Document:

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                                                                   Exhibit 10.27

                           OPLINK COMMUNICATIONS, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                 APPROVED BY THE BOARD OF DIRECTORS JULY__, 2000

1.   PURPOSE.

     (a)  The purpose of this 2000 Employee Stock Purchase Plan (the "Plan") is
to provide a means by which employees of Oplink Communications, Inc. (the
"Company") and its Affiliates, as defined in subparagraph 1(b), which are
designated as provided in subparagraph 2(b), may be given an opportunity to
purchase common stock of the Company (the "Common Stock").

     (b)  The word "Affiliate" as used in the Plan means any parent corporation
or subsidiary corporation of the Company, as those terms are defined in Sections
424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended
(the "Code").

     (c)  The Company, by means of the Plan, seeks to retain the services of its
employees, to secure and retain the services of new employees, and to provide
incentives for such persons to exert maximum efforts for the success of the
Company.

     (d)  The Company intends that the rights to purchase stock of the Company
granted under the Plan be considered options issued under an "employee stock
purchase plan" as that term is defined in Section 423(b) of the Code.

2.   ADMINISTRATION.

     (a)  The Plan shall be administered by the Board of Directors (the "Board")
of the Company unless and until the Board delegates administration to a
Committee, as provided in subparagraph 2(c). Whether or not the Board has
delegated administration, the Board shall have the final power to determine all
questions of policy and expediency that may arise in the administration of the
Plan.

     (b)  The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

          (i)  To determine when and how rights to purchase stock of the Company
shall be granted and the provisions of each offering of such rights (which need
not be identical).

          (ii) To designate from time to time which Affiliates of the Company
shall be eligible to participate in the Plan.

          (iii) To construe and interpret the Plan and rights granted under it,
and to establish, amend and revoke rules and regulations for its administration.
The Board, in the

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exercise of this power, may correct any defect, omission or
inconsistency in the Plan, in a manner and to the extent it shall deem necessary
or expedient to make the Plan fully effective.

          (iv) To amend the Plan as provided in paragraph 13.

          (v)  To terminate or suspend the Plan as provided in paragraph 15.

          (vi) Generally, to exercise such powers and to perform such acts as
the Board deems necessary or expedient to promote the best interests of the
Company and its Affiliates and to carry out the intent that the Plan be treated
as an "employee stock purchase plan" within the meaning of Section 423 of the
Code.

     (c)  The Board may delegate administration of the Plan to a Committee
composed of not fewer than two (2) members of the Board (the "Committee"). If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore possessed
by the Board, subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.

3.   SHARES SUBJECT TO THE PLAN.

     (a)  Subject to the provisions of paragraph 13 relating to adjustments upon
changes in securities, the shares of the Common Stock that may be sold pursuant
to Rights granted under the Plan shall not exceed in the aggregate two million
(2,000,000) shares of the Common Stock (the "Reserved Shares"). As of each
January 1, beginning on January 1, 2001, and continuing through and including
January 1, 2010, the number of Reserved Shares will be increased automatically
by the greater of (i) one and one-half percent (1.5%) of the total number of
shares of the Common Stock outstanding on such January 1 or (ii) the number of
shares issued under the Plan in the preceding calendar year, provided that no
more than ten million (10,000,000) shares may be issued under the Plan during
the term of the Plan. Notwithstanding the foregoing, the Board may designate a
smaller number of shares to be added to the share reserve as of a particular
January 1. If any Right granted under the Plan shall for any reason terminate
without having been exercised, the shares of the Common Stock not purchased
under such Right shall again become available for the Plan.

     (b)  The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

4.   GRANT OF RIGHTS; OFFERING.

         The Board or the Committee may from time to time grant or provide for
the grant of rights to purchase Common Stock of the Company under the Plan to
eligible employees (an "Offering") on a date or dates (the "Offering Date(s)")
selected by the Board or the Committee. Each Offering shall be in such form and
shall contain such terms and conditions as the Board or the Committee shall deem
appropriate, which shall comply with the requirements of Section 423(b)(5) of
the Code that all employees granted rights to purchase stock under the Plan
shall

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have the same rights and privileges. The terms and conditions of an Offering
shall be incorporated by reference into the Plan and treated as part of the
Plan. The provisions of separate Offerings need not be identical, but each
Offering shall include (through incorporation of the provisions of this Plan by
reference in the document comprising the Offering or otherwise) the period
during which the Offering shall be effective, which period shall not exceed
twenty-seven (27) months beginning with the Offering Date, and the substance of
the provisions contained in paragraphs 5 through 8, inclusive.

5.   ELIGIBILITY.

     (a)  Rights may be granted only to employees of the Company or, as the
Board or the Committee may designate as provided in subparagraph 2(b), to
employees of any Affiliate of the Company. Except as provided in subparagraph
5(b), an employee of the Company or any Affiliate shall not be eligible to be
granted rights under the Plan unless, on the Offering Date, such employee has
been in the employ of the Company or any Affiliate for such continuous period
preceding such grant as the Board or the Committee may require, but in no event
shall the required period of continuous employment be greater than two (2)
years. In addition, unless otherwise determined by the Board or the Committee
and set forth in the terms of the applicable Offering, no employee of the
Company or any Affiliate shall be eligible to be granted rights under the Plan
unless, on the Offering Date, such employee's customary employment with the
Company or such Affiliate is for at least twenty (20) hours per week and at
least five (5) months per calendar year.

     (b)  The Board or the Committee may provide that each person who, during
the course of an Offering, first becomes an eligible employee of the Company or
designated Affiliate will, on a date or dates specified in the Offering, which
date coincides with the day on which such person becomes an eligible employee or
occurs thereafter, receive a right under that Offering, which right shall
thereafter be deemed to be a part of that Offering. Such right shall have the
same characteristics as any rights originally granted under that Offering, as
described herein, except that:

          (i)  the date on which such right is granted shall be the "Offering
Date" of such right for all purposes, including determination of the exercise
price of such right;

          (ii) the period of the Offering with respect to such right shall begin
on its Offering Date and end coincident with the end of such Offering; and

          (iii) the Board or the Committee may provide that if such person first
becomes an eligible employee within a specified period of time before the end of
the Offering, he or she will not receive any right under that Offering.

     (c)  No employee shall be eligible for the grant of any rights under the
Plan if, immediately after any such rights are granted, such employee owns stock
possessing five percent (5%) or more of the total combined voting power or value
of all classes of stock of the Company or of any Affiliate. For purposes of this
subparagraph 5(c), the rules of Section 424(d) of the Code shall apply in
determining the stock ownership of any employee, and stock which

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such employee may purchase under all outstanding rights and options shall be
treated as stock owned by such employee.

     (d)  An eligible employee may be granted rights under the Plan only if such
rights, together with any other rights granted under "employee stock purchase
plans" of the Company and any Affiliates, as specified by Section 423(b)(8) of
the Code, do not permit such employee to purchase stock of the Company or any
Affiliate at a rate that exceeds twenty-five thousand dollars ($25,000) of fair
market value of such stock (determined at the time such rights are granted) for
each calendar year in which such rights are outstanding at any time.

     (e)  Officers of the Company and any designated Affiliate shall be eligible
to participate in Offerings under the Plan; PROVIDED, HOWEVER, that the Board
may provide in an Offering that certain employees who are highly compensated
employees within the meaning of Section 423(b)(4)(D) of the Code shall not be
eligible to participate.

6.   RIGHTS; PURCHASE PRICE.

     (a)  On each Offering Date, each eligible employee, pursuant to an Offering
made under the Plan, shall be granted the right to purchase up to that number of
shares of Common Stock of the Company purchasable with up to fifteen percent
(15%) (or such lower percentage as may be designated by the Board or Committee)
of such employee's Earnings (as defined in subparagraph 7(a)) during the period
which begins on the Offering Date (or such later date as the Board or the
Committee determines for a particular Offering) and ends on the date stated in
the Offering, which date shall be no later than the end of the Offering. The
Board or the Committee shall establish one or more dates during an Offering (the
"Purchase Date(s)") on which rights granted under the Plan shall be exercised
and purchases of Common Stock carried out in accordance with such Offering.

     (b)  In connection with each Offering made under the Plan, the Board or the
Committee may specify a maximum number of shares that may be purchased by any
employee as well as a maximum aggregate number of shares that may be purchased
by all eligible employees pursuant to such Offering. In addition, in connection
with each Offering that contains more than one Purchase Date, the Board or the
Committee may specify a maximum aggregate number of shares that may be purchased
by all eligible employees on any given Purchase Date under the Offering. If the
aggregate number of shares issuable upon exercise of rights granted under the
Offering would exceed any such maximum aggregate number, the Board or the
Committee shall make a pro rata allocation of the shares available in as nearly
a uniform manner as shall be practicable and as it shall deem to be equitable.

     (c)  The purchase price of stock acquired pursuant to rights granted under
the Plan shall be not less than the lesser of:

          (i)  an amount equal to eighty-five percent (85%) of the fair market
value of the stock on the Offering Date; or

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          (ii) an amount equal to eighty-five percent (85%) of the fair market
value of the stock on the Purchase Date.

7.   PARTICIPATION; WITHDRAWAL; TERMINATION.

     (a)  An eligible employee may become a participant in the Plan pursuant to
an Offering by delivering a participation agreement to the Company within the
time specified in the Offering, in such form as the Company provides. Each such
agreement shall authorize payroll deductions of up to the maximum percentage
specified by the Board or the Committee of such employee's Earnings during the
Offering. "Earnings" is defined as an employee's wages (including amounts
thereof elected to be deferred by the employee, that would otherwise have been
paid, under any arrangement established by the Company that is intended to
comply with Section 125, 401(k), 402(h) or 403(b) of the Code or that provides
non-qualified deferred compensation), overtime pay, bonuses, incentive pay,
commissions and other remuneration paid directly to the employee, but excluding
profit sharing, the cost of employee benefits paid for by the Company or an
Affiliate, education or tuition reimbursements, imputed income arising under any
group insurance or benefit program, traveling expenses, business and moving
expense reimbursements, income received in connection with stock options,
contributions made by the Company or an Affiliate under any employee benefit
plan, and similar items of compensation, as determined by the Board or the
Committee. The payroll deductions made for each participant shall be credited to
an account for such participant under the Plan and shall be deposited with the
general funds of the Company. A participant may reduce (including to zero) or
increase such payroll deductions, and an eligible employee may begin such
payroll deductions, after the beginning of any Offering only as provided for in
the Offering. A participant may make additional payments into his or her account
only if specifically provided for in the Offering and only if the participant
has not had the maximum amount withheld during the Offering.

     (a)  At any time during an Offering, a participant may terminate his or her
payroll deductions under the Plan and withdraw from the Offering by delivering
to the Company a notice of withdrawal in such form as the Company provides. Such
withdrawal may be elected at any time prior to the end of the Offering except as
provided by the Board or the Committee in the Offering. Upon such withdrawal
from the Offering by a participant, the Company shall distribute to such
participant all of his or her accumulated payroll deductions (reduced to the
extent, if any, such deductions have been used to acquire stock for the
participant) under the Offering, without interest, and such participant's
interest in that Offering shall be automatically terminated. A participant's
withdrawal from an Offering will have no effect upon such participant's
eligibility to participate in any other Offerings under the Plan but such
participant will be required to deliver a new participation agreement in order
to participate in subsequent Offerings under the Plan.

     (c)  Rights granted pursuant to any Offering under the Plan shall terminate
immediately upon cessation of any participating employee's employment with the
Company and any designated Affiliate, for any reason, and the Company shall
distribute to such terminated employee all of his or her accumulated payroll
deductions (reduced to the extent, if any, such deductions have been used to
acquire stock for the terminated employee), under the Offering, without
interest.

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     (d)  Rights granted under the Plan shall not be transferable by a
participant otherwise than by will or the laws of descent and distribution, or
by a beneficiary designation as provided in paragraph 14 and, otherwise during
his or her lifetime, shall be exercisable only by the person to whom such rights
are granted.

8.   EXERCISE.

     (a)  On each Purchase Date specified in the relevant Offering, each
participant's accumulated payroll deductions and other additional payments
specifically provided for in the Offering (without any increase for interest)
will be applied to the purchase of whole shares of stock of the Company, up to
the maximum number of shares permitted pursuant to the terms of the Plan and the
applicable Offering, at the purchase price specified in the Offering. No
fractional shares shall be issued upon the exercise of rights granted under the
Plan. The amount, if any, of accumulated payroll deductions remaining in each
participant's account after the purchase of shares that is less than the amount
required to purchase one share of stock on the final Purchase Date of an
Offering shall be held in each such participant's account for the purchase of
shares under the next Offering under the Plan, unless such participant withdraws
from such next Offering, as provided in subparagraph 7(b), or is no longer
eligible to be granted rights under the Plan, as provided in paragraph 5, in
which case such amount shall be distributed to the participant after such final
Purchase Date, without interest. Any amount of accumulated payroll deductions
remaining in a participant's account after the purchase of shares that equals or
exceeds the amount required to purchase a whole share of stock on the final
Purchase Date of an Offering shall be distributed in full to the participant
after such Purchase Date, without interest.

     (b)  No rights granted under the Plan may be exercised to any extent unless
the shares to be issued upon such exercise under the Plan are covered by an
effective registration statement pursuant to the Securities Act of 1933, as
amended (the "Securities Act") and the Plan is in material compliance with all
applicable state, foreign and other securities and other laws applicable to the
Plan. If, on the Purchase Date of any Offering hereunder, the shares to be
issued under the Plan are not so registered or the Plan is not in such
compliance, no rights granted under the Plan or any Offering shall be exercised
on such Purchase Date, and the Purchase Date shall be delayed until such shares
are subject to an effective registration statement and the Plan is in such
compliance, except that the Purchase Date shall not be delayed more than twelve
(12) months and the Purchase Date shall in no event be more than twenty-seven
(27) months from the Offering Date. If, on the Purchase Date of any Offering
hereunder, as delayed to the maximum extent permissible, such shares are not
registered and the Plan is not in such compliance, no rights granted under the
Plan or any Offering shall be exercised and all payroll deductions accumulated
during the Offering (reduced to the extent, if any, such deductions have been
used to acquire stock) shall be distributed to the participants, without
interest.

9.   COVENANTS OF THE COMPANY.

     (a)  During the terms of the rights granted under the Plan, the Company
shall keep available at all times the number of shares of stock required to
satisfy such rights.

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     (b)  The Company shall seek to obtain from each federal, state, foreign or
other regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to issue and sell shares of stock upon exercise of
the rights granted under the Plan. If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale
of stock under the Plan, the Company shall be relieved of any liability for
failure to issue and sell stock upon exercise of such rights unless and until
such authority is obtained.

10.  USE OF PROCEEDS FROM STOCK.

     Proceeds from the sale of stock pursuant to rights granted under the
Plan shall constitute general funds of the Company.

11.  RIGHTS AS A STOCKHOLDER.

     A participant shall not be deemed to be the holder of, or to have any
of the rights of a holder with respect to, any shares subject to rights granted
under the Plan unless and until the participant's shares acquired upon exercise
of rights under the Plan are recorded in the books of the Company.

12.  ADJUSTMENTS UPON CHANGES IN STOCK.

     (a)  If any change is made in the stock subject to the Plan, or subject to
any rights granted under the Plan, due to a change in corporate capitalization
and without the receipt of consideration by the Company (through
reincorporation, stock dividend, stock split, reverse stock split, combination
or reclassification of shares), the Plan will be appropriately adjusted in the
class(es) and maximum number of securities subject to the Plan pursuant to
subsection 3(a) including any annual automatic increases of the authorized
shares under subsection 3(a), and the outstanding rights will be appropriately
adjusted in the class(es) and number of securities and price per share of stock
subject to such outstanding rights. Such adjustments shall be made by the Board,
the determination of which shall be final, binding and conclusive.

     (b)  In the event of: (1) a dissolution or liquidation of the Company, (2)
the sale of all or substantially all of the securities or assets of the Company,
(3) a merger or consolidation in which the Company is not the surviving
corporation or (4) a reverse merger in which the Company is the surviving
corporation but the shares of Common Stock outstanding immediately preceding the
merger are converted by virtue of the merger into other property, whether in the
form of securities, cash or otherwise, then any surviving corporation may assume
outstanding rights or substitute similar rights for those under the Plans. If no
surviving corporation assumes outstanding rights or substitutes similar rights
therefor, participants' accumulated payroll deductions shall be used to purchase
Common Stock immediately prior to the transaction described above and the
participants' rights under the ongoing Offering shall terminate immediately
following such purchase.

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13.      AMENDMENT OF THE PLAN.

     (a)  The Board at any time, and from time to time, may amend the Plan.
However, except as provided in paragraph 12 relating to adjustments upon changes
in stock, no amendment shall be effective unless approved by the stockholders of
the Company within twelve (12) months before or after the adoption of the
amendment, where the amendment will:

          (i)  Increase the number of shares reserved for rights under the Plan;

          (ii) Modify the provisions as to eligibility for participation in the
Plan (to the extent such modification requires stockholder approval in order for
the Plan to obtain employee stock purchase plan treatment under Section 423 of
the Code; or

          (iii) Modify the Plan in any other way if such modification requires
stockholder approval in order for the Plan to obtain employee stock purchase
plan treatment under Section 423 of the Code.

It is expressly contemplated that the Board may amend the Plan in any respect
the Board deems necessary or advisable to provide eligible employees with the
maximum benefits provided or to be provided under the provisions of the Code and
the regulations promulgated thereunder relating to employee stock purchase plans
and/or to bring the Plan and/or rights granted under it into compliance
therewith.

     (b)  Rights and obligations under any rights granted before amendment of
the Plan shall not be impaired by any amendment of the Plan, except (i) with the
consent of the person to whom such rights were granted, (ii) as necessary to
comply with any laws or governmental regulations, or (iii) as necessary to
ensure that the Plan and/or rights granted under the Plan comply with the
requirements of Section 423 of the Code.

14.      DESIGNATION OF BENEFICIARY.

     (a)  A participant may file a written designation of a beneficiary who is
to receive any shares and cash, if any, from the participant's account under the
Plan in the event of such participant's death subsequent to the end of an
Offering but prior to delivery to the participant of such shares and cash. In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under the Plan in the event
of such participant's death during an Offering.

     (b)  Such designation of beneficiary may be changed by the participant at
any time by written notice. In the event of the death of a participant and in
the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its sole discretion, may deliver such shares
and/or cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

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15.  TERMINATION OR SUSPENSION OF THE PLAN.

     (a)  The Board in its discretion, may suspend or terminate the Plan at any
time. No rights may be granted under the Plan while the Plan is suspended or
after it is terminated.

     (b)  Rights and obligations under any rights granted while the Plan is in
effect shall not be altered or impaired by suspension or termination of the
Plan, except (i) as expressly provided in the Plan or with the consent of the
person to whom such rights were granted, (ii) as necessary to comply with any
laws or governmental regulation, or (iii) as necessary to ensure that the Plan
and/or rights granted under the Plan comply with the requirements of Section 423
of the Code.

     (c)  Notwithstanding the foregoing, the Plan shall terminate and no rights
may be granted under the Plan after the tenth anniversary of the Effective Date.

16.  EFFECTIVE DATE OF PLAN.

     The Plan shall become effective simultaneously with the effectiveness
of the Company's registration statement under the Securities Act with respect to
the initial public offering of shares of the Company's Common Stock (the
"Effective Date"), but no rights granted under the Plan shall be exercised
unless and until the Plan has been approved by the stockholders of the Company
within twelve (12) months before or after the date the Plan is adopted by the
Board, which date may be prior to the Effective Date.<PAGE>
                                                                  Exhibit 10.28

                         OPLINK COMMUNICATIONS, INC.

                               1995 STOCK PLAN

SECTION 1. PURPOSE

      The purpose of the Plan is to offer selected employees, directors and
consultants an opportunity to acquire a proprietary interest in the success
of the Company, to encourage such selected persons to remain in the employ of
the Company and to attract new employees by allowing such persons to purchase
Shares of the Company's Common Stock. The Plan provides for the grant of
Options to purchase Shares. Options granted under the Plan may be Incentive
Stock Options or Nonstatutory Stock Options. Stock Purchase Rights may also be
granted under the Plan.

SECTION 2. DEFINITIONS

      (a) "BOARD" means the Board of Directors of the Company.

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

      (c) "COMMITTEE" means a committee of the Board of Directors which
is authorized to administer the Plan under Section 4 herein. In the event the
Company becomes subject to Section 16 of the Exchange Act, the Committee
shall have a membership composition which will enable the Plan to qualify
under Rule 16b-3 with regard to Options granted to persons who are subject to
Section 16 of the Exchange Act.

      (d) "COMMON STOCK" means the Common Stock of the Company.

      (e) "COMPANY" means Oplink Communications, Inc.

      (f) "CONSULTANT" means any person, including an advisor, who is
engaged by the Company or Subsidiary to render consulting or advisory
services and is compensated for such services.

      (g) "CONTINUOUS STATUS AS AN EMPLOYEE" means the absence of any
interruption or termination of the employment relationship by the Company or
any Subsidiary. Continuous Status as an Employee 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 ninety (90) days, unless reemployment upon the expiration of
such leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to Company policy adopted from time to time; or in the case of
transfers between locations of the Company or between the Company, its
Subsidiaries or its successor.

       (h) "EMPLOYEE" means any person, including officers and
directors, employed by the Company 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.

                                       1.

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      (i) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

      (j) "FAIR MARKET VALUE" means, as of any date, the value of
Common Stock determined as follows:

            (i)   If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the
National Market System of the National Association of Securities Dealers,
Inc. Automated Quotation ("Nasdaq") System, its Fair Market Value shall be
the closing sales price for such stock (or the closing bid, if no sales were
reported, as quoted on such system or exchange for the last market trading
day prior to the time of determination) as reported in the Wall Street
Journal or such other source as the Administrator deems reliable;

            (ii)  If the Common Stock is quoted on the Nasdaq System (but not
on the Nasdaq National Market thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high and low asked prices for the Common Stock;
or

            (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Board.

      (k) "INCENTIVE STOCK OPTION" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code.

      (l) "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an Incentive Stock Option.

      (m) "OPTION" means a stock option granted pursuant to the Plan
that entitles the holder to purchase Shares.

      (n) "OPTIONED STOCK" means the Common Stock subject to an Option.

      (o) "OPTIONEE" means an Employee or Consultant who receives an
Option.

      (p) "PLAN" means the Oplink Communications, Inc. 1995 Stock Plan,
as amended from time to time.

      (q) "PURCHASER" means an Employee or Consultant who exercises a
Stock Purchase Right.

      (r) "RESTRICTED STOCK" means Shares purchased pursuant to the
grant of a Stock Purchase Right.

      (s) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 13 of the Plan.

      (t) "STOCK PURCHASE RIGHT" means the right to purchase Restricted
Stock granted pursuant to Section 11 of the Plan.

                                      2.

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      (u) "SUBSIDIARY" means any corporation of which the Company
and/or one or more other Subsidiaries own not less than 50 percent of the
total combined voting power of all classes of outstanding stock of such
corporation. A corporation that attains the status of a Subsidiary on a date
after the adoption of the plan shall be considered a Subsidiary commencing as
of such date.

      (v) "TAX DATE" means the date upon which the withholding tax
obligation is determined pursuant to Section 12(b) herein.

      SECTION 3. STOCK SUBJECT TO THE PLAN

      Subject to the provisions of Section 13 of the Plan, the maximum
aggregate number of shares which may be optioned and sold under the Plan is
2,000,000 Shares of Common Stock. The shares may be authorized, but unissued,
or reacquired Common Stock. If an Option or Stock Purchase Right 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. 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.

      SECTION 4. ADMINISTRATION

      (a) COMMITTEE MEMBERSHIP. The Plan shall be administered by the
Committee, which shall consist of members of the Board. The members of the
Committee shall be appointed by the Board. If no Committee has been
appointed, the entire Board shall constitute the Committee.

      (b) POWERS OF THE COMMITTEE. Subject to the provisions of the
Plan and the specific duties delegated by the Board, the Committee shall have
full authority and discretion to take the following actions:

            (i)   to determine the Fair Market Value of the Common Stock;

            (ii)  to select the officers, Consultants and Employees to whom
Options and Stock Purchase Rights may from time to time be granted under the
Plan;

            (iii) to determine whether and to what extent Options and Stock
Purchase Rights or any combination thereof, are granted under the Plan;

            (iv)  to determine the number of Shares to be covered by each
such award granted hereunder;

            (v)   to approve forms of agreement for use under the Plan;

            (vi)  to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder including, but not
limited to, the share price and any restriction or limitation, based in each
case on such factors as the Committee shall determine in its sole discretion;

                                      3.

<PAGE>

            (vii)  to determine the terms and restrictions applicable to
Stock Purchase Rights and the Restricted Stock purchased by exercising such
Stock Purchase Rights; and

            (viii) to make any other such determinations with respect to
awards under the Plan as it shall deem appropriate.

      (c) EFFECT OF COMMITTEE'S DECISION. All decisions, determinations
and interpretations of the Committee shall be final and binding on all
Optionees and Purchasers and any other holders of any Options or Stock
Purchase Rights.

SECTION 5. ELIGIBILITY

      (a) GENERAL RULE. Nonstatutory 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 Option may, if
he is otherwise eligible, be granted an additional Option or Options.

      (b) STOCK OPTION AGREEMENT. Each grant of an Option under the
Plan shall be evidenced by a stock option agreement between the Optionee and
the Company. All stock option agreements shall be subject to all applicable
terms and conditions of the Plan and may be subject to any other terms and
conditions which are not inconsistent with the Plan and which the Committee
deems appropriate. The provisions of the various stock option agreements
entered into under the Plan are not required to be identical.

      (c) INCENTIVE STOCK OPTION LIMITATION. Each Option shall be
designated in the written option agreement as either an incentive Stock
Option or a Nonstatutory Stock Option. However, notwithstanding such
designations, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Options designated as Incentive Stock Options
are exercisable for the first time by any Optionee during any calendar year
(under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Nonstatutory Stock Options.

      (d) NONTRANSFERABILITY OF OPTIONS. All Options granted under the
Plan 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.

      (e) 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, or such other date as is determined by
the Board. 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.

SECTION 6. TERM OF PLAN

      The Plan shall become effective on the date of its adoption by the
Board subject to its approval by the shareholders of the Company as described
in Section 17 of the Plan. In the event that the shareholders fail to approve
the Plan within twelve (12) months after its adoption by the

                                      4.

<PAGE>

Board, any Options or Stock Purchase Rights granted during such period shall
be null and void. The Plan shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 14 of the Plan.

SECTION 7. TERM OF OPTION

      The term of each Option shall be the term stated in the Optionee's
option agreement; provided however, the term shall be no more than ten (10)
years from the date of. grant thereof or such shorter term as may be provided
in the option agreement. However, in the case of an 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 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
option agreement.

SECTION 8. EXERCISE PRICE AND CONSIDERATION

      (a) BOARD DETERMINATION. With respect to each Option, the per
share exercise price for the Shares shall be determined by the Board.

      (b) INCENTIVE STOCK OPTIONS. In the case of an Incentive Stock
Option, the exercise price per Share shall be not less than 100% of the Fair
Market Value of such Share on the date of grant. Notwithstanding the above,
if an Incentive Stock Option is granted to an Employee who owns more than ten
percent of the voting power of all classes of stock of the Company or
Subsidiary, the exercise price per Share shall be not less than 110% of the
Fair Market Value of such Share on the date of grant.

      (c) NONSTATUTORY STOCK OPTIONS. The exercise price per Share of a
Nonstatutory Stock Option shall not be less than 85% of the Fair Market Value
of such Share on the date of grant.

      (d) CONSIDERATION. The consideration to be paid for Shares issued
upon the exercise of an Option and the method of payment for such Shares
shall be determined by .the Committee and, in the case of an Incentive Stock
Option, shall be determined at the time of grant. The consideration to
purchase Shares may consist of, cash, check, recourse or nonrecourse
promissory note, the surrender of other Shares, or any combination of the
foregoing methods of payment. In the case where the exercise price is paid by
the surrender of Shares, the Shares surrendered must (i) have been owned by
the Optionee for more than six 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 new Shares to be acquired.

SECTION 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 and as permissible under the terms of the Plan. An Option may not be
exercised for a fraction of a Share. 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 Option and full payment for the Shares
with respect to which

                                      5.

<PAGE>

the Option is exercised has been received by the Company. Until the issuance
of the stock certificate evidencing such Shares, no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to
the Optioned Stock, notwithstanding the 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 13
of the Plan.

      (b) TERMINATION OF EMPLOYMENT. In the event of termination of an
Optionee's consulting relationship or Continuous Status as an Employee with
the Company, such Optionee may within ninety (90) days after the date of such
termination (or such other period as set forth in the Option Agreement, but
in no event later than the expiration date of the term of such Option as set
forth in the Option Agreement), exercise the Option to the extent that
Optionee was entitled to exercise it at the date of such termination. To the
extent that Optionee was not entitled to exercise the Option at the date of
such termination, or if Optionee does not exercise such Option to the extent
so entitled within the time specified herein, the Option shall terminate.

      (c) DISABILITY OF OPTIONEE. Notwithstanding the provisions of
Section 9(b) above, if an Optionee's Consulting relationship or Continuous
Status as an Employee is terminated as a result of disability (as determined
by the Board in accordance with the policies of the Company), Optionee may
within six (6) months from the date of such termination (or such other longer
period as set forth in the Option Agreement, but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise
it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

      (d) DEATH OF OPTIONEE. In the event of the death of an Optionee,
the Option may be exercised within twelve (12) months following the date of
death, (but in no event later than the expiration date of the term of such
Option as set forth in the 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 the Optionee was entitled to exercise the
Option at the date of death. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not
exercise such Option to the extent so entitled within the time specified
herein, the Option shall terminate.

      (e) RULE 16B-3. Options granted to persons subject to Section
16(b) of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

SECTION 10. RIGHT OF FIRST REFUSAL

      (a) RIGHT OF FIRST REFUSAL. Unless the Committee determines
otherwise, all Shares acquired under the Plan by an Optionee or Purchaser
(both being referred to herein as "Holder") shall be subject to the right of
first refusal set forth in this Section 10. Before any Shares may be sold or
transferred (including transfer by operation of law other than as excepted
pursuant to Section 10(e) hereof), Holder must first obtain the written
consent of the Company. If such written consent is not given, then the
Company shall have a right of first refusal to purchase all,

                                      6.

<PAGE>

but not less than all, of the Shares for the same price and, to the extent
practicable, on substantially the same terms and conditions offered to such
prospective purchaser, in accordance with the procedures set forth below.

      (b) PURCHASE PRICE. If the proposed price per share is to be
other than in cash, then an equivalent cash value shall be determined in good
faith by the Board. If a transfer other than a voluntary sale is proposed to
be made, then the price per Share for purposes of the right of first refusal
shall be determined by the mutual agreement of Holder and the Company or, if
no agreement can be reached, the price shall be the fair market value of such
shares, as determined in good faith by the Board.

      (c) OFFER NOTICE. Prior to any sale or transfer of any Shares,
Holder, or the legal representative of Holder, shall promptly deliver to the
Secretary of the Company a written notice of the price and other terms and
conditions of the offer by the prospective purchaser, the identity of the
prospective purchaser, and, in the case of a sale, Holder's bona fide
intention to sell or dispose of such shares together with a copy of a written
agreement between Holder and the prospective purchaser conditioned only upon
the satisfaction of the procedures set forth in this right of first refusal.
If the Company does not give its written consent to such transfer, then the
Company (or its assignees) shall, for thirty (30) days after such notice from
Holder, have the right under this Section 10 to purchase all such Shares, as
set forth herein.

      (d) HOLDER'S RIGHT TO TRANSFER. After the expiration of the
Rights of First Refusal, or upon the written consent of the Company to the
proposed transfer, Holder may sell or transfer the Shares specified in the
notice to the Company, on the terms and conditions specified in such notice;
provided, however, that the sale must be consummated within three (3) months
after the date of the notice and that all Shares sold or transferred shall
remain subject to the applicable provisions and restrictions of this Plan,
including restrictions on further transfer as provided in this Section 10,
and shall carry a legend to that effect. If the right of first refusal under
this Section 10 are not exercised, but Holder fails to consummate such sale
on the same terms and conditions as set forth in the notice to the Company
within three (3) months after the date of the notice, then such right of
first refusal shall be reinstated.

      (e) TERMINATION; EXCEPTIONS. The provisions of this Section 10
shall terminate on the closing date of an underwritten public offering of
Common Stock of the Company. The provisions of Section 10(a) shall not apply
to a transfer of any Shares by Holder, either during his or her lifetime or
on death to his or her ancestors, descendants or spouse, or any custodian or
trustee for the account of Holder or Holder's ancestors, descendants or
spouse; provided, in each such case a transferee shall receive and hold such
Shares subject to the provisions and restrictions on transfer under this
Section 10 and there shall be no further transfer of such Shares except in
accordance herewith.

      (f) EFFECT OF TRANSFERS NOT IN COMPLIANCE. The Company shall not
be required to transfer on its books any Shares which shall have been sold or
transferred in violation of any of the provisions set forth in this Section
10, or to treat as owner of such Shares, or to accord the right to vote as
such owner or to pay dividends to, any transferee to whom such Shares shall
have been so transferred.

                                      7.

<PAGE>

SECTION 11. STOCK PURCHASE RIGHTS AND REPURCHASE OPTION

      (a) RIGHTS TO PURCHASE RESTRICTED STOCK. Stock Purchase Rights
may be issued either alone, in addition to, or in tandem with other awards
granted under the Plan and/or cash awards made outside of the Plan. After the
Committee determines that it will offer Stock Purchase Rights under the Plan,
it shall advise the offeree in writing of the terms, conditions and
restrictions related to the offer, including the number of Shares that such
person shall be entitled to purchase, the price to be paid, and the time
within which such person must accept such offer, which shall in no event
exceed one-hundred eighty (180) days from the date of grant of the Stock
Purchase Right. The offer shall be accepted by execution of a stock purchase
agreement in the form determined by the Committee.

      (b) REPURCHASE OPTION. Unless the Committee determines otherwise,
the stock purchase agreement shall grant the Company a repurchase option
exercisable upon the voluntary or involuntary termination of the Purchaser's
employment with the Company for any reason (including death or disability).
The purchase price for unvested Shares repurchased pursuant to the stock
purchase agreement shall be the original price paid by the Purchaser and may
be paid by cancellation of any indebtedness of the purchaser to the Company.
The repurchase option with respect to the Restricted Stock shall lapse at
such rate as the Committee may determine.

      (c) OTHER PROVISIONS. The stock purchase agreement shall contain
such other terms, provisions and conditions not inconsistent with the Plan as
may be determined by the Committee in its sole discretion. In addition, the
provisions of stock purchase agreements need not be the same with respect to
each Purchaser.

      (d) RIGHTS AS A SHAREHOLDER. Once the Stock Purchase Right is
exercised, the Purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered
upon the records of the duly authorized transfer agent of the Company. No
adjustment will be made for a dividend or other right for which the record
date is prior to the date the Stock Purchase Right is exercised, except as
provided in Section 13 of the Plan.

SECTION 12. WITHHOLDING TAXES

      (a) OBLIGATION OF OPTIONEES AND PURCHASERS. As a condition to the
exercise of an Option or Stock Purchase Right, the Optionees and Purchasers
shall make such arrangements as the Committee may require to the satisfaction
of any federal, state, local or foreign withholding tax obligations that may
arise in connection with exercise. The Optionees shall also make such
arrangements as the Committee may require for the satisfaction of any
federal, state, local or foreign withholding tax obligations that may arise
in connection with the disposition of Shares acquired by exercising an Option.

      (b) STOCK WITHHOLDING TO SATISFY WITHHOLDING TAX OBLIGATIONS. At
the discretion of the Committee, Optionees or Purchasers may satisfy
withholding obligations as provided in this paragraph. When an Optionee or
Purchaser incurs a tax liability in connection with an Option or Stock
Purchase Right, which tax liability is subject to tax withholding under
applicable tax laws, and the Optionee or Purchaser is obligated to pay the
Company an amount required to

                                      8.

<PAGE>

be withheld under applicable tax laws, the Optionee or Purchaser may satisfy
the withholding tax obligation by electing to have the Company withhold from
the Shares to be issued upon exercise of the Option, or the Shares to be
issued in connection with the Stock Purchase Right, if any, that number of
Shares having a Fair Market Value equal to the amount required to be
withheld. The Fair Market Value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be
determined (the "Tax Date").

      All elections by an Optionee or Purchaser to have Shares withheld for
this purpose shall be made in writing in a form acceptable to the Committee
and shall be subject to the following restrictions:

            (i)   the election must be made on or prior to the Tax Date;

            (ii)  once made, the election shall be irrevocable as to the
particular Shares of the Option or Stock Purchase Right as to which the
election is made;

            (iii) all elections shall be subject to the consent or
disapproval of the Committee;

            (iv)  if the Optionee is subject to Rule 16b-3 of the Exchange
Act, the election must comply with the applicable provisions of Rule 16b-3
and shall be subject to such additional conditions or restrictions as may be
required thereunder to qualify for the maximum exemption from Section 16 of
the Exchange Act with respect to Plan transactions.

In the event the election to have Shares withheld is made by an Optionee or
Purchaser and no election is filed under Section 83(b) of the Code, the
Optionee or Purchaser shall receive the full number of Shares with respect to
which the Option or Stock Purchase Right is exercised, but such Optionee or
Purchaser shall be unconditionally obligated to tender back to the Company
the proper number of Shares at the time when the amount of withholding tax
becomes due and payable.

SECTION 13. ADJUSTMENT OF SHARES

      (a) CHANGES IN CAPITALIZATION OR MERGER. Subject to any required
action by the shareholders of the Company, the number of Shares covered by
each outstanding Option or Stock Purchase Right, and the number of Shares
which have been authorized for issuance under the Plan but as to which no
Options or Stock Purchase Rights have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per Share covered by each such
outstanding Option or Stock Purchase Right, shall be proportionately adjusted
for any increase or decrease in the number of issued Shares resulting from a
stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in
the number of issued Shares effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." 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

                                      9.

<PAGE>

respect to, the number, or price of Shares subject to an Option or Stock
Purchase Right. In the event of a merger of the Company with or into another
corporation, the Option shall be assumed or an equivalent option shall be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation.

      (b) DISSOLUTION, LIQUIDATION OR OTHER MERGER. In the event of the
proposed dissolution or liquidation of the Company, or of a merger in which
the successor corporation does not agree to assume the Option or Stock
Purchase Right or substitute an equivalent Option or Stock Purchase Right,
the Board shall notify Optionees and Purchasers at least thirty (30) days
prior to such proposed action. To the extent it has not been previously
exercised, the Option or Stock Purchase Right will terminate immediately
prior to the consummation of such proposed action.

SECTION 14. AMENDMENT AND TERMINATION OF PLAN

      (a) AMENDMENT AND TERMINATION. The Board may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made which would impair the rights of
any Optionee or Purchaser under any grant theretofore made, without his or
her consent. In addition, to the extent necessary and desirable to comply
with Rule 16b-3 under the Exchange Act or with Section 422 of the Code (or
any other applicable law or regulation, including the requirements of the
NASD or an established stock exchange), the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

      (b) EFFECT OF AMENDMENT OR TERMINATION. Any such amendment or
termination of the Plan shall not affect Options and Stock Purchase Rights
already granted and such Options and Stock Purchase Rights shall remain in
full force and effect as if this Plan had not been amended or terminated,
unless mutually agreed otherwise between the Optionee or Purchaser and the
Board, which agreement must be in writing and signed by the Optionee or
Purchaser and the Company.

SECTION 15. ISSUANCE OF SHARES

      (a) LEGAL REQUIREMENTS. Shares shall not be issued pursuant to
the exercise of an Option or Stock Purchase Right unless the exercise of such
Option or Stock Purchase Right 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.

      (b) INVESTMENT REPRESENTATIONS. As a condition to the exercise of
an Option or Stock Purchase Right, the Committee may require the person
exercising such Option or Stock Purchase Right 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.

                                      10.

<PAGE>

      (c) REGULATORY APPROVAL. 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.

SECTION 16. NO EMPLOYMENT RIGHTS

      No provision of the Plan, nor any Option or Stock Purchase Right
granted under the Plan shall confer upon any Optionee or Purchaser 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.

SECTION 17. SHAREHOLDER APPROVAL

      Continuance of the Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months before or after the
date the Plan is adopted. Such shareholder approval shall be obtained in the
degree and manner required under applicable state and federal law.

SECTION 18. INFORMATION TO OPTIONEES

      The Company shall provide to each Optionee, during the period for which
such Optionee has one or more Options outstanding, annual financial
statements 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.

                                      11.

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