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                                                                   EXHIBIT 10.34

                           CERTIFICATE OF AMENDMENT OF

                            ARTICLES OF INCORPORATION

                                       OF

                             BOYD GAMING CORPORATION

         The undersigned hereby certify as follows:

         1. That they are the President and Secretary, respectively, of BOYD
GAMING CORPORATION.

         2. That at a meeting of the stockholders held on May 25, 2000, the
stockholders voted to adopt the amendment to the corporation's Articles of
Incorporation as set forth in Paragraph 3 following. The amendment below as
adopted by the holders of 58,395,451 shares of the Corporation's $.01 par value
common stock representing approval of the amendment by the holders of
approximately 93.84% of the shares entitled to vote with respect to such
amendment. The total number of outstanding shares of common stock of the
corporation having voting power with respect to such amendment is 62,228,487.

         3. That at a meeting of the Board of Directors held on February 24,
2000, the Directors of the corporation adopted the following resolution to amend
the Articles of Incorporation:

         RESOLVED: That Article V, Section D, of the Articles of Incorporation
         of the corporation, as restated and filed with the Secretary of State
         for the State of Nevada on March 17, 1994, shall be further amended and
         restated in its entirety to read as follows:

         D. Redemption of Stock.

                  As long as the Corporation remains either a holding company or
         an intermediary holding company subject to the statutes, regulations,
         rules, ordinances, orders or interpretations (the "Gaming Laws") of any
         gaming authority (the "Gaming Authorities"), all securities of the
         Corporation shall be held subject to the applicable provisions of such
         Gaming Laws. Not by way of limitation, if the Corporation becomes, and
         so long as it remains, either a holding company or an intermediary
         holding company subject to regulation under the New Jersey Casino
         Control Act (the "New Jersey Act"), the Indiana Riverboat Gambling Act
         (the "Indiana Act") or any other Gaming Authority which has similar
         requirements, all securities of the Corporation shall be held subject
         to the condition that if a holder thereof is found to be disqualified
         by either the New Jersey Casino Control Commission pursuant to the New
         Jersey Act, the Indiana Gaming Commission pursuant to the Indiana Act,
         or any other Gaming Authority which has similar requirements, such
         holder shall, at the election of the Corporation, either: (i) sell any
         or all of such securities to the Corporation at the Redemption Price
         (defined below); or (ii) otherwise dispose of his interest in the
         Corporation, all within 30 days following the Corporation's receipt of
         notice (the "Notice Date") of the holder's disqualification. The
         Redemption Price shall be the lesser

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         of (i) the lowest closing sale price of the such securities between the
         Notice Date and the date 30 days after the Notice Date or (ii) such
         holder's original purchase price for such securities. The disqualified
         holder will also be responsible for and will pay all costs associated
         by the Corporation in connection with the disposition or redemption of
         securities, including but not limited to attorneys fees. Promptly
         following the Notice Date, the Corporation shall either deliver such
         written notice along with the Corporation's election personally to the
         disqualified holder or shall mail it to such holder at the address
         shown on the Corporation's records, or use any other reasonable means
         to provide notice. Failure of the Corporation to provide notice to a
         disqualified holder after making reasonable efforts to do so shall not
         preclude the corporation from exercising its rights. If any
         disqualified holder fails to dispose his securities within 30 days
         following the Notice Date, the corporation, by action or the Board of
         Directors, may redeem such securities at the lesser of (i) the lowest
         closing sale price of the such securities between the Notice Date and
         the date 30 days after the Notice Date or (ii) such holder's original
         purchase price for such securities. So long as the corporation is a
         "publicly traded holding company" as defined in the New Jersey Act and
         the Indiana Act, commencing on the Notice Date, it shall be unlawful
         for the disqualified holder to: (i) receive any dividends or interest
         upon any securities of the Corporation held by such holder; (ii)
         exercise, directly or through any trustee or nominee, any right
         conferred by such securities; or (iii) receive any remuneration in any
         form, for services rendered or otherwise, from the Corporation or any
         subsidiary of the Corporation that holds a casino license.

         IN WITNESS WHEREOF, the undersigned have executed this Amendment to
Articles of Incorporation on this 30th day of June, 2000.

                                            /s/ DONALD D. SNYDER
                                            ------------------------------------
                                                DONALD D. SNYDER, President

                                            /s/ CHARLES E. HUFF
                                            ------------------------------------
                                                CHARLES E. HUFF, Secretary

STATE OF NEVADA    )
                   ) ss:
COUNTY OF CLARK    )

         On this ____ day of ________________, 2000, personally appeared before
me, a Notary Public, DONALD D. SNYDER and CHARLES E. HUFF, as President and
Secretary, respectively, of Boyd Gaming Corporation who acknowledged that they
executed the foregoing Certificate of Amendment to Articles of Incorporation on
behalf of said corporation.

                                             -----------------------------------
                                                         Notary Public

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                                                                   EXHIBIT 10.35

                             BOYD GAMING CORPORATION
                            1996 STOCK INCENTIVE PLAN
                              (as amended 5/25/00)

     1. Purposes of the Plan. The purposes of this Stock Incentive Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business.

     2. Definitions. As used herein, the following definitions shall apply:

        (a) "Administrator" means the Board or any of the Committees appointed
to administer the Plan.

        (b) "Affiliate" and "Associate" shall have the respective meanings
ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

        (c) "Applicable Laws" means the legal requirements relating to the
administration of stock incentive plans, if any, under applicable provisions of
federal securities laws, state corporate and securities laws, the Code, the
rules of any applicable stock exchange or national market system, and the rules
of any foreign jurisdiction applicable to Awards granted to residents therein.

        (d) "Award" means the grant of an Option, SAR, Dividend Equivalent
Right, Restricted Stock, Performance Unit, Performance Share, or other right or
benefit under the Plan.

        (e) "Award Agreement" means the written agreement evidencing the grant
of an Award executed by the Company and the Grantee, including any amendments
thereto.

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

        (g) "Boyd Family" means William S. Boyd, any direct descendant or spouse
of such person, or any direct descendant of such spouse, and any trust or other
estate in which each person who has a beneficial interest, directly or
indirectly through one or more intermediaries in capital stock of the Company is
one of the foregoing persons. The members of the Boyd Family shall be deemed to
beneficially own any capital stock of a corporation held by any other
corporation (the "parent corporation" so long as the members of the Boyd Family
beneficially own, directly or indirectly through one or more intermediates, in
the aggregate 50% or more of the total voting power of the capital stock of the
parent corporation.

        (h) "Change in Control" means a change in ownership or control of the
Company effected through either of the following transactions:

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            (i) the direct or indirect acquisition by any person or related
group of persons (other than an acquisition from or by the Company, by a
Company-sponsored employee benefit plan, by a person that directly or indirectly
controls, is controlled by, or is under common control with, the Company or a
Permitted Holder) of beneficial ownership (within the meaning of Rule 13d-3 of
the Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities pursuant to
a tender or exchange offer made directly to the Company's stockholders which a
majority of the Continuing Directors who are not Affiliates or Associates of the
offeror do not recommend such stockholders accept, or

            (ii) a change in the composition of the Board over a period of
thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who are
Continuing Directors.

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

        (j) "Committee" means any committee appointed by the Board to administer
the Plan.

        (k) "Common Stock" means the common stock of the Company.

        (l) "Company" means Boyd Gaming Corporation, a Nevada corporation.

        (m) "Consultant" means any person who is engaged by the Company or any
Parent or Subsidiary to render consulting or advisory services as an independent
contractor and is compensated for such services.

        (n) "Continuing Directors" means members of the Board who either (i)
have been Board members continuously for a period of at least thirty-six (36)
months or (ii) have been Board members for less than thirty-six (36) months and
were elected or nominated for election as Board members by at least a majority
of the Board members described in clause (i) who were still in office at the
time such election or nomination was approved by the Board.

        (o) "Continuous Status as an Employee or Consultant" means that the
employment or consulting relationship with the Company, any Parent, or
Subsidiary, is not interrupted or terminated. Continuous Status as an Employee
or Consultant shall not be considered interrupted in the case of (i) any leave
of absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor. A
leave of absence approved by the Company shall include sick leave, military
leave, or any other personal leave approved by an authorized representative of
the Company. For purposes of Incentive Stock Options, no such leave may exceed
ninety (90) days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract.

        (p) "Corporate Transaction" means any of the following
stockholder-approved transactions to which the Company is a party:

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            (i) a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

            (ii) the sale, transfer or other disposition of all or substantially
all of the assets of the Company (including the capital stock of the Company's
subsidiary corporations) in connection with the complete liquidation or
dissolution of the Company; or

            (iii) any reverse merger in which the Company is the surviving
entity but in which securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities are
transferred to a person or persons different from those who held such securities
immediately prior to such merger.

        (q) "Covered Employee" means an Employee who is a "covered employee"
under Section 162(m)(3) of the Code.

        (r) "Director" means a member of the Board.

        (s) "Dividend Equivalent Right" means a right entitling the Grantee to
compensation measured by dividends paid with respect to Common Stock.

        (t) "Employee" means any person, including an Officer or Director, who
is an employee of the Company or any Parent or Subsidiary of the Company for
purposes of Section 422 of the Code. The payment of a director's fee by the
Company shall not be sufficient to constitute "employment" by the Company.

        (u) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

        (v) "Fair Market Value" means, as of any date, the value of Common Stock
determined as follows:

            (i) Where there exists a public market for the Common Stock, the
Fair Market Value shall be (A) the closing sales price for a Share for the last
market trading day prior to the time of the determination (or, if no sales were
reported on that date, on the last trading date on which sales were reported) on
the New York Stock Exchange or such other stock exchange determined by the
Administrator to be the primary market for the Common Stock or (B) if the Common
Stock is not traded on such an exchange, the Nasdaq National Market or (C) if
the Common Stock is not traded on any such exchange or national market system,
the average of the closing bid and asked prices of a Share on the Nasdaq Small
Cap Market for the day prior to the time of the determination (or, if no such
prices were reported on that date, on the last date on which such prices were
reported), in each case, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable; or

            (ii) In the absence of an established market of the type described
in (i), above, for the Common Stock, the Fair Market Value thereof shall be
determined by the Administrator in good faith.

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            (w) "Grantee" means an Employee or Consultant who receives an Award
under the Plan.

            (x) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

            (y) "Non-Qualified Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

            (z) "Officer" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

            (aa) "Option" means a stock option granted pursuant to the Plan.

            (bb) "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (cc) "Performance - Based Compensation" means compensation
qualifying as "performance-based compensation" under Section 162(m) of the Code.

            (dd) "Performance Shares" means Shares or an award denominated in
Shares which may be earned in whole or in part upon attainment of performance
criteria established by the Administrator.

            (ee) "Performance Units" means an award which may be earned in whole
or in part upon attainment of performance criteria established by the
Administrator and which may be settled for cash, Shares or other securities or a
combination of cash, Shares or other securities as established by the
Administrator.

            (ff) "Permitted Holders" means the Boyd Family and any group (as
such term is used in Section 13(d) and 14(d) of the Exchange Act) comprised
solely of members of the Boyd Family.

            (gg) "Plan" means this 1996 Stock Incentive Plan.

            (hh) "Restricted Stock" means Shares issued under the Plan to the
Grantee for such consideration, if any, and subject to such restrictions on
transfer, rights of first refusal, repurchase provisions, forfeiture provisions,
and other terms and conditions as established by the Administrator.

            (ii) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange
Act or any successor thereto.

            (jj) "SAR" means a stock appreciation right entitling the Grantee to
Shares or cash compensation, as established by the Administrator, measured by
appreciation in the value of Common Stock.

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            (kk) "Share" means a share of the Common Stock.

            (ll) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

            (mm) "Subsidiary Disposition" means the disposition by the Company
of its equity holdings in any subsidiary corporation effected by a merger or
consolidation involving that subsidiary corporation, the sale of all or
substantially all of the assets of that subsidiary corporation or the Company's
sale or distribution of substantially all of the outstanding capital stock of
such subsidiary corporation.

    3.  Stock Subject to the Plan.

        (a) Subject to the provisions of Section 10, below, the maximum
aggregate number of Shares which may be issued pursuant to all Awards (including
Incentive Stock Options) is 5,500,000 Shares. The Shares to be issued pursuant
to Awards may be authorized, but unissued, or reacquired Common Stock.

        (b) If an Award expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Award exchange program, or
if any unissued Shares are retained by the Company upon exercise of an Award in
order to satisfy the exercise price for such Award or any withholding taxes due
with respect to such Award, such unissued or retained Shares shall become
available for future grant or sale under the Plan (unless the Plan has
terminated). Shares that actually have been issued under the Plan pursuant to an
Award shall not be returned to the Plan and shall not become available for
future distribution under the Plan, except that if unvested Shares are
forfeited, or repurchased by the Company at their original purchase price, such
Shares shall become available for future grant under the Plan.

    4.  Administration of the Plan.

        (a) Plan Administrator.

            (i) Administration with Respect to Officers. With respect to grants
of Awards to Employees who are also Officers or Directors of the Company, the
Plan shall be administered by (A) the Board or (B) a Committee designated by the
Board, which Committee shall be constituted in such a manner as to satisfy the
Applicable Laws and to permit such grants and related transactions under the
Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule
16b-3. Once appointed, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board.

            (ii) Administration With Respect to Consultants and Other Employees.
With respect to grants of Awards to Employees or Consultants who are neither
Directors nor Officers of the Company, the Plan shall be administered by (A) the
Board or (B) a Committee designated by the Board, which Committee shall be
constituted in such a manner as to satisfy the Applicable Laws. Once appointed,
such Committee shall continue to serve in its designated capacity until
otherwise directed by the Board. The Board may authorize one or more Officers to

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grant such Awards and may limit such authority by requiring that such Awards
must be reported to and ratified by the Board or a Committee within six (6)
months of the grant date, and if so ratified, shall be effective as of the grant
date.

            (iii) Administration With Respect to Covered Employees.
Notwithstanding the foregoing, grants of Awards to any Covered Employee intended
to qualify as Performance-Based Compensation shall be made only by a Committee
(or subcommittee of a Committee) which is comprised solely of two or more
Directors eligible to serve on a committee making Awards qualifying as
Performance-Based Compensation. In the case of such Awards granted to Covered
Employees, references to the "Administrator" or to a "Committee" shall be deemed
to be references to such Committee or subcommittee.

            (iv) Administration Errors. In the event an Award is granted in a
manner inconsistent with the provisions of this subsection (a), such Award shall
be presumptively valid as of its grant date to the extent permitted by the
Applicable Laws.

        (b) Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

            (i) to select the Employees and Consultants to whom Awards may be
granted from time to time hereunder;

            (ii) to determine whether and to what extent Awards are granted
hereunder;

            (iii) to determine the number of Shares or the amount of other
consideration to be covered by each Award granted hereunder;

            (iv) to approve forms of Award Agreement for use under the Plan;

            (v) to determine the terms and conditions of any Award granted
hereunder;

            (vi) to amend the terms of any outstanding Award granted under the
Plan, including a reduction in the exercise price (or base amount on which
appreciation is measured) of any Award to reflect a reduction in the Fair Market
Value of the Common Stock since the grant date of the Award, provided that any
amendment that would adversely affect the Grantee's rights under an outstanding
Award shall not be made without the Grantee's written consent;

            (vii) to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan;

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            (viii) to establish additional terms, conditions, rules or
procedures to accommodate the rules or laws of applicable foreign jurisdictions
and to afford Grantees favorable treatment under such laws; provided, however,
that no Award shall be granted under any such additional terms, conditions,
rules or procedures with terms or conditions which are inconsistent with the
provisions of the Plan; and

            (ix) to take such other action, not inconsistent with the terms of
the Plan, as the Administrator deems appropriate.

        (c) Effect of Administrator's Decision. All decisions, determinations
and interpretations of the Administrator shall be conclusive and binding on all
persons.

    5.  Eligibility. Awards other than Incentive Stock Options may be granted to
Employees and Consultants. Incentive Stock Options may be granted only to
Employees. An Employee or Consultant who has been granted an Award may, if
otherwise eligible, be granted additional Awards. Awards may be granted to such
Employees of the Company and its subsidiaries who are residing in foreign
jurisdictions as the Administrator may determine from time to time.

    6.  Terms and Conditions of Awards.

        (a) Type of Awards. The Administrator is authorized under the Plan to
award any type of arrangement to an Employee or Consultant that is not
inconsistent with the provisions of the Plan and that by its terms involves or
might involve the issuance of (i) Shares, (ii) an Option, a SAR or similar right
with an exercise or conversion privilege at a fixed or variable price related to
the Common Stock and/or the passage of time, the occurrence of one or more
events, or the satisfaction of performance criteria or other conditions, or
(iii) any other security with the value derived from the value of the Common
Stock. Such awards include, without limitation, Options, SARs, sales or bonuses
of Restricted Stock, Dividend Equivalent Rights, Performance Units or
Performance Shares, and an Award may consist of one such security or benefit, or
two or more of them in any combination or alternative.

        (b) Designation of Award. Each Award shall be designated in the Award
Agreement. In the case of an Option, the Option shall be designated as either an
Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding
such designation, to the extent that the aggregate Fair Market Value of Shares
subject to Options designated as Incentive Stock Options which become
exercisable for the first time by a Grantee during any calendar year (under all
plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess
Options, to the extent of the Shares covered thereby in excess of the foregoing
limitation, shall be treated as Non-Qualified Stock Options. For this purpose,
Incentive Stock 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 date the Option with respect to such Shares is granted.

        (c) Conditions of Award. Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions,

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form of payment (cash, Shares, or other consideration) upon settlement of the
Award, payment contingencies, and satisfaction of any performance criteria. The
performance criteria established by the Administrator may be based on any one
of, or combination of, increase in share price, earnings per share, total
stockholder return, return on equity, return on assets, return on investment,
net operating income, cash flow, revenue, economic value added, personal
management objectives, or other measure of performance selected by the
Administrator. Partial achievement of the specified criteria may result in a
payment or vesting corresponding to the degree of achievement as specified in
the Award Agreement.

        (d) Deferral of Award Payment. The Administrator may establish one or
more programs under the Plan to permit selected Grantees the opportunity to
elect to defer receipt of consideration upon exercise of an Award, satisfaction
of performance criteria, or other event that absent the election would entitle
the Grantee to payment or receipt of Shares or other consideration under an
Award. The Administrator may establish the election procedures, the timing of
such elections, the mechanisms for payments of, and accrual of interest or other
earnings, if any, on amounts or Shares so deferred, and such other terms,
conditions, rules and procedures that the Administrator deems advisable for the
administration of any such deferral program.

        (e) Award Exchange Programs. The Administrator may establish one or more
programs under the Plan to permit selected Grantees to exchange an Award under
the Plan for one or more other types of Awards under the Plan on such terms and
conditions as established by the Administrator from time to time.

        (f) Individual Option and SAR Limit. The maximum number of Shares with
respect to which Options and SARs may be granted to any Employee in any fiscal
year of the Company shall be five hundred thousand (500,000) Shares. The
foregoing limitation shall be adjusted proportionately in connection with any
change in the Company's capitalization pursuant to Section 10, below. To the
extent required by Section 162(m) of the Code or the regulations thereunder, in
applying the foregoing limitation with respect to an Employee, if any Option or
SAR is canceled, the canceled Option or SAR shall continue to count against the
maximum number of Shares with respect to which Options and SARs may be granted
to the Employee. For this purpose, the repricing of an Option (or in the case of
a SAR, the base amount on which the stock appreciation is calculated is reduced
to reflect a reduction in the Fair Market Value of the Common Stock) shall be
treated as the cancellation of the existing Option or SAR and the grant of a new
Option or SAR.

        (g) Term of Award. The term of each Award shall be the term stated in
the Award Agreement, provided, however, that the term of an Incentive Stock
Option shall be no more than ten (10) years from the date of grant thereof.
However, in the case of an Incentive Stock Option granted to a Grantee who, at
the time the Option is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the term of the Incentive Stock Option shall be five (5) years
from the date of grant thereof or such shorter term as may be provided in the
Award Agreement.

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        (h) Transferability of Awards. Incentive Stock Options may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Grantee, only by the Grantee. Other Awards shall be
transferable to the extent provided in the Award Agreement.

        (i) Time of Granting Awards. The date of grant of an Award shall for all
purposes be the date on which the Administrator makes the determination to grant
such Award, or such other date as is determined by the Administrator. Notice of
the grant determination shall be given to each Employee, Director or Consultant
to whom an Award is so granted within a reasonable time after the date of such
grant.

    7.  Award Exercise or Purchase Price, Consideration, Taxes and Reload
Options.

        (a) Exercise or Purchase Price. The exercise or purchase price, if any,
for an Award shall be as follows:

            (i) In the case of an Incentive Stock Option:

                (A) granted to an Employee who, at the time of the grant of such
Incentive Stock Option owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be not less than one hundred ten
percent (110%) of the Fair Market Value per Share on the date of grant.

                (B) granted to any Employee other than an Employee described in
the preceding paragraph, the per Share exercise price shall be not less than one
hundred percent (100%) of the Fair Market Value per Share on the date of grant.

            (ii) In the case of a Non-Qualified Stock Option, the per Share
exercise price shall be not less than eighty-five percent (85%) of the Fair
Market Value per Share on the date of grant unless otherwise determined by the
Administrator.

            (iii) In the case of Awards intended to qualify as Performance-Based
Compensation, the exercise or purchase price, if any, shall be not less than one
hundred percent (100%) of the Fair Market Value per Share on the date of grant.

            (iv) In the case of other Awards, such price as is determined by the
Administrator.

        (b) Consideration. Subject to Applicable Laws, the consideration to be
paid for the Shares to be issued upon exercise or purchase of an Award including
the method of payment, shall be determined by the Administrator (and, in the
case of an Incentive Stock Option, shall be determined at the time of grant). In
addition to any other types of consideration the Administrator may determine,
the Administrator is authorized to accept as consideration for Shares issued
under the Plan the following:

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            (i) cash;

            (ii) check;

            (iii) delivery of Grantee's promissory note with such recourse,
interest, security, and redemption provisions as the Administrator determines as
appropriate;

            (iv) surrender of Shares (including withholding of Shares otherwise
deliverable upon exercise of the Award) which have a Fair Market Value on the
date of surrender equal to the aggregate exercise price of the Shares as to
which said Award shall be exercised (but only to the extent that such exercise
of the Award would not result in an accounting compensation charge with respect
to the Shares used to pay the exercise price unless otherwise determined by the
Administrator);

            (v) delivery of a properly executed exercise notice together with
such other documentation as the Administrator and the broker, if applicable,
shall require to effect an exercise of the Award and delivery to the Company of
the sale or loan proceeds required to pay the exercise price; or

            (vi) any combination of the foregoing methods of payment.

        (c) Taxes. No Shares shall be delivered under the Plan to any Grantee or
other person until such Grantee or other person has made arrangements acceptable
to the Administrator for the satisfaction of any foreign, federal, state, or
local income and employment tax withholding obligations, including, without
limitation, obligations incident to the receipt of Shares or the disqualifying
disposition of Shares received on exercise of an Incentive Stock Option. Upon
exercise of an Award, the Company shall withhold or collect from Grantee an
amount sufficient to satisfy such tax obligations.

        (d) Reload Options. In the event the exercise price or tax withholding
of an Option is satisfied by the Company or the Grantee's employer withholding
Shares otherwise deliverable to the Grantee, the Administrator may issue the
Grantee an additional Option, with terms identical to the Award Agreement under
which the Option was exercised, but at an exercise price as determined by the
Administrator in accordance with the Plan.

    8.  Exercise of Award.

        (a) Procedure for Exercise; Rights as a Stockholder.

            (i) Any Award granted hereunder shall be exercisable at such times
and under such conditions as determined by the Administrator under the terms of
the Plan and specified in the Award Agreement.

            (ii) An Award shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Award by the person entitled to exercise the Award and full payment for the
Shares with respect to which the

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Award is exercised has been received by the Company. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to Shares subject to an Award,
notwithstanding the exercise of an Option or other Award. The Company shall
issue (or cause to be issued) such stock certificate promptly upon exercise of
the Award. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the stock certificate is issued, except as
provided in the Award Agreement or Section 10, below.

        (b) Exercise of Award Following Termination of Employment, Director or
Consulting Relationship.

            (i) An Award may not be exercised after the termination date of such
Award set forth in the Award Agreement and may be exercised following the
termination of a Grantee's Continuous Status as an Employee or Consultant only
to the extent provided in the Award Agreement.

            (ii) Where the Award Agreement permits a Grantee to exercise an
Award following the termination of the Grantee's Continuous Status as an
Employee or Consultant for a specified period, the Award shall terminate to the
extent not exercised on the last day of the specified period or the last day of
the original term of the Award, whichever occurs first.

            (iii) Any Award designated as an Incentive Stock Option to the
extent not exercised within the time permitted by law for the exercise of
Incentive Stock Options following the termination of a Grantee's Continuous
Status as an Employee shall convert automatically to a Non-Qualified Stock
Option and thereafter shall be exercisable as such to the extent exercisable by
its terms for the period specified in the Award Agreement.

        (c) Buyout Provisions. The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Award previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Grantee at the time that such offer is made.

    9.  Conditions Upon Issuance of Shares.

        (a) Shares shall not be issued pursuant to the exercise of an Award
unless the exercise of such Award and the issuance and delivery of such Shares
pursuant thereto shall comply with all Applicable Laws, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

        (b) As a condition to the exercise of an Award, the Company may require
the person exercising such Award to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any
Applicable Laws.

                                       11

<PAGE>   12

    10. Adjustments Upon Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the number of Shares covered by each
outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan, as well as the price per share of Common Stock
covered by each such outstanding Award, shall be proportionately adjusted for
any increase or decrease in the number of issued shares of Common Stock
resulting from a stock split, reverse stock split, stock dividend, combination
or reclassification of the Common Stock, or any other similar event resulting in
an increase or decrease in the number of issued shares of Common Stock. Except
as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect to, the
number or price of Shares subject to an Award.

    11. Corporate Transactions/Changes in Control/Subsidiary Dispositions.

            (a) In the event of a Corporate Transaction, each Award which is at
the time outstanding under the Plan shall terminate unless assumed by the
successor company or its Parent.

            (b) In the event of a Change in Control (other than a Change in
Control which also is a Corporate Transaction), each Award which is at the time
outstanding under the Plan shall remain so exercisable until the expiration or
sooner termination of the applicable Award term.

            (c) In the event of a Subsidiary Disposition, each Award with
respect to those Grantees who are at the time engaged primarily in Continuous
Service as an Employee or Consultant with the subsidiary corporation involved in
such Subsidiary Disposition which is at the time outstanding under the Plan
shall remain so exercisable until the expiration or sooner termination of the
Award term.

            (d) The portion of any Incentive Stock Option accelerated under this
Section 11 in connection with a Corporate Transaction, Change in Control or
Subsidiary Disposition shall remain exercisable as an Incentive Stock Option
under the Code only to the extent the $100,000 dollar limitation of Section
422(d) of the Code is not exceeded. To the extent such dollar limitation is
exceeded, the accelerated excess portion of such Option shall be exercisable as
a Non-Qualified Stock Option.

    12. Term of Plan. The Plan shall become effective upon the earlier to occur
of its adoption by the Board or its approval by the stockholders of the Company.
It shall continue in effect for a term of ten (10) years unless sooner
terminated.

    13. Amendment, Suspension or Termination of the Plan.

        (a) The Board may at any time amend, suspend or terminate the Plan. To
the extent necessary to comply with Applicable Laws, the Company shall obtain
stockholder approval of any Plan amendment in such a manner and to such a degree
as required.

                                       12

<PAGE>   13

        (b) No Award may be granted during any suspension of the Plan or after
termination of the Plan.

        (c) Any amendment, suspension or termination of the Plan shall not
affect Awards already granted, and such Awards shall remain in full force and
effect as if the Plan had not been amended, suspended or terminated, unless
mutually agreed otherwise between the Grantee and the Administrator, which
agreement must be in writing and signed by the Grantee and the Company.

    14. Reservation of Shares.

        (a) The Company, during the term of the Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

        (b) The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company's counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

    15. No Effect on Terms of Employment. The Plan shall not confer upon any
Grantee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with his or her
right or the Company's right to terminate his or her employment or consulting
relationship at any time, with or without cause.

    16. Stockholder Approval. The grant of Incentive Stock Options under the
Plan shall be subject to approval by the stockholders of the Company within
twelve (12) months before or after the date the Plan is adopted. Such
stockholder approval shall be obtained in the degree and manner required under
Applicable Laws. The Administrator may grant Incentive Stock Options under the
Plan prior to approval by the stockholders, but until such approval is obtained,
no such Incentive Stock Option shall be exercisable. In the event that
stockholder approval is not obtained within the twelve (12) month period
provided above, all Incentive Stock Options previously granted under the Plan
shall terminate.

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