms
hereof.

         5. REVIEW MATERIALS. If not previously delivered to Buyer, within
twenty-four (24) hours following the Opening Date, Seller shall deliver to Buyer
true and correct copies of the Tenant Leases ("Tenant Leases") affecting the
Property, together with all available review materials in Seller's possession
which are identified on Exhibit "B" attached hereto (collectively, the "Review
Materials"). At Closing, the Tenant Leases shall be assigned to Buyer, and Buyer
shall thereupon be deemed to have assumed all of the covenants, agreements and
obligations of Seller under such Tenant Leases which are applicable to the
period, and required to be performed, from and after the date of Close of
Escrow. The assignment of the Tenant Leases shall include the agreement by Buyer
to indemnify Seller against and hold Seller harmless from and against any and
all cost, liability, loss, damage or expense, including, without limitation,
reasonable attorneys' fees and litigation costs, originating or relating to the
period on and after the Closing Date and arising out of Buyer's obligations
under the Tenant Leases and the agreement by Seller to indemnify Buyer against
and hold Buyer

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harmless from and against any and all cost, liability, loss, damage or expense,
including, without limitation, reasonable attorneys' fees and litigation costs,
originating or relating to the period prior to the Closing Date and arising out
of the Seller's obligations under the Leases.

         6. COMMITMENT FOR OWNER'S POLICY OF TITLE INSURANCE.

                  (a) Buyer acknowledges receipt of an ALTA commitment for title
insurance in the amount of the total sales price (the "COMMITMENT") and legible
copies of all documents referred to in the Commitment. On or before the Opening
Date, Buyer shall provide Seller and Escrow Agent written notice of the title
matters which are unacceptable to Buyer, in Buyer's sole discretion, and the
suggested remedy or issue. If Escrow Agent issues a supplemental or amended
commitment showing additional exceptions to title after the Opening Date, Buyer
shall have a period of three (3) days from the date of Buyer's receipt of such
supplemental or amended commitment in which to give notice of dissatisfaction to
Seller of any such additional exceptions to title.

                  (b) Seller shall have ten (10) days after receipt of Buyer's
notice to elect to attempt to cure and/or respond to the objections; however,
Seller shall not be obligated to cure any of the objections or to employ any
remedies suggested by Buyer to cure the same. In the event Seller delivers
written notice to Buyer within such ten (10) days that it will not cure Buyer's
objections to Buyer's satisfaction or if Seller fails to respond to Buyer's
title objection notice within this ten (10) day period, within seven (7) days
after receipt of Seller's notice electing not to cure or seventeen (17) days
after Seller's receipt of Buyer's title objection notice if Seller fails to
respond to such notice, Buyer's sole remedy shall be to either elect to (i)
cancel this Escrow by written notice to Seller and Escrow Agent or (ii) waive
its objections and proceed with the transaction contemplated herein. Buyer's
failure to timely advise Seller in writing of its election under subsections (i)
or (ii) hereinabove shall be deemed an election by Buyer to waive its objections
and proceed with the transaction contemplated herein as set forth in subsection
(ii) hereinabove. If any amended title reports are issued prior to Close of
Escrow which indicate any material change to the Property or the title thereto,
the foregoing procedures for objection and notice shall again apply; however,
Buyer shall only have five (5) days within which to review and approve or object
to any amended title report and, at Buyer's election, to either waive the new
matters and close Escrow or to terminate the Escrow in accordance with the terms
of the immediately preceding sentence.

                  (c) Buyer's failure to disapprove any exceptions or to specify
its objections to the contents of the Commitment during the title review periods
set forth above shall be deemed an acceptance of title as described in the
Commitment and a waiver of Buyer's right to cancel this Agreement according to
this Paragraph; provided, however, that Buyer shall not be required to give
Seller and Escrow Agent written notice of Buyer's dissatisfaction with any lien
or encumbrance other than the Loans which can be removed by Seller's payment of
a liquidated sum at Close of Escrow, and to the extent that the Property is
encumbered by any such lien, Seller shall cause such lien to be released from
the Property at Close of Escrow.

         7. BUYER'S RIGHT TO CANCEL.

                  (a) On or before April 30, 2002 (the "Due Diligence Period"),
Buyer shall determine whether the Property and the form and substance of the
documents set forth in Paragraph

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10 are suitable and shall otherwise inspect and investigate the Property to
Buyer's satisfaction. During the Due Diligence Period and upon reasonable prior
notice to Seller, Buyer may enter upon the Property with Buyer's representatives
and agents for the purpose of examining the Property and conducting such tests
and studies as Buyer may reasonably require, provided such activities shall not
interfere with the activities of Seller or any of the tenants under the Tenant
Leases on the Property. Provided Buyer does not cancel this Agreement, Buyer
shall have the right to enter upon the Property subsequent to the lapse of the
Due Diligence Period provided it complies with the terms and conditions of this
Paragraph 7. Buyer agrees to indemnify Seller and hold Seller harmless from any
injury, cost, liability or expense to person or property arising out of Buyer's
exercise of the rights granted by this Paragraph, and this indemnity shall
survive the Close of Escrow or the cancellation of this Agreement. Except for
the Phase II environmental testing previously approved by Seller on the Aspen
Site, the 12th Place Site and the Watkins Site, Buyer shall not dismantle,
destroy, alter or drill into any real property, surface, structure or
improvement, without first obtaining Seller's written consent. Buyer shall
restore any real property, surface, structure or improvement to the same
condition that existed prior to Buyer conducting any test or investigation
caused by Buyer or its agents and not caused by the negligence or intentional
conduct of Seller's or the tenant's managers, agents or employees. Seller agrees
to make reasonable efforts to provide during the Due Diligence Period estoppel
certificates from each tenant on the Property in form reasonably satisfactory to
the Buyer. If Buyer is not satisfied with the Property for any reason, in
Buyer's sole and complete discretion, Buyer may elect to cancel this Agreement
and the Escrow by giving Seller and Escrow Agent written notice of cancellation
on or before the expiration of such Due Diligence Period. In the event Buyer
cancels this Agreement for any reason, Buyer shall return the Review Materials
received from Seller and destroy the reports and studies concerning the Property
obtained by Buyer. Buyer further agrees that the Review Materials and the
reports and studies obtained by Buyer concerning the Property are confidential
and proprietary and shall not be disclosed, prior to Closing, to any person,
entity, tenant or governmental agency other than Buyer's engineers, employees,
attorneys, and agents in connection with the due diligence investigation of the
Property and to the lenders and brokers in connection with the assumption of the
Loans. Within one (1) business day after cancellation, Buyer shall provide
Seller with a certificate stating that Buyer has returned to Seller all copies
of the Review Materials and Buyer has not retained any copies thereof or the
information contained therein and that Buyer has destroyed the reports and
summaries Buyer received in connection with the Property and Buyer has not
retained any copies or summaries of such materials. If Buyer does not so elect
to cancel this Agreement, Buyer shall be conclusively deemed to have waived its
right to cancel this Agreement under this Paragraph and to have released Seller
from any and all responsibility and liability regarding the condition, valuation
or utility of the Property except as otherwise expressly set forth in this
Agreement. Seller agrees that, during the pendency of the Escrow, it shall
continue to reasonably operate and maintain the Property in a state of good
condition and repair.

         (b) Notwithstanding the foregoing, with regard to the Watkins Site,
Buyer's environmental consultants have recommended that Buyer conduct additional
Phase II testing on certain areas of the Watkins Site, but such additional
testing may not be completed by the April 30, 2002 Due Diligence Period
expiration. As a result, if the Phase II testing has not been completed by April
30, 2002, and Buyer has not otherwise terminated this Agreement in accordance
with subsection (a) above, Buyer may extend the Due Diligence Period as to the
Watkins Site only until May 7, 2002, and only with regard to the environmental
matters pertaining to the Watkins Site. If on or before May 7, 2002, Buyer
determines in its sole and complete discretion, that the environmental

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matters pertaining to the Watkins Site are not satisfactory to Buyer, then Buyer
may elect to cancel this Agreement as to the Watkins Site and thereafter
continue with the purchase of the remaining parcels in accordance with the terms
of this Agreement, but the sales price shall be reduced by the amount of Two
Million Five Hundred Thousand Dollars ($2,500,000). The terms of this subsection
(b) are in addition to Buyer's right to extend the Due Diligence Period set
forth in Section 8 below with regard to the assumption of the existing Loans.

         8. BUYER'S OBLIGATION TO ASSUME EXISTING LOANS. Buyer has previously
submitted applications as required by the lenders to assume the existing Loans
on the Property and obtain a release of the liability of the Seller (i.e.: a
novation) of the obligations thereunder arising upon and after the Closing Date
to the extent permitted under the Loans. Buyer agrees to pay all costs and fees
associated with the assumption of the Loans. Seller agrees to reasonably
cooperate, at Buyer's sole cost, in connection with any such applications. Buyer
shall make such determination as it desires within the Due Diligence Period
concerning the assumability of the Loans. In the event the holders of any such
Loans refuse to permit the assumption and novation of the existing Loans or
place conditions to such assumption that are unacceptable to Buyer, Buyer may
elect to cancel the Agreement by written notice to Seller and Escrow Agent on or
before the expiration of the Due Diligence Period, or Buyer may elect to waive
such contingency and consummate the transaction contemplated by this Agreement.
In the event of such waiver, Buyer shall be obligated to obtain its own
financing for the purchase of the portion of the Property which is not assumable
and hereby agrees to pay any prepayment or transfer fees imposed by the holder
of any such Loans and indemnify and hold Seller harmless therefrom. Seller has
arranged for and Buyer has engaged the services of NorthMarq Capital (James
Dumars) to facilitate the processing of the assumptions with 4 of the lenders
with whom NorthMarq has a relationship. NorthMarq has agreed to provide these
services for a fee of $10,000.00 per building, payable by Buyer. Seller
represents and warrants that neither Seller nor any of its officers or other
affiliates have received or will receive any remuneration from any source for
referring Buyer to NorthMarq. Provided Buyer has diligently pursued its
application to assume the existing Loans and the lender(s) have not approved the
application or are not prepared to record the assumption of the relevant Loan(s)
on or before the expiration of the Due Diligence Period, Buyer may elect to
extend the Due Diligence Period for an additional thirty (30) days by providing
written notice to Seller and depositing the additional Earnest Money Deposit
described in Paragraph 2(b). The extension of the Due Diligence Period shall be
solely for the purpose of obtaining the consents to the assignment and Seller's
novation as described in this Paragraph and Buyer shall be deemed to have waived
all of other conditions to the purchase other than those conditions to be
satisfied by Seller. In the event that despite Buyer's good faith, reasonable
and diligent pursuit of its application for assumption of the Loans one or more
of the existing lenders refuses to permit or is not prepared to record such
assumption and novation as described in this Paragraph by the last day of the
extended Due Diligence Period, this Agreement shall be cancelled whereupon any
and all obligations of Buyer and Seller herein shall be terminated and Escrow
Agent shall promptly refund the Earnest Money Deposit plus any interest earned
thereon to Buyer. In the event Buyer has failed to reasonably, diligently and in
good faith pursue such application, said Earnest Money Deposit shall, in the
event this Agreement is cancelled in accordance with the preceding paragraph, be
nonrefundable to Buyer and forfeited to Seller.

         9. CONDITION OF PROPERTY. Except as provided herein, Buyer agrees to
purchase the Property in an "as is" physical condition. Buyer expressly
acknowledges that Buyer has not relied on

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any warranties, promises, understandings or representations, express or implied,
made by Seller or by any agent of Seller relating to the Property other than
such warranties as may be contained in this Agreement.

         10. SELLER'S DELIVERIES AT CLOSING. On or before the Closing Date,
Seller shall deposit the following documents with Escrow Agent for delivery to
Buyer at Close of Escrow:

                  (a) A duly executed and acknowledged special warranty deed,
conveying title to the Property to Buyer subject only to those items approved by
Buyer.

                  (b) A duly executed bill of sale conveying Seller's interest
in all personalty owned by Seller located on the Property.

                  (c) Duly executed tenant estoppel certificates from each of
the tenants under the Tenant Leases, verifying that the applicable Tenant Lease
is in full force and effect, that Seller is not in default under the terms of
such Tenant Lease, and that all work required to be performed by Seller under
the applicable Tenant Lease has been substantially completed to such tenant's
satisfaction or has otherwise been accepted. In the event Seller fails to obtain
an estoppel certificate from a tenant or tenants upon the Property on or before
5:00 p.m. local time three (3) days prior to the expiration of the Due Diligence
Period, Seller shall deliver a Seller's estoppel for such tenants, in
approximately the form approved by Seller and Buyer during the Due Diligence
Period. Such Seller estoppels shall be deposited with Escrow Agent (and copies
provided to Buyer) on or before 5:00 p.m. local time on the day preceding the
expiration of the Due Diligence Period.

                  (d) A duly executed assignment of the Tenant Leases, together
with the original Lease and all amendments thereto.

                  (e) Any and all tenant security deposits shall be transferred
or credited to Buyer at Closing.

                  (f) An assignment of Seller's interest in any warranties or
contracts relating to the Property.

                  (g) Written notice to all tenants notifying them of the sale.

                  (h) A tax clearance certificate from the Department of Revenue
and any other local jurisdictions, if applicable.

         11. SELLER'S RIGHT TO EXCHANGE PROPERTY. Buyer acknowledges that Seller
may elect to receive other real property (generally "Exchange Property") in
exchange for the Property to be conveyed to Buyer hereunder in a like-kind
exchange, intended to qualify for income tax deferred treatment under Section
1031 of the Internal Revenue Code. If Seller so elects, Buyer agrees to
cooperate with Seller in effectuating such exchange by entering into an
amendment to this Agreement, provided, that Buyer's liability and/or cost
hereunder shall not be increased thereby and provided further that Buyer shall
not be required to incur any personal or corporate liability on any

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deed conveying such Exchange Property to Seller or with respect to any
encumbrance on any such Exchange Property.

         Seller acknowledges that Buyer may effect the purchase of the Property
by completing a like-kind exchange, intended to qualify for income tax deferred
treatment under Section 1031 of the Internal Revenue Code. Seller agrees to
cooperate with Buyer in effectuating such exchange by entering into an amendment
to this Agreement, provided, that Seller's liability and/or cost hereunder shall
not be increased thereby and provided further that Seller shall not be required
to incur any personal or corporate liability and/or cost on any deed conveying
such Exchange Property to Buyer or with respect to any encumbrance on any such
Exchange Property.

         12. TITLE POLICY. Seller shall provide Buyer with a standard coverage
owner's policy of title insurance issued by Escrow Agent in the amount of the
total sales price, effective as of the Close of Escrow, insuring Buyer that fee
simple title to the Property is vested in Buyer, subject only to the usual
printed exceptions contained in such title insurance policies, to the matters
shown in the Commitment approved by Buyer and to any other matters approved in
writing by Buyer or resulting from the acts of Buyer or Buyer's agents. If Buyer
elects, Buyer may obtain an extended form policy of title insurance by paying
the additional premium therefor. Seller's obligation to provide the title policy
required by this Paragraph shall be satisfied if, at the Close of Escrow, the
title insurance company has given a binding commitment to issue the owner's
policy in the form required by this Paragraph and if such policy is delivered
within a reasonable time following the Close of Escrow.

         13. CLOSING COSTS.

                  (a) Upon the Close of Escrow, Seller agrees to pay one-half
(1/2) of the escrow charges and the full cost of the standard coverage owner's
policy of title insurance described in Paragraph 12 above.

                  (b) Upon the Close of Escrow, Buyer agrees to pay one-half
(1/2) of the escrow charges and, if Buyer elects, any additional cost of
receiving an ALTA extended form policy of title insurance in lieu of the policy
to be provided by Seller.

                  (c) Real estate taxes against the Property shall be prorated
in Escrow as of the Close of Escrow, based upon the latest available
information. All irrigation assessments, improvement liens, and any other
general or special assessments shall be prorated at Close of Escrow.

                  (d) If permitted or requested by the lenders, any tax,
insurance, improvement or other impounds held by the lenders under the Loans
shall be assigned to Buyer and credited to Seller at the Closing.

                  (e) All rents shall be prorated in Escrow as of the Closing on
a per diem basis. If any tenant is entitled to any free rent period, rent
abatement or other similar rent concession under the Tenant Leases as of the
Close of Escrow, the amount thereof shall be prorated as of the Closing, and the
amount thereof allocable to the period following the Close of Escrow shall be an
obligation of Buyer as Lessor under the assigned leases.

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                  (f) All common area maintenance expenses, common area charges,
insurance and other similar expenses shall be prorated in Escrow as of the
Closing on a per diem basis. Any other closing costs shall be paid by Buyer and
Seller according to the usual and customary practice of Escrow Agent.

                  (g) Seller agrees that all closing costs and commissions
payable by Seller shall be deducted from Seller's proceeds at the Close of
Escrow and that to the extent such proceeds are not sufficient to pay all such
closing costs and commissions in full, Seller shall deposit cash with Escrow
Agent in an amount sufficient to pay the deficiency. On or before the Close of
Escrow, Buyer agrees to deposit with Escrow Agent cash in an amount sufficient
to pay all closing costs payable by Buyer.

         14. POSSESSION; INDEMNITY. Possession of the Property shall be
delivered to Buyer at Closing in as good a condition as it is as of the date of
this Agreement, ordinary wear and tear only excepted, subject only to the rights
of tenants in possession under the Tenant Leases. Seller shall maintain all risk
property damage insurance until termination or this Agreement or Close of
Escrow.

         15. BROKERAGE.

                  (a) If, but only if, this transaction closes, Seller agrees to
be fully responsible to pay a commission equal to one and one-half percent
(1-1/2%) of the total sales price to Johnson and Associates Commercial Real
Estate Services, Inc. (Carl K. Johnson) (the "Broker"). No commission shall be
earned if this transaction fails to close and in no event shall Broker be
entitled to any portion of the Earnest Money Deposit which may be forfeited to
Seller. Buyer warrants that Buyer has not dealt with any other broker in
connection with this transaction and Seller warrants that Seller has not dealt
with any other broker in connection with this transaction.

                  (b) If any other person shall assert a claim to a finder's
fee, brokerage commission or other compensation on account of alleged employment
as a finder or broker or performance of services as a finder or broker in
connection with this transaction, the party under whom the finder or broker is
claiming shall indemnify and hold the other party harmless from and against such
claim and all costs, expenses and liabilities incurred in connection with such
claim or any action or proceeding brought on such claim, including, but not
limited to, counsel and witness fees and court costs in defending against such
claim. This indemnity shall survive the Close of Escrow or the cancellation of
this Agreement.

         16. CONDEMNATION. In the event of the condemnation (or sale in lieu
thereof) of more than ten percent (10%) of the total square footage of the
Property prior to the Close of Escrow, Buyer shall have the right to cancel this
Agreement, in which event all of the Earnest Money Deposit shall be returned to
Buyer together with any interest earned thereon, and this Agreement and the
Escrow shall be canceled. If condemnation (or sale in lieu thereof) of less than
ten percent (10%) of the total square footage of the Property occurs prior to
the Close of Escrow or if Buyer elects to close the Escrow notwithstanding the
taking of more than ten percent (10%) of the Property prior to the close, Buyer
shall receive all awards or payments made therefor by the condemning authority
to which Seller is entitled and shall proceed to close the Escrow and pay the
full sales price provided herein.

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         17. ASSIGNMENT OF BUYER'S INTEREST; BINDING EFFECT. At any time prior
to the Close of Escrow, Buyer may assign its rights under this Agreement to one
or more assignees of Buyer's choice; provided, however, that Buyer shall not be
released from Buyer's obligations and liabilities under this Agreement as a
result of such assignment. This Agreement shall be binding upon the assignees,
successors and assigns of Buyer and Seller.

         18. WAIVERS. No waiver of any of the provisions of this Agreement shall
constitute a waiver of any other provision, whether or not similar, nor shall
any waiver be a continuing waiver. Except as expressly provided in this
Agreement, no waiver shall be binding unless executed in writing by the party
making the waiver. Either party may waive any provision of this Agreement
intended for its benefit; however, such waiver shall in no way excuse the other
party from the performance of any of its other obligations under this Agreement
unless otherwise provided herein.

         19. GOVERNING LAW. This Agreement shall be construed according to the
law of the State of Arizona.

         20. TIME. Time is of the essence of this Agreement.

         21. NOTICES. Notices shall be in writing and shall be given by personal
delivery or by deposit in the United States mail, certified mail, return receipt
requested, postage prepaid, addressed to Seller, Buyer or the Escrow Agent, as
applicable, at the addresses set forth below, or at such other address as a
party may designate in writing:

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<S>                                 <C>
         SELLER:                    NZ Properties, Inc.
                                    Attn:  Jerome L. Joseph
                                    333 North 44th Street
                                    Suite 420
                                    Phoenix, Arizona 85008-6568
                                    Telephone: (602) 952-8836
                                    Fax: (602) 952-8769

         WITH COPIES TO:            K. Bellamy Brown, Esq.
                                    The Cavanagh Law Firm
                                    1850 North Central
                                    Suite 2400
                                    Phoenix, Arizona 85004
                                    Telephone: (602) 322-4000
                                    Fax: (602) 322-4105

         BUYER:                     Bambifeathers LLC
                                    P.O. Box 4008
                                    Mesa, Arizona  85211
                                    Telephone:  (480) 497-7501
                                    Fax:  (480) 926-0112
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<TABLE>
<S>                                 <C>
         WITH COPIES TO:            Jeffrey S. Pitcher, Esq. and J. Barry Shelley, Esq.
                                    Fennemore Craig
                                    3003 North Central
                                    Suite 2600
                                    Phoenix, Arizona 85012
                                    Telephone: (602) 916-5375
                                    Fax: (602) 916-5575

         ESCROW AGENT:              Transnation Title Insurance Co.
                                    Attn:  June Oswalt, Escrow Officer
                                    2850 East Camelback Road, Suite 310
                                    Phoenix, Arizona 85016
                                    Telephone: (602) 956-5568
                                    Fax: (602) 957-2261
</TABLE>

Notices shall be deemed effective upon receipt if given by personal delivery
requiring signature of responsible party or the date of acceptance if by
certified mail return receipt requested. Notice shall also be deemed effective
three days after mailing by certified mail return receipt requested if the
letter is refused or unaccepted for any reason by the intended recipient.

         22. REMEDIES. If this Escrow fails to close by reason of a default by
Seller, Buyer, as its exclusive remedies, will be entitled to (a) terminate this
Agreement and receive a refund of its Earnest Money Deposit plus Buyer's out of
pocket expenses expended for the assumption of the Loans and investigation of
the Property, or (b) to pursue all of its rights at law or equity. In the event
of any default by Buyer, Seller's sole remedy (except for a breach of the
indemnity provisions of Paragraph 7) shall be to terminate this Agreement and
receive the Earnest Money Deposit.

         23. ATTORNEYS' FEES. If any action is brought by either party in
respect to its rights under this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees and court costs as determined by the
court.

         24. FURTHER DOCUMENTATION. Each party agrees in good faith to execute
such further or additional documents as may be necessary or appropriate to fully
carry out the intent and purpose of this Agreement.

         25. SELLER'S WARRANTY. Seller warrants and represents that to the
actual knowledge of R. R. Stolworthy, Jerome Joseph and Carolyn Weber, the
persons in the Seller's organization most familiar with the Property, that there
is no present or threatened litigation or other proceedings affecting the
property or affecting the Seller's ability to convey the Property, Seller is not
aware of any violation of applicable rules, laws, ordinances affecting the
Property or Seller's ability to convey the Property, and to Seller's actual
knowledge, all of the representations and warranties set forth in the documents
associated with the Loans are true and correct as of the date hereof and shall
be true as of the Closing Date. In the event prior to the Closing Date and due
to the passage of time or occurrence of subsequent events which renders the
above representations untrue, Seller shall promptly notify Buyer of the change
of such representations and Buyer may, as its sole remedy, terminate this
Agreement whereupon any and all obligations of Buyer and Seller herein shall be
terminated and Escrow Agent

                                       10
<PAGE>
shall promptly refund the Earnest Money Deposit plus any interest earned thereon
to Buyer. The representations and warranties of Seller in this Paragraph shall
survive the Closing. In the event that any of the foregoing representations and
warranties is found to be materially incorrect or untrue subsequent to the
Closing Date, Buyer may seek any and all remedies available to Buyer at law or
in equity against Seller.

         26. BUYER'S WARRANTIES. Buyer warrants and represents that it is fully
authorized to enter into this transaction and no approval or authorizations are
required by any third party (other than the lenders holding the Loans) for the
consummation of the transaction contemplated by this Agreement. The
representations and warranties of Buyer in this Paragraph shall survive the
Closing. In the event that any of the foregoing representations and warranties
is found to be materially incorrect or untrue subsequent to the Closing Date,
Seller may seek any and all remedies available to Seller at law or in equity
against Buyer.

         27. AUTHORIZATION.

                  (a) On or before the Closing Date, Seller shall provide Escrow
Agent with a certified copy of a resolution of the Board of Directors of Seller,
or other equivalent document reasonably satisfactory to Buyer if Seller is not a
corporation, which resolution shall be in full force and effect, approving this
transaction and designating the person or persons authorized to sign documents
on behalf of Seller.

                  (b) On or before the Closing Date, Buyer shall provide Escrow
Agent with a certified copy of a resolution of the Board of Directors of Buyer,
or other equivalent document reasonably satisfactory to Seller if Buyer is not a
corporation, which resolution shall be in full force and effect, approving this
transaction and designating the person or persons authorized to sign documents
on behalf of Buyer.

         28. TIME PERIODS. Except as expressly provided for herein, the time for
performance of any obligation under this Agreement shall be deemed to expire at
5:00 P.M. (Mountain Standard Time) on the last day of the applicable time period
provided for herein. If the time for the giving of any notice or the performance
of any obligation permitted or required to be given or performed under this
Agreement expires on a Saturday, Sunday or legal holiday, the time for the
giving or such notice or the performance of such obligation shall be extended to
the next succeeding business day which is not a Saturday, Sunday or legal
holiday.

         29. HEADINGS AND COUNTERPARTS. The headings of this Agreement are for
purposes of reference only and shall not limit or define the meaning of any
provision of this Agreement. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which shall
constitute one and the same instrument.

         30. RISK OF LOSS. Except as expressly otherwise provided herein, the
risk of loss or damage to the Property until the Close of Escrow shall be borne
by Seller.

         31. ACCEPTANCE. This Agreement shall be of no force and effect unless
Buyer shall have executed this Agreement and delivered a fully executed original
to Escrow Agent, together with the

                                       11
<PAGE>
portion of the Earnest Money Deposit described in Paragraph 2(a) above, on or
before 4:30 P.M., on April 19, 2002.

         32. ENTIRE AGREEMENT. This Agreement, together with all Exhibits
described herein, constitutes the entire agreement between the parties
pertaining to the subject matter contained in this Agreement. All prior and
contemporaneous agreements, representations and understandings of the parties,
oral or written, are superseded by and merged in this Agreement. No supplement,
modification or amendment of this Agreement shall be binding unless in writing
and executed by both Buyer and Seller.

         33. CONDITIONS TO CLOSING. The following shall be express conditions
precedent to Buyer's obligations under this Agreement:

                  (a) Seller shall have delivered all document set forth in
Paragraph 10 above;

                  (b) The lenders holding the Loans shall have approved the
assumption of the Loans by Buyer and the novation of Seller as described in
Paragraph 8 above and shall have delivered into Escrow all documents necessary
to assume all of the Loans and such documents have been executed by Seller and
Buyer, as applicable;

                  (c) Escrow Agent is prepared to issue at the Closing or has
issued an binding commitment to issue the owner's title policy as described in
Paragraph 12 above.

In the event that the foregoing contingencies have not been satisfied (or
expressly waived in writing by Buyer) on or before the expiration of the Due
Diligence Period (as may be extended) through no fault of Buyer (but in no event
later than the last day established in Paragraph 3 above as the Closing Date),
Buyer may cancel this Escrow by written notice to Seller and Escrow Agent no
later than one (1) day after the expiration of the Due Diligence Period,
whereupon any and all obligations of Buyer and Seller herein shall be terminated
and Escrow Agent shall promptly refund the Earnest Money Deposit plus any
interest earned thereon to Buyer.

                                       12
<PAGE>
         Dated, the day and year first hereinabove written.

                                     NZ PROPERTIES, INC.,
                                     an Arizona corporation

                                     By:      /s/ Jerome L. Joseph
                                              --------------------
                                     Name:    Jerome L. Joseph
                                     Its:     CFO Treasurer

                                                                        "Seller"

                                     BAMBIFEATHERS LLC,
                                     a Delaware Limited Liability Company

                                     By:      /s/ Craig M. Berge
                                              ------------------
                                     Name:    Craig M. Berge
                                     Its:     Manager

                                                                        "Buyer"

                                       13
<PAGE>
                                    EXHIBIT A

Order Number:  308628

                                LEGAL DESCRIPTION

Parcel No. 1:

The West 231.2 feet of Lot 2 and the East 53.8 feet of Lot 3, Hohokam Industrial
Park Unit II, according to Book 174 of Maps, page 33, records of Maricopa
County, Arizona.

Parcel No. 2:

Lots 1 and 2, Arizona Corporate Park Unit Three, according to Book 327 of Maps,
page 31, records of Maricopa County, Arizona.

Parcel No. 3:

Lot 1, El Dorado Business Park - Phase I, according to Book 450 of Maps, page
45, records of Maricopa County, Arizona.

Parcel No. 4:

A non-exclusive easement for use and enjoyment in and to the Common Areas, as
created by Declaration of Covenants, Conditions, Restrictions and Easements for
Continental Tech Center, recorded in Document No. 86-419846, records of Maricopa
County, Arizona, as amended by instrument recorded in Document No. 89-312262,
records of Maricopa County, Arizona.

Parcel No. 5:

A non-exclusive easement for vehicular and pedestrian ingress and egress, in
upon, over and across Landscape Tract 3, as created by Declaration of Covenants,
Conditions, Restrictions and Easements for Continental Tech Center, recorded in
Document No. 86-419846, records of Maricopa County, Arizona, as amended by
instrument recorded in Document No. 89-312262, records of Maricopa County,
Arizona.

Parcel No. 6:

All of Lot 25 and that part of Lot 26, Valley Interstate Industrial Center,
according to Book 177 of Maps, page 4, records of Maricopa County, Arizona,
described as follows:

                                       14
<PAGE>
Beginning at the Northeast corner of said Lot 26, which is a point on a curve
from which the radius point lies North 83 degrees 14' 28" East 650.00 feet;

Thence Southerly 159.67 feet along the Easterly line of said Lot 26, along the
arc of a 650.00 foot radius curve, concave to the East, which has a central
angle of 14 degrees 04' 28" to a point on a non-tangent line;

Thence South 57 degrees 37' 46" West 299.01 feet to a point on the Southwesterly
line of said Lot 26;

Then North 45 degrees 03' 58" West 172.38 feet along said Southwesterly line of
said Lot 26 to a point which lies south 45 degrees 03' 58" East 66.50 feet from
the most Westerly corner of said Lot 26;

Thence North 00 degrees 04' 28" West 153.10 feet to the Northwest corner of said
Lot 26;

Thence North 83 degrees 14' 28" East 339.15 feet along the North line of said
Lot 26 to the Point of Beginning.

Parcel No. 7:

That part of the Southwest quarter of the Southeast quarter of Section 17,
Township 1 North, Range 3 East of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona, described as follows:

Commencing at the most Westerly corner of Lot 26, Valley Interstate Industrial
Center, according to Book 177 of Maps, page 4, records of Maricopa County,
Arizona;

Thence South 45 degrees 03' 58" East 66.50 feet along the Southwesterly line of
said Lot 26 to the Point of Beginning;

Thence South 45 degrees 03' 58" East 172.38 feet along the Southwesterly line of
Lot 26;

Thence South 57 degrees 37' 46" West 28.05 feet;

Thence North 38 degrees 21' 35" West 122.55 feet to a point of curve;

Thence Northwesterly 33.95 feet along the arc of a 367.24 foot radius of curve,
concave to the Southwest, which has a central angle of 5 degrees 17' 49" to a
point on a non-tangent line;

Thence North 00 degrees  04' 28" West 15.06 feet to the Point of Beginning.

Parcel No. 8:

That portion of Lot 9, Elliott / I-10, Commerce Center, according to Book 223 of
Maps, page 36, records of Maricopa County, Arizona; and that portion of
Southeast quarter of Section 8, Township 1

                                       15
<PAGE>
South, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa
County, Arizona, described as follows:

Commencing at the Southeast corner of said Section 8;

Thence North 00 degrees 02' 58" West, 1329.84 feet along the East line of the
Southeast quarter of said Section 8;

Thence South 89 degrees 22' 17" West, 719.99 feet along the monument line of
Todd Drive;

Thence North 00 degrees 02' 58" West, 30.00 feet to the Point of Beginning;

Thence continuing North 00 degrees 02' 58" West, 267.58 feet along a line being
720.00 feet West of and parallel to the East line of said Southeast quarter,
said line also being the East line of said Elliott / I-10 Commerce Center;

Thence South 89 degrees 57' 02" West, 270.00 feet along a line being 48.00 feet
North of and parallel to the South line of said Lot 9;

Thence North 00 degrees 02' 58" West, 162.00 feet to the Northwest corner of
said Lot 9;

Thence North 89 degrees 57' 02" East, 270.00 feet along the North line of said
Lot 9 to the Northeast corner thereof;

Then North 00 degrees 02' 58" West, 210.00 feet along the East line of said
Elliott / I-10 Commerce Center;

Thence North 89 degrees 19' 32" East, 459.00 feet along a line being 2000.00
feet North of and parallel to the South line of said Section 8, also being
common with the south line of Lincoln-Elliott / I-10, a subdivision recorded in
Book 223 of Maps, page 38, records of Maricopa County, Arizona;

Thence South 00 degrees 02' 58" East, 223.09 feet along a line being 261.00 feet
West of and parallel to said East line of the Southeast quarter of said Section
8;

Thence South 89 degrees 19' 32" West, 66.25 feet;

Thence South 00 degrees 02' 58" East, 416.80 feet along a line 327.2 feet West
of and parallel to the East line of the Southeast quarter of Section 8;

Thence South 89 degrees 22' 17" West, 392.74 feet along the North right of way
line of said Todd Drive, to the Point of Beginning.

                                       16
<PAGE>
                FIRST AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT

         THIS FIRST AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT ("AMENDMENT") is
made as of the 30th day of April, 2002, by and between NZ PROPERTIES, INC., an
Arizona corporation ("SELLER"), and BAMBIFEATHERS LLC, a Delaware limited
liability company ("BUYER").

                                    RECITALS

         A. Seller and Buyer entered into that certain Real Estate Purchase
Agreement dated as of April 19, 2002 (the "AGREEMENT") pertaining to the
purchase and sale of five industrial properties as more fully described in the
Agreement (collectively, the "Property").

         B. Seller, as the owner of the Property, has agreed to obtain estoppel
certificates from the existing tenants of the Property. Although Seller has
delivered the form estoppel certificates to the tenants, Seller has yet to
receive a majority of the signed estoppels. Buyer has requested the receipt of
the estoppel certificates as a part of its due diligence of the Property.

         C. The parties by this Amendment desire to amend the Agreement to
extend the Due Diligence Period to accommodate Seller obtaining, and Buyer's
review of, the estoppel certificates from the tenants of the Property. Buyer, by
this Agreement, also hereby elects to extend the Due Diligence Period with
regard to the assumption of the Loans and the performance of the environmental
testing on the Watkins Site as permitted in the Agreement.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1. Definitions. Except as otherwise set forth herein, the defined terms
in this Amendment (denoted by initial capitalization) shall have the meanings
ascribed to them in the Agreement.

         2. Extension of the Due Diligence Period. The Due Diligence Period is
hereby extended as to the following matters only:

                  a. The Due Diligence Period for Seller to deliver the tenant
estoppels is hereby extended to May 10, 2002;

                  b. Buyer hereby elects to extend the Due Diligence Period for
the environmental matters pertaining to the Watkins Site to May 7, 2002, as
contemplated by Paragraph 7(b) of the Agreement; and

                  c. Buyer hereby elects to extend the Due Diligence Period for
the assumption of the Loans to May 30, 2002, as contemplated by Paragraph 8 of
the Agreement, and Buyer has

                                       17
<PAGE>
concurrently deposited with Escrow Agent the additional earnest money in the
amount of $250,000.00.

         3. Full Force and Effect; Counterparts. The Agreement shall remain in
full force and effect in accordance with its terms and provisions except as
amended by this Amendment. This Amendment shall be binding on the parties hereto
and their respective successors and assigns. This Amendment may be executed in
one or more counterparts, all counterparts shall be valid and binding on the
party executing them and all counterparts shall together constitute one and the
same document for all purposes. This Amendment may be executed and delivered by
facsimile signature for execution on the part of one or more parties hereto and
upon one party sending via facsimile to another party a facsimile copy of a
signature page showing the sending party's execution or signature, the sending
party shall be bound by such signature or execution.

                                       18
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this First Amendment as
of the date set forth above.

                                    SELLER:

                                    NZ PROPERTIES, INC., an Arizona
                                    corporation

                                    By:  /s/ Jerome L. Joseph
                                         --------------------
                                    Name:  Jerome L. Joseph
                                    Title:  CFO and Treasurer

                                    BUYER:

                                    BAMBIFEATHERS LLC, a Delaware limited
                                    liability company

                                     By:  Two Daughters, LLC, an Arizona limited
                                          liability company, Its Manager

                                          By:  /s/ Craig M. Berge
                                               ------------------
                                          Name:  Craig M. Berge
                                          Title: Manager

                                       19
<PAGE>
               SECOND AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT

         THIS SECOND AMENDMENT TO REAL ESTATE PURCHASE AGREEMENT ("AMENDMENT")
is made as of the 30th day of May, 2002, by and between NZ PROPERTIES, INC., an
Arizona corporation ("SELLER"), and BAMBIFEATHERS LLC, a Delaware limited
liability company ("BUYER").

                                    RECITALS

         A. Seller and Buyer entered into that certain Real Estate Purchase
Agreement dated as of April 19, 2002, as amended by the First Amendment to Real
Estate Purchase Agreement dated April 30, 2002 (as amended, the "AGREEMENT")
pertaining to the purchase and sale of five industrial properties as more fully
described in the Agreement (collectively, the "Property").

         B. The parties by this Amendment desire to amend the Agreement to
extend the Closing Date.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1. Definitions. Except as otherwise set forth herein, the defined terms
in this Amendment (denoted by initial capitalization) shall have the meanings
ascribed to them in the Agreement.

         2. Extension of the Closing Date. Seller and Buyer hereby agree to
extend the Closing Date set forth in Paragraph 3 to be on or before June 6,
2002.

         3. Full Force and Effect; Counterparts. The Agreement shall remain in
full force and effect in accordance with its terms and provisions except as
amended by this Amendment. This Amendment shall be binding on the parties hereto
and their respective successors and assigns. This Amendment may be executed in
one or more counterparts, all counterparts shall be valid and binding on the
party executing them and all counterparts shall together constitute one and the
same document for all purposes. This Amendment may be executed and delivered by
facsimile signature for execution on the part of one or more parties hereto and
upon one party sending via facsimile to another party a facsimile copy of a
signature page showing the sending party's execution or signature, the sending
party shall be bound by such signature or execution.

                                       20
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this First Amendment as
of the date set forth above.

                                    SELLER:

                                    NZ PROPERTIES, INC., an Arizona
                                    corporation

                                    By:  /s/ R. Randy Stolworthy
                                         -----------------------
                                    Name:  R. Randy Stolworthy
                                    Title:  President

                                    BUYER:

                                    BAMBIFEATHERS LLC, a Delaware limited
                                    liability company

                                     By:  Two Daughters, LLC, an Arizona limited
                                          liability company, Its Manager

                                           By: /s/ Craig M. Berge
                                               ------------------
                                           Name: Craig M. Berge
                                           Title: Manager

                                       21<PAGE>
                                                                    Exhibit 10.2

                              LIPID SCIENCES, INC.
                             PERFORMANCE EQUITY PLAN
                            (AMENDED AUGUST 5, 2002)

SECTION 1. PURPOSE; DEFINITIONS.

         1.1. Purpose. The purpose of the Lipid Sciences, Inc. 2001 Performance
Equity Plan is to enable the Company to offer to its employees, officers,
directors and consultants whose past, present and/ or potential contributions to
the Company and its Subsidiaries have been, are or will be important to the
success of the Company, an opportunity to acquire a proprietary interest in the
Company. The various types of long-term incentive awards that may be provided
under the Plan will enable the Company to respond to changes in compensation
practices, tax laws, accounting regulations and the size and diversity of its
businesses.

         1.2. Definitions. For purposes of the Plan, the following terms shall
be defined as set forth below:

         (a) "Agreement" means the agreement between the Company and the Holder,
or such other document as may be determined by the Committee, setting forth the
terms and conditions of an award under the Plan.

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

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

         (d) "Committee" means the Stock Option Committee of the Board or any
other committee of the Board that the Board may designate to administer the Plan
or any portion thereof. If no Committee is so designated, then all references in
this Plan to "Committee" shall mean the Board.

         (e) "Common Stock" means the Common Stock of the Company, no par value.

         (f) "Company" means Lipid Sciences, Inc., a corporation organized under
the laws of the State of Delaware.

         (g) "Deferred Stock" means Common Stock to be received under an award
made pursuant to Section 8, below, at the end of a specified deferral period.

         (h) "Disability" means physical or mental impairment as determined
under procedures established by the Committee for purposes of the Plan.

         (i) "Effective Date" means the date set forth in Section 12.1, below.
<PAGE>
         (j) "Fair Market Value", unless otherwise required by any applicable
provision of the Code or any regulations issued thereunder, means, as of any
given date: (i) if the Common Stock is listed on a national securities exchange
or quoted on the Nasdaq National Market or Nasdaq SmallCap Market, the last sale
price of the Common Stock in the principal trading market for the Common Stock
on such date, as reported by the exchange or Nasdaq, as the case may be; (ii) if
the Common Stock is not listed on a national securities exchange or quoted on
the Nasdaq National Market or Nasdaq SmallCap Market, but is traded in the
over-the-counter market, the closing bid price for the Common Stock on such
date, as reported by the OTC Bulletin Board or the National Quotation Bureau,
Incorporated or similar publisher of such quotations; and (iii) if the fair
market value of the Common Stock cannot be determined pursuant to clause (i) or
(ii) above, such price as the Committee shall determine, in good faith.

         (k) "Holder" means a person who has received an award under the Plan.

         (l) "Incentive Stock Option" means any Stock Option intended to be and
designated as an "incentive stock option" within the meaning of Section 422 of
the Code.

         (m) "Nonqualified Stock Option" means any Stock Option that is not an
Incentive Stock Option.

         (n) "Other Stock-Based Award" means an award under Section 9, below,
that is valued in whole or in part by reference to, or is otherwise based upon,
Common Stock.

         (o) "Parent" means any present or future "parent corporation" of the
Company, as such term is defined in Section 424(e) of the Code (without regard
to the phrase "at the time of the granting of the option" in such Section).

         (p) "Plan" means the Lipid Sciences, Inc. 2001 Performance Equity Plan,
as hereinafter amended from time to time.

         (q) "Repurchase Value" shall mean the Fair Market Value in the event
the award to be settled under Section 2.2(h) or repurchased under Section 10.2
is comprised of shares of Common Stock and the difference between Fair Market
Value and the Exercise Price (if lower than Fair Market Value) in the event the
award is a Stock Option or Stock Appreciation Right; in each case, multiplied by
the number of shares subject to the award.

         (r) "Restricted Stock" means Common Stock received under an award made
pursuant to Section 7, below, that is subject to restrictions under said Section
7.

         (s) "SAR Value" means the excess of the Fair Market Value (on the
exercise date) over the exercise price that the participant would have otherwise
had to pay to exercise the related Stock Option, multiplied by the number of
shares for which the Stock Appreciation Right is exercised.

                                       2
<PAGE>
         (t) "Stock Appreciation Right" means the right to receive from the
Company, on surrender of all or part of the related Stock Option, without a cash
payment to the Company, a number of shares of Common Stock equal to the SAR
Value divided by the Fair Market Value (on the exercise date).

         (u) "Stock Option" or "Option" means any option to purchase shares of
Common Stock which is granted pursuant to the Plan.

         (v) "Stock Reload Option" means any option granted under Section 5.3 of
the Plan.

         (w) "Subsidiary" means any present or future "subsidiary corporation"
of the Company, as such term is defined in Section 424(f) of the Code (without
regard to the phrase "at the time of the granting of the option" in such
Section).

         (x) "Termination" means that the Holder has ceased to be an employee or
director of, or consultant to, the Company or its Subsidiaries and no longer
serves in any such capacity on behalf of the Company or its Subsidiaries. An
event that causes a Subsidiary to cease being a Subsidiary shall be treated as a
"Termination" of that Subsidiary's employees, directors and consultants.

         (y) "Vest" means to become exercisable or to otherwise obtain ownership
rights in an award.

SECTION 2. ADMINISTRATION.

         2.1. Committee Membership. The Plan shall be administered by the Board
or a Committee, as provided herein. Committee members shall serve for such term
as the Board may in each case determine, and shall be subject to removal at any
time by the Board. The Committee members shall be "non-employee directors" as
defined in Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as
amended ("Exchange Act"), and "outside directors" within the meaning of Section
162(m) of the Code.

         2.2. Powers of Committee. The Committee shall have full authority to
award, pursuant to the terms of the Plan: (i) Stock Options, (ii) Stock
Appreciation Rights, (iii) Restricted Stock, (iv) Deferred Stock, (v) Stock
Reload Options and/or (vi) Other Stock-Based Awards (collectively, "Awards").
For purposes of illustration and not of limitation, the Committee shall have the
authority (subject to the express provisions of this Plan):

         (a) to select, from the persons designated as eligible recipients of
awards in Section 4.1, the officers, employees, directors and consultants of the
Company or any Subsidiary to whom Stock Options, Stock Appreciation Rights,
Restricted Stock, Deferred Stock, Reload Stock Options and/or Other Stock-Based
Awards may from time to time be awarded hereunder;

                                       3
<PAGE>
         (b) to determine the terms and conditions, not inconsistent with the
terms of the Plan, of any award granted hereunder (including, but not limited
to, number of shares, share exercise price or types of consideration paid upon
exercise of such options, such as other securities of the Company or other
property, any restrictions or limitations, and any vesting, exchange, surrender,
cancellation, acceleration, termination, exercise or forfeiture provisions, as
the Committee shall determine);

         (c) to determine any specified performance goals or such other factors
or criteria which need to be attained for the vesting of an award granted
hereunder;

         (d) to determine the terms and conditions under which awards granted
hereunder are to operate on a tandem basis and/or in conjunction with or apart
from other equity awarded under this Plan and cash and non-cash awards made by
the Company or any Subsidiary outside of this Plan;

         (e) to permit a Holder to elect to defer a payment under the Plan under
such rules and procedures as the Committee may establish, including the payment
or crediting of interest on deferred amounts denominated in cash and of dividend
equivalents on deferred amounts denominated in Common Stock;

         (f) to determine the extent and circumstances under which Common Stock
and other amounts payable with respect to an award hereunder shall be deferred
that may be either automatic or at the election of the Holder; and

         (g) to substitute (i) new Stock Options for previously granted Stock
Options, which previously granted Stock Options have higher option exercise
prices and/or contain other less favorable terms, and (ii) new awards of any
other type for previously granted awards of the same type, which previously
granted awards are upon less favorable terms; and

         (h) to make payments and distributions with respect to awards (i.e., to
"settle" awards) through cash payments in an amount equal to the Repurchase
Value.

         Notwithstanding anything contained herein to the contrary, the
Committee shall not grant to any one Holder in any one calendar year awards for
more than 500,000 shares in the aggregate.

         2.3. Interpretation of Plan.

         (a) Committee Authority. Subject to Section 11, below, the Committee
shall have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall from time to time deem
advisable to interpret the terms and provisions of the Plan and any award issued
under the Plan (and to determine the form and substance of all Agreements
relating thereto), and to otherwise supervise the administration of the Plan.
Subject to Section 11, below, all decisions made by the

                                       4
<PAGE>
Committee pursuant to the provisions of the Plan shall be made in the
Committee's sole discretion and shall be final and binding upon all persons,
including the Company, its Subsidiaries and Holders.

         (b) Incentive Stock Options. Anything in the Plan to the contrary
notwithstanding, no term or provision of the Plan relating to Incentive Stock
Options (including but not limited to Stock Reload Options or Stock Appreciation
rights granted in conjunction with an Incentive Stock Option) or any Agreement
providing for Incentive Stock Options shall be interpreted, amended or altered,
nor shall any discretion or authority granted under the Plan be so exercised, so
as to disqualify the Plan under Section 422 of the Code or, without the consent
of the Holder(s) affected, to disqualify any Incentive Stock Option under such
Section 422.

SECTION 3. STOCK SUBJECT TO PLAN.

         3.1. Number of Shares. The total number of shares of Common Stock
reserved and available for issuance under the Plan shall be 5,000,000 shares;
provided that this number of shares shall automatically increase on the January
1, in each of the calendar years 2002, 2003, 2004, 2005 and 2006 by an amount
equal to 3% of the shares of Common Stock outstanding on December 31 of the
immediately preceding calendar year as reflected on the stock ledger of the
Company, if the Plan is then in effect, but in no event shall any annual
increase exceed 500,000 shares of Common Stock. Shares of Common Stock under the
Plan ("Shares") may consist, in whole or in part, of authorized and unissued
shares or treasury shares. If a Stock Option expires or is cancelled without
being exercised, the Shares of Common Stock that were subject to such Stock
Option shall revert to the Plan and again be available for future issuance under
this Plan. Similarly, if a Stock Appreciation Right or Deferred Stock award is
cancelled before it is exercised (in the case of a Stock Appreciation Right) or
before the end of the Deferral Period (in the case of a Deferred Stock award,
and the shares of Common Stock subject to such Stock Appreciation Right or
Deferred Stock award are never in fact issued to the Holder thereof, such Shares
shall revert to the Plan and again be available for future issuance under this
Plan.

         3.2. Changes in Capital Structure. In the event of any stock split,
reverse stock split, recapitilization, combination or reclassification of stock,
stock dividend, spin-off, or similar change to the capital structure of the
Company (not including a Fundamental Transaction or Change of Control as defined
in Sections 10.1 and 10.2, respectively), the Committee shall make whatever
adjustments it concludes are appropriate to: (a) the number and type of Options
or other awards that may be granted under this Plan, (b) the number and type of
Options or other awards that may be granted to any individual under this Plan,
(c) the exercise price and number and class of securities issuable under each
outstanding Option or other award, and (d) the repurchase price of any
securities or awards granted hereunder subject to a right of repurchase in favor
of the Company. The specific adjustments shall be determined by the Board in its
sole and absolute discretion.

                                       5
<PAGE>
Unless the Board specifies otherwise, any securities issuable as a result of any
such adjustment shall be rounded to the next lower whole security.

SECTION 4. ELIGIBILITY; LIMITATIONS.

         4.1 Eligibility. Awards may be made or granted to employees, officers,
directors and consultants who are deemed to have rendered or to be able to
render significant services to the Company or its Subsidiaries and who are
deemed to have contributed or to have the potential to contribute to the success
of the Company. Notwithstanding any other provision of this Plan, Incentive
Stock Option may be granted to, and only to, persons who are employees of the
Company or a Subsidiary at the time of grant. An award other than an Incentive
Stock Option may be made or granted to a person in connection with his hiring or
retention, or at any time on or after the date he reaches an agreement (oral or
written) with the Company with respect to such hiring or retention, even though
it may be prior to the date the person first performs services for the Company
or its Subsidiaries; provided, however, that no portion of any such award shall
vest prior to the date the person first performs such services. If an Incentive
Stock Option is awarded to a person in connection with his or her becoming an
employee of the Company or a Subsidiary, such Incentive Stock Option shall, for
all purposes, be deemed granted no earlier than the day on which such person's
employment begins.

         4.2 Section 162(m) Limitation. So long as the Company is a "publicly
held corporation" within the meaning of Section 162(m) of the Code: (a) no
employee of the Company or prospective employee of the Company may be granted
one or more awards hereunder within any fiscal year representing more than
250,000 Shares or the right to acquire more than 250,000 Shares, subject to
adjustment under Section 3.2, and (b) Options may be granted to an Executive
only by the Committee (and, notwithstanding Section 2.1, not by the Board). If
an Option is cancelled without being exercised, that cancelled Option shall
continue to be counted against the limit on Options that may be granted to any
individual under this Section 4.2. For purposes of the Plan, an "EXECUTIVE"
shall mean any individual who is subject to Section 16 of the Exchange Act or
who is a "covered employee" under Section 162(m) of the Code, in either case
because of such individual's affiliation with the Company or an affiliate of the
Company.

SECTION 5. STOCK OPTIONS.

         5.1. Grant and Exercise. Stock Options granted under the Plan may be of
two types: (i) Incentive Stock Options and (ii) Nonqualified Stock Options. Any
Stock Option granted under the Plan shall contain such terms, not inconsistent
with this Plan, or with respect to Incentive Stock Options, not inconsistent
with the Plan and the Code, as the Committee may from time to time approve. The
Committee shall have the authority to grant Incentive Stock Options or
Non-Qualified Stock Options, or both types of Stock Options which may be granted
alone or in addition to other awards granted under the

                                       6
<PAGE>
Plan. To the extent that any Stock Option intended to qualify as an Incentive
Stock Option does not so qualify, it shall constitute a separate Nonqualified
Stock Option.

         5.2. Terms and Conditions. Stock Options granted under the Plan shall
be subject to the following terms and conditions:

         (a) Option Term. The term of each Stock Option shall be fixed by the
Committee; provided, however, that an Incentive Stock Option may be granted only
within the ten-year period commencing from the Effective Date and may only be
exercised within ten years of the date of grant (or five years in the case of an
Incentive Stock Option granted to an optionee who, at the time of grant, owns
Common Stock possessing more than 10% of the total combined voting power of all
classes of voting stock of the Company, or the Parent or a Subsidiary of the
Company ("10% Stockholder").

         (b) Exercise Price. The exercise price per share of Common Stock
purchasable under an Incentive Stock Option shall be determined by the Committee
at the time of grant and may not be less than 100% of the Fair Market Value on
the date of grant (or, if greater, the par value of a share of Common Stock);
provided, however, that (i) the exercise price of an Incentive Stock Option
granted to a 10% Stockholder shall not be less than 110% of the Fair Market
Value on the date of grant; and (ii) if the Stock Option (other than an
Incentive Stock Option) is granted in connection with the recipient's hiring,
retention, reaching an agreement (oral or written) with the Company with respect
to such hiring or retention, promotion or similar event, the option exercise
price may be not less than the Fair Market Value on the date on which the
recipient is hired or retained, reached such agreement with respect to such
hiring or retention, or is promoted (or similar event), if the grant of the
Stock Option occurs not more than 120 days after the date of such hiring,
retention, agreement, promotion or other event.

         (c) Exercisability. Stock Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee and as set forth in Section 10, below. If the Committee provides, in
its discretion, that any Stock Option is exercisable only in installments, i.e.,
that it vests over time, the Committee may waive such installment exercise
provisions at any time at or after the time of grant in whole or in part, based
upon such factors as the Committee shall determine.

         (d) Method of Exercise. Subject to whatever installment, exercise and
waiting period provisions are applicable in a particular case, Stock Options may
be exercised in whole or in part at any time during the term of the Option by
giving written notice of exercise to the Company specifying the number of shares
of Common Stock to be purchased. Such notice shall be accompanied by payment in
full of the purchase price, which shall be in cash or, if provided in the
Agreement, either in shares of Common Stock (including Restricted Stock and
other contingent awards under this Plan) or partly in cash and partly in such
Common Stock, or such other means which the Committee determines are consistent
with the Plan's purpose and applicable law. Cash payments

                                       7
<PAGE>
shall be made by wire transfer, certified or bank check or personal check, in
each case payable to the order of the Company; provided, however, that the
Company shall not be required to deliver certificates for shares of Common Stock
with respect to which an Option is exercised until the Company has confirmed the
receipt of good and available funds in payment of the purchase price thereof
(except that, in the case of an exercise arrangement approved by the Committee
and described in the last sentence of this paragraph, payment may be made as
soon as practicable after the exercise). Payments in the form of Common Stock
shall be valued at the Fair Market Value on the date prior to the date of
exercise. Such payments shall be made by delivery of stock certificates in
negotiable form that are effective to transfer good and valid title thereto to
the Company, free of any liens or encumbrances. Subject to the terms of the
Agreement, the Committee may, in its sole discretion, at the request of the
Holder, deliver upon the exercise of a Nonqualified Stock Option a combination
of shares of Deferred Stock and Common Stock; provided, however, that,
notwithstanding the provisions of Section 8 of the Plan, such Deferred Stock
shall be fully vested and not subject to forfeiture. A Holder shall have none of
the rights of a Stockholder with respect to the shares subject to the Option
until such shares shall be transferred to the Holder upon the exercise of the
Option. The Committee may permit a Holder to elect to pay the Exercise Price
upon the exercise of a Stock Option by irrevocably authorizing a third party to
sell shares of Common Stock (or a sufficient portion of the shares) acquired
upon exercise of the Stock Option and remit to the Company a sufficient portion
of the sale proceeds to pay the entire Exercise Price and any tax withholding
resulting from such exercise.

         (e) Transferability. Except as may be set forth in the next sentence of
this Section or in the Agreement, no Stock Option shall be transferable by the
Holder other than by will or by the laws of descent and distribution or as
permitted by the Code and Rule 16b-3 under the Exchange Act, and all Stock
Options shall be exercisable, during the Holder's lifetime, only by the Holder
(or, to the extent of legal incapacity or incompetency, the Holder's guardian or
legal representative). Notwithstanding the foregoing, a Holder may (A) transfer
any Stock Option pursuant to a Qualified Domestic Relations Order, and (B) with
the approval of the Committee, transfer a Nonqualified Stock Option by gift, for
no consideration, to or for the benefit of the Holder's "Immediate Family" (as
defined below), or to an entity in which the Holder and/or members of Holder's
Immediate Family own more than fifty percent of the voting interest, in exchange
for an interest in that entity, subject to such limits as the Committee may
establish and the execution of such documents as the Committee may require, and
the transferee shall remain subject to all the terms and conditions applicable
to the Stock Option prior to such transfer. The term "Immediate Family" shall
mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law, including adoptive
relationships, any person sharing the Holder's household (other than a tenant or
employee), a trust in which these persons have more than fifty percent
beneficial interest,

                                       8
<PAGE>
and a foundation in which these persons (or the Holder) control the management
of the assets.

         (f) Termination by Reason of Death. If a Holder's Termination is by
reason of death, any Stock Option held by such Holder, unless otherwise
determined by the Committee and set forth in the Agreement, shall thereupon
automatically terminate, except that the portion of such Stock Option that has
vested on the date of death may thereafter be exercised by the legal
representative of the estate or by the legatee of the Holder under the will of
the Holder, for a period of one year (or such other greater or lesser period as
the Committee may specify in the Agreement) from the date of such death or until
the expiration of the stated term of such Stock Option, whichever period is
shorter.

         (g) Termination by Reason of Disability. If a Holder's Termination is
by reason of Disability, any Stock Option held by such Holder, unless otherwise
determined by the Committee and set forth in the Agreement, shall thereupon
automatically terminate, except that the portion of such Stock Option that has
vested on the date of Termination may thereafter be exercised by the Holder for
a period of one year (or such other greater or lesser period as the Committee
may specify in the Agreement) from the date of Termination or until the
expiration of the stated term of such Stock Option, whichever period is shorter.

         (h) Other Termination. Subject to the provisions of Section 13.3,
below, and unless otherwise determined by the Committee and set forth in the
Agreement, if a Holder's Termination is for any reason other than death or
Disability, then the portion of such Stock Option that has vested on the date of
Termination may be exercised for the lesser of three months after Termination or
the balance of such Stock Option's term (or such other greater or lesser period
as the Committee may specify in the Agreement).

         (i) Additional Incentive Stock Option Limitation. In the case of an
Incentive Stock Option, the aggregate Fair Market Value (on the date of grant of
the Option) with respect to which Incentive Stock Options become exercisable for
the first time by a Holder during any calendar year (under all such plans of the
Company and its Parent and Subsidiaries) shall not exceed $100,000.

         (j) Buyout and Settlement Provisions. The Committee may at any time, in
its sole discretion, offer to repurchase a Stock Option previously granted,
based upon such terms and conditions as the Committee shall establish and
communicate to the Holder at the time that such offer is made.

         5.3. Stock Reload Option. If a Holder tenders shares of Common Stock to
pay the exercise price of a Stock Option ("Underlying Option") and/or arranges
to have a portion of the shares otherwise issuable upon exercise withheld to pay
the applicable withholding taxes, then the Holder may receive, at the discretion
of the Committee, a new Stock

                                       9
<PAGE>
Reload Option to purchase that number of shares of Common Stock equal to the
number of shares tendered to pay the exercise price and the withholding taxes
(but only if such tendered shares were held by the Holder for at least six
months). Stock Reload Options may be any type of option permitted under the Code
and will be granted subject to such terms, conditions, restrictions and
limitations as may be determined by the Committee from time to time. Such Stock
Reload Option shall have an exercise price equal to the Fair Market Value as of
the date of exercise of the Underlying Option. Unless the Committee determines
otherwise, a Stock Reload Option may be exercised commencing one year after it
is granted and shall expire on the date of expiration of the Underlying Option
to which the Reload Option is related.

SECTION 6. STOCK APPRECIATION RIGHTS.

         6.1. Grant and Exercise. The Committee may grant Stock Appreciation
Rights to participants who have been or are being granted Stock Options under
the Plan as a means of allowing such participants to exercise their Stock
Options without the need to pay the exercise price in cash. In the case of a
Nonqualified Stock Option, a Stock Appreciation Right may be granted either at
or after the time of the grant of such Nonqualified Stock Option. In the case of
an Incentive Stock Option, a Stock Appreciation Right may be granted only at the
time of the grant of such Incentive Stock Option.

         6.2. Terms and Conditions. Stock Appreciation Rights shall be subject
to the following terms and conditions:

         (a) Exercisability. Stock Appreciation Rights shall be exercisable as
shall be determined by the Committee and set forth in the Agreement, subject to
the limitations, if any, imposed by the Code with respect to related Incentive
Stock Options.

         (b) Termination. A Stock Appreciation Right shall terminate and shall
no longer be exercisable upon the termination or exercise of the related Stock
Option.

         (c) Method of Exercise. Stock Appreciation Rights shall be exercisable
upon such terms and conditions as shall be determined by the Committee and set
forth in the Agreement and by surrendering the applicable portion of the related
Stock Option. Upon such exercise and surrender, the Holder shall be entitled to
receive a number of shares of Common Stock equal to the SAR Value divided by the
Fair Market Value on the date the Stock Appreciation Right is exercised.

         (d) Shares Affected Upon Plan. The granting of a Stock Appreciation
Right shall not affect the number of shares of Common Stock available under for
awards under the Plan. The number of shares Available for awards under the Plan
will, however, be reduced by the number of shares of Common Stock acquirable
upon exercise of the Stock Option to which such Stock Appreciation Right
relates.

                                       10
<PAGE>
SECTION 7. RESTRICTED STOCK.

         7.1. Grant. Shares of Restricted Stock may be awarded either alone or
in addition to other awards granted under the Plan. The Committee shall
determine the eligible persons to whom, and the time or times at which, grants
of Restricted Stock will be awarded, the number of shares to be awarded, the
price (if any) to be paid by the Holder, the time or times within which such
awards may be subject to forfeiture ("Restriction Period"), the vesting schedule
and rights to acceleration thereof and all other terms and conditions of the
awards.

         7.2. Terms and Conditions. Each Restricted Stock award shall be subject
to the following terms and conditions:

         (a) Certificates. Restricted Stock, when issued, will be represented by
a stock certificate or certificates registered in the name of the Holder to whom
such Restricted Stock shall have been awarded. During the Restriction Period,
certificates representing the Restricted Stock and any securities constituting
Retained Distributions (as defined below) shall bear a legend to the effect that
ownership of the Restricted Stock (and such Retained Distributions) and the
enjoyment of all rights appurtenant thereto are subject to the restrictions,
terms and conditions provided in the Plan and the Agreement. Such certificates
shall be deposited by the Holder with the Company, together with stock powers or
other instruments of assignment, each endorsed in blank, which will permit
transfer to the Company of all or any portion of the Restricted Stock and any
securities constituting Retained Distributions that shall be forfeited or that
shall not become vested in accordance with the Plan and the Agreement.

         (b) Rights of Holder. Restricted Stock shall constitute issued and
outstanding shares of Common Stock for all corporate purposes. The Holder will
have the right to vote such Restricted Stock, to receive and retain all regular
cash dividends and other cash equivalent distributions as the Board may in its
sole discretion designate, pay or distribute on such Restricted Stock and to
exercise all other rights, powers and privileges of a holder of Common Stock
with respect to such Restricted Stock, with the exceptions that (i) the Holder
will not be entitled to delivery of the stock certificate or certificates
representing such Restricted Stock until the Restriction Period shall have
expired and unless all other vesting requirements with respect thereto shall
have been fulfilled; (ii) the Company will retain custody of the stock
certificate or certificates representing the Restricted Stock during the
Restriction Period; (iii) other than regular cash dividends and other cash
equivalent distributions as the Board may in its sole discretion designate, pay
or distribute, the Company will retain custody of all distributions ("Retained
Distributions") made or declared with respect to the Restricted Stock (and such
Retained Distributions will be subject to the same restrictions, terms and
conditions as are applicable to the Restricted Stock) until such time, if ever,
as the Restricted Stock with respect to which such Retained Distributions shall
have been made, paid or declared shall have become vested and with respect to
which the Restriction Period shall have expired;

                                       11
<PAGE>
(iv) a breach of any of the restrictions, terms or conditions contained in this
Plan or the Agreement or otherwise established by the Committee with respect to
any Restricted Stock or Retained Distributions will cause a forfeiture of such
Restricted Stock and any Retained Distributions with respect thereto.

         (c) Vesting; Forfeiture. Upon the expiration of the Restriction Period
with respect to each award of Restricted Stock and the satisfaction of any other
applicable restrictions, terms and conditions (i) all or part of such Restricted
Stock shall become vested in accordance with the terms of the Agreement, subject
to Section 10, below, and (ii) any Retained Distributions with respect to such
Restricted Stock shall become vested to the extent that the Restricted Stock
related thereto shall have become vested, subject to Section 10, below. Any such
Restricted Stock and Retained Distributions that do not vest shall be forfeited
to the Company and the Holder shall not thereafter have any rights with respect
to such Restricted Stock and Retained Distributions that shall have been so
forfeited.

SECTION 8. DEFERRED STOCK.

         8.1. Grant. Shares of Deferred Stock may be awarded either alone or in
addition to other awards granted under the Plan. The Committee shall determine
the eligible persons to whom and the time or times at which grants of Deferred
Stock will be awarded, the number of shares of Deferred Stock to be awarded to
any person, the duration of the period ("Deferral Period") during which, and the
conditions under which, receipt of the shares will be deferred, and all the
other terms and conditions of the awards.

         8.2. Terms and Conditions. Each Deferred Stock award shall be subject
to the following terms and conditions:

         (a) Certificates. At the expiration of the Deferral Period (or the
Additional Deferral Period referred to in Section 8.2 (d) below, where
applicable), share certificates shall be issued and delivered to the Holder, or
his legal representative, representing the number equal to the shares covered by
the Deferred Stock award.

         (b) Rights of Holder. A person entitled to receive Deferred Stock shall
not have any rights of a Stockholder by virtue of such award until the
expiration of the applicable Deferral Period and the issuance and delivery of
the certificates representing such Common Stock. The shares of Common Stock
issuable upon expiration of the Deferral Period shall not be deemed outstanding
by the Company until the expiration of such Deferral Period and the issuance and
delivery of such Common Stock to the Holder.

         (c) Vesting; Forfeiture. Upon the expiration of the Deferral Period
with respect to each award of Deferred Stock and the satisfaction of any other
applicable restrictions, terms and conditions all or part of such Deferred Stock
shall become vested in accordance with the terms of the Agreement, subject to
Section 10, below. Any such

                                       12
<PAGE>
Deferred Stock that does not vest shall be forfeited to the Company and the
Holder shall not thereafter have any rights with respect to such Deferred Stock.

         (d) Additional Deferral Period. A Holder may request to, and the
Committee may at any time, defer the receipt of an award (or an installment of
an award) for an additional specified period or until a specified event
("Additional Deferral Period"). Subject to any exceptions adopted by the
Committee, such request must generally be made at least one year prior to
expiration of the Deferral Period for such Deferred Stock award (or such
installment).

SECTION 9. OTHER STOCK-BASED AWARDS.

         Other Stock-Based Awards may be awarded, subject to limitations under
applicable law, that are denominated or payable in, valued in whole or in part
by reference to, or otherwise based on or related to, shares of Common Stock, as
deemed by the Committee to be consistent with the purposes of the Plan,
including, without limitation, purchase rights, shares of Common Stock awarded
which are not subject to any restrictions or conditions, convertible or
exchangeable debentures, or other rights convertible into shares of Common Stock
and awards valued by reference to the value of securities of or the performance
of specified Subsidiaries. Other Stock-Based Awards may be awarded either alone
or in addition to or in tandem with any other awards under this Plan or any
other plan of the Company. Each other Stock-Based Award shall be subject to such
terms and conditions as may be determined by the Committee.

SECTION 10. ACCELERATED VESTING AND EXERCISABILITY.

         10.1 Fundamental Transactions. If the Company merges with another
entity in a transaction in which the Company is not the surviving entity or if,
as a result of any other transaction or event, other securities are substituted
for the Shares or Shares may no longer be issued (each a "FUNDAMENTAL
TRANSACTION"), then, notwithstanding any other provision of this Plan, the
Committee shall do one or more of the following contingent on the closing or
completion of the Fundamental Transaction: (a) arrange for the substitution of
Awards on equity securities other than Shares (including, if appropriate, equity
securities of an entity other than the Company) in exchange for such Awards, (b)
accelerate the vesting and termination of outstanding Options so that Options
can be exercised in full before or otherwise in connection with the closing or
completion of the transaction or event but then terminate, (c) terminate the
Restriction Period or Deferral Period applicable to any outstanding Awards, and
(d) cancel Awards in exchange for cash payments to Award holders. The Committee
need not adopt the same rules for each Award or each Award holder.

         10.2 Changes of Control. The Committee may also, but need not, specify
that other transactions or events constitute a "CHANGE OF CONTROL". The
Committee may do that either before or after the transaction or event occurs.
Examples of transactions or

                                       13
<PAGE>
events that the Committee may treat as Changes of Control are: (a) the Company
or an "AFFILIATE" (as defined in Regulation D of the Securities Act) is a party
to a merger, consolidation, amalgamation, or other transaction in which the
beneficial shareholders of the Company, immediately before the transaction,
beneficially own securities representing 50% or less of the total combined
voting power or value of the Company immediately after the transaction, (b) any
person or entity, including a "group" as contemplated by Section 13(d)(3) of the
Exchange Act, acquires securities holding 30% or more of the total combined
voting power or value of the Company, or (c) as a result of or in connection
with a contested election of Company Directors, the persons who were Company
Directors immediately before the election cease to constitute a majority of the
Board. In connection with a Change of Control, notwithstanding any other
provision of this Plan, the Committee may take any one or more of the actions
described in Section 10.1. In addition, the Committee may extend the date for
the exercise of Options (but not beyond their original Expiration Date). The
Committee need not adopt the same rules for each Award or each Award holder.

         10.3 Divestiture. If the Company or an Affiliate sells or otherwise
transfers equity securities of an Affiliate to a person or entity other than the
Company or an Affiliate, or leases, exchanges or transfers all or any portion of
its assets to such a person or entity, then the Committee, in its sole and
absolute discretion, may specify that such transaction or event constitutes a
"DIVESTITURE". In connection with a Divestiture, notwithstanding any other
provision of this Plan, the Committee may take one or more of the actions
described in Section 10.1 or 10.2 with respect to Options or Option Shares held
by, for example, Employees, Directors or Consultants for whom that transaction
or event results in a Termination. The Committee need not adopt the same rules
for each Option or each Optionee.

         10.4 Dissolution. If the Company adopts a plan of dissolution, the
Committee may, in its sole and absolute discretion, cause Options to be fully
vested and exercisable (but not after their Expiration Date) before the
dissolution is completed but contingent on its completion and may cause the
Company's repurchase rights on Option Shares to lapse upon completion of the
dissolution. To the extent not exercised before the earlier of the completion of
the dissolution or their Expiration Date, Options shall terminate just before
the dissolution is completed. The Committee need not adopt the same rules for
each Option or each Optionee.

         10.5 Cut-Back to Preserve Benefits. If the Administrator determines
that the net after-tax amount to be realized by any Award holder, taking into
account any accelerated vesting, termination of Restriction or Deferral Periods,
or cash payments to that Award holder in connection with any transaction or
event addressed in this Section 10 would be greater if one or more of those
steps were not taken with respect to that Award holder's Award, then and to that
extent one or more of those steps shall not be taken.

SECTION 11. AMENDMENT AND TERMINATION.

                                       14
<PAGE>
         The Board may at any time, and from time to time, amend alter, suspend
or discontinue any of the provisions of the Plan, but no amendment, alteration,
suspension or discontinuance shall be made that would impair the rights of a
Holder under any Agreement theretofore entered into hereunder, without the
Holder's consent.

SECTION 12. TERM OF PLAN.

         12.1. Effective Date. The Plan shall be effective as of October 1,
2001, subject to the approval of the Plan by the Company's stockholders within
one year after the Effective Date. Any awards granted under the Plan prior to
such approval shall be effective when made (unless otherwise specified by the
Committee at the time of grant), but shall be conditioned upon, and subject to,
such approval of the Plan by the Company's stockholders and no awards shall vest
or otherwise become free of restrictions prior to such approval.

         12.2. Termination Date. Unless terminated by the Board, this Plan shall
continue to remain effective until such time as no further awards may be granted
and all awards granted under the Plan are no longer outstanding. Notwithstanding
the foregoing, grants of Incentive Stock Options may be made only during the ten
year period following the Effective Date.

SECTION 13. GENERAL PROVISIONS.

         13.1. Written Agreements. Each award granted under the Plan shall be
confirmed by, and shall be subject to the terms of, the Agreement executed by
the Company and the Holder, or such other document as may be determined by the
Committee. The Committee may terminate any award made under the Plan if the
Agreement relating thereto is not executed and returned to the Company within 10
days after the Agreement has been delivered to the Holder for his or her
execution.

         13.2. Unfunded Status of Plan. The Plan is intended to constitute an
"unfunded" plan for incentive and deferred compensation. With respect to any
payments not yet made to a Holder by the Company, nothing contained herein shall
give any such Holder any rights that are greater than those of a general
creditor of the Company.

         13.3. Employees.

         (a) Termination for Cause. If a Holder's Termination is due to cause,
the Committee may, in its sole discretion, take action to cause all of the
Holder's Options to terminate and cease to be exercisable at the time of
termination. "Cause" means (i) the willful and continued failure by the Holder
to substantially perform his or her duties and obligations (other than any such
failure resulting from his or her incapacity due to physical or mental illness)
after there has been delivered to the Holder a written demand for performance
from the Company which describes the basis for the Company's belief

                                       15
<PAGE>
that the Holder has not substantially performed his or her duties; or (ii) the
perpetration by the Holder of a material dishonest act or fraud against the
Company or its respective subsidiaries; or (iii) the willful engaging by the
Holder in misconduct which is materially injurious to the Company or any of its
subsidiaries, monetarily or otherwise, including but not limited to, disclosure
or misuse of any confidential information, intoxication during the performance
of Company duties, or use of unlawful controlled substances or unlawful use of
lawful controlled substances; or (iv) the Holder's conviction of a felony not
disclosed to the Company prior to initiation of service for the Company which
the Committee reasonably believes has had or will have a material detrimental
effect on the Company's reputation or business. For purposes of this paragraph,
no act, or failure to act, on Holder's part shall be considered "willful" unless
done, or omitted to be done, by the Holder in bad faith and without reasonable
belief that the action or omission was in the best interests of the Company and
its subsidiaries.

         (b) No Right of Employment. Nothing contained in the Plan or in any
award hereunder shall be deemed to confer upon any Holder who is an employee of
the Company or any Subsidiary any right to continued employment with the Company
or any Subsidiary, nor shall it interfere in any way with the right of the
Company or any Subsidiary to terminate the employment of any Holder who is an
employee at any time.

         13.4. Investment Representations; Company Policy. The Committee may
require each person acquiring shares of Common Stock pursuant to a Stock Option
or other award under the Plan to represent to and agree with the Company in
writing that the Holder is acquiring the shares for investment without a view to
distribution thereof. Each person acquiring shares of Common Stock pursuant to a
Stock Option or other award under the Plan shall be required to abide by all
policies of the Company in effect at the time of such acquisition and thereafter
with respect to the ownership and trading of the Company's securities.

         13.5. Additional Incentive Arrangements. Nothing contained in the Plan
shall prevent the Board from adopting such other or additional incentive
arrangements as it may deem desirable, including, but not limited to, the
granting of Stock Options and the awarding of Common Stock and cash otherwise
than under the Plan; and such arrangements may be either generally applicable or
applicable only in specific cases.

         13.6. Withholding Taxes. Not later than the date as of which an amount
must first be included in the gross income of the Holder for Federal income tax
purposes with respect to any Stock Option or other award under the Plan, the
Holder shall pay to the Company, or make arrangements satisfactory to the
Committee regarding the payment of, any Federal, state and local taxes of any
kind required by law to be withheld or paid with respect to such amount. If
permitted by the Committee, tax withholding or payment obligations may be
settled with Common Stock, including Common Stock that is part of the award that
gives rise to the withholding requirement. The obligations of the Company under
the Plan shall be conditioned upon such payment or arrangements and the

                                       16
<PAGE>
Company or the Holder's employer (if not the Company) shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the Holder from the Company or any Subsidiary.

         13.7. Governing Law. The Plan and all awards made and actions taken
thereunder shall be governed by and construed in accordance with the laws of the
State of Delaware (without regard to choice of law provisions).

         13.8. Other Benefit Plans. Any award granted under the Plan shall not
be deemed compensation for purposes of computing benefits under any retirement
plan of the Company or any Subsidiary and shall not affect any benefits under
any other benefit plan now or subsequently in effect under which the
availability or amount of benefits is related to the level of compensation
(unless required by specific reference in any such other plan to awards under
this Plan).

         13.9. Non-Transferability. Except as otherwise expressly provided in
the Plan or the Agreement, no right or benefit under the Plan may be alienated,
sold, assigned, hypothecated, pledged, exchanged, transferred, encumbranced or
charged, and any attempt to alienate, sell, assign, hypothecate, pledge,
exchange, transfer, encumber or charge the same shall be void.

         13.10. Applicable Laws. The obligations of the Company with respect to
all Stock Options and awards under the Plan shall be subject to (i) all
applicable laws, rules and regulations and such approvals by any governmental
agencies as may be required, including, without limitation, the Securities Act
of 1933 (the "Securities Act"), as amended, and (ii) the rules and regulations
of any securities exchange on which the Common Stock may be listed.

         13.11. Conflicts. If any of the terms or provisions of the Plan or an
Agreement conflict with the requirements of Section 422 of the Code, then such
terms or provisions shall be deemed inoperative to the extent they so conflict
with such requirements. Additionally, if this Plan or any Agreement does not
contain any provision required to be included herein under Section 422 of the
Code, such provision shall be deemed to be incorporated herein and therein with
the same force and effect as if such provision had been set out at length herein
and therein. If any of the terms or provisions of any Agreement conflict with
any terms or provisions of the Plan, then such terms or provisions shall be
deemed inoperative to the extent they so conflict with the requirements of the
Plan. Additionally, if any Agreement does not contain any provision required to
be included therein under the Plan, such provision shall be deemed to be
incorporated therein with the same force and effect as if such provision had
been set out at length therein.

                                [END OF DOCUMENT]

                                       17

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