Document:

EXHIBIT 10.12

THIS  TRANSACTION  FEE  AGREEMENT  is  made as of the 28th day of December, 2001

BETWEEN:

          AMNIS  SYSTEMS  INC.
          3450  Hillview  Avenue
          Palo  Alto,  California  94304

     (the  "Company")

                                                               OF THE FIRST PART

AND:

          ALEXANDER  DUNHAM  SECURITIES,  INC.
          10850  Wilshire  Boulevard
          Suite  350
          Los  Angeles,  California  90024

          (the  "Broker")

                                                              OF THE SECOND PART

W  H  E  R  E  A  S:

     A.     The Company has entered into a Securities Purchase Agreement (the
"Purchase Agreement") with Bristol Investment Fund, Ltd. (the "Investor") in
connection with the placement of 12% convertible debentures of the Company in
the aggregate principal amount of $1,000,000 (the "Debentures") and warrants to
purchase 1,000,000 shares of common stock of the Company;

     B.     The Broker is a licensed broker-dealer with the National Association
of Securities Dealers;

     C.     The Broker introduced the Company to the Investor and assisted the
Company in the transactions contemplated by the Purchase Agreement;

     D.     The Company wishes to reward the Broker for its services in the
manner hereinafter set forth.

          NOW, THEREFORE, in consideration of the mutual covenants, promises,
conditions, warranties and representations hereinafter set forth, the parties
hereto agree as follows:

               1.     The Company agrees to compensate the Broker as follows:
(i) ten percent (10%) of any and all cash raised, including but not limited to
the principal amount of the Debenture plus any monies raised pursuant to
exercise of warrants by the Investor and (ii) warrants to purchase an aggregate
of 100,000 of shares of common stock of the Company.  The warrants shall vest
immediately upon issuance.  Fees paid pursuant to warrant exercises shall be
paid at the date of exercise and delivery of corresponding funds to the Company.
Fees and warrants shall be paid to Broker in the manner and in the name
designated by Broker.

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<PAGE>
               2.     The shares of common stock underlying the warrants issued
to the Broker pursuant to this Agreement shall carry registration rights
equivalent to the registration rights granted to the Investor pursuant to the
registration rights agreement between the Company and the Investor.

               3.     The parties hereto, and each of them, covenant and agree
that each of them shall and will upon reasonable request by the other party,
make, do, execute or cause to be made, done or executed all such further and
other lawful acts, deeds, things, devices and assurances whatsoever for the
better or more perfect and absolute performance of the terms and conditions of
this Agreement.

               4.     By execution hereof, the Company acknowledges that the
Broker does not provide investment advice or financial planning services.  In
that regard, the Broker is not registered as an investment adviser under the
Investment Advisers Act of 1940, as amended, and cannot therefore provide any
advice regarding the desirability or value of purchasing, selling, transacting
in, investing in, or holding any security.  Rather, the Broker's services will
be limited to those properly provided by a licensed broker-dealer (Alexander
Dunham Securities, Inc. is registered with the NASD as an "Introducing
Broker/Dealer" or "K" broker/ dealer in accordance with Section 15 of the
Securities and Exchange Act of 1934, as amended.)

               5.     The Company hereby agrees to indemnify and hold harmless
the Broker, its managers, members, agents and employees (collectively referred
to as the Broker for purposes of this Section 6) from and against any and all
claims, actions, suits, proceedings (including those of shareholders), damages,
liabilities and expenses as incurred by any of them (including the fees and
expenses of counsel) which are related to or arise out of any actions taken or
omitted to be taken (including any untrue statements made or omitted to be made)
by the Company or any actions taken or omitted to be taken by the Broker (except
in the case of gross negligence or willful misconduct on the part of such
Broker) in connection with the transactions contemplated by the Purchase
Agreement or otherwise related to or arising out of the Broker's activities on
behalf of the Company.  The Company shall reimburse Broker for all expenses
(including the fees and expenses of counsel) incurred by such Broker in
connection with investigating, preparing or defending any such claim, action,
suit or proceeding, including in connection with pending or threatened
litigation to which Broker is a party.

               6.     The Company and the Broker acknowledges that Diana Derycz
Kessler serves as a director of the Investor, a registered representative of the
Broker, and a manager and registered investment advisor at Bristol DLP, LLC.
Bristol DLP, LLC is the investment manager to the Investor.

               7.     This Agreement shall enure to the benefit of and be
binding upon the parties hereto and their respective heirs, administrators,
successors and assigns.

               8.     This Agreement shall be enforced, governed by and
construed in accordance with the laws of the State of California applicable to
agreements made and to be performed entirely within such State.  In the event
that any provision of this Agreement is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law.  Any provision hereof
which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision hereof.  The parties hereto
hereby submit to the exclusive jurisdiction of the United States Federal Courts
located in Los Angeles, California with respect to any dispute arising under
this Agreement or the transactions contemplated hereby.  The party which does
not prevail in any dispute arising under this Agreement shall be responsible for
all fees and expenses, including attorneys' fees, incurred by the prevailing
party in connection with such dispute.

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<PAGE>
               9.     This Agreement consists of a total of 3 pages.  This
Agreement may be signed in any number of counterparts and the combination of the
same shall constitute a binding agreement.  A signed copy of this Agreement
received via facsimile shall be deemed an original signature of a party for
purposes of making this Agreement a binding agreement.

     IN WITNESS WHEREOF the parties hereto have hereunto executed this Agreement
as  of  and  from  the  day  first  above  written.

                                             AMNIS  SYSTEMS  INC.

                                          By:  /s/  Michael  A.  Liccardo
                                              --------------------------
                                              Michael  A.  Liccardo
                                              President and Chief Executive
                                              Officer

                                              ALEXANDER DUNHAM SECURITIES, INC.

                                              By:  /s/  James  Somes
                                                   -----------------
                                                   Name:  James  Somes
                                                   Title:  President

                                        3
<PAGE>EXHIBIT  4.1

                                     AMENDED

                              DCH TECHNOLOGY, INC.

                             2001 STOCK OPTION PLAN

     1.   PURPOSES  OF  THE  PLAN
          -----------------------

     The purposes of this 2001 Stock Option Plan (the "Plan") of DCH Technology,
Inc.,  a  Delaware  corporation  (the  "Company")  are  to:

     (i)     Encourage  selected  officers,  directors,  key  employees  and
consultants  to  improve  operations  and increase profits of the Company or its
Affiliates;

     (ii)    Encourage selected officers and key employees to accept or continue
employment  with  the  Company  or  its  Affiliates;  and

     (iii)   Increase  the  interest  of  selected  officers,  directors,  key
employees  and consultants in the Company's welfare through participation in the
growth  in  value  of  the  common  stock  of  the  Company  ("Common  Stock").

     Options  granted  under  this  Plan  ("Options")  may  be  "incentive stock
options"  ("ISOs")  intended  to  satisfy the requirements of Section 422 of the
Internal  Revenue  Code  of  1986,  as  amended  (the  "Code"), or "nonqualified
options"  ("NQOs").

     2.   ELIGIBLE  PERSONS
          -----------------

     Every person who at the date of grant of an Option is a key employee of the
Company or of any Affiliate (as defined below) (including employees who are also
officers or directors of the Company or of any Affiliate) is eligible to receive
NQOs  or ISOs under this Plan.  The term "Affiliate" as used in the Plan means a
parent  or  subsidiary  corporation  as  defined  in  the  applicable provisions
(currently Sections 424(e) and (f), respectively) of the Code.  Every person who
is  a  director  of or consultant to the Company or any Affiliate at the date of
grant  of  an  Option  is  eligible  to  receive  NQOs  under  this  Plan.

     3.   STOCK  SUBJECT  TO  THIS  PLAN
          ------------------------------

<PAGE>
     Subject  to  the  provisions  of  Section  6.1.1  of  the Plan, the maximum
aggregate  number  of shares of stock which may be granted pursuant to this Plan
is  five  million  (5,000,000)  shares  of Common Stock.  The shares unexercised
shall  become  available  again  for  grants  under  the  Plan.

     4.   ADMINISTRATION
          --------------

     4.1  Option  Committee.  This  Plan  shall  be administered by the Board of
          -----------------
Directors  of the Company (the "Board") or by the Compensation Committee or some
other  committee  of  at  least  two  Board  members,  one of whom will serve as
Chairman  (hereinafter  referred  to  as  the  "Committee  Chairman"),  to which
administration  of  the  Plan  is  delegated  (in  either  case,  the  "Option
Committee").  No  member  of  the  Option  Committee  shall  be  liable  for any
decision,  action,  or  omission respecting the Plan, any options, or any option
shares.

     4.2  Disinterested  Administration.  From  and  after  such  time  as  the
          -----------------------------
Company  registers  a  class  of  equity  securities  under  Section  12  of the
Securities  Exchange  Act  of  1934,  as amended (the "Exchange Act"), this Plan
shall  be  administered  in  accordance  with  the  disinterested administrative
requirements of Rule 16b-3 promulgated by the Securities and Exchange Commission
("Rule  16b-3"),  or  any  successor  rule  thereto.

     4.3  Authority  of  the  Option Committee.  Subject to the other provisions
          ------------------------------------
of this Plan, the Options Committee shall have the authority, in its discretion:
(i)  to  grant  Options;  (ii)  to determine the fair market of the Common Stock
subject  to  Options;  (iii) to determine the exercise price of Options granted;
(iv)  to  determine the persons to whom, and the time or times at which, Options
shall  be  granted,  and  the  number  of  shares subject to each Option; (v) to
interpret this Plan; (vi) to prescribe, amend, and rescind rules and regulations
relating  to  this  Plan;  (vii)  to  determine the terms and provisions of each
Option  granted (which need not be identical), including but not limited to, the
time  or times at which Options shall be exercisable; (viii) with the consent of
the  optionee, to modify or amend any Option; (ix) to defer (with the consent of
the  optionee)  or accelerate the exercise date or vesting of any Option; (x) to
authorize  any  person  to  execute  on  behalf  of  the  Company any instrument
evidencing  the  grant  of  an Option; and (xi) to make all other determinations
deemed  necessary  or  advisable for the administration of this Plan. The Option
Committee  may delegate nondiscretionary administrative duties to such employees
of  the  Company  as  it  deems  proper.

     4.4  Determinations  Final.  All  questions  of  interpretation,
          ---------------------
implementation, and application of this Plan shall be determined by the Board or
the  Option  Committee.  Such  determinations  shall be final and binding on all
persons.

     5.   GRANTING  OF  OPTIONS:  OPTION  AGREEMENT
          -----------------------------------------

     5.1  Ten-Year  Term.  No  Options  shall  be  granted under this Plan after
          --------------
ten  years  from  the  date  of  adoption  of  this  Plan  by  the  Board.

<PAGE>
     5.2  Option  Agreement.  Each  Option  shall  be  evidenced  by  a  written
          -----------------
stock  option  agreement,  in  form satisfactory to the Company, executed by the
Company  and  the person to whom such Option is granted; provided, however, that
the  failure  by the Company, the optionee, or both to execute such an agreement
shall  not  invalidate  the  granting  of  any  Option.

     5.3  Designation  as  ISO  or  NQO.  The  agreement  shall  specify whether
          -----------------------------
each Option it evidences is a NQO or an ISO.  Notwithstanding designation of any
Option  as  an  ISO  or  a NQO, if the aggregate fair market value of the shares
under  Options  designated  as ISOs which would become exercisable for the first
time by any Optionee at a rate in excess of $100,000 in any calendar year (under
all  plans  of  the Company), then unless otherwise provided in the stock option
agreement  or  by the Option Committee, such Options shall be NQOs to the extent
of  the  excess above $100,000.  For purposes of this Section 5.3, Options shall
be  taken  into  account  in  the order in which they were granted, and the fair
market  value  of the shares shall be determined as of the time the Option, with
respect  to  such  shares,  is  granted.

     5.4  Grant  to  Prospective  Employees.  The  Option  Committee  or  the
          ---------------------------------
Committee  Chairman  may approve the grant of Options under this Plan to persons
who  are  expected to become employees of the Company, but who are not employees
at  the  date  of  approval.  In such cases, the Option shall be deemed granted,
without  further  approval,  on  the  date  the  optionee is first treated as an
employee  for  payroll  purposes.

     6.   TERMS  AND  CONDITIONS  OF  OPTIONS
          -----------------------------------

     Each Option granted under this Plan shall be designated as a NQO or an ISO.
Each  Option  shall  be subject to the terms and conditions set forth in Section
6.1.  NQOs  shall  be  also  subject  to  the  terms and conditions set forth in
Section 6.2, but not those set forth in Section 6.3.  ISOs shall also be subject
to the terms and conditions set forth in Section 6.3, but not those set forth in
Section  6.2.

     6.1  Terms  and  Conditions  to Which Options Are Subject.  Options granted
          ----------------------------------------------------
under  this  Plan  shall,  as provided in Section 6, be subject to the following
terms  and  conditions:

          6.1.1     Changes  in Capital Structure.  The existence of outstanding
                    -----------------------------
Options  shall  not  affect  the  Company's  right  to  effect  adjustments,
recapitalizations,  reorganizations,  or  other  changes  in  its  or  any other
corporation's  capital  structure  or business, any merger or consolidation, any
issuance  of bonds, debentures, preferred, or prior preference stock ahead of or
affecting  Common  Stock, the dissolution or liquidation of the Company's or any
other  corporation's  assets  or  business  or  any  other corporate act whether
similar  to  the events described above or otherwise.  Subject to Section 6.1.2,
if the stock of the Company is changed by reason of a stock split, reverse stock
split,  stock  dividend,  recapitalization, or other event, or converted into or
exchanged  for  other  securities  as  a  result  of  a  merger,  consolidation,
reorganization, or other event, appropriate adjustments shall

<PAGE>
be  made in (i) the number and class of shares of stock subject to this Plan and
each  outstanding  Option;  provided,  however,  that  the  Company shall not be
required  to  issue  fractional shares as a result to any such adjustments. Each
such adjustment shall be subject to approval by the Option Committee in its sole
discretion,  and  may be made without regard to any resulting tax consequence to
the  optionee.

          6.1.2     Corporate  Transactions.  In connection with (i) any merger,
                    -----------------------
consolidation,  acquisition,  separation,  or  reorganization in which more than
fifty  percent (50%) of the shares of the Company outstanding immediately before
such  event  are  converted  into  cash  or  into  another  security,  (ii)  any
dissolution  or  liquidation of the Company or any partial liquidation involving
fifty percent (50%) or more of the assets of the Company, (iii) any sale of more
than fifty percent (50%) of the Company's assets, or (iv) any like occurrence in
which  the  Company  is  involved,  the  Option  Committee  may, in its absolute
discretion,  do one or more of the following upon ten days' prior written notice
to  all  optionees;  (a)  accelerate  any vesting schedule to which an Option is
subject;  (b) cancel Options upon payment to each optionee in cash, with respect
to  each  Option  to  the  extent  then exercisable, of any amount which, in the
absolute  discretion  of the Option Committee, is determined to be equivalent to
any  excess  of  the  market  value (at the effective time of such event) of the
consideration  that  such  optionee  would  have received if the Option had been
exercised  before  the effective time over the exercise price of the Option; (c)
shorten  the  period  during  which  such Options are exercisable (provided they
remain  exercisable,  to the extent otherwise exercisable, for at least ten days
after  the  date  the notice is given); or (d) arrange that new option rights be
substituted for the option rights granted under this Plan, or that the Company's
obligations as to Options outstanding under this Plan be assumed, by an employer
corporation other than the Company or by a parent or subsidiary of such employer
corporation.  The  actions  described in this Section 6.1.2 may be taken without
regard  to  any  resulting  tax  consequence  to  the  optionee.

          6.1.3     Time of Option Exercise.  Except as necessary to satisfy the
                    -----------------------
requirements  of  Section  422  of  the  Code  and subject to Section 5, Options
granted  under  this Plan shall be exercisable at such times as are specified in
the  written  stock option agreement relating to such Option: provided, however,
that  so  long as the optionee is a director or officer, as those terms are used
in  Section 16 of the Exchange Act, such Option may not be exercisable, in whole
or  in  part,  at any time prior to the six-month anniversary of the date of the
Option  grant,  unless  the  Option  Committee  determines  that  the  foregoing
provision  is  not necessary to comply with the provisions of Rule 16b-3 or that
Rule  16b-3  is  not  applicable  to  the Plan.  No Option shall be exercisable,
however,  until  a  written  stock  option agreement in form satisfactory to the
Company  is  executed  by the Company and the optionee. The Option Committee, in
its  absolute discretion, may later waive any limitations respecting the time at
which  an  Option  or  any  portion  of  an  Option  first  becomes exercisable.

          6.1.4     Option  Grant Date.  Except as provided in Section 5.4 or as
                    ------------------
otherwise  specified  by  the  Option  Committee, the date of grant of an Option
under  this Plan shall be the date as of which the Option Committee approves the
grant.

          6.1.5     Nonassignability  of Option Rights.  No Option granted under
                    ----------------------------------
this  Plan  shall be assignable or otherwise transferable by the optionee except
by  will,  by  the  laws of descent and

<PAGE>
distribution,  or  pursuant  to a qualified domestic relations order (limited in
the  case  of  an  ISO,  to  a qualified domestic relations order that effects a
transfer of an ISO that is community property as part of a division of community
property).  During the life of the optionee, an Option shall be exercisable only
by  the  optionee.

          6.1.6     Payment.  Except as provided below, payment in full shall be
                    -------
made for all stock purchased at the time written notice of exercise of an Option
is  given  to  the Company, and proceeds of any payment shall constitute general
funds  of  the  Company.  Payment  may  be  made in cash, by promissory note, by
delivery  to  the  Company of shares of Common Stock owned by the optionee (duly
endorsed in favor of the Company or accompanied by a duly endorsed stock power),
or  by  any  other  form  of  consideration  and method of payment to the extent
permitted  under applicable law.  Any shares delivered shall be valued as of the
date  of  exercise  of  the  Option  in  the manner set forth in Section 6.1.12.
Optionees may not exercise Options by delivery of shares more frequently than at
six-month  intervals.

          6.1.7     Termination  of  Employment.  Unless determined otherwise by
                    ---------------------------
the  Option  Committee  in  its  absolute  discretion  to the extent not already
expired  or  exercised,  every Option granted under this Plan shall terminate at
the  earlier  of  (a)  the Expiration Date (as defined in Section 6.1.12) or (b)
three  months after termination of employment with the Company or any Affiliate;
provided,  that  an Option shall be exercisable after the date of termination of
employment  only  to  the  extent  exercisable  on  the date of termination; and
provided  further,  that  if  termination of employment is due to the optionee's
"disability"  (as  determined  in accordance with Section 22(e)(3) of the Code),
the  optionee, or the optionee's personal representative, may at any time within
one  (1)  year  after the termination of employment (or such lesser period as is
specified  in  the option agreement but in no event after the Expiration Date of
the Option), exercise the option to the extent it was exercisable at the date of
termination;  and  provided  further that if termination of employment is due to
the  Optionee's  death, the Optionee's estate or a legal representative thereof,
may  at  any time within and including six (6) months after the date of death of
Optionee  (or  such lesser period as is specified in the option agreement but in
no  event  after  the Expiration Date of the Option), exercise the option to the
extent  it  was exercisable at the date of termination.  Transfer of an optionee
from  the  Company  to  an  Affiliate  or  vice  versa, or from one Affiliate to
another, or a leave of absence due to sickness, military service, or other cause
duly  approved  by  the Company, shall not be deemed a termination of employment
for  purposes of this Plan.  For the purpose of this Section 6.1.7, "employment"
means  engagement  with the Company or any Affiliate of the Company either as an
employee,  as  a  director,  or  as  a  consultant.

          6.1.8     Repurchase  of  Stock.   At the time it grants Options under
                    ---------------------
this  Plan, the Company may retain, for itself or others, rights to purchase the
shares acquired under the Option or impose other restrictions on the transfer of
such  shares.  The terms and conditions of any such rights or other restrictions
shall  be  set  forth  in  the  option  agreement  evidencing  the  Option.

          6.1.9     Withholding  and  Employment Taxes.  At the time of exercise
                    ----------------------------------
of  an  Option  (or  at  such  later  time(s) as the Company may prescribe), the
optionee shall remit to the Company in cash all applicable (as determined by the
Company  in its sole discretion) federal and state withholding taxes. The Option
Committee  may,  in  the  exercise  of  its  sole  discretion,  permit  an

<PAGE>
optionee  to pay some or all of such taxes by means of a promissory note on such
terms  as  the  Option  Committee deems appropriate. If authorized by the Option
Committee in its sole discretion, and if the Option has been held for six months
or more, an optionee may elect to have shares of Common Stock which are acquired
upon  exercise of the Option withheld by the Company or to tender to the Company
other  shares  of  Common  Stock or other securities of the Company owned by the
optionee  on  the date of determination of the amount of tax to be withheld as a
result  of the exercise of such Option (the "Tax Date") to pay the amount of tax
that  is  required  by  law  to  be  withheld  by the Company as a result of the
exercise  of  such  Option,  provided  that the election satisfies the following
requirements:

               (i)   the  election  shall be irrevocable, shall be made at least
six  months  before the Option exercise, and shall be subject to the disapproval
of  the Option Committee at any time before consummation of the Option exercise;
or

               (ii)  the  election  shall be made in advance to take effect in a
subsequent  "window period" (as defined below) in which the Option is exercised,
and  the  Option  Committee shall approve the election when it is made or at any
time  thereafter  up  to  consummation  of  the  Option  exercise;  or

               (iii) the  election  shall  be  made  in a window  period and the
approval  of  the Option Committee shall be given after the election is made and
within  the  same  window  period,  and the Option exercise shall be consummated
within  such  window  period;  or

               (iv)  shares  or  other  previously  owned  securities  shall  be
tendered (but stock shall not be withheld) at any time up to the consummation of
the  Option  exercise  (in which event, neither a prior irrevocable election nor
window  period  timing  shall  be  required).

     Notwithstanding  the  foregoing,  clauses  (ii)  and  (iii)  shall  not  be
available  until  the  Company has been subject to the reporting requirements of
the  Securities  Exchange  Act  of  1934  for  at  least  one  year.

     A  "window  period"  is  the  period  beginning  on  the third business day
following  the  date  of  release for publication of quarterly or annual summary
statements  of  sales and earnings and ending on the 12th business day following
such  date.  Any  securities  so  withheld  or  tendered  shall be valued by the
Company  as  of  the  Tax  Date.

          6.1.10     Other  Provisions.  Each Option granted under this Plan may
                     -----------------
contain  such  other  terms, provisions, and conditions not consistent with this
Plan  as  may  be determined by the Option Committee, and each ISO granted under
this  Plan  shall  include  such  provisions  and conditions as are necessary to
qualify  the Option as an "incentive stock option" within the meaning of Section
422  of  the  Code.

          6.1.11     Determination  of  Value.  For  purposes  of  the Plan, the
                     ------------------------
value  of Common Stock or other securities of the Company shall be determined as
follows:

<PAGE>
               (i)   If  the stock  of  the Company is listed on any established
stock  exchange  or  a  national market system, including without limitation the
National  Market  System  of  the  National  Association  of  Securities Dealers
Automated  Quotation  System,  its  fair market value shall be the closing sales
price  for  such  stock or the closing bid if no sale was reported, as quoted on
such system or exchange (or the largest such exchange) for the date the value is
to  be  determined  (or  if  there  is  no sale for such date, then for the last
preceding business day on which there was at least one sale), as reported in the
Wall  Street  Journal.
---------------------

               (ii)  If  the  stock  of  the  Company  is  regularly quoted by a
recognized  securities  dealer  but  selling  prices  are not reported, its fair
market value shall be the mean between the high bid and low asked prices for the
stock  on the date the value is to be determined (or if there is no quoted price
for  the date of grant,  then for the last preceding business day on which there
was  a  quoted  price).

               (iii) If  the  stock  of  the  Company is as described in Section
6.1.11(i)  or  (ii),  but  is restricted by law, contract, market conditions, or
otherwise as to salability or transferability, its fair market value shall be as
set  forth  in Section 6.1.11(i) or (ii), as appropriate, less, as determined by
the  Option Committee, an appropriate discount, based on the nature and terms of
the  restrictions.

               (iv)  In  the absence of an established market for the stock, the
fair  market  value  thereof  shall  be determined by the Option Committee, with
reference to the Company's net worth, prospective earning power, dividend-paying
capacity, and other relevant factors, including the goodwill of the Company, the
economic  outlook  in  the  Company's  industry,  the  Company's position in the
industry  and  its  management, and the values of stock of other corporations in
the  same  or  a  similar  line  of  business.

          6.1.12     Option  Term.  No Option shall be exercisable more than ten
                     ------------
years after the date of grant, or such lesser period of time as set forth in the
option  agreement  (the  end of the maximum exercise period stated in the option
agreement is referred to in this Plan as the "Expiration Date").  No ISO granted
to  any  person who owns, directly or by attribution, stock possessing more than
ten  percent  of  the total combined voting power of all classes of stock of the
Company  of  any  Affiliate  ( a "Ten Percent Stockholder") shall be exercisable
more  than  five  years  after  the  date  of  grant.

          6.1.13     Exercise  Price.  The  exercise price of any Option granted
                     ---------------
to any Ten Percent Stockholder shall in no event be less than 110 percent of the
fair  market  value  (determined in accordance with Section 6.1.11) of the stock
covered  by  the  Option  at  the  time  the  Option  is  granted.

          6.1.14     Compliance  with Securities Laws.  The Company shall not be
                     --------------------------------
obligated  to  offer  or  sell  any shares upon exercise of an Option unless the
shares are at that time effectively registered or exempt from registration under
the  federal  securities laws and the offer and sale of the shares are otherwise
in  compliance with all applicable state and local securities laws.  The Company
shall  have  no  obligation  to register the shares under the federal securities
laws  or  take  whatever

<PAGE>
other  steps  may be necessary to enable the shares to be offered and sold under
federal  or  other  securities  laws.  Upon  exercising all or any portion of an
Option,  an  optionee may be required to furnish representations or undertakings
deemed  appropriate  by  the  Company to enable the offer and sale of the Option
shares  or  subsequent  transfers  of  any interest in the shares to comply with
applicable  securities  laws. Stock certificates evidencing shares acquired upon
exercise of options shall bear any legend required by, or useful for purposes of
compliance  with, applicable securities laws, this Plan, or the option agreement
evidencing  the  Option.

          6.2  Terms  and  Conditions  to  Which  Only NQOs Are Subject. Options
               --------------------------------------------------------
granted  under  this  Plan  which are designated as NQOs shall be subject to the
following  additional  terms  and  conditions:

               6.2.1     Exercise Price.  Except as set forth in Section 6.1.13,
                         --------------
the exercise price of a NQO shall not be less than 55 percent of the fair market
value (determined in accordance with Section 6.1.11) of the stock subject to the
Option  on  the  date  of  grant.

          6.3  Terms  and  Conditions  to  Which  Only ISOs Are Subject. Options
               --------------------------------------------------------
granted  under  this  Plan  which are designated as ISOs shall be subject to the
following  additional  terms  and  conditions:

               6.3.1     Exercise Price.  Except as set forth in Section 6.1.13,
                         --------------
the  exercise  price  of  an  ISO  shall  be  determined  in accordance with the
applicable  provisions  of  the Code and shall in no event be less than the fair
market value (determined in accordance with Section 6.1.11) of the stock covered
by  the  Option  at  the  time  the  Option  is  granted.

               6.3.2     Disqualifying  Dispositions.  If  stock  acquired  upon
                         ---------------------------
exercise  of  an  ISO is disposed of in a "disqualifying disposition" within the
meaning  of  Section 422 of the Code, the holder of the stock immediately before
the disposition shall notify the Company in writing of the date and terms of the
disposition  and  comply  with  any other requirements imposed by the Company in
order  to enable the Company to secure any related income tax deduction to which
it  is  entitled.

<PAGE>
     7.   MANNER  OF  EXERCISE
          --------------------

          7.1  Notice  of  Exercise.  An  optionee wishing to exercise an Option
               --------------------
shall  give  written notice to the Company at its principal executive office, to
the  attention of the officer of the Company designated by the Option Committee,
accompanied  by payment of the exercise price as provided in Section 6.1.6.  The
date the Company receives written notice of an exercise hereunder accompanied by
payment  of  the  exercise  price and, if required, by payment of any federal or
state  withholding  or  employment  taxes  required  to be withheld by virtue of
exercise of the Option will be considered as the date such Option was exercised.

          7.2  Issuance  of  Certificates.  Promptly  after  receipt  of written
               --------------------------
notice  of  exercise  of  an  Option,  the Company shall, without stock issue or
transfer  taxes to the optionee or other person entitled to exercise the Option,
deliver  to  the optionee or such other person a certificate or certificates for
the  requisite  number  of  shares  of  stock.  Unless  the  Company  specifies
otherwise,  an  optionee  or  transferee  of  an  optionee  shall  not  have any
privileges  as  a  shareholder  with  respect to any stock covered by the Option
until  the  date  of  issuance of a stock certificate.  Subject to Section 6.1.1
hereof,  no adjustment shall be made for dividends or other rights for which the
record  date  is  prior  to  the  date  the  certificates  are  delivered.

     8.   EMPLOYMENT  RELATIONSHIP
          ------------------------

     Nothing  in  this Plan or any Option granted hereunder shall interfere with
or  limit  in  any  way  the right of the Company or of any of its Affiliates to
terminate  any  optionee's  employment at any time, nor confer upon any optionee
any  right  to  continue  in the employ of the Company or any of its Affiliates.

     9.   AMENDMENTS  TO  PLAN
          --------------------

     The  Board  may  amend  this  Plan  at any time.  Without the consent of an
optionee,  no  amendment  may  affect outstanding Options except to conform this
Plan  and  ISOs granted under this Plan to federal or other tax laws relating to
incentive stock options.  No amendment shall require shareholder approval unless
shareholder  approval  is  required to preserve incentive stock option treatment
for  tax  purposes or the Board otherwise concludes that shareholder approval is
advisable.

     10.  SHAREHOLDER  APPROVAL;  TERM
          ----------------------------

     The  Board  of  Directors of the Company adopted this Plan as of January 1,
2001  and  the  Company's  shareholders approved this Plan as of  June 12, 2001.
This  Plan  shall terminate ten years after initial adoption by the Board unless
terminated  earlier  by  the  Board.  The  Board may terminate this Plan without
shareholder  approval.  No  Options  shall  be granted after termination of this
Plan,  but  termination  shall  not  affect  rights  and  obligations  under
then-outstanding  Options.

<PAGE>

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