Document:

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                                                                     EXHIBIT 4.5

                              LSI LOGIC CORPORATION

                           1991 EQUITY INCENTIVE PLAN

                              AMENDED AND RESTATED

        1. Purpose of the Plan. The purpose of the LSI Logic Corporation 1991
Equity Incentive Plan (the "Plan") is to enable LSI Logic Corporation (the
"Company") to provide an incentive to eligible employees, including officers,
and consultants whose present and potential contributions are important to the
continued success of the Company, to afford them an opportunity to acquire a
proprietary interest in the Company, and to enable the Company to enlist and
retain in its employ the best available talent for the successful conduct of its
business. It is intended that this purpose will be effected through the granting
of stock options.

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

            (a) "Award" means any Option granted.

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

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

            (d) "Committee" means the Committee or Committees referred to in
Section 5 of the Plan. If at any time no Committee shall be in office, then the
functions of the Committee specified in the Plan shall be exercised by the
Board.

            (e) "Common Stock" means the Common Stock, $0.01 par value (as
adjusted from time to time), of the Company.

            (f) "Company" means LSI Logic Corporation, a corporation organized
under the laws of the state of Delaware, or any successor corporation.

            (g) "Consultant" means any person, including an advisor, who is
engaged by the Company or any Parent or Subsidiary to render services for its
benefit and is compensated for such services, provided the term Consultant shall
not include directors who are not compensated for their services or are paid
only a director's fee by the Company.

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

            (i) "Disability" means a disability, whether temporary or permanent,
partial or total, as defined in Section 22(e)(3) of the Code.

            (j) "Employee" means any person, including officers and directors,
employed by the Company or any Subsidiary, provided the term Employee shall not
include non-employee directors and

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the payment of directors' fees by the Company shall not be sufficient to
constitute "employment" by the Company.

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

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

                (i) if such Common Stock shall then be listed on a national
securities exchange, the closing sales price (or the closing bid, if no sales
were reported) as quoted on the principal national securities exchange on which
the Common Stock is listed or admitted to trading, or

                (ii) the closing sales price (or the closing bid, if no sales
were reported) as quoted on the NASDAQ National Market System, or

                (iii) if such Common Stock shall not be quoted on such National
Market System nor listed or admitted to trading on a national securities
exchange, then the average of the closing bid and asked prices, as reported by
The Wall Street Journal for the over-the-counter market, or

                (iv) if none of the foregoing is applicable, then the Fair
Market Value of a share of Common Stock shall be determined by the Board of
Directors of the Company in its discretion.

            (m) "Incentive Stock Option" means an Option intended to be and
designated as an "Incentive Stock Option" within the meaning of Section 422 of
the Code.

            (n) "Nonstatutory Stock Option" means any Option that is not an
Incentive Stock Option.

            (o) "Option" means any option to purchase shares of Common Stock
granted pursuant to Section 7 below.

            (p) "Optionee" means any holder of an Option.

            (q) "Outside Director" means a Director who is not an Employee of
the Company.

            (r) "Plan" means this 1991 Equity Incentive Plan, as hereinafter
amended from time to time.

            (s) "Senior Management Employees" means Employees who are executive
officers or vice presidents of the Company.

            (t) "Subsidiary" means a corporation, domestic or foreign, of which
not less than 50% of the voting shares are held by the Company or by a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or by a Subsidiary.

        In addition, the terms "Tax Date" and "Insiders" shall have meanings set
forth in Section 8.

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        3. Eligible Participants. Any Employee or Consultant of the Company or
of a Subsidiary whom the Committee deems to have the potential to contribute to
the future success of the Company shall be eligible to receive Awards under the
Plan; provided, however, that any Options intended to qualify as Incentive Stock
Options shall be granted only to Employees of the Company or its Subsidiaries.

        4. Stock Subject to the Plan. Subject to Sections 9 and 10, the total
number of shares of Common Stock reserved and available for distribution
pursuant to the Plan shall be 83,500,000 shares (this number has been adjusted
for various stock splits). Subject to Sections 9 and 10 below, if any shares of
Common Stock that have been optioned under an Option cease to be subject to such
Option Award granted hereunder are forfeited or repurchased or any such award
otherwise terminates without a payment being made to the participant in the form
of Common Stock, such shares shall again be available for distribution in
connection with future Awards under the Plan.

        5. Administration.

            (a) Procedure. The Plan shall be administered by the Board or a
Committee designated by the Board to administer the Plan, which Committee shall
be constituted to permit the Plan to comply with Rule 16b-3 promulgated under
the Exchange Act, or any successor rule thereto ("Rule 16b-3"). If permitted by
Rule 16b-3, the Plan may be administered by different bodies with respect to
Employees who are Directors, Senior Management Employees, or Employees who are
neither directors nor officers and Consultants.

            Once appointed, a Committee shall continue to serve until otherwise
directed by the Board. From time to time the Board may change the size of a
Committee, appoint additional members thereof, remove members (with or without
cause), appoint new members in substitution therefor, fill vacancies, however
caused and remove all members of a Committee and thereafter directly administer
the Plan, all to the extent permitted by Rule 16b-3. As used herein, except in
Sections 10, 12 and 17, reference to Committee shall mean such Committee or the
Board, whichever is then acting with respect to the Plan.

            (b) Authority. Subject to the general purposes, terms, and
conditions of the Plan, and to the direction of the Board, the Committee, if
there be one, shall have full power to implement and carry out the Plan
including, but not limited to, the following:

                (i) to select the Employees and Consultants of the Company
and/or its Subsidiaries to whom Options may from time to time be granted
hereunder;

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

                (iii) to determine the number of shares of Common Stock to be
covered by each such Award granted hereunder;

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

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                (v) 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, or any vesting
acceleration or waiver of forfeiture restrictions regarding any Option and/or
the shares of Common Stock relating thereto, based in each case on such factors
as the Committee shall determine, in its sole discretion);

                (vi) to determine whether and under what circumstances an Option
may be settled in cash instead of Common Stock;

                (vii) to determine the form of payment that will be acceptable
consideration for exercise of an Option granted under the Plan;

                (viii) to determine whether, to what extent and under what
circumstances Common Stock and other amounts payable with respect to an Award
under this Plan shall be deferred either automatically or at the election of the
participant (including providing for and determining the amount (if any) of any
deemed earnings on any deferred amount during any deferral period);

        Shareholder approval shall be required to reduce the exercise price of
any Option. For grants of Incentive Stock Options only, any other material
amendments to the Plan shall require shareholder approval. The Committee shall
have the authority to construe and interpret the Plan, to prescribe, amend and
rescind rules and regulations relating to the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan.

        6. Duration of the Plan. The Plan shall remain in effect until
terminated by the Board under the terms of the Plan, provided that in no event
may Incentive Stock Options be granted under the Plan later than March 8, 2001,
ten years from the date the Plan was adopted by the Board.

        7. Stock Options. The Committee, in its discretion, may grant Options to
eligible participants and shall determine whether such Options shall be
Incentive Stock Options or Nonstatutory Stock Options. Each Option shall be
evidenced by a written Option agreement which shall expressly identify the
Option as an Incentive Stock Option or as a Nonstatutory Stock Option, and shall
be in such form and contain such provisions as the Committee shall from time to
time deem appropriate. Option agreements shall contain the following terms and
conditions:

            (a) Option Price; Number of Shares. The Option price, which shall be
approved by the Committee, may not be less than the Fair Market Value of the
Common Stock at the time the Option is granted.

            The Option agreement shall specify the number of shares of Common
Stock to which it pertains.

            (b) Waiting Period until Option Vesting and Exercise Dates. At the
time an Option is granted, the Committee will determine the terms and conditions
to be satisfied before shares may be purchased, including the dates on which the
right to purchase shares subject to the Option will vest and such shares may
first be purchased. The Committee may specify that an Option may not be
exercised until the completion of the waiting period specified at the time of
grant. (Any such period is referred to

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herein as the "Initial Vesting Period.") At the time an Option is granted, the
Committee shall fix the period within which such Option may be exercised, which
shall not be less than the Initial Vesting Period, if any, nor, in the case of
an Incentive Stock Option, more than 10 years from the date of grant.

            (c) Form of Payment. The consideration to be paid for the shares of
Common Stock to be issued upon exercise of an Option, including the method of
payment, shall be determined by the Committee (and, in the case of an Incentive
Stock Option, shall be determined at the time of grant) and may consist entirely
of (i) cash, (ii) check, (iii) promissory note, (iv) other shares of Common
Stock which (x) either 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 (y) 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, (v) delivery of a properly executed exercise notice together with
irrevocable instructions to a broker to promptly deliver to the Company the
amount of sale or loan proceeds required to pay the exercise price, (vi)
delivery of an irrevocable subscription agreement for the shares which obligates
the option holder to take and pay for the shares not more than 12 months after
the date of delivery of the subscription agreement, (vii) any combination of the
foregoing methods of payment, or (viii) such other consideration and method of
payment for the issuance of shares to the extent permitted under the Delaware
General Corporation Law.

            (d) Effect of Termination of Employment or Death or Disability of
Employee Participants.

                (i) Termination of Employment in General. In the event that an
Optionee during his or her lifetime ceases to be an Employee of the Company or
of any Subsidiary for any reason, other than misconduct of the Optionee,
including retirement, any Option, including any unexercised portion thereof,
which was otherwise exercisable on the date of termination of employment, shall
expire in accordance with the following provisions:

                    (A) Nonstatutory Stock Options shall expire unless exercised
        within such time period as is determined by the Committee; which shall
        be ninety (90) days from the date the Optionee ceases to be an Employee
        unless the Committee has specified another time period prior to the
        expiration of such ninety (90) day period; and

                    (B) Incentive Stock Options shall expire unless exercised
        within a period of ninety (90) days from the date on which the Optionee
        ceased to be an Employee (or such lesser period as is set out in Option
        agreement),

                Notwithstanding the foregoing, the period of exercisability
provided for above, as applicable shall in no event continue after the
expiration of the term of such Option as set forth in the Option agreement.

                (ii) Misconduct: If in any case the Committee shall determine
that an Employee or Consultant shall have been discharged due to the Employee's
or Consultant's misconduct (as defined below) such Employee or Consultant, as
the case may be, shall not thereafter have any rights under the Plan or any
Option that shall have been granted to him or her under the Plan. For purposes
of the Plan, "misconduct" means conduct for which the Company's determines to
terminate the employment of an Employee or to terminate any Consultant's
arrangements with the Company that constitutes (i)

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willful breach or neglect of duty; (ii) failure or refusal to work or to comply
with the Company's rules, policies, and practices; (iii) dishonesty; (iv)
insubordination; (v) being under the influence of drugs (except to the extent
medically prescribed) or alcohol while on duty or on Company premises; (vi)
conduct endangering, or likely to endanger, the health or safety of another
Employee, any other person or the property of the Company; or (vii) conviction
of a felony.

                (iii) Termination of Employment due to Disability or Death. In
the event of the death or permanent, total Disability of an Optionee during the
period of employment, that portion of the Option which had become exercisable as
of the date of death or permanent, total Disability shall be exercisable by the
employee or his or her personal representatives, heirs, or legatees within 12
months of the date of death or permanent, total Disability or such time period
as is determined by the Committee (but in the case of an Incentive Stock Option,
in no event no more than 12 months after the date of death or permanent, total
Disability or after the expiration of the term of such Option as set forth in
the Option agreement.) In the event of the death of an Optionee within three
months after termination of employment, that portion of the Option which had
become exercisable as of the date of termination shall be exercisable by his or
her personal representatives, heirs, or legatees within six months of the date
of death or such time period as is determined by the Committee (but in the case
of an Incentive Stock Option, in no event after the expiration of the term of
such Option as set forth in the Option agreement.) In the event that an Optionee
ceases to be an Employee of the Company or of any Subsidiary for any reason,
including death, Disability or retirement, prior to the lapse of the Initial
Vesting Period, if any, his or her Option shall terminate and be null and void
to the extent the requirement for such Initial Vesting Period has not been
satisfied.

            (e) Leave of Absence. The employment relationship shall not be
considered interrupted in the case of: (i) sick leave, military leave or any
other leave of absence approved by the Board; provided that any such leave is
for a period of not more than 90 days, unless reemployment upon the expiration
of such leave is guaranteed by contract, statute or pursuant to formal policy
adopted from time to time by the Company and issued and promulgated to Employees
in writing, or (ii) in the case of transfer between locations of the Company or
between the Company, its Subsidiaries or its successor. In the case of any
Employee on an approved leave of absence, the Committee may make such provisions
respecting suspension of vesting of the Option while on leave from the employ of
the Company or a Subsidiary as it may deem appropriate, if any, except that in
no event shall an Option be exercised after the expiration of the term set forth
in the Option agreement.

            (f) Acceleration of Vesting or Initial Vesting Period. The Committee
may accelerate the earliest date on which outstanding Options (or any
installments thereof) are exercisable.

            (g) Special Incentive Stock Option Provisions. In addition to the
foregoing, Options granted to Employees under the Plan which are intended to be
Incentive Stock Options under Section 422 of the Code shall be subject to the
following terms and conditions:

                (i) Dollar Limitation. To the extent that the aggregate Fair
Market Value of the shares of Common Stock with respect to which Options
designated as Incentive Stock Options become exercisable for the first time by
any individual during any calendar year (under all plans of the Company) exceeds
$100,000, such Options shall be treated as Nonstatutory Stock Options. For
purposes of the preceding sentence, (i) Options shall be taken into account in
the order in which they were granted

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and (ii) the Fair Market Value of the shares shall be determined as of the time
the Option with respect to such shares was granted.

                (ii) 10% Stockholder. If any person to whom an Incentive Stock
Option is to be granted pursuant to the provisions of the Plan is, on the date
of grant, the owner of Common Stock (as determined under Section 425(d) of the
Code) possessing more than 10% of the total combined voting power of all classes
of stock of the Company or of any Subsidiary, then the following special
provisions shall be applicable to the Option granted to such individual:

                    (A) The Option price per share of the Common Stock subject
        to such Incentive Stock Option shall not be less than 110% of the Fair
        Market Value of the Common Stock on the date of grant; and

                    (B) The Option shall not have a term in excess of five years
        from the date of grant.

Except as modified by the preceding provisions of this Subsection 7(g) and
except as otherwise required by Section 422 of the Code, all of the provisions
of the Plan shall be applicable to the Incentive Stock Options granted
hereunder.

            (h) Other Provisions. Each Option granted under the Plan may contain
such other terms, provisions, and conditions not inconsistent with the Plan as
may be determined by the Committee.

            (i) Options to Consultants. Except as set forth in Section 7(d)(ii),
Options granted to Consultants shall not be subject to Section 7(d) of the Plan,
but shall have such terms and conditions pertaining to the Initial Vesting
Period (if any), exercise date, and effect of termination of the consulting
relationship as the Committee shall determine in each case. Unless otherwise
stated, termination of the consulting relationship shall be deemed to have
occurred at the completion of the consulting project for which Consultant was
engaged at the time of the grant or termination of the Consulting Agreement, if
earlier.

            (j) Buyout Provisions. The Committee may at any time offer to buy
out for a payment in cash or Common Stock, an Option previously granted, based
on such terms and conditions as the Committee shall establish and communicate to
the Optionee at the time that such offer is made.

            (k) Rule 16b-3. Options granted to persons subject to Section 16(b)
of the Exchange Act must comply with Rule 16b-3 and shall be deemed to 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.

            (l) Limits. The following limitations shall apply to grants of
Options to employees:

                 (i) No employee shall be granted, in any fiscal year of the
Company, Options to purchase more than 1,500,000 Shares.

                 (ii) The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization or
organization as described in Sections 9 and 10.

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                 (iii) If an Option grant made under the Plan is canceled in the
same fiscal year of the Company in which it was granted (other than in
connection with a transaction described in Section 9 or Section 10), the
canceled Option grant will be counted against the limit set forth in Section
7(l)(i), above. For this purpose, if the exercise price of an Option grant is
reduced, the transaction will be treated as a cancellation of the Option grant
and the grant of a new Option.

        8. Withholding Taxes; Stock Withholding to Satisfy Withholding Tax
Obligations. Whenever, under the Plan, shares are to be issued in satisfaction
of Options granted hereunder, the Company shall have the right to require the
recipient to remit to the Company an amount sufficient to satisfy federal,
state, and local withholding tax requirements prior to the delivery of any
certificate or certificates for such shares. Whenever, under the Plan, payments
are to be made in cash, such payment shall be net of an amount sufficient to
satisfy federal, state, and local withholding tax requirements.

        When a participant incurs tax liability in connection with the exercise
or vesting of any Option, which tax liability is subject to tax withholding
under applicable tax laws, and the participant is obligated to pay the Company
an amount required to be withheld under applicable tax laws, the participant may
satisfy the withholding tax obligation by electing to have the Company withhold
from the shares to be issued that number of shares having a Fair Market Value
equal to the amount required to be withheld determined on the date that the
amount of tax to be withheld is to be determined (the "Tax Date").

        All elections by participant 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 applicable Tax
Date;

                (ii) once made, the election shall be irrevocable as to the
particular shares as to which the election is made;

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

                (iv) if the participant is an officer or Director of the Company
or other person whose transactions in Common Stock are subject to Section 16(b)
of the Exchange Act (collectively "Insiders"), the election may not be made
during such time or times, if any, as are restricted by Rule 16b-3 or any
successor provision.

        9. Recapitalization. In the event that dividends are payable in Common
Stock or in the event there are splits, subdivisions, or combinations of shares
of Common Stock, the number of shares available under the Plan shall be
increased or decreased proportionately, as the case may be, and the number of
shares of Common Stock deliverable in connection with any Option theretofore
granted shall be increased or decreased proportionately, as the case may be,
without change in the aggregate purchase price (where applicable).

        10. Reorganization. In case the Company is merged or consolidated with
another corporation and the Company is not the surviving corporation, or in case
the property or stock of the Company is acquired by another corporation, or in
case of separation, reorganization, or liquidation of the

<PAGE>

Company, then the Board, or the board of directors of any corporation assuming
the obligations of the Company hereunder, shall, as to outstanding Options
either (a) make appropriate provision for the protection of any such outstanding
Options by the assumption or substitution on an equitable basis of appropriate
stock of the Company or of the merged, consolidated, or otherwise reorganized
corporation which will be issuable in respect to the shares of Common Stock,
provided that in the case of Incentive Stock Options, such assumption or
substitution comply with Section 424 of the Code, or (b) upon written notice to
the participant, provide that the Option must be exercised within 30 days of the
date of such notice or it will be terminated. In any such case, the Board or the
Committee may, in its discretion, advance the lapse of vesting periods, Initial
Vesting Periods, and exercise dates.

        11. Employment Relationship. Nothing in the Plan or any Award made
hereunder shall be construed as a contract for employment or consulting for any
period or shall interfere with or limit in any way the right of the Company or
of any Subsidiary to terminate any recipient's employment or consulting
relationship at any time, with or without cause, nor confer upon any recipient
any right to continue in the employ or service of the Company or any Subsidiary.

        12. General Restriction. Each Award shall be subject to the requirement
that, if, at any time, the Board shall determine, in its discretion, that the
listing, registration, or qualification of the shares subject to such Award upon
any securities exchange or under any state or federal law, or the consent or
approval of any government regulatory body, is necessary or desirable as a
condition of, or in connection with, such Award or the issue or purchase of
shares thereunder, such Award may not be exercised in whole or in part unless
such listing, registration, qualification, consent, or approval shall have been
effected or obtained free of any conditions not acceptable to the Board.

        13. Rights as a Stockholder. The holder of an Option shall have no
rights as a stockholder with respect to any shares covered by the Option until
the date of exercise. Once an Option is exercised by the holder thereof, the
participant shall have the rights equivalent to those of a stockholder, and
shall be a stockholder when his or her holding is entered upon the records of
the duly authorized transfer agent of the Company. Except as otherwise expressly
provided in the Plan, no adjustment shall be made for dividends or other rights
for which the record date is prior to the date such stock certificate is issued.

        14. Nonassignability of Awards. Awards made hereunder shall not be
assignable or transferable by the recipient in accordance with their terms,
except to the extent permitted by the tax and securities laws, including by will
or by the laws of descent and distribution, and as otherwise consistent with the
specific Plan provisions relating thereto.

        15. Nonexclusivity of the Plan. Neither the adoption of the Plan by the
Board, the submission of the Plan to the stockholders of the Company for
approval, nor any provision of the Plan shall be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under the Plan, and such arrangements
may be either generally applicable or applicable only in specific cases.

        16. Amendment, Suspension, or Termination of the Plan. 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 participant in the Plan without his or her consent. Further, no
amendment shall be made without the approval of the Company's stockholders that
would materially

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increase benefits accruing to participants under the Plan, increase the
aggregate number of securities to be issued under the Plan or modify the
eligibility requirements for participants in the Plan. In addition, to the
extent necessary and desirable to comply with Rule 16b-3 under the Exchange Act
or under Section 423 of the Code (or any other applicable law or regulation),
the Company shall obtain stockholder approval of any Plan amendment in such a
manner and to such a degree as required.

        17. Effective Date of the Plan. The Amended and Restated Plan is
effective upon adoption by the Board and shall be subject to stockholder
approval within 12 months of adoption by the Board. Options may be granted and
exercised under the Plan only after there has been compliance with all
applicable federal and state securities laws.<PAGE>
                                                                     EXHIBIT 4.2

                              LSI LOGIC CORPORATION

                       1999 NONSTATUTORY STOCK OPTION PLAN

      1.    Purposes of the Plan. The purposes of this Nonstatutory Stock Option
            Plan are:

            -     to attract and retain the best available personnel for
                  positions of substantial responsibility,

            -     to provide additional incentive to Employees , and

            -     to promote the success of the Company's business.

            Options granted under the Plan will be Nonstatutory Stock Options.

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

            (a)   "Administrator" means the Board or any of its Committees,
which may include one or more Officers, as shall be administering the Plan, in
accordance with Section 4 of the Plan.

            (b)   "Applicable Laws" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where options are, or will be, granted under
the Plan.

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

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

            (e)   "Committee" means the Committee or Committees referred to in
Section 4 of the Plan. If at any time no Committee shall be in office or acting,
then the functions of the Committee specified in the Plan shall be exercised by
the Board.

            (f)   "Common Stock" means the Common Stock of the Company.

            (g)   "Company" means LSI Logic Corporation, a Delaware corporation,
or any successor corporation.

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

            (i)   "Disability" means total and permanent disability as defined
in Section 22(e)(3) of the Code.

            (j)   "Employee" means any person, employed by the Company or any
Parent or Subsidiary of the Company. An employee shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the

<PAGE>

Company, its Parent, any Subsidiary, or any successor. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

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

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

                  (i)   if such Common Stock shall then be listed on a national
securities exchange, the closing sales price (or the closing bid, if no sales
were reported) as quoted on the principal national securities exchange on which
the Common Stock is listed or admitted to trading, or

                  (ii)  the closing sales price (or the closing bid, if no sales
were reported) as quoted on the NASDAQ National Market System, or

                  (iii) if such Common Stock shall not be quoted on such
National Market System nor listed or admitted to trading on a national
securities exchange, then the average of the closing bid and asked prices, as
reported by The Wall Street Journal for the over-the-counter market, or

                  (iv)  if none of the foregoing is applicable, then the Fair
Market Value of a share of Common Stock shall be determined by the Board of
Directors of the Company in its discretion.

            (m)   "Notice of Grant" means a written or electronic notice
evidencing certain terms and conditions of an individual Option grant. The
Notice of Grant is part of the Option Agreement.

            (n)   "Officer" means an Employee with the corporate rank of
vice-president or higher.

            (o)   "Option" means a nonstatutory stock option granted pursuant to
the Plan, that is not intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

            (p)   "Option Agreement" means an agreement between the Company and
an Optionee evidencing the terms and conditions of an individual Option grant.
The Option Agreement is subject to the terms and conditions of the Plan.

            (q)   "Optioned Stock" means the Common Stock subject to an Option.

            (r)   "Optionee" means the holder of an outstanding Option granted
under the Plan.

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

            (t)   "Plan" means this 1999 Nonstatutory Stock Option Plan.

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

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

<PAGE>

      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 49,000,000 Shares, on a split-adjusted basis. The Shares
may be authorized, but unissued, or reacquired Common Stock.

            If an Option expires or becomes unexercisable without having been
exercised in full, the unpurchased Shares which were subject thereto shall
become available for future grant or sale under the Plan (unless the Plan has
terminated).

      4.    Administration of the Plan.

            (a)   Administration. The Plan shall be administered by (i) the
Board or (ii) a Committee, which committee shall be constituted to satisfy
Applicable Laws.

            (b)   Powers of the Administrator. Subject to the provisions of the
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

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

                  (ii)   to select the Employees to whom Options may be granted
hereunder;

                  (iii)  to determine whether and to what extent Options are
granted hereunder;

                  (iv)   to determine the number of shares of Common Stock to be
covered by each Option 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. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Option or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

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

                  (viii) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                  (ix)   to modify or amend each Option (subject to Section
17(b) of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise
provided for in the Plan;

                  (x)    to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option previously
granted by the Administrator;

<PAGE>

                  (xi)   to determine the terms and restrictions applicable to
Options;

                  (xii)  to allow Optionees to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option 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. All elections by an Optionee to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable; and

                  (xiii) to make all other determinations deemed necessary or
advisable for administering the Plan.

            (c)   Effect of Administrator's Decision. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options.

      5.    Eligibility. Options may be granted to Employees; provided, however,
that notwithstanding anything to the contrary contained in the Plan, Options may
not be granted to Officers and Directors.

      6.    Limitation. Neither the Plan nor any Option shall create a contract
for employment for any period nor confer upon an Optionee any right with respect
to continuing the Optionee's relationship as an employee with the Company or any
Subsidiary, nor shall they interfere in any way with the Optionee's right or the
Company's or any Subsidiary's right to alter the "at will" nature of the
employment relationship, including the right to terminate such relationship at
any time, with or without cause.

      7.    Term of Plan. The Plan shall become effective upon its adoption by
the Board. It shall continue in effect for ten (10) years, unless sooner
terminated under Section 17 of the Plan.

      8.    Term of Option. The term of each Option shall be stated in the
Option Agreement.

      9.    Option Exercise Price and Consideration.

            (a)   Exercise Price. The per share exercise price for the Shares to
be issued pursuant to exercise of an Option shall be the Fair Market Value of
the Common Stock on the date of grant of the Option.

            (b)   Vesting Periods and Exercise Dates. At the time an Option is
granted, the Administrator shall fix the period(s) within which the Option may
vest and be exercised and shall determine any conditions which must be satisfied
before the Option may be exercised.

            (c)   Form of Consideration. The consideration to be paid for the
shares of Common Stock to be issued upon exercise of an Option, including the
method of payment, shall be determined by the Committee and may consist entirely
of (i) cash, (ii) check, (iii) promissory note, (iv) other shares of Common
Stock which (x) either 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 (y) 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, (v) delivery of a properly executed exercise notice together with
irrevocable instructions to a broker to promptly deliver to the Company the
amount of sale or loan proceeds required to pay the exercise price, (vi)
delivery of an irrevocable subscription agreement for the shares which obligates
the option holder to take and pay for the shares not more than 12 months after
the date of delivery of the subscription agreement, (vii) any combination

<PAGE>

of the foregoing methods of payment, or (viii) such other consideration and
method of payment for the issuance of shares to the extent permitted under the
Delaware General Corporation Law.

      10.   Exercise of Option.

            (a)   Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. An Option may not be exercised for a fraction of
a Share.

            An Option shall be deemed exercised when the Company receives: (i)
written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), 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.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 13 of the Plan.

            Exercising an Option in any manner shall decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

      11.   Effect of Termination of Employment or Death or Disability of
Optionee.

            (a)   Termination in General. In the event that an Optionee during
his or her lifetime ceases to be an Employee for any reason including
retirement, other than misconduct of the Optionee, any Option, including any
unexercised portion thereof, which was otherwise exercisable on the date of
termination of employment, shall expire unless exercised within such time period
as is determined by the Committee; which shall be ninety (90) days from the date
the Optionee ceases to be an Employee unless the Committee has specified another
time period prior to the expiration of such ninety (90) day period; and

            Notwithstanding the foregoing, the period of exercisability provided
for above, as applicable shall in no event continue after the expiration of the
term of such Option as set forth in the Option Agreement.

            (b)   Misconduct: If in any case the Committee shall determine that
an Employee shall have been discharged due to misconduct (as defined below) such
Employee shall not thereafter have any rights under the Plan or any Option that
shall have been granted to him or her under the Plan. For purposes of the Plan,
"misconduct" means conduct for which the Company's determines to terminate an
Employee's relationship with the Company due to (i) willful breach or neglect of
duty; (ii) failure or refusal to work or to comply with the Company's rules,
policies, and practices; (iii) dishonesty; (iv) insubordination; (v) being under
the influence of drugs (except to the extent medically prescribed) or alcohol
while on duty or on Company premises; (vi) conduct endangering, or likely to
endanger, the health or safety of another Employee, any other person or the
property of the Company; or (vii) conviction of, or plea of nolo contendere to,
a felony.

<PAGE>

            (c)   Termination of Employment due to Disability or Death. In the
event of the death or permanent, total Disability of an Optionee, that portion
of the Option which had become exercisable as of the date of death or permanent,
total Disability shall be exercisable by the Optionee or his or her personal
representatives, heirs, or legatees within 12 months of the date of death or
permanent, total Disability or such time period as is determined by the
Committee. In the event of the death of an Optionee within three months after
termination as an Employee, that portion of the Option which had become
exercisable as of the date of termination shall be exercisable by his or her
personal representatives, heirs, or legatees within 6 months of the date of
death or such time period as is determined by the Committee. In the event that
an Optionee ceases to be an Employee of the Company or of any Subsidiary for any
reason, including death, Disability or retirement, prior to the lapse of any
vesting period, his or her Option shall terminate and be null and void to the
extent the requirement for such vesting period has not been satisfied.

            (d)   Leave of Absence. The employment relationship shall not be
considered interrupted in the case of: (i) sick leave, military leave or any
other leave of absence approved by the Board, or (ii) in the case of transfer
between locations of the Company or between the Company, its Subsidiaries or its
successor. In the case of any Employee on an approved leave of absence, the
Committee may make such provisions respecting suspension of vesting of the
Option while on leave from the employ of the Company or a Subsidiary as it may
deem appropriate, if any, except that in no event shall an Option be exercised
after the expiration of the term set forth in the Option agreement.

            (e)   Acceleration of Vesting. The Committee may accelerate the
earliest date on which outstanding Options (or any installments thereof) are
exercisable.

      12.   Withholding Taxes; Stock Withholding to Satisfy Withholding Tax
Obligations. Whenever, under the Plan, Shares are to be issued in satisfaction
of Options granted hereunder, the Company shall have the right to require the
Optionee to remit to the Company an amount sufficient to satisfy federal, state,
and local withholding tax requirements prior to the delivery of any certificate
or certificates for such Shares.

      When an Optionee incurs tax liability in connection with the exercise or
vesting of any Option, which tax liability is subject to tax withholding under
applicable tax laws, and the Optionee is obligated to pay the Company an amount
required to be withheld under applicable tax laws, the Optionee may satisfy the
withholding tax obligation by electing to have the Company withhold from the
Shares to be issued that number of Shares having a Fair Market Value equal to
the amount required to be withheld determined on the date that the amount of tax
to be withheld is to be determined (the "Tax Date").

      All elections by an Optionee 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:

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

            (b)   once made, the election shall be irrevocable as to the
particular Shares as to hich the election is made;

            (c)   all elections shall be subject to the disapproval of the
Committee.

      13.   Recapitalization. In the event that dividends are payable in Common
Stock or in the event there are splits, subdivisions, or combinations of shares
of Common Stock, the number of Shares available under the Plan shall be
increased or decreased proportionately, as the case may be, and the number of
shares of

<PAGE>

Common Stock deliverable in connection with any Option theretofore granted shall
be increased or decreased proportionately, as the case may be, without change in
the aggregate purchase price (where applicable).

      14.   Reorganization. In case the Company is merged or consolidated with
another corporation and the Company is not the surviving corporation, or in case
the property or stock of the Company is acquired by another corporation, or in
case of separation, reorganization, or liquidation of the Company, then the
Board, or the board of directors of any corporation assuming the obligations of
the Company hereunder, shall, as to outstanding Options either (a) make
appropriate provision for the protection of any such outstanding Options by the
assumption or substitution on an equitable basis of appropriate stock of the
Company or of the merged, consolidated, or otherwise reorganized corporation
which will be issuable in respect to the shares of Common Stock, or (b) upon
written notice to the Optionee, provide that the Option must be exercised within
30 days of the date of such notice or it will be terminated. In any such case,
the Board or the Committee may, in its discretion, advance the lapse of vesting
periods and exercise dates.

      15.   Non-Transferability of Options. Unless determined otherwise by the
Administrator, an 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. If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

      16.   Date of Grant. The date of grant of an Option shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the Administrator.
Notice of the determination shall be provided to each Optionee within a
reasonable time after the date of such grant.

      17.   Amendment and Termination of the Plan.

            (a)   Amendment and Termination. The Board may at any time amend,
alter, suspend or terminate the Plan.

            (b)   Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

      18.   Conditions Upon Issuance of Shares.

            (a)   Legal Compliance. 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 shall comply with Applicable Laws 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 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.

      19.   Inability to Obtain Authority. 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

<PAGE>

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.

      20.   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.

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