Document:

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                                                                   EXHIBIT 10.10

                          ESPERION THERAPEUTICS, INC.

                         2000 EQUITY COMPENSATION PLAN
                         -----------------------------

         The purpose of the Esperion Therapeutics, Inc. 2000 Equity Compensation
Plan (the "Plan") is to provide (i) designated employees of Esperion
Therapeutics, Inc. (the "Company") and its subsidiaries, (ii) certain
consultants and advisors who perform services for the Company or its
subsidiaries and (iii) non-employee members of the Board of Directors of the
Company (the "Board") with the opportunity to receive grants of incentive stock
options, nonqualified stock options, stock awards and performance units. The
Company believes that the Plan will encourage the participants to contribute
materially to the growth of the Company, thereby benefitting the Company's
stockholders, and will align the economic interests of the participants with
those of the stockholders.

         1.  Administration
             --------------

         (a) Committee. The Plan shall be administered by a committee appointed
             ---------
by the Board (the "Committee"), which may consist of two or more persons who are
"outside directors" as defined under section 162(m) of the Internal Revenue Code
of 1986, as amended (the "Code"), and related Treasury regulations and
"non-employee directors" as defined under Rule 16b-3 under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). However, the Board may
ratify or approve any grants as it deems appropriate.

         (b) Committee Authority. The Committee shall have the sole authority to
             -------------------
(i) determine the individuals to whom grants shall be made under the Plan, (ii)
determine the type, size and terms of the grants to be made to each such
individual, (iii) determine the time when the grants will be made and the
duration of any applicable exercise or restriction period, including the
criteria for exercisability and the acceleration of exercisability, (iv) amend
the terms of any previously issued grant, and (v) deal with any other matters
arising under the Plan.

         (c) Committee Determinations. The Committee shall have full power and
             ------------------------
authority to administer and interpret the Plan, to make factual determinations
and to adopt or amend such rules, regulations, agreements and instruments for
implementing the Plan and for the conduct of its business as it deems necessary
or advisable, in its sole discretion. The Committee's interpretations of the
Plan and all determinations made by the Committee pursuant to the powers vested
in it hereunder shall be conclusive and binding on all persons having any
interest in the Plan or in any awards granted hereunder. All powers of the
Committee shall be executed in its sole discretion, in the best interest of the
Company, not as a fiduciary, and in keeping with the objectives of the Plan and
need not be uniform as to similarly situated individuals.
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         2.  Grants
             ------

         Awards under the Plan may consist of grants of incentive stock options
as described in Section 5 ("Incentive Stock Options"), nonqualified stock
options as described in Section 5 "Nonqualified Stock Options") (Incentive Stock
Options and Nonqualified Stock Options are collectively referred to as
"Options"), stock awards as described in Section 6 ("Stock Awards"), and
performance units as described in Section 7 ("Performance Units") (hereinafter
collectively referred to as "Grants"). All Grants shall be subject to the terms
and conditions set forth herein and to such other terms and conditions
consistent with this Plan as the Committee deems appropriate and as are
specified in writing by the Committee to the individual in a grant instrument or
an amendment to the grant instrument (the "Grant Instrument"). The Committee
shall approve the form and provisions of each Grant Instrument. Grants under a
particular Section of the Plan need not be uniform as among the grantees.

         3.  Shares Subject to the Plan
             --------------------------

         (a) Shares Authorized. Subject to adjustment as described below, the
             -----------------
aggregate number of shares of common stock of the Company ("Company Stock") that
may be issued or transferred under the Plan is 1,000,000 shares. The maximum
aggregate number of shares of Company Stock that shall be subject to Grants made
under the Plan to any individual during any calendar year shall be 500,000
shares, subject to adjustment as described below. The shares may be authorized
but unissued shares of Company Stock or reacquired shares of Company Stock,
including shares purchased by the Company on the open market for purposes of the
Plan. If and to the extent Options granted under the Plan terminate, expire, or
are canceled, forfeited, exchanged or surrendered without having been exercised
or if any Stock Awards or Performance Units are forfeited, the shares subject to
such Grants shall again be available for purposes of the Plan.

         (b) Adjustments. If there is any change in the number or kind of shares
             -----------
of Company Stock outstanding (i) by reason of a stock dividend, spinoff,
recapitalization, stock split, or combination or exchange of shares, (ii) by
reason of a merger, reorganization or consolidation in which the Company is the
surviving corporation, (iii) by reason of a reclassification or change in par
value, or (iv) by reason of any other extraordinary or unusual event affecting
the outstanding Company Stock as a class without the Company's receipt of
consideration, or if the value of outstanding shares of Company Stock is
substantially reduced as a result of a spinoff or the Company's payment of an
extraordinary dividend or distribution, the maximum number of shares of Company
Stock available for Grants, the maximum number of shares of Company Stock that
any individual participating in the Plan may be granted in any year, the number
of shares covered by outstanding Grants, the kind of shares issued under the
Plan, and the price per share or the applicable market value of such Grants may
be appropriately adjusted by the Committee to reflect any increase or decrease
in the number of, or change in the kind or value of, issued shares of Company
Stock to preclude, to the extent practicable, the enlargement or dilution of
rights and benefits under such Grants; provided, however, that any fractional
shares resulting from such

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adjustment shall be eliminated. Any adjustments determined by the Committee
shall be final, binding and conclusive.

         4.  Eligibility for Participation
             -----------------------------

         (a) Eligible Persons. All employees of the Company and its subsidiaries
             ----------------
("Employees"), including Employees who are officers or members of the Board, and
members of the Board who are not Employees ("Non-Employee Directors") shall be
eligible to participate in the Plan. Consultants and advisors who perform
services for the Company or any of its subsidiaries ("Key Advisors") shall be
eligible to participate in the Plan if the Key Advisors render bona fide
services to the Company or its subsidiaries, the services are not in connection
with the offer and sale of securities in a capital-raising transaction and the
Key Advisors do not directly or indirectly promote or maintain a market for the
Company's securities.

         (b) Selection of Grantees. The Committee shall select the Employees,
             ---------------------
Non-Employee Directors and Key Advisors to receive Grants and shall determine
the number of shares of Company Stock subject to a particular Grant in such
manner as the Committee determines. Employees, Key Advisors and Non-Employee
Directors who receive Grants under this Plan shall hereinafter be referred to as
"Grantees".

         5.  Granting of Options
             -------------------

         (a) Number of Shares. The Committee shall determine the number of
             ----------------
shares of Company Stock that will be subject to each Grant of Options to
Employees, Non-Employee Directors and Key Advisors.

         (b) Type of Option and Price.
             ------------------------

             (i)   The Committee may grant Incentive Stock Options that are
intended to qualify as "incentive stock options" within the meaning of section
422 of the Code or Nonqualified Stock Options that are not intended so to
qualify or any combination of Incentive Stock Options and Nonqualified Stock
Options, all in accordance with the terms and conditions set forth herein.
Incentive Stock Options may be granted only to Employees. Nonqualified Stock
Options may be granted to Employees, Non-Employee Directors and Key Advisors.

             (ii)  The purchase price (the "Exercise Price") of Company Stock
subject to an Option shall be determined by the Committee and may be equal to or
greater than the Fair Market Value (as defined below) of a share of Company
Stock on the date the Option is granted; provided, however, that an Incentive
Stock Option may not be granted to an Employee who, at the time of grant, owns
stock possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company or any parent or subsidiary of the Company,
unless the Exercise Price per share is not less than 110% of the Fair Market
Value of Company Stock on the date of grant.

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             (iii)  If the Company Stock is publicly traded, then the Fair
Market Value per share shall be determined as follows: (x) if the principal
trading market for the Company Stock is a national securities exchange or the
Nasdaq National Market, the last reported sale price thereof on the relevant
date or (if there were no trades on that date) the latest preceding date upon
which a sale was reported, or (y) if the Company Stock is not principally traded
on such exchange or market, the mean between the last reported "bid" and "asked"
prices of Company Stock on the relevant date, as reported on Nasdaq or, if not
so reported, as reported by the National Daily Quotation Bureau, Inc. or as
reported in a customary financial reporting service, as applicable and as the
Committee determines. If the Company Stock is not publicly traded or, if
publicly traded, is not subject to reported transactions or "bid" or "asked"
quotations as set forth above, the Fair Market Value per share shall be as
determined by the Committee.

         (c) Option Term. The Committee shall determine the term of each Option.
             -----------
The term of any Option shall not exceed ten years from the date of grant.
However, an Incentive Stock Option that is granted to an Employee who, at the
time of grant, owns stock possessing more than 10 percent of the total combined
voting power of all classes of stock of the Company, or any parent or subsidiary
of the Company, may not have a term that exceeds five years from the date of
grant.

         (d) Exercisability of Options. Options shall become exercisable in
             -------------------------
accordance with such terms and conditions, consistent with the Plan, as may be
determined by the Committee and specified in the Grant Instrument. The Committee
may accelerate the exercisability of any or all outstanding Options at any time
for any reason.

         (e) Termination of Employment, Disability or Death.
             ----------------------------------------------

             (i)   Except as provided below, an Option may only be exercised
while the Grantee is employed by, or providing service to, the Company as an
Employee, Key Advisor or member of the Board. In the event that a Grantee ceases
to be employed by, or provide service to, the Company for any reason other than
Disability, death, or termination for Cause (as defined below), any Option which
is otherwise exercisable by the Grantee shall terminate unless exercised within
90 days after the date on which the Grantee ceases to be employed by, or provide
service to, the Company (or within such other period of time as may be specified
by the Committee), but in any event no later than the date of expiration of the
Option term. Except as otherwise provided by the Committee, any of the Grantee's
Options that are not otherwise exercisable as of the date on which the Grantee
ceases to be employed by, or provide service to, the Company shall terminate as
of such date.

             (ii)  In the event the Grantee ceases to be employed by, or
provide service to, the Company on account of a termination for Cause by the
Company, any Option held by the Grantee shall terminate as of the date the
Grantee ceases to be employed by, or provide service to, the Company. In
addition, notwithstanding any other provisions of this Section 5, if the
Committee determines that the Grantee has engaged in conduct that constitutes
Cause at any time

                                      -4-
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while the Grantee is employed by, or providing service to, the Company or after
the Grantee's termination of employment or service, any Option held by the
Grantee shall immediately terminate and the Grantee shall automatically forfeit
all shares underlying any exercised portion of an Option for which the Company
has not yet delivered the share certificates, upon refund by the Company of the
Exercise Price paid by the Grantee for such shares. Upon any exercise of an
Option, the Company may withhold delivery of share certificates pending
resolution of an inquiry that could lead to a finding resulting in a forfeiture.

             (iii)  In the event the Grantee ceases to be employed by, or
provide service to, the Company because the Grantee is Disabled, any Option
which is otherwise exercisable by the Grantee shall terminate unless exercised
within one year after the date on which the Grantee ceases to be employed by, or
provide service to, the Company (or within such other period of time as may be
specified by the Committee), but in any event no later than the date of
expiration of the Option term. Except as otherwise provided by the Committee,
any of the Grantee's Options which are not otherwise exercisable as of the date
on which the Grantee ceases to be employed by, or provide service to, the
Company shall terminate as of such date.

             (iv)   If the Grantee dies while employed by, or providing service
to, the Company or within 90 days after the date on which the Grantee ceases to
be employed or provide service on account of a termination specified in Section
5(e)(i) above (or within such other period of time as may be specified by the
Committee), any Option that is otherwise exercisable by the Grantee shall
terminate unless exercised within one year after the date on which the Grantee
ceases to be employed by, or provide service to, the Company (or within such
other period of time as may be specified by the Committee), but in any event no
later than the date of expiration of the Option term. Except as otherwise
provided by the Committee, any of the Grantee's Options that are not otherwise
exercisable as of the date on which the Grantee ceases to be employed by, or
provide service to, the Company shall terminate as of such date.

             (v)    For purposes of this Section 5(e), and Sections 6 and 7:

             (A)    The term "Company" shall mean the Company and its parent
         and subsidiary corporations or other entities, as determined by the
         Committee.

             (B)    "Employed by, or provide service to, the Company" shall
         mean employment or service as an Employee, Key Advisor or member of the
         Board (so that, for purposes of exercising Options and satisfying
         conditions with respect to Stock Awards and Performance Units, a
         Grantee shall not be considered to have terminated employment or
         service until the Grantee ceases to be an Employee, Key Advisor and
         member of the Board), unless the Committee determines otherwise.

             (C)    "Disability" shall mean a Grantee's becoming disabled
         within the meaning of section 22(e)(3) of the Code or the Grantee
         becomes entitled to receive long-term disability benefits under the
         Company's long-term disability plan.

                                      -5-
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             (D)    "Cause" shall mean, except to the extent specified otherwise
         by the Committee, a finding by the Committee that the Grantee (i) has
         breached his or her employment or service contract with the Company,
         (ii) has engaged in disloyalty to the Company, including, without
         limitation, fraud, embezzlement, theft, commission of a felony or
         proven dishonesty in the course of his or her employment or service,
         (iii) has disclosed trade secrets or confidential information of the
         Company to persons not entitled to receive such information or (iv) has
         engaged in such other behavior detrimental to the interests of the
         Company as the Committee determines.

         (f) Exercise of Options. A Grantee may exercise an Option that has
             -------------------
become exercisable, in whole or in part, by delivering a notice of exercise to
the Company with payment of the Exercise Price. The Grantee shall pay the
Exercise Price for an Option as specified by the Committee (w) in cash, (x) with
the approval of the Committee, by delivering shares of Company Stock owned by
the Grantee (including Company Stock acquired in connection with the exercise of
an Option, subject to such restrictions as the Committee deems appropriate) and
having a Fair Market Value on the date of exercise equal to the Exercise Price
or by attestation (on a form prescribed by the Committee) to ownership of shares
of Company Stock having a Fair Market Value on the date of exercise equal to the
Exercise Price, (y) payment through a broker in accordance with procedures
permitted by Regulation T of the Federal Reserve Board, or (z) by such other
method as the Committee may approve. The Committee may authorize loans by the
Company to Grantees in connection with the exercise of an Option, upon such
terms and conditions as the Committee, in its sole discretion, deems
appropriate. Shares of Company Stock used to exercise an Option shall have been
held by the Grantee for the requisite period of time to avoid adverse accounting
consequences to the Company with respect to the Option. The Grantee shall pay
the Exercise Price and the amount of any withholding tax due at the time of
exercise.

         (g) Limits on Incentive Stock Options. Each Incentive Stock Option
             ---------------------------------
shall provide that, if the aggregate Fair Market Value of the stock on the date
of the grant with respect to which Incentive Stock Options are exercisable for
the first time by a Grantee during any calendar year, under the Plan or any
other stock option plan of the Company or a parent or subsidiary, exceeds
$100,000, then the Option, as to the excess, shall be treated as a Nonqualified
Stock Option. An Incentive Stock Option shall not be granted to any person who
is not an Employee of the Company or a parent or subsidiary (within the meaning
of section 424(f) of the Code).

         6.  Stock Awards
             ------------

         The Committee may issue or transfer shares of Company Stock to an
Employee, Non-Employee Director or Key Advisor under a Stock Award, upon such
terms as the Committee deems appropriate. The following provisions are
applicable to Stock Awards:

                                      -6-
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         (a) General Requirements. Shares of Company Stock issued or transferred
             --------------------
pursuant to Stock Awards may be issued or transferred for consideration or for
no consideration, and subject to restrictions or no restrictions, as determined
by the Committee. The Committee may, but shall not be required to, establish
conditions under which restrictions on Stock Awards shall lapse over a period of
time or according to such other criteria as the Committee deems appropriate,
including, without limitation, restrictions based upon the achievement of
specific performance goals. The period of time during which the Stock Awards
will remain subject to restrictions will be designated in the Grant Instrument
as the "Restriction Period."

         (b) Number of Shares. The Committee shall determine the number of
             ----------------
shares of Company Stock to be issued or transferred pursuant to a Stock Award
and the restrictions applicable to such shares.

         (c) Requirement of Employment or Service. If the Grantee ceases to be
             ------------------------------------
employed by, or provide service to, the Company (as defined in Section 5(e))
during a period designated in the Grant Instrument as the Restriction Period, or
if other specified conditions are not met, the Stock Award shall terminate as to
all shares covered by the Grant as to which the restrictions have not lapsed,
and those shares of Company Stock must be immediately returned to the Company.
The Committee may, however, provide for complete or partial exceptions to this
requirement as it deems appropriate.

         (d) Restrictions on Transfer and Legend on Stock Certificate. During
             --------------------------------------------------------
the Restriction Period, a Grantee may not sell, assign, transfer, pledge or
otherwise dispose of the shares of a Stock Award except to a Successor Grantee
under Section 11(a). Each certificate for a share of a Stock Award shall contain
a legend giving appropriate notice of the restrictions in the Grant. The Grantee
shall be entitled to have the legend removed from the stock certificate covering
the shares subject to restrictions when all restrictions on such shares have
lapsed. The Committee may determine that the Company will not issue certificates
for Stock Awards until all restrictions on such shares have lapsed, or that the
Company will retain possession of certificates for shares of Stock Awards until
all restrictions on such shares have lapsed.

         (e) Right to Vote and to Receive Dividends. Unless the Committee
             --------------------------------------
determines otherwise, during the Restriction Period, the Grantee shall have the
right to vote shares of Stock Awards and to receive any dividends or other
distributions paid on such shares, subject to any restrictions deemed
appropriate by the Committee, including, without limitation, the achievement of
specific performance goals.

         (f) Lapse of Restrictions. All restrictions imposed on Stock Awards
             ---------------------
shall lapse upon the expiration of the applicable Restriction Period and the
satisfaction of all conditions imposed by the Committee. The Committee may
determine, as to any or all Stock Awards, that the restrictions shall lapse
without regard to any Restriction Period.

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         7.  Performance Units
             -----------------

         (a) General Requirements. The Committee may grant performance units
             --------------------
("Performance Units") to an Employee or Key Advisor. Each Performance Unit shall
represent the right of the Grantee to receive an amount based on the value of
the Performance Unit, if performance goals established by the Committee are met.
The value of a Performance Unit shall equal the Fair Market Value of a share of
Company Stock. The Committee shall determine the number of Performance Units to
be granted and the requirements applicable to such Units.

         (b) Performance Period and Performance Goals. When Performance Units
             ----------------------------------------
are granted, the Committee shall establish the performance period during which
performance shall be measured (the "Performance Period"), performance goals
applicable to the Units ("Performance Goals") and such other conditions of the
Grant as the Committee deems appropriate. Performance Goals may relate to the
financial performance of the Company or its operating units, the performance of
Company Stock, individual performance, or such other criteria as the Committee
deems appropriate.

         (c) Payment with respect to Performance Units. At the end of each
             -----------------------------------------
Performance Period, the Committee shall determine to what extent the Performance
Goals and other conditions of the Performance Units are met, the value of the
Performance Units (if applicable), and the amount, if any, to be paid with
respect to the Performance Units. Payments with respect to Performance Units
shall be made partly in cash, in Company Stock, or in a combination of the two,
as determined by the Committee, provided that the cash portion does not exceed
50% of the amount to be distributed.

         (d) Requirement of Employment or Service. If the Grantee ceases to be
             ------------------------------------
employed by, or provide service to, the Company (as defined in Section 5(e))
during a Performance Period, or if other conditions established by the Committee
are not met, the Grantee's Performance Units shall be forfeited. The Committee
may, however, provide for complete or partial exceptions to this requirement as
it deems appropriate.

         8.  Qualified Performance-Based Compensation.
             ----------------------------------------

         (a) Designation as Qualified Performance-Based Compensation. The
             -------------------------------------------------------
Committee may determine that Performance Units or Stock Awards granted to an
Employee shall be considered "qualified performance-based compensation" under
Section 162(m) of the Code. The provisions of this Section 8 shall apply to
Grants of Performance Units and Stock Awards that are to be considered
"qualified performance-based compensation" under section 162(m) of the Code.

                                      -8-
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         (b) Performance Goals. When Performance Units or Stock Awards that are
             -----------------
to be considered "qualified performance-based compensation" are granted, the
Committee shall establish in writing (i) the objective performance goals that
must be met in order for restrictions on the Stock Awards to lapse or amounts to
be paid under the Performance Units, (ii) the Performance Period during which
the performance goals must be met, (iii) the threshold, target and maximum
amounts that may be paid if the performance goals are met, and (iv) any other
conditions that the Committee deems appropriate and consistent with the Plan and
section 162(m) of the Code. The performance goals may relate to the Employee's
business unit or the performance of the Company and its subsidiaries as a whole,
or any combination of the foregoing. The Committee shall use objectively
determinable performance goals based on one or more of the following criteria:
stock price, earnings per share, net earnings, operating earnings, return on
assets, stockholder return, return on equity, growth in assets, unit volume,
sales, market share, scientific goals, pre-clinical or clinical goals,
regulatory approvals, or strategic business criteria consisting of one or more
objectives based on meeting specified revenue goals, market penetration goals,
geographic business expansion goals, cost targets, goals relating to
acquisitions or divestitures, or strategic partnerships.

         (c) Establishment of Goals. The Committee shall establish the
             ----------------------
performance goals in writing either before the beginning of the Performance
Period or during a period ending no later than the earlier of (i) 90 days after
the beginning of the Performance Period or (ii) the date on which 25% of the
Performance Period has been completed, or such other date as may be required or
permitted under applicable regulations under section 162(m) of the Code. The
performance goals shall satisfy the requirements for "qualified
performance-based compensation," including the requirement that the achievement
of the goals be substantially uncertain at the time they are established and
that the goals be established in such a way that a third party with knowledge of
the relevant facts could determine whether and to what extent the performance
goals have been met. The Committee shall not have discretion to increase the
amount of compensation that is payable upon achievement of the designated
performance goals.

         (d) Maximum Payment.  Performance Units and Stock Awards under this
             ---------------
Section 8 may be granted to an Employee with respect to not more than _________
shares of Company Stock for any Performance Period.

         (e) Announcement of Grants. The Committee shall certify and announce
             ----------------------
the results for each Performance Period to all Grantees immediately following
the announcement of the Company's financial results for the Performance Period.
If and to the extent that the Committee does not certify that the performance
goals have been met, the grants of Stock Awards or Performance Units for the
Performance Period shall be forfeited.

         (f) Death, Disability, Change of Control or Other Circumstances. The
             -----------------------------------------------------------
Committee may provide that Performance Units shall be payable or restrictions on
Stock Awards shall lapse, in whole or in part, in the event of the Grantee's
death or Disability (as defined in Section 5(e) above) during the Performance
Period, or under other circumstances consistent with the

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regulations and rulings under section 162(m), and the provisions of Section 13
shall apply in the event of a Change of Control.

         9.  Deferrals
             ---------

         The Committee may permit or require a Grantee to defer receipt of the
payment of cash or the delivery of shares that would otherwise be due to such
Grantee in connection with any Option, the lapse or waiver of restrictions
applicable to Stock Awards, or the satisfaction of any requirements or
objectives with respect to Performance Units. If any such deferral election is
permitted or required, the Committee shall, in its sole discretion, establish
rules and procedures for such deferrals.

         10. Withholding of Taxes
             --------------------

         (a) Required Withholding. All Grants under the Plan shall be subject to
             --------------------
applicable federal (including FICA), state and local tax withholding
requirements. The Company shall have the right to deduct from all Grants paid in
cash, or from other wages paid to the Grantee, any federal, state or local taxes
required by law to be withheld with respect to such Grants. In the case of
Options, Stock Awards and other Grants paid in Company Stock, the Company may
require that the Grantee or other person receiving or exercising Grants pay to
the Company the amount of any federal, state or local taxes that the Company is
required to withhold with respect to such Grants, or the Company may deduct from
other wages paid by the Company the amount of any withholding taxes due with
respect to such Grants.

         (b) Election to Withhold Shares. If the Committee so permits, a Grantee
             ---------------------------
may elect to satisfy the Company's income tax withholding obligation with
respect to Options, Stock Awards or Performance Units paid in Company Stock by
having shares withheld up to an amount that does not exceed the Grantee's
minimum applicable withholding tax rate for federal (including FICA), state and
local tax liabilities. The election must be in a form and manner prescribed by
the Committee and may be subject to the prior approval of the Committee.

         11. Transferability of Grants
             -------------------------

         (a) Nontransferability of Grants. Except as provided below, only the
             ----------------------------
Grantee may exercise rights under a Grant during the Grantee's lifetime. A
Grantee may not transfer those rights except by will or by the laws of descent
and distribution or, with respect to Grants other than Incentive Stock Options,
if permitted in any specific case by the Committee, pursuant to a domestic
relations order. When a Grantee dies, the personal representative or other
person entitled to succeed to the rights of the Grantee ("Successor Grantee")
may exercise such rights. A Successor Grantee must furnish proof satisfactory to
the Company of his or her right to receive the Grant under the Grantee's will or
under the applicable laws of descent and distribution.

                                      -10-
<PAGE>

         (b) Transfer of Nonqualified Stock Options. Notwithstanding the
             --------------------------------------
foregoing, the Committee may provide, in a Grant Instrument, that a Grantee may
transfer Nonqualified Stock Options to family members, or one or more trusts or
other entities for the benefit of or owned by family members, consistent with
the applicable securities laws, according to such terms as the Committee may
determine; provided that the Grantee receives no consideration for the transfer
of an Option and the transferred Option shall continue to be subject to the same
terms and conditions as were applicable to the Option immediately before the
transfer.

         12. Change of Control of the Company
             --------------------------------

         As used herein, a "Change of Control" shall be deemed to have occurred
if:

         (a) Any "person" (as such term is used in sections 13(d) and 14(d) of
the Exchange Act) becomes a "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the voting power of the then outstanding
securities of the Company; provided that a Change of Control shall not be deemed
to occur as a result of a transaction in which the Company becomes a subsidiary
of another corporation and in which the stockholders of the Company, immediately
prior to the transaction, will beneficially own, immediately after the
transaction, shares entitling such stockholders to more than 50% of all votes to
which all stockholders of the parent corporation would be entitled in the
election of directors (without consideration of the rights of any class of stock
to elect directors by a separate class vote); or

         (b) The stockholders of the Company approve (or, if stockholder
approval is not required, the Board approves) an agreement providing for (i) the
merger or consolidation of the Company with another corporation where the
stockholders of the Company, immediately prior to the merger or consolidation,
will not beneficially own, immediately after the merger or consolidation, shares
entitling such stockholders to more than 50% of all votes to which all
stockholders of the surviving corporation would be entitled in the election of
directors (without consideration of the rights of any class of stock to elect
directors by a separate class vote), (ii) the sale or other disposition of all
or substantially all of the assets of the Company, or (iii) a liquidation or
dissolution of the Company.

                                      -11-
<PAGE>

         13. Consequences of a Change of Control
             -----------------------------------

         (a) Assumption of Grants. Upon a Change of Control where the Company is
             --------------------
not the surviving corporation (or survives only as a subsidiary of another
corporation), unless the Committee determines otherwise, all outstanding Options
that are not exercised shall be assumed by, or replaced with comparable options
or rights by the surviving corporation (or a parent of the surviving
corporation), and other outstanding Grants shall be converted to similar grants
of the surviving corporation (or a parent of the surviving corporation).

         (b) Other Alternatives. Notwithstanding the foregoing, in the event of
             ------------------
a Change of Control, the Committee may, but shall not be obligated to, take any
of the following actions with respect to any or all outstanding Grants: the
Committee may (i) determine that outstanding Options shall automatically
accelerate and become fully exercisable and that the restrictions and conditions
on outstanding Stock Awards shall immediately lapse, (ii) determine that
Grantees holding Performance Units shall receive a payment in settlement of such
Performance Units in an amount determined by the Committee, (iii) require that
Grantees surrender their outstanding Options in exchange for a payment by the
Company, in cash or Company Stock as determined by the Committee, in an amount
equal to the amount by which the then Fair Market Value of the shares of Company
Stock subject to the Grantee's unexercised Options exceeds the Exercise Price of
the Options or (iv) after giving Grantees an opportunity to exercise their
outstanding Options, terminate any or all unexercised Options at such time as
the Committee deems appropriate. Such surrender, termination or settlement shall
take place as of the date of the Change of Control or such other date as the
Committee may specify. The Committee shall have no obligation to take any of the
foregoing actions, and, in the absence of any such actions, outstanding Grants
shall continue in effect according to their terms (subject to any assumption
pursuant to Subsection (a)).

         14. Requirements for Issuance or Transfer of Shares
             -----------------------------------------------

         (a) Limitations on Issuance or Transfer of Shares. No Company Stock
             ---------------------------------------------
shall be issued or transferred in connection with any Grant hereunder unless and
until all legal requirements applicable to the issuance or transfer of such
Company Stock have been complied with to the satisfaction of the Committee. The
Committee shall have the right to condition any Grant made to any Grantee
hereunder on such Grantee's undertaking in writing to comply with such
restrictions on his or her subsequent disposition of such shares of Company
Stock as the Committee shall deem necessary or advisable, and certificates
representing such shares may be legended to reflect any such restrictions.
Certificates representing shares of Company Stock issued or transferred under
the Plan will be subject to such stop-transfer orders and other restrictions as
may be required by applicable laws, regulations and interpretations, including
any requirement that a legend be placed thereon.

                                      -12-
<PAGE>

         (b) Lock-Up Period. If so requested by the Company or any
             --------------
representative of the underwriters (the "Managing Underwriter") in connection
with any underwritten offering of securities of the Company under the Securities
Act of 1933, as amended (the "Securities Act"), a Grantee (including any
successors or assigns) shall not sell or otherwise transfer any shares or other
securities of the Company during the 30-day period preceding and the 120-day
period following the effective date of a registration statement of the Company
filed under the Securities Act for such underwriting (or such shorter period as
may be requested by the Managing Underwriter and agreed to by the Company) (the
"Market Standoff Period"). The Company may impose stop-transfer instructions
with respect to securities subject to the foregoing restrictions until the end
of such Market Standoff Period.

         15. Amendment and Termination of the Plan
             -------------------------------------

         (a) Amendment. The Board may amend or terminate the Plan at any time;
             ---------
provided, however, that the Board shall not amend the Plan without stockholder
approval if (i) such approval is required in order for Incentive Stock Options
granted or to be granted under the Plan to meet the requirements of section 422
of the Code, (ii) such approval is required in order to exempt compensation
under the Plan from the deduction limit under section 162(m) of the Code, or
(iii) such approval is required by applicable stock exchange requirements.

         (b) Stockholder Approval for "Qualified Performance-Based
             -----------------------------------------------------
Compensation." If Performance Units or Stock Awards are granted as "qualified
------------
performance-based compensation" under Section 8 above, the Plan must be
reapproved by the stockholders no later than the first stockholders meeting that
occurs in the fifth year following the year in which the stockholders previously
approved the provisions of Section 8, if required by section 162(m) of the Code
or the regulations thereunder.

         (c) Termination of Plan. The Plan shall terminate on the day
             -------------------
immediately preceding the tenth anniversary of its effective date, unless the
Plan is terminated earlier by the Board or is extended by the Board with the
approval of the stockholders.

         (d) Termination and Amendment of Outstanding Grants. A termination or
             -----------------------------------------------
amendment of the Plan that occurs after a Grant is made shall not materially
impair the rights of a Grantee unless the Grantee consents or unless the
Committee acts under Section 21(c). The termination of the Plan shall not impair
the power and authority of the Committee with respect to an outstanding Grant.
Whether or not the Plan has terminated, an outstanding Grant may be terminated
or amended under Section 21(c) or may be amended by agreement of the Company and
the Grantee consistent with the Plan.

         (e) Governing Document. The Plan shall be the controlling document. No
             ------------------
other statements, representations, explanatory materials or examples, oral or
written, may amend the Plan in any manner. The Plan shall be binding upon and
enforceable against the Company and its successors and assigns.

                                      -13-
<PAGE>

         16. Funding of the Plan
             -------------------

         This Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Grants under this Plan. In no event shall
interest be paid or accrued on any Grant, including unpaid installments of
Grants.

         17. Rights of Participants
             ----------------------

         Nothing in this Plan shall entitle any Employee, Key Advisor,
Non-Employee Director or other person to any claim or right to be granted a
Grant under this Plan. Neither this Plan nor any action taken hereunder shall be
construed as giving any individual any rights to be retained by or in the employ
of the Company or any other employment rights.

         18. No Fractional Shares
             --------------------

         No fractional shares of Company Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine whether cash,
other awards or other property shall be issued or paid in lieu of such
fractional shares or whether such fractional shares or any rights thereto shall
be forfeited or otherwise eliminated.

         19. Headings
             --------

         Section headings are for reference only. In the event of a conflict
between a title and the content of a Section, the content of the Section shall
control.

         20. Effective Date of the Plan.
             --------------------------

         Subject to approval by the Company's stockholders, the Plan shall be
effective on ____________, 2000.

         21. Miscellaneous
             -------------

         (a) Grants in Connection with Corporate Transactions and Otherwise.
             --------------------------------------------------------------
Nothing contained in this Plan shall be construed to (i) limit the right of the
Committee to make Grants under this Plan in connection with the acquisition, by
purchase, lease, merger, consolidation or otherwise, of the business or assets
of any corporation, firm or association, including Grants to employees thereof
who become Employees of the Company, or for other proper corporate purposes, or
(ii) limit the right of the Company to grant stock options or make other awards
outside of this Plan. Without limiting the foregoing, the Committee may make a
Grant to an employee of another corporation who becomes an Employee by reason of
a corporate merger, consolidation, acquisition of stock or property,
reorganization or liquidation involving the Company or any of its subsidiaries
in substitution for a stock option or stock awards grant made

                                      -14-
<PAGE>

by such corporation. The terms and conditions of the substitute grants may vary
from the terms and conditions required by the Plan and from those of the
substituted stock incentives. The Committee shall prescribe the provisions of
the substitute grants.

         (b) Employees Subject to Taxation Outside the United States. With
             -------------------------------------------------------
respect to Grantees who are subject to taxation in countries other than the
United States, the Committee may make Grants on such terms and conditions as the
Committee deems appropriate to comply with the laws of the applicable countries,
and the Committee may create such procedures, addenda and subplans and make such
modifications as may be necessary or advisable to comply with such laws.

         (c) Compliance with Law. The Plan, the exercise of Options and the
             -------------------
obligations of the Company to issue or transfer shares of Company Stock under
Grants shall be subject to all applicable laws and to approvals by any
governmental or regulatory agency as may be required. With respect to persons
subject to section 16 of the Exchange Act, it is the intent of the Company that
the Plan and all transactions under the Plan comply with all applicable
provisions of Rule 16b-3 or its successors under the Exchange Act. In addition,
it is the intent of the Company that the Plan and applicable Grants under the
Plan comply with the applicable provisions of section 162(m) of the Code and
section 422 of the Code. To the extent that any legal requirement of section 16
of the Exchange Act or section 162(m) or 422 of the Code as set forth in the
Plan ceases to be required under section 16 of the Exchange Act or section
162(m) or 422 of the Code, that Plan provision shall cease to apply. The
Committee may revoke any Grant if it is contrary to law or modify a Grant to
bring it into compliance with any valid and mandatory government regulation. The
Committee may also adopt rules regarding the withholding of taxes on payments to
Grantees. The Committee may, in its sole discretion, agree to limit its
authority under this Section.

         (d) Governing Law. The validity, construction, interpretation and
             -------------
effect of the Plan and Grant Instruments issued under the Plan shall be governed
and construed by and determined in accordance with the laws of Delaware, without
giving effect to the conflict of laws provisions thereof.

                                      -15-<PAGE>

                                                                   EXHIBIT 10.11

                          ESPERION THERAPEUTICS, INC.

                         EMPLOYEE STOCK PURCHASE PLAN
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>

ARTICLE I......................................................................................................   1
     Introduction..............................................................................................   1
     Sec. 1.01  Statement of Purpose...........................................................................   1
     Sec. 1.02  Internal Revenue Code Considerations...........................................................   1
     Sec. 1.03  ERISA Considerations...........................................................................   1

ARTICLE II.....................................................................................................   1
     Definitions...............................................................................................   1
     Sec. 2.01  Board of Directors.............................................................................   1
     Sec. 2.02  Code...........................................................................................   1
     Sec. 2.03  Committee......................................................................................   1
     Sec. 2.04  Company........................................................................................   1
     Sec. 2.05  Compensation...................................................................................   1
     Sec. 2.06  Effective Date.................................................................................   1
     Sec. 2.07  Election Date..................................................................................   2
     Sec. 2.08  Eligible Employee..............................................................................   2
     Sec. 2.09  Employer.......................................................................................   2
     Sec. 2.10  Exchange Act...................................................................................   2
     Sec. 2.11  Market Value...................................................................................   2
     Sec. 2.12  Participant....................................................................................   2
     Sec. 2.13  Participation Form.............................................................................   2
     Sec. 2.14  Plan...........................................................................................   2
     Sec. 2.15  Plan Year......................................................................................   2
     Sec. 2.16  Public Offering................................................................................   2
     Sec. 2.17  Purchase Date..................................................................................   3
     Sec. 2.18  Purchase Period................................................................................   3
     Sec. 2.19  Purchase Price.................................................................................   3
     Sec. 2.20  Stock..........................................................................................   3
     Sec. 2.21  Subsidiary.....................................................................................   3

ARTICLE III....................................................................................................   3
     Admission to Participation................................................................................   3
     Sec. 3.01  Initial Participation..........................................................................   3
     Sec. 3.02  Discontinuance of Participation................................................................   3
     Sec. 3.03  Readmission to Participation...................................................................   3

ARTICLE IV.....................................................................................................   4
     Stock Purchase and Resale.................................................................................   4
     Sec. 4.01  Reservation of Shares..........................................................................   4
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                              <C>
     Sec. 4.02  Limitation on Shares Available.................................................................   4
     Sec. 4.03  Purchase Price of Shares.......................................................................   5
     Sec. 4.04  Exercise of Purchase Privilege.................................................................   5
     Sec. 4.05  Payroll Deductions.............................................................................   5
     Sec. 4.06  Payment for Stock..............................................................................   6
     Sec. 4.07  Share Ownership; Issuance of Certificates......................................................   6
     Sec. 4.08  Distribution of Shares or Resale of Stock......................................................   7

ARTICLE V......................................................................................................   7
     Special Adjustments.......................................................................................   7
     Sec. 5.01  Shares Unavailable.............................................................................   7
     Sec. 5.02  AntiDilution Provisions........................................................................   8
     Sec. 5.03  Effect of Certain Transactions.................................................................   8

ARTICLE VI.....................................................................................................   8
     Miscellaneous.............................................................................................   8
     Sec. 6.01  Non-Alienation.................................................................................   8
     Sec. 6.02  Administrative Costs...........................................................................   8
     Sec. 6.03  Committee......................................................................................   9
     Sec. 6.04  Withholding of Taxes...........................................................................   9
     Sec. 6.05  Amendment of the Plan..........................................................................   9
     Sec. 6.06  Expiration and Termination of the Plan.........................................................   9
     Sec. 6.07  Repurchase of Stock............................................................................   9
     Sec. 6.08  Notice.........................................................................................   9
     Sec. 6.09  Government Regulation..........................................................................  10
     Sec. 6.10  Headings, Captions, Gender.....................................................................  10
     Sec. 6.11  Severability of Provisions, Prevailing Law.....................................................  10
</TABLE>

                                      ii
<PAGE>

                                   ARTICLE I
                                 Introduction

                  Sec. 1.01  Statement of Purpose. The purpose of the Esperion
Therapeutics, Inc. Employee Stock Purchase Plan is to provide eligible employees
of the Company and its subsidiaries an opportunity to purchase common stock of
the Company. The Board of Directors of the Company believes that employee
participation in stock ownership will be to the mutual benefit of the employees
and the Company. The Plan will be implemented if and when the Company has a
public offering of its stock. The Plan must be approved by the stockholders of
the Company within 12 months after the date on which the Plan is adopted.

                  Sec. 1.02  Internal Revenue Code Considerations. The Plan is
intended to constitute an "employee stock purchase plan" within the meaning of
section 423 of the Internal Revenue Code of 1986, as amended.

                  Sec. 1.03  ERISA Considerations. The Plan is not intended and
shall not be construed as constituting an "employee benefit plan," within the
meaning of section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended.

                                  ARTICLE II
                                  Definitions

                  Sec. 2.01  "Board of Directors" means the Board of Directors
of the Company.

                  Sec. 2.02  "Code" means the Internal Revenue Code of 1986, as
amended. References to specific sections of the Code shall be taken to be
references to corresponding sections of any successor statute.

                  Sec. 2.03  "Committee" means the committee appointed by the
Board of Directors to administer the Plan, as provided in Section 6.03.

                  Sec. 2.04  "Company" means Esperion Therapeutics, Inc., or any
successor by merger or otherwise.

                  Sec. 2.05  "Compensation" means a Participant's base wages and
overtime pay, before giving effect to any compensation reductions made in
connection with plans described in section 401(k) or 125 of the Code.

                  Sec. 2.06  "Effective Date" shall mean the date on which the
underwriting agreement between the Company and the principal underwriters for
the Company's Public Offering is executed.

                  Sec. 2.07  "Election Date" means 15 days before the Effective
Date and 15 days before each subsequent October 1, January 1, April 1 and July 1
thereafter, or such other dates
<PAGE>

as the Committee shall specify. The first Election Date for the Plan shall be 15
days before the Effective Date.

                  Sec. 2.08  "Eligible Employee" means each employee of the
Employer:

                  (i)    Who is employed by the Employer as an employee (and not
         as an independent contractor),

                  (ii)   Whose customary employment is for more than 20 hours
         per week and for more than five months per year, and

                  (iii)  Who is not deemed for purposes of section 423(b)(3) of
         the Code to own stock possessing five percent or more of the total
         combined voting power or value of all classes of stock of the Company
         or any subsidiary.

                  Sec. 2.09  "Employer" means the Company and each Subsidiary.

                  Sec. 2.10  "Exchange Act" means the Securities Exchange Act of
1934, as amended, and as the same may hereafter be amended.

                  Sec. 2.11  "Market Value" means the last price for the Stock
as reported on the principal market on which the Stock is traded for the date of
reference. If there was no such price reported for the date of reference,
"Market Value" means the last reported price for the Stock on the day next
preceding the date of reference for which such price was reported or, if there
was no such reported price, the fair market value as determined by the
Committee.

                  Sec. 2.12  "Participant" means each Eligible Employee who
elects to participate in the Plan.

                  Sec. 2.13  "Participation Form" means the instrument
prescribed by the Committee pursuant to which an Eligible Employee may enroll as
a Participant and subscribe for the purchase of shares of Stock on the terms and
conditions offered by the Company. The Participation Form is intended to
evidence the Company's offer of an option to the Eligible Employee to purchase
Stock on the terms and conditions set forth therein and herein.

                  Sec. 2.14  "Plan" means the Esperion Therapeutics, Inc.
Employee Stock Purchase Plan, as set forth herein and as hereafter amended.

                  Sec. 2.15  "Plan Year" means each calendar year during which
the Plan is in effect.

                  Sec. 2.16  "Public Offering" means the effective date of the
initial registration of the Company's Stock under Section 12(g) of the Exchange
Act.

                  Sec. 2.17  "Purchase Date" means the last day of each Purchase
Period.

                                       2
<PAGE>

                  Sec. 2.18  "Purchase Period" means each three-month period or
other period specified by the Committee, beginning on or after the Effective
Date, during which the Participant's Stock purchase is funded through payroll
deduction accumulations. The initial Purchase Period shall begin on the
Effective Date and end on September 30, 2000.

                  Sec. 2.19  "Purchase Price" means the purchase price for
shares of Stock purchased under the Plan, determined as set forth in Section
4.03.

                  Sec. 2.20  "Stock" means the common stock of the Company.

                  Sec. 2.21  "Subsidiary" means any present or future
corporation which (i) constitutes a "subsidiary corporation" of the Company as
that term is defined in section 424 of the Code and (ii) is designated as a
participating entity in the Plan by the Committee. Unless the Committee
specifically designates otherwise, a Canadian or other foreign subsidiary shall
not be considered a Subsidiary for purposes of the Plan, and employees of such a
subsidiary shall not be Eligible Employees.

                                  ARTICLE III
                          Admission to Participation

                  Sec. 3.01  Initial Participation. An Eligible Employee may
elect to participate in the Plan and may become a Participant effective as of
any Election Date, by executing and filing with the Committee a Participation
Form at such time in advance of the Election Date as the Committee shall
prescribe. The Participation Form shall remain in effect until it is modified
through discontinuance of participation under Section 3.02 or a change under
Section 4.05.

                  Sec. 3.02  Discontinuance of Participation. A Participant may
voluntarily cease his or her participation in the Plan and stop payroll
deductions at any time by filing a withdrawal form at such time in advance of
the effective date as the Committee shall prescribe. If a Participant ceases
participation in the Plan, the Participant may request payment of any funds held
in his or her account under the Plan, and the Participant may not again elect to
participate in the Plan until the next Election Date. Notwithstanding anything
in the Plan to the contrary, if a Participant ceases to be an Eligible Employee,
his or her participation automatically shall cease, no further purchase of Stock
shall be made for the Participant, and the Participant may request payment of
any funds held in his or her account under the Plan.

                  Sec. 3.03  Readmission to Participation. Any Eligible Employee
who has previously been a Participant, who has discontinued participation
(whether by cessation of eligibility or otherwise), and who wishes to be
reinstated as a Participant may again become a Participant by executing and
filing with the Committee a new Participation Form. Reinstatement to Participant
status shall be effective as of any Election Date, provided the

                                       3

<PAGE>

Participant files a new Participation Form with the Committee at such time in
advance of the Election Date as the Committee shall prescribe.

                                  ARTICLE IV
                           Stock Purchase and Resale

                  Sec. 4.01  Reservation of Shares. There shall be 500,000
shares of Stock reserved for issuance or transfer under the Plan, subject to
adjustment in accordance with Section 5.02. Except as provided in Section 5.02,
the aggregate number of shares of Stock that may be purchased under the Plan
shall not exceed the number of shares of Stock reserved under the Plan.

                  Sec. 4.02  Limitation on Shares Available.

                         (a)      The maximum number of shares of Stock that
may be purchased for each Participant on a Purchase Date is the lesser of (a)
the number of whole and fractional shares of Stock that can be purchased by
applying the full balance of the Participant's withheld funds to the purchase of
shares of Stock at the Purchase Price, or (b) the Participant's proportionate
part of the maximum number of shares of Stock available under the Plan, as
stated in Section 4.01.

                         (b)      Moreover, the maximum number of shares that
a Participant may purchase during a Purchase Period is 250,000 shares (subject
to the limits of Section 4.02(d) and subject to adjustment as described in
Section 5.02).

                         (c)      Notwithstanding the foregoing, if any person
entitled to purchase shares pursuant to any offering under the Plan would be
deemed for purposes of section 423(b)(3) of the Code to own stock (including any
number of shares of Stock that such person would be entitled to purchase under
the Plan) possessing five percent or more of the total combined voting power or
value of all classes of stock of Company, the maximum number of shares of Stock
that such person shall be entitled to purchase pursuant to the Plan shall be
reduced to that number which, when added to the number of shares of stock that
such person is deemed to own (excluding any number of shares of Stock that such
person would be entitled to purchase under the Plan), is one less than such five
percent. Any amounts withheld from a Participant's compensation that cannot be
applied to the purchase of Stock by reason of the foregoing limitation shall be
returned to the Participant as soon as practicable.

                         (d)      A Participant may not purchase shares of
Stock having an aggregate Market Value of more than $25,000, determined at the
beginning of each Purchase Period, for any calendar year in which one or more
offerings under this Plan are outstanding at any time, and a Participant may not
purchase a share of Stock under any offering after the expiration of the
Purchase Period for the offering.

                                       4
<PAGE>

                  Sec. 4.03  Purchase Price of Shares. Before the beginning of
each Purchase Period, the Committee shall establish the method for determining
the Purchase Price per share of the Stock to be sold to Participants for the
Purchase Period. The Purchase Price per share of Stock to be sold to
Participants for the initial Purchase Period beginning on the Effective Date
shall be the lower of (i) the Market Value per share on the Effective Date or
(ii) 85% of the Market Value per share on the Purchase Date. For subsequent
Purchase Periods, unless the Board of Directors determines otherwise, the
Purchase Price per share shall be the lower of (i) 85% of the Market Value of
such share on the first day of the Purchase Period or (ii) 85% of the Market
Value of such share on the Purchase Date. The Board of Directors may determine
that the Purchase Price shall be the Market Value, or a percentage of the Market
Value, on either of such dates or the lower of such dates, so long as the
percentage shall not be lower than 85% of such Market Value.

                  Sec. 4.04  Exercise of Purchase Privilege.

                         (a)      As of the first day of each Purchase Period,
each Participant shall be granted an option to purchase shares of Stock at the
Purchase Price specified in Section 4.03. The option shall continue in effect
through the Purchase Date for the Purchase Period. Subject to the provisions of
Section 4.02 above and Section 4.04(c), on each Purchase Date, the Participant
shall automatically be deemed to have exercised his or her option to purchase
shares of Stock, unless he or she notifies the Committee, in such manner and at
such time in advance of the Purchase Date as the Committee shall prescribe, of
his or her desire not to make such purchase.

                         (b)      Subject to the provisions of Section 4.02,
there shall be purchased for the Participant on each Purchase Date, at the
Purchase Price for the Purchase Period, the largest number of whole shares of
Stock as can be purchased with the amounts withheld from the Participant's
Compensation during the Purchase Period. Each such purchase shall be deemed to
have occurred on the Purchase Date occurring at the close of the Purchase Period
for which the purchase was made. Any amounts that are withheld from a
Participant's Compensation in a Purchase Period and that remain after the
purchase of whole shares of Stock on a Purchase Date will be held in the
Participant's account and applied on the Participant's behalf to purchase Stock
on the next Purchase Date.

                  Sec. 4.05  Payroll Deductions. Each Participant shall
authorize payroll deductions from his or her Compensation for the purpose of
funding the purchase of Stock pursuant to his or her Participation Form. In the
Participation Form, each Participant shall authorize an after-tax payroll
deduction from each payment of Compensation during the Purchase Period of an
amount not less than $25 per paycheck and not more than 15% of such
Participant's Compensation. A Participant may change the deduction to any
permissible level effective as of any Election Date. A change shall be made by
filing with the Committee a notice in such form and at such time in advance of
the Election Date on which the change is to be effective as the Committee shall
prescribe.

                                       5
<PAGE>

                  Sec. 4.06  Payment for Stock. The Purchase Price for all
shares of Stock purchased by a Participant under the Plan shall be paid out of
the Participant's authorized payroll deductions. All funds received or held by
the Company under the Plan are general assets of the Company, shall be held free
of any trust or other restriction, and may be used for any corporate purpose.

                  Sec. 4.07  Share Ownership; Issuance of Certificates.

                         (a)      The shares of Stock purchased by a Participant
on a Purchase Date shall, for all purposes, be deemed to have been issued or
sold at the close of business on the Purchase Date. Prior to that time, none of
the rights or privileges of a stockholder of the Company shall inure to the
Participant with respect to such shares of Stock. All the shares of Stock
purchased under the Plan shall be delivered by the Company in a manner as
determined by the Committee.

                         (b)      The Committee, in its sole discretion, may
determine that shares of Stock shall be delivered by (i) issuing and delivering
to the Participant a certificate for the number of shares of Stock purchased by
the Participant, (ii) issuing and delivering certificates for the number of
shares of Stock purchased to a firm which is a member of the National
Association of Securities Dealers, as selected by the Committee from time to
time, which shares shall be maintained by such firm in a separate brokerage
account for each Participant, or (iii) issuing and delivering certificates for
the number of shares of Stock purchased by Participants to a bank or trust
company or affiliate thereof, as selected by the Committee from time to time,
which shares may be held by such bank or trust company or affiliate in street
name, but with a separate account maintained by such entity for each Participant
reflecting such Participant's share interests in the Stock. Each certificate or
account, as the case may be, may be in the name of the Participant or, if he or
she so designates on the Participant's Participation Form, in the Participant's
name jointly with the Participant's spouse, with right of survivorship, or in
such other form as the Committee may permit.

                         (c)      The Committee, in its sole discretion, may
impose such restrictions or limitations as it shall determine on the resale of
Stock, the issuance of individual stock certificates or the withdrawal from any
stockholder accounts established for a Participant.

                         (d)      If, under Section 4.07(b), certificates for
Stock are held for the benefit of the Participant, any dividends payable with
respect to shares of Stock credited to a stockholder account of a Participant
will, at the Participant's election, either be (i) reinvested in shares of Stock
and credited to the Participant's account (with fractional shares credited in
cash) or (ii) paid directly to the Participant. If dividends are reinvested in
shares of Stock, such reinvestment shall be made based on the Market Value of
the Stock at the date of the reinvestment, with no discount from Market Value.

                                       6
<PAGE>

                  Sec. 4.08  Distribution of Shares or Resale of Stock.

                         (a)      A Participant may request a distribution of
shares of Stock purchased for the Participant under the Plan or order the sale
of such shares at any time by making a request in such form and at such time as
the Committee shall prescribe.

                         (b)      If a Participant terminates his or her
employment with the Employer or otherwise ceases to be an Eligible Employee, the
Participant shall receive a distribution of his or her shares of Stock held in
any stockholder account established pursuant to Section 4.07(b), unless the
Participant elects to have the shares of Stock sold in accordance with such
procedures as the Committee shall prescribe.

                         (c)      If a Participant is to receive a distribution
of shares of Stock, or if shares are to be sold, the distribution or sale shall
be made in whole shares of Stock, with fractional shares paid in cash. Any
brokerage commissions resulting from a sale of Stock shall be deducted from
amounts payable to the Participant.

                                   ARTICLE V
                              Special Adjustments

                  Sec. 5.01  Shares Unavailable. If, on any Purchase Date, the
aggregate funds available for the purchase of Stock would purchase a number of
shares in excess of the number of shares of Stock then available for purchase
under the Plan, the following events shall occur:

                         (a)      The number of shares of Stock that would
otherwise be purchased by each Participant shall be proportionately reduced on
the Purchase Date in order to eliminate such excess; and

                         (b)      The Plan shall automatically terminate
immediately after the Purchase Date as of which the supply of available shares
is exhausted.

                  Sec. 5.02  Anti-Dilution Provisions. The aggregate number of
shares of Stock reserved for purchase under the Plan, as provided in Section
4.01, the maximum number of shares that may be purchased by a Participant as
provided in Section 4.02(b), and the calculation of the Purchase Price per share
may be appropriately adjusted by the Committee to reflect any increase or
decrease in the number of issued shares of Stock resulting from a subdivision or
consolidation of shares or other capital adjustment, or the payment of a stock
dividend, or other increase or decrease in such shares, if effected without
receipt of consideration by the Company.

                  Sec. 5.03  Effect of Certain Transactions. Subject to any
required action by the stockholders, if the Company shall be the surviving
corporation in any merger or consolidation, any offering hereunder shall pertain
to and apply to the shares of stock of the

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<PAGE>

Company. However, in the event of a dissolution or liquidation of the Company,
or of a merger or consolidation in which the Company is not the surviving
corporation, the Plan and any offering hereunder shall terminate upon the
effective date of such dissolution, liquidation, merger or consolidation, unless
the Board determines otherwise, and the balance of any amounts withheld from a
Participant's Compensation which have not by such time been applied to the
purchase of Stock shall be returned to the Participant.

                                  ARTICLE VI
                                Miscellaneous.

                  Sec. 6.01  Non-Alienation. Except as set forth below, the
right to purchase shares of Stock under the Plan is personal to the Participant,
is exercisable only by the Participant during the Participant's lifetime and may
not be assigned or otherwise transferred by the Participant. If a Participant
dies, unless the executor, administrator or other personal representative of the
deceased Participant directs otherwise, any amounts previously withheld from the
Participant's Compensation during the Purchase Period in which the Participant
dies shall be used to purchase Stock on the Purchase Date for the Purchase
Period. After that Purchase Date, there shall be delivered to the executor,
administrator or other personal representative of the deceased Participant all
shares of Stock and such residual amounts as may remain to the Participant's
credit under the Plan.

                  Sec. 6.02  Administrative Costs. The Company shall pay the
administrative expenses associated with the operation of the Plan (other than
brokerage commissions resulting from sales of Stock directed by Participants).

                  Sec. 6.03  Committee. The Board of Directors shall appoint a
Committee, which shall have the authority and power to administer the Plan and
to make, adopt, construe, and enforce rules and regulations not inconsistent
with the provisions of the Plan. The Committee shall adopt and prescribe the
contents of all forms required in connection with the administration of the
Plan, including, but not limited to, the Participation Form, payroll withholding
authorizations, requests for distribution of shares, and all other notices
required hereunder. The Committee shall have the fullest discretion permissible
under law in the discharge of its duties. The Committee's interpretations and
decisions with respect to the Plan shall be final and conclusive.

                  Sec. 6.04  Withholding of Taxes. All acquisitions and sales of
Stock under the Plan shall be subject to applicable federal (including FICA),
state and local tax withholding requirements if the Internal Revenue Service or
other taxing authority requires such withholding. The Company may require that
Participants pay to the Company (or make other arrangements satisfactory to the
Company for the payment of) the amount of any federal, state or local taxes that
the Company is required to withhold with respect to the purchase of Stock or the
sale of Stock acquired under the Plan, or the Company may deduct from the
Participant's wages or other compensation the amount of any withholding taxes
dues with respect to the purchase of Stock or the sale of Stock acquired under
the Plan.

                                       8
<PAGE>

                  Sec. 6.05  Amendment of the Plan. The Board of Directors may,
at any time and from time to time, amend the Plan in any respect, except that
any amendment that is required to be approved by the stockholders under Section
423 of the Code shall be submitted to the stockholders of the Company for
approval.

                  Sec. 6.06  Expiration and Termination of the Plan. The Plan
shall continue in effect for ten years from the Effective Date, unless
terminated prior to that date pursuant to the provisions of the Plan or pursuant
to action by the Board of Directors. The Board of Directors shall have the right
to terminate the Plan at any time without prior notice to any Participant and
without liability to any Participant. Upon the expiration or termination of the
Plan, the balance, if any, then standing to the credit of each Participant from
amounts withheld from the Participant's Compensation which has not, by such
time, been applied to the purchase of Stock shall be refunded to the
Participant.

                  Sec. 6.07  Repurchase of Stock. The Company shall not be
required to purchase or repurchase from any Participant any of the shares of
Stock that the Participant acquires under the Plan.

                  Sec. 6.08  Notice. A Participation Form and any notice that a
Participant files pursuant to the Plan shall be on the form prescribed by the
Committee and shall be effective only when received by the Committee. Delivery
of such forms may be made by hand or by certified mail, sent postage prepaid, to
the Company's corporate headquarters, or such other address as the Committee may
designate. Delivery by any other mechanism shall be deemed effective at the
option and discretion of the Committee.

                  Sec. 6.09  Government Regulation. The Company's obligation to
sell and to deliver the Stock under the Plan is at all times subject to all
approvals of any governmental authority required in connection with the
authorization, issuance, sale or delivery of such Stock.

                  Sec. 6.10  Headings, Captions, Gender. The headings and
captions herein are for convenience of reference only and shall not be
considered as part of the text. The masculine shall include the feminine, and
vice versa.

                  Sec. 6.11  Severability of Provisions, Prevailing Law. The
provisions of the Plan shall be deemed severable. In the event any such
provision is determined to be unlawful or unenforceable by a court of competent
jurisdiction or by reason of a change in an applicable statute, the Plan shall
continue to exist as though such provision had never been included therein (or,
in the case of a change in an applicable statute, had been deleted as of the
date of such change). The Plan shall be governed by the laws of the State of
Delaware to the extent such laws are not in conflict with, or superseded by,
federal law.

                                       9

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