Document:

HELICOS BIOSCIENCES CORPORATION  

 2007 STOCK OPTION AND INCENTIVE PLAN  

SECTION 1.    GENERAL PURPOSE OF THE PLAN; DEFINITIONS

        The
name of the plan is the Helicos BioSciences Corporation 2007 Stock Option and Incentive Plan (the "Plan"). The purpose of the Plan is to encourage and enable the officers, employees,
Non-Employee Directors and other key persons (including consultants and prospective employees) of Helicos BioSciences Corporation (the "Company") and its Subsidiaries upon whose judgment,
initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a
direct stake in the Company's welfare will assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts on the Company's behalf
and strengthening their desire to remain with the Company. 

        The
following terms shall be defined as set forth below: 

        "Act" means the Securities Act of 1933, as amended, and the rules and regulations thereunder. 

        "Administrator" means either the Board or the compensation committee of the Board or a similar committee performing the functions of the
compensation committee and which is comprised of not less than two Non-Employee Directors who are independent. 

        "Award" or "Awards," except where referring to a particular category of grant under the
Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Deferred Stock Awards, Restricted Stock Awards, Unrestricted Stock Awards,
Cash-based Awards and Dividend Equivalent Rights. 

        "Award Agreement" means a written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the
Plan. Each Award Agreement is subject to the terms and conditions of the Plan. 

        "Board" means the Board of Directors of the Company. 

        "Cash-based Award" means an Award entitling the recipient to receive a cash-denominated payment. 

        "Code" means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations. 

        "Covered Employee" means an employee who is a "Covered Employee" within the meaning of Section 162(m) of the Code. 

        "Deferred Stock Award" means an Award of phantom stock units to a grantee. 

        "Dividend Equivalent Right" means an Award entitling the grantee to receive credits based on cash dividends that would have been paid on
the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the grantee. 

        "Effective Date" means the date on which the Plan is approved by stockholders as set forth in Section 19. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. 

        "Fair Market Value" of the Stock on any given date means the fair market value of the Stock determined in good faith by the Administrator;
provided, however, that if the Stock is admitted to quotation on the National Association of Securities Dealers Automated Quotation System ("NASDAQ"), NASDAQ Global Market or another national
securities exchange, the determination shall be made by reference to market quotations. If there are no market quotations for such date, the determination shall be made by reference to the last date
preceding such date for which there are 

 

market
quotations; provided further, however, that if the date for which Fair Market Value is determined is the first day when trading prices for the Stock are reported on a national securities
exchange, the Fair Market Value shall be the "Price to the Public" (or equivalent) set forth on the cover page for the final prospectus relating to the Company's Initial Public Offering. 

        "Incentive Stock Option" means any Stock Option designated and qualified as an "incentive stock option" as defined in Section 422
of the Code. 

        "Initial Public Offering" means the consummation of the first fully underwritten, firm commitment public offering pursuant to an effective
registration statement under the Act covering the offer and sale by the Company of its equity securities, or such other event as a result of or following which the Stock shall be publicly held. 

        "Non-Employee Director" means a member of the Board who is not also an employee of the Company or any Subsidiary. 

        "Non-Qualified Stock Option" means any Stock Option that is not an Incentive Stock Option. 

        "Option" or "Stock Option" means any option to purchase shares of Stock granted pursuant
to Section 5. 

        "Restricted Stock Award" means an Award entitling the recipient to acquire, at such purchase price (which may be zero) as determined by
the Administrator, shares of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant. 

        "Sale Event" shall mean (i) the sale of all or substantially all of the assets of the Company on a consolidated basis to an
unrelated person or entity, (ii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities of the successor entity and
the holders of the Company's outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion of
such transaction, or (iii) the sale of all of the Stock of the Company to an unrelated person or entity. 

        "Sale Price" means the value as determined by the Administrator of the consideration payable, or otherwise to be received by stockholders,
per share of Stock pursuant to a Sale Event. 

        "Section 409A" means Section 409A of the Code and the regulations and other guidance promulgated thereunder. 

        "Stock" means the Common Stock, par value $0.001 per share, of the Company, subject to adjustments pursuant to Section 3. 

        "Stock Appreciation Right" means an Award entitling the recipient to receive shares of Stock having a value equal to the excess of the
Fair Market Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of Stock with respect to which the Stock Appreciation
Right shall have been exercised. 

        "Subsidiary" means any corporation or other entity (other than the Company) in which the Company has at least a 50 percent
interest, either directly or indirectly. 

        "Ten Percent Owner" means an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the
Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation. 

        "Unrestricted Stock Award" means an Award of shares of Stock free of any restrictions. 

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SECTION 2.    ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE
AWARDS

        (a)    Administration of Plan.    The Plan shall be administered by the Administrator. 

        (b)    Powers of Administrator.    The Administrator shall have the power and authority to grant Awards consistent
with the terms of the Plan, including the power and authority: 

        (i)    to
select the individuals to whom Awards may from time to time be granted; 

        (ii)   to
determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights,
Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock Awards, Cash-based Awards and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more
grantees; 

        (iii)  to
determine the number of shares of Stock to be covered by any Award; 

        (iv)  to
determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and
conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 

        (v)   to
accelerate at any time the exercisability or vesting of all or any portion of any Award; 

        (vi)  subject
to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; and 

        (vii) at
any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem
advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 

        All
decisions and interpretations of the Administrator shall be binding on all persons, including the Company and Plan grantees. 

        (c)    Delegation of Authority to Grant Options.    Subject to applicable law, the Administrator, in its discretion,
may delegate to the Chief Executive Officer of the Company all or part of the Administrator's
authority and duties with respect to the granting of Options, to individuals who are (i) not subject to the reporting and other provisions of Section 16 of the Exchange Act and
(ii) not Covered Employees. Any such delegation by the Administrator shall include a limitation as to the amount of Options that may be granted during the period of the delegation and shall
contain guidelines as to the determination of the exercise price and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not
invalidate any prior actions of the Administrator's delegate or delegates that were consistent with the terms of the Plan. 

        (d)    Award Agreement.    Awards under the Plan shall be evidenced by Award Agreements that set forth the terms,
conditions and limitations for each Award which may include, without limitation, the term of an Award, the provisions applicable in the event employment or service terminates, and the Company's
authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award. 

        (e)    Indemnification.    Neither the Board nor the Administrator, nor any member of either or any delegate thereof,
shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Administrator (and any
delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable 

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attorneys'
fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company's articles or bylaws or any directors' and officers' liability insurance coverage which
may be in effect from time to time and/or any indemnification agreement between such individual and the Company. 

        (f)    Foreign Award Recipients.    Notwithstanding any provision of the Plan to the contrary, in order to comply with
the laws in other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the Administrator, in its sole discretion, shall have the
power and authority to: (i) determine which Subsidiaries shall be covered by the Plan; (ii) determine which individuals outside the United States are eligible to participate in the Plan;
(iii) modify the terms and conditions of any Award granted to individuals outside the United States to comply with applicable foreign laws; (iv) establish subplans and modify exercise
procedures and other terms and procedures, to the extent the Administrator determines such actions to be necessary or advisable (and such subplans and/or modifications shall be attached to this Plan
as appendices); provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Section 3(a) hereof; and (v) take any action, before or
after an Award is made, that the Administrator determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the
foregoing, the Administrator may not take any actions hereunder, and no Awards shall be granted, that would violate the Exchange Act or any other applicable United States securities law, the Code, or
any other applicable United States governing statute or law. 

SECTION 3.    STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION 

        (a)    Stock Issuable.    The maximum number of shares of Stock reserved and available for issuance under the Plan
shall be the sum of (i) 6,481,198 shares, (ii) the number of Shares under the Company's 2003 Stock Option and Incentive Plan (the "2003 Plan") which are not needed to fulfill the
Company's obligations for awards issued under the 2003 Plan as a result of forfeiture, expiration, cancellation, termination or net issuances of awards thereunder, and (iii) on
January 1, 2008 and on each January 1 thereafter, an additional number of shares equal to the lower of (A) four and one-half percent (4.5%) of the outstanding number
of shares of Stock on the immediately preceding December 31, or (B) such lower number of shares of Stock as may be determined by the Board of Directors, in each case subject to
adjustment as provided in Section 3(b). For purposes of this limitation, the shares of Stock underlying any Awards that are forfeited, canceled, held back upon exercise of an Option or
settlement of an Award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated (other than by
exercise) shall be added back to the shares of Stock available for issuance under the Plan. Subject to such overall limitations, shares of Stock may be issued up to such maximum number pursuant to any
type or types of Award; provided, however, that (i) Incentive Stock Options may be granted with respect to no more than 6,431,434 shares, plus on each January 1, starting
January 1, 2008, an additional number of shares equal to the lesser of (A) four and one-half percent (4.5%) of the outstanding number of shares of Stock on the immediately
preceding December 31 and (B) 3,150,000 shares of Stock and (ii) Stock Options or Stock Appreciation Rights with respect to no more than 6,500,000 shares of Stock may be granted
to any one individual grantee during any one calendar year period. The shares available for issuance under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the
Company. 

        (b)    Changes in Stock.    Subject to Section 3(c) hereof, if, as a result of any reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company's capital stock, the outstanding shares of Stock are increased or decreased
or are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other
non-cash assets are 

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distributed
with respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding
shares of Stock are converted into or exchanged for securities of the Company or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate
adjustment in (i) the maximum number of shares reserved for issuance under the Plan, (ii) the number of Stock Options or Stock Appreciation Rights that can be granted to any one
individual grantee, (iii) the number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price, if any, per share subject to
each outstanding Restricted Stock Award, and (v) the price for each share subject to any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the
aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock Options and Stock Appreciation Rights remain
exercisable. The Administrator shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards
to take into consideration cash dividends paid other than in the ordinary course or any other extraordinary corporate event. The adjustment by the Administrator shall be final, binding and conclusive.
No fractional shares of Stock shall be issued under the Plan resulting from any such adjustment, but the Administrator in its discretion may make a cash payment in lieu of fractional shares. 

        (c)    Mergers and Other Transactions.    Except as the Administrator may otherwise specify with respect to particular
Awards in the relevant Award documentation, in the case of and subject to the consummation of a Sale Event, the Administrator shall as to outstanding Awards (on the same basis or on different bases as
the Administrator shall specify), make appropriate provision for the assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards with new
Awards of the successor entity or parent thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as the Administrator shall
specify. In addition to or in lieu of the foregoing, the Administrator may provide that, upon the effective time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall
terminate. In the event of such termination, (i) the Company shall have the option (in its sole discretion) to make or provide for a cash payment to the grantees holding Options and Stock
Appreciation Rights, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the Sale Price multiplied by the number of shares of Stock subject to outstanding
Options and Stock Appreciation Rights (to the extent then exercisable (after taking into account any acceleration hereunder) at prices not in excess of the Sale Price) and (B) the aggregate
exercise price of all such outstanding Options and Stock Appreciation Rights; or (ii) each grantee shall be permitted, within a specified period of time prior to the consummation of the Sale
Event as determined by the Administrator, to exercise all outstanding Options and Stock Appreciation Rights held by such grantee; provided, however, that, in the case of this clause (ii), all
Options and Stock Appreciation Rights that are not exercisable immediately prior to the effective time of the Sale Event shall become fully exercisable as of the effective time of the Sale Event. 

        (d)    Substitute Awards.    The Administrator may grant Awards under the Plan in substitution for stock and stock
based awards held by employees, directors or other key persons of another corporation in connection with the merger or consolidation of the employing corporation with the Company or a Subsidiary or
the acquisition by the Company or a Subsidiary of property or stock of the employing corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the
Administrator considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set forth in Section 3(a). 

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SECTION 4.    ELIGIBILITY 

        Grantees
under the Plan will be such full or part-time officers and other employees, Non-Employee Directors and key persons (including consultants and prospective
employees) of the Company and its Subsidiaries as are selected from time to time by the Administrator in its sole discretion. 

SECTION 5.    STOCK OPTIONS 

        Any
Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve. 

        Stock
Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the
Company or any Subsidiary that is a "subsidiary corporation" within the meaning of Section 424(f) of the Code. To the extent that any Option does not qualify as an Incentive Stock Option, it
shall be deemed a Non-Qualified Stock Option. 

        (a)    Stock Options Granted to Employees and Key Persons.    The Administrator in its discretion may grant Stock
Options to eligible employees and key persons of the Company or any Subsidiary. Stock Options granted pursuant to this Section 5(a) shall be subject to the following terms and conditions and
shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. If the Administrator so determines, Stock Options may be
granted in lieu of cash compensation at the optionee's election, subject to such terms and conditions as the Administrator may establish. 

                (i)    Exercise Price.    The exercise price per share for the Stock covered by a Stock Option granted
pursuant to this Section 5(a) shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on the date of grant. In the
case of an Incentive Stock Option that is granted to a Ten Percent Owner, the option price of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the
grant date. 

                (ii)    Option Term.    The term of each Stock Option shall be fixed by the Administrator, but no Stock
Option shall be exercisable more than ten years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the term of such Stock
Option shall be no more than five years from the date of grant. 

                (iii)    Exercisability; Rights of a Stockholder.    Stock Options shall become exercisable at such time
or times, whether or not in installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate the exercisability of all or any portion
of any Stock Option. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 

                (iv)    Method of Exercise.    Stock Options may be exercised in whole or in part, by giving written
notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the extent provided in the
Option Award Agreement: 

        (A)  In
cash, by certified or bank check or other instrument acceptable to the Administrator; 

        (B)  Through
the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market or that are beneficially owned by
the optionee and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date. To the extent required to avoid
variable accounting treatment under FAS 123R or other applicable accounting rules, such surrendered shares shall have been owned by the optionee for at least six months; or 

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        (C)  By
the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash
or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall
comply with such procedures
and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure. 

Payment
instruments will be received subject to collection. The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant to the
exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full
purchase price for such shares and the fulfillment of any other requirements contained in the Option Award Agreement or applicable provisions of laws (including the satisfaction of any withholding
taxes that the Company is obligated to withhold with respect to the optionee). In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation
method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of shares attested to. In the event that the Company establishes, for
itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using an internet website or interactive voice response, then the paperless
exercise of Stock Options may be permitted through the use of such an automated system. 

        (v)    Annual Limit on Incentive Stock Options.    To the extent required for "incentive stock option" treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted under this Plan and
any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any
Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option. 

        (b)    Stock Options Granted to Non-Employee Directors.    The Administrator in its discretion may grant
Non-Qualified Stock Options to Non-Employee Directors. Non-Qualified Stock Options granted pursuant to this Section 5(b) shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Administrator shall deem desirable. If the Administrator so determines,
Non-Qualified Stock Options may be granted in lieu of cash compensation at the optionee's election, subject to such terms and conditions as the Administrator may establish. 

                (i)    Exercise Price.    The exercise price per share for the Stock covered by a Stock Option granted
pursuant to this Section 5(b) shall be no less than 100 percent of the Fair Market Value of the Stock on the date the Stock Option is granted. 

                (ii)    Exercise; Termination.    

        (A)  Options
shall become exercisable at such time or times, whether or not in installments, as shall be determined by the Administrator at or after the grant date. The
Administrator may at any time accelerate the exercisability of all or any portion of any Stock Option. A Stock Option issued under this Section 5(b) shall not be exercisable after the
expiration of ten years from the date of grant. 

        (B)  Stock
Options granted under this Section 5(b) may be exercised only by written notice to the Company specifying the number of shares to be purchased. Payment of
the full purchase price of the shares to be purchased may be made by one or more of the methods specified in Section 5(a)(iv). An optionee shall have the rights of a stockholder only as to
shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 

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SECTION 6.    STOCK APPRECIATION RIGHTS 

        (a)    Exercise Price of Stock Appreciation Rights.    The exercise price of a Stock Appreciation Right shall not be
less than 100 percent of the Fair Market Value of the Stock on the date of grant (or more than the Stock Option exercise price per share, if the Stock Appreciation Right was granted in tandem
with a Stock Option). 

        (b)    Grant and Exercise of Stock Appreciation Rights.    Stock Appreciation Rights may be granted by the
Administrator in tandem with, or independently of, any Stock Option granted pursuant to Section 5 of the Plan. In the case of a Stock Appreciation Right granted in tandem with a
Non-Qualified Stock Option, such Stock Appreciation Right may be granted either at or after the time of the grant of such Option. In the case of a Stock Appreciation Right granted in
tandem with an Incentive Stock Option, such Stock Appreciation Right may be granted only at the time of the grant of the Option. 

        A
Stock Appreciation Right or applicable portion thereof granted in tandem with a Stock Option shall terminate and no longer be exercisable upon the termination or exercise of the
related Option. 

        (c)    Terms and Conditions of Stock Appreciation Rights.    Stock Appreciation Rights shall be subject to such terms
and conditions as shall be determined from time to time by the Administrator, subject to the following: 

        (i)    Stock
Appreciation Rights granted in tandem with Options shall be exercisable at such time or times and to the extent that the related Stock Options shall be
exercisable. 

        (ii)   Upon
exercise of a Stock Appreciation Right, the applicable portion of any related Option shall be surrendered. 

        (iii)  Stock
Appreciation Rights may have a term of no more than ten years. 

SECTION 7.    RESTRICTED STOCK AWARDS 

        (a)    Nature of Restricted Stock Awards.    The Administrator shall determine the restrictions and conditions
applicable to each Restricted Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee executing the Restricted Stock Award Agreement. The terms and conditions of each such Award
Agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees. 

        (b)    Rights as a Stockholder.    Upon execution of the Restricted Stock Award Agreement and payment of any
applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the Restricted Stock Award
Agreement. Unless the Administrator shall otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the
effect that they are subject to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted Stock shall remain in the possession
of the Company until such Restricted Stock is vested as provided in Section 7(d) below, and the grantee shall be required, as a condition of the grant, to deliver to the Company such
instruments of transfer as the Administrator may prescribe. 

        (c)    Restrictions.    Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or
disposed of except as specifically provided herein or in the Restricted Stock Award Agreement. Except as may otherwise be provided by the Administrator either in the Award Agreement or, subject to
Section 16 below, in writing after the Award Agreement is issued, if any, if a grantee's 

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employment
(or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically and
without any requirement of notice to such grantee from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price (if any) from
such grantee or such grantee's legal representative simultaneously with such termination of employment (or other service relationship), and thereafter shall cease to represent any ownership of the
Company by the grantee or rights of the grantee as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates, a grantee shall
surrender such certificates to the Company upon request without consideration. 

        (d)    Vesting of Restricted Stock.    The Administrator at the time of grant shall specify the date or dates and/or
the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company's right of
repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which
all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed "vested." Except as may otherwise be provided by the Administrator either in the Award Agreement or, subject to
Section 16 below, in writing after the Award Agreement is issued, a grantee's rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee's
termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject to the provisions of Section 7(c) above. 

SECTION 8.    DEFERRED STOCK AWARDS 

        (a)    Nature of Deferred Stock Awards.    The Administrator shall determine the restrictions and conditions
applicable to each Deferred Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. The grant of a Deferred Stock Award is contingent on the grantee executing the Deferred Stock Award Agreement. The terms and conditions of each such Award Agreement
shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees. At the end of the deferral period, the Deferred Stock Award, to the extent
vested, shall be settled in the form of shares of Stock. 

        (b)    Election to Receive Deferred Stock Awards in Lieu of Compensation.    The Administrator may, in its sole
discretion, permit a grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of a Deferred Stock Award. Any such election shall be made in writing
and shall be delivered to the Company no later than the date specified by the Administrator and in accordance with Section 409A and such other rules and procedures established by the
Administrator. Any such future cash compensation that the grantee elects to defer shall be converted to a fixed number of phantom stock units based on the Fair Market Value of Stock on the date the
compensation would otherwise have been paid to the grantee if such payment had not been deferred as provided herein. The Administrator shall have the sole right to determine whether and under what
circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the Administrator deems appropriate. 

        (c)    Rights as a Stockholder.    A grantee shall have the rights as a stockholder only as to shares of Stock
acquired by the grantee upon settlement of a Deferred Stock Award; provided, however, that the grantee may be credited with Dividend Equivalent Rights with respect to the phantom stock units
underlying his Deferred Stock Award, subject to such terms and conditions as the Administrator may determine. 

        (d)    Termination.    Except as may otherwise be provided by the Administrator either in the Award Agreement or,
subject to Section 16 below, in writing after the Award Agreement is issued, a grantee's 

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right
in all Deferred Stock Awards that have not vested shall automatically terminate upon the grantee's termination of employment (or cessation of service relationship) with the Company and its
Subsidiaries for any reason. 

SECTION 9.    UNRESTRICTED STOCK AWARDS 

        Grant or Sale of Unrestricted Stock.    The Administrator may, in its sole discretion, grant (or sell at par value or such
higher purchase price determined by the Administrator) an Unrestricted Stock Award under the Plan. Unrestricted Stock Awards may be granted in respect of past services or other valid consideration, or
in lieu of cash compensation due to such grantee. 

SECTION 10.    CASH-BASED AWARDS 

        Grant of Cash-based Awards.    The Administrator may, in its sole discretion, grant Cash-based Awards to
any grantee in such number or amount and upon such terms, and subject to such conditions, as the Administrator shall determine at the time of grant. The Administrator shall determine the maximum
duration of the Cash-based Award, the amount of cash to which the Cash-based Award pertains, the conditions upon which the Cash-based Award shall become vested or
payable, and such other provisions as the Administrator shall determine. Each Cash-based Award shall specify a cash-denominated payment amount, formula or payment ranges as
determined by the Administrator. Payment, if any, with respect to a Cash-based Award shall be made in accordance with the terms of the Award and may be made in cash or in shares of Stock,
as the Administrator determines. 

SECTION 11.    DIVIDEND EQUIVALENT RIGHTS 

        (a)    Dividend Equivalent Rights.    A Dividend Equivalent Right may be granted hereunder to any grantee as a
component of another Award or as a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Agreement. Dividend equivalents credited to the holder of
a Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at
Fair Market Value on the date of reinvestment or such other price as may then apply under a dividend reinvestment plan sponsored by the Company, if any. Dividend Equivalent Rights may be settled in
cash or shares of Stock or a combination thereof, in a single installment or installments. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend Equivalent
Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under
the same conditions as such other Award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other Award. 

        (b)    Interest Equivalents.    Any Award under this Plan that is settled in whole or in part in cash on a deferred
basis may provide in the grant for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may
be specified by the grant. 

        (c)    Termination.    Except as may otherwise be provided by the Administrator either in the Award Agreement or,
subject to Section 16 below, in writing after the Award Agreement is issued, a grantee's rights in all Dividend Equivalent Rights or interest equivalents granted as a component of another Award
that has not vested shall automatically terminate upon the grantee's termination of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason. 

10

 

SECTION 12.    TRANSFERABILITY OF AWARDS 

        (a)    Transferability.    Except as provided in Section 12(b) below, during a grantee's lifetime, his or her
Awards shall be exercisable only by the grantee, or by the grantee's legal representative or guardian in the event of the grantee's incapacity. No Awards shall be sold, assigned, transferred or
otherwise encumbered or disposed of by a grantee other than by will or by the laws of descent and distribution. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of
any kind, and any purported transfer in violation hereof shall be null and void. 

        (b)    Administrator Action.    Notwithstanding Section 12(a), the Administrator, in its discretion, may
provide either in the Award Agreement regarding a given Award or by subsequent written approval that the grantee (who is an employee or director) may transfer his or her Awards (other than any
Incentive Stock Options) to his or her immediate family members, to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that
the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award. 

        (c)    Family Member.    For purposes of Section 12(b), "family member" shall mean a grantee's child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any
person sharing the grantee's household (other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the beneficial interest, a foundation
in which these persons (or the grantee) control the management of assets, and any other entity in which these persons (or the grantee) own more than 50 percent of the voting interests. 

        (d)    Designation of Beneficiary.    Each grantee to whom an Award has been made under the Plan may designate a
beneficiary or beneficiaries to exercise any Award or receive any payment under any Award
payable on or after the grantee's death. Any such designation shall be on a form provided for that purpose by the Administrator and shall not be effective until received by the Administrator. If no
beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee's estate. 

SECTION 13.    TAX WITHHOLDING 

        (a)    Payment by Grantee.    Each grantee shall, no later than the date as of which the value of an Award or of any
Stock or other amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the
Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to such income. The Company and its Subsidiaries shall, to
the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company's obligation to deliver evidence of book entry (or stock
certificates) to any grantee is subject to and conditioned on tax withholding obligations being satisfied by the grantee. 

        (b)    Payment in Stock.    Subject to approval by the Administrator, a grantee may elect to have the Company's
minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued pursuant to any Award a number of shares with an
aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 

11

 

SECTION 14.    ADDITIONAL CONDITIONS APPLICABLE TO NONQUALIFIED DEFERRED COMPENSATION UNDER SECTION 409A. 

        In
the event any Stock Option or Stock Appreciation Right under the Plan is materially modified and deemed a new grant at a time when the Fair Market Value exceeds the exercise price, or
any other Award is otherwise determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A (a "409A Award"), the following additional conditions shall apply
and shall supersede any contrary provisions of this Plan or the terms of any agreement relating to such 409A Award. 

        (a)    Exercise and Distribution.    Except as provided in Section 14(b) hereof, no 409A Award shall be
exercisable or distributable earlier than upon one of the following: 

        (i)    Specified Time.    A specified time or a fixed schedule set forth in the written instrument evidencing the 409A
Award. 

        (ii)    Separation from Service.    Separation from service (within the meaning of Section 409A) by the 409A
Award grantee; provided, however, that if the 409A Award grantee is a "key employee" (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof) and any of
the Company's Stock is publicly traded on an established securities market or otherwise, exercise or distribution under this Section 14(a)(ii) may not be made before the date that is six
months after the date of separation from service. 

        (iii)    Death.    The date of death of the 409A Award grantee. 

        (iv)    Disability.    The date the 409A Award grantee becomes disabled (within the meaning of
Section 14(c)(ii) hereof). 

        (v)    Unforeseeable Emergency.    The occurrence of an unforeseeable emergency (within the meaning of
Section 14(c)(iii) hereof), but only if the net value (after payment of the exercise price) of the number of shares of Stock that become issuable does not exceed the amounts necessary to
satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the exercise, after taking into account the extent to which the emergency is or may be relieved through
reimbursement or compensation by insurance or otherwise or by liquidation of the grantee's other assets (to the extent such liquidation would not itself cause severe financial hardship). 

        (vi)    Change in Control Event.    The occurrence of a Change in Control Event (within the meaning of
Section 14(c)(i) hereof), including the Company's discretionary exercise of the right to accelerate vesting of such grant upon a Change in Control Event or to terminate the Plan or any
409A Award granted hereunder within 12 months of the Change in Control Event. 

        (b)    No Acceleration.    A 409A Award may not be accelerated or exercised prior to the time specified in
Section 14(a) hereof, except in the case of one of the following events: 

        (i)    Domestic Relations Order.    The 409A Award may permit the acceleration of the exercise or distribution time or
schedule to an individual other than the grantee as may be necessary to comply with the terms of a domestic relations order (as defined in Section 414(p)(1)(B) of the Code). 

        (ii)    Conflicts of Interest.    The 409A Award may permit the acceleration of the exercise or distribution time or
schedule as may be necessary to comply with the terms of a certificate of divestiture (as defined in Section 1043(b)(2) of the Code). 

        (iii)    Change in Control Event.    The Administrator may exercise the discretionary right to accelerate the vesting
of such 409A Award upon a Change in Control Event or to terminate the Plan or any 409A Award granted thereunder within 12 months of the Change in Control Event and cancel the 409A Award for
compensation. 

12

 

        (c)    Definitions.    Solely for purposes of this Section 14 and not for other purposes of the Plan, the
following terms shall be defined as set forth below: 

        (i)    "Change
in Control Event" means the occurrence of a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of
a substantial portion of the assets of the Company (as defined in Section 1.409A-3(g) of the proposed regulations promulgated under Section 409A by the Department of the
Treasury on September 29, 2005 or any subsequent guidance). 

        (ii)    "Disabled"
means a grantee who (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of
not less than three months under an accident and health plan covering employees of the Company or its Subsidiaries. 

        (iii)    "Unforeseeable
Emergency" means a severe financial hardship to the grantee resulting from an illness or accident of the grantee, the grantee's spouse, or a dependent
(as defined in Section 152(a) of the Code) of the grantee, loss of the grantee's property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the grantee. 

SECTION 15.    TRANSFER, LEAVE OF ABSENCE, ETC. 

        For
purposes of the Plan, the following events shall not be deemed a termination of employment: 

        (a)   a
transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or 

        (b)   an
approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee's right to re-employment is
guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Administrator otherwise so provides in writing. 

SECTION 16.    AMENDMENTS AND TERMINATION 

        The
Board may, at any time, amend or discontinue the Plan and the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or
for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder's consent. Except as provided in Section 3(b) or 3(c), in no event
may the Administrator exercise its discretion to reduce the exercise price of outstanding Stock Options or Stock Appreciation Rights or effect repricing through cancellation and re-grants.
Any material Plan amendments (other than amendments that curtail the scope of the Plan), including any Plan amendments that (i) increase the number of shares reserved for issuance under the
Plan, (ii) expand the type of Awards available under, materially expand the eligibility to participate in, or materially extend the term of, the Plan, or (iii) materially change the
method of determining Fair Market Value, shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders. In addition, to the extent determined by the
Administrator to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code or to ensure that compensation earned under
Awards qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of
stockholders. Nothing in this Section 16 shall limit the Administrator's authority to take any action permitted pursuant to Section 3(c). 

13

 

SECTION 17.    STATUS OF PLAN 

        With
respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have no rights
greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Administrator
may authorize the creation of trusts or other arrangements to meet the Company's obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such
trusts or other arrangements is consistent with the foregoing sentence. 

SECTION 18.    GENERAL PROVISIONS 

        (a)    No Distribution.    The Administrator may require each person acquiring Stock pursuant to an Award to represent
to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. 

        (b)    Delivery of Stock Certificates.    Stock certificates to grantees under this Plan shall be deemed delivered for
all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee's last known address on
file with the Company. Uncertificated Stock shall be deemed delivered for all purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail
(with proof of receipt) or by United States mail, addressed to the grantee, at the grantee's last known address on file with the Company, notice of issuance and recorded the issuance in its records
(which may include electronic "book entry" records). Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock
pursuant to the exercise of any Award, unless and until the Board has determined, with advice of counsel (to the extent the Board deems such advice necessary or advisable), that the issuance and
delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are
listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall be subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or
advisable to comply with federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted or traded. The Administrator may place
legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the terms and conditions provided herein, the Board may require that an individual make such
reasonable covenants, agreements, and representations as the Board, in its discretion, deems necessary or advisable in order to comply with any such laws, regulations, or requirements. The
Administrator shall have the right to require any individual to comply with any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period
limitation, as may be imposed in the discretion of the Administrator. 

        (c)    Stockholder Rights.    Until Stock is deemed delivered in accordance with Section 18(b), no right to
vote or receive dividends or any other rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding the exercise of a Stock Option or
any other action by the grantee with respect to an Award. 

        (d)    Other Compensation Arrangements; No Employment Rights.    Nothing contained in this Plan shall prevent the
Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this
Plan and the grant of Awards do not confer upon any employee any right to continued employment with the Company or any Subsidiary. 

14

 

        (e)    Trading Policy Restrictions.    Option exercises and other Awards under the Plan shall be subject to such
Company's insider trading policy and procedures, as in effect from time to time. 

        (f)    Forfeiture of Awards under Sarbanes-Oxley Act.    If the Company is required to prepare an accounting
restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any grantee who is one of the
individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any Award received by such individual under the
Plan during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document
embodying such financial reporting requirement. 

SECTION 19.    EFFECTIVE DATE OF PLAN 

        This
Plan shall become effective upon approval by the holders of a majority of the votes cast at a meeting of stockholders at which a quorum is present or pursuant to written consent. No
grants of Stock Options and other Awards may be made hereunder after the tenth anniversary of the Effective Date and no grants of Incentive Stock Options may be made hereunder after the tenth
anniversary of the date the Plan is approved by the Board. 

SECTION 20.    GOVERNING LAW 

        This
Plan and all Awards and actions taken thereunder shall be governed by, and construed in accordance with, the laws of Delaware, applied without regard to conflict of law principles. 

DATE
APPROVED BY BOARD OF DIRECTORS: ______________, 2007 

DATE
APPROVED BY STOCKHOLDERS: ______________, 2007 

15

INCENTIVE STOCK OPTION AGREEMENT

UNDER THE HELICOS BIOSCIENCES CORPORATION

2007 STOCK OPTION AND INCENTIVE PLAN 

	Name of Optionee:	 	
	 	 
	No. of Option Shares:	 	
	 	 
	Option Exercise Price per Share: $	 	
	 	 
	
[FMV on Grant Date (110% of FMV if a 10% owner)]	
 	

 
	

Grant Date:	
 	

	
 	

 
	Vesting Start Date:	 	
	 	 
	Expiration Date: Ten Years from Grant Date [5 years if 10% owner]	 	 

        Pursuant
to the Helicos BioSciences Corporation 2007 Stock Option and Incentive Plan as amended through the date hereof (the "Plan"), Helicos BioSciences Corporation (the "Company")
hereby grants to the Optionee named above an option (the "Stock Option") to purchase on or prior to the Expiration Date specified above all or part of the number of shares of Common Stock, par value
$0.001 per share (the "Stock"), of the Company specified above at the Option Exercise Price per Share specified above subject to the terms and conditions set forth herein and in the Plan. 

        1.    Exercisability Schedule.    No portion of this Stock Option may be exercised until such portion shall have
become exercisable. Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule hereunder, this
Stock Option shall be exercisable with respect to the following number of Option Shares on the dates indicated: 

	Incremental Number of

Option Shares Exercisable
	 	Exercisability Date

	25% of Shares	 	One year from Vesting Start Date
	An additional 2.0833333% of the Shares	 	The first business day of each month following the first anniversary of the Vesting Start Date.

[Note that for ISOs, Option Shares for no more than

$100,000 may become exercisable per year.]  

        Once
exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of
the Plan. 

        2.    Manner of Exercise.    

        (a)    The
Optionee may exercise this Stock Option only in the following manner: from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may
give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice. This notice shall specify the number of Option
Shares to be purchased. 

        Payment
of the purchase price for the Option Shares may be made by one or more of the following methods: (i) in cash, by certified or bank check or other instrument acceptable to
the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by
the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee
delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the
Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures
and enter into 

 

such
agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or (iv) a combination of (i), (ii) and
(iii) above. Payment instruments will be received subject to collection. 

        The
transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company's receipt from the Optionee of the
full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and
(iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise
of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations. In the event the Optionee chooses to pay the purchase price
by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the shares attested
to. 

        (b)    The
shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon
compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such issuance and with the requirements hereof and of the Plan. The
determination of the Administrator as to such compliance shall be final and binding on the Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have
transferred the shares to the Optionee, and the Optionee's name shall have been entered as the stockholder of record on the books of the Company. Thereupon, the Optionee shall have full voting,
dividend and other ownership rights with respect to such shares of Stock. 

        (c)    The
minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to
which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time. 

        (d)    Notwithstanding
any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof. 

        3.    Termination of Employment.    If the Optionee's employment by the Company or a Subsidiary (as defined in the
Plan) is terminated, the period within which to exercise the Stock Option may be subject to earlier termination as set forth below. 

        (a)    Termination Due to Death.    If the Optionee's employment terminates by reason of the Optionee's death, any
portion of this Stock Option outstanding on such date shall become fully exercisable and may thereafter be exercised by the Optionee's legal representative or legatee for a period of 12 months
from the date of death or until the Expiration Date, if earlier. 

        (b)    Termination Due to Disability.    If the Optionee's employment terminates by reason of the Optionee's
disability (as determined by the Administrator), any portion of this Stock Option outstanding on such date shall become fully exercisable and may thereafter be exercised by the Optionee for a period
of 12 months from the date of termination or until the Expiration Date, if earlier. 

        (c)    Termination for Cause.    If the Optionee's employment terminates for Cause, any portion of this Stock Option
outstanding on such date shall terminate immediately and be of no further force and effect. For purposes hereof, "Cause" shall mean, unless otherwise provided in an employment agreement between the
Company and the Optionee, a determination by the Administrator that the Optionee shall be dismissed as a result of (i) any material breach by the Optionee of any agreement between the Optionee
and the Company; (ii) the conviction of, indictment for or plea of nolo 

2

 

contendere
by the Optionee to a felony or a crime involving moral turpitude; or (iii) any material misconduct or willful and deliberate non-performance (other than by reason of
disability) by the Optionee of the Optionee's duties to the Company. 

        (d)    Other Termination.    If the Optionee's employment terminates for any reason other than the Optionee's death,
the Optionee's disability, or Cause, and unless otherwise determined by the Administrator, any portion of this Stock Option outstanding on such date may be exercised, to the extent exercisable on the
date of termination, for a period of three months from the date of termination or until the Expiration Date, if earlier. Any portion of this Stock Option that is not exercisable on the date of
termination shall terminate immediately and be of no further force or effect. 

        The
Administrator's determination of the reason for termination of the Optionee's employment shall be conclusive and binding on the Optionee and his or her representatives or legatees. 

        4.    Incorporation of Plan.    Notwithstanding anything herein to the contrary, this Stock Option shall be subject to
and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the
meaning specified in the Plan, unless a different meaning is specified herein. 

        5.    Transferability.    This Agreement is personal to the Optionee, is non-assignable and is not
transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution. This Stock Option is exercisable, during the Optionee's lifetime, only by the
Optionee, and thereafter, only by the Optionee's legal representative or legatee. 

        6.    Status of the Stock Option.    This Stock Option is intended to qualify as an "incentive stock option" under
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), but the Company does not represent or warrant that this Stock Option qualifies as such. The Optionee should consult
with his or her own tax advisors regarding the tax effects of this Stock Option and the requirements necessary to obtain favorable income tax treatment under Section 422 of the Code, including,
but not limited to, holding period requirements. To the extent any portion of this Stock Option does not so qualify as an "incentive stock option," such portion shall be deemed to be a
non-qualified stock option. If the Optionee intends to dispose or does dispose (whether by sale, gift, transfer or otherwise) of any Option Shares within the one-year period
beginning on the date after the transfer of such shares to him or her, or within the two-year period beginning on the day after the grant of this Stock Option, he or she will so notify the
Company within 30 days after such disposition. 

        7.    Tax Withholding.    The Optionee shall, not later than the date as of which the exercise of this Stock Option
becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to
be withheld on account of such taxable event. The Optionee may elect to have the minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from
shares of Stock to be issued a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due. 

        8.    No Obligation to Continue Employment.    Neither the Company nor any Subsidiary is obligated by or as a result
of the Plan or this Agreement to continue the Optionee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the
employment of the Optionee at any time. 

        9.    Notices.    Notices hereunder shall be mailed or delivered to the Company at its principal place of business and
shall be mailed or delivered to the Optionee at the address on file with the Company 

3

 

or,
in either case, at such other address as one party may subsequently furnish to the other party in writing. 

	 	 	 	 	HELICOS BIOSCIENCES CORPORATION
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Title:

        The
foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned. 

	Dated:	 	 	 	 	 	 
	 	 	
	 	
 Optionee's Signature
	

 	
 	

 	
 	

Optionee's name and address:
	

 	
 	

 	
 	

	 	 	 	 	

	 	 	 	 	

4

NON-QUALIFIED STOCK OPTION AGREEMENT FOR COMPANY EMPLOYEES

UNDER THE HELICOS BIOSCIENCES CORPORATION

2007 STOCK OPTION AND INCENTIVE PLAN 

	Name of Optionee:	 	
	 	 
	No. of Option Shares:	 	
	 	 
	Option Exercise Price per Share: $	 	
	 	 
	
[FMV on Grant Date	
 	

 
	

Grant Date:	
 	

	
 	

 
	Vesting Start Date:	 	
	 	 
	Expiration Date: Ten Years from Grant Date	 	 

        Pursuant
to the Helicos Biosciences Corporation 2007 Stock Option and Incentive Plan as amended through the date hereof (the "Plan"), Helicos Biosciences Corporation (the "Company")
hereby grants to the Optionee named above an option (the "Stock Option") to purchase on or prior to the Expiration Date specified above all or part of the number of shares of Common Stock, par value
$0.001 per share (the "Stock") of the Company specified above at the Option Exercise Price per Share specified above subject to the terms and conditions set forth herein and in the Plan. This Stock
Option is not intended to be an "incentive stock option" under Section 422 of the Internal Revenue Code of 1986, as amended. 

        1.    Exercisability Schedule.    No portion of this Stock Option may be exercised until such portion shall have
become exercisable. Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule hereunder, this
Stock Option shall be exercisable with respect to the following number of Option Shares on the dates indicated: 

	Incremental Number of

Option Shares Exercisable
	 	Exercisability Date

	25% of Shares	 	One year from Vesting Start Date
	An additional 2.0833333% of the Shares	 	The first business day of each month following the first anniversary of the Vesting Start Date.

        Once
exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of
the Plan. 

        2.    Manner of Exercise.    

        (a)    The
Optionee may exercise this Stock Option only in the following manner: from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may
give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice. This notice shall specify the number of Option
Shares to be purchased. 

        Payment
of the purchase price for the Option Shares may be made by one or more of the following methods: (i) in cash, by certified or bank check or other instrument acceptable to
the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by
the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee
delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the
Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition 

 

of
such payment procedure; or (iv) a combination of (i), (ii) and (iii) above. Payment instruments will be received subject to collection. 

        The
transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company's receipt from the Optionee of the
full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and
(iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise
of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations. In the event the Optionee chooses to pay the purchase price
by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested
to. 

        (b)    The
shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon
compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such issuance and with the requirements hereof and of the Plan. The
determination of the Administrator as to such compliance shall be final and binding on the Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have
transferred the shares to the Optionee, and the Optionee's name shall have been entered as the stockholder of record on the books of the Company. Thereupon, the Optionee shall have full voting,
dividend and other ownership rights with respect to such shares of Stock. 

        (c)    The
minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to
which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time. 

        (d)    Notwithstanding
any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof. 

        3.    Termination of Employment.    If the Optionee's employment by the Company or a Subsidiary (as defined in the
Plan) is terminated, the period within which to exercise the Stock Option may be subject to earlier termination as set forth below. 

        (a)    Termination Due to Death.    If the Optionee's employment terminates by reason of the Optionee's death, any
portion of this Stock Option outstanding on such date shall become fully exercisable and
may thereafter be exercised by the Optionee's legal representative or legatee for a period of 12 months from the date of death or until the Expiration Date, if earlier. 

        (b)    Termination Due to Disability.    If the Optionee's employment terminates by reason of the Optionee's
disability (as determined by the Administrator), any portion of this Stock Option outstanding on such date shall become fully exercisable and may thereafter be exercised by the Optionee for a period
of 12 months from the date of termination or until the Expiration Date, if earlier. 

        (c)    Termination for Cause.    If the Optionee's employment terminates for Cause, any portion of this Stock Option
outstanding on such date shall terminate immediately and be of no further force and effect. For purposes hereof, "Cause" shall mean, unless otherwise provided in an employment agreement between the
Company and the Optionee, a determination by the Administrator that the Optionee shall be dismissed as a result of (i) any material breach by the Optionee of any agreement between the Optionee
and the Company; (ii) the conviction of, indictment for or plea of nolo contendere by the Optionee to a felony or a crime involving moral turpitude; or (iii) any material 

2

 

misconduct
or willful and deliberate non-performance (other than by reason of disability) by the Optionee of the Optionee's duties to the Company. 

        (d)    Other Termination.    If the Optionee's employment terminates for any reason other than the Optionee's death,
the Optionee's disability or Cause, and unless otherwise determined by the Administrator, any portion of this Stock Option outstanding on such date may be exercised, to the extent exercisable on the
date of termination, for a period of three months from the date of termination or until the Expiration Date, if earlier. Any portion of this Stock Option that is not exercisable on the date of
termination shall terminate immediately and be of no further force or effect. 

        The
Administrator's determination of the reason for termination of the Optionee's employment shall be conclusive and binding on the Optionee and his or her representatives or legatees. 

        4.    Incorporation of Plan.    Notwithstanding anything herein to the contrary, this Stock Option shall be subject to
and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the
meaning specified in the Plan, unless a different meaning is specified herein. 

        5.    Transferability.    This Agreement is personal to the Optionee, is non-assignable and is not
transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution. This Stock Option is exercisable, during the Optionee's lifetime, only by the
Optionee, and thereafter, only by the Optionee's legal representative or legatee. 

        6.    Tax Withholding.    The Optionee shall, not later than the date as of which the exercise of this Stock Option
becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to
be withheld on account of such taxable event. The Optionee may elect to have the minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from
shares of Stock to be issued a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due. 

        7.    No Obligation to Continue Employment.    Neither the Company nor any Subsidiary is obligated by or as a result
of the Plan or this Agreement to continue the Optionee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the
employment of the Optionee at any time. 

        8.    Notices.    Notices hereunder shall be mailed or delivered to the Company at its principal place of business and
shall be mailed or delivered to the Optionee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing. 

	 	 	 	 	HELICOS BIOSCIENCES CORPORATION
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Title:

3

 

        The
foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned. 

	Dated:	 	 	 	 	 	 
	 	 	
	 	
 Optionee's Signature
	

 	
 	

 	
 	

Optionee's name and address:
	

 	
 	

 	
 	

	 	 	 	 	

	 	 	 	 	

4

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE HELICOS BIOSCIENCES CORPORATION

2007 STOCK OPTION AND INCENTIVE PLAN 

	Name of Grantee:	 	
	 	 
	No. of Shares:	 	
	 	 
	Grant Date:	 	
	 	 
	Vesting Start Date:	 	
	 	 
	Final Acceptance Date:	 	
	 	 

        Pursuant
to the Helicos BioSciences Corporation 2007 Stock Option and Incentive Plan (the "Plan") as amended through the date hereof, Helicos BioSciences Corporation (the "Company")
hereby grants a Restricted Stock Award (an "Award") to the Grantee named above. Upon acceptance of this Award, the Grantee shall receive the number of shares of Common Stock, par value $0.001 per
share (the "Stock") of the Company specified above, subject to the restrictions and conditions set forth herein and in the Plan. The Company acknowledges the receipt from the Grantee of consideration
with respect to the par value of the Stock in the form of cash, past or future services rendered to the Company by the Grantee or such other form of consideration as is acceptable to the
Administrator. 

        1.    Acceptance of Award.    The Grantee shall have no rights with respect to this Award unless he or she shall have
accepted this Award prior to the close of business on the Final Acceptance Date specified above by (i) signing and delivering to the Company a copy of this Award Agreement, and
(ii) delivering to the Company a stock power endorsed in blank. Upon acceptance of this Award by the Grantee, the shares of Restricted Stock so accepted shall be issued and held by the
Company's transfer agent in book entry form, and the Grantee's name shall be entered as the stockholder of record on the books of the Company. Thereupon, the Grantee shall have all the rights of a
stockholder with respect to such shares, including voting and dividend rights, subject, however, to the restrictions and conditions specified in Paragraph 2 below. 

        2.    Restrictions and Conditions.    

        (a)    Any
book entries for the shares of Restricted Stock granted herein shall bear an appropriate legend, as determined by the Administrator in its sole discretion, to the
effect that such shares are subject to restrictions as set forth herein and in the Plan. 

        (b)    Shares
of Restricted Stock granted herein may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting. 

        (c)    If
the Grantee's employment with the Company and its Subsidiaries is voluntarily or involuntarily terminated for any reason (including death) prior to vesting of shares
of Restricted Stock granted herein, all unvested shares of Restricted Stock shall immediately and automatically be forfeited and returned to the Company. 

        3.    Vesting of Restricted Stock.    The restrictions and conditions in Paragraph 2 of this Agreement shall
lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains an employee of the Company or a Subsidiary on such Dates. If a series of Vesting Dates is
specified, then the restrictions and conditions in Paragraph 2 shall lapse only with respect to the number of shares of Restricted Stock specified as vested on such date. 

	Shares Vested

Number of
	 	Vesting Date

	25% of Shares

An additional 2.0833333% of the Shares	 	One year from Vesting Start Date

The first business day of each month following the first anniversary of the Vesting Start Date.

 

        Subsequent
to such Vesting Date or Dates, the shares of Stock on which all restrictions and conditions have lapsed shall no longer be deemed Restricted Stock. The Administrator may at
any time accelerate the vesting schedule specified in this Paragraph 3. 

        4.    Dividends.    Dividends on Shares of Restricted Stock shall be paid currently to the Grantee. 

        5.    Incorporation of Plan.    Notwithstanding anything herein to the contrary, this Agreement shall be subject to
and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the
meaning specified in the Plan, unless a different meaning is specified herein. 

        6.    Transferability.    This Agreement is personal to the Grantee, is non-assignable and is not
transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution. 

        7.    Tax Withholding.    The Grantee shall, not later than the date as of which the receipt of this Award becomes a
taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be
withheld on account of such taxable event. Except in the case where an election is made pursuant to Paragraph 8 below, the Grantee may elect to have the required minimum tax withholding
obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued or released by the transfer agent a number of shares of Stock with an aggregate Fair
Market Value that would satisfy the withholding amount due. 

        8.    Election Under Section 83(b).    The Grantee and the Company hereby agree that the Grantee may, within
30 days following the acceptance of this Award as provided in Paragraph 1 hereof, file with the Internal Revenue Service and the Company an election under Section 83(b) of the
Internal Revenue Code. In the event the Grantee makes such an election, he or she agrees to provide a copy of the election to the Company. 

        9.    No Obligation to Continue Employment.    Neither the Company nor any Subsidiary is obligated by or as a result
of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the
employment of the Grantee at any time. 

        10.    Notices.    Notices hereunder shall be mailed or delivered to the Company at its principal place of business
and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing. 

	 	 	 	 	HELICOS BIOSCIENCES CORPORATION
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Title:

2

 

        The
foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned. 

	Dated:	 	 	 	 	 	 
	 	 	
	 	
 Optionee's Signature
	

 	
 	

 	
 	

Optionee's name and address:
	

 	
 	

 	
 	

	 	 	 	 	

	 	 	 	 	

3

NON-QUALIFIED STOCK OPTION AGREEMENT

FOR NON-EMPLOYEE DIRECTORS

UNDER THE HELICOS BIOSCIENCES CORPORATION

2007 STOCK OPTION AND INCENTIVE PLAN 

	Name of Optionee:	 	
	 	 
	No. of Option Shares:	 	
	 	 
	Option Exercise Price per Share: $	 	
	 	 
	
[FMV on Grant Date]	
 	

 
	

Grant Date:	
 	

	
 	

 
	Vesting Start Date:	 	
	 	 
	Expiration Date: Ten Years from Grant Date	 	 

        Pursuant
to the Helicos Biosciences Corporation 2007 Stock Option and Incentive Plan as amended through the date hereof (the "Plan"), Helicos Biosciences Corporation (the "Company")
hereby grants to the Optionee named above, who is a Director of the Company but is not an employee of the Company, an option (the "Stock Option") to purchase on or prior to the Expiration Date
specified above all or part of the number of shares of Common Stock, par value $0.001 per share (the "Stock"), of the Company specified above at the Option Exercise Price per Share specified above
subject to the terms and conditions set forth herein and in the Plan. This Stock Option is not intended to be an "incentive stock option" under Section 422 of the Internal Revenue Code of 1986,
as amended. 

        1.    Exercisability Schedule.    No portion of this Stock Option may be exercised until such portion shall have
become exercisable. Except as set forth below, and subject to the discretion of the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule hereunder, this
Stock Option shall be exercisable with respect to the following number of Option Shares on the dates indicated: 

	Incremental Number of

Option Shares Exercisable
	 	Exercisability Date

	100% of Shares	 	One year from Vesting Start Date

        In
the event of the termination of the Optionee's service as a director of the Company because of death, this Stock Option shall become immediately exercisable in full, whether or not
exercisable at such time. Once exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions
hereof and of the Plan. 

        2.    Manner of Exercise.    

        (a)    The
Optionee may exercise this Stock Option only in the following manner: from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may
give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice. This notice shall specify the number of Option
Shares to be purchased. 

        Payment
of the purchase price for the Option Shares may be made by one or more of the following methods: (i) in cash, by certified or bank check or other instrument acceptable to
the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by
the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee
delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the
Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures
and enter into 

 

such
agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; or (iv) a combination of (i), (ii) and
(iii) above. Payment instruments will be received subject to collection. 

        The
transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company's receipt from the Optionee of the
full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and
(iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise
of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations. In the event the Optionee chooses to pay the purchase price
by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested
to. 

        (b)    The
shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon
compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such transfer and with the requirements hereof and of the Plan. The
determination of the Administrator as to such compliance shall be final and binding on the Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have
transferred the shares to the Optionee, and the Optionee's name shall have been entered as the stockholder of record on the books of the Company. Thereupon, the Optionee shall have full voting,
dividend and other ownership rights with respect to such shares of Stock. 

        (c)    The
minimum number of shares with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to
which this Stock Option is being exercised is the total number of shares subject to exercise under this Stock Option at the time. 

        (d)    Notwithstanding
any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof. 

        3.    Termination as Director.    If the Optionee ceases to be a Director of the Company, the period within which to
exercise the Stock Option may be subject to earlier termination as set forth below. 

        (a)    Termination by Reason of Death.    If the Optionee ceases to be a Director by reason of the Optionee's death,
any portion of this Stock Option outstanding on such date may be exercised by his or her legal
representative or legatee for a period of 12 months from the date of death or until the Expiration Date, if earlier. 

        (b)    Other Termination.    If the Optionee ceases to be a Director for any reason other than the Optionee's death,
any portion of this Stock Option outstanding on such date may be exercised for a period of 12 months from the date of termination or until the Expiration Date, if earlier. 

        4.    Incorporation of Plan.    Notwithstanding anything herein to the contrary, this Stock Option shall be subject to
and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the
meaning specified in the Plan, unless a different meaning is specified herein. 

        5.    Transferability.    This Agreement is personal to the Optionee, is non-assignable and is not
transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution. This Stock Option is exercisable, during the Optionee's lifetime, only by the
Optionee, and thereafter, only by the Optionee's legal representative or legatee. 

2

 

        6.    No Obligation to Continue as a Director.    Neither the Plan nor this Stock Option confers upon the Optionee any
rights with respect to continuance as a Director. 

        7.    Notices.    Notices hereunder shall be mailed or delivered to the Company at its principal place of business and
shall be mailed or delivered to the Optionee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing. 

        8.    Amendment.    Pursuant to Section 16 of the Plan, the Administrator may at any time amend or cancel any
outstanding portion of this Stock Option, but no such action may be taken that adversely affects the Optionee's rights under this Agreement without the Optionee's consent. 

	 	 	 	 	HELICOS BIOSCIENCES CORPORATION
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	
 Title:

        The
foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned. 

	Dated:	 	 	 	 	 	 
	 	 	
	 	
 Optionee's Signature
	

 	
 	

 	
 	

Optionee's name and address:
	

 	
 	

 	
 	

	 	 	 	 	

	 	 	 	 	

3Filed by Automated Filing Services Inc. (604) 609-0244 - Sun Cal Energy Corp. - Exhibit 10.1

CONSULTANT AGREEMENT 

THIS AGREEMENT effective as of the First day of
May, 2007 (the “Effective Date”): 

BETWEEN: 

  
    
      SUN CAL ENERGY INC., a Nevada corporation, with
        an office at #700 – 205 5th Avenue S.W., Calgary, AB T2P
        2V7 

      (the “Company”) 

    

  

AND: 

  
    
      LEWIS DILLMAN DOING BUSINESS AS WESTERN
        EAGLE, #900 - 555 Burrard Street, Vancouver, BC, V7X 1M8 

      (the “Consultant”) 

    

  

WHEREAS: 

A.       
               
The Company is a public company called Sun Cal Energy Inc. (“SCEI”); 

B.      
                 
The Company is engaged in, among other things, the business of oil and gas
exploration; 

C.      
                 
The Company owns and utilizes various trade secrets and proprietary information
in connection with its business and is constantly developing and striving to
develop new trade secrets and proprietary information to allow it to maintain
and enhance its competitive position in its industry; 

D.       
                
The Consultant has certain skills and expertise, as represented to the Company
by the Consultant, which will benefit the Company; 

E.        
               
The Company wishes to obtain and the Consultant wishes to provide certain
services to the Company on the terms and conditions contained in this Agreement;

F.        
               
The Consultant will be placed in a position of authority and trust and will come
into contact with, or have access to certain trade secrets and/or confidential
information of and relating to the Company. All information disclosed to the
Consultant by the Company is done so in the context of a confidential
relationship between the Consultant and the Company; and

G.           
             The
Consultant would not be retained by the Company or be given access to work, or
contact with any such trade secrets and/or confidential information unless the
Consultant maintains any and all such trade secrets and/or confidential
information in the strictest of confidence. 

- 2 - 

THEREFORE THIS AGREEMENT WITNESSES that the parties AGREE AS
FOLLOWS: 

1.                       
 SERVICES, TERM, ETC. 

1.1                      
Services. The Consultant will perform those services customarily
performed by the Chief Executive Officer (“CEO”) of the Company and as
directed by board of directors (the “Services”). 

1.2                      
Equipment. The Consultant will provide its own equipment to perform the
Services except as otherwise set out in this Agreement. 

1.3                      
Facilities. The Company will be responsible for all necessary office
premises and basic office equipment including space, desk, telephone, signs, and
business cards.

1.4                      
Reporting. The Consultant will keep the Company informed of all matters
concerning the Consultant’s Services at such time and in such manner as the
board of directors of the Company may determine. 

1.5                      
Term and Termination. This Agreement will commence on the Effective Date
and will continue for a period of one year (the “Term”). Either party
will have the right to terminate this Agreement before the end of the Term
without cause: 

	 	(a) 	
      within the first six months of service by giving one
      day’s written notice of termination;

	 	 	 
	 	(b) 	
      after six months of service by giving one month’s written
      notice of termination or at the discretion of the Company, payment in lieu
      of notice (based on the Contract Rate, as defined below, for one month),
      or some combination thereof.

1.6                      
No Employment, No Authority to Bind, Etc. The Consultant and the Company
acknowledge and agree that nothing contained in this agreement will be
interpreted to constitute the Consultant as an employee or agent of the Company.
Neither the Consultant nor the Company have the authority, express or implied,
to bind the other in any respect and will not represent themselves as having
such authority, it being intended that the Consultant will be responsible for
its own actions. The Consultant is retained only for the purposes and to the
extent set out in this Agreement. 

1.7                      
Devotion of Time. The Consultant need only devote such portion of the
Consultant’s time as is necessary to complete the Services required. The
Consultant is not precluded from acting in any other capacity for any other
person, firm or Company provided that it does not conflict with the Consultant’s
duties to the Company.

2.                        
REMUNERATION 

2.1                      
Compensation. The Company will pay to the Consultant $7,000 (U.S.) per
month (the “Contract Rate”), payable at the end of each month upon
receipt of an invoice, which includes the date, month worked, and a general
description of the Services provided. The Contract Rate includes payment for
labour, equipment and supplies. 

- 3 - 

2.2                      
GST. The Contract Rate is inclusive of Goods and Services Tax
(“GST”). To the extent that the Consultant is required to collect and
remit GST, the Consultant will show the applicable GST amount as a separate line
item on the Consultant’s invoice for Services and provide to the Company the
Consultant’s GST registrant number. 

2.3                      
Signing Bonus. Upon acceptance by both parties, the Company agrees to
issue 250,000 restricted shares of the Company. Following one year of service,
the Company agrees to issue an additional 250,000 restricted shares of the
Company. 

2.4                      
Bonuses. The Company in its sole discretion, may choose to pay the
Consultant bonuses or other discretionary payments. 

2.5                      
Incentive Plans. The Company in its sole discretion, may choose to
provide the Consultant with short or long term incentive plans or other
discretionary investment opportunities, such as stock options. Any such
remuneration will be provided in accordance with the plan documents (i.e. share
purchase agreement). 

2.6                      
No Deductions. The Company will not make any statutory source deductions
from the compensation payable to the Consultant under this Agreement, such as,
but not limited to federal income tax, provincial income tax, Canada Pension
Plan and Employment Insurance. The Consultant is solely responsible for
withholding and remitting any local, provincial, or federal payroll-related
taxes or assessments related to performance of the Services.

2.7                      
No Benefits. The Consultant is not entitled to any benefits or privileges
that may be provided by the Company to its employees.

2.8                      
Expenses. The Company will pay the Consultant for all reasonable out of
pocket expenses incurred by the Consultant in carrying out the Services provided
they are pre-approved by the Company and individually listed as a separate line
item on the Consultant’s invoice for Services. 

3.                       
 GENERAL OBLIGATIONS 

3.1                      
WCB. The Consultant is solely responsible for the Consultant’s
registration and payment of assessments for coverage with the Workers
Compensation Board. If requested by the Company, proof of coverage must be
provided immediately. 

3.2                      
Indemnity of the Company. The Consultant agrees to indemnify the Company
from all losses, claims, actions, damages, charges, taxes, penalties,
assessments or demands (including reasonable legal fees and expenses) which may
be made by the Canada Revenue Agency, Employment Insurance Plan, the Canada
Pension Plan, the Workers Compensation Plan, or related plans or organizations
requiring the Company to pay an amount under the applicable statutes and
regulations in relation to any Services provided to the Company pursuant to this
Agreement.

3.3                      
Indemnity of the Consultant. The Company agrees to indemnify the
Consultant from all losses, claims, actions, damages, assessments or demands
(including reasonable legal fees and expenses) made against the Consultant which
result from the Consultant’s actions, 

- 4 - 

omission or negligence in the performance of the Services. The
Company will not indemnify the Consultant where the Consultant’s actions or
omissions are fraudulent. 

3.4                      
Company’s Policies. The Consultant is bound by the various policies of
the Company and notwithstanding that those policies may be varied from time to
time. If there is an express conflict between any such policies and this
Agreement, then this Agreement governs. 

3.5                      
Use of the Company’s Property. The Consultant must not save, retain or
store copies of any communications, documentation, records or files being the
rightful property of the Company in any form outside the office or on any
personal electronic device (i.e. ipod, PDA, cell phone, black berry, personal
computer, mass storage device, cd, etc.) for any reason unless expressly
permitted by the Company. 

3.6                      
Return of Company’s Property. Whenever requested by the Company and
immediately upon termination of this Agreement for any reason, the Consultant
will deliver to the Company all property belonging to the Company, including
without limitation any keys, security cards, passwords, devices, documents,
papers, plans, materials or other property, and any copies or reproductions
thereof, which may have come into the Consultant’s possession during the course
of the Consultant’s engagement by the Company. For greater certainty, any
communications or documentation transmitted by, received from, or stored in the
Company’s computer, email or voicemail systems, regardless of any personal
content, are the property of the Company.

3.7                      
Non-Solicitation. During the Term of this Agreement, the Consultant will
not: 

	 	(a) 	
      solicit or entice, or attempt to solicit or entice,
      either directly or indirectly, any supplier, employee, consultant,
      customer or prospective customer of the Company as at the date of
      termination of this Agreement, to become a supplier, employee, consultant,
      or customer of any business or enterprise that competes with the
      Company;

	 	 	 
	 	(b) 	
      solicit or entice, or attempt to solicit or entice,
      either directly or indirectly, any employee or consultant of the Company
      as at the date of termination of this Agreement, to become an employee or
      consultant of any business or enterprise that competes with the
      Company.

3.8                      
Not in Breach of Prior Agreements. The Consultant represents that his
performance of all the terms of this Agreement do not and will not breach any
fiduciary or other duty or any covenant, agreement or understanding (including
any agreement relating to any proprietary information, knowledge or data
acquired by the Consultant in confidence, trust or otherwise prior to the
Effective Date) to which the Consultant is a party or by the terms of which the
Consultant may be bound. The Consultant agrees that he will not disclose to the
Company, or induce the Company to use any proprietary information, knowledge or
data belonging to any previous Company or others. The Consultant further agrees
not to enter into any agreement or understanding, either written or oral, in
conflict with the provisions of this Agreement. 

- 5 - 

4.                       
 CONFIDENTIAL INFORMATION & INTELLECTUAL PROPERTY

4.1                      
Confidential Information. For purposes of this agreement, the term
“Confidential Information” means all of the following materials and
information (whether or not reduced to writing and whether or not patentable or
protectible by copyright) which the Consultant receives, received access to,
conceived or developed, in whole or part, directly or indirectly, in connection
with its relationship with the Company or in the course of providing the
Services to the Company (in any capacity, whether executive, managerial,
planning, technical, sales, research, development, manufacturing, engineering or
otherwise) or through the use of any of the Company’s facilities or resources:

	 	(a) 	
      business plans, strategies, tactics, policies,
      resolutions, patent applications, trademark applications, trade name
      applications and industrial design applications;

	 	 	 
	 	(b) 	
      litigation, negotiations or contractual
    arrangements;

	 	 	 
	 	(c) 	
      financial information, including but not limited to,
      cost, pricing, performance data, debt arrangements, equity structure,
      interests and holdings;

	 	 	 
	 	(d) 	
      operational and scientific information, including but not
      limited to, marketing, research techniques, exploration techniques, trade
      secrets, product specifications, data, data base information, know-how,
      methodologies, formulae, models, compositions, processes, improvements,
      devices, inventions, discoveries, concepts, ideas, designs, sketches,
      photographs, graphs, drawings, notes, samples, past, current and planned
      research and development, systems, structures and architectures and
      related processes (collectively, the “Works”);

	 	 	 
	 	(e) 	
      marketing information, including but not limited to,
      current and planned marketing activities, methods and processes, marketing
      strategies, advertising strategies, customer or client lists, current and
      anticipated customer or client requirements, price lists and
      methodologies, marketing research methodologies, market studies, sales and
      marketing plans and information concerning customers, clients or
      suppliers, and strategies for attracting and dealing with customers or
      clients, including information relevant to the design and implementation
      of marketing plans and advertising campaigns;

	 	 	 
	 	(f) 	
      personnel information, including but not limited to, the
      names and backgrounds of key personnel, personnel lists, resumés,
      personnel data, including information about compensation and benefits,
      organization structure, performance evaluations of personnel of the
      Company and personnel training techniques and materials;

	 	 	 
	 	(g) 	
      any and all information concerning the business and
      affairs of the Company which the Company treats as proprietary and
      confidential and which is not in the public domain;

	 	 	 
	 	(h) 	
      any other information, however documented, of the Company
      that is a trade secret under any applicable legislation or at common law;
      and

- 6 - 

	 	(i) 	
      all ideas which are derived from or related to the
      Consultant’s access to or knowledge of any of the above enumerated
      materials and information.

4.2                      
Failure to mark any of the Confidential Information as confidential, proprietary
or protected information does not affect its status as part of the Confidential
Information under the terms of this Agreement. 

4.3                      
For purposes of this Agreement, the information that would otherwise be
Confidential Information which is or becomes publicly available without breach
of: 

	 	(a) 	
      this Agreement;

	 	 	 
	 	(b) 	
      any other agreement or instrument to which the Company is
      a party or a beneficiary; or

	 	 	 
	 	(c) 	
      any duty owed to the Company by the Consultant or any
      third party;

  (“Available Information”) 

is not Confidential Information, provided, however, that the
Consultant acknowledges and agrees that if the Consultant seeks to disclose,
divulge, reveal, report, publish, transfer or use, for any purpose, any
Available Information, the Consultant bears the burden of proving that such
information is Available Information. 

4.4                      
Definition of Intellectual Property. For purposes of this Agreement, the
term “Intellectual Property” means all Works, trademarks, trademark
applications, patents, patent applications, copyright materials, trade names,
trade name applications, industrial designs, and applications to register
designs. 

4.5                      
Treatment of Information. The Consultant acknowledges that as a result of
his relationship with the Company, the Consultant may use, acquire or add to
Confidential Information or Intellectual Property. 

4.6                      
The Consultant will not at any time during or following the term of this
Agreement, directly or indirectly, disclose, divulge, reveal, report, publish,
transfer or use for any purpose any of the Confidential Information, except with
the prior written consent of the Company, or except if the Consultant is acting
as a Consultant of the Company solely for the benefit of the Company in
connection with the Company’s business and in accordance with the Company’s
business practices and policies. 

4.7           
           Disclosure of any
Confidential Information is not prohibited if the disclosure is directly
pursuant to a valid and existing order of a court or other governmental body or
agency within Canada or the United States of America; provided, however, that:

	 	(a) 	
      the Consultant will first have given prompt notice to the
      Company of any possible or prospective order (or proceeding pursuant to
      which any order may result); and

	 	 	 
	 	(b) 	
      the Company will have been afforded a reasonable
      opportunity to prevent or limit any
disclosure.

- 7 - 

4.8                      
Ownership of Information and Intellectual Property. Subject to Section
4.11, the Consultant acknowledges and agrees that all rights, title and interest
in any Confidential Information or Intellectual Property remains the exclusive
property of the Company. Accordingly, the Consultant specifically agrees and
acknowledges that it has no interest in the Confidential Information or
Intellectual Property, notwithstanding the fact that the Consultant may have
created or contributed to the creation of or its name or employee’s name is used
in association with such Confidential Information or Intellectual Property. 

4.9                      
Waiver of Moral Rights. The Consultant waives all moral rights to any
such Intellectual Property, including, but not limited to, the right to the
integrity of the Intellectual Property, the right to be associated with the
Intellectual Property as its author by name or under a pseudonym and the right
to remain anonymous. 

4.10                     
Disclosure of Intellectual Property. The Consultant will immediately
disclose to the Company all Intellectual Property developed in whole or in part
by the Consultant during the term of this Agreement and to assign to the Company
any right, title or interest the Consultant may have in the Intellectual
Property. The Consultant will execute any instruments and to do all other things
reasonably requested by the Company (both during and after termination of this
Agreement) in order to vest more fully in the Company all ownership rights in
those items transferred by it to the Company. 

4.11                     
Sections 4.5 to 4.10 do not apply in respect of any invention, copyrighted
material, trademarks, patents or other intellectual property, including
applications therefore, where: 

	 	(a) 	
      no equipment, supplies, facility, Confidential
      Information or Intellectual Property of the Company was used, which was
      developed entirely on the Consultant’s own time, and which does
  not:

	 	 	 	 
	 		(i) 	
      relate to the business of the Company;

	 	 	 	 
	 		(ii) 	
      relate to the Company’s actual or demonstrably
      anticipated processes, research or development; or

	 	 	 	 
	 		(iii) 	
      result from any work performed by the Consultant for the
      Company; or

	 	 	 	 
	 	(b) 	
      the Consultant owned or had an interest in, or were
      conceived of, created, or first reduced to practice, prior to his or her
      employment with the Company, provided they are listed by the Consultant
      and attached as a Schedule to this Agreement. The Company agrees to keep
      the Schedule in confidence.

4.12                     
Use of Consultant’s Name, Image, etc. The Company may use the
Consultant’s name, image, appearance, likeness and form, without limitation, in
connection with the Company, including but not limited to the creation,
development, production, manufacture, distribution, promotion and use of its
products and services, during the term of this Agreement and for a period of two
(2) years from the date of termination of this Agreement, regardless of whether
the termination is voluntary or involuntary.

- 8 - 

5.                        
MISCELLANEOUS 

5.1                      
Severability. If any provision of this Agreement is determined by a court
or tribunal of competent jurisdiction to be invalid, illegal or otherwise void
or unenforceable for any reason whatsoever, then such provision will be severed
from this Agreement and will not affect the validity of the remainder of this
Agreement and this Agreement will be construed as if such provision had never
been contained in this Agreement. All other provisions of this Agreement will,
nevertheless, remain in full force and effect and no provision will be deemed
dependent upon any other provision unless so expressed in this Agreement. 

5.2                      
Non-Waiver. The failure of either party to insist upon strict performance
of any of the terms and conditions of this Agreement will not be deemed a waiver
of any rights or remedies that either party has and will not be deemed a waiver
of any subsequent default of the terms and conditions of this Agreement. 

5.3                      
No Assignment by Consultant. The Consultant must not assign either this
Agreement or any benefit or interest granted by it without the prior written
consent of the Company. 

5.4                      
No Subcontracting by Consultant. The Consultant will not subcontract all
or any portion of the Services required to be performed under this Agreement
without prior written consent of the Company. 

5.5                      
Successors. This Agreement will operate to the benefit of and is binding
upon the Company and the Consultant and their respective heirs, executors,
administrators, successors and permitted assigns. 

5.6                      
Notices. Any notice required or permitted to be given to either party
must be delivered by hand or personally to the party’s address last known to the
other party and will be deemed to be received on the date of hand delivery or
personal delivery to such address. Personal delivery will include delivery by a
commercial courier. 

5.7                      
Survival. The Consultant’s obligations contained in Sections 1.5, 1.6,
2.6, 3.3, 3.4, 3.6 to 3.9 and 4 will survive termination of this Agreement. 

5.8                      
Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of British Columbia and the laws of Canada that may be
applicable. Any reference in this Agreement to:the Personal Information
Protection Act, means the Personal Information Protection Act, SBC
2003, C. 63 and includes any amendment, replacement or re-enactment or
subordinate legislation made in connection with the above legislation from
time-to-time. 

5.9                      
  Independent Legal Advice. The Consultant acknowledges that it has read
  and understands this Agreement, and acknowledges that it has had the opportunity
  to obtain independent legal advice with respect to it.

  5.10                     
  Seal. The parties adopt the mark as
  a seal and its placement next to a signature of a party is conclusive evidence
  that such party is bound by the terms of this Agreement without any further
  consideration. 

- 9 - 

5.11                     
Headings. The headings utilized in this Agreement have been inserted for
convenience of reference only and in no way define, limit, or enlarge the scope
or meaning of the provisions of this Agreement. 

5.12                      Execution
in Counterparts. This Agreement may be executed in several counterparts,
each of which will be deemed to be an original and all of which will together
constitute one and the same instrument. 

5.13                     
Entire Agreement. This Agreement and any documents and instruments
referred to in this Agreement contain the whole agreement between the Consultant
and the Company with respect to the Consultant’s engagement by the Company and
there are no representations, warranties, collateral terms or conditions,
express or implied, other than as set forth in this Agreement. This Agreement
supersedes any written or oral agreement or understanding between the Consultant
and the Company.

5.14                     
Amendments. No amendment, change, modification or addition to this
Agreement will be valid unless made in writing and executed by the Company and
the Consultant.

IN WITNESS WHEREOF, the Company and the Consultant have
executed this Agreement as of the First day of May,
2007.

SUN CAL ENERGY INC. 

	Per: 	/s/ George Drazenovic 	
	  	Authorized Signatory
  

 

	SIGNED, SEALED and DELIVERED by 	 )	
	LEWIS DILLMAN doing business as 	 )	
	WESTERN EAGLE in the presence of: 	 )	
		 )	 
		 )	 
	Signature of Witness 	 )	/s/
      Lewis Dillman
	  	 )	LEWIS DILLMAN doing business 
	Name of Witness (print) 	 )	as WESTERN EAGLE 
		 )	 
	Address of Witness 	 )	
		 )	 
	 	 )	 
		 )	 
	Occupation of Witness 	 )	

CONSULTANT AGREEMENT 

THIS AGREEMENT effective as of the 1st day of March, 2007 (the
“Effective Date”): 

BETWEEN: 

  
    
      SUN CAL ENERGY CORP., a Nevada corporation, with
        an office at Suite 301 – 1285 West Pender Street, Vancouver, British
        Columbia V6E 4B1 

      (the “Company”) 

    

  

AND: 

  
    
      LEWIS DILLMAN DOING BUSINESS AS WESTERN
        EAGLE, #900 - 555 Burrard Street, Vancouver, BC, V7X 1M8 

      (the “Consultant”) 

    

  

WHEREAS: 

A.                        
The Company is a subsidiary of a public company called Sun Cal Energy Inc.
(“SCEI”); 

B.                       
 The Company and SCEI are engaged in, among other things, the business of
oil and gas exploration; 

C.                        
The Company and/or SCEI own and utilize various trade secrets and proprietary
information in connection with its business and is constantly developing and
striving to develop new trade secrets and proprietary information to allow it to
maintain and enhance its competitive position in its industry; 

D.                        
The Consultant has certain skills and expertise, as represented to the Company
by the Consultant, which will benefit the Company; 

E.                       
 The Company wishes to obtain and the Consultant wishes to provide certain
services to the Company on the terms and conditions contained in this Agreement;

F.                        
The Consultant will be placed in a position of authority and trust and will come
into contact with, or have access to certain trade secrets and/or confidential
information of and relating to the Company and SCEI. All information disclosed
to the Consultant by the Company is done so in the context of a confidential
relationship between the Consultant and the Company; and

- 2 - 

G.                       
 The Consultant would not be retained by the Company or be given access to
work, or contact with any such trade secrets and/or confidential information
unless the Consultant maintains any and all such trade secrets and/or
confidential information in the strictest of confidence. 

THEREFORE THIS AGREEMENT WITNESSES that the parties AGREE AS
FOLLOWS: 

1.                       
 SERVICES, TERM, ETC. 

1.1                      
Services. The Consultant will perform those services customarily
performed by the Chief Executive Officer (“CEO”) of the Company and as
directed by board of directors (the “Services”). 

1.2                      
Equipment. The Consultant will provide its own equipment to perform the
Services except as otherwise set out in this Agreement. 

1.3                      
Facilities. The Company will be responsible for all necessary office
premises and basic office equipment including space, desk, telephone, signs, and
business cards.

1.4                      
Reporting. The Consultant will keep the Company informed of all matters
concerning the Consultant’s Services at such time and in such manner as the
board of directors of the Company may determine. 

1.5                      
Term and Termination. This Agreement will commence on the Effective Date
and will continue for a period of one year (the “Term”). Either party
will have the right to terminate this Agreement before the end of the Term
without cause: 

	 	(a) 	
      within the first six months of service by giving one
      day’s written notice of termination;

	 	 	 
	 	(b) 	
      after six months of service by giving one month’s written
      notice of termination or at the discretion of the Company, payment in lieu
      of notice (based on the Contract Rate, as defined below, for one month),
      or some combination thereof.

1.6                      
No Employment, No Authority to Bind, Etc. The Consultant and the Company
acknowledge and agree that nothing contained in this agreement will be
interpreted to constitute the Consultant as an employee or agent of the Company.
Neither the Consultant nor the Company have the authority, express or implied,
to bind the other in any respect and will not represent themselves as having
such authority, it being intended that the Consultant will be responsible for
its own actions. The Consultant is retained only for the purposes and to the
extent set out in this Agreement. 

1.7                      
Devotion of Time. The Consultant need only devote such portion of the
Consultant’s time as is necessary to complete the Services required. The
Consultant is not precluded from acting in any other capacity for any other
person, firm or Company provided that it does not conflict with the Consultant’s
duties to the Company.

- 3 - 

2.                       
 REMUNERATION 

2.1                      
Compensation. The Company will pay to the Consultant $7,000 (U.S.) per
month (the “Contract Rate”), payable at the end of each month upon
receipt of an invoice, which includes the date, month worked, and a general
description of the Services provided. The Contract Rate includes payment for
labour, equipment and supplies. 

2.2                      
GST. The Contract Rate is inclusive of Goods and Services Tax
(“GST”). To the extent that the Consultant is required to collect and
remit GST, the Consultant will show the applicable GST amount as a separate line
item on the Consultant’s invoice for Services and provide to the Company the
Consultant’s GST registrant number. 

2.3                      
Additional Work. The Company will pay the Consultant $100 (U.S.),
including GST, for each hour worked in excess of 20 hours per week. 

2.4                      
Bonuses. The Company in its sole discretion, may choose to pay the
Consultant bonuses or other discretionary payments. 

2.5                      
Incentive Plans. The Company in its sole discretion, may choose to
provide the Consultant with short or long term incentive plans or other
discretionary investment opportunities, such as stock options. Any such
remuneration will be provided in accordance with the plan documents (i.e. share
purchase agreement). 

2.6                      
No Deductions. The Company will not make any statutory source deductions
from the compensation payable to the Consultant under this Agreement, such as,
but not limited to federal income tax, provincial income tax, Canada Pension
Plan and Employment Insurance. The Consultant is solely responsible for
withholding and remitting any local, provincial, or federal payroll-related
taxes or assessments related to performance of the Services.

2.7                      
No Benefits. The Consultant is not entitled to any benefits or privileges
that may be provided by the Company to its employees.

2.8                      
Expenses. The Company will pay the Consultant for all reasonable out of
pocket expenses incurred by the Consultant in carrying out the Services provided
they are pre-approved by the Company and individually listed as a separate line
item on the Consultant’s invoice for Services. 

3.                        
GENERAL OBLIGATIONS 

3.1                      
Commercial General Liability Insurance. While providing the Services, the
Consultant will carry and maintain and ensure that the Consultant and any
subcontractors carry and maintain, Commercial General Liability insurance with
available limits of not less than $5 million per occurrence, for bodily injury
and property damage combined. Proof of coverage must be provided to the Company
immediately on request. 

3.2                      
WCB. The Consultant is solely responsible for the Consultant’s
registration and payment of assessments for coverage with the Workers
Compensation Board. If requested by the Company, proof of coverage must be
provided immediately. 

- 4 - 

3.3                      
Indemnity of the Company. The Consultant agrees to indemnify the Company
from all losses, claims, actions, damages, charges, taxes, penalties,
assessments or demands (including reasonable legal fees and expenses) which may
be made by the Canada Revenue Agency, Employment Insurance Plan, the Canada
Pension Plan, the Workers Compensation Plan, or related plans or organizations
requiring the Company to pay an amount under the applicable statutes and
regulations in relation to any Services provided to the Company pursuant to this
Agreement.

3.4                      
Indemnity of the Consultant. The Company agrees to indemnify the
Consultant from all losses, claims, actions, damages, assessments or demands
(including reasonable legal fees and expenses) made against the Consultant which
result from the Consultant’s actions, omission or negligence in the performance
of the Services. The Company will not indemnify the Consultant where the
Consultant’s actions or omissions are fraudulent. 

3.5                      
Company’s Policies. The Consultant is bound by the various policies of
the Company and notwithstanding that those policies may be varied from time to
time. If there is an express conflict between any such policies and this
Agreement, then this Agreement governs. 

3.6                      
Use of the Company’s Property. The Consultant must not save, retain or
store copies of any communications, documentation, records or files being the
rightful property of the Company in any form outside the office or on any
personal electronic device (i.e. ipod, PDA, cell phone, black berry, personal
computer, mass storage device, cd, etc.) for any reason unless expressly
permitted by the Company. 

3.7                      
Return of Company’s Property. Whenever requested by the Company and
immediately upon termination of this Agreement for any reason, the Consultant
will deliver to the Company all property belonging to the Company, including
without limitation any keys, security cards, passwords, devices, documents,
papers, plans, materials or other property, and any copies or reproductions
thereof, which may have come into the Consultant’s possession during the course
of the Consultant’s engagement by the Company. For greater certainty, any
communications or documentation transmitted by, received from, or stored in the
Company’s computer, email or voicemail systems, regardless of any personal
content, are the property of the Company.

3.8                      
Non-Solicitation. During the Term of this Agreement and for a period of
one (1) year from the date of termination of this Agreement for any reason, the
Consultant will not: 

	 	(a) 	
      solicit or entice, or attempt to solicit or entice,
      either directly or indirectly, any supplier, employee, consultant,
      customer or prospective customer of the Company as at the date of
      termination of this Agreement, to become a supplier, employee, consultant,
      or customer of any business or enterprise that competes with the
      Company;

	 	 	 
	 	(b) 	
      solicit or entice, or attempt to solicit or entice,
      either directly or indirectly, any employee or consultant of the Company
      as at the date of termination of this Agreement, to become an employee or
      consultant of any business or enterprise that competes with the
      Company.

- 5 - 

3.9                      
Not in Breach of Prior Agreements. The Consultant represents that his
performance of all the terms of this Agreement do not and will not breach any
fiduciary or other duty or any covenant, agreement or understanding (including
any agreement relating to any proprietary information, knowledge or data
acquired by the Consultant in confidence, trust or otherwise prior to the
Effective Date) to which the Consultant is a party or by the terms of which the
Consultant may be bound. The Consultant agrees that he will not disclose to the
Company, or induce the Company to use any proprietary information, knowledge or
data belonging to any previous Company or others. The Consultant further agrees
not to enter into any agreement or understanding, either written or oral, in
conflict with the provisions of this Agreement. 

4.                       
 CONFIDENTIAL INFORMATION & INTELLECTUAL PROPERTY

4.1                      
Confidential Information. For purposes of this agreement, the term
“Confidential Information” means all of the following materials and
information (whether or not reduced to writing and whether or not patentable or
protectible by copyright) which the Consultant receives, received access to,
conceived or developed, in whole or part, directly or indirectly, in connection
with its relationship with the Company or in the course of providing the
Services to the Company (in any capacity, whether executive, managerial,
planning, technical, sales, research, development, manufacturing, engineering or
otherwise) or through the use of any of the Company’s facilities or resources:

	 	(a) 	
      business plans, strategies, tactics, policies,
      resolutions, patent applications, trademark applications, trade name
      applications and industrial design applications;

	 	 	 
	 	(b) 	
      litigation, negotiations or contractual
    arrangements;

	 	 	 
	 	(c) 	
      financial information, including but not limited to,
      cost, pricing, performance data, debt arrangements, equity structure,
      interests and holdings;

	 	 	 
	 	(d) 	
      operational and scientific information, including but not
      limited to, marketing, research techniques, exploration techniques, trade
      secrets, product specifications, data, data base information, know-how,
      methodologies, formulae, models, compositions, processes, improvements,
      devices, inventions, discoveries, concepts, ideas, designs, sketches,
      photographs, graphs, drawings, notes, samples, past, current and planned
      research and development, systems, structures and architectures and
      related processes (collectively, the “Works”);

	 	 	 
	 	(e) 	
      marketing information, including but not limited to,
      current and planned marketing activities, methods and processes, marketing
      strategies, advertising strategies, customer or client lists, current and
      anticipated customer or client requirements, price lists and
      methodologies, marketing research methodologies, market studies, sales and
      marketing plans and information concerning customers, clients or
      suppliers, and strategies for attracting and dealing with customers or
      clients, including information relevant to the design and implementation
      of marketing plans and advertising campaigns;

- 6 - 

	 	(f) 	
      personnel information, including but not limited to, the
      names and backgrounds of key personnel, personnel lists, resumés,
      personnel data, including information about compensation and benefits,
      organization structure, performance evaluations of personnel of the
      Company and personnel training techniques and materials;

	 	 	 
	 	(g) 	
      any and all information concerning the business and
      affairs of the Company which the Company treats as proprietary and
      confidential and which is not in the public domain;

	 	 	 
	 	(h) 	
      any other information, however documented, of the Company
      that is a trade secret under any applicable legislation or at common law;
      and

	 	 	 
	 	(i) 	
      all ideas which are derived from or related to the
      Consultant’s access to or knowledge of any of the above enumerated
      materials and information.

4.2                      
Failure to mark any of the Confidential Information as confidential, proprietary
or protected information does not affect its status as part of the Confidential
Information under the terms of this Agreement. 

4.3                      
For purposes of this Agreement, the information that would otherwise be
Confidential Information which is or becomes publicly available without breach
of: 

	 	(a) 	
      this Agreement;

	 	 	 
	 	(b) 	
      any other agreement or instrument to which the Company is
      a party or a beneficiary; or

	 	 	 
	 	(c) 	
      any duty owed to the Company by the Consultant or any
      third party;

  (“Available Information”) 

is not Confidential Information, provided, however, that the
Consultant acknowledges and agrees that if the Consultant seeks to disclose,
divulge, reveal, report, publish, transfer or use, for any purpose, any
Available Information, the Consultant bears the burden of proving that such
information is Available Information. 

4.4                      
Definition of Intellectual Property. For purposes of this Agreement, the
term “Intellectual Property” means all Works, trademarks, trademark
applications, patents, patent applications, copyright materials, trade names,
trade name applications, industrial designs, and applications to register
designs. 

4.5                      
Treatment of Information. The Consultant acknowledges that as a result of
his relationship with the Company, the Consultant may use, acquire or add to
Confidential Information or Intellectual Property. 

4.6                      
The Consultant will not at any time during or following the term of this
Agreement, directly or indirectly, disclose, divulge, reveal, report, publish,
transfer or use for any purpose any of the Confidential Information, except with
the prior written consent of the 

- 7 - 

Company, or except if the Consultant is acting as a Consultant
of the Company solely for the benefit of the Company in connection with the
Company’s business and in accordance with the Company’s business practices and
policies. 

4.7                      
Disclosure of any Confidential Information is not prohibited if the disclosure
is directly pursuant to a valid and existing order of a court or other
governmental body or agency within Canada or the United States of America;
provided, however, that: 

	 	(a) 	
      the Consultant will first have given prompt notice to the
      Company of any possible or prospective order (or proceeding pursuant to
      which any order may result); and

	 	 	 
	 	(b) 	
      the Company will have been afforded a reasonable
      opportunity to prevent or limit any disclosure.

4.8                      
Ownership of Information and Intellectual Property. Subject to Section
4.11, the Consultant acknowledges and agrees that all rights, title and interest
in any Confidential Information or Intellectual Property remains the exclusive
property of the Company. Accordingly, the Consultant specifically agrees and
acknowledges that it has no interest in the Confidential Information or
Intellectual Property, notwithstanding the fact that the Consultant may have
created or contributed to the creation of or its name or employee’s name is used
in association with such Confidential Information or Intellectual Property. 

4.9                      
Waiver of Moral Rights. The Consultant waives all moral rights to any
such Intellectual Property, including, but not limited to, the right to the
integrity of the Intellectual Property, the right to be associated with the
Intellectual Property as its author by name or under a pseudonym and the right
to remain anonymous. 

4.10                    
Disclosure of Intellectual Property. The Consultant will immediately
disclose to the Company all Intellectual Property developed in whole or in part
by the Consultant during the term of this Agreement and to assign to the Company
any right, title or interest the Consultant may have in the Intellectual
Property. The Consultant will execute any instruments and to do all other things
reasonably requested by the Company (both during and after termination of this
Agreement) in order to vest more fully in the Company all ownership rights in
those items transferred by it to the Company. 

4.11                      Sections
4.5 to 4.10 do not apply in respect of any invention, copyrighted material,
trademarks, patents or other intellectual property, including applications
therefore, where: 

	 	(a) 	
      no equipment, supplies, facility, Confidential
      Information or Intellectual Property of the Company was used, which was
      developed entirely on the Consultant’s own time, and which does
  not:

	 	 	 	 
	 		(i) 	
      relate to the business of the Company;

	 	 	 	 
	 		(ii) 	
      relate to the Company’s actual or demonstrably
      anticipated processes, research or development;
or

- 8 - 

	 	(iii) 	
      result from any work performed by the Consultant for the
      Company; or

	 	(b) 	
      the Consultant owned or had an interest in, or were
      conceived of, created, or first reduced to practice, prior to his or her
      employment with the Company, provided they are listed by the Consultant
      and attached as a Schedule to this Agreement. The Company agrees to keep
      the Schedule in confidence.

4.12                    
Use of Consultant’s Name, Image, etc. The Company may use the
Consultant’s name, image, appearance, likeness and form, without limitation, in
connection with the Company, including but not limited to the creation,
development, production, manufacture, distribution, promotion and use of its
products and services, during the term of this Agreement and for a period of two
(2) years from the date of termination of this Agreement, regardless of whether
the termination is voluntary or involuntary.

5.                       
 MISCELLANEOUS 

5.1                      
Severability. If any provision of this Agreement is determined by a court
or tribunal of competent jurisdiction to be invalid, illegal or otherwise void
or unenforceable for any reason whatsoever, then such provision will be severed
from this Agreement and will not affect the validity of the remainder of this
Agreement and this Agreement will be construed as if such provision had never
been contained in this Agreement. All other provisions of this Agreement will,
nevertheless, remain in full force and effect and no provision will be deemed
dependent upon any other provision unless so expressed in this Agreement. 

5.2                      
Non-Waiver. The failure of either party to insist upon strict performance
of any of the terms and conditions of this Agreement will not be deemed a waiver
of any rights or remedies that either party has and will not be deemed a waiver
of any subsequent default of the terms and conditions of this Agreement. 

5.3                      
No Assignment by Consultant. The Consultant must not assign either this
Agreement or any benefit or interest granted by it without the prior written
consent of the Company. 

5.4                      
No Subcontracting by Consultant. The Consultant will not subcontract all
or any portion of the Services required to be performed under this Agreement
without prior written consent of the Company. 

5.5                      
Successors. This Agreement will operate to the benefit of and is binding
upon the Company and the Consultant and their respective heirs, executors,
administrators, successors and permitted assigns. 

5.6                      
Notices. Any notice required or permitted to be given to either party
must be delivered by hand or personally to the party’s address last known to the
other party and will be deemed to be received on the date of hand delivery or
personal delivery to such address. Personal delivery will include delivery by a
commercial courier. 

5.7                      
Survival. The Consultant’s obligations contained in Sections 1.5, 1.6,
2.6, 3.3, 3.4, 3.6 to 3.9 and 4 will survive termination of this Agreement. 

- 9 - 

5.8                      
Governing Law. This Agreement will be governed by and interpreted in
accordance with the laws of British Columbia and the laws of Canada that may be
applicable. Any reference in this Agreement to:the Personal Information
Protection Act, means the Personal Information Protection Act, SBC
2003, C. 63 and includes any amendment, replacement or re-enactment or
subordinate legislation made in connection with the above legislation from
time-to-time. 

5.9                      
  Independent Legal Advice. The Consultant acknowledges that it has read
  and understands this Agreement, and acknowledges that it has had the opportunity
  to obtain independent legal advice with respect to it.

  5.10                    
  Seal. The parties adopt the mark as
  a seal and its placement next to a signature of a party is conclusive evidence
  that such party is bound by the terms of this Agreement without any further
  consideration. 

5.11                    
Headings. The headings utilized in this Agreement have been inserted for
convenience of reference only and in no way define, limit, or enlarge the scope
or meaning of the provisions of this Agreement. 

5.12                    
Execution in Counterparts. This Agreement may be executed in several
counterparts, each of which will be deemed to be an original and all of which
will together constitute one and the same instrument. 

5.13                    
Entire Agreement. This Agreement and any documents and instruments
referred to in this Agreement contain the whole agreement between the Consultant
and the Company with respect to the Consultant’s engagement by the Company and
there are no representations, warranties, collateral terms or conditions,
express or implied, other than as set forth in this Agreement. This Agreement
supersedes any written or oral agreement or understanding between the Consultant
and the Company.

5.14                     Amendments.
No amendment, change, modification or addition to this Agreement will be valid
unless made in writing and executed by the Company and the Consultant.

- 10 - 

IN WITNESS WHEREOF, the Company and the Consultant have
executed this Agreement as of the _______ day of __________________, 20___.

SUN CAL ENERGY CORP. 

	Per: 	/s/ George
      Drazenovic 	
	  	Authorized Signatory
  

 

	SIGNED, SEALED and DELIVERED by 	)	
	LEWIS DILLMAN doing business as 	)	
	WESTERN EAGLE in the presence of: 	)	
	  	)	
	
    	)	
	Signature of Witness 	 )	/s/
      Lewis Dillman 
	  	)	LEWIS DILLMAN doing business 
	Name of Witness (print) 	)	as WESTERN EAGLE 
	  	)	
	Address of Witness 	)	
	  	)	
	  	)	
	  	)	
	Occupation of Witness 	)

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