Document:

Prepared by MerrillDirect

Exhibit
4.2

REGISTRATION
RIGHTS AGREEMENT

             This REGISTRATION
RIGHTS AGREEMENT (the
“Agreement”) is entered into as of the 27th day of July, 2001 by and
between INTRABIOTICS PHARMACEUTICALS, INC., a
Delaware corporation (the “Company”), and DIVERSA CORPORATION,
a Delaware corporation (the “Holder”).

RECITALS

             WHEREAS,  pursuant to that certain
Release Agreement by and between the Company and Holder, dated as of July 27,
2001 (the “Release Agreement”), the Company has issued a warrant (the
“Warrant”), to purchase up to 700,000 shares of common stock of the Company
(the “Warrant Shares”) to Holder; and

             WHEREAS,
in connection with the Release Agreement and issuance of the Warrant, the
Company has agreed to extend to Holder certain registration rights for such Warrant
Shares.

AGREEMENT

             NOW
THEREFORE, in consideration of the
mutual agreements, covenants and conditions set forth herein, the parties to
this Agreement agree as follows:

1.          DEFINITIONS. The following terms shall have the following
meanings for purposes of this Agreement:

             1.1        “Act” shall mean the Securities Act of 1933, as amended.

             1.2        “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

             1.3        “Holder” shall mean the holder of Registrable Securities.

             1.4        “Investors
Rights Agreement” shall mean that certain Amended and Restated Investors Rights Agreement
by and between the Company and the investors named therein, dated as of October
15, 1999, as the same may from time to time be amended, modified, supplemented
or restated.

             1.5        “Register,”
“registered” and “registration” refer to a registration effected by preparing and
filing a registration statement or similar document in compliance with the Act,
and the declaration or ordering of effectiveness of such registration statement
or document.

             1.6        “Registrable
Securities” shall mean the Warrant Shares issuable or issued to the Holder upon
exercise of the Warrant.

             1.7        “Rule
144” shall mean Rule 144 under the Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the SEC
(excluding Rule 144A).

             1.8        “SEC” shall mean the Securities and Exchange Commission.

2.          REGISTRATION RIGHTS.

             2.1        Company
Registration. If (but without any obligation to do so) the Company proposes to
register (including for this purpose a registration effected by the Company for
stockholders other than the Holder) any of its stock or other securities under
the Act in connection with the public offering of such securities solely for
cash (other than a registration relating solely to the sale of securities to
participants in a Company stock plan, a registration on any form which does not
include substantially the same information as would be required to be included
in a registration statement covering the sale of the Registrable Securities or
a registration in which the only common stock being registered is common stock
issuable upon conversion of debt securities which are also being registered),
the Company shall, at such time, promptly give Holder written notice of such registration.  Upon the written request of Holder given
within twenty (20) days after mailing of such notice by the Company in
accordance with Section 3.6, the Company shall, subject to the provisions
of Section 2.5, cause to be registered under the Act all of the
Registrable Securities that Holder has requested to be registered.

             2.2        Obligations
of the Company.  Whenever required under this
Agreement to effect the registration of any Registrable Securities, the Company
shall, as expeditiously as reasonably possible:

                           (a)         Prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to
become effective, and, upon the request of the Holder, keep such registration
statement effective for a period of up to one hundred twenty (120) days or
until the distribution contemplated in the registration statement has been
completed; provided, however,
that (i) such 120–day period shall be extended for a period of time
equal to the period the Holder refrains from selling any securities included in
such registration at the request of an underwriter of common stock (or other
securities) of the Company; and (ii) in the case of any registration of
Registrable Securities on Form S–3 which are intended to be offered on a
continuous or delayed basis, such 120–day period shall be extended, if
necessary, to keep the registration statement effective until all such
Registrable Securities are sold, provided that Rule 415, or any successor rule
under the Act, permits an offering on a continuous or delayed basis, and
provided further that applicable rules under the Act governing the obligation
to file a post-effective amendment permit, in lieu of filing a post-effective
amendment which (I) includes any prospectus required by
Section 10(a)(3) of the Act or (II) reflects facts or events
representing a material of fundamental change in the information set forth in
the registration statement, the incorporation by reference of information
required to be included in (I) and (II) above to be contained in periodic
reports filed pursuant to Section 13 or 15(d) of the Exchange Act in the
registration statement.

                           (b)         Prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration
statement as may be necessary to comply with the provisions of the Act with
respect to the disposition of all securities covered by such registration
statement.

                           (c)         Furnish
to the Holder such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other
documents as Holder may reasonably request in order to facilitate the
disposition of Registrable Securities owned by it.

                           (d)         Use
its best efforts to register and qualify the securities covered by such
registration statement under such other securities or blue sky laws of such
jurisdictions as shall be reasonably requested by the Holder; provided that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such states
or jurisdictions, unless the Company is already subject to service in such
jurisdiction and except as may be required by the Act.

                           (e)         In the
event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form, with
the managing underwriter of such offering. 
If Holder participates in such underwriting, it shall also enter into
and perform its obligations under such an agreement.

                           (f)         Notify
Holder at any time when a prospectus relating to the registration statement is
required to be delivered under the Act of the happening of any event as a
result of which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing.

                           (g)        Cause
all such Registrable Securities registered pursuant hereto to be listed on each
securities exchange on which similar securities issued by the Company are then
listed.

                           (h)        Provide
a transfer agent and registrar for all Registrable Securities registered
pursuant hereto and a CUSIP number for all such Registrable Securities, in each
case not later than the effective date of such registration.

                           (i)         Furnish,
at the request of Holder requesting registration of Registrable Securities
pursuant to this Section 2, on the date that such Registrable Securities
are delivered to the underwriters for sale in connection with a registration
pursuant to this Section 2, if such securities are being sold through
underwriters, or, if such securities are not being sold through underwriters,
on the date that the registration statement with respect to such securities
becomes effective, (i) an opinion, dated such date, of the counsel representing
the Company for the purposes of such registration, in form and substance as is
customarily given to underwriters in an underwritten public offering, addressed
to the underwriters, if any, and to the Holder and (ii) a letter dated
such date, from the independent certified public accountants of the Company, in
form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering, addressed to
the underwriters, if any, and to the Holder.

             2.3        Furnish
Information.  It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Section 2 with respect to the Registrable Securities that Holder shall
furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such
securities as shall be required to effect the registration of Holder’s
Registrable Securities.

             2.4        Expenses
of Company Registration.  The Company shall bear and pay
all expenses incurred in connection with any registration, filing or
qualification of the Registrable Securities with respect to the registration
pursuant to Section 2.1 for Holder (which right may be assigned as provided in
Section 2.10), including (without limitation) all registration, filing and
qualification fees, printers and accounting fees relating or apportionable
thereto and the fees and disbursements of one counsel for the selling
stockholders included in such registration selected by them, but excluding
underwriting discounts and commissions relating to the Registrable Securities.

             2.5        Underwriting Requirements.  In
connection with any offering involving an underwriting of shares of the
Company’s capital stock, the Company shall not be required under
Section 2.1 to include any of the Holder’s securities in such underwriting
unless Holder accepts the terms of the underwriting as agreed upon between the
Company and the underwriters selected by it (or by other persons entitled to
select the underwriters), and then only in such quantity as the underwriters
determine in their sole discretion will not jeopardize the success of the
offering by the Company.  If the total
amount of securities, including Registrable Securities, requested by
stockholders to be included in such offering exceeds the amount of securities
sold other than by the Company that the underwriters determine in their sole
discretion is compatible with the success of the offering, then the Company
shall be required to include in the offering only that number of such
securities, including Registrable Securities, which the underwriters determine
in their sole discretion will not jeopardize the success of the offering (the
securities so included to be apportioned pro-rata among the selling stockholders
according to the total amount of securities entitled to be included therein
owned by each selling stockholder or in such other proportions as shall
mutually be agreed to by such selling stockholders) but in no event shall
(i) the amount of securities of all selling stockholders included in the
offering be reduced below twenty percent (20%) of the total amount of
securities included in such offering, or (ii) notwithstanding (i) above,
any shares being sold by a stockholder exercising a demand registration right
similar to that granted in Section 1.2 of the Investors Rights Agreement be
excluded from such offering.  For
purposes of the preceding subsections concerning apportionment, for any selling
stockholder which is a holder of registrable securities under this Agreement or
the Investors Rights Agreement and which is a partnership or corporation, the
partners, retired partners and stockholders of such holder, or the estates and
family members of any such partners and retired partners and any trusts for the
benefit of any of the foregoing persons shall be deemed to be a single “selling
stockholder,” and any pro-rata reduction with respect to such “selling
stockholder,” shall be based upon the aggregate amount of shares carrying
registration rights owned by all entities and individuals included in such
“selling stockholder,” as defined in this sentence.

             2.6        Delay of
Registration.  Holder shall not have any right
to obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 2.

             2.7        Indemnification.  In the
event any Registrable Securities are included in a registration statement under
this Section 2:

                           (a)         To the
extent permitted by law, the Company will indemnify and hold harmless Holder,
any underwriter (as defined in the Act) for Holder and each person, if any, who
controls such Holder or underwriter within the meaning of the Act or the
Exchange Act, against any losses, claims, damages or liabilities (joint or
several) to which they may become subject under the Act, the Exchange Act or
other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
of the following statements, omissions or violations (each, a
“Violation”):  (i) any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto,
(ii) the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein not
misleading, or (iii) any violation or alleged violation by the Company of
the Act, the Exchange Act, any state securities law or any rule or regulation
promulgated under the Act, or the Exchange Act or any state securities law; and
the Company will pay to such Holder, underwriter or controlling person, as
incurred, any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that
the indemnity agreement contained in this subsection 2.7(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable in
any such case for any such loss, claim, damage, liability or action to the
extent that it arises out of or is based upon a Violation which occurs in
reliance upon and in conformity with written information furnished expressly
for use in connection with such registration by any such Holder, underwriter or
controlling person.

                           (b)         To the
extent permitted by law, Holder will indemnify and hold harmless the Company,
each of its directors, each of its officers who has signed the registration
statement, each person, if any, who controls the Company within the meaning of
the Act, any underwriter, any other holder selling securities in such
registration statement and any controlling person of any such underwriter or
other holder, against any losses, claims, damages or liabilities (joint or
several) to which any of the foregoing persons may become subject, under the
Act, or the Exchange Act or other federal or state law, insofar as such losses,
claims, damages or liabilities (or actions in respect thereto) arise out of or
are based upon any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by Holder expressly for use in connection with
such registration; and such Holder will pay, as incurred, any legal or other
expenses reasonably incurred by any person intended to be indemnified pursuant
to this subsection 2.7(b), in connection with investigating or defending any
such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this subsection
2.7(b) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent
of the Holder, which consent shall not be unreasonably withheld; provided, that, in no event shall any
indemnity under this subsection 2.7(b) exceed the gross proceeds from the
offering received by the Holder.

                           (c)         Promptly
after receipt by an indemnified party under this Section 2.7 of notice of
the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 2.7, deliver to the indemnifying
party a written notice of the commencement thereof and the indemnifying party
shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed,
to assume the defense thereof with counsel mutually satisfactory to the
parties; provided, however, that an indemnified party (together with all other
indemnified parties which may be represented without conflict by one counsel)
shall have the right to retain one separate counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate
due to actual or potential differing interests between such indemnified party
and any other party represented by such counsel in such proceeding.  The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this
Section 2.7, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 2.7.

                           (d)         If the
indemnification provided for in this Section 2.7 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect
to any loss, liability, claim, damage or expense referred to therein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the
statements or omissions that resulted in such loss, liability, claim, damage or
expense as well as any other relevant equitable considerations.  The relative fault of the indemnifying party
and of the indemnified party shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative
intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission.

                           (e)         Notwithstanding
the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection
with the underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control.

                           (f)         The
obligations of the Company and Holder under this Section 2.7 shall survive
the completion of any offering of Registrable Securities in a registration
statement under this Section 2 and otherwise.

             2.8        Reports
under Securities Exchange Act of 1934.  With a view
to making available to the Holder the benefits of Rule 144 promulgated under
the Act and any other rule or regulation of the SEC that may at any time permit
Holder to sell securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company agrees to:

                           (a)         make
and keep public information available, as those terms are understood and
defined in SEC Rule 144;

                           (b)         take
such action, including the voluntary registration of its common stock under
Section 12 of the Exchange Act, as is necessary to enable the Holder to utilize
Form S–3 for the sale of its Registrable Securities, such action to be
taken as soon as practicable after the end of the fiscal year in which the
first registration statement filed by the Company for the offering of its
securities to the general public is declared effective;

                           (c)         file
with the SEC in a timely manner all reports and other documents required of the
Company under the Act and the Exchange Act; and

                           (d)         furnish
to Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied
with the reporting requirements of SEC Rule 144, the Act and the Exchange Act,
or that it qualifies as a registrant whose securities may be resold pursuant to
Form S–3 (at any time after it so qualifies), (ii) a copy of the
most recent annual or quarterly report of the Company and such other reports
and documents so filed by the Company, and (iii) such other information as
may be reasonably requested in availing Holder of any rule or regulation of the
SEC which permits the selling of any such securities without registration or
pursuant to such form.

             2.9        Form S-3 Registration.  In case the
Company shall receive from Holder a written request that the Company effect a
registration on Form S–3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by Holder, the
Company will:

                           (a)         as
soon as practicable, effect such registration and all such qualifications and
compliances as may be so requested and as would permit or facilitate the sale
and distribution of all or such portion of Holder’s Registrable Securities as
are specified in such request; provided,
however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 2.9:  (1) if Form S–3 is not available
for such offering by Holder; (2) if Holder, together with the holders of
any other securities of the Company entitled to inclusion in such registration,
proposes to sell Registrable Securities and such other securities (if any) at
an aggregate price to the public (net of any underwriters’ discounts or
commissions) of less than $1,000,000; (3) if the Company shall furnish to
Holder a certificate signed by the President of the Company stating that, in
the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its stockholders for such Form S–3
registration to be effected at such time, in which event the Company shall have
the right to defer the filing of the Form S–3 registration statement for
a period of not more than sixty (60) days after receipt of the request of
Holder under this Section 2.9; provided,
however, that the Company shall not utilize this right more than
once in any twelve-month period; (4) if the Company has already effected
three registrations on Form S–3 for the Holder pursuant to this Section 2
or holders of registrable securities pursuant to Section 1.12 of the Investors
Rights Agreement; or (5) in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general
consent to service of process in effecting such registration, qualification or
compliance.

                           (b)         Subject
to the foregoing, the Company shall file a registration statement covering the
Registrable Securities as soon as practicable after receipt of the request of
Holder.  All expenses incurred in
connection with a registration requested pursuant to this Section 2.9,
including (without limitation) all registration, filing, qualification,
printer’s and accounting fees and the reasonable fees and disbursements of one
counsel for the selling stockholders participating in such registration and
counsel for the Company, but excluding any underwriters’ discounts or
commissions associated with Registrable Securities, shall be borne by the
Company.  Registrations effected
pursuant to this Section 2.9 shall not be counted as registrations
effected pursuant to Section 2.1.

                           (c)         Following
the effectiveness of a registration statement filed pursuant to this section
2.9, the Company may, at any time, suspend the effectiveness of such registration
statement for up to 60 days, as appropriate (a “Suspension Period”), by giving
notice to Holder, if the Company shall have determined that the Company may be
required to disclose any material corporate development which disclosure may
have a material adverse effect on the Company. 
Notwithstanding the foregoing, no more than one Suspension Period may
occur in any 12–month period.  The
period of any such suspension of the registration statement shall be added to
the period of time the Company agrees to keep the registration statement
effective as provided in Section 2.2. 
Company shall use its reasonable efforts to limit the duration and
number of any Suspension Periods. 
Holder agrees that, upon receipt of any notice from the Company of a
Suspension Period, such Holder shall forthwith discontinue disposition of
shares covered by such registration statement or prospectus until such Holder
(i) is advised in writing by the Company that the use of the applicable
prospectus may be resumed, (ii) has received copies of a supplemental or
amended prospectus, if applicable, and (iii) has received copies of any
additional or supplemental filings which are incorporated or deemed to be
incorporated by reference in such prospectus.

             2.10     Assignment of Registration Rights.  The rights
to cause the Company to register Registrable Securities pursuant to this
Agreement may be assigned (but only with all related obligations) by Holder to
a transferee or assignee of all of the Registrable Securities (subject to
appropriate adjustment for stock splits, stock dividends, combinations and
other recapitalizations); provided
that (a) the Company is, within a reasonable time after such transfer,
furnished with written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are
being assigned; (b) such transferee or assignee agrees in writing to be
bound by and subject to the terms and conditions of this Agreement; and
(c) such assignment shall be effective only if immediately following such
transfer the further disposition of such securities by the transferee or
assignee is restricted under the Act. 
For the purposes of determining the number of shares of Registrable Securities
held by a transferee or assignee, the holdings of transferees and assignees of
Holder which are wholly-owned subsidiaries or affiliates of Holder shall be
aggregated together and with Holder; provided
that all assignees and transferees who would not qualify
individually for assignment of registration rights shall have a single
attorney-in-fact for the purpose of exercising any rights, receiving notices or
taking any action under this Agreement.

             2.11     Termination
or Suspension of Registration Rights.

                           (a)         Holder
shall not be entitled to exercise any right provided for in this Agreement
after July 27, 2005.

                           (b)         In
addition, the right of Holder to request registration or inclusion in any
registration pursuant to this Agreement shall be suspended during any period of
time when all shares of Registrable Securities held or entitled to be held upon
conversion by Holder may immediately be sold under Rule 144 during any 90-day
period; provided, however, that
the provisions of this Section 2.11(b) shall not apply to Holder if Holder owns
more than one percent (1%) of the Company’s outstanding stock until such time
as Holder owns less than one percent (1%) of the outstanding stock of the
Company.

3.          MISCELLANEOUS.

             3.1        Governing
Law.  The Agreement shall be governed
by and construed under the laws of the State of California as applied to
agreements among California residents entered into and to be performed entirely
within California.

             3.2        Successors
and Assigns.  Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors, and administrators of
the parties hereto and shall inure to the benefit of and be enforceable by each
person who shall be a holder of Registrable Securities from time to time; provided however, that prior to the
receipt by the Company of adequate written notice of the transfer of any
Registrable Securities specifying the full name and address of the transferee,
the Company may deem and treat the person listed as the holder of such shares
in its records as the absolute owner and holder of such shares for all
purposes.

             3.3        Entire
Agreement.  This Agreement constitutes the
full and entire understanding and agreement between the parties with regard to
the subjects hereof and supersedes any prior agreements by the Company for the
benefit of any party hereto regarding the registration of securities.  No party shall be liable or bound to any
other in any manner by any representations, warranties, covenants and
agreements except as specifically set forth herein.

             3.4        Severability.  In case any
provision of the Agreement shall be invalid, illegal, or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

             3.5        Amendments
and Waivers.  Any term of
this Agreement may be amended and the observance of any term of this Agreement
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the holders of a majority of the Registrable Securities.  Any amendment or waiver effected in
accordance with this paragraph shall be binding upon Holder, any future holder
of Registrable Securities and the Company.

             3.6        Notices.  All notices
required or permitted hereunder shall be in writing and shall be deemed
effectively given:  (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
facsimile if sent during normal business hours of the recipient; if not, then
on the next business day, (c) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or
(d) one (1) day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of
receipt.  All communications shall be
sent to the party to be notified at the address or facsimile number set forth
below or at such other address as such party may designate by ten (10) days
advance written notice to the other parties hereto:

             if to the
Company:

                                                     IntraBiotics
Pharmaceuticals, Inc.

                                                     1245
Terra Bella Avenue

                                                     Mountain
View, CA  94043

                                                     Attention:  Kenneth Kelley, President

                                                     Telephone:  (650) 526-6800

                                                     Facsimile:  (650) 969-0663

             if to the
Holder:

                                                     Diversa
Corporation

                                                     4955
Directors Place

                                                     San
Diego, CA  92121

                                                     Attention:
Karin Eastham, Senior Vice President,

                                                        Finance and Chief Financial Officer

                                                     Telephone:  (858) 526-5000

                                                     Facsimile:  (858) 526-5050

             3.7        Attorneys’
Fees.  In the event that any dispute
among the parties to this Agreement should result in litigation, the prevailing
party in such dispute shall be entitled to recover from the losing party all
fees, costs and expenses of enforcing any right of such prevailing party under
or with respect to this Agreement, including without limitation, such
reasonable fees and expenses of attorneys and accountants, which shall include,
without limitation, all fees, costs and expenses of appeals.

             3.8        Titles
and Subtitles.  The titles of the sections and
subsections of this Agreement are for convenience of reference only and are not
to be considered in construing this Agreement.

3.9        Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

                           IN WITNESS WHEREOF, the parties hereto have executed this
Registration Rights Agreementas of the date set forth in the first
paragraph hereof.

	COMPANY:	 	HOLDER:	 
	 	 	 	 
	INTRABIOTICS PHARMACEUTICALS, INC.	DIVERSA CORPORATION
	 	 
	By:	/s/ Kenneth J. Kelley	By:	/s/ Karin Eastham
	 	

	 	 	

	 
	 	Kenneth J. Kelley	 	Karin
  Eastham
	 	President and Chief
  Executive Officer	 	Senior
  Vice President, Finance and Chief Financial Officer
										

 

Document
Number:  386440Prepared by MerrillDirect

Exhibit 10.2

INTRABIOTICS PHARMACEUTICALS,
INC.

Amended and Restated 1995 Stock
Option Plan

Adopted February 15, 1995

Amended on June 13, 1996

Amended on July 29, 1997

Amended on October 21, 1997

Amended on June 18, 1998

Amended on October 22, 1998

Amended on June 10, 1999

Amended on January 26, 2000

Amended on April 27, 2001

             1.          Purpose of the Plan. The purposes of this Amended and Restated 1995 Stock
Option Plan are to attract and retain the best available personnel for
positions’ of substantial responsibility, to provide additional incentive to
the Employees and Consultants of the Company and to promote the success of the
Company’s business.

             Options granted hereunder may be
either Incentive Stock Options or Nonstatutory Stock Options, at the discretion
of the Board and as reflected in the terms of the written option agreement.

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

                           (a)         “Board”
shall mean the
Board of Directors of the Company.

                           (b)         “Code”
shall mean the
Internal Revenue Code of 1986, as amended.

                           (c)         “Committee”
shall mean the
Committee appointed by the Board in accordance with paragraph (a) of Section 4
of the Plan, or, if no Committee is appointed, then the Board.

                           (d)        
“Common Stock” shall mean the Common Stock, $0.001 par value per share, of the Company.

                           (e)        
“Company” shall mean IntraBiotics Pharmaceuticals, Inc., a Delaware corporation.

                           (f)        
“Consultant” shall mean any person who is engaged by the Company or any Parent or
Subsidiary to render consulting services, including serving on the Company’s
Scientific Advisory Board, and is compensated for such consulting services, and
any director of the Company whether compensated for such services or not;
provided that if and in the event the Company registers any class of any equity
security pursuant to Section 12 of the Exchange Act, the term Consultant shall
thereafter not include directors who are not compensated for their services or
are paid only a director’s fee by the Company.

                           (g)        “Continuous Status as an Employee or
Consultant” shall mean the absence of any interruption or termination of service as
an Employee or Consultant. Continuous Status as an Employee or Consultant shall
not be considered interrupted in the case of sick leave, military leave or any
other leave of absence approved by the Board; provided that such leave is for a
period of not more than 90 days or reemployment upon the expiration of such
leave is guaranteed by contract or statute.

                           (h)        “Disinterested
Person” shall mean a director (i) who is not, during the one year prior to
service as an administrator of the Plan pursuant to Section 4(a), or during
such service, granted or awarded equity securities pursuant to the Plan or any
other plan of the Company or any of its affiliates except as permitted by Rule
16b-3(c)(2)(i)(A)-(D) under the Exchange Act or (ii) who is otherwise
considered to be a “disinterested person” in accordance with Rule
16b-3(c)(2)(i), or any other applicable rules, regulations or interpretation of
the Securities Exchange Commission. Any such person shall otherwise comply with
the requirements of Rule 16b-3 under the Exchange Act.

                           (i)         “Employee”
shall mean any
person, including officers and directors, employed by the Company or any Parent
or Subsidiary of the Company. The payment of a director’s fee by the Company
shall not be sufficient to constitute “employment” by the Company.

                           (j)         “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

                           (k)        “Incentive
Stock Option” shall mean an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code.

                           (l)         “Nonstatutory
Stock Option” shall mean an Option not intended to qualify as an Incentive Stock
Option.

                           (m)       “Option”
shall mean a
stock option granted pursuant to the Plan.

                           (n)        “Optioned
Stock” shall mean the Common Stock subject to an Option.

                           (o)         “Optionee”
shall mean an
Employee or Consultant who receives an Option.

                           (p)         “Parent” shall mean a “parent corporation” whether now or
hereafter existing, as defined in Section 425(e) of the Code.

                           (q)         “Plan”
shall mean this
Amended and Restated 1995 Stock Option Plan.

                           (r)         “Share”
shall mean a
share of the Common Stock, as adjusted in accordance with Section 11 of the
Plan.

                           (s)         “Stock
Option Agreements” shall mean Stock Option Agreements and Amended and Restated Stock Option
Agreements as defined in Section 16 of the Plan.

                           (t)         “Subsidiary” shall mean a “subsidiary corporation” whether now or
hereafter existing, as defined in Section 425(f) of the Code.

             3.          Stock Subject to the Plan. Subject to the provisions of Section 11 of the Plan,
the maximum aggregate number of Shares which may be optioned and sold under the
Plan is nine million forty-seven thousand one hundred eight (9,047,108) Shares.
The Shares may be authorized, but unissued, or reacquired Common Stock.

             If an Option should expire or
become unexercisable for any reason without having been exercised in full, the
unpurchased Shares which were subject thereto shall, unless the Plan shall have
been terminated, become available for future grant under the Plan.
Notwithstanding any other provision of the Plan, Shares issued under the Plan
and later repurchased by the Company shall not become available for future
grant or sale under the Plan.

             4.          Administration
of the Plan.

                           (a)         Procedure. The Plan shall be administered by the Board.

                                        (i)         The Board may appoint a Committee consisting of not less than two members
of the Board to administer the Plan on behalf of the Board, subject to such
terms and conditions as the Board may prescribe. Once appointed, the Committee
shall continue to serve until otherwise directed by the Board. Members of the
Board who are either eligible for Options or have been granted Options may vote
on any matters affecting the administration of the Plan or the grant of any
Options pursuant to the Plan, except that no such member shall act upon the
granting of an Option to himself, but any such member may be counted in
determining the existence of a quorum at any meeting of the Board during which
action is taken with respect to the granting of Options to him.

                                        (ii)        Notwithstanding the foregoing subparagraph (i), if and in any event the
Company registers any class of any equity security pursuant to Section 12 of
the Exchange Act, any grants of Options to officers or directors shall only be
made by the Board, if each member of the Board is a Disinterested Person;
provided, however, if each member of the Board is not a Disinterested Person,
then grants of Options to officers or directors shall only be made by a
Committee of two or more directors, each of whom is a Disinterested Person.

                                        (iii)       Subject to the foregoing subparagraphs (i) and (ii), from time to time
the Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies however caused, or remove all members of
the Committee and thereafter directly administer the Plan.

                           (b)         Powers of the Committee. Subject to the provisions of the Plan, the Committee
shall have the authority, in its discretion: (i) to grant Incentive Stock
Options or Nonstatutory Stock Options; (ii) to determine, upon review of
relevant information and in accordance with Section 8(b) of the Plan, the fair
market value of the Common Stock; (iii) to determine the exercise price per
share of Options to be granted, which exercise price shall be determined in
accordance with Section 8(a) of the Plan; (iv) to determine the Employees or
Consultants to whom, and the time or times at which, Options shall be granted
and the number of shares to be represented by each Option; (v) to interpret the
Plan; (vi) to prescribe, amend and rescind rules and regulations relating to
the Plan; (vii) to determine the terms and provisions of each Option granted
(which need not be identical) and, with the consent of the holder thereof,
modify or amend each Option; (viii) to defer (with the consent of the Optionee)
the exercise date of any Option, consistent with the provisions of Section 5 of
the Plan; (ix) to authorize any person to execute on behalf of the Company any
instrument required to effectuate the grant of an Option previously granted by
the Board; and (x) to make all other determinations deemed necessary or
advisable for the administration of the Plan.

                           (c)         Effect of Committee’s Decision. All decisions,
determinations and interpretations of the Committee shall be final and binding
on all Optionees and any other holders of any Options granted under the Plan.

             5.          Eligibility.

                           (a)         Nonstatutory Stock Options may be granted only to
Employees and Consultants. Incentive Stock Options may be granted only to
Employees. An Employee or Consultant who has been granted an Option may, if he
is otherwise eligible, be granted an additional Option or Options.

                           (b)         When any Options designated as Incentive Stock
Options become first available for purchase, and when the aggregate of all
Incentive Stock Options granted to an Employee by the Company or any Parent or
Subsidiary would result in Shares having an aggregate fair market value
(determined for each Share as of the date of grant of the Option covering such
Share) in excess of $100,000, then upon exercise of one or more Incentive Stock
Options during any calendar year, any Options in excess of such dollar amount
shall be treated for all purposes as Nonstatutory Stock Options.

                           (c)         Section 5(b) of the Plan shall apply only to an
Incentive Stock Option evidenced by an “Incentive Stock Option Agreement” which
sets forth the intention of the Company and the Optionee that such Option shall
qualify as an Incentive Stock Option. 
Section 5(b) of the Plan shall not apply to any Option evidenced by a
“Nonstatutory Stock Option Agreement” which sets forth the intention of the
Company and the Optionee that such Option shall be a Nonstatutory Stock Option.

                           (d)         The Plan shall not confer upon any Optionee any
right with respect to continuation of employment or consulting relationship
with the Company, nor shall it interfere in any way with his right or the
Company’s right to terminate his employment or consulting relationship at any
time, with or without cause.

             6.          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 as described in Section 17 of the Plan.  It shall continue in effect for a term of ten (10) years unless
sooner terminated under Section 13 of the Plan.  Termination of the Plan shall not affect the obligations of the
Company or the rights of Optionees pursuant to Options outstanding on the date
of termination.

             7.          Term of Option.  The term of each Incentive Stock Option shall be ten
(10) years from the date of grant thereof or such shorter term as may be
provided in the Incentive Stock Option Agreement.  The term of each Nonstatutory Stock Option shall be ten (10)
years from the date of grant thereof or such shorter term as may be provided in
the Nonstatutory Stock Option Agreement. 
However, in the case of an Incentive Stock Option granted to an Optionee
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 Option shall be five (5) years from the
date of grant thereof or such shorter term as may be provided in the Incentive
Stock Option Agreement.

             8.          Exercise
Price and Consideration.

                           (a)         The per Share exercise price for the Shares to be
issued pursuant to exercise of an Option shall be such price as is determined
by the Committee, but’ shall be subject to the following:

                                        (i)         In the case of an Incentive Stock Option

                                                     (A)        granted to an Employee or Consultant 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 no
less than 110% of the fair market value per Share on the date of grant.

                                                     (B)        granted to an Employee or Consultant, the per Share
exercise price shall be no less than 100% of the fair market value per Share on
the date of grant.

                                        (ii)        In the case of a Nonstatutory Stock Option

                                                     (A)        granted to an Employee or Consultant who, at the
time of the grant of such 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 no less than 110% of the
fair market value per Share on the date of the grant.

                                                     (B)        granted to an Employee or Consultant, the per Share
exercise price shall be no less than 85% of the fair market value per Share on
the date of grant.

                           (b)         The fair market value shall be determined by the
Committee in its discretion; provided, however, that where there is a public
market for the Common Stock, the fair market value per Share shall be the mean
of the bid and asked prices (or the closing price per share if the Common Stock
is listed on the National Association of Securities Dealers Automated Quotation
(“NASDAQ”) National Market System) of the Common Stock for the date of grant,
as reported in the Wall Street Journal (or, if not so reported, as otherwise
reported by the NASDAQ System) or, in the event the Common Stock is listed on a
stock exchange, the fair market value per Share shall be the closing price on
such exchange on the date of grant of the Option, as reported in the Wall
Street Journal.

                           (c)         The consideration to be paid for the Shares to be
issued upon exercise of an Option, including the method of payment, shall be
determined by the Committee and may consist entirely of cash, check or other
Shares of Common Stock which (i) either have been owned by the Optionee for
more than six (6) months on the date of surrender or were not acquired,
directly or indirectly, from the Company, and (ii) have a fair market value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised, or any combination of such methods of
payment.

             9.          Exercise
of Option.

                           (a)         Procedure for Exercise.  Any Option granted hereunder shall be exercisable at
such times and under such conditions as determined by the Board, including
performance criteria with respect to the Company and/or the Optionee, and as
shall be permissible under the terms of the Plan.

                                        (i)         Stock Option
Agreement.  Each grant of an Option under the Plan shall be
evidenced by a Stock Option Agreement.

                                        (ii)        Exercisability.  The Stock Option Agreement shall specify the date
when all or any installment of the Option is to become exercisable.  An Option shall become exercisable at the
rate of at least twenty percent (20%) per year over five (5) years from the
date the Option is granted; provided however, that an Option granted to an
officer, director or consultant (within the meaning of Section 260.140.41 of
Title 10 of the California Code of Regulations) may become fully exercisable,
subject to reasonable conditions such as continued employment, at any time or
during any period established by the Company. 
Subject to the preceding sentence, the vesting of any Option shall be
determined by the Committees at its sole discretion.

                                        (iii)       No Fractional Shares.  An Option may not be exercised for a fraction of a
Share.

                                        (iv)        Exercise.  An Option 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 Stock Option Agreement by the person entitled to exercise
the Option and full payment for the Shares with respect to which the Option is
exercised has been received by the Company. 
Full payment may, as authorized by the Committee, consist of
consideration and method of payment allowable under Section 8(c) of the Plan.

                                        (v)         No Rights as a
Stockholder.  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 the Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be
issued) such stock certificate promptly upon exercise of the Option.  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 Section 11 of the Plan.

                           (b)         Termination of Status as an Employee or
Consultant.  In the event of termination of an Optionee’s
Continuous Status as an Employee or Consultant (as the case may be), such
Optionee may, at any time within thirty (30) days or such longer period of
time, not exceeding three (3) months in the case of an Incentive Stock Option
or six (6) months in the case of a Nonstatutory Stock Option as determined by
the Board (with such determination in the case of a Incentive Stock Option
being made at the time of grant of the Option), after the date of such
termination (but in no event later than the date of expiration of the term of
such Option as set forth in the Stock Option Agreement), exercise his Option to
the extent that he was entitled to exercise it at the date of such
termination.  To the extent that he was
not entitled to exercise the Option at the date of such termination, or if he
does not exercise such Option (which he was entitled to exercise) within the
time specified herein, the Option shall terminate.

                           (c)         Disability of Optionee.  Notwithstanding the provisions of Section 9(b)
above, in the event of termination of an Optionee’s Continuous Status as an
Employee or Consultant as a result of his disability, he may, at any time
within six (6) months or such longer period of time, not exceeding twelve (12)
months as determined by the Board (with such determination in the case of an
Incentive Stock Option being made at the time of grant of the Option), from the
date of such termination (but in no event later than the date of expiration of
the term of such Option as set forth in the Stock Option Agreement), exercise
his Option to the extent he was entitled to exercise it at the date of such
termination.  To the extent that he was
not entitled to exercise the Option at the date of termination, or if he does
not exercise such Option’ (which he was entitled to exercise) within the time
specified herein, the Option shall terminate.

                           (d)         Death of Optionee.  In the event of the death of an Optionee:

                                        (i)         during the term of an Option held by an Optionee who was, at the time of
his death, an Employee or Consultant of the Company and who shall have been in
Continuous Status as an Employee or Consultant since the date of grant of the
Option, the Option may be exercised, at any time within six (6) months
following the date of death (but in no event later than the date of expiration
of the term of such Option as set forth in the Stock Option Agreement), by the
Optionee’s estate or by a person who acquired the right to exercise the Option
by bequest or inheritance, but only to the extent of the right to exercise that
would have accrued had the Optionee continued living and remained in Continuous
Status as an Employee or Consultant six (6) months after the date of death, subject
to the limitation set forth in Section 5(b); or

                                        (ii)        within thirty (30) days or such other period of
time, not exceeding three (3) months as determined by the Board (with such
determination in the case of an Incentive Stock Option being made at the time
of grant of the Option), after the termination of Continuous Status as an
Employee or Consultant, the Option may be exercised, at any time within six (6)
months following the date of death (but in no event later than the date of
expiration of the term of such Option as set forth in the Stock Option
Agreement), by the Optionee’s estate or by a person who acquired the right to
exercise that had accrued at the date of termination.

             10.        Non-Transferability of Options.  The Option 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 Optionee, only by the Optionee.

             11.        Adjustments Upon Changes in Capitalization
or Merger.  Subject to any required action by the stockholders
of the Company, the number of shares of Common Stock covered by each
outstanding Option, and the number of shares of Common Stock which have been
authorized for issuance under the Plan but as to which no Options have yet been
granted or which have been returned to the Plan upon cancellation or expiration
of an Option, as well as the price per share of Common Stock covered by each
such outstanding Option, 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 similar transaction. 
Such adjustment shall be made by the Board, whose determination in that
respect shall be final, binding and conclusive.  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 thereof shall be made
with respect to, the number or price of shares of Common Stock subject to an
Option.

             In the event of the proposed
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least fifteen (15) days prior to such proposed action.  To the extent it has not been previously
exercised, the Option will terminate immediately prior to the consummation of
such proposed action.  In the event of a
merger of the Company with or into another corporation in which the Company is
not the surviving corporation or upon the sale of substantially all of the
property of the Company to another corporation or person, the surviving
corporation may assume any Options outstanding under the Plan or an equivalent
option may be substituted’ by such successor employer corporation or a parent
or subsidiary of such successor corporation, if such successor corporation
agrees to assume the Options or to substitute an equivalent option.

             Notwithstanding the vesting
schedules set forth in Options outstanding under the Plan, in the event of a
merger or sale of the Company described above, (i) Options held by persons who
are then Employees but not officers of the Company shall become vested as to
one-half (1/2) of the then unvested shares subject to such Options as of the
effective date of the change in control; (ii) Options held by any person who is
an Employee and who holds the title of vice president or higher shall become
fully vested in the event that such person’s service with the Company is
involuntarily terminated without Cause (as defined below) or voluntarily
terminated for Good Reason (as defined below), in either case within thirteen
(13) months following the change in control; and (iii) Options held by persons
who are then members of the Board of Directors of the Company but who are not
Employees shall become fully vested and immediately exercisable as of the
effective date of the change in control.

             For purposes of this option,
“Cause” means that, in the reasonable determination of the Company, the
officer:

                           (i)         has been indicted or convicted of any felony or any
crime involving dishonesty that is likely to inflict or has inflicted
demonstrable and material injury on the business of the Company;

                           (ii)        has participated in any fraud against the Company;
or

                           (iii)       has intentionally damaged any property of the
Company thereby causing demonstrable and material injury to the business of the
Company;

provided that Cause shall not exist based on conduct described in
clause (ii) or clause (iii) unless the conduct described in such clause has not
been cured within fifteen (15) days following the officer’s receipt of written
notice from the Company specifying the particulars of the conduct constituting
Cause.

             For purposes of this option, “Good
Reason” means that any of the following is undertaken without the officer’s
express written consent:

                           (i)         the assignment to the officer of any duties or
responsibilities that results in a significant diminution in the officer’s
function as in effect immediately prior to the effective date of the change in
control; provided, however, that a mere change in the officer’s title or
reporting relationships shall not constitute Good Reason;

                           (ii)        a material reduction by the Company in the officer’s
annual base salary, as in effect on the effective date of the change in control
or as increased thereafter;

                           (iii)       any failure by the Company to continue in effect any
benefit plan or program, including fringe benefits, incentive plans and plans
with respect to the receipt of securities of the Company, in which the officer
is participating immediately prior to the effective date of the change in
control (hereinafter referred to as “Benefit Plans”); or the taking of any
action by the Company that would adversely affect the officer’s participation
in or reduce the officer’s benefits under the Benefit Plans; provided, however,
that “Good Reason” shall not exist under this paragraph following a change in
control if the Company offers a range of benefit plans and programs that, taken
as a whole, are comparable to the Benefit Plans; or

                           (iv)        a relocation of the officer’s business office to a
location more than fifty (50) miles from the location at which the officer
performs duties as of the effective date of the change in control, except for
required travel by the officer on the Company’s business to an extent
substantially consistent with the officer’s business travel obligations prior
to the change in control.

             12.        Time of Granting Options.  The date of grant of an Option shall, for all
purposes, be the date on which the Committee makes the determination granting
such Option.  Notice of the
determination shall be given to each Employee or Consultant to whom an Option
is so granted within a reasonable time after the date of such grant.

             13.        Amendment,
Suspension and Termination of the Plan.

                           (a)         Amendment and Termination.  The Board may amend, suspend or terminate the Plan
at any time in such respects as the Board may deem advisable; provided that the
following revisions or amendments shall require approval of the stockholders of
the Company in the manner described in Section 17 of the Plan:

                                        (i)         any increase in the number of Shares subject to the Plan, other than in
connection with an adjustment under Section 11 of the Plan;

                                        (ii)        any change in the designation of the class of persons eligible to be
granted options; or

                                        (iii)       if the Company has a class of equity securities registered under Section
12 of the Exchange Act at the time of such revision or amendment, any material
increase in the benefits accruing to participants under the Plan.

                           (b)         Stockholder Approval.  If any amendment requiring stockholder approval
under Section 13(a) of the Plan is made subsequent to the first registration of
any class of equity securities by the Company under Section 12 of the Exchange
Act, such stockholder approval shall be solicited as described in Section 17 of
the Plan.

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

             14.        Conditions Upon Issuance of Shares.  Shares shall not be issued pursuant to the exercise
of an Option unless the exercise of such Option and the issuance and delivery
of such Shares pursuant thereto shall comply with all relevant provisions of
law, including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the Shares may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

             Any Shares issued upon
exercise of an Option shall be subject to such rights of repurchase, rights of
first refusal and other transfer restrictions as the Committee may
determine.  Such restrictions shall be
set forth in the applicable Stock Option Agreement and shall apply in addition
to any restrictions that may apply to holders of Shares generally.

             As a condition to the exercise of
an Option, the Company may require the person exercising such Option 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 of the aforementioned relevant provisions of
law.

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

             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.

             16.        Stock Option Agreements.  All Options shall be evidenced by written Stock
Option Agreements or Amended and Restated Stock Option Agreements in such form
as the Committee shall approve.  The
provisions of the various Stock Option Agreements need not be identified.

             17.        Stockholder
Approval.

                           (a)         Continuance of the Plan shall be subject to approval
by the stockholders of the Company within twelve (12) months after the date the
Plan is adopted.  Any Option exercised
before stockholder approval is obtained shall be rescinded if stockholder
approval is not obtained within twelve (12) months after the plan is
adopted.  Such Shares shall not be
counted in determining whether such approval is obtained.

                           (b)         If and in the event that the Company registers any
class of equity securities pursuant to Section 12 of the Exchange Act, any
required approval of the stockholders of the Company obtained after such
registration shall be solicited substantially in accordance with Section 14(a)
of the Exchange Act and the rules and regulations promulgated thereunder.

                           (c)         If any required approval by the stockholders of the
Plan itself or of any amendment thereto is solicited at any time otherwise than
as described in Section 17(b) hereof, then the Company shall, at or prior to
the first annual meeting of stockholders held subsequent to the later of (1)
the first registration of any class of equity securities of the Company under
Section 12 of the Exchange Act or (2) the granting of an Option hereunder to an
officer or director after such registration, do the following:

                                        (i)         furnish in writing to the stockholders entitled to
vote for the Plan substantially the same information which would be required
(if proxies to be voted with respect to approval or disapproval of the Plan or
amendment were then being solicited) by the rules and regulations in effect
under Section 14(a) of the Exchange Act at the time such information is
furnished; and

                                        (ii)        file with, or marl for filing to, the Securities and Exchange Commission
four (4) copies of the written information referred to in subsection (i) hereof
not later than the date on which such information is first sent or given to
stockholders.

             18.        Information to Optionees.  The Company shall provide to each Optionee, during
the period for which such Optionee has one or more Options outstanding,
financial statements at least annually and copies of all annual reports and
other information which are provided to all stockholders of the Company.  The Company shall not be required to provide
such information if the issuance of Options under the Plan is limited to key
employees whose duties in connection with the Company assure their access to
equivalent information.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]