Document:

<PAGE>

                                                                  EXHIBIT 10.70

                              CV THERAPEUTICS, INC.

                        2000 NONSTATUTORY INCENTIVE PLAN

                 ADOPTED BY THE BOARD OF DIRECTORS JULY 19, 2000
        AMENDED AND RESTATED BY THE BOARD OF DIRECTORS FEBRUARY 9, 2001

1.      PURPOSES.

        (a)   ELIGIBLE STOCK AWARD RECIPIENTS. Only Eligible Participants may
receive Stock Awards under this Plan.

        (b)   AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a
means by which Eligible Participants may be given an opportunity to benefit from
increases in value of the Common Stock through the granting of the following
Stock Awards: (i) Nonstatutory Stock Options, (ii) stock bonuses and
(iii) rights to acquire restricted stock.

        (c)   GENERAL PURPOSE. The Company, by means of the Plan, seeks to
retain the services of the group of persons eligible to receive Stock Awards, to
secure and retain the services of new members of this group and to provide
incentives for such persons to exert maximum efforts for the success of the
Company and its Affiliates.

2.      DEFINITIONS.

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

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

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

        (d)   "COMMITTEE" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 3(c).

        (e)   "COMMON STOCK" means the common stock of the Company.

        (f)   "COMPANY" means CV Therapeutics, Inc., a Delaware corporation.

        (g)   "CONSULTANT" means any person, including an advisor, (i) engaged
by the Company or an Affiliate to render consulting or advisory services and who
is compensated for such services or (ii) who is a member of the Board of
Directors of an Affiliate. However, the term "Consultant" shall not include
Directors.

        (h)   "CONTINUOUS SERVICE" means that the Holder's service with the
Company or an Affiliate, whether as an Employee or Consultant, is not
interrupted or terminated. The Holder's

                                      1.

<PAGE>

Continuous Service shall not be deemed to have terminated merely because of a
change in the capacity in which the Holder renders service to the Company or an
Affiliate as an Employee or Consultant or a change in the entity for which the
Holder renders such service, provided that there is no interruption or
termination of the Holder's service to the Company or an Affiliate. For example,
a change in status without interruption from an Employee of the Company to a
Consultant of an Affiliate will not constitute an interruption of Continuous
Service. The Board or the chief executive officer of the Company, in that
party's sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of any leave of absence approved by that
party, including sick leave, military leave or any other personal leave.

        (i)   "DIRECTOR" means a member of the Board of Directors of the
Company.

        (j)   "DISABILITY" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

        (k)   "ELIGIBLE PARTICIPANT" means any Employee or Consultant; provided,
however, that except as provided in the following sentence, no Employee or
Consultant who is a Director or an Officer may be granted Stock Awards under
this Plan. Notwithstanding the preceding sentence, an Officer may be an Eligible
Participant if he or she is granted a Stock Award in connection with his or her
initial commencement of employment with the Company and such grant is an
essential inducement to his or her entering into a contract of employment with
the Company.

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

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

        (n)   "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock determined as follows:

              (i)   If the Common Stock is listed on any established stock
exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
the Fair Market Value of a share of Common Stock shall be the closing sales
price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange or market (or the exchange or market with the greatest volume
of trading in the Common Stock) on the last market trading day prior to the day
of determination, as reported in THE WALL STREET JOURNAL or such other source as
the Board deems reliable.

              (ii)  In the absence of such markets for the Common Stock, the
Fair Market Value shall be determined in good faith by the Board.

        (o)   "HOLDER" means a person to whom a Stock Award is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding Stock
Award.

                                       2.

<PAGE>

        (p)   "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder. Incentive Stock Options may not be granted
under the Plan.

        (q)   "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

        (r)   "OFFICER" means a person who is either (i) an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder or (ii) an officer of the Company within the
meaning of Section 4310(c)(25)(G)(i) of the NASD Manual and Notices to Members
(the "NASD Manual"), or any successor provision thereto.

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

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

        (u)   "OPTIONHOLDER" means a person to whom an Option is granted

pursuant to the Plan or, if applicable, such other person who holds an
outstanding Option.

        (v)   "PLAN" means this CV Therapeutics, Inc. 2000 Nonstatutory
Incentive Plan.

        (w)   "RULE 16b-3" means Rule 16b-3 promulgated under the Exchange Act
or any successor to Rule 16b-3, as in effect from time to time.

        (x)   "SECURITIES ACT" means the Securities Act of 1933, as amended.

        (y)   "STOCK AWARD" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

        (z)   "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a Holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant (including a stock bonus agreement or restricted
stock purchase agreement). Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

3.      ADMINISTRATION.

        (a)   ADMINISTRATION BY BOARD. The Board shall administer the Plan
unless and until the Board delegates administration to a Committee, as
provided in subsection 3(c).

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

              (i)   To determine from time to time which of the persons eligible
under the Plan shall be granted Stock Awards; when and how each Stock Award
shall be granted; what type or combination of types of Stock Award shall
be granted; the provisions of each Stock

                                       3.

<PAGE>

Award granted (which need not be identical), including the time or times when
a person shall be permitted to receive Common Stock pursuant to a Stock Award;
and the number of shares of Common Stock with respect to which a Stock Award
shall be granted to each such person.

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

              (iii) To amend the Plan or a Stock Award as provided in
Section 12.

              (iv)  To terminate or suspend the Plan as provided in Section 13.

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

        (c)   DELEGATION TO COMMITTEE. The Board may delegate administration of
the Plan to a Committee or Committees of one (1) or more members of the Board.
The term "Committee" shall apply to any person or persons to whom such authority
has been delegated. If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan.

        (d)   EFFECT OF BOARD'S DECISION. All determinations, interpretations
and constructions made by the Board in good faith shall not be subject to
review by any person and shall be final, binding and conclusive on all
persons.

4.       SHARES SUBJECT TO THE PLAN.

        (a)   SHARE RESERVE. Subject to the provisions of Section 11 relating to
adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Stock Awards shall not exceed in the aggregate six hundred thousand
(600,000) shares of Common Stock.

        (b)   REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Stock Award shall revert to and again become available for issuance under
the Plan.

        (c)   SOURCE OF SHARES. The shares of Common Stock subject to the Plan
may be unissued shares or reacquired shares, bought on the market or otherwise.

                                       4.

<PAGE>

5.      ELIGIBILITY.

        (a)   ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Stock Awards may be granted
only to Eligible Participants.

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

6.      OPTION PROVISIONS.

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

        (a)   OPTION EXERCISE PRICE. The exercise price of each Nonstatutory
Stock Option shall be not less than one hundred percent (100%) of the Fair
Market Value of the Common Stock subject to the Option on the date the Option is
granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be
granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution for
another option in a manner satisfying the provisions of Section 424(a) of the
Code.

        (b)   CONSIDERATION. The purchase price of Common Stock acquired
pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (i) in cash at the time the Option is
exercised or (ii) at the discretion of the Board at the time of the grant of
the Option (or subsequently in the case of a Nonstatutory Stock Option) (1) by
delivery to the Company of other Common Stock, (2) according to a deferred
payment or other similar arrangement with the Optionholder or (3) in any other
form of legal consideration that may be acceptable to the Board. Unless
otherwise specifically provided in the Option, the purchase price of Common
Stock acquired pursuant to an Option that is paid by delivery to the Company of
other Common Stock acquired, directly or indirectly from the Company, shall be
paid only by shares of the Common Stock of the Company that have been held for
more than six (6) months (or such longer or shorter period of time required to
avoid a charge to earnings for financial accounting purposes). At any time that
the Company is incorporated in Delaware, payment of the Common Stock's "par
value," as defined in the Delaware General Corporation Law, shall not be made by
deferred payment.

        In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as

                                      5.

<PAGE>

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

        (c)   TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory
Stock Option shall be transferable to the extent provided in the Option
Agreement. If the Nonstatutory Stock Option does not provide for
transferability, then the Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution and shall be
exercisable during the lifetime of the Optionholder only by the Optionholder.
Notwithstanding the foregoing, the Optionholder may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionholder, shall thereafter be
entitled to exercise the Option.

       (d)    VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(d) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

       (e)    TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability), the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination) but only within such period of time ending on the earlier of
(i) the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, after termination, the Optionholder does not exercise his
or her Option within the time specified in the Option Agreement, the Option
shall terminate.

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

       (g)   DISABILITY OF OPTIONHOLDER. In the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period specified in
the Option Agreement) or (ii) the expiration of the term of the Option as set
forth in the Option

                                       6.

<PAGE>

Agreement. If, after termination, the Optionholder does not exercise his or her
Option within the time specified herein, the Option shall terminate.

        (h)   DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or
(ii) the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
Option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but
only within the period ending on the earlier of (1) the date eighteen (18)
months following the date of death (or such longer or shorter period specified
in the Option Agreement) or (2) the expiration of the term of such Option as set
forth in the Option Agreement. If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate.

        (i)   EARLY EXERCISE. The Option may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Any unvested shares of Common Stock so purchased may
be subject to a repurchase option in favor of the Company or to any other
restriction the Board determines to be appropriate. The Company will not
exercise its repurchase option until at least six (6) months (or such longer or
shorter period of time required to avoid a charge to earnings for financial
accounting purposes) have elapsed following exercise of the Option unless the
Board otherwise specifically provides in the Option.

7.      PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

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

               (i)   CONSIDERATION. A stock bonus may be awarded in
consideration for past services actually rendered to the Company or an
Affiliate for its benefit.

               (ii)  VESTING. Shares of Common Stock awarded under the stock
bonus agreement may, but need not, be subject to a share repurchase option in
favor of the Company in accordance with a vesting schedule to be determined by
the Board.

               (iii) TERMINATION OF HOLDER'S CONTINUOUS SERVICE. In the event a
Holder's Continuous Service terminates, the Company may reacquire any or all of
the shares of Common Stock held by the Holder which have not vested as of the
date of termination under the terms of the stock bonus agreement.

                                       7.

<PAGE>

               (iv)  TRANSFERABILITY. Rights to acquire shares of Common Stock
under the stock bonus agreement shall be transferable by the Holder only upon
such terms and conditions as are set forth in the stock bonus agreement, as the
Board shall determine in its discretion, so long as Common Stock awarded under
the stock bonus agreement remains subject to the terms of the stock bonus
agreement.

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

              (i)   PURCHASE PRICE. The purchase price under each restricted
stock purchase agreement shall be such amount as the Board shall determine and
designate in such restricted stock purchase agreement. The purchase price shall
not be less than one hundred percent (100%) of the Common Stock's Fair Market
Value on the date such award is made or at the time the purchase is consummated.

              (ii)  CONSIDERATION. The purchase price of Common Stock acquired
pursuant to the restricted stock purchase agreement shall be paid either:
(i) in cash at the time of purchase; (ii) at the discretion of the
Board, according to a deferred payment or other similar arrangement with the
Holder; or (iii) in any other form of legal consideration that may be acceptable
to the Board in its discretion; provided, however, that at any time that the
Company is incorporated in Delaware, then payment of the Common Stock's "par
value," as defined in the Delaware General Corporation Law, shall not be made by
deferred payment.

              (iii) VESTING. Shares of Common Stock acquired under the
restricted stock purchase agreement shall be subject to a share repurchase
option in favor of the Company pursuant to a vesting schedule to be determined
by the Board in accordance with the following guidelines: (A) the vesting period
for shares of Common Stock acquired under restricted stock purchase agreements
shall be no less than three (3) years unless based upon performance milestones,
in which event the vesting period shall be no less than one (1) year; and
(B) notwithstanding the provisions of Section 10(a), the Board may not
accelerate such vesting except under extraordinary circumstances, such as the
death, disability or divorce of the Holder, or a change in corporate structure
of the Company.

              (iv)  TERMINATION OF HOLDER'S CONTINUOUS SERVICE. In the event a
Holder's Continuous Service terminates, the Company may repurchase or otherwise
reacquire any or all of the shares of Common Stock held by the Holder which have
not vested as of the date of termination under the terms of the restricted stock
purchase agreement.

              (v)   TRANSFERABILITY. Rights to acquire shares of Common Stock
under the restricted stock purchase agreement shall be transferable by the
Holder only upon such terms and conditions as are set forth in the restricted
stock purchase agreement, as the Board shall

                                       8.

<PAGE>

determine in its discretion, so long as Common Stock awarded under the
restricted stock purchase agreement remains subject to the terms of the
restricted stock purchase agreement.

8.      COVENANTS OF THE COMPANY.

        (a)   AVAILABILITY OF SHARES. During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

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

9.      USE OF PROCEEDS FROM STOCK.

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

10.     MISCELLANEOUS.

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

        (b)   STOCKHOLDER RIGHTS. No Holder shall be deemed to be the holder of,
or to have any of the rights of a holder with respect to, any shares of Common
Stock subject to such Stock Award unless and until such Holder has satisfied all
requirements for exercise of the Stock Award pursuant to its terms.

        (c)   NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Holder any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Stock Award was granted or shall affect the
right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause or (ii) the service of
a Consultant pursuant to the terms of such Consultant's agreement with the
Company or an Affiliate.

        (d)   INVESTMENT ASSURANCES. The Company may require a Holder, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances

                                      9.

<PAGE>

satisfactory to the Company as to the Holder's knowledge and experience in
financial and business matters and/or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in
financial and business matters and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of
exercising the Stock Award; and (ii) to give written assurances satisfactory to
the Company stating that the Holder is acquiring Common Stock subject to the
Stock Award for the Holder's own account and not with any present intention of
selling or otherwise distributing the Common Stock. The foregoing requirements,
and any assurances given pursuant to such requirements, shall be inoperative if
(1) the issuance of the shares of Common Stock upon the exercise or acquisition
of Common Stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act or (2) as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the Common
Stock.

        (e)   WITHHOLDING OBLIGATIONS. To the extent provided by the terms of a
Stock Award Agreement, the Holder may satisfy any federal, state or local tax
withholding obligation relating to the exercise or acquisition of Common Stock
under a Stock Award by any of the following means (in addition to the Company's
right to withhold from any compensation paid to the Holder by the Company) or by
a combination of such means: (i) tendering a cash payment; (ii) authorizing the
Company to withhold shares of Common Stock from the shares of Common Stock
otherwise issuable to the Holder as a result of the exercise or acquisition of
Common Stock under the Stock Award, provided, however, that no shares of Common
Stock are withheld with a value exceeding the minimum amount of tax required to
be withheld by law; or (iii) delivering to the Company owned and unencumbered
shares of Common Stock.

11.     ADJUSTMENTS UPON CHANGES IN STOCK.

        (a) CAPITALIZATION ADJUSTMENTS. If any change is made in the Common
Stock subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject to the Plan
pursuant to subsection 4(a) and the maximum number of securities subject to
award to any person pursuant to subsection 5(c), and the outstanding Stock
Awards will be appropriately adjusted in the class(es) and number of securities
and price per share of Common Stock subject to such outstanding Stock Awards.
The Board shall make such adjustments, and its determination shall be final,
binding and conclusive. The conversion of any convertible securities of the
Company shall not be treated as a transaction "without receipt of consideration"
by the Company.

        (b)   DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall terminate
immediately prior to such event.

                                      10.

<PAGE>

        (c)   CHANGE OF CONTROL. (i) Subject to clause (ii) below, in the
event of a Change of Control, to the extent permitted by law, any surviving
corporation or acquiring corporation may assume any Stock Awards outstanding
under the Plan or substitute similar stock awards (including awards to acquire
the same consideration paid to the stockholders in the Change of Control) for
those outstanding under the Plan. In the event any surviving corporation or
acquiring corporation does not assume such Stock Awards or substitute similar
stock awards for those outstanding under the Plan, then with respect to Stock
Awards held by Holders whose Continuous Service has not terminated, the vesting
of such Stock Awards (and, if applicable, the time during which such Stock
Awards may be exercised) shall be accelerated in full, and the Stock Awards
shall terminate if not exercised (if applicable) at or prior to such event. With
respect to any other Stock Awards outstanding under the Plan, such Stock Awards
shall terminate if not exercised (if applicable) prior to such event.

         (ii) In the event of a Change of Control not approved by the Board,
each outstanding Stock Award under the Plan shall become fully vested, and the
Company's right of repurchase shall lapse with respect to shares received upon
exercise of a Stock Award prior to full vesting, notwithstanding the terms of
the Stock Award or any early exercise stock purchase agreement, immediately
prior to the consummation of such Change of Control.

         For purposes of this Plan, "Change of Control" means: (i) a sale of
substantially all of the assets of the Company; (ii) a merger or consolidation
in which the Company is not the surviving corporation (other than a merger or
consolidation in which shareholders immediately before the merger or
consolidation have, immediately after the merger or consolidation, equal or
greater stock voting power); (iii) a reverse merger in which the Company is the
surviving corporation but the shares of Common Stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise (other than a reverse
merger in which stockholders immediately before the merger have, immediately
after the merger, greater stock voting power); or (iv) any transaction or series
of related transactions in which in excess of 50% of the Company's voting power
is transferred.

12.      AMENDMENT OF THE PLAN AND STOCK AWARDS.

        (a)   AMENDMENT OF PLAN. The Board at any time, and from time to time,
may amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval
is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3
or any Nasdaq or securities exchange listing requirements.

        (b)   CONTEMPLATED AMENDMENTS. It is expressly contemplated that the
Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be
provided under the provisions of the Code.

        (c)   NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted

before amendment of the Plan shall not be impaired by any amendment of the Plan
unless (i) the Company requests the consent of the Holder and (ii) the Holder
consents in writing.

                                      11.

<PAGE>

        (d)   AMENDMENT OF STOCK AWARDS. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Holder and (ii) the
Holder consents in writing.

13.     TERMINATION OR SUSPENSION OF THE PLAN.

        (a) PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board. No Stock Awards
may be granted under the Plan while the Plan is suspended or after it is
terminated.

        (b) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan
is in effect except with the written consent of the Holder.

14.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective upon its adoption by the Board.

15.      CHOICE OF LAW/INTERPRETATION.

        The law of the State of Delaware shall govern all questions concerning
the construction, validity and interpretation of this Plan, without regard to
such state's conflict of laws rules. Notwithstanding the foregoing, it is
expressly intended that approval of the Company's stockholders not be required
as a condition of the effectiveness of the Plan, and the Plan's provisions shall
be interpreted in a manner consistent with such intent for all purposes
(including without limitation, for purposes of determining whether stockholder
approval of the Plan is necessary pursuant to the NASD Manual or any successor
provisions thereto).

                                      12.<PAGE>

                                                                    EXHIBIT 10.4

                         TUMBLEWEED COMMUNICATIONS CORP.

                        2000 NSO INCENTIVE STOCK PLAN
   (AS AMENDED ON OCTOBER 17, 2000, NOVEMBER 20, 2000 AND MARCH 4, 2001)

SECTION 1.  GENERAL PURPOSE OF PLAN; DEFINITIONS.

         The name of this plan is the Tumbleweed Communications Corp. 2000
NSO Incentive Stock Plan (the "Plan"). The Plan was adopted by the Board
(defined below) on July 10, 2000 (the "Effective Date") and was amended by
the Board to increase the number of shares reserved for issuance under the
Plan on October 17, 2000, November 20, 2000 and March 4, 2001. The purpose of
the Plan is to enable the Company to attract and retain highly qualified
personnel who will contribute to the Company's success and to provide
incentives to Participants (defined below) that are linked directly to
increases in stockholder value and will therefore inure to the benefit of all
stockholders of the Company. This Plan is intended to qualify as a "broadly
based" plan for purposes of the shareholder approval rules promulgated by the
NASD (defined below).

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

         (1) "Administrator" means the Board, or if and to the extent the Board
does not administer the Plan, the Committee in accordance with Section 2 below.

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

         (3) "Code" means the Internal Revenue Code of 1986, as amended from
time to time, or any successor thereto.

         (4) "Committee" means any committee the Board may appoint to administer
the Plan. To the extent necessary and desirable, the Committee shall be composed
entirely of individuals who meet the qualifications referred to in Rule 16b-3
under the Exchange Act. If at any time or to any extent the Board shall not
administer the Plan, then the functions of the Board specified in the Plan shall
be exercised by the Committee.

         (5) "Company" means Tumbleweed Communications Corp., a Delaware
corporation (or any successor corporation).

         (6) "Deferred Stock" means the right to receive Stock at the end of a
specified deferral period granted pursuant to Section 7 below.

         (7) "Disability" means the inability of a Participant to perform
substantially his or her duties and responsibilities to the Company or to any
Parent or Subsidiary by reason of a physical or mental disability or infirmity
(i) for a continuous

<PAGE>

period of six months, or (ii) at such earlier time as the Participant submits
medical evidence satisfactory to the Administrator that the Participant has a
physical or mental disability or infirmity that will likely prevent the
Participant from returning to the performance of the Participant's work duties
for six months or longer. The date of such Disability shall be the last day of
such six-month period or the day on which the Participant submits such
satisfactory medical evidence, as the case may be.

         (8) "Eligible Recipient" means (i) an employee, consultant or advisor
of the Company or of any Parent or Subsidiary (other than any officer or
director of the Company or of any Parent or Subsidiary) or (ii) an individual
who becomes an officer or director of the Company or of any Parent or Subsidiary
following the Effective Date.

         (9) "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time.

         (10) "Fair Market Value" means, as of any given date, with respect to
any awards granted hereunder, (A) if the Stock is publicly traded, the closing
sale price of a share of Stock, (B) the fair market value of a share of Stock as
determined in accordance with a method prescribed in the agreement evidencing
any award hereunder or (C) the fair market value of a share of Stock as
otherwise determined by the Administrator in the good faith exercise of its
discretion.

         (11) "NASD" means the National Association of Securities Dealers, Inc.

         (12) "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations in the chain (other than the Company) owns stock possessing 50% or
more of the combined voting power of all classes of stock in one of the other
corporations in the chain.

         (13) "Participant" means any Eligible Recipient selected by the
Administrator, pursuant to the Administrator's authority in Section 2 below, to
receive grants of Stock Options, Stock Appreciation Rights, awards of Restricted
Stock, Deferred Stock, or Performance Shares or any combination of the
foregoing.

         (14) "Performance Shares" means shares of Stock that are subject to
restrictions based upon the attainment of specified performance objectives
granted pursuant to Section 7 below.

         (15) "Restricted Stock" means shares of Stock subject to certain
restrictions granted pursuant to Section 7 below.

         (16) "Stock" means the common stock, par value $0.001 per share, of the
Company.

         (17) "Stock Appreciation Right" means the right pursuant to an award
granted under Section 6 below to receive an amount equal to the excess, if any,
of (A) the

                                       2

<PAGE>

Fair Market Value, as of the date such Stock Appreciation Right or portion
thereof is surrendered, of the shares of Stock covered by such right or such
portion thereof, over (B) the aggregate exercise price of such right or such
portion thereof.

         (18) "Stock Option" means an option to purchase shares of Stock granted
pursuant to Section 5.

         (19) "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations (other than the last corporation) in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in the chain.

SECTION 2.  ADMINISTRATION.

         To the extent necessary and desirable, the Plan shall be administered
in accordance with the requirements of Rule 16b-3 under the Exchange Act ("Rule
16b-3") by the Board or, at the Board's sole discretion, by the Committee, which
shall be appointed by the Board, and which shall serve at the pleasure of the
Board.

         Pursuant to the terms of the Plan, the Administrator shall have the
power and authority to grant to Eligible Recipients pursuant to the terms of the
Plan: (a) Stock Options, (b) Stock Appreciation Rights, (c) awards of Restricted
Stock, Deferred Stock or Performance Shares or (d) any combination of the
foregoing. In particular, the Administrator shall have the authority:

              (a) to select those Eligible Recipients who shall be Participants;

              (b) to determine whether and to what extent Stock Options, Stock
Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance
Shares or a combination of any of the foregoing, are to be granted hereunder to
Participants;

              (c) to determine the number of shares of Stock to be covered by
each award granted hereunder;

              (d) to determine the terms and conditions, not inconsistent with
the terms of the Plan, of each award granted hereunder (including, but not
limited to, (x) the restrictions applicable to awards of Restricted Stock or
Deferred Stock and the conditions under which restrictions applicable to such
awards of Restricted Stock or Deferred Stock shall lapse, and (y) the
performance goals and periods applicable to awards of Performance Shares);

              (e) to determine the terms and conditions, not inconsistent with
the terms of the Plan, which shall govern all written instruments evidencing
Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred
Stock or Performance Shares or any combination of the foregoing granted
hereunder; and

                                       3

<PAGE>

              (f) to reduce the option price of any Stock Option to the then
current Fair Market Value if the Fair Market Value of the Stock covered by such
Stock Option has declined since the date such Stock Option was granted.

         The Administrator shall have the authority, in its sole discretion, 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
any agreements relating thereto); and to otherwise supervise the administration
of the Plan.

         All decisions made by the Administrator pursuant to the provisions of
the Plan shall be final, conclusive and binding on all persons, including, but
not limited to the Company and the Participants.

SECTION 3.  STOCK SUBJECT TO PLAN.

         The total number of shares of Stock reserved and available for issuance
under the Plan shall be 4,181,500 shares. Such shares may consist, in whole or
in part, of authorized and unissued shares or treasury shares. To the extent
that (i) a Stock Option expires or is otherwise terminated without being
exercised, or (ii) any shares of Stock subject to any award of Restricted Stock,
Deferred Stock or Performance Shares granted hereunder are forfeited, such
shares of Stock shall again be available for issuance in connection with future
awards granted under the Plan. If any shares of Stock have been pledged as
collateral for indebtedness incurred by a Participant in connection with the
exercise of a Stock Option and such shares of Stock are returned to the Company
in satisfaction of such indebtedness, such shares of Stock shall again be
available for issuance in connection with future awards granted under the Plan.

         In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend or other change in corporate structure
affecting the Stock, an equitable substitution or proportionate adjustment shall
be made in (i) the aggregate number of shares of Stock reserved for issuance
under the Plan, (ii) the kind, number and option price of shares of Stock
subject to outstanding Stock Options granted under the Plan, and (iii) the kind,
number and purchase price of shares of Stock subject to outstanding awards of
Restricted Stock, Deferred Stock and Performance Shares granted under the Plan,
in each case as may be determined by the Administrator, in its sole discretion.
Such other substitutions or adjustments shall be made as may be determined by
the Administrator, in its sole discretion. An adjusted option price shall also
be used to determine the amount payable by the Company upon the exercise of any
Stock Appreciation Right related to any Stock Option. In connection with any
event described in this paragraph, the Administrator may provide, in its sole
discretion, for the cancellation of any outstanding awards and payment in cash
or other property therefor.

                                       4

<PAGE>

SECTION 4.  ELIGIBILITY.

         Eligible Recipients shall be eligible to be granted Stock Options,
Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or
Performance Shares or any combination of the foregoing hereunder. The
Participants under the Plan shall be selected from time to time by the
Administrator, in its sole discretion, from among the Eligible Recipients, and
the Administrator shall determine, in its sole discretion, the number of shares
of Stock covered by each such award.

SECTION 5.  STOCK OPTIONS.

         Stock Options may be granted alone or in addition to other awards
granted under the Plan. Any Stock Option granted under the Plan shall be in such
form as the Administrator may from time to time approve, and the provisions of
Stock Option awards need not be the same with respect to each Participant.
Participants who are granted Stock Options shall enter into a subscription
and/or award agreement with the Company, in such form as the Administrator shall
determine, which agreement shall set forth, among other things, the option price
of the Stock Option, the term of the Stock Option and provisions regarding
exercisability of the Stock Option granted thereunder.

         The Stock Options granted under the Plan are not intended to qualify as
"incentive stock options" within the meaning of Section 422 of the Code.

         The Administrator shall have the authority to grant to any officer or
employee of the Company or of any Parent or Subsidiary (including directors who
are also officers of the Company) Stock Options (with or without Stock
Appreciation Rights). More than one Stock Option may be granted to the same
Participant and be outstanding concurrently hereunder.

         Stock Options granted under the Plan shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Administrator shall deem
desirable:

         (1) OPTION PRICE. The option price per share of Stock purchasable under
a Stock Option shall be determined by the Administrator in its sole discretion
at the time of grant but shall not be less than the par value of the Stock on
such date.

         (2) OPTION TERM. The term of each Stock Option shall be fixed by the
Administrator.

         (3) EXERCISABILITY. Stock Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Administrator at or after the time of grant. The Administrator may provide at
the time of grant, in its sole discretion, that any Stock Option shall be
exercisable only in installments, and the Administrator may waive such
installment exercise provisions at any time, in whole or in part, based on such
factors as the Administrator may determine, in its sole discretion, including
but not limited to in connection with any change of control.

                                       5

<PAGE>

         (4) METHOD OF EXERCISE. Subject to paragraph (3) of this Section 5,
Stock Options may be exercised in whole or in part at any time during the option
period, by giving written notice of exercise to the Company specifying the
number of shares of Stock to be purchased, accompanied by payment in full of the
purchase price in cash or its equivalent, as determined by the Administrator. As
determined by the Administrator, in its sole discretion, payment in whole or in
part may also be made (i) by means of any cashless exercise procedure approved
by the Administrator, (ii) in the form of unrestricted Stock already owned by
the Participant which, (x) in the case of unrestricted Stock acquired upon
exercise of an option, have been owned by the Participant for more than six
months on the date of surrender, and (y) has a Fair Market Value on the date of
surrender equal to the aggregate option price of the Stock as to which such
Stock Option shall be exercised, or (iii) in the case of the exercise of a Stock
Option, in the form of Restricted Stock or Performance Shares subject to an
award hereunder (based, in each case, on the Fair Market Value of the Stock on
the date the Stock Option is exercised). If payment of the option price of a
Stock Option is made in whole or in part in the form of Restricted Stock or
Performance Shares, the shares of Stock received upon the exercise of such Stock
Option shall be restricted in accordance with the original terms of the
Restricted Stock award or Performance Shares award in question, except that the
Administrator may direct that such restrictions shall apply only to that number
of shares of Stock equal to the number of shares surrendered upon the exercise
of such Stock Option. A Participant shall generally have the rights to dividends
and any other rights of a stockholder with respect to the Stock subject to the
Stock Option only after the Participant has given written notice of exercise,
has paid in full for such shares, and, if requested, has given the
representation described in paragraph (2) of Section 10 below.

         The Administrator may require the surrender of all or a portion of any
Stock Option granted under the Plan as a condition precedent to the grant of a
new Stock Option. Subject to the provisions of the Plan, such new Stock Option
shall be exercisable at the price, during such period and on such other terms
and conditions as are specified by the Administrator at the time the new Stock
Option is granted. Upon their surrender, Stock Options shall be canceled and the
shares of Stock previously subject to such canceled Stock Options shall again be
available for future grants of Stock Options and other awards hereunder.

         (5) LOANS. The Company or any Parent or Subsidiary may make loans
available to Stock Option holders in connection with the exercise of outstanding
Stock Options, as the Administrator, in its sole discretion, may determine. Such
loans shall (i) be evidenced by promissory notes entered into by the Stock
Option holders in favor of the Company or any Parent or Subsidiary, (ii) be
subject to the terms and conditions set forth in this Section 5(5) and such
other terms and conditions, not inconsistent with the Plan, as the Administrator
shall determine, (iii) bear interest at the applicable Federal interest rate or
such other rate as the Administrator shall determine, and (iv) be subject to
Board approval (or to approval by the Administrator to the extent the Board may
delegate such authority). In no event may the principal amount of any such loan
exceed the sum of (x) the aggregate option price less the par value (if any) of
the shares of Stock covered

                                       6

<PAGE>

by the Stock Option, or portion thereof, exercised by the holder, and (y) any
Federal, state, and local income tax attributable to such exercise. The initial
term of the loan, the schedule of payments of principal and interest under the
loan, the extent to which the loan is to be with or without recourse against the
holder with respect to principal and/or interest and the conditions upon which
the loan will become payable in the event of the holder's termination of service
to the Company or to any Parent or Subsidiary shall be determined by the
Administrator. Unless the Administrator determines otherwise, when a loan is
made, shares of Stock having a Fair Market Value at least equal to the principal
amount of the loan shall be pledged by the holder to the Company as security for
payment of the unpaid balance of the loan, and such pledge shall be evidenced by
a pledge agreement, the terms of which shall be determined by the Administrator,
in its sole discretion; provided, however, that each loan shall comply with all
applicable laws, regulations and rules of the Board of Governors of the Federal
Reserve System and any other governmental agency having jurisdiction.

         (6) NON-TRANSFERABILITY OF STOCK OPTIONS. Except under the laws of
descent and distribution, unless otherwise determined by the Administrator, the
optionee shall not be permitted to sell, transfer, pledge or assign any Stock
Option, and all Stock Options shall be exercisable, during the optionee's
lifetime, only by the optionee; provided, however, that the optionee shall be
permitted to transfer one or more Stock Options to a trust controlled by the
optionee during the optionee's lifetime for estate planning purposes.

         (7) TERMINATION OF EMPLOYMENT OR SERVICE. If a Participant's employment
with or service as a director, consultant or advisor to the Company or to any
Parent or Subsidiary terminates by reason of his or her death, Disability or for
any other reason, the Stock Option may thereafter be exercised to the extent
provided in the agreement evidencing such Stock Option, or as otherwise
determined by the Administrator following termination of employment.

SECTION 6.  STOCK APPRECIATION RIGHTS.

         Stock Appreciation Rights may be granted either alone ("Free Standing
Rights") or in conjunction with all or part of any Stock Option granted under
the Plan ("Related Rights"). Related Rights may be granted either at or after
the time of the grant of the Stock Option. The Administrator shall determine the
Eligible Recipients to whom, and the time or times at which, grants of Stock
Appreciation Rights shall be made; the number of shares of Stock to be awarded,
the exercise price, and all other conditions of Stock Appreciation Rights. The
provisions of Stock Appreciation Rights need not be the same with respect to
each Participant.

         Stock Appreciation Rights granted under the Plan shall be subject to
the following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Administrator
shall deem desirable:

                                       7

<PAGE>

         (1) AWARDS. The prospective recipient of a Stock Appreciation Right
shall not have any rights with respect to such award, unless and until such
recipient has executed an agreement evidencing the award (a "Stock Appreciation
Right Agreement") and delivered a fully executed copy thereof to the Company,
within a period of sixty days (or such other period as the Administrator may
specify) after the award date. Participants who are granted Stock Appreciation
Rights shall have no rights as stockholders of the Company with respect to the
grant or exercise of such rights.

         (2) EXERCISABILITY.

              (a) Stock Appreciation Rights that are Free Standing Rights ("Free
Standing Stock Appreciation Rights") shall be exercisable at such time or times
and subject to such terms and conditions as shall be determined by the
Administrator at or after grant; provided, however, that no Free Standing Stock
Appreciation Right shall be exercisable during the first six months of its term,
except that this additional limitation shall not apply in the event of a
Participant's death or Disability prior to the expiration of such six-month
period.

              (b) Stock Appreciation Rights that are Related Rights ("Related
Stock Appreciation Rights") shall be exercisable only at such time or times and
to the extent that the Stock Options to which they relate shall be exercisable
in accordance with the provisions of Section 5 above and this Section 6 of the
Plan; provided, however, that no Related Stock Appreciation Right shall be
exercisable during the first six months of its term, except that this additional
limitation shall not apply in the event of a Participant's death or Disability
prior to the expiration of such six-month period.

         (3) PAYMENT UPON EXERCISE.

              (a) Upon the exercise of a Free Standing Stock Appreciation Right,
the Participant shall be entitled to receive up to, but not more than, an amount
in cash or that number of shares of Stock (or any combination of cash and shares
of Stock) equal in value to the excess of the Fair Market Value of one share of
Stock as of the date of exercise over the price per share specified in the Free
Standing Stock Appreciation Right (which price shall be no less than 100% of the
Fair Market Value of the Stock on the date of grant) multiplied by the number of
shares of Stock in respect of which the Free Standing Stock Appreciation Right
is being exercised, with the Administrator having the right to determine the
form of payment.

              (b) A Related Right may be exercised by a Participant by
surrendering the applicable portion of the related Stock Option. Upon such
exercise and surrender, the Participant shall be entitled to receive up to, but
not more than, an amount in cash or that number of shares of Stock (or any
combination of cash and shares of Stock) equal in value to the excess of the
Fair Market Value of one share of Stock as of the date of exercise over the
option price per share specified in the related Stock Option multiplied by the
number of shares of Stock in respect of which the Related Stock Appreciation
Right is being exercised, with the Administrator having the right to

                                       8

<PAGE>

determine the form of payment. Stock Options which have been so surrendered, in
whole or in part, shall no longer be exercisable to the extent the Related
Rights have been so exercised.

         (4) NON-TRANSFERABILITY.

              (a) Free Standing Stock Appreciation Rights shall be transferable
only when and to the extent that a Stock Option would be transferable under
paragraph (6) of Section 5 of the Plan.

              (b) Related Stock Appreciation Rights shall be transferable only
when and to the extent that the underlying Stock Option would be transferable
under paragraph (6) of Section 5 of the Plan.

         (5) TERMINATION OF EMPLOYMENT OR SERVICE.

              (a) In the event of the termination of employment or service of a
Participant who has been granted one or more Free Standing Stock Appreciation
Rights, such rights shall be exercisable at such time or times and subject to
such terms and conditions as shall be determined by the Administrator at or
after grant.

              (b) In the event of the termination of employment or service of a
Participant who has been granted one or more Related Stock Appreciation Rights,
such rights shall be exercisable at such time or times and subject to such terms
and conditions as set forth in the related Stock Options.

         (6) TERM.

              (a) The term of each Free Standing Stock Appreciation Right shall
be fixed by the Administrator, but no Free Standing Stock Appreciation Right
shall be exercisable more than ten years after the date such right is granted.

              (b) The term of each Related Stock Appreciation Right shall be the
term of the Stock Option to which it relates, but no Related Stock Appreciation
Right shall be exercisable more than ten years after the date such right is
granted.

SECTION 7.  RESTRICTED STOCK, DEFERRED STOCK AND PERFORMANCE SHARES.

              Awards of Restricted Stock, Deferred Stock or Performance Shares
may be issued either alone or in addition to other awards granted under the
Plan. The Administrator shall determine the Eligible Recipients to whom, and the
time or times at which, awards of Restricted Stock, Deferred Stock or
Performance Shares shall be made; the number of shares to be awarded; the price,
if any, to be paid by the Participant for the acquisition of Restricted Stock,
Deferred Stock or Performance Shares; the Restricted Period (as defined in
paragraph (2) of this Section 7) applicable to awards of Restricted Stock or
Deferred Stock; the performance objectives applicable to awards of Deferred

                                       9

<PAGE>

Stock or Performance Shares; and all other conditions of the awards of
Restricted Stock, Deferred Stock and Performance Shares. The Administrator may
also condition the grant of the award of Restricted Stock, Deferred Stock or
Performance Shares upon the exercise of Stock Options, or upon such other
criteria as the Administrator may determine, in its sole discretion. The
provisions of the awards of Restricted Stock, Deferred Stock or Performance
Shares need not be the same with respect to each Participant. In the sole
discretion of the Administrator, loans may be made to Participants in connection
with the purchase of Restricted Stock under substantially the same terms and
conditions as provided in paragraph (5) of Section 5 of the Plan with respect to
the exercise of Stock Options.

              (1) AWARDS AND CERTIFICATES. The prospective recipient of awards
of Restricted Stock, Deferred Stock or Performance Shares shall not have any
rights with respect to any such award, unless and until such recipient has
executed an agreement evidencing the award (a "Restricted Stock Award
Agreement," "Deferred Stock Award Agreement" or "Performance Shares Award
Agreement," as appropriate) and delivered a fully executed copy thereof to the
Company, within a period of sixty days (or such other period as the
Administrator may specify) after the award date. Except as otherwise provided
below in this Section 7(2), (i) each Participant who is granted an award of
Restricted Stock or Performance Shares shall be issued a stock certificate in
respect of such shares of Restricted Stock or Performance Shares; and (ii) such
certificate shall be registered in the name of the Participant, and shall bear
an appropriate legend referring to the terms, conditions, and restrictions
applicable to any such award.

         The Company may require that the stock certificates evidencing
Restricted Stock or Performance Shares granted hereunder be held in the custody
of the Company until the restrictions thereon shall have lapsed, and that, as a
condition of any award of Restricted Stock or Performance Shares, the
Participant shall have delivered a stock power, endorsed in blank, relating to
the Stock covered by such award.

         With respect to awards of Deferred Stock, at the expiration of the
Restricted Period, stock certificates in respect of such shares of Deferred
Stock shall be delivered to the Participant, or his legal representative, in a
number equal to the number of shares of Stock covered by the Deferred Stock
award.

         (2) RESTRICTIONS AND CONDITIONS. The awards of Restricted Stock,
Deferred Stock and Performance Shares granted pursuant to this Section 7 shall
be subject to the following restrictions and conditions:

              (a) Subject to the provisions of the Plan and the Restricted Stock
Award Agreement, Deferred Stock Award Agreement or Performance Shares Award
Agreement, as appropriate, governing any such award, during such period as may
be set by the Administrator commencing on the date of grant (the "Restricted
Period"), the Participant shall not be permitted to sell, transfer, pledge or
assign shares of Restricted Stock, Deferred Stock or Performance Shares awarded
under the Plan; provided, however, that the Administrator may, in its sole
discretion, provide for the lapse of such

                                      10

<PAGE>

restrictions in installments and may accelerate or waive such restrictions in
whole or in part based on such factors and such circumstances as the
Administrator may determine, in its sole discretion, including, but not limited
to, the attainment of certain performance related goals, the Participant's
termination of employment or service as a director, consultant or advisor to the
Company or any Parent or Subsidiary, the Participant's death or Disability. If
the performance goals and other restrictions are not attained, the participant
will forfeit his or her shares of restricted stock, deferred stock and/or
performance shares.

              (b) Except as provided in paragraph (2)(a) of this Section 7, the
Participant shall generally have the rights of a stockholder of the Company with
respect to Restricted Stock or Performance Shares during the Restricted Period.
The Participant shall generally not have the rights of a stockholder with
respect to Stock subject to awards of Deferred Stock during the Restricted
Period; provided, however, that dividends declared during the Restricted Period
with respect to the number of shares of Stock covered by Deferred Stock shall be
paid to the Participant. Certificates for shares of unrestricted Stock shall be
delivered to the Participant promptly after, and only after, the Restricted
Period shall expire without forfeiture in respect of such awards of Restricted
Stock, Deferred Stock or Performance Shares except as the Administrator, in its
sole discretion, shall otherwise determine.

              (c) The rights of Participants granted awards of Restricted Stock,
Deferred Stock or Performance Shares upon termination of employment or service
as a director, consultant or advisor to the Company or to any Parent or
Subsidiary terminates for any reason during the Restricted Period shall be set
forth in the Restricted Stock Award Agreement, Deferred Stock Award Agreement or
Performance Shares Award Agreement, as appropriate, governing such awards.

SECTION 8.  AMENDMENT AND TERMINATION.

         The Board may amend, alter or discontinue the Plan, but no amendment,
alteration, or discontinuation shall be made that would impair the rights of a
Participant under any award theretofore granted without such Participant's
consent.

         The Administrator may amend the terms of any award theretofore granted,
prospectively or retroactively, but, subject to Section 3 of Plan, no such
amendment shall impair the rights of any Participant without his or her consent.

SECTION 9.  UNFUNDED STATUS OF PLAN.

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

                                       11

<PAGE>

SECTION 10.  GENERAL PROVISIONS.

         (1) Shares of Stock shall not be issued pursuant to the exercise of any
award granted hereunder unless the exercise of such award and the issuance and
delivery of such shares of Stock pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act and the requirements of any stock exchange upon which
the Stock may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

         (2) The Administrator may require each person acquiring shares of Stock
hereunder to represent to and agree with the Company in writing that such person
is acquiring the shares of Stock without a view to distribution thereof. The
certificates for such shares of Stock may include any legend which the
Administrator deems appropriate to reflect any restrictions on transfer.

         All certificates for shares of Stock delivered under the Plan shall be
subject to such stock-transfer orders and other restrictions as the
Administrator may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Stock is then listed, and any applicable Federal or state securities
law, and the Administrator may cause a legend or legends to be placed on any
such certificates to make appropriate reference to such restrictions.

         (3) Nothing contained in the Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to stockholder approval,
if such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases. The adoption of the Plan shall
not confer upon any Eligible Recipient any right to continued employment or
service with the Company or any Parent or Subsidiary, as the case may be, nor
shall it interfere in any way with the right of the Company or any Parent or
Subsidiary to terminate the employment or service of any of its Eligible
Recipients at any time.

         (4) Each Participant shall, no later than the date as of which the
value of an award first becomes includible in the gross income of the
Participant for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Administrator regarding payment of, any
Federal, state, or local taxes of any kind required by law to be withheld with
respect to such award. The obligations of the Company under the Plan shall be
conditional on the making of such payments or arrangements, and 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 Participant.

         (5) No member of the Board or the Administrator, nor any officer or
employee of the Company acting on behalf of the Board or the Administrator,
shall be personally liable for any action, determination, or interpretation
taken or made in good faith with respect to the Plan, and all members of the
Board or the Administrator and each and any officer or employee of the Company
acting on their behalf shall, to the

                                      12

<PAGE>

extent permitted by law, be fully indemnified and protected by the Company in
respect of any such action, determination or interpretation.

SECTION 11.  TERM OF PLAN.

         No Stock Option, Stock Appreciation Right, or award of Restricted
Stock, Deferred Stock or Performance Shares shall be granted pursuant to the
Plan on or after the tenth anniversary of the Effective Date, but awards
theretofore granted may extend beyond that date.

                                      13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]