Document:

Exhibit 4.3

                           THERMO ELECTRON CORPORATION

                       Amendment No. 1 to Rights Agreement

     THIS  AMENDMENT  NO. 1,  executed as of  February  7, 2002,  is made to the
RIGHTS AGREEMENT, dated as of October 29, 2001 (the "Agreement"), between Thermo
Electron Corporation, a Delaware corporation (the "Company"), and American Stock
Transfer & Trust Company, a New York banking  corporation,  as Rights Agent (the
"Rights Agent").

     In  accordance  with the  provisions  of Section 27 of the  Agreement,  the
Agreement is hereby amended as follows:

     1. Section 23 is amended by adding the  following new  subparagraph  (d) at
the end thereof:

     "(d) The  Shareholder  Rights  Plan  Committee  of the  Company's  Board of
          Directors shall review this Agreement in order to consider whether the
          maintenance of this Agreement continues to be in the best interests of
          the Company and its  stockholders.  The  committee  shall conduct such
          review periodically when, as and in such manner as the committee deems
          appropriate,  after giving due regard to all  relevant  circumstances;
          provided,  however, that the committee shall take such action at least
          once every three years. Following each such review, the committee will
          report  its  conclusions  to the Board of  Directors  of the  Company,
          including  any  recommendation  in light  thereof as to  whether  this
          Agreement  should be modified or the Rights  should be  redeemed.  The
          committee  is  authorized  to retain  such  legal  counsel,  financial
          advisors and other  advisors as the  committee  deems  appropriate  in
          order  to  assist  the   committee  in  carrying  out  its   foregoing
          responsibilities under this Agreement.  The committee shall consist of
          directors  who are eligible to serve on the  committee  in  accordance
          with the Company's bylaws."

     2. Except as amended hereby, the Agreement shall remain unchanged and shall
remain in full force and effect.

     3. This Amendment may be executed in any number of counterparts and each of
such  counterparts  shall for all purposes be deemed to be an original,  and all
such counterparts shall together constitute but one and the same instrument.

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     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Amendment to be
duly executed as of the day and year first above written.

Attest:                                 THERMO ELECTRON CORPORATION

By:                                       By:
Name:                                    Name:
Title:                                  Title:

Attest:                                 AMERICAN STOCK TRANSFER & TRUST COMPANY

By:                                   By:
Name:                                 Name:
Title:                                Title:Exhibit 10.10
                           THERMO ELECTRON CORPORATION

                              EQUITY INCENTIVE PLAN

            As amended and restated effective as of February 7, 2002

1.       Purpose

          The purpose of this Equity  Incentive  Plan (the  "Plan") is to secure
for  Thermo  Electron  Corporation  (the  "Company")  and its  Stockholders  the
benefits arising from capital stock ownership by employees and directors of, and
consultants  to, the  Company  and its  subsidiaries  or other  persons  who are
expected to make  significant  contributions to the future growth and success of
the Company and its subsidiaries. The Plan is intended to accomplish these goals
by  enabling  the  Company  to  offer  such  persons   equity-based   interests,
equity-based incentives or performance-based stock incentives in the Company, or
any combination thereof ("Awards").

2.       Administration

          The Plan will be administered by the Board of Directors of the Company
(the  "Board").  The Board shall have full power to interpret and administer the
Plan, to prescribe, amend and rescind rules and regulations relating to the Plan
and  Awards,  and full  authority  to select the  persons to whom Awards will be
granted ("Participants"),  determine the type and amount of Awards to be granted
to Participants  (including any combination of Awards),  determine the terms and
conditions of Awards  granted  under the Plan  (including  terms and  conditions
relating to events of merger, consolidation, dissolution and liquidation, change
of control, vesting, forfeiture,  restrictions,  dividends and interest, if any,
on deferred  amounts),  waive compliance by a participant with any obligation to
be  performed  by him or her under an Award,  waive any term or  condition of an
Award,  cancel  an  existing  Award in whole or in part  with the  consent  of a
Participant,  grant replacement  Awards,  accelerate the vesting or lapse of any
restrictions of any Award, correct any defect,  supply any omission or reconcile
any  inconsistency in the Plan or in any Award and adopt the form of instruments
evidencing  Awards  under the Plan and change such forms from time to time.  Any
interpretation by the Board of the terms and provisions of the Plan or any Award
thereunder and the  administration  thereof,  and all action taken by the Board,
shall be final,  binding and  conclusive on all parties and any person  claiming
under or  through  any  party.  No  Director  shall be liable  for any action or
determination made in good faith. The Board may, to the full extent permitted by
law, delegate any or all of its  responsibilities  under the Plan to a committee
(the "Committee") appointed by the Board and consisting of members of the Board.
All references in the Plan to the "Board" shall mean the Board or a Committee of
the Board to the extent that the Board's powers or authority under the Plan have
been delegated to such Committee.

3.       Effective Date

          The Plan shall be effective as of the date first approved by the Board
of  Directors,  subject  to the  approval  of  the  Plan  by  the  Corporation's

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Stockholders.  Grants of Awards under the Plan made prior to such approval shall
be effective when made (unless  otherwise  specified by the Board at the time of
grant), but shall be conditioned on and subject to such approval of the Plan.

4.       Shares Subject to the Plan

          Subject to adjustment as provided in Section 10.6, the total number of
shares of  common  stock of the  Company,  par  value  $1.00 per share  ("Common
Stock"),  reserved  and  available  for  distribution  under  the Plan  shall be
15,575,000 shares.  Such shares may consist,  in whole or in part, of authorized
and unissued shares or treasury shares.

          If any  Award of  shares of Common  Stock  requiring  exercise  by the
Participant  for delivery of such shares  expires or terminates  without  having
been  exercised  in full,  is forfeited  or is  otherwise  terminated  without a
payment being made to the  Participant  in the form of Common  Stock,  or if any
shares of Common Stock subject to  restrictions  are  repurchased by the Company
pursuant to the terms of any Award or are otherwise reacquired by the Company to
satisfy  obligations  arising  by  virtue of any  Award,  such  shares  shall be
available for distribution in connection with future Awards under the Plan.

5.       Eligibility

          Employees and Directors  of, and  consultants  to, the Company and its
subsidiaries,   or  other   persons  who  are   expected  to  make   significant
contributions  to  the  future  growth  and  success  of  the  Company  and  its
subsidiaries  shall be eligible to receive Awards under the Plan. The Board,  or
other  appropriate  committee or person to the extent permitted  pursuant to the
last  sentence  of Section 2,  shall  from time to time  select  from among such
eligible persons those who will receive Awards under the Plan.

6.       Types of Awards

          The Board may offer Awards under the Plan in any form of  equity-based
interest,  equity-based incentive or performance-based stock incentive in Common
Stock of the Company or any combination  thereof. The type, terms and conditions
and  restrictions  of an Award shall be determined by the Board at the time such
Award is made to a  Participant;  provided  however  that the maximum  number of
shares  permitted to be granted under any Award or  combination of Awards to any
Participant  during any one  calendar  year may not exceed  1,500,000  shares of
Common Stock.

          An Award shall be made at the time specified by the Board and shall be
subject to such  conditions or  restrictions  as may be imposed by the Board and
shall  conform to the  general  rules  applicable  under the Plan as well as any
special  rules then  applicable  under  federal tax laws or  regulations  or the
federal securities laws relating to the type of Award granted.

          Without  limiting the foregoing,  Awards may take the following  forms
and shall be subject to the following rules and conditions:

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          6.1 Options

          An option is an Award that entitles the holder on exercise  thereof to
purchase Common Stock at a specified  exercise price.  Options granted under the
Plan may be either incentive stock options ("incentive stock options") that meet
the requirements of Section 422 of the Internal Revenue Code of 1986, as amended
(the  "Code"),  or options  that are not  intended to meet the  requirements  of
Section 422 ("non-statutory options").

          6.1.1 Option  Price.  The price at which Common Stock may be purchased
upon exercise of an option shall be determined by the Board,  provided  however,
the exercise price shall not be less than 85% of the fair market value per share
of Common Stock as of the date of grant.  The Board shall not have the authority
to reprice  outstanding stock options granted to directors or executive officers
of the Company, except to the extent permitted under Section 10.6 of the Plan in
connection with adjustments in the event of certain transactions.

          6.1.2 Option Grants. The granting of an option shall take place at the
time  specified by the Board.  Options shall be evidenced by option  agreements.
Such agreements  shall conform to the  requirements of the Plan, and may contain
such other  provisions  (including  but not  limited to vesting  and  forfeiture
provisions,  acceleration, change of control, protection in the event of merger,
consolidations,   dissolutions  and   liquidations)  as  the  Board  shall  deem
advisable.  Option  agreements  shall expressly state whether an option grant is
intended to qualify as an incentive stock option or non-statutory option.

          6.1.3 Option Period. An option will become exercisable at such time or
times  (which may be  immediately  or in such  installments  as the Board  shall
determine)  and on such terms and  conditions  as the Board shall  specify.  The
option agreements shall specify the terms and conditions applicable in the event
of an option holder's termination of employment during the option's term.

          Any exercise of an option must be in accordance with the  instructions
described  in "The Guide for  Employees  of Thermo  Electron  Corporation  Stock
Option Plans," as may be amended from time to time (the "Guide").

          6.1.4  Payment of Exercise  Price.  Stock  purchased on exercise of an
option shall be paid for in accordance  with the  instructions  described in the
Guide.

          6.1.5 Buyout Provision. The Board may at any time offer to buy out for
a payment in cash,  shares of Common Stock,  deferred stock or restricted stock,
an option  previously  granted,  based on such terms and conditions as the Board
shall establish and communicate to the option holder at the time that such offer
is made.

          6.1.6 Special Rules for Incentive Stock Options. Each provision of the
Plan and each option  agreement  evidencing  an incentive  stock option shall be
construed so that each incentive stock option shall be an incentive stock option
as  defined  in  Section  422 of the Code or any  statutory  provision  that may
replace such  Section,  and any  provisions  thereof that cannot be so construed
shall be  disregarded.  Instruments  evidencing  incentive  stock  options shall

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contain such provisions as are required under applicable provisions of the Code.
Incentive  stock options may be granted only to employees of the Company and its
subsidiaries.  The exercise price of an incentive stock option shall not be less
than 100% (110% in the case of an incentive  stock option granted to a more than
ten percent  stockholder  of the Company) of the fair market value of the Common
Stock on the date of grant,  as  determined  by the Board.  An  incentive  stock
option may not be granted after the tenth  anniversary  of the date on which the
Plan was  adopted by the Board and the latest date on which an  incentive  stock
option may be exercised shall be the tenth anniversary  (fifth  anniversary,  in
the case of any  incentive  stock  option  granted  to a more  than ten  percent
stockholder of the Company) of the date of grant, as determined by the Board.

          6.2 Restricted and Unrestricted Stock

          An Award of restricted stock entitles the recipient thereof to acquire
shares  of  Common  Stock  upon  payment  of  the  purchase   price  subject  to
restrictions specified in the instrument evidencing the Award.

          6.2.1  Restricted  Stock Awards.  Awards of restricted  stock shall be
evidenced by restricted stock  agreements.  Such agreements shall conform to the
requirements  of the Plan,  and may  contain  such other  provisions  (including
restriction  and  forfeiture  provisions,  change of control,  protection in the
event of mergers,  consolidations,  dissolutions and  liquidations) as the Board
shall deem advisable.

          6.2.2 Restrictions.  Until the restrictions  specified in a restricted
stock  agreement  shall  lapse,  restricted  stock  may not be  sold,  assigned,
transferred,  pledged or otherwise  encumbered  or disposed of, and upon certain
conditions  specified in the restricted stock  agreement,  must be resold to the
Company for the price,  if any,  specified in such agreement.  The  restrictions
shall  lapse at such time or  times,  and on such  conditions,  as the Board may
specify. The Board may at any time accelerate the time at which the restrictions
on all or any part of the shares shall lapse.

          6.2.3 Rights as a Stockholder.  A Participant  who acquires  shares of
restricted  stock will have all of the rights of a  stockholder  of the  Company
with  respect  to such  shares  except  as  otherwise  limited  pursuant  to the
Participant's restricted stock agreement. Unless the Board otherwise determines,
certificates evidencing shares of restricted stock will remain in the possession
of the Company until such shares are free of all restrictions under the Plan.

          6.2.4 Purchase Price. The purchase price of shares of restricted stock
shall be determined by the Board, in its sole discretion.

          6.2.5  Other  Awards  Settled  With  Restricted  Stock.  The Board may
provide that any or all the Common Stock delivered  pursuant to an Award will be
restricted stock.

          6.2.6 Unrestricted Stock. The Board may, in its sole discretion,  sell
to any Participant  shares of Common Stock free of  restrictions  under the Plan
for a price  determined  by the  Board,  but  which may not be less than the par
value per share of the Common Stock.

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          6.3 Deferred Stock

          6.3.1  Deferred  Stock  Award.  A deferred  stock Award  entitles  the
recipient  to receive  shares of  deferred  stock,  which is Common  Stock to be
delivered  in the future.  Delivery of the Common  Stock will take place at such
time or times, and on such conditions,  as the Board may specify.  The Board may
at any time  accelerate  the time at  which  delivery  of all or any part of the
Common Stock will take place.

          6.3.2 Other Awards Settled with Deferred Stock.  The Board may, at the
time any Award described in this Section 6 is granted, provide that, at the time
Common Stock would otherwise be delivered pursuant to the Award, the Participant
will instead  receive an instrument  evidencing the right to future  delivery of
deferred stock.

          6.4 Performance Awards

          6.4.1  Performance  Awards. A performance Award entitles the recipient
to receive, without payment, an amount, in cash or Common Stock or a combination
thereof (such form to be determined by the Board),  following the  attainment of
performance  goals.  Performance  goals may be related to personal  performance,
corporate  performance,  departmental  performance  or  any  other  category  of
performance  deemed by the Board to be  important to the success of the Company.
The Board will  determine the  performance  goals,  the period or periods during
which  performance  is to  be  measured  and  all  other  terms  and  conditions
applicable to the Award.

          6.4.2 Other Awards Subject to Performance  Conditions.  The Board may,
at the time any  Award  described  in this  Section  6 is  granted,  impose  the
condition (in addition to any conditions specified or authorized in this Section
6 of the  Plan)  that  performance  goals  be  met  prior  to the  Participant's
realization of any payment or benefit under the Award.

7.       Purchase Price and Payment

          Except as otherwise provided in the Plan, the purchase price of Common
Stock to be acquired  pursuant to an Award shall be the price  determined by the
Board,  provided  that  such  price  shall not be less than the par value of the
Common Stock.  Except as otherwise provided in the Plan, the Board may determine
the  method of  payment  of the  exercise  price or  purchase  price of an Award
granted under the Plan and the form of payment. The Board may determine that all
or any part of the purchase  price of Common Stock pursuant to an Award has been
satisfied by past services  rendered by the Participant.  The Board may agree at
any  time,  upon  request  of the  Participant,  to defer  the date on which any
payment under an Award will be made.

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8.       Intentionally Omitted

9.       Change in Control

          9.1 Impact of Event

          In the event of a "Change in Control" as defined in Section  9.2,  the
following  provisions  shall apply,  unless the agreement  evidencing  the Award
otherwise  provides (by specific explicit  reference to Section 9.2 below). If a
Change in Control occurs while any Awards are outstanding,  then, effective upon
the Change in Control,  (i) each outstanding  stock option or other  stock-based
Award  awarded  under the Plan that was not  previously  exercisable  and vested
shall become immediately  exercisable in full and will no longer be subject to a
right of repurchase by the Company, (ii) each outstanding restricted stock award
or other  stock-based  Award subject to restrictions and to the extent not fully
vested,  shall be deemed to be fully vested,  free of restrictions and no longer
subject to a right of repurchase by the Company,  and (iii) deferral limitations
and conditions that relate solely to the passage of time,  continued  employment
or  affiliation  will be waived and  removed  as to  deferred  stock  Awards and
performance  Awards;  performance  of other  conditions  (other than  conditions
relating  solely to the passage of time,  continued  employment or  affiliation)
will continue to apply unless otherwise provided in the agreement evidencing the
Award or in any other  agreement  between  the  Participant  and the  Company or
unless otherwise agreed by the Board.

          9.2 Definition of "Change in Control"

          "Change in Control"  means an event or occurrence set forth in any one
or more of subsections  (a) through (d) below  (including an event or occurrence
that  constitutes  a Change  in  Control  under one of such  subsections  but is
specifically exempted from another such subsection):

          (a) the  acquisition  by an  individual,  entity or group  (within the
meaning of Section  13(d)(3) or 14(d)(2) of the  Exchange  Act) (a  "Person") of
beneficial  ownership  of any  capital  stock  of  Thermo  Electron  Corporation
("Thermo  Electron") if, after such acquisition,  such Person  beneficially owns
(within the meaning of Rule 13d-3  promulgated  under the  Exchange  Act) 40% or
more of  either  (i) the  then-outstanding  shares  of  common  stock of  Thermo
Electron (the  "Outstanding TMO Common Stock") or (ii) the combined voting power
of the then-outstanding securities of Thermo Electron entitled to vote generally
in  the  election  of  directors  (the  "Outstanding  TMO  Voting  Securities");
provided,  however,  that for purposes of this  subsection  (a),  the  following
acquisitions  shall not constitute a Change in Control:  (i) any  acquisition by
Thermo  Electron,  (ii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by Thermo Electron or any corporation  controlled
by Thermo  Electron,  or (iii) any acquisition by any corporation  pursuant to a
transaction  which  complies with clauses (i) and (ii) of subsection (c) of this
definition; or

          (b) such time as the  Continuing  Directors (as defined  below) do not
constitute a majority of the Board of Directors of Thermo  Electron (the "Thermo
Board") (or, if applicable, the Board of Directors of a successor corporation to
Thermo  Electron),  where  the term  "Continuing  Director"  means at any date a

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member of the Thermo  Board (i) who was a member of the Thermo  Board as of July
1, 1999 or (ii) who was nominated or elected subsequent to such date by at least
a majority of the  directors who were  Continuing  Directors at the time of such
nomination or election or whose election to the Thermo Board was  recommended or
endorsed by at least a majority of the directors who were  Continuing  Directors
at the time of such nomination or election;  provided, however, that there shall
be excluded from this clause (ii) any  individual  whose  initial  assumption of
office  occurred as a result of an actual or  threatened  election  contest with
respect to the election or removal of  directors  or other actual or  threatened
solicitation of proxies or consents,  by or on behalf of a person other than the
Thermo Board; or

          (c)  the  consummation  of a  merger,  consolidation,  reorganization,
recapitalization or statutory share exchange involving Thermo Electron or a sale
or  other  disposition  of all or  substantially  all of the  assets  of  Thermo
Electron in one or a series of transactions (a "Business Combination"),  unless,
immediately  following  such  Business  Combination,  each of the  following two
conditions is satisfied:  (i) all or  substantially  all of the  individuals and
entities who were the beneficial  owners of the Outstanding TMO Common Stock and
Outstanding TMO Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly,  more than 60% of the then-outstanding
shares of common  stock and the combined  voting  power of the  then-outstanding
securities   entitled  to  vote   generally  in  the   election  of   directors,
respectively,  of the  resulting  or  acquiring  corporation  in  such  Business
Combination (which shall include,  without limitation,  a corporation which as a
result of such transaction  owns Thermo Electron or substantially  all of Thermo
Electron's  assets either  directly or through one or more  subsidiaries)  (such
resulting  or  acquiring  corporation  is referred  to herein as the  "Acquiring
Corporation")  in  substantially   the  same  proportions  as  their  ownership,
immediately  prior to such Business  Combination,  of the Outstanding TMO Common
Stock and Outstanding TMO Voting  Securities,  respectively;  and (ii) no Person
(excluding the Acquiring  Corporation  or any employee  benefit plan (or related
trust)   maintained  or  sponsored  by  Thermo  Electron  or  by  the  Acquiring
Corporation) beneficially owns, directly or indirectly,  40% or more of the then
outstanding  shares  of common  stock of the  Acquiring  Corporation,  or of the
combined  voting power of the  then-outstanding  securities of such  corporation
entitled to vote generally in the election of directors; or

          (d)  approval  by the  stockholders  of Thermo  Electron of a complete
 liquidation or dissolution of Thermo Electron.

10.      General Provisions

          10.1 Documentation of Awards

          Awards  will be  evidenced  by written  instruments,  which may differ
among Participants,  prescribed by the Board from time to time. Such instruments
may be in the form of agreements to be executed by both the  Participant and the
Company  or  certificates,  letters  or  similar  instruments  which need not be
executed by the participant  but acceptance of which will evidence  agreement to
the terms thereof.  Such  instruments  shall conform to the  requirements of the
Plan and may contain such other  provisions  (including  provisions  relating to
events of merger, consolidation, dissolution and liquidations, change of control

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and  restrictions  affecting  either the  agreement  or the Common  Stock issued
thereunder), as the Board deems advisable.

          10.2 Rights as a Stockholder

          Except  as  specifically  provided  by  the  Plan  or  the  instrument
evidencing the Award, the receipt of an Award will not give a Participant rights
as a stockholder  of the Company with respect to any shares  covered by an Award
until  the date of  issue of a stock  certificate  to the  participant  for such
shares.

          10.3 Conditions on Delivery of Stock

          The  Company  will not be  obligated  to deliver  any shares of Common
Stock pursuant to the Plan or to remove any restriction  from shares  previously
delivered  under  the Plan (a)  until  all  conditions  of the  Award  have been
satisfied or removed,  (b) until, in the opinion of the Company's  counsel,  all
applicable  federal and state laws and regulations  have been complied with, (c)
if the  outstanding  Common  Stock is at the time listed on any stock  exchange,
until the shares have been listed or  authorized  to be listed on such  exchange
upon  official  notice of  issuance,  and (d) until all other  legal  matters in
connection  with the issuance and delivery of such shares have been  approved by
the Company's counsel. If the sale of Common Stock has not been registered under
the Securities Act of 1933, as amended,  the Company may require, as a condition
to exercise of the Award, such  representations or agreements as counsel for the
Company may consider  appropriate to avoid violation of such act and may require
that the  certificates  evidencing such Common Stock bear an appropriate  legend
restricting transfer.

          If an Award is exercised by the  participant's  legal  representative,
the Company will be under no obligation to deliver Common Stock pursuant to such
exercise   until  the  Company  is  satisfied  as  to  the   authority  of  such
representative.

          10.4 Tax Withholding

          The Company will  withhold  from any cash payment made  pursuant to an
Award an amount  sufficient to satisfy all federal,  state and local withholding
tax requirements (the "withholding requirements").

          In the  case  of an  Award  pursuant  to  which  Common  Stock  may be
delivered,  the Board will have the right to  require  that the  participant  or
other  appropriate  person remit to the Company an amount  sufficient to satisfy
the withholding  requirements,  or make other  arrangements  satisfactory to the
Board with  regard to such  requirements,  prior to the  delivery  of any Common
Stock.  If and to the extent that such  withholding  is required,  the Board may
permit the  participant  or such other  person to elect at such time and in such
manner as the Board provides to have the Company hold back from the shares to be
delivered,  or to deliver to the Company, Common Stock having a value calculated
to satisfy the withholding requirement.

          10.5 Transferability of Awards

          Except as may be authorized by the Board, in its sole  discretion,  no
Award (other than an Award in the form of an outright transfer of cash or Common

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Stock not subject to any  restrictions) may be transferred other than by will or
the laws of descent and  distribution,  and during a  Participant's  lifetime an
Award requiring exercise may be exercised only by him or her (or in the event of
incapacity,  the  person  or  persons  properly  appointed  to act on his or her
behalf). The Board may, in its discretion,  determine the extent to which Awards
granted to a Participant shall be transferable,  and such provisions  permitting
or acknowledging transfer shall be set forth in the written agreement evidencing
the  Award  executed  and  delivered  by or on  behalf  of the  Company  and the
Participant.

          10.6 Adjustments in the Event of Certain Transactions

          (a) In the event of a stock  dividend,  stock split or  combination of
shares, or other distribution with respect to holders of Common Stock other than
normal cash dividends,  the Board will make (i)  appropriate  adjustments to the
maximum  number of shares that may be delivered  under the Plan under  Section 4
above,  and (ii)  appropriate  adjustments  to the  number and kind of shares of
stock or securities subject to Awards then outstanding or subsequently  granted,
any  exercise  prices  relating  to Awards  and any other  provisions  of Awards
affected by such change.

          (b) In the  event of any  recapitalization,  merger  or  consolidation
involving the Company, any transaction in which the Company becomes a subsidiary
of another entity, any sale or other disposition of all or a substantial portion
of the assets of the Company or any similar  transaction,  as  determined by the
Board,  the  Board  in  its  discretion  may  make  appropriate  adjustments  to
outstanding  Awards,   including,   without   limitation:   (i)  accelerate  the
exercisability of the Option, or (ii) adjust the terms of the Option (whether or
not in a manner that complies  with the  requirements  of Section  424(a) of the
Internal Revenue Code of 1986, as amended (the "Code")),  or (iii) if there is a
survivor or acquiror  entity,  provide for the  assumption of the Option by such
survivor  or acquiror  or an  affiliate  thereof or for the grant of one or more
replacement  options by such  survivor or acquiror or an affiliate  thereof,  in
each case on such terms (which may, but need not,  comply with the  requirements
of Section 424(a) of the Code) as the Board may determine, or (iv) terminate the
Option  (provided,  that if the  Board  terminates  the  Option,  it  shall,  in
connection  therewith,  either (A) accelerate the  exercisability  of the Option
prior to such  termination,  or (B)  provide  for a payment to the holder of the
Option of cash or other  property or a combination  of cash or other property in
an amount  reasonably  determined by the Board to  approximate  the value of the
Option  assuming an exercise  immediately  prior to the  transaction,  or (C) if
there is a survivor  or  acquiror  entity,  provide for the grant of one or more
replacement options pursuant to clause (iii) above), or (v) provide for none of,
or any combination of, the foregoing.

          (c) No fraction of a share or fractional  shares shall be  purchasable
or deliverable pursuant to this Section 10.6.

          10.7 Employment Rights

          Neither  the  adoption of the Plan nor the grant of Awards will confer
upon any  person  any right to  continued  employment  with the  Company  or any

                                       9
<PAGE>

subsidiary  or interfere in any way with the right of the Company or  subsidiary
to terminate any employment  relationship at any time or to increase or decrease
the compensation of such person. Except as specifically provided by the Board in
any particular  case, the loss of existing or potential profit in Awards granted
under  the Plan  will not  constitute  an  element  of  damages  in the event of
termination  of  an  employment  relationship  even  if  the  termination  is in
violation of an obligation of the Company to the employee.

          Whether an  authorized  leave of  absence,  or absence in  military or
government  service,   shall  constitute  termination  of  employment  shall  be
determined  by the Board at the time.  For  purposes  of this Plan,  transfer of
employment  between  the  Company  and  its  subsidiaries  shall  not be  deemed
termination of employment.

          10.8 Other Employee Benefits

          The value of an Award granted to a Participant who is an employee, and
the amount of any compensation  deemed to be received by an employee as a result
of any  exercise  or purchase  of Common  Stock  pursuant to an Award or sale of
shares received under the Plan, will not constitute "earnings" or "compensation"
with  respect  to  which  any  other  employee  benefits  of such  employee  are
determined,  including  without  limitation  benefits  under any pension,  stock
ownership, stock purchase, life insurance, medical, health, disability or salary
continuation plan.

          10.9 Legal Holidays

          If any day on or  before  which  action  under  the Plan must be taken
falls on a Saturday,  Sunday or legal  holiday,  such action may be taken on the
next succeeding day not a Saturday, Sunday or legal holiday.

          10.10 Foreign Nationals

          Without  amending  the Plan,  Awards may be granted to persons who are
foreign  nationals or employed  outside the United States or both, on such terms
and  conditions  different  from those  specified  in the Plan,  as may,  in the
judgment of the Board,  be  necessary or desirable to further the purpose of the
Plan.

11.      Termination and Amendment

          The Plan shall remain in full force and effect until terminated by the
Board.  Subject to the last  sentence  of this  Section 11, the Board may at any
time or times amend the Plan or any  outstanding  Award for any purpose that may
at the time be permitted by law, or may at any time terminate the Plan as to any
further grants of Awards.  No amendment of the Plan or any agreement  evidencing
Awards under the Plan may adversely  affect the rights of any participant  under
any Award previously granted without such participant's consent.

                                       10

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