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Exhibit 10.2    
  

 
 

SUBJECT TO COMPENSATION
  COMMITTEE REVIEW AND APPROVAL    
  

 
 

CONSULTING AND NON-COMPETE AGREEMENT    
  

        This CONSULTING AND NON-COMPETE AGREEMENT (this "Agreement"), is entered into this 30th day of June, 2002 (the
"Effective Date"), by and among CAREMARK RX, INC., a Delaware Corporation ("Caremark"), and JAMES H. DICKERSON,
JR. ("Executive"). 

        WHEREAS,
Executive and Caremark entered into an Employment Agreement dated May 1, 2000, as amended (the "Employment Agreement") setting forth the terms and conditions of
Executive's employment with Caremark; 

        WHEREAS,
Executive and Caremark have agreed to terminate the Employment Agreement, and Caremark has agreed to retain Executive as a consultant under the terms and conditions set forth
herein. 

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

        1.    Termination of Employment Agreement.    On the Effective Date,
the Employment Agreement shall be deemed terminated and of no further force or effect. Following such termination, neither party shall have any further obligations of payment of performance
thereunder. Without limiting the generality of
the foregoing, Executive acknowledges that he is not entitled to receive termination payments or benefits of any kind under the Employment Agreement but instead shall receive only the compensation set
forth in this Agreement. Executive acknowledges that the compensation payable under this Agreement is in excess of the termination payments or benefits that would have been payable upon termination of
employment under the Employment Agreement. 

        2.    Term of Agreement.    As used herein, "Term" shall mean the
period beginning on the Effective Date and ending on the earlier of (a) May 1, 2005, of (b) earlier termination of this Agreement pursuant to Section 11. 

        3.    Consulting Duties.    Executive shall be engaged by Caremark as
a consultant during the Term of this Agreement, an Executive hereby accepts such engagement. Executive shall report directly to the Chairman of the Board of Directors of Caremark Rx, Inc. (the
"Chairman") or his designee, and shall provide such consulting services relating to strategy, finance and operational issues related to the Restricted Business (as defined herein) as shall from time
to time be required by the Chairman. Executive shall not be authorized to bind or act on behalf of Caremark unless specifically authorized in writing to do so by the Chairman. 

        The
parties agree that Executive's consulting services are intended to assist Caremark in its prescription benefit management, specialty distribution and disease management services and
that the benefit to be obtained under this Agreement by Caremark is the benefit of Executive's knowledge, experience and contacts gained in the operation of Caremark's businesses and in the healthcare
industry generally. Executive shall be provided with reasonable notice as to the services requested hereunder, and such services shall only be requested to be provided during normal business hours at
a time that is mutually agreeable to both parties. Consulting duties are expected to be on a limited, part-time basis. Caremark will reimburse all reasonable expenses incurred by Executive in
performing such duties in accordance with standard corporate reimbursement procedures. Executive will provide reports concerning consulting services performed pursuant to this Agreement if requested
by the Chairman. 

 

        4.    Compensation.    In consideration of the consulting services and
restrictive covenants in this Agreement, Caremark shall provide Executive with the following compensation: 

        (a)    Cash Payments.    Executive shall be paid cash payments as follows: (i) $58,364.58 per month
during the Term (pro-rated for any partial month during the Term), payable in bi-weekly installments, (ii) quarterly
bonus payments for the second, third and fourth quarters of calendar year 2002, payable on the dates such payments had previously been made under the Employment Agreement, and (iii) the amount
of Executive's accrued and unused PTO balance as of July 31, 2002. 

Within
30 days following a Change in Control (as defined in the Caremark Rx, Inc. 1998 Stock Option Plan), Executive shall have the right to request that the surviving entity following the Change in
Control (the "Surviving Entity") assume in writing all of Caremark's obligations under this Agreement. If the Surviving Entity fails to provide such written confirmation and defaults in the payment of
any amounts owed under this Section 4(a), then all amounts due under this Section 4(a) shall become immediately due and payable to Executive, and Executive shall no longer be required to
perform the consulting duties described in Section 3 hereof. 

        (b)    Benefits.    Executive shall continue to receive, throughout the Term, the life insurance and other insurance,
disability and medical and dental benefits currently provided to Executive or, if the terms of the applicable benefit plan or policy do not permit continued coverage, then Caremark shall pay to
Executive the replacement costs of such benefits and coverage. 

        (c)    Stock Options.    All stock options granted to Executive by Caremark, as set forth on Exhibit A hereto,
shall be governed by the terms of the plan and/or agreement pursuant to which such stock options were granted. Without limiting the generality of the foregoing, Executive's stock options that are
unvested as of the Effective Date shall continue to vest during the Term in accordance with the applicable stock option plan. Executive acknowledges and agrees that he will remain a "Designated
Individual" under Caremark's Stock Trading Policy during the Term. Executive shall be solely responsible for compliance with all Section 16, Rule 144 and other securities law
requirements applicable to him during the Term and thereafter. 

        (d)    Arm's Length Negotiation.    The compensation to be provided to Executive under this Agreement is the result of
arm's length negotiations between Executive and Caremark and reflects (i) their mutual desire to terminate the Employment Agreement without any misunderstanding or dispute as to the termination
payments or benefits payable thereunder; (ii) their mutual desire for Executive to provide his consulting services to Caremark; and (iii) Executive's non-compete agreement and other
restrictions as set forth in Section 5 of this Agreement. 

        (e)    Withholding Taxes and Other Deductions.    Caremark shall withhold from any compensation due Executive under
this Agreement any applicable federal, state or local taxes and such other deductions as are prescribed by law. 

        5.    Restrictive Covenants.    

        (a)    Definitions.    The following terms shall have the meanings set forth below: 

	(i)
	"Caremark Parties" means Caremark and its subsidiaries and affiliates.

	(ii)
	"Confidential Information" means any data or information (other than Trade Secrets) that is valuable to
any of the Caremark Parties (or, if owned by someone else, is valuable to that third party) and not generally known to the public or to competitors in the pharmaceutical services industry, including,
but not limited to, any non-public information (regardless of whether in writing or retained as personal knowledge) pertaining to research and development; product costs and processes;
shareholder information; pricing, 

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costs
or profit factors; quality programs; strategic planning; business operations; financial condition; annual budget and long-range business plans; marketing plans and methods;
contracts and bids; and personnel. The term "Confidential Information" does not include information that (A) has become generally available to the public by the act of one who has the right to
disclose such information without violating any right of the party to which such information pertains, or (B) is obtained by Officer on a non-confidential basis from a third party
and which Executive is not prohibited from disclosing by a legal, contractual or fiduciary duty owed to any of the Caremark Parties. 

	(iii)
	"Restricted Business" means the business of providing pharmaceutical services (including, without
limitation, prescription benefit management services, specialty distribution services and disease management services) to employers, insurance companies, unions, government employee groups,
governmental entities, government program beneficiaries, managed care organizations, coalitions, other sponsors of health benefit plans and/or individuals.

	(iv)
	"Restricted Period" means for a period of 3 years after the Effective Date for purposes of
Sections 5(d), (e) and (f) and for a period of 5 years after the Effective Date for purposes of Sections 5(b) and (c).

	(v)
	"Territory" means the United States and Puerto Rico, or such lesser territory in which the Caremark
Parties are actually conducting business at the time of enforcement.

	(vi)
	"Trade Secret" means information including, but not limited to, any technical or nontechnical data,
formula, pattern, compilation, program, device, method, technique, drawing, process (including, without limitation, any process relating to customer bids or requests for proposal), financial data,
financial plan, product plan, list of actual or potential customers or suppliers or other information similar to any of the foregoing, which (A) derives independent economic value, actual or
potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use and (B) is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy. 

        (b)    Trade Secrets.    Executive hereby covenants and agrees that he will hold in confidence all Trade Secrets of
the Caremark Parties and will not disclose, publish or make use of such Trade Secrets at any time after the Effective Date, for as long as the information remains a Trade Secret, unless specifically
authorized by the Chairman. 

        (c)    Confidential Information.    Executive hereby covenants and agrees that, during the Restricted Period, he will
hold in confidence all Confidential Information of the Caremark Parties and will not disclose, publish or make use of such Confidential Information, unless specifically authorized by the Chairman. 

        (d)    Nonsolicitation of Employees.    Executive hereby covenants and agrees that he will not, during the Restricted
Period, either directly or indirectly, on his own behalf or on behalf of others, solicit or divert or attempt to solicit or divert for employment or other engagement to provide services, any person
who, as of the Effective Date, within one year prior to the Effective Date or at any time during the Term, is or was employed by or engaged to provide services for any of the Caremark Parties. 

        (e)    Nonsolicitation of Customers and Suppliers.    Executive hereby covenants and agrees that he will not, within
the Territory and during the Restricted Period, solicit or attempt to solicit on his own behalf or on behalf of any business engaged in the Restricted Business, any person or entity who, as of the
Effective Date, within one year prior to the Effective Date or at any time during 

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the Term, is or was a customer or supplier to any of the Caremark Parties or is an actively sought prospective customer or supplier of any of the Caremark Parties. 

        (f)    Noncompetition.    Executive hereby covenants and agrees that he will not, within the Territory and during the
Restricted Period, either directly or indirectly, on his own behalf or in the service or on behalf of others, engage in, establish, have any equity or profit interest in, make any loan to or for the
benefit of, or render services (of any product development or design, operations, advertising, marketing, sales, administrative, logistics, supervisory, strategic planning, management or consulting
nature) to any business, entity or individual engaged in the Restricted Business. 

Notwithstanding
anything in this Section 5 to the contrary, nothing herein shall prohibit Executive, in the aggregate, from owning or acquiring a passive investment of one percent (1%) or less
of the issued and outstanding capital stock of a publicly-held corporation engaged in the Restricted Business in the Territory, provided that Executive does not, directly or indirectly,
participate in the management or operation of such publicly-held corporation or organization. 

        (g)    State Law.    The restrictions set forth in Sections 5(b) and (c) are in addition to and not in lieu of
protections afforded to trade secrets and confidential information under applicable state law. This
Agreement shall not be interpreted as diminishing or otherwise limiting Caremark's right under applicable state law to protect its trade secrets and confidential information. 

        6.    Board Membership.    Executive hereby tenders his resignation
from Caremark's Board of Directors, effective as of the Effective Date. 

        7.    Return of Materials.    On the Effective Date, Executive will
deliver to Caremark all memoranda, notes, records, manuals or other documents (including, but not limited to, written instruments, voice or data recordings, or computer tapes, disks or files of any
nature), including all copies of such materials and all documentation prepared or produced in connection therewith, pertaining to the business of Caremark or containing Trade Secrets or Confidential
Information, whether made or compiled by Executive or otherwise made available to Executive. 

        8.    Reasonable and Necessary Restrictions.    Executive acknowledges
that the restrictions, prohibitions and other provisions hereof, including the Territory and Restricted Period, are reasonable, fair and equitable in scope, terms and duration, are necessary to
protect the legitimate business interests of Caremark, and are a material inducement to Caremark to pay the compensation described in this Agreement. Executive covenants that he will not challenge the
enforceability of this Agreement nor will he raise any equitable defense to its enforcement. 

        9.    Specific Performance.    Executive acknowledges that the
obligations undertaken by him pursuant to this Agreement are unique and that Caremark will likely have no adequate remedy at law if he fails to perform any of those obligations. Executive therefore
confirms that Caremark has the right to specific performance of the terms of this Agreement and that this right is essential to protect the rights and interests of Caremark and to protect the benefit
of Caremark's bargain with Executive. Accordingly, in addition to any other remedies that Caremark may have at law or in equity, Caremark shall have the right to have all obligations, covenants,
agreements and other provisions of this Agreement specifically performed by Executive and the right to obtain preliminary and permanent injunctive relief to secure specific performance and to prevent
a breach or contemplated breach of this Agreement by Executive. 

        10.    Release of All Claims.    In consideration for the promises set
forth in this Agreement, Executive hereby releases any and all existing claims he may currently have, known or unknown, against Caremark, its successors, assigns, directors, officers, employees,
advisors and agents, including, but not limited to, any claims under the Employment Agreement and any claims based on wrongful discharge or state or federal age, sex, race, color, national origin or
disability discrimination laws. Executive waives his rights to consider and/or revoke the terms of this Agreement for any time period beyond the 

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date of its execution and in so doing, Executive acknowledges that this release will become effective and enforceable simultaneously with execution of this Agreement. The foregoing release does not
preclude Executive from pursuing a breach of contract action should Caremark fail to fulfill its obligations set forth in this Agreement. Executive acknowledges that he has read and understands the
terms of this Section 10, has been given sufficient time to read and understand its contents and has had the opportunity to consult with an attorney prior to signing this Agreement. 

        11.    Termination.    Caremark may terminate this Agreement prior to
the end of the Term if Executive refuses to carry out a consulting assignment properly requested of him without justification, engages in conduct materially detrimental to Caremark or commits a
violation of Section 5 of this Agreement; provided, however, that no such early termination shall be effective unless Caremark shall have first given Executive written notice at least 30 days
prior to the time it intends to terminate this Agreement, detailing the reason for such termination. Executive shall then have that 30-day period to cure the reasons for such termination. Executive
may terminate this Agreement upon 30 days written notice to Caremark. Termination of this Agreement under this Section 11 shall extinguish all further obligations of payment or performance
hereunder, except Executive's obligations under Section 5 shall survive any such termination. This Agreement will be terminated upon Executive's death (except Executive's estate shall be
entitled to receive any life insurance or other benefits payable upon Executive's death), but this Agreement will not be terminated due to Executive's illness or disability. Nothing contained in this
Section 11 shall limit remedies available to Caremark under Section 9 or elsewhere in this Agreement. 

        12.    Construction.    The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. The parties agree that language proposed for,
deleted from, or otherwise changed in the various drafts of this Agreement but not included herein, shall not be considered in any way in the interpretation and application of this Agreement and shall
not in any way affect their rights and obligations. 

        13.    Governing Law and Jurisdiction.    This Agreement, the rights
and obligations of the parties, and any claims or disputes relating thereto shall be governed by and construed in accordance with the laws of the State of Alabama, not including the choice-of-law
rules thereof. All disputes arising from or relating to this Agreement shall be subject to the exclusive jurisdiction of and be litigated in the state courts located in the State of Alabama. All
parties hereby consent to the exclusive jurisdiction and venue of such courts for the litigation of all disputes and waive any claims of improper venue, inconvenient forum, lack of personal
jurisdiction, or lack of subject matter jurisdiction as to any such disputes. 

        14.    Successors and Assigns.    This Agreement shall inure to the
benefit of and be binding upon Caremark, its successors and assigns. The obligations and duties of Executive under this Agreement are personal and not assignable. 

        15.    Entire Agreement.    This Agreement contains the entire agreement between Caremark and Executive with respect
to the matters specified herein and supersedes the Employment Agreement and all prior written agreements, understandings and commitments between Caremark and Executive. This Section 15 is not
intended, however, to have any effect on Executive's stock options, Executive's stock option agreements, the stock option plans pursuant to which Executive's stock options have been issued or
Caremark's benefit plans. 

        16.    Validity.    In the event that any provisions of this Agreement are held to be invalid, void or unenforceable,
the same shall not affect, in any respect whatsoever, the validity of any other provision of this Agreement. 

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        17.    Sections and Other Headings.    Sections and other headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

        18.    Notice.    Any notice or demand required or permitted to be given under this Agreement shall be made in writing
and shall be deemed effective upon the personal delivery thereof if delivered or, if mailed, 48 hours after having been deposited in the United States mail, postage prepaid, and addressed in
the case of Caremark to the attention of the Chairman of the Board and Chief Executive Officer at Caremark's then principal place of business, presently 3000 Galleria Tower, Suite 1000,
Birmingham, Alabama 35244 and in the case of Executive to 1079 Jensen Drive, Lake Forest, Illinois 60045. Either party may change the address to which such notices are to be addressed by giving the
other party notice of such change in the manner herein set forth. 

        19.    Cooperation.    Executive acknowledges and agrees that during and after the Term, Executive may be contacted by
Caremark or its legal counsel concerning various lawsuits or other legal matters about which Executive may have knowledge. Executive agrees to cooperate with all reasonable requests for assistance
from Caremark in this regard without compensation except as already provided in this Agreement, except for reimbursement of reasonable out-of-pocket expenses incurred by Executive in providing such
cooperation. Executive further agrees to promptly notify Caremark if Executive is served with a subpoena or other legal process, or is otherwise contacted by or asked to provide information to any
other party (including, without limitation, governmental agencies or authorities) concerning audits, investigations, lawsuits or other legal or administrative proceedings affecting any of the Caremark
Parties. 

        20.    Waiver, Amendment.    No provision of this Agreement may be waived except by a written agreement signed by the
waiving party. The waiver of any term or of any condition of this Agreement shall not be deemed to constitute the waiver of any other term or condition. This Agreement may be amended only by a written
agreement signed by the parties. 

        21.    Announcements.    Caremark and Executive agree not to make any public announcement regarding the subject matter
of this Agreement except pursuant to a mutually agreed upon press release to be issued by Caremark. Caremark and Executive further agree not to disparage the other and not to make comments to third
parties inconsistent with the terms of the agreed upon press release. 

        22.    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. 

        IN
WITNESS WHEREOF, Caremark and Executive have caused this Consulting and Non-Compete Agreement to be duly executed as of the date first above written. 

	 	 	CAREMARK RX, INC.
	

 	
 	

By	
 	

/s/ MAC CRAWFORD
 Mac Crawford
 Chairman of the Board and Chief Executive Officer
	

 	
 	

 	
 	

/s/ JAMES H. DICKERSON JR.
JAMES H. DICKERSON JR.

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	Personnel Option Status	 	Caremark Rx, Inc.

ID: 63-1151076

3000 Galleria Tower

Suite 1000

Birmingham, AL 35244	 	REDACTED
	
AS OF 7/1/02	
 	

 	
 	

 
	
James H. Dickerson Jr.	
 	
REDACTED	
 	

 
	
REDACTED	
 	

 	
 	

 

	Number
 
	 	Option Date
	 	Plan
	 	Type
	 	Granted
	 	Price
	 	Exercised
	 	Vested
	 	Cancelled
	 	Unvested
	 	Outstanding
	 	Exercisable

	 	 	8/7/96	 	98no	 	NQ	 	400,000	 	$	3.2500	 	400,000	 	400,000	 	0	 	0	 	0	 	0
	 	 	9/21/98	 	92ic	 	NQ	 	1,000	 	$	3.0000	 	1,000	 	1,000	 	0	 	0	 	0	 	0
	 	 	4/8/99	 	92ic	 	NQ	 	100,000	 	$	4.1875	 	100,000	 	100,000	 	0	 	0	 	0	 	0
	 	 	3/31/00	 	92ic	 	NQ	 	150,000	 	$	4.1875	 	150,000	 	150,000	 	0	 	0	 	0	 	0
	REDACTED	 	5/31/00	 	92ic	 	NQ	 	195,931	 	$	6.4400	 	0	 	195,931	 	0	 	0	 	195,931	 	195,931
	 	 	11/7/00	 	92ic	 	NQ	 	350,000	 	$	13.2100	 	0	 	119,000	 	0	 	231,000	 	350,000	 	119,000
	 	 	 	 	 	 	 	 	
	 	 	 	 	
	 	
	 	
	 	
	 	
	 	

	 	 	 	 	 	 	 	 	1,196,931	 	 	 	 	651,000	 	965,931	 	0	 	231,000	 	545,931	 	314,931

REDACTED  

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Exhibit 10.2

SUBJECT TO COMPENSATION COMMITTEE REVIEW AND APPROVAL

CONSULTING AND NON-COMPETE AGREEMENTQuickLinks
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Exhibit 10.35    
  

COBIZ INC.

2002 EQUITY INCENTIVE PLAN  

ARTICLE 1: DEFINITIONS  

        1.1    Board.    The Board is the board of directors of the Company. 

        1.2    Business Day.    A Business Day is any day other than a Saturday, Sunday or legal holiday in the State of
Colorado. 

        1.3    Change of Control.    A Change of Control is any of the following: 

        [a]  the
acquisition by any person, entity or group (as defined in Section 13(d) of the Exchange Act) (other than (i) the Company
and its Subsidiaries, (ii) any employee benefit plan of the Company or its Subsidiaries or (iii) any Person who is an officer, director or beneficial owner of 5% or more of the
outstanding Stock on the date the Plan is adopted by the Board) through one transaction or a series of transactions of 50% or more of the combined voting power of the then outstanding voting
securities of the Company; 

        [b]  the
merger or consolidation of the Company or any Subsidiary as a result of which the Persons who were shareholders of the Company immediately
prior to such merger or consolidation do not, immediately thereafter, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of
the merged or consolidated company; provided, however, that, for purposes of this clause [b], any shares of stock of or other equity interest in the merged or
consolidated entity that are issued to or retained by a Person who was a shareholder of the Company immediately prior to the transaction in respect of such Person's ownership interest in a party to
the transaction other than the Company shall not be deemed to be owned by such Person immediately after the transaction (but shall be deemed to be outstanding); 

        [c]    the
liquidation or dissolution of the Company (other than (i) a dissolution occurring upon a merger or consolidation thereof, (ii) a liquidation
of the Company into its Subsidiary or (iii) a liquidation or dissolution that is incident to a reorganization); and 

        [d]  the
sale, transfer or other disposition of all or substantially all of the assets of the Company through one transaction or a series of
related transactions to one or more persons or entities. 

        1.4    Code.    The Code is the Internal Revenue Code of 1986, as it may be amended. 

        1.5    Committee.    Committee is one or more of the committees described below. Members of the Committee shall serve
at the pleasure of the Board and may resign at any time upon written notice to the Board. 

        [a]  Generally:
If paragraphs [b] and [c] below are not applicable, the Committee shall consist of one
or more members of the Board and/or such other person or persons as may be appointed from time to time by the Board, or the entire Board if no such Committee has been appointed. 

        [b]  For
Reporting Persons: With respect to the grant or administration of any Options granted under the Plan to eligible employees who are subject to
the reporting requirements under Section 16(a) of the Exchange Act, unless the Board determines otherwise, the Committee shall be constituted so as to comply with
Rule 16b-3 promulgated under the Exchange Act and shall consist of [1] two non-employee directors (as defined in Rule 16b-3)
or [2] the entire Board ("16b-3 Committee"); provided that if a 16b-3 Committee is not required for such grant or grants to meet the exemption
requirements under Rule 16b-3, then this sentence shall not be applicable.

 

        [c]    For
Compliance with Code Section 162(m): With respect to the grant or administration of any Options granted under the Plan to an eligible
employee subject to Code Section 162(m) and for which the Board determines, in its discretion, that compliance with Code Section 162(m) is necessary or desirable, the Committee shall be
constituted so as to comply with Code Section 162(m) and the Treasury Regulations thereunder and shall consist of two or more outside directors and no other person ("162(m) Committee");
provided that if a 162(m) Committee is not required for such grant or grants to meet the conditions of Code Section 162(m), then this sentence shall not be applicable. 

        1.6    Company.    The Company is CoBiz Inc., a Colorado corporation, and its successors and assigns. 

        1.7    Consultant.    A Consultant is a Person providing services to the Company or any Subsidiary as a consultant,
advisor, sales representative, independent contractor or in any other capacity other than an employee or a director. 

        1.8    Director.    A Director is a member of the Board or the board of directors of any Subsidiary. 

        1.9    Exchange Act.    The Exchange Act is the Securities Exchange Act of 1934, as from time to time amended, or any
functional successor to that Act, and the regulations of the Securities and Exchange Commission thereunder. 

        1.10    Fair Market Value.    The Fair Market Value of a share of Stock is the closing price of the Stock on the
principal exchange on which the Stock is traded, or, if the Stock is not traded on an exchange, as reported by Nasdaq, or, if the closing price of the Stock is not reported by Nasdaq, the average of
the high bid and low asked prices for the Stock, as reported by Nasdaq or any other accepted source selected by the Committee, or, if bid and asked prices are not reported by any source acceptable to
the Committee, the fair market value of the Stock as determined by the Committee in good faith by any reasonable means. 

        1.11    Grant Date.    The Grant Date is the date when an Option is granted, as determined under 4.3. 

        1.12    Incentive Option.    An Incentive Option means an Option designated as such at the time of grant and granted
and administered in accordance with the requirements of Code Section 422. 

        1.13    Key Employee.    A Key Employee is an employee of the Company or any Subsidiary whose judgment, initiative and
continued efforts are expected to contribute to the successful conduct of the business of the Company or any Subsidiary, as determined by the Committee. A Key Employee may be a member of the Board who
is also an employee of the Company or a Subsidiary. 

        1.14    Non-Statutory Option.    A Non-Statutory Option means any Option other than an
Incentive Option. 

        1.15    Option.    An Option is the right granted to an Optionee under this Plan to acquire Stock pursuant to the
Optionee's Option Agreement. 

        1.16    Option Agreement.    An Option Agreement is the contract under which an Optionee is given the right to acquire
Stock pursuant to this Plan. 

        1.17    Option Price.    The Option Price is the exercise price established by the Committee with respect to an
Optionee's Option. 

        1.18    Optionee.    An Optionee is a Key Employee, Consultant or Director to whom the Committee has granted an
Option. 

        1.19    Parent.    A Parent is any corporation which owns, directly or indirectly, at least 50% of the Company's
outstanding Stock.

 

        1.20    Person.    A Person includes a natural person and a corporation, limited liability company, partnership,
limited partnership, trust, estate or other entity or association. 

        1.21    Plan.    The Plan is this Equity Incentive Plan of the Company, as it may be amended. 

        1.22    Securities Act.    The Securities Act is the Securities Act of 1933, as from time to time amended, or any
functional successor to that act, and the regulations of the Securities and Exchange Commission thereunder. 

        1.23    Stock.    Stock is the common stock, $.01 par value, of the Company. 

        1.24    Subsidiary.    A Subsidiary is any corporation in which the Company owns, directly or indirectly, at least 50%
of the total voting power of the corporation's stock. 

        1.25    Treasury Regulations.    The Treasury Regulations are the regulations issued by the U.S. Treasury Department
under Title 26 of the Code of Federal Regulations. 

ARTICLE 2: PURPOSE AND TAX STATUS  

        2.1    Purpose.    The purpose of this Plan is to enable the Company and its Subsidiaries to attract and retain Key
Employees, Consultants and Directors by giving them an opportunity to acquire a proprietary interest in the Company and thereby create a more direct interest in the future success of the Company. 

        2.2    Tax Status.    The Options granted under this Plan shall be either Incentive Options or
Non-Statutory Options, in the discretion of the Committee. Each Option Agreement shall specify whether the Options granted thereby are Incentive Options or Non-Statutory
Options. The Committee may grant either or both types of Options to any Optionee, except that Incentive Options can only be granted to Persons who are employees of the Company or a Subsidiary. If an
Option granted as an Incentive Option fails for any reason to qualify as such under the Code, in whole or in part, it shall be deemed an Incentive Option to the extent it does so qualify and a
Non-Statutory Option to the extent it does not so qualify. 

        2.3    Interpretation.    This Plan and any Option Agreement, as well as all questions arising thereunder, shall be
interpreted and answered in a manner consistent with the Code and applicable Treasury Regulations. 

ARTICLE 3: ADMINISTRATION  

        3.1    Committee.    The Plan shall be administered by the Committee. 

        3.2    Authority of Committee.    The Committee shall have full authority to administer the Plan, including authority
to interpret and construe any provision of the Plan and to adopt such rules and regulations as
it may deem necessary in order to administer the Plan. Without limitation, but subject to the other provisions of the Plan, the Committee is authorized to: 

        (i)    Direct
the grant of Options; 

        (ii)  Determine
the identity of the Key Employees, Consultants and Directors who shall be granted Options, the Grant Date and the number of shares of Stock to be covered by
such Options; 

        (iii)  Determine
the Option Price, which, subject to Article 6, shall not be less than 85% of the Fair Market Value of the Stock on the Date of Grant; 

        (iv)  Determine
the manner and the times at which the Options shall be exercisable, including the discretion to accelerate the exercisability of any Option at any time and
for any reason;

 

        (v)  Determine
other conditions, restrictions and limitations, if any, on each Option granted under this Plan and any Stock issued upon exercise thereof (which need not be
identical as to all Options or Stock), including, without limitation, restrictions on transfer of Stock, rights on the part of the Company or any other Persons to repurchase Options or Stock
and provisions requiring the Optionee to restore to the Company any benefits obtained from Options or Stock in specified circumstances; 

        (vi)  Prescribe
the form or forms of the Option Agreements and of any other instruments required under this Plan and to change such forms from time to time; 

        (vii) Waive
compliance (either generally or in any one or more particular instances) by an Optionee with the requirements of any Option Agreement or any rule or
regulation with respect to an Option, subject to the terms of this Plan; 

        (viii)  Impose
restrictions, or waive any restrictions imposed, with respect to the transferability or voting of Stock acquired by the exercise of Options; and 

        (ix)  Decide
all questions and settle all controversies and disputes which may arise in connection with this Plan or any Option Agreement, and cure any defect, supply any
omission or reconcile any inconsistency therein. 

        3.3    Actions of Committee.    All actions taken and all interpretations and determinations made by the Committee in
good faith shall be final and binding upon all Optionees, the Company and all other interested persons. In addition to any other rights of indemnification, each Committee member shall be indemnified
by the Company against reasonable expenses (including attorneys' fees) actually and necessarily incurred in connection with the defense of any action, suit or proceeding (or in connection with any
appeal) to which such person may be a party by reason of an action taken, or any failure to act, in connection with this Plan and any Option granted under it. This indemnification shall further extend
to all amounts paid by any Committee member either in a settlement approved by the Committee or pursuant to a judgment in any such action, suit or proceeding, provided that the Committee member acted
in good faith and in a manner he or she reasonably believed to be in the best interests of the Company. Any action taken by the Committee under this Plan may be made without notice or meeting of the
Committee in a written consent signed by all members of the Committee. 

ARTICLE 4: GRANT OF OPTIONS  

        4.1    Shares Available.    There shall be 650,000 shares of Stock available for issuance under the Plan. All shares
underlying Options granted under this Plan which for any reason are not exercised prior to option expiration, or which are otherwise cancelled or forfeited, shall be available for granting of further
Options under this Plan. 

        4.2    Participation.    Grants of Options may be made to any Key Employee, Consultant or Director. In selecting
Optionees in its discretion, the Committee shall consider granting Options to those individuals whose judgment, initiative and continued efforts are expected to contribute to the successful conduct of
the business of the Company or any Subsidiary. Individuals who have been granted Options may, if otherwise eligible, be granted additional Options. 

        4.3    Grant Date.    With respect to each Option, the Grant Date is the date when the Committee approves the Option
grant as specified in the Committee resolution containing such approval. 

        4.4    Notice.    Notice of the grant of an Option shall be given to the Optionee within a reasonable time. 

        4.5    Agreement.    Each Option shall be evidenced by a written Option Agreement, signed on behalf of the Company,
containing such terms and provisions as the Committee may determine, subject

  
to the provisions of this Plan. Each Option Agreement shall set forth the number of shares of Stock that may be purchased upon exercise thereof, the Option Price, the duration of the Option, the time
or times at which or the events or conditions upon the occurrence of which the Option shall become exercisable as to all or any portion of the shares of Stock covered thereby, and any other terms and
conditions determined by the Committee. If the Optionee fails to sign and deliver an original of the Option Agreement to the Company within thirty days after such agreement has been delivered
to the Optionee, the Option granted by such Option Agreement shall automatically terminate at the end of such thirty-day period (unless the Committee otherwise determines). 

        4.6    Period of Grant.    No Option shall be granted under this Plan after ten years from the date this Plan
is approved by the stockholders of the Company. Options outstanding ten years or more after the effective date of the Plan shall continue to be governed by the provisions of this Plan. 

        4.7    Terms.    The Committee may impose such terms and conditions upon the exercise of an Option as the Committee
shall deem appropriate, in its discretion. Without limitation, these terms and conditions include all matters relating to granting, vesting, exercise, payment and termination of any Option. Any such
provision shall be set forth in the Option Agreement between the Company and an Optionee. 

ARTICLE 5: EXERCISE OF OPTIONS  

        5.1    Time of Exercise.    Any Option granted under this Plan shall be exercisable at the time or times, upon the
occurrence of the events and within the period specified in the Option Agreement, which period shall not be more than ten years from the Date of Grant. The provisions on exercise of the Option,
including any provision on earlier termination, shall be as determined by the Committee. If any Option is not exercised during the applicable exercise period, it shall automatically expire as of the
expiration of such period and shall be of no further force or effect. 

        5.2    Manner of Exercise.    In order to exercise an Option, in whole or in part, the Optionee shall deliver to the
Company a subscription agreement in a form to be attached to each Option Agreement, signed by the Optionee and, if the Optionee resides in a community property state, the Optionee's spouse, and
shall pay the Option Price of the shares of Stock as to which the Option is being exercised as provided in Section 5.3. The Option shall continue with respect to any remaining shares as to
which it has not been exercised, subject to the terms of the applicable Option Agreement. Within a reasonable time after its receipt of the subscription agreement and payment of the Option Price, the
Company shall deliver to the Optionee a certificate representing the shares issuable upon such exercise and a check for any payment due in lieu of fractional shares. 

        5.3    Payment of Option Price.    Unless the Option Agreement otherwise provides or unless the Committee otherwise
determines, the Option Price shall be paid by the Optionee by check or by delivery to the Company of certificates representing shares of Stock then owned by the Optionee having a Fair Market Value as
of the Exercise Date equal to the Option Price of the Stock for which the Option is being exercised, duly endorsed for transfer to the Company. If the Stock is publicly traded, the Company may, but
shall not be required to, cooperate in such manner as the Optionee may reasonably request to effect a broker-assisted cashless exercise of an Option, including delivering the certificates for the
Stock issuable upon exercise of the Option to a broker designated by the Optionee and entering into any agreement relating thereto. 

        5.4    Legal Compliance.    If the Stock subject to an Option has not been registered under the Securities Act at the
time the Option is exercised, such Stock shall be issued only upon delivery by the Optionee to the Company of an investment letter signed by the Optionee, in such form as the Committee may from
time to time determine and containing such representations, warranties and covenants as the Committee may deem necessary to establish the availability of an exemption from the registration
requirements of the Securities Act and all applicable state securities laws. Notwithstanding

  
any other provision of the Plan or any Option Agreement, the Company shall not be obligated to sell any Stock pursuant to an Option Agreement unless and until, in the opinion of the Company's
counsel, there has been compliance with all applicable federal and state laws and regulations and only when all other legal matters in connection with the issuance and delivery of such Stock have been
approved by the Company's counsel. The Company shall use reasonable commercial efforts to effect any such compliance, and the Optionee shall take any action reasonably requested by the Company in
connection therewith; provided, however, that in no event shall the Company be required to file a registration statement under the Securities Act or any state securities law to effect such
compliance. 

        5.5    Termination of Engagement.    Each Option Agreement shall specify the effect, if any, of the termination of the
Optionee's engagement by the Company on the continuing existence or exercisability of the Option. 

ARTICLE 6: INCENTIVE OPTIONS  

        Notwithstanding any other provision of the Plan, the terms of Incentive Options shall be subject to the following restrictions: 

        [a]  The
aggregate Fair Market Value of the Stock with respect to which Incentive Options are exercisable for the first time by any Optionee in any
calendar year, under the Plan and all other plans of the Company or its Parent or Subsidiaries, shall not exceed $100,000. For that purpose, Fair Market Value shall be determined as of the Date of
Grant of each Option. 

        [b]  The
Option Price of an Incentive Option shall not be less than: [i] in the case of an Incentive Option issued to an
Optionee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, its Parent or Subsidiaries, 110% of the Fair Market Value of the Stock on
the Date of Grant and [ii] in all other cases, the Fair Market value of the Stock on the Date of Grant. 

        [c]    Any
Incentive Option granted to an Optionee who owns stock possessing more than 10% of the total combined voting power of all classes of stock of
the Company, its Parent, or Subsidiaries must expire not later than five years after the Date of Grant. 

        [d]  Each
Option Agreement for an Incentive Option shall provide as follows with respect to the exercise of the Incentive Option upon the termination
of employment, death or disability of the Optionee: [i] if the Optionee dies or becomes disabled (within the meaning of Code Section 22(e)) during the term of the
Incentive Option while still employed, or within the three-month period referred to in clause [ii], the Incentive Option may be exercised by those entitled to do so
under the Optionee's will or under applicable law within twelve months following the Optionee's death or disability, but not thereafter; provided that such exercise must occur prior to the
expiration of the Incentive Option and the Incentive Option may be exercised only as to the shares of Stock for which it had become exercisable on or before the date of the Optionee's death or
disability; [ii] if the employment of the Optionee is terminated within the term of the Incentive Option for any reason other than the Optionee's death or disability or for
"cause" (as defined below), the Incentive Option may be exercised by the Optionee within three months following the date of such termination, but not thereafter; provided that such exercise
must occur prior to the expiration of the Incentive Option and the Incentive Option may be exercised only as to the shares of Stock for which it had become exercisable on or before the date of
termination of the Optionee's employment and [iii] if the Optionee's employment is terminated for "cause" (as defined below) the unexercised portion of the Incentive Option
shall automatically terminate as of the date of termination of employment. As used in this Article 6, "cause" shall mean [i] the willful failure of the Optionee
substantially to perform the duties of his or her employment with the Company (other than any such failure due to the Optionee's physical or mental illness), [ii] the
Optionee's engaging in willful and serious misconduct that has caused or is reasonably expected to result in material injury to the Company or any of its affiliates, [iii]

  
the Optionee's willful breach of a material Company policy or procedure, [iv] the Optionee's conviction of, or entering a plea of guilty or nolo
contendere to, a crime that constitutes a felony or any other crime that involves dishonesty, malfeasance or moral turpitude or [v] the willful and
material breach by the Optionee of any of his or her obligations hereunder or under any other written agreement or covenant with the Company or any of its affiliates. 

        The
foregoing requirements are based on the Code and Treasury Regulations as currently in effect and shall automatically be amended to conform to any amended requirements of the Code or
the Treasury Regulations with respect to Incentive Options that may be adopted in the future. 

ARTICLE 7: EFFECT OF CERTAIN CORPORATE ACTIONS  

        7.1    Stock Splits.    The number of shares and Option Price of Stock subject to outstanding Options and the
aggregate number of shares available for issuance under the Plan shall be proportionately adjusted in the event of any stock dividend, stock split, reverse stock split or other division or combination
of outstanding shares of Stock as determined by the Committee. 

        7.2    Change of Control.    In the event of a Change of Control, the Committee may, in its discretion, take such
action with respect to outstanding Stock Options as it deems appropriate, including, without limitation [i] accelerating the exercisability thereof, subject to such procedures
and conditions as it may determine, [ii] providing for the termination of all unexercised Stock Options as of the effective date of the Change of Control transaction,
[iii] providing for the conversion of outstanding Stock Options into options or other rights to acquire stock or other securities or property of any entity that is a party to
the transaction, or any affiliate of any such entity, for a price and on terms deemed reasonable by the Committee in its sole discretion or [iv] making cash payments or issuing
Stock or other securities to Optionees in settlement of their Stock Option in an amount equal to the difference between the value (as implied by the terms of the Change of Control transaction) of the
Stock for which they are then exercisable, or for all of the Stock covered thereby, as the Committee may determine, and the Stock Option Price thereof. The Committee shall not be required to take any
of the foregoing actions and shall not be required to treat all outstanding Stock Options in the same manner. 

        7.3    Fractional Shares.    If, upon any exercise of an Option, a fractional share of Stock would otherwise be
issuable, the Company shall, in lieu of issuing the fractional share, pay the Optionee in cash the Fair Market Value thereof as of the date the Option was exercised. 

ARTICLE 8: GENERAL PROVISIONS  

        8.1    §83(b) Election.    If the Stock issued upon exercise of an Option is, under the terms of
the Option Agreement, subject to a substantial risk of forfeiture (as that term is defined under §83 of the Code and applicable Treasury Regulations), and the Optionee makes an election
under §83(b) of the Code to include in gross income (as compensation) the excess, if any, of the fair market value of such Stock over the Option Price, the Optionee shall give
timely notice to the Company of the statement required by the Treasury Regulations under §83 of the Code. 

        8.2    Withholding.    Whenever compensation income is recognized by an Optionee with respect to an Option, the
Optionee shall be required to make a withholding tax payment to the Company. The
amount of such payment shall equal the amount of federal and state income tax that the Company or any Subsidiary is required to withhold with respect to the issuance or disposition of such Stock. The
Committee, in its sole discretion, may permit the Optionee to pay all or any portion of such tax withholding by transferring to the Company, or directing the Company to withhold from Stock otherwise
issuable to such Optionee, shares of Stock having a Fair Market Value equal to the amount to be so paid, determined as of the date of exercise. To the extent the required withholding tax payment is
not timely made by the Optionee, the Company or any Subsidiary may either withhold such

  
payment from the Optionee's cash compensation or make such other arrangements as the Committee determines. 

        8.3    No Employment Right.    Nothing in this Plan shall confer upon any Optionee the right to continue in the employ
of the Company or any Subsidiary, nor shall it interfere in any way with the right of the Company or any Subsidiary to discharge the Optionee at any time for any reason whatsoever, with or without
cause (subject to any employment agreement between the Company or any Subsidiary and the Optionee). Neither the existence of this Plan, nor the grant or termination of any Option under it, shall be
the basis of any claim for damages or otherwise by an Optionee upon his or her termination of employment. 

        8.4    No Stockholder Rights.    Prior to the issuance or transfer of Stock to the Optionee following the exercise of
an Option, an Optionee shall have no rights as a stockholder with respect to any shares of Stock subject to any Option granted to such person under this Plan. Except as provided in 7.1, no adjustment
shall be made in the number of shares of Stock issued to an Optionee, or in any other rights of the Optionee upon exercise of an Option by reason of any dividend, distribution, or other right granted
to shareholders for which the record date is prior to the date of issuance of Stock pursuant to an Option. 

        8.5    Transferability Restrictions; Repurchase Rights.    No Option, and no other rights acquired by an Optionee
under this Plan, shall be assignable or transferable by an Optionee and all such rights are exercisable, during such person's lifetime, only by the Optionee; provided, however, that, subject to the
requirements of the Code in the case of Incentive Options, (i) the Committee may authorize the assignment or transfer of an Option in its sole discretion and subject to such terms, conditions
and restrictions as it deems appropriate and (ii) in the event the Optionee's Option Agreement expressly permits the Option to be exercised after the Optionee's death or disability, the
Optionee's heirs or legal representatives, as the case may be, may exercise the Option in accordance with, and subject to all of the terms and conditions of, this Plan and the Optionee's Option
Agreement. Any assignment, transfer, pledge, hypothecation or other disposition of any Option contrary to the provisions of this Plan or the Option Agreement, and any levy of any attachment or similar
process upon an Option, shall be null and void and without effect. Upon the occurrence of such an event, the Committee may, in its discretion, terminate the Option. The Company may impose such
transfer restrictions (not otherwise expressly provided for in this Plan) and repurchase rights on the Stock as the Committee may from time to time deem appropriate. Such transfer restrictions and
repurchase rights shall be set forth in the Optionee's Option Agreement or in another written agreement between the Optionee and the Company. 

        8.6    Other Employee Benefits.    By acceptance of the grant of an Option, the Optionee shall be deemed to have
agreed that such Option is special incentive compensation that will not be taken into account, in any manner, as salary, compensation, or bonus in determining the amount of any payment under any
pension, retirement or other employee benefit plan, program or policy of the Company or any Subsidiary. In addition, each beneficiary of a deceased Optionee shall be deemed to have agreed that such
Option will not affect the amount of any life insurance coverage, if any, provided by the Company or any Subsidiary on the life of the Optionee which is payable to such beneficiary under any life
insurance plan covering employees of the Company or any Subsidiary. 

        8.7    Nonexclusivity of Plan.    Neither the adoption of the Plan by the Board nor the submission of the Plan to
stockholders of the Company for approval shall be construed as creating any limitation on the power or authority of the Board to grant options to purchase Stock or other securities of the Company to
any employee, consultant or director of the Company outside the Plan. 

        8.8    Delivery.    Delivery of any notice or document shall occur upon actual delivery to the recipient (including
receipt of telecopy or facsimile transmission).

 

        8.9    Amendment.    The Board may from time to time alter, amend, suspend or discontinue this Plan; provided,
however, any amendment or modification that is required to be approved by the stockholders to enable the Plan to satisfy any applicable statutory or regulatory requirements shall be subject to such
approval as may be required by the statute or regulation. However, no such action shall adversely affect the rights and obligations with respect to Options which are then outstanding under this Plan. 

        8.10    Effective Date.    This Plan was approved by the Board on January 16, 2002 and shall become effective
when approved by the shareholders of the Company. 

QuickLinks

Exhibit 10.35

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