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                                                                   EXHIBIT 10.10

                               CYBERKINETICS, INC.

             SECOND AMENDED AND RESTATED 2002 EQUITY INCENTIVE PLAN

               INITIALLY ADOPTED: EFFECTIVE AS OF AUGUST 12, 2002
            APPROVED BY STOCKHOLDERS: EFFECTIVE AS OF AUGUST 12, 2002
              FIRST AMENDMENT AND RESTATEMENT: AS OF JUNE 20, 2003
             AMENDMENT APPROVED BY STOCKHOLDERS: AS OF JUNE 20, 2003
             SECOND AMENDMENT AND RESTATEMENT: AS OF APRIL 30, 2004
            AMENDMENT APPROVED BY STOCKHOLDERS: AS OF APRIL 30, 2004
                        TERMINATION DATE: AUGUST 12, 2012

SECTION 1. GENERAL.

      (a) PURPOSE OF THE PLAN. Cyberkinetics, Inc. (the "Company"), by means of
the Plan, seeks to retain the services of eligible recipients and to provide
incentives for eligible recipients to exert efforts for the success of the
Company and its Affiliates.

      (b) ELIGIBLE STOCK AWARD RECIPIENTS. The persons eligible to receive Stock
Awards are the Employees, Directors and Consultants of the Company and its
Affiliates.

      (c) AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a means
by which Participants may be given an opportunity to benefit from increases in
the value of the Common Stock through the granting of the following Stock
Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii)
stock bonuses, and (iv) rights to acquire restricted stock.

      (d) DEFINITIONS. Capitalized terms not defined elsewhere in this Agreement
are defined in Section 15 of the Plan.

SECTION 2. ADMINISTRATION.

      (a) ADMINISTRATION BY BOARD. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
Section 2(c).

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

            (i) to determine from time to time which of the persons eligible
under the Plan shall be granted Stock Awards; when and how each Stock Award
shall be granted; what type or combination of types of Stock Award shall be
granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive Common Stock pursuant to a Stock Award; the number of shares of Common
Stock with respect to which a Stock Award shall be granted to each such person;
whether shares of Common Stock acquired pursuant to a Stock Award shall be
subject to forfeiture or buy back; and the form of consideration that the
Company may receive upon exercise of an Option or a right to acquire restricted
stock;

             Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 1

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            (ii) to construe and interpret the Plan and Stock Awards granted
under it, and to establish, amend and revoke rules and regulations for its
administration, including the correction of any defect, omission or
inconsistency in the Plan or in any Stock Award Agreement, in a manner and to
the extent the Board shall deem necessary or expedient to make the Plan fully
effective;

            (iii) to amend the Plan or a Stock Award as provided in Section 11;
and

            (iv) generally, to exercise such powers and to perform such acts as
the Board deems necessary or expedient to promote the best interests of the
Company and that are not in conflict with the provisions of the Plan.

      (c) DELEGATION TO COMMITTEE.

            (i) GENERAL. From time to time, the Board may delegate
administration of the Plan to a Committee or Committees of one or more members
of the Board, and the term "Committee" shall apply to any person or persons to
whom such authority has been delegated. If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board, including the power to
delegate to a subcommittee any of the administrative powers the Committee is
authorized to exercise (and references in this Plan to the Board shall
thereafter be to the Committee or subcommittee), subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board. The Board may abolish the Committee at any time
and revest in the Board the administration of the Plan.

            (ii) COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY TRADED. At
such time as the Common Stock is publicly traded, in the discretion of the
Board, a Committee may consist solely of two or more Outside Directors, in
accordance with Section 162(m) of the Code, and/or solely of two or more
Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such
authority, the Board or the Committee may (1) delegate to a committee of one or
more members of the Board who are not Outside Directors the authority to grant
Stock Awards to eligible persons who are either (a) not then Covered Employees
and are not expected to be Covered Employees at the time of recognition of
income resulting from such Stock Award, or (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code, and/or (2)
delegate to a committee of one or more members of the Board who are not
Non-Employee Directors the authority to grant Stock Awards to eligible persons
who are not then subject to Section 16 of the Exchange Act.

      (d) EFFECT OF BOARD'S DECISION. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

SECTION 3. SHARES SUBJECT TO THE PLAN.

      (a) SHARE RESERVE. Subject to the provisions of Section 10 relating to
adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Stock Awards shall not exceed, in the aggregate 2,533,333 shares of
Common Stock, par value $0.0001 per share.

      (b) REVERSION OF SHARES TO THE SHARE RESERVE. If any Stock Award shall for
any reason expire or otherwise terminate, in whole or in part, without having
been exercised in full,

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the shares of Common Stock not acquired under such Stock Award shall revert to
and again become available for issuance under the Plan.

      (c) SOURCE OF SHARES. The shares of Common Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise.

SECTION 4. OPTIONS.

      Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if stock certificates are issued, such certificates will include a
legend that will indicate whether each such certificate was issued pursuant to
exercise of an Incentive Stock Option or Nonstatutory Stock Option; provided,
however, that notwithstanding the following, an Incentive Stock Option may
provide that it will remain exercisable as a Nonstatutory Stock Option after an
event or series of events that may otherwise disqualify such Option from being
an Incentive Stock Option. The provisions of separate Options need not be
identical, but each Option shall include (through incorporation of provisions
hereof by reference in the Option Agreement for shares of Common Stock or
otherwise) the substance of each of the following provisions:

      (a) ELIGIBILITY.

            (i) INCENTIVE STOCK OPTIONS. Incentive Stock Options may be granted
only to Employees.

            (ii) NONSTATUTORY STOCK OPTIONS. Nonstatutory Stock Options may be
granted to Employees, Directors and Consultants.

      (b) TERM. No Incentive Stock Option shall be exercisable after the
expiration of ten years from the date it was granted; provided however that no
Incentive Stock Option granted to a Ten Percent Stockholder shall be exercisable
after the expiration of five years from the date it was granted.

      (c) EXERCISE PRICE.

            (i) GENERALLY. Subject to clauses (ii) and (iii) below, the Board of
Directors may determine exercise price of Options granted pursuant to this Plan;
provided, however, that the exercise price of an Option shall be not less than
the par value of the Common Stock subject to the Option.

            (ii) INCENTIVE STOCK OPTION. The exercise price of each Incentive
Stock Option shall be not less than 100% of the Fair Market Value of the Common
Stock subject to the Option on the date the Option is granted; provided,
however, that a Ten Percent Stockholder shall not be granted an Incentive Stock
Option unless the exercise price of such Option is at least 110% of the Fair
Market Value of the Common Stock on the date of grant. Notwithstanding the
foregoing, an Incentive Stock Option may be granted with an exercise price lower
than that set forth in the preceding sentence if such Option is granted pursuant
to an assumption or substitution for another option in a manner satisfying the
provisions of Section 424(a) of the Code.

            (iii) NONSTATUTORY STOCK OPTION. The exercise price of each
Nonstatutory Stock Option shall be determined by the Board of Directors on the
date the Option is granted;

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provided, however, that subsequent to the Listing Date, the exercise price of
each Nonstatutory Stock Option granted pursuant to this Plan shall be at least
85% of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted.

      (d) CONSIDERATION. The purchase price of Common Stock acquired pursuant to
an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the
Company of other shares of Common Stock, (2) according to a deferred payment or
a similar arrangement with the Optionholder, or (3) in any other form of legal
consideration that may be acceptable to the Board. Unless otherwise specifically
provided in the Option, the purchase price of Common Stock acquired pursuant to
an Option that is paid by delivery to the Company of other Common Stock
acquired, directly or indirectly from the Company, shall be paid only by shares
of the Common Stock of the Company that have been held for more than six months
(or such longer or shorter period of time required to avoid a charge to earnings
for financial accounting purposes). At any time that the Company is incorporated
in the State of Delaware, payment of the Common Stock's "par value," as defined
in the Delaware General Corporation Law shall not be made by deferred payment.
In the case of any deferred payment arrangement, interest shall be compounded at
least annually and shall be charged at the market rate of interest necessary, as
determined by the Board, to avoid a charge to earnings for financial accounting
purposes.

      (e) TRANSFERABILITY.

            (i) INCENTIVE STOCK OPTION. An Incentive Stock Option shall not be
transferable except by will or by the laws of descent and distribution and shall
be exercisable during the lifetime of the Optionholder only by the Optionholder.

            (ii) NONSTATUTORY STOCK OPTION. A Nonstatutory Stock Option shall be
non-transferable, unless otherwise expressly provided in the Option Agreement.
If a Nonstatutory Stock Option does not provide for transferability or otherwise
states that it is non-transferable, then the Nonstatutory Stock Option shall not
be transferable except by will or by the laws of descent and distribution and
shall be exercisable during the lifetime of the Optionholder only by the
Optionholder.

      (f) VESTING GENERALLY. The total number of shares of Common Stock subject
to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary.

      (g) LIMITATIONS ON THE EXERCISE OF INCENTIVE STOCK OPTIONS.

            (i) TERMINATION OF EMPLOYEE STATUS GENERALLY. In the event an
Incentive Stock Option holder's Employment terminates (other than upon the
Optionholder's death or Disability), the Optionholder may exercise his or her
Option (to the extent that the Optionholder was entitled to exercise such Option
as of the date of termination) but only within such period of time ending on the
earlier of (1) the date three months following the effective date of termination
of the Optionholder's Employment (or such shorter period specified in the Option
Agreement), or (2) the expiration of the term of the Option as set forth in the
Option Agreement. If, after

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termination, the Optionholder does not exercise his or her Option within the
time specified in the Option Agreement, the Option shall terminate.

            (ii) DISABILITY OF OPTIONHOLDER. In the event that an Incentive
Stock Option holder's Employment terminates as a result of his or her
Disability, the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (1)
the date that is twelve months following such effective date of termination (or
such shorter period specified in the Option Agreement) or (2) the expiration of
the term of the Option as set forth in the Option Agreement. If, after the
effective date of termination, the Optionholder does not exercise his or her
Option within the time specified herein, the Option shall terminate.

            (iii) DEATH OF OPTIONHOLDER. In the event (1) an Incentive
Stockholder's Employment terminates as a result of the his or her death, or (2)
the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Employment during which he
or she may exercise such Option, then the Option may be exercised (to the extent
the Optionholder was entitled to exercise such Option as of the date of death)
by the Optionholder's estate or by a person who acquired the right to exercise
the Option by bequest or inheritance, but only within the period ending on the
earlier of (X) the date twelve months following the date of death (or such
shorter period specified in the Option Agreement), or (Y) the expiration of such
Option. If, after death, the Option is not exercised within the time specified
herein, the Option shall terminate.

            (iv) INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that
the aggregate Fair Market Value (determined at the time of grant) of Common
Stock with respect to which Incentive Stock Options are exercisable for the
first time by any Optionholder during any calendar year (under all plans of the
Company and its Affiliates) are in excess of $100,000, the Options or portions
thereof that exceed such limit (according to the order that they were granted)
shall be treated as Nonstatutory Stock Options.

      (h) EXTENSION OF TERMINATION DATE. A Nonstatutory Stock Option Agreement
may provide that if the exercise of the Option following the termination of the
Optionholder's Continuous Service (other than upon the Optionholder's death or
Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option may terminate on the earlier of (i) the
expiration of the term of the Option set forth in Section 3(b), or (ii) the
expiration of a period of three months after the termination of the
Optionholder's Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

      (i) EARLY EXERCISE. An Option Agreement may, but need not, include a
provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Any unvested shares of Common Stock so purchased may
be subject to a repurchase option in favor of the Company or to any other
restriction the Board determines to be appropriate.

      (j) RIGHT OF FIRST REFUSAL. An Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise
a right of first refusal following receipt of notice from the Optionholder of
the intent to transfer all or any part of the shares of Common Stock received
upon the exercise of the Option. Except as expressly provided in this Section
4(j), such right of first refusal shall otherwise comply with any applicable
provisions of the Bylaws of the Company.

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      (k) DEFERRED DELIVERY. An Option may, but need not, include provisions
relating to deferred delivery of shares of Common Stock upon its exercise as may
be determined by the Board of Directors.

      (l) RE-LOAD OPTIONS. Without in any way limiting the authority of the
Board to make or not to make grants of Options hereunder, the Board shall have
the authority (but not an obligation) to include as part of any Option Agreement
a provision entitling the Optionholder to a further Option (a "Re-Load Option")
in the event the Optionholder exercises the Option evidenced by the Option
Agreement, in whole or in part, by surrendering other shares of Common Stock in
accordance with this Plan and the terms and conditions of the Option Agreement.
Unless otherwise specifically provided in the Option, the Optionholder shall not
surrender shares of Common Stock acquired, directly or indirectly from the
Company, unless such shares have been held for more than six months (or such
longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes).

            (i) Any such Re-Load Option shall (1) provide for a number of shares
of Common Stock equal to the number of shares of Common Stock surrendered as
part or all of the exercise price of such Option; (2) have an expiration date
which is the same as the expiration date of the Option the exercise of which
gave rise to such Re-Load Option; and (3) have an exercise price which is equal
to 100% of the Fair Market Value of the Common Stock subject to the Re-Load
Option on the date of exercise of the original Option (subject to the provisions
of Section 4(c)(2) in the event such Option is an Incentive Stock Option).
Notwithstanding the foregoing, a Re-Load Option shall be subject to the same
exercise price and term provisions heretofore described for Options under the
Plan.

            (ii) Any such Re-Load Option may be an Incentive Stock Option or a
Nonstatutory Stock Option, as the Board may designate at the time of the grant
of the original Option; provided, however, that the designation of any Re-Load
Option as an Incentive Stock Option shall be subject to the $100,000 annual
limitation on the ability to exercise Incentive Stock Options described in
Section 422(d) of the Code. There shall be no Re-Load Options on a Re-Load
Option. Any such Re-Load Option shall be subject to the availability of
sufficient shares of Common Stock under Section 3(a) and the "Section 162(m)
Limitation" on the grants of Options under Section 4(g)(iv) and shall be subject
to such other terms and conditions as the Board may determine which are not
inconsistent with the express provisions of the Plan regarding the terms of
Options.

SECTION 5. STOCK BONUS AWARDS AND RIGHTS TO ACQUIRE RESTRICTED STOCK.

      (a) STOCK BONUS AWARDS. Each stock bonus agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate.
Subject to the terms of this Section 5(a), the terms and conditions of stock
bonus agreements may change from time to time, and the terms and conditions of
separate stock bonus agreements need not be identical.

            (i) CONSIDERATION. A stock bonus may be awarded in consideration for
past services actually rendered to the Company or an Affiliate for its benefit.

            (ii) VESTING. Shares of Common Stock awarded under the stock bonus
agreement may, but need not, be subject to a share repurchase option in favor of
the Company in accordance with a vesting schedule to be determined by the Board.

            (iii) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. A stock bonus
may provide that in the event a Participant's Continuous Service terminates, the
Company may

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reacquire any or all of the shares of Common Stock held by a Participant which
have not vested as of the date of termination under the terms of the stock bonus
agreement.

            (iv) TRANSFERABILITY. Rights to acquire shares of Common Stock under
a stock bonus agreement shall be transferable by the Participant only upon such
terms and conditions as are set forth in the stock bonus agreement, and as the
Board shall determine in its discretion, so long as Common Stock awarded under
the stock bonus agreement remains subject to the terms of the stock bonus
agreement and the Investor Rights Agreement.

      (b) RESTRICTED STOCK AWARDS. Each restricted stock purchase agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. Subject to the terms of this Section 5(b) the terms and
conditions of the restricted stock purchase agreements may change from time to
time, and the terms and conditions of separate restricted stock purchase
agreements need not be identical.

            (i) PURCHASE PRICE. The purchase price of restricted stock awards
may be determined by the Board of Directors, but shall not be less than 85% of
the Fair Market Value of the Common Stock on the date issued.

            (ii) CONSIDERATION. The purchase price of Common Stock acquired
pursuant to the restricted stock purchase agreement may be paid either: (a) in
cash at the time of purchase; (b) at the discretion of the Board, according to a
deferred payment or other similar arrangement with the Participant; or (c) in
any other form of legal consideration that may be acceptable to the Board in its
discretion; provided, however, that payment of the Common Stock's "par value,"
as defined in the Delaware General Corporation Law shall not be made by deferred
payment.

            (iii) VESTING. Shares of Common Stock acquired under the restricted
stock purchase agreement may, but need not, be subject to a share repurchase
option in favor of the Company in accordance with a vesting schedule to be
determined by the Board.

            (iv) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In the event a
Participant's Continuous Service terminates, the Company may repurchase or
otherwise reacquire any or all of the shares of Common Stock held by the
Participant which have not vested as of the date of termination under the terms
of the restricted stock purchase agreement.

            (v) TRANSFERABILITY. Rights to acquire shares of Common Stock under
the restricted stock purchase agreement shall be transferable by the Participant
only upon such terms and conditions as are set forth in the restricted stock
purchase agreement, as the Board shall determine in its discretion, so long as
Common Stock awarded under the restricted stock purchase agreement remains
subject to the terms of the restricted stock purchase agreement and the Investor
Rights Agreement.

SECTION 6. CERTAIN RESTRICTIONS APPLICABLE GENERALLY.

      (a) SECTION 162(m) LIMITATION. Subject to the provisions of Section 10
relating to adjustments upon changes in the shares of Common Stock, no Employee
shall be eligible to be granted Awards covering more than $1 million in shares
of Common Stock during any calendar year. This Section 6(a) shall not apply
prior to the Listing Date and, following the Listing Date, this Section 6(a)
shall not apply until (i) the earliest of: (1) the first material modification
of the Plan (including any increase in the number of shares of Common Stock
reserved for issuance under the Plan in accordance with Section 3); (2) the
issuance of all of the shares of Common

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Stock reserved for issuance under the Plan; (3) the expiration of the Plan; or
(4) the first meeting of stockholders at which Directors are to be elected that
occurs after the close of the third calendar year following the calendar year in
which occurred the first registration of an equity security under Section 12 of
the Exchange Act; or (ii) such other date required by Section 162(m) of the Code
and the rules and regulations promulgated thereunder.

      (b) CONSULTANTS.

            (i) Prior to the Listing Date, a Consultant shall not be eligible
for the grant of a Stock Award if, at the time of grant, either the offer or the
sale of the Company's securities to such Consultant is not exempt under Rule 701
of the Securities Act ("Rule 701") because of the nature of the services that
the Consultant is providing to the Company or because the Consultant is not a
natural person, or as otherwise provided by Rule 701, unless the Company
determines that such grant need not comply with the requirements of Rule 701 and
will satisfy another exemption under the Securities Act as well as comply with
the securities laws of all other relevant jurisdictions.

            (ii) From and after the Listing Date, a Consultant shall not be
eligible for the grant of a Stock Award if, at the time of grant, a Form S-8
Registration Statement under the Securities Act ("Form S-8") is not available to
register either the offer or the sale of the Company's securities to such
Consultant because of the nature of the services that the Consultant is
providing to the Company or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8, unless the
Company determines both (i) that such grant (a) shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or
(b) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii) that such
grant complies with the securities laws of all other relevant jurisdictions.

      (c) LOCK-UP; STOCKHOLDERS' AGREEMENT. By receipt and acceptance of a Stock
Award, each Participant agrees, if requested in writing by an underwriter of
Common Stock or other securities of the Company, not to sell, assign, donate,
pledge, encumber, hypothecate, grant an option to, or otherwise transfer or
dispose of, whether in privately negotiated or open market transactions, any
Common Stock or other securities of the Company held by him, her or it during
the 180-day period following the effective date of a registration statement
filed pursuant to the Company's initial public offering. The provisions of this
Section 6(c) are intended to be automatic in effect, and no further
acknowledgement or evidence of agreement shall be required for the Company or
its transfer agent to enforce the provisions of this Section 6(c), or for the
Company or its transfer agent to enter into a "stop transfer" or similar order
with respect to securities of the Company held by Participants. As a condition
to receipt of any Stock Award (or Common Stock underlying any option), you may
be required to execute a counterpart or otherwise agree to be bound by the
Company's Stockholders' Rights Agreement, as is in effect from time to time.

SECTION 7. COVENANTS OF THE COMPANY.

      (a) AVAILABILITY OF SHARES. During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

      (b) SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such authority
as may be required to grant Stock Awards and to issue and sell shares of Common
Stock upon exercise of

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the Stock Awards; provided, however, that this undertaking shall not require the
Company to register under the Securities Act the Plan, any Stock Award or any
Common Stock issued or issuable pursuant to any such Stock Award. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems necessary
for the lawful issuance and sale of Common Stock under the Plan, the Company
shall be relieved from any liability for failure to issue and sell Common Stock
upon exercise of such Stock Awards unless and until such authority is obtained.

SECTION 8. USE OF PROCEEDS FROM STOCK.

      Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

SECTION 9. MISCELLANEOUS.

      (a) ACCELERATION OF EXERCISABILITY AND VESTING; FORFEITURE. The Board
shall have the power to accelerate the time at which a Stock Award may first be
exercised or the time during which a Stock Award or any part thereof will vest
in accordance with the Plan, notwithstanding the provisions in the Stock Award
stating the time at which it may first be exercised or the time during which it
will vest. The Board shall have the authority to provide in any Stock Award that
such Stock Award will be forfeited under certain limited conditions, such as the
breach of any of the Company's policies or a termination for "Cause" (as defined
in Section 15).

      (b) STOCKHOLDER RIGHTS. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

      (c) NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Participant any right to continue to serve the Company or an Affiliate in
the capacity in effect at the time the Stock Award was granted or shall affect
the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company
or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of
the state in which the Company or the Affiliate is incorporated, as the case may
be.

      (d) INVESTMENT ASSURANCES. The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (1) the issuance of the shares of
Common Stock upon the exercise or acquisition of Common Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such

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requirement need not be met in the circumstances under the then applicable
securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the Common
Stock.

      (e) WITHHOLDING OBLIGATIONS. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Common
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the Participant as a result of the exercise
or acquisition of Common Stock under the Stock Award, provided, however, that no
shares of Common Stock are withheld with a value exceeding the minimum amount of
tax required to be withheld by law; or (iii) delivering to the Company owned and
unencumbered shares of Common Stock.

SECTION 10. ADJUSTMENTS UPON CHANGES IN STOCK.

      (a) CAPITALIZATION ADJUSTMENTS. If any change is made in the Common Stock
subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject to the Plan
pursuant to Section 3(a) and the outstanding Stock Awards will be appropriately
adjusted in the class(es) and number of securities and price per share of Common
Stock subject to such outstanding Stock Awards. The Board shall make such
adjustments, and its determination shall be final, binding and conclusive. (The
conversion of any convertible securities of the Company shall not be treated as
a transaction "without receipt of consideration" by the Company.)

      (b) DISSOLUTION OR LIQUIDATION. In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall terminate
immediately prior to such event.

      (c) ASSET SALE, MERGER, CONSOLIDATION, OR SERIES OF TRANSACTIONS. Unless a
Stock Award Agreement provides otherwise, in the event of (i) a sale, lease or
other disposition of all or substantially all of the assets of the Company, (ii)
a consolidation or merger of the Company with or into any other corporation or
other entity or person, or any other corporate reorganization, in which the
stockholders of the Company immediately prior to such consolidation, merger or
reorganization, own less than 50% of the Company's outstanding voting power of
the surviving entity (or its parent) following the consolidation, merger or
reorganization or (iii) any transaction (or series of related transactions
involving a person or entity, or a group of affiliated persons or entities) in
which in excess of 50% of the Company's outstanding voting power is transferred
(individually, a "Corporate Transaction"), then any surviving corporation or
acquiring corporation shall assume any Stock Awards outstanding under the Plan
or shall substitute similar stock awards (including an award to acquire the same
consideration paid to the stockholders in the Corporate Transaction) for those
outstanding under the Plan. In the event any surviving corporation or acquiring
corporation refuses to assume such Stock Awards or to substitute similar stock
awards for those outstanding under the Plan, then with respect to Stock Awards
held by Participants whose Continuous Service has not terminated, the vesting of
such Stock Awards (and, if applicable, the time during which such

            Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 10
<PAGE>

Stock Awards may be exercised) may, in the discretion of the Board, be
accelerated in full, and the Stock Awards shall terminate if not exercised (if
applicable) at or prior to the Corporate Transaction. With respect to any other
Stock Awards outstanding under the Plan, such Stock Awards shall terminate if
not exercised (if applicable) prior to the Corporate Transaction.

SECTION 11. AMENDMENT OF THE PLAN AND STOCK AWARDS.

      (a) AMENDMENT OF PLAN. The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 10 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval
is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3
or any Nasdaq or securities exchange listing requirements.

      (b) STOCKHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

      (c) CONTEMPLATED AMENDMENTS. It is expressly contemplated that the Board
may amend the Plan in any respect the Board deems necessary or advisable to
provide eligible Employees with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder
relating to Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance therewith.

      (d) NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the Participant and (ii) the Participant
consents in writing.

      (e) AMENDMENT OF STOCK AWARDS. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

SECTION 12. TERMINATION OR SUSPENSION OF THE PLAN.

      (a) PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
anniversary of the date the Plan is adopted by the Board or approved by the
stockholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

      (b) NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan
is in effect except with the written consent of the Participant.

SECTION 13. EFFECTIVE DATE OF PLAN.

      The Plan shall become effective as determined by the Board, but no Stock
Award shall be exercised (or, in the case of a stock bonus, shall be granted)
unless and until the Plan has been approved by the stockholders of the Company,
which approval shall be within twelve months before or after the date the Plan
is adopted by the Board.

            Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 11
<PAGE>

SECTION 14. CHOICE OF LAW.

      The law of the State of Delaware shall govern all questions concerning the
construction, validity and interpretation of this Plan, without regard to such
state's conflict of laws rules.

SECTION 15. DEFINITIONS.

      (a) "Affiliate" means any parent corporation or subsidiary corporation of
the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

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

      (c) "Cause" includes (and is not limited to) dishonesty with respect to
the Company and its Affiliates, insubordination, substantial malfeasance or
nonfeasance of duty, unauthorized disclosure of confidential information,
conduct substantially prejudicial to the business of the Company or any
Affiliate and termination by the Participant in violation of an agreement by the
Participant to remain in the employ of the Company or of an Affiliate. The
determination of the Committee as to the existence of cause will be conclusive
on the Participant and the Company. "Cause" is not limited to events that have
occurred prior to a Participant's termination of service to the Company, nor is
it necessary that the Committee's finding of "cause" occur prior to termination.
If the Committee determines, subsequent to the termination of a Participant's
service but prior to the exercise of a Stock Award, that either prior or
subsequent to the Participant's termination the Participant engaged in conduct
which would constitute "Cause," then the right any Stock Award will be
forfeited. Any definition in an agreement between a Participant and the Company
or an Affiliate which contains a conflicting definition of "Cause" for
termination and which is in effect at the time of such termination will
supersede the definition in this Plan with respect to that Participant.

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

      (e) "Committee" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 2(c).

      (f) "Common Stock" means the Common Stock, par value $0.0001, of the
Company.

      (g) "Company" means Cyberkinetics, Inc., a Delaware corporation.

      (h) "Consultant" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting or advisory services and who is
compensated for such services. However, the term "Consultant" shall not include
either Directors who are not compensated by the Company for their services as
Directors or Directors who are merely paid a director's fee by the Company for
their services as Directors.

      (i) "Continuous Service" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service. The Board or

            Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 12
<PAGE>

Committee, in that party's sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence
approved by that party, including sick leave, military leave or any other
personal leave.

      (j) "Covered Employee" means the Company's chief executive officer and the
four other highest compensated officers of the Company for whom total
compensation is required to be reported to stockholder under the Exchange Act,
as determined for purposes of Section 162(m) of the Code.

      (k) "Director" means a member of the Board of Directors of the Company.

      (l) "Disability" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

      (m) "Employee" or "Employment" means any person employed by the Company or
an Affiliate as determined in accordance with Section 3401(c) of the Code.

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

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

            (i) If the Common Stock is listed on any established stock exchange
or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair
Market Value of a share of Common Stock shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of
trading in the Common Stock) on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable.

            (ii) In the absence of such markets for the Common Stock, the Fair
Market Value shall be determined in good faith by the Board, with particular
reference to sales of shares of Common Stock and, if no such sales provide
meaningful guidance, with reference to sales of any classes or series of
preferred stock of the Company; provided that proper discounts may be taken by
the Board to reflect the fair market value of the Common Stock in light of
liquidation and redemption rights enjoyed by such preferred stock.

      (p) "Incentive Stock Option" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

      (q) "Listing Date" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system.

      (r) "Non-Employee Director" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its
Affiliates for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure

            Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 13
<PAGE>

would be required under Item 404(a) of Regulation S-K and is not engaged in a
business relationship as to which disclosure would be required under Item 404(b)
of Regulation S-K; or (ii) is otherwise considered a "non-employee director" for
purposes of Rule 16b-3.

      (s) "Nonstatutory Stock Option" means an Option not intended to qualify as
an Incentive Stock Option.

      (t) "Officer" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

      (u) "Option" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

      (v) "Option Agreement" means a written agreement between the Company and
an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

      (w) "Optionholder" means a person to whom an Option is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Option.

      (x) "Outside Director" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

      (y) "Participant" means a person to whom a Stock Award is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding Stock
Award.

      (z) "Plan" means this Second Amended and Restated 2002 Equity Incentive
Plan.

      (aa) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or
any successor to Rule 16b-3, as in effect from time to time.

      (bb) "Securities Act" means the Securities Act of 1933, as amended.

      (cc) "Stock Award" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

      (dd) "Stock Award Agreement" means a written agreement between the Company
and a holder of a Stock Award, subject to the terms and conditions of this Plan,
evidencing the terms and conditions of an individual Stock Award grant.

      (ee) "Ten Percent Stockholder" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company or of any
of its Affiliates.

                                      * * *

            Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 14
<PAGE>

      I, Nicholas Hatsopoulos, Secretary of Cyberkinetics, Inc., having in my
custody and possession the corporate records of said corporation, do hereby
certify that the foregoing is a true and correct copy of the Cyberkinetics, Inc.
Amended and Restated 2002 Equity Incentive Plan as in effect as of April 30,
2004.

      Witness my hand this April 30, 2004.

      As Aforesaid

                                                ________________________________
                                                Nicholas Hatsopoulos, Secretary

            Cyberkinetics, Inc. Second Amended and Restated 2002 Stock Plan - 15<PAGE>

                                                                   EXHIBIT 10.11

                               CYBERKINETICS, INC.

                SECOND AMENDED AND RESTATED FOUNDERS' OPTION PLAN
                                 April 30, 2004

1. PURPOSE

            The purpose of this Amended and Restated Founders' Option Plan (the
"Plan") is to advance the interests of Cyberkinetics, Inc. (the "Company") by
encouraging certain specified employees and consultants of the Company to
acquire shares of the Company's Common Stock, par value $0.0001 per share (the
"Stock"), and thereby increase their proprietary interest in the Company's
success and provide an added incentive to remain in the employ of, or continue
to render services to, the Company. This Plan was Amended and Restated on June
20, 2003, and again on April 30, 2004 (the "Amendment Date").

      The Plan provides for the award of options to purchase shares of Stock.
Options granted pursuant to the Plan may be incentive stock options as defined
in section 422 of the Internal Revenue Code of 1986 (as from time to time
amended, the "Code") (any option that is intended to qualify as an incentive
stock option being referred to herein as an "incentive option"), or options that
are not incentive options, or both. Options granted pursuant to the Plan shall
be presumed to be non-incentive options unless expressly designated as incentive
options.

2. ELIGIBILITY FOR AWARDS

      Only the following persons shall be eligible to receive awards under the
Plan: Brian Hatt, John Donoghue, Nicholas Hatsopoulos, Gerhard Friehs and Mijail
Serruya (any such person who holds an award hereunder that has not terminated
being referred to herein as a "participant"). Incentive options shall be granted
only to "employees" as defined in the provisions of the Code or regulations
thereunder applicable to incentive stock options. A subsidiary for purposes of
the Plan shall be a corporation in which the Company owns, directly or
indirectly, stock possessing 50% or more of the total combined voting power of
all classes of stock.

3. ADMINISTRATION

      The Plan shall be administered by the Board of Directors (the "Board") of
the Company. The Board shall have authority, not inconsistent with the express
provisions of the Plan, (a) to grant awards consisting of options to such
eligible persons as the Board may select; (b) to determine the time or times
when awards shall be granted and the number of shares of Stock subject to each
award; (c) to determine which options are, and which options are not, incentive
options; (d) to determine the terms and conditions of each award; (e) to
prescribe the form or forms of any instruments evidencing awards and any other
instruments required under the Plan and to change such forms from time to time;
(f) to adopt, amend and rescind rules and regulations for the administration of
the Plan; and (g) to interpret the Plan and to decide any questions and settle
all controversies and disputes that may arise in connection with the Plan. Such
determinations of the Board shall be conclusive and shall bind all parties.
Subject to Section 8 the Board shall also have the authority, both generally and
in particular instances, to

<PAGE>

waive compliance by a participant with any obligation to be performed by the
participant under an award, to waive any condition or provision of an award, and
to amend or cancel any award (and if an award is canceled, to grant a new award
on such terms as the Board shall specify) except that the Board may not take any
action with respect to an outstanding award that would adversely affect the
rights of the participant under such award without such participant's consent.
Nothing in the preceding sentence shall be construed as limiting the power of
the Board to make adjustments required by Section 5(c) and Section 6(j).

      The Board may, in its discretion, delegate some or all of its powers with
respect to the Plan to a committee (the "Committee"), in which event all
references in this Plan (as appropriate) to the Board shall be deemed to refer
to the Committee. The Committee, if one is appointed, shall consist of at least
two directors. A majority of the members of the Committee shall constitute a
quorum, and all determinations of the Committee shall be made by a majority of
its members. Any determination of the Committee under the Plan may be made
without notice or meeting of the Committee by a writing signed by a majority of
the Committee members. On and after registration of the Stock under the Exchange
Act, the Board shall delegate the power to select directors and executive
officers to receive awards under the Plan and the timing, pricing and amount of
such awards to a committee or committees, the number of which shall satisfy the
requirements of Rule 16b-3 applicable to the Company and all members of which
shall be disinterested persons within the meaning of the applicable provisions
of Rule 16b-3 and, with respect to executive officers only, "outside directors"
within the meaning of Section 162(m) under the Code.

4. EFFECTIVE DATE AND TERM OF PLAN

      The Plan shall become effective on the date on which it is approved by the
shareholders of the Company. Grants of awards under the Plan may be made prior
to that date (but contemporaneous with or after Board adoption of the Plan),
subject to approval of the Plan by such shareholders.

      No awards shall be granted under the Plan after the completion of ten
years from the date on which the Plan was adopted by the Board, but awards
previously granted may extend beyond that date.

5. SHARES SUBJECT TO THE PLAN

      (a) Number of Shares. Subject to adjustment as provided in Section 5(c),
the aggregate number of shares of Stock that may be delivered upon the exercise
of awards granted under the Plan shall be 1,230,915. Notwithstanding anything to
the contrary contained herein, within sixty (60) days following Amendment Date,
the Board shall issue options to purchase at least 100,000 shares of Stock to
each of the participants, and options to purchase the balance of the shares of
Stock subject to the Plan shall be awarded in amounts determined by the Board on
the first and second anniversary of the Amendment Date (i.e., June 20, 2004 and
June 20, 2005), or at any such time prior to the second anniversary of the
Amendment Date as the Board elects. If any award granted under the Plan
terminates without having been exercised in full, the number of shares of Stock
as to which such award was not exercised (the "Forfeited Shares") shall be

                                      -2-
<PAGE>

available for future grants within the limits set forth in this Section 5(a),
and, within ninety (90) days of such termination, the Board shall grant
additional options to purchase all of the Forfeited Shares to one or more
remaining participants in the Plan. Any such additional options granted to the
remaining participants shall contain the same terms and conditions (and shall
become Vested (as defined below) according to the same schedule) as the existing
options held by such participants.

      (b) Shares to be Delivered. Shares delivered under the Plan shall be
authorized but unissued Stock or, if the Board so decides in its sole
discretion, previously issued Stock acquired by the Company and held in its
treasury. No fractional shares of Stock shall be delivered under the Plan.

      (c) Changes in Stock. In the event of a stock dividend, stock split or
combination of shares, recapitalization or other change in the Company's capital
stock, the number and kind of shares of Stock subject to awards then outstanding
or subsequently granted under the Plan, the exercise price of such awards, the
maximum number of shares of Stock that may be delivered under the Plan, and
other relevant provisions shall be appropriately adjusted by the Board, whose
determination shall be binding on all persons.

      The Board may also adjust the number of shares subject to outstanding
awards and the exercise price and the terms of outstanding awards to take into
consideration material changes in accounting practices or principles,
extraordinary dividends, consolidations or mergers (except those described in
Section 6(j)), acquisitions or dispositions of stock or property or any other
event if it is determined by the Board that such adjustment is appropriate to
avoid distortion in the operation of the Plan, provided that no such adjustment
shall be made in the case of an incentive option, without the consent of the
participant, if it would constitute a modification, extension or renewal of the
option within the meaning of section 424(h) of the Code.

6. TERMS AND CONDITIONS OF OPTIONS

      (a) Exercise Price of Options. The exercise price of each option shall be
determined by the Board but in the case of an incentive option shall not be less
than 100% (110%, in the case of an incentive option granted to a ten-percent
shareholder) of the fair market value of the Stock at the time the option is
granted; nor shall the exercise price be less, in the case of an original issue
of authorized stock, than par value. For this purpose, "fair market value" in
the case of incentive options shall have the same meaning as it does in the
provisions of the Code and the regulations thereunder applicable to incentive
options; and "ten-percent shareholder" shall mean any participant who at the
time of grant owns directly, or by reason of the attribution rules set forth in
section 424(d) of the Code, is deemed to own stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company or of any
of its parent or subsidiary corporations.

      (b) Duration of Options. Options shall be exercisable during such period
or periods as the Board may specify. The latest date on which an option may be
exercised (the "Final Exercise Date") shall be the date that is ten years (five
years, in the case of an incentive option

                                      -3-
<PAGE>

granted to a "ten-percent shareholder" as defined in (a) above) from the date
the option was granted or such earlier date as the Board may specify at the time
the option is granted.

      (c)   Vesting and Exercise of Options.

      (1)   Options shall become "Vested" as follows (though the Board may at
            any time accelerate the time at which all or any part of an option
            becomes Vested):

            (A)   each option shall become Vested as to 1/4 of the shares
                  subject to such option on the date of grant; and

            (B)   each option shall become Vested as to an additional 1/48 of
                  the shares subject to such option on the last day of each
                  month thereafter.

      (2)   Each option may from time to time be exercised in whole or in part
            for such number of shares of Stock as to which such option is
            Vested, provided that one of the following conditions has been met:

            (A)   the Company shall have entered into an agreement or agreements
                  with one or more third parties pursuant to which the Company
                  grants rights to such third parties in exchange for aggregate
                  consideration (including, without limitation, license or
                  sublicense fee payments, payments for options to license or
                  sublicense, research and development support payments,
                  milestone payments or minimum or advance royalties (but not
                  counting payments for equity interests in the Company or
                  royalties contingent on future sales)) of at least $3 million;
                  provided, however, that any proceeds received by the Company
                  in respect of "premium equity" (meaning equity of the Company
                  issued at a per share price (on a fully-converted basis) at
                  least 25% higher than the per share price (on a
                  fully-converted basis) of the stock issued in the Company's
                  most recent round of equity financing) issued in connection
                  with any such agreement shall be counted towards such $3
                  million amount; or

            (B)   the Company shall have consummated a Series B Preferred Stock
                  financing at a per share price equal to at least two times the
                  price per share paid for the Company's Series A Preferred
                  Stock.

            Notwithstanding the foregoing, if the Company consummates a Series B
            Preferred Stock financing at a per share price less than twice, but
            equal to at least 1.5 times, the price per share paid for the
            Company's Series A Preferred Stock, each option shall become
            exercisable for one-half of the number of shares of Stock as to
            which such option is Vested from time to time.

      (3)   Options may be exercised only in writing. Written notice of exercise
            must be signed by the proper person and furnished to the Company,
            together with (i) such

                                      -4-
<PAGE>

                  documents as the Board may require and (ii) payment in full as
                  specified below in Section 6(d) for the number of shares for
                  which the option is exercised.

            (4)   The delivery of Stock upon the exercise of an option shall be
                  subject to compliance with (i) applicable federal and state
                  laws and regulations, (ii) if the outstanding Stock is at the
                  time listed on any stock exchange, the listing requirements of
                  such exchange, and (iii) Company counsel's approval of all
                  other legal matters in connection with the issuance and
                  delivery of such Stock. If the sale of Stock has not been
                  registered under the Securities Act of 1933, as amended, the
                  Company may require, as a condition to exercise of the option,
                  such representations or agreements as counsel for the Company
                  may consider appropriate to avoid violation of such Act and
                  may require that the certificates evidencing such Stock bear
                  an appropriate legend restricting transfer.

            (5)   In the case of an option that is not an incentive option, the
                  Board shall have the right to require that the participant
                  exercising the option remit to the Company an amount
                  sufficient to satisfy any federal, state, or local withholding
                  tax requirements (or make other arrangements satisfactory to
                  the Company with regard to such taxes) prior to the delivery
                  of any Stock pursuant to the exercise of the option. If
                  permitted by the Board, either at the time of the grant of the
                  option or the time of exercise, the participant may elect, at
                  such time and in such manner as the Board may prescribe, to
                  satisfy such withholding obligation by (i) delivering to the
                  Company Stock (which in the case of Stock acquired from the
                  Company shall have been owned by the participant for at least
                  six months prior to the delivery date) having a fair market
                  value equal to such withholding obligation, or (ii) requesting
                  that the Company withhold from the shares of Stock to be
                  delivered upon the exercise a number of shares of Stock having
                  a fair market value equal to such withholding obligation.

                  In the case of an incentive option, if at the time the option
                  is exercised the Board determines that under applicable law
                  and regulations the Company could be liable for the
                  withholding of any federal or state tax with respect to a
                  disposition of the Stock received upon exercise, the Board may
                  require as a condition of exercise that the participant
                  exercising the option agree (i) to inform the Company promptly
                  of any disposition (within the meaning of section 424(c) of
                  the Code and the regulations thereunder) of Stock received
                  upon exercise, and (ii) to give such security as the Board
                  deems adequate to meet the potential liability of the Company
                  for the withholding of tax, and to augment such security from
                  time to time in any amount reasonably deemed necessary by the
                  Board to preserve the adequacy of such security.

            (6)   If an option is exercised by the executor or administrator of
                  a deceased participant, or by the person or persons to whom
                  the option has been transferred by the participant's will or
                  the applicable laws of descent and distribution, the Company
                  shall be under no obligation to deliver Stock pursuant to such
                  exercise

                                      -5-
<PAGE>

                  until the Company is satisfied as to the authority of the
                  person or persons exercising the option.

            (d) Payment for and Delivery of Stock. Stock purchased upon exercise
of an option under the Plan shall be paid for as follows:

            (i)   in cash or by personal check, certified check, bank draft or
                  money order payable to the order of the Company; or

            (ii)  if so permitted by the Board (which, in the case of an
                  incentive option, shall specify the method of payment at the
                  time of grant), (A) through the delivery of shares of Stock
                  (which, in the case of Stock acquired from the Company, shall
                  have been held for at least six months prior to delivery)
                  having a fair market value on the last business day preceding
                  the date of exercise equal to the purchase price or (B) by
                  delivery of a promissory note of the participant to the
                  Company, such note to be payable on such terms as are
                  specified by the Board or (C) by delivery of an unconditional
                  and irrevocable undertaking by a broker to deliver promptly to
                  the Company sufficient funds to pay the exercise price or (D)
                  by any other form of payment, or combination of forms of
                  payment, approved by the Board, including but not limited to
                  cancellation of indebtedness; provided, that if the Stock
                  delivered upon exercise of the option is an original issue of
                  authorized Stock, at least so much of the exercise price as
                  represents the par value of such Stock shall be paid other
                  than by a personal check or promissory note of the person
                  exercising the option.

            (e)   [Intentionally Omitted.]

            (f) Rights as Shareholder. A participant shall not have the rights
of a shareholder with regard to awards under the Plan except as to Stock
actually received by the participant under the Plan.

            (g) Nontransferability of Awards. Except as the Board may otherwise
determine, no award may be transferred other than by will or by the laws of
descent and distribution, and during a participant's lifetime an award may be
exercised only by the participant. Without limiting the discretion of the Board
pursuant to the immediately preceding sentence, in the case of an option that is
not an incentive option, the award may specify that the such option is
transferable to any member of the participant's "immediate family" (as such term
is defined in Rule 16a-1(e) promulgated under the Exchange Act, or any successor
rule or regulation) or to one or more trusts whose beneficiaries are members of
such participant's "immediate family" or partnerships in which such family
members are the only partners, so long as the participant receives no
consideration for the transfer of such option and such transferred option shall
continue to be subject to the same terms and conditions as were applicable to it
immediately prior to the transfer.

            (h) Death. If a participant dies, each option held by the
participant immediately prior to death may be exercised, to the extent it was
exercisable immediately prior to death, by the

                                      -6-
<PAGE>

participant's executor or administrator or by the person or persons to whom the
option is transferred by will or the applicable laws of descent and
distribution, at any time within the one-year period (or such longer or shorter
period as the Board may determine) beginning with the date of the participant's
death but in no event beyond the Final Exercise Date. All options held by a
participant immediately prior to death that are not then exercisable shall
terminate on the date of death.

      (i) Termination of Service Other Than By Death. Except as the Board may
otherwise determine or may otherwise specify in any award, if an employee's
employment with the Company and its subsidiaries terminates for any reason other
than by death, all options held by the employee that are not then exercisable
shall terminate. Options that are exercisable on the date employment terminates
shall continue to be exercisable for a period of three months (or such longer
period as the Board may determine, but in no event beyond the Final Exercise
Date) unless the employee was discharged for cause that in the opinion of the
Board casts such discredit on the employee as to justify termination of the
employee's options. After completion of the post-termination exercise period,
such options shall terminate to the extent not previously exercised, expired or
terminated. For purposes of this Section 6(i), employment shall not be
considered terminated (i) in the case of sick leave or other bona fide leave of
absence approved for purposes of the Plan by the Board, so long as the
employee's right to reemployment is guaranteed either by statute or by contract,
or (ii) in the case of a transfer of employment between the Company and a
subsidiary or between subsidiaries, or to the employment of a corporation (or a
parent or subsidiary corporation of such corporation) issuing or assuming an
option in a transaction to which section 424(a) of the Code applies.

      In the case of a participant who is not an employee, provisions relating
to the exercisability of options following termination of service shall be
specified in the award. If not so specified, all options held by such
participant that are not then exercisable shall terminate upon termination of
service. Options that are exercisable on the date the participant's service as a
director, consultant or adviser terminates shall continue to be exercisable for
a period of three months (or such longer period as the Board may determine, but
in no event beyond the Final Exercise Date) unless the director, consultant or
adviser was terminated for cause that in the opinion of the Board casts such
discredit on him or her as to justify termination of his or her options. After
completion of the post-termination exercise period, such options shall terminate
to the extent not previously exercised, expired or terminated.

      (j) Acceleration of Vesting and Termination upon Certain Events. In the
event of a consolidation or merger in which the Company is not the surviving
corporation (other than a merger with a wholly owned subsidiary consummated for
the sole purpose of changing the Company's jurisdiction of incorporation) or
which results in the acquisition of substantially all the Company's outstanding
Stock by a single person or entity or by a group of persons and/or entities
acting in concert, or in the event of the sale or transfer of substantially all
the Company's assets, all outstanding awards shall thereupon terminate, provided
that all outstanding awards shall become fully Vested and exercisable
immediately prior to consummation of such merger, consolidation or sale of
assets unless, if there is a surviving or acquiring corporation, the Board has
arranged, subject to consummation of the merger, consolidation or sale of
assets, for the assumption of the awards or the grant to participants of
replacement awards by that corporation

                                      -7-
<PAGE>

or an affiliate of that corporation, which awards in the case of incentive
options shall satisfy the requirements of section 424(a) of the Code.

      In addition, in the event of the consummation of a Qualified Sale of the
Company (as defined below) or the initial public offering of the Company, all
outstanding awards shall become fully Vested and exercisable immediately prior
to consummation of such Qualified Sale of the Company or initial public
offering. The term "Qualified Sale of the Company" shall mean the occurrence of
any of the following events in which the proceeds received (or available for
distribution by the Company) in respect of each share of Series A Redeemable
Convertible Preferred Stock, $.01 par value ("Series A Preferred"), shall be at
least twice the original price per share paid for such share of Series A
Preferred (as adjusted for stock splits, combinations, reclassifications and
similar events affecting the Series A Preferred): (a) the sale, lease or
transfer of all or substantially all of the assets of the Company to any person
or group (as such term is used in Section 13(d)(3) of the Exchange Act) other
than a wholly-owned subsidiary of the Company; (b) the consummation of any
transaction as a result of which holders of voting stock of the Company
immediately prior to such transaction would own beneficially (as such term is
used in Section 13(d) of the Exchange Act, but without regard to any concept of
aggregation of Persons), directly or indirectly, 50% or less of the voting stock
of the Company immediately after such transaction; or (c) the consummation of
any transaction (including any merger or consolidation) as a result of which any
person or group (as such term is used in Section 13(d)(3) of the Exchange Act)
becomes the "beneficial owner" (as defined in Section 13(d) of the Exchange Act)
of 50% or more (by vote) of the voting stock of the Company.

7. EMPLOYMENT RIGHTS

      Neither the adoption of the Plan nor the grant of awards shall confer upon
any participant any right to continue as an employee or director of, or
consultant or adviser to, the Company or any parent or subsidiary or affect in
any way the right of the Company or parent or subsidiary to terminate them at
any time. Except as specifically provided by the Board in any particular case,
the loss of existing or potential profit in awards granted under this Plan shall
not constitute an element of damages in the event of termination of the
relationship of a participant even if the termination is in violation of an
obligation of the Company to the participant by contract or otherwise.

8. EFFECT, DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION

      Neither adoption of the Plan nor the grant of awards to a participant
shall affect the Company's right to make awards to such participant that are not
subject to the Plan, to issue to such participant Stock as a bonus or otherwise,
or to adopt other plans or arrangements under which Stock may be issued.

      With the consent of the participant, the Board may at any time cancel an
existing award in whole or in part and grant another award for such number of
shares as the Board specifies. The Board may at any time or times amend the Plan
or any outstanding award for the purpose of

                                      -8-
<PAGE>

satisfying the requirements of section 422 of the Code or of any changes in
applicable laws or regulations, or for any other purpose that may at the time be
permitted by law including but not limited to the acceleration of vesting of any
outstanding award, or may at any time terminate the Plan as to further grants of
awards, but no such amendment shall adversely affect the rights of any
participant (without the participant's consent) under any award previously
granted.

9. LOCK UP

      By receipt and acceptance of a Option, each participant agrees, if
requested in writing by an underwriter of Common Stock or other securities of
the Company, not to sell, assign, donate, pledge, encumber, hypothecate, grant
an option to, or otherwise transfer or dispose of, whether in privately
negotiated or open market transactions, any Common Stock or other securities of
the Company held by him, her or it during the 180-day period following the
effective date of a registration statement filed pursuant to the Company's
initial public offering. The provisions of this Section 9 are intended to be
automatic in effect, and no further acknowledgement or evidence of agreement
shall be required for the Company or its transfer agent to enforce the
provisions of this Section 9, or for the Company or its transfer agent to enter
into a "stop transfer" or similar order with respect to securities of the
Company held by participants.

                                      * * *

                                      -9-

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