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Exhibit 10.9    
    

STOCK PURCHASE AGREEMENT  

        THIS STOCK PURCHASE AGREEMENT ("Agreement"), dated as of December 18, 2002, is by and between Duan Wei, an individual ("PURCHASER"), and China
Hospitals, Inc., a Delaware corporation ("SELLER") (collectively, the "PARTIES"). 

W I T N E S S E T H  

        WHEREAS, PURCHASER is Seller's founder. 

        WHEREAS,
SELLER has offered for sale to PURCHASER shares of common stock of SELLER (the "Shares") in return for consulting services. 

        WHEREAS,
SELLER desires to sell to PURCHASER and PURCHASER desires to purchase from SELLER, 20,000 Shares upon the terms and conditions set forth herein. 

        NOW
THEREFORE, in consideration of the promises and respective mutual agreements herein contained, it is agreed by and between the PARTIES hereto as follows: 

ARTICLE 1

SALE AND PURCHASE OF THE SHARES  

        1.1    Sale of the Shares.    Upon execution of this Agreement (the "Closing"), subject to the terms and conditions
herein set forth, and on the basis of the representations, warranties and agreements herein contained, SELLER shall sell to PURCHASER, and PURCHASER shall purchase from SELLER, the Shares. 

        1.2    Instruments of Conveyance and Transfer.    As soon as practicable after the Closing, SELLER shall deliver a
certificate or certificates representing the Shares of SELLER to PURCHASER sufficient to transfer all right, title and interest in the Shares to PURCHASER. 

        1.3    Consideration and Payment for the Shares.    In consideration for the Shares, PURCHASER has provided consulting
services valued at $20 ($0.001 per Share). 

ARTICLE 2

REPRESENTATIONS AND COVENANTS OF SELLER AND PURCHASER  

        2.1    SELLER hereby represents and warrants that:    

        (a)   The
Shares issued hereunder (the "Shares") have been duly authorized by the appropriate corporate action of SELLER. 

        (b)   SELLER
shall transfer title, in and to the Shares to PURCHASER free and clear of all liens, security interests, pledges, encumbrances, charges, restrictions, demands and
claims, of any kind and nature whatsoever, whether direct or indirect or contingent. 

        (c)   As
soon as practicable after the Closing Date, SELLER shall deliver to PURCHASER a certificate or certificates representing the Shares subject to no liens, security
interests, pledges, encumbrances, charges, restrictions, demands or claims in any other party whatsoever, except as set forth in the legend on the certificate, which legend shall provide substantially
as follows: 

THE
SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN OPINION OF COUNSEL THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE. 

        (d)   PURCHASER
acknowledges that the Shares will initially be "restricted securities" (as such term is defined in Rule 144 promulgated under the Securities Act of
1933, as amended 

 

("Rule 144"),
that the Shares will include the foregoing restrictive legend, and, except as otherwise set forth in this Agreement, that the Shares cannot be sold unless registered with the
United States Securities and Exchange Commission ("SEC") and qualified by appropriate state securities regulators, or unless PURCHASER obtains written consent from SELLER and otherwise complies with
an exemption from such registration and qualification (including, without limitation, compliance with Rule 144). 

        (e)   The
Company is obligated to register the Shares in any registration statement filed by the Company with the Securities and Exchange Commission after the Closing Date, so
that holders of the Shares shall be entitled to sell the same simultaneously with and upon the terms and conditions as the securities sold for the account of the Company are being sold pursuant to any
such registration statement, subject to such lock-up provisions as may be proposed by the underwriter of said registration statement (the "Piggyback Registration Right"). 

        (e)   PURCHASER
acknowledges and agrees that SELLER makes no other representations or warranties with respect to the Shares or the SELLER. 

        2.2    PURCHASER represents and warrants to SELLER as follows:    

        (a)   PURCHASER
has adequate means of providing for current needs and contingencies, has no need for liquidity in the investment, and is able to bear the economic risk of an
investment in the Shares offered by SELLER of the size contemplated. PURCHASER represents that PURCHASER is able to bear the economic risk of the investment and at the present time could afford a
complete loss of such investment. PURCHASER has had a full opportunity to inspect the books and records of the SELLER and to make any and all inquiries of SELLER officers and directors regarding the
SELLER and its business as PURCHASER has deemed appropriate. 

        (b)   PURCHASER
is an "Accredited Investor" as defined in Regulation D of the Securities Act of 1933 (the "Act") or PURCHASER, either alone or with PURCHASER's
professional advisers who are unaffiliated with, have no equity interest in and are not compensated by SELLER or any affiliate or selling agent of SELLER, directly or indirectly, has sufficient
knowledge and experience in financial
and business matters that PURCHASER is capable of evaluating the merits and risks of an investment in the Shares offered by SELLER and of making an informed investment decision with respect thereto
and has the capacity to protect PURCHASER's own interests in connection with PURCHASER's proposed investment in the Shares. 

        (c)   PURCHASER
is acquiring the Shares solely for PURCHASER'S own account as principal, for investment purposes only and not with a view to the resale or distribution
thereof, in whole or in part, and no other person or entity has a direct or indirect beneficial interest in such Shares. 

        (d)   PURCHASER
will not sell or otherwise transfer the Shares without registration under the Act or an exemption therefrom and fully understands and agrees that PURCHASER
must bear the economic risk of PURCHASER'S purchase for an indefinite period of time because, among other reasons, the Shares have not been registered under the Act or under the securities laws of any
state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Act and under the applicable securities laws of such states or
unless an exemption from such registration is available. 

ARTICLE 3

MISCELLANEOUS  

        3.1    Entire Agreement.    This Agreement sets forth the entire agreement and understanding of the parties hereto
with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements and understandings related to the subject matter hereof. No understanding, 

2

 

promise,
inducement, statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been made by any party hereto
which is not embodied in this Agreement or the written statements, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no party
hereto shall be bound by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant or condition not so set forth. 

        3.2    Notices.    Any notice, request, instruction, or other document required by the terms of this Agreement, or
deemed by any of the parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by facsimile, personal delivery, overnight delivery, or mailed by
registered or certified mail, postage prepaid, with return receipt requested. If notice is given by facsimile, personal delivery, or overnight delivery in accordance with the provisions of this
Section, said notice shall be conclusively deemed given at the time of such delivery. If notice is given by mail in accordance with the
provisions of this Section, such notice shall be conclusively deemed given seven days after deposit thereof in the United States mail. 

        3.3    Waiver and Amendment.    Any term, provision, covenant, representation, warranty or condition of this Agreement
may be waived, but only by a written instrument signed by the party entitled to the benefits thereof. The failure or delay of any party at any time or times to require performance of any provision
hereof or to exercise its rights with respect to any provision hereof shall in no manner operate as a waiver of or affect such party's right at a later time to enforce the same. No waiver by any party
of any condition, or of the breach of any term, provision, covenant, representation or warranty contained in this Agreement, in any one or more instances, shall be deemed to be or construed as a
further or continuing waiver of any such condition or breach or waiver of any other condition or of the breach of any other term, provision, covenant, representation or warranty. No modification or
amendment of this Agreement shall be valid and binding unless it be in writing and signed by all parties hereto. 

        3.4    Choice of Law.    This Agreement and the rights of the parties hereunder shall be governed by and construed in
accordance with the laws of the State of California including all matters of construction, validity, performance, and enforcement and without giving effect to the principles of conflict of laws. 

        3.5    Jurisdiction.    The parties submit to the jurisdiction of the Courts of the County of Orange, State of
California or a Federal Court empaneled in the State of California for the resolution of all legal disputes arising under the terms of this Agreement, including, but not limited to, enforcement of any
arbitration award. 

        3.6    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which shall together constitute one and the same instrument. 

        3.7    Attorneys' Fees.    Except as otherwise provided herein, if a dispute should arise between the parties
including, but not limited to arbitration, the prevailing party shall be reimbursed by the non-prevailing party for all reasonable expenses incurred in resolving such dispute, including
reasonable attorneys' fees exclusive of such amount of attorneys' fees as shall be a premium for result or for risk of loss under a contingency fee arrangement. 

        3.8    Taxes.    Any income taxes required to be paid in connection with the payments due hereunder, shall be borne by
the party required to make such payment. Any withholding taxes in the nature of a tax on income shall be deducted from payments due, and the party required to withhold such tax shall furnish to the
party receiving such payment all documentation necessary to prove the proper amount to withhold of such taxes and to prove payment to the tax authority of such required withholding. 

        SIGNATURES
ON NEXT PAGE 

3

   
        IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as of the date first written hereinabove. 

SELLER  

	CHINA HOSPITALS, INC.,

a Delaware corporation	 	 
	

  
 By: Frank Hu, Ph.D.

Its: Chairman & CEO	
 	

 

PURCHASER  

 PLEASE CHECK ONE:  

	I.
	If
I am an individual, I certify that I am an "accredited investor" because:

	o
	I
had an individual income of more than $200,000 in each of the two most recent calendar years, and I reasonably expect to have an
individual income in excess of $200,000 in the current calendar year; or my spouse and I had joint income in excess of $300,000 in each of the two most recent calendar years, and we reasonably expect
to have a joint income in excess of $300,000 in the current calendar year. 

 OR  

	o
	I
have an individual net worth, or my spouse and I have a joint net worth, in excess of $1,000,000 (including home and personal property).

	II.
	If
PURCHASER is a corporation, partnership, employee benefit plan or IRA, it certifies as follows:

	A.
	Has
the subscribing entity been formed for the specific purpose of investing in the Securities? 

YES                                       
         NO

If
your answer to question A is "No" CHECK whichever of the following statements (1-5) is applicable to you. If your answer to question A is "Yes" the subscribing entity must be able to
certify to statement (B) below in order to qualify as an "accredited investor". 

        The
undersigned entity certifies that it is an "accredited investor" because it is: 

	1.
	o    an employee benefit plan within the meaning of Title I of the Employee
Retirement Income Security Act of 1974, provided that the investment decision is made by a plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is a bank, savings and
loan association, insurance company or registered investment adviser; or

	2.
	o    an employee benefit plan within the meaning of Title I of the Employee
Retirement Income Security Act of 1974 that has total assets in excess of $5,000,000; or

	3.
	o    each of its shareholders, partners, or beneficiaries meets at least one of
the following conditions described above under Individual Accredited Investor Status. Please also CHECK the appropriate space in that section; or

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	4.
	o    the plan is a self directed employee benefit plan and the investment
decision is made solely by a person that meets at least one of the conditions described above under Individual Accredited Investor Status; or

	5.
	o    a corporation, a partnership or a Massachusetts or similar business trust
with total assets in excess of $5,000,000.

 

	B.
	If the answer to Question A above is "Yes," please certify the statement below is true and correct:

	o
	The
undersigned entity certifies that it is an accredited investor because each of its
shareholder or beneficiaries meets at least one of the following conditions described above under Individual Accredited Investor Status. Please also CHECK the appropriate space in that section.

 

	III.
	If PURCHASER is a Trust, it certifies as follows:

	A.
	Has
the subscribing entity been formed for the specific purpose of investing in the Securities? 

YES                                       
         NO
 

If
your answer to question A is "No" CHECK whichever of the following statements (1-3) is applicable to the subscribing entity. If your answer to question A is "Yes" the subscribing entity
must be able to certify to the statement (3) below in order to qualify as an "accredited investor". 

        The
undersigned trustee certifies that the trust is an "accredited investor" because: 

	o
	1)    the trust has total assets in excess of $5,000,000 and the investment
decision has been made by a "sophisticated person"; or

	o
	2)    the trustee making the investment decision on its behalf is a bank (as
defined in Section 3(a)(2) of the Act), a saving and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, acting in its fiduciary capacity;  or

	o
	3)    the undersigned trustee certifies that the trust is an accredited investor
because the grantor(s) of the trust may revoke the trust at any time and regain title to the trust assets and has (have) retained sole investment control over the assets of the trust and the (each)
grantor(s) meets at least one of the following conditions described above under Individual Accredited Investor Status. Please also CHECK the appropriate space in that section. 

	Print Name: Duan Wei	 	 
	

/s/  DUAN WEI      
 [Signature]	
 	

 
	

  
 Address	
 	

 
	

  
 Address	
 	

 
	

  
 Social Security/Tax I.D. Number	
 	

 

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Exhibit 10.10    
    

CHINA HOSPITALS, INC.  

 
 

2003 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN    
    

	1.
	Purpose

        This
Incentive and Nonstatutory Stock Option Plan (the "Plan") is intended to further the growth and financial success of China Hospitals, Inc., a Delaware corporation (the
"Corporation") by providing additional incentives to selected employees, directors, and consultants to the Corporation or parent corporation or subsidiary corporation of the Corporation as those terms
are defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended (the "Code") (such parent corporations and subsidiary corporations hereinafter collectively referred to as
"Affiliates") so that such employees, directors, and consultants may acquire or increase their proprietary interest in the Corporation. Stock options granted under the Plan (hereinafter "Options") may
be either "Incentive Stock Options," as defined in Section 422A of the Code and any regulations promulgated under said Section, or "Nonstatutory Options" at the discretion of the Board of
Directors of the Corporation (the "Board") and as reflected in the respective written stock option agreements granted pursuant hereto. 

	2.
	Administration

        The
Plan shall be administered by the Board of Directors of the Corporation; provided however, that the Board may delegate such administration to the Corporation's Compensation Committee
of not fewer than three (3) members (the "Committee"), at least two (2) of whom are members of the Board and all of whom are disinterested administrators, as contemplated by
Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended ("Rule 16b-3"); and provided further, that the foregoing requirement for
disinterested administrators shall not apply prior to the date of the first registration of any of the securities of the Corporation under the Securities Act of 1933, as amended. 

        Subject
to the provisions of the Plan, the Board and/or the Committee shall have authority to (a) grant, in its discretion, Incentive Stock Options in accordance with
Section 422A of the Code or Nonstatutory Options; (b) determine in good faith the fair market value of the stock covered by an Option; (c) determine which eligible persons shall
be granted Options and the number of shares to be covered thereby and the term thereof; (d) construe and interpret the Plan; (e) promulgate, amend and rescind rules and regulations
relating to its administration, and correct defects, omissions, and inconsistencies in the Plan or any Option; (f) consistent with the Plan and with the consent of the optionee, as appropriate,
amend any outstanding Option or amend the exercise date or dates thereof; (g) determine the duration and purpose of leaves of absence which may be granted to optionholders without constituting
termination of their employment for the purpose of the Plan; and (h) make all other determinations necessary or advisable for the Plan's administration. The interpretation and construction by
the Board of any provisions of the Plan or of any Option it shall be conclusive and final. No member of the Board or the Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any Option. 

	3.
	Eligibility

        The
persons who shall be eligible to receive Options shall be employees, directors, or consultants of the Corporation or any of its Affiliates ("Optionees"). The term consultant shall
mean any person who is engaged by the Corporation to render services and is compensated for such services, and any director of the Corporation whether or not compensated for such services; provided
that, if the Corporation registers any of its securities pursuant to the Securities Act of 1933, as amended (the "Act"), the term consultant shall thereafter not include directors who are not
compensated for their services or are paid only a director fee by the Corporation. 

 

        (a)   Incentive Stock Options. Incentive Stock Options may only be issued to employees of the Corporation or its Affiliates.
Incentive Stock Options may be granted to officers, whether or not they are directors, but a director shall not be granted an Incentive Stock Option unless such director is also an employee of the
Corporation. Payment of a director fee shall not be sufficient to constitute employment by the Corporation. Any grant of option to an officer or director of the Corporation subsequent to the first
registration of any of the securities of the Corporation under the Act shall comply with the requirements of Rule 16b-3. An optionee may hold more than one Option. 

        The
Corporation shall not grant an Incentive Stock Option under the Plan to any employee if such grant would result in such employee holding the right to exercise for the first time in
any one calendar year, under all options granted to such employee under the Plan or any other stock option plan maintained by the Corporation or any Affiliate, with respect to shares of stock having
an aggregate fair market value, determined as of the date of the Option is granted, in excess of one hundred thousand dollars ($100,000). Should it be determined that an Incentive Stock Option granted
under the Plan exceeds such maximum for any reason other than a failure in good faith to value the stock subject to such option, the excess portion of such option shall be considered a Nonstatutory
Option. If, for any reason, an entire option does not qualify as an Incentive Stock Option by reason of exceeding such maximum, such option shall be considered a Nonstatutory Option. 

        (b)   Nonstatutory Option. The provisions of the foregoing Section 3(a) shall not apply to any option designated as a
"Nonstatutory Stock Option Agreement" or which sets forth the intention of the parties that the option be a Nonstatutory Option. 

	4.
	Stock

        The
stock subject to Options shall be the shares of the Corporation's authorized but unissued or reacquired Common Stock (the "Stock"). 

        (a)   Number of Shares. Subject to adjustment as provided in Paragraph 5(h) of this Plan, the total number of shares of
Stock which may be purchased through exercise of Options granted under this Plan shall not exceed seven hundred thousand (700,000) shares in any one calendar year. If any Option shall for any reason
terminate or expire, any shares allocated thereto but remaining unpurchased upon such expiration or termination shall again be available for the grant of Options with respect thereto under this Plan
as though no Option had been granted with respect to such shares. 

        (b)   Reservation of Shares. The Corporation shall reserve and keep available at all times during the term of the Plan such
number of shares as shall be sufficient to satisfy the requirements of the Plan. If, after reasonable efforts, which efforts shall not include the registration of the Plan or Options under the Act,
the Corporation is unable to obtain authority from any applicable regulatory body, which authorization is deemed necessary by legal counsel for the Corporation for the lawful issuance of shares
hereunder, the Corporation shall be relieved of any liability with respect to its failure to issue and sell the shares for which such requisite authority was so deemed necessary unless and until such
authority is obtained. 

	5.
	Terms and Conditions of Options

        Options
granted hereunder shall be evidenced by agreements between the Corporation and the respective Optionees, in such form and substance as the Board or Committee shall from time to
time approve. Such agreements need not be identical, and in each case may include such provisions as the Board or Committee may determine, but all such agreements shall be subject to and limited by
the following terms and conditions: 

        (a)   Number of Shares: Each Option shall state the number of shares to which it pertains. 

2

 

        (b)   Option Price: Each Option shall state the Option Price, which shall be determined as follows: 

        (i)    Any
Option granted to a person who at the time the Option is granted owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of value of all classes of stock of the Corporation, or of any Affiliate, ("Ten Percent Holder") shall have an Option Price of no less than one
hundred ten percent (110%) of the fair market value of the common stock as of the date of grant; and 

        (ii)   Incentive
Stock Options granted to a person who at the time the Option is granted is not a Ten Percent Holder shall have an Option price of no less than one hundred
percent (100%) of the fair market value of the common stock as of the date of grant. 

        (iii)  Nonstatutory
Options granted to a person who at the time the Option is granted is not a Ten Percent Holder shall have an Option Price determined by the Board as of the
date of grant. 

        For
the purposes of this paragraph 5(b), the fair market value shall be as determined by the Board, in good faith, which determination shall be conclusive and binding, at the date
of grant of the Option; provided however, that if there is a public market for such stock, the fair market value per share shall be the average of the bid and asked prices (or the closing price if
such stock is listed on the NASDAQ National Market System) on the date of grant of the Option, or if listed on a stock exchange, the closing price on such exchange on such date of grant. 

        (c)   Medium and Time of Payment: To the extent permissible by applicable law, the Option price shall be paid, at the
discretion of the Board or Committee, at either the time of grant or the time of exercise of the Option (i) in cash or by check, (ii) by delivery of other common stock of the
Corporation, provided such tendered stock was not acquired directly or indirectly from the Corporation, or, if acquired from the Corporation, has been held by the Optionee for more than six
(6) months, (iii) by the Optionee's promissory note in a form satisfactory to the Corporation and bearing interest at a rate determined by the Board, in its sole discretion, but in no
event less than 6% per annum, or (iv) such other form of legal consideration permitted by State law as may be acceptable to the Board. 

        (d)   Term and Exercise of Options: Any Option granted to an Employee of the Corporation shall become exercisable over a period
of no longer than ten (10) years, and no less than twenty-percent (20%) of the shares covered thereby shall become exercisable annually. No Option shall be exercisable, in whole or in part,
prior to one (1) year from the date it is granted unless the Board or Committee shall specifically determine otherwise, as provided herein. In no event shall any Option be exercisable after the
expiration of ten (10) years from the date it is granted. Unless otherwise specified by the Board or the Committee in the resolution authorizing such option, the date of grant of an Option
shall be deemed to be the date upon which the Board or the Committee authorizes the granting of such Option. 

        Each
Option shall be exercisable to the nearest whole share, in installments or otherwise, as the respective option agreements may provide. During the lifetime of an Optionee, the Option
shall be exercisable only by the Optionee and shall not be assignable or transferable by the Optionee, and no other person shall acquire any rights therein. To the extent not exercised, installments
(if more than one) shall accumulate, but shall be exercisable, in whole or in part, only during the period for exercise as stated in the option agreement, whether or not other installments are then
exercisable. Each Option may be exercised in whole or in part at any time during the term of the Option by written notice to the Corporation. 

3

 

        (e)   Termination of Status as Employee, Director, or Consultant: If Optionee's status as an employee, director, or consultant
shall terminate for any reason, then the Optionee (or if the Optionee shall die after such termination, but prior to exercise, Optionee's personal representative or the person entitled to succeed to
the Option) shall have the right to exercise any vested Options, in whole or in part, at any time after such termination during the remaining term of the Option; provided, however, that the Board or
Committee may specify a shorter period for exercise following termination as the Board or Committee deems reasonable and appropriate, but not shorter than six (6) months in the event Optionee's
termination was caused by permanent disability within the meaning of Section 22(e)(3) of the Code. The Option may be exercised only with respect to installments that the Optionee could have
exercised at the date of termination of employment. Nothing contained herein or in any Option granted pursuant hereto shall be construed to affect or restrict in any way the right of the Corporation
to terminate the employment of an Optionee with or without cause. 

        (f)    Death of Optionee: If an Optionee dies while employed or engaged as a director or consultant by the Corporation or an
Affiliate, the portion of such Optionee's Option or Options which were exercisable at the date of death may be exercised, in whole or in part, by the estate of the decedent or by a person succeeding
to the right to exercise such Option or Options, at any time within the remaining term of the Option, but only to the extent, that Optionee could have exercised the Option as of the date of Optionee's
death; provided, in any case, that the Option may be so exercised only to the extent that the Option has not previously been exercised by Optionee. 

        (g)   Nontransferability of Option: No Option shall be transferable by the Optionee, except by will or by the laws of descent
and distribution. 

        (h)   Recapitalization: Subject to any required action by the stockholders, the number of shares of common stock covered by
each outstanding Option, and the price per share thereof set forth in each such Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of common stock of
the Corporation resulting from a subdivision or consolidation of shares or the payment of a stock dividend, or any other increase or decrease in the number of such shares affected without receipt of
consideration by the Corporation. 

        Subject
to any required action by the stockholders, if the Corporation shall be the surviving entity in any merger or consolidation, each outstanding Option thereafter shall pertain to
and apply to the securities to which a holder of shares of common stock equal to the shares subject to the Option would have been entitled by reason of such merger or consolidation. A dissolution or
liquidation of the Corporation or a merger or consolidation in which the Corporation is not the surviving entity shall cause each outstanding Option to terminate on the effective date of such
dissolution, liquidation, merger or consolidation. In such event, if the entity which shall be the surviving entity does not tender to Optionee an offer, for which it has no obligation to do so, to
substitute for any unexercised Option a stock option or capital stock of such surviving entity, as applicable, which on an equitable basis shall provide the Optionee with substantially the same
economic benefit as such unexercised Option, then the Board may grant to such Optionee, but shall not be obligated to do so, the right for a period commencing thirty (30) days prior to and
ending immediately prior to such dissolution, liquidation, merger or consolidation or during the remaining term of the Option, whichever is the lesser, to exercise any unexpired Option or Options,
without regard to the installment provisions of Paragraph 5(d) of this Plan; provided, that any such right granted shall be granted to all Optionees not receiving an offer to substitute on a
consistent basis, and provided further, that any such exercise shall be subject to the consummation of such dissolution, liquidation, merger or consolidation. 

        In
the event of a change in the common stock of the Corporation as presently constituted, which is limited to a change of all of its authorized shares without par value into the same
number of shares with a par value, the shares resulting from any such change shall be deemed to be the common stock within the meaning of this Plan. 

4

 

        To
the extent that the foregoing adjustments relate to stock or securities of the Corporation, such adjustments shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. Except as expressly provided in this Paragraph 5(h), the Optionee shall have no rights by reason of any subdivision or consolidation of shares of stock or any
class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class, and the number or price of shares of common stock subject to any Option
shall not be affected by, and no adjustment shall be made by reason of, any dissolution, liquidation, merger or consolidation, or any issue by the Corporation of shares of stock of any class or
securities convertible into shares of stock of any class. 

        The
grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Corporation to make any adjustments, reclassifications, reorganizations or changes in
its capital or business structure or to merge, consolidate, dissolve, or liquidate or to sell or transfer all or any part of its business or assets. 

        (i)    Rights as a Stockholder: An Optionee shall have no rights as a stockholder with respect to any shares covered by an
Option until the date of the issuance of a stock certificate to Optionee for such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Paragraph 5(h) hereof. 

        (j)    Modification, Acceleration, Extension, and Renewal of Options: Subject to the terms and conditions and within the
limitations of the Plan, the Board may modify an Option, or once an Option is exercisable, accelerate the rate at which it may be exercised, and may extend or renew outstanding Options granted under
the Plan or accept the surrender of outstanding Options (to the extent not theretofore exercised) and authorize the granting of new Options in substitution for such Options, provided such action is
permissible under Section 422A of the Code and state law. 

        Notwithstanding
the foregoing provisions of this Paragraph 5(j), however, no modification of an Option shall, without the consent of the Optionee, alter to the Optionee's
detriment or impair any rights or obligations under any Option theretofore granted under the Plan. 

        (k)   Investment Intent: Unless and until the issuance and sale of the shares subject to the Plan are registered under the Act,
each Option under the Plan shall provide that the purchases of stock thereunder shall be for investment purposes and not with a view to, or for resale in connection with, any distribution thereof.
Further, unless the issuance and sale of the stock have been registered under the Act, each Option shall provide that no shares shall be purchased upon the exercise of such Option unless and until
(i) any then applicable requirements of state and federal laws and regulatory agencies shall have been fully complied with to the satisfaction of the Corporation and its counsel, and
(ii) if requested to do so by the Corporation, the person exercising the Option shall (i) give written assurances as to knowledge and experience of such person (or a representative
employed by such person) in financial and business matters and the ability of such person (or representative) to evaluate the merits and risks of exercising the Option, and (ii) execute and
deliver to the Corporation a letter of investment intent, all in such form and substance as the Corporation may require. If shares are issued upon exercise of an Option without registration under the
Act, subsequent registration of such shares shall relieve the purchaser thereof of any investment restrictions or representations made upon the exercise of such Options. 

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        (l)    Exercise Before Exercise Date: At the discretion of the Board, the Option may, but need not, include a provision whereby
the Optionee may elect to exercise all or any portion of the Option prior to the stated exercise date of the Option or any installment thereof. Any shares so purchased prior to the stated exercise
date shall be subject to repurchase by the Corporation upon termination of Optionee's employment as contemplated by Paragraphs 5(e), 5(f) and 5(g) hereof prior to the exercise date stated in the
Option and such other restrictions and conditions as the Board or Committee may deem advisable. 

        (m)  Other Provisions: The Option agreements authorized under this Plan shall contain such other provisions, including,
without limitation, restrictions upon the exercise of the Options, as the Board or the Committee shall deem advisable. Shares shall not be issued pursuant to the exercise of an Option, if the exercise
of such Option or the issuance of shares thereunder would violate, in the opinion of legal counsel for the Corporation, the provisions of any applicable law or the rules or regulations of any
applicable governmental or administrative agency or body, such as the Act, the Securities Exchange Act of 1934, the rules promulgated under the foregoing or the rules and regulations of any exchange
upon which the shares of the Corporation are listed. 

	6.
	Availability of Information

        During
the term of the Plan and any additional period during which an Option granted pursuant to the Plan shall be exercisable, the Corporation shall make available, not later than one
hundred and twenty (120) days following the close of each of its fiscal years, such financial and other information regarding the Corporation as is required by the bylaws of the Corporation and
applicable law to be furnished in an annual report to the stockholders of the Corporation. 

	7.
	Effectiveness of Plan; Expiration

        Subject
to approval by the stockholders of the Corporation, this Plan shall be deemed effective as of the date it is adopted by the Board. The Plan shall expire on May 1, 2013,
but such expiration shall not affect the validity of outstanding Options. 

	8.
	Amendment and Termination of the Plan

        The
Board may, insofar as permitted by law, from time to time, with respect to any shares at the time not subject to Options, suspend or terminate the Plan or revise or amend it in any
respect whatsoever, except that without the approval of the stockholders of the Corporation, no such revision or amendment shall (i) increase the number of shares subject to the Plan,
(ii) decrease the price at which Options may be granted, (iii) materially increase the benefits to Optionees, or (iv) change the class of persons eligible to receive Options under
this Plan; provided, however, no such action shall alter or impair the rights and obligations under any Option outstanding as of the date thereof without the written consent of the Optionee
thereunder. No Option may be granted while the Plan is suspended or after it is terminated, but the rights and obligations under any Option granted while the Plan is in effect shall not be impaired by
suspension or termination of the Plan. 

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	9.
	Indemnification of Board

        In
addition to such other rights or indemnifications as they may have as directors or otherwise, and to the extent allowed by applicable law, the members of the Board and the Committee
shall be indemnified by the Corporation against the reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any claim, action, suit or
proceeding, or in connection with any appeal thereof, to which they or any of them may be a party by reason of any action taken, or failure to act, under or in connection with the Plan or any Option
granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Corporation) or paid by them in
satisfaction of a judgment in any such claim, action, suit or proceeding, except in any case in relation to matters as to which it shall be adjudged in such claim, action, suit or proceeding that such
Board member is liable for negligence or misconduct in the performance of his or her duties; provided that within sixty (60) days after institution of any such action, suit or Board proceeding
the member involved shall offer the Corporation, in writing, the opportunity, at its own expense, to handle and defend the same. 

	10.
	Application of Funds

        The
proceeds received by the Corporation from the sale of common stock pursuant to the exercise of Options will be used for general corporate purposes. 

	11.
	No Obligation to Exercise Option

        The
granting of an Option shall impose no obligation upon the Optionee to exercise such Option. 

	12.
	Notices

        All
notice, requests, demand, and other communications pursuant this Plan shall be in writing and shall be deemed to have been duly given on the date of service if served personally on
the party to whom notice is to be given, or on the third day following the mailing thereof to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid. 

	13.
	Financial Statements

        Optionees
under this Plan have the right to receive, upon request, annual financial statements regarding the Corporation during the period the options are outstanding. 

        The
foregoing Incentive and Nonstatutory Stock Option Plan was duly adopted and approved by the Board of Directors on December 30, 2002, subject to shareholder ratification within
12 months. 

	 	 	/s/ Steve Yu
 Steve Yu, Secretary

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QuickLinks

Exhibit 10.10

2003 INCENTIVE AND NONSTATUTORY STOCK OPTION PLAN

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