Document:

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                                                                    Exhibit 10.1

                        MORTGAGE LOAN PURCHASE AGREEMENT

     For Ten Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, FIRST HORIZON HOME
LOAN CORPORATION, a Kansas corporation (the "Seller"), does hereby transfer,
sell and convey to FIRST HORIZON ASSET SECURITIES INC. (the "Purchaser"), and
the Purchaser does hereby purchase and acquire on the terms set forth herein,
certain mortgage loans owned by the Seller (the "Mortgage Loans") which Mortgage
Loans are more particularly listed and described in Schedule A attached hereto
and made a part hereof.

     This Mortgage Loan Purchase Agreement ("Agreement") is executed upon the
following terms and conditions:

                                   DEFINITIONS

     Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a day
on which banking institutions in the City of Dallas, or the State of Texas or
New York City is located are authorized or obligated by law or executive order
to be closed.

     Closing Date: October 30, 2002.

     Code: The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

     Cooperative Corporation: The entity that holds title (fee or an acceptable
leasehold estate) to the real property and improvements constituting the
Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

     Coop Shares: Shares issued by a Cooperative Corporation.

     Cooperative Loan: Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.

     Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

     Cooperative Unit: A single family dwelling located in a Cooperative
Property.

     Custodian: LaSalle Bank National Association, a national banking
association, and its successors and assigns, as custodian under the Custodial
Agreement dated as of October 30, 2002 by and among The Bank of New York, as
trustee, First Horizon Home Loan Corporation, as master servicer, and the
Custodian.

     Cut-Off Date: October 1, 2002.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the Stated
Principal Balance thereof as of the close of business on the Cut-off Date.

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     Debt Service Reduction: With respect to any Mortgage Loan, a reduction by a
court of competent jurisdiction in a proceeding under the Bankruptcy Code in the
Scheduled Payment for such Mortgage Loan which became final and non-appealable,
except such a reduction resulting from a Deficient Valuation or any reduction
that results in a permanent forgiveness of principal.

     Deficient Valuation: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then-outstanding indebtedness under the Mortgage Loan, or any reduction in
the amount of principal to be paid in connection with any Scheduled Payment that
results in a permanent forgiveness of principal, which valuation or reduction
results from an order of such court which is final and non-appealable in a
proceeding under the United States Bankruptcy Reform Act of 1978, as amended.

     Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to the Trustee or to the
Custodian on its behalf on the Closing Date. The number of Delay Delivery
Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as
of the Closing Date.

     Deleted Mortgage Loan: As defined in Section 3.1(c) hereof.

     Determination Date: The earlier of (i) the third Business Day after the
15th day of each month, and (ii) the second Business Day prior to the 25/th/ day
of each month, or if such 25/th/ day is not a Business Day, the next succeeding
Business Day.

     Insurance Proceeds: Proceeds paid by an insurer pursuant to any insurance
policy, including all riders and endorsements thereto in effect, including any
replacement policy or policies, in each case other than any amount included in
such Insurance Proceeds in respect of expenses covered by such insurance policy.

     Liquidation Proceeds: Amounts, including Insurance Proceeds, received in
connection with the partial or complete liquidation of defaulted Mortgage Loans,
whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property.

     Mortgage: The mortgage, deed of trust or other instrument creating a first
lien on the property securing a Mortgage Note.

     Mortgage File: The mortgage documents listed in Section 2.1 pertaining to a
particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to this Agreement.

     Mortgage Loans: The mortgage loans transferred, sold and conveyed by the
Seller to the Purchaser, pursuant to this Agreement.

     Mortgage Loan Purchase Price: With respect to any Mortgage Loan required to
be purchased by the Seller pursuant to Section 3.1(c) hereof, an amount equal to
the sum of (i) 100% of the unpaid principal balance of the Mortgage Loan on the
date of such purchase, and (ii) accrued interest thereon at the applicable
Mortgage Rate from the date through which interest

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was last paid by the Mortgagor to the first day in the month in which the
Mortgage Loan Purchase Price is to be distributed to the Purchaser or its
designees.

     Mortgage Note: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

     Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

     Mortgagor: The obligor(s) on a Mortgage Note.

     Principal Prepayment: Any payment of principal by a Mortgagor on a Mortgage
Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment.

     Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

     Purchase Price: $552,004,048.

     Purchaser: First Horizon Asset Securities Inc., a Delaware corporation, in
its capacity as purchaser of the Mortgage Loans from the Seller pursuant to this
Agreement.

     Recognition Agreement: With respect to any Cooperative Loan, an agreement
between the Cooperative Corporation and the originator of such Mortgage Loan
which establishes the rights of such originator in the Cooperative Property.

     Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due on
the first day of the month allocable to principal and/or interest on such
Mortgage Loan which, unless otherwise specified herein, shall give effect to any
related Debt Service Reduction and any Deficient Valuation that affects the
amount of the monthly payment due on such Mortgage Loan.

     Security Agreement: The security agreement with respect to a Cooperative
Loan.

     Seller: First Horizon Home Loan Corporation, a Kansas corporation, and its
successors and assigns, in its capacity as seller of the Mortgage Loans.

     Stated Principal Balance: As to any Mortgage Loan, the unpaid principal
balance of such Mortgage Loan as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by
reason of any moratorium or similar waiver or grace period) after giving effect
to any previous partial Principal Prepayments and Liquidation Proceeds allocable
to principal (other than with respect to any Liquidated Mortgage Loan) and to
the payment of principal due on such date and irrespective of any delinquency in
payment by the related Mortgagor.

     Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for a
Deleted Mortgage Loan which must, on the date of such substitution, (i) have a
Stated Principal Balance,

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after deduction of the principal portion of the Scheduled Payment due in the
month of substitution, not in excess of, and not more than 10% less than the
Stated Principal Balance of the Deleted Mortgage Loan; (ii) have Mortgage Rate
not lower than the Mortgage Rate of the Deleted Mortgage Loan; (iii) have a
maximum mortgage rate not more than 1% per annum higher or lower than the
maximum mortgage rate of the Deleted Mortgage Loan; (iv) have a minimum mortgage
rate specified in its related Mortgage Note not more than 1% per annum higher or
lower than the minimum mortgage rate of the Deleted Mortgage Loan; (v) have the
same mortgage index, reset period and periodic rate as the Deleted Mortgage Loan
and a gross margin not more than 1% per annum higher or lower than that of the
Deleted Mortgage Loan (vi) be accruing interest at a rate no lower than and not
more than 1% per annum higher than, that of the Deleted Mortgage Loan; (iv) have
a loan-to-value ratio no higher than that of the Deleted Mortgage Loan; (vii)
have a remaining term to maturity no greater than (and not more than one year
less than that of) the Deleted Mortgage Loan; (viii) not be a Cooperative Loan
unless the Deleted Mortgage Loan was a Cooperative Loan and (ix) comply with
each representation and warranty set forth in Schedule B hereto.

     Trustee: The Bank of New York and its successors and, if a successor
trustee is appointed hereunder, such successor.

                                   ARTICLE I
                                Purchase and Sale

     Section 1.1 Purchase Price. In consideration for the payment to it of the
Purchase Price on the Closing Date, pursuant to written instructions delivered
by the Seller to the Purchaser on the Closing Date, the Seller does hereby
transfer, sell and convey to the Purchaser on the Closing Date, but with effect
from the Cut-off Date, (i) all right, title and interest of the Seller in the
Mortgage Loans and all property securing such Mortgage Loans, including all
interest and principal received or receivable by the Seller with respect to the
Mortgage Loans on or after the Cut-off Date and all interest and principal
payments on the Mortgage Loans received on or prior to the Cut-off Date in
respect of installments of interest and principal due thereafter, but not
including payments of principal and interest due and payable on the Mortgage
Loans on or before the Cut-off Date, and (ii) all proceeds from the foregoing.
Items (i) and (ii) in the preceding sentence are herein referred to collectively
as "Mortgage Assets."

     Section 1.2 Timing. The sale of the Mortgage Assets hereunder shall take
place on the Closing Date.

                                   ARTICLE II
                             Conveyance and Delivery

     Section 2.1 Delivery of Mortgage Files. In connection with the transfer and
assignment set forth in Section 1.1 above, the Seller has delivered or caused to
be delivered to the Trustee or to the Custodian on its behalf (or, in the case
of the Delay Delivery Mortgage Loans, will deliver or cause to be delivered to
the Trustee or to the Custodian on its behalf within thirty (30) days following
the Closing Date) the following documents or instruments with respect to each
Mortgage Loan so assigned (collectively, the "Mortgage Files"):

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          (a)  (1)  the original Mortgage Note endorsed by manual or facsimile
     signature in blank in the following form: "Pay to the order of
     ________________, without recourse," with all intervening endorsements
     showing a complete chain of endorsement from the originator to the Person
     endorsing the Mortgage Note (each such endorsement being sufficient to
     transfer all right, title and interest of the party so endorsing, as
     noteholder or assignee thereof, in and to that Mortgage Note); or

               (2)  with respect to any Lost Mortgage Note, a lost note
          affidavit from the Seller stating that the original Mortgage Note was
          lost or destroyed, together with a copy of such Mortgage Note;

     (b)  except as provided below, the original recorded Mortgage or a copy of
          such Mortgage certified by the Seller as being a true and complete
          copy of the Mortgage;

     (c)  a duly executed assignment of the Mortgage in blank (which may be
          included in a blanket assignment or assignments), together with,
          except as provided below, all interim recorded assignments of such
          mortgage (each such assignment, when duly and validly completed, to be
          in recordable form and sufficient to effect the assignment of and
          transfer to the assignee thereof, under the Mortgage to which the
          assignment relates); provided that, if the related Mortgage has not
          been returned from the applicable public recording office, such
          assignment of the Mortgage may exclude the information to be provided
          by the recording office;

     (d)  the original or copies of each assumption, modification, written
          assurance or substitution agreement, if any;

     (e)  either the original or duplicate original title policy (including all
          riders thereto) with respect to the related Mortgaged Property, if
          available, provided that the title policy (including all riders
          thereto) will be delivered as soon as it becomes available, and if the
          title policy is not available, and to the extent required pursuant to
          the second paragraph below or otherwise in connection with the rating
          of the Certificates, a written commitment or interim binder or
          preliminary report of the title issued by the title insurance or
          escrow company with respect to the Mortgaged Property, and

     (f)  in the case of a Cooperative Loan, the originals of the following
          documents or instruments:

               (1)  The Coop Shares, together with a stock power in blank;

               (2)  The executed Security Agreement;

               (3)  The executed Proprietary Lease;

               (4)  The executed Recognition Agreement;

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               (5)  The executed UCC-1 financing statement with evidence of
          recording thereon which have been filed in all places required to
          perfect the Seller's interest in the Coop Shares and the Proprietary
          Lease; and

               (6)  Executed UCC-3 financing statements or other appropriate UCC
          financing statements required by state law, evidencing a complete and
          unbroken line from the mortgagee to the Trustee with evidence of
          recording thereon (or in a form suitable for recordation).

     In the event that in connection with any Mortgage Loan the Seller cannot
deliver (i) the original recorded Mortgage or (ii) all interim recorded
assignments satisfying the requirements of clause (b) or (c) above,
respectively, concurrently with the execution and delivery hereof because such
document or documents have not been returned from the applicable public
recording office, the Seller shall promptly deliver or cause to be delivered to
the Trustee or the Custodian on its behalf such original Mortgage or such
interim assignment, as the case may be, with evidence of recording indicated
thereon upon receipt thereof from the public recording office, or a copy
thereof, certified, if appropriate, by the relevant recording office, but in no
event shall any such delivery of the original Mortgage and each such interim
assignment or a copy thereof, certified, if appropriate, by the relevant
recording office, be made later than one year following the Closing Date;
provided, however, in the event the Seller is unable to deliver or cause to be
delivered by such date each Mortgage and each such interim assignment by reason
of the fact that any such documents have not been returned by the appropriate
recording office, or, in the case of each such interim assignment, because the
related Mortgage has not been returned by the appropriate recording office, the
Seller shall deliver or cause to be delivered such documents to the Trustee or
the Custodian on its behalf as promptly as possible upon receipt thereof and, in
any event, within 720 days following the Closing Date. The Seller shall forward
or cause to be forwarded to the Trustee or the Custodian on its behalf (i) from
time to time additional original documents evidencing an assumption or
modification of a Mortgage Loan and (ii) any other documents required to be
delivered by the Seller to the Trustee. In the event that the original Mortgage
is not delivered and in connection with the payment in full of the related
Mortgage Loan and the public recording office requires the presentation of a
"lost instruments affidavit and indemnity" or any equivalent document, because
only a copy of the Mortgage can be delivered with the instrument of satisfaction
or reconveyance, the Seller shall execute and deliver or cause to be executed
and delivered such a document to the public recording office. In the case where
a public recording office retains the original recorded Mortgage or in the case
where a Mortgage is lost after recordation in a public recording office, the
Seller shall deliver or cause to be delivered to the Trustee or the Custodian on
its behalf a copy of such Mortgage certified by such public recording office to
be a true and complete copy of the original recorded Mortgage.

     In addition, in the event that in connection with any Mortgage Loan the
Seller cannot deliver or cause to be delivered the original or duplicate
original lender's title policy (together with all riders thereto), satisfying
the requirements of clause (v) above, concurrently with the execution and
delivery hereof because the related Mortgage has not been returned from the
applicable public recording office, the Seller shall promptly deliver or cause
to be delivered to the Trustee or the Custodian on its behalf such original or
duplicate original lender's title policy (together with all riders thereto) upon
receipt thereof from the applicable title insurer, but in no event shall any
such delivery of the original or duplicate original lender's title policy be
made

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later than one year following the Closing Date; provided, however, in the event
the Seller is unable to deliver or cause to be delivered by such date the
original or duplicate original lender's title policy (together with all riders
thereto) because the related Mortgage has not been returned by the appropriate
recording office, the Seller shall deliver or cause to be delivered such
documents to the Trustee or the Custodian on its behalf as promptly as possible
upon receipt thereof and, in any event, within 720 days following the Closing
Date.

     Notwithstanding anything to the contrary in this Agreement, within thirty
days after the Closing Date, the Seller shall either (i) deliver or cause to be
delivered to the Trustee or the Custodian on its behalf the Mortgage File as
required pursuant to this Section 2.1 for each Delay Delivery Mortgage Loan or
(ii) (A) substitute or cause to be substituted a Substitute Mortgage Loan for
the Delay Delivery Mortgage Loan or (B) repurchase or cause to be repurchased
the Delay Delivery Mortgage Loan, which substitution or repurchase shall be
accomplished in the manner and subject to the conditions set forth in Section
3.1 (treating each Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for
purposes of such Section 3.1), provided, however, that if the Seller fails to
deliver a Mortgage File for any Delay Delivery Mortgage Loan within the
thirty-day period provided in the prior sentence, the Seller shall use its best
reasonable efforts to effect or cause to be effected a substitution, rather than
a repurchase of, such Deleted Mortgage Loan and provided further that the cure
period provided for in Section 3.1 hereof shall not apply to the initial
delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but rather
the Seller shall have five (5) Business Days to cure or cause to be cured such
failure to deliver.

                                  ARTICLE III
                         Representations and Warranties

     Section 3.1  Representations and Warranties of the Seller. (a) The Seller
hereby represents and warrants to the Purchaser, as of the date of execution and
delivery hereof, that:

                  (1)  The Seller is duly organized as a Kansas corporation and
          is validly existing and in good standing under the laws of the State
          of Kansas and is duly authorized and qualified to transact any and all
          business contemplated by this Agreement to be conducted by the Seller
          in any state in which a Mortgaged Property is located or is otherwise
          not required under applicable law to effect such qualification and, in
          any event, is in compliance with the doing business laws of any such
          state, to the extent necessary to ensure its ability to enforce each
          Mortgage Loan and to perform any of its other obligations under this
          Agreement in accordance with the terms thereof.

                  (2)  The Seller has the full corporate power and authority to
          sell each Mortgage Loan, and to execute, deliver and perform, and to
          enter into and consummate the transactions contemplated by this
          Agreement and has duly authorized by all necessary corporate action on
          the part of the Seller the execution, delivery and performance of this
          Agreement; and this Agreement, assuming the due authorization,
          execution and delivery thereof by the other parties thereto,
          constitutes a legal, valid and binding obligation of the Seller,
          enforceable against the Seller in accordance with its terms, except
          that (a) the

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          enforceability thereof may be limited by bankruptcy, insolvency,
          moratorium, receivership and other similar laws relating to creditors'
          rights generally and (b) the remedy of specific performance and
          injunctive and other forms of equitable relief may be subject to
          equitable defenses and to the discretion of the court before which any
          proceeding therefor may be brought.

               (3)  The execution and delivery of this Agreement by the Seller,
          the sale of the Mortgage Loans by the Seller under this Agreement, the
          consummation of any other of the transactions contemplated by this
          Agreement, and the fulfillment of or compliance with the terms thereof
          are in the ordinary course of business of the Seller and will not (a)
          result in a material breach of any term or provision of the charter or
          by-laws of the Seller or (b) materially conflict with, result in a
          material breach, violation or acceleration of, or result in a material
          default under, the terms of any other material agreement or instrument
          to which the Seller is a party or by which it may be bound, or (c)
          constitute a material violation of any statute, order or regulation
          applicable to the Seller of any court, regulatory body, administrative
          agency or governmental body having jurisdiction over the Seller; and
          the Seller is not in breach or violation of any material indenture or
          other material agreement or instrument, or in violation of any
          statute, order or regulation of any court, regulatory body,
          administrative agency or governmental body having jurisdiction over it
          which breach or violation may materially impair the Seller's ability
          to perform or meet any of its obligations under this Agreement.

               (4)  No litigation is pending or, to the best of the Seller's
          knowledge, threatened against the Seller that would prohibit the
          execution or delivery of, or performance under, this Agreement by the
          Seller.

          (b)  The Seller hereby makes the representations and warranties set
     forth in Schedule B hereto to the Purchaser, as of the Closing Date, or if
     so specified therein, as of the Cut-off Date.

          (c)  Upon discovery by either of the parties hereto of a breach of a
     representation or warranty made pursuant to Schedule B hereto that
     materially and adversely affects the interests of the Purchaser in any
     Mortgage Loan, the party discovering such breach shall give prompt notice
     thereof to the other party. The Seller hereby covenants that within 90 days
     of the earlier of its discovery or its receipt of written notice from the
     Purchaser of a breach of any representation or warranty made pursuant to
     Schedule B hereto which materially and adversely affects the interests of
     the Purchaser in any Mortgage Loan, it shall cure such breach in all
     material respects, and if such breach is not so cured, shall, (i) if such
     90-day period expires prior to the second anniversary of the Closing Date,
     remove such Mortgage Loan (a "Deleted Mortgage Loan") from the pool of
     mortgages listed on Schedule B hereto and substitute in its place a
     Substitute Mortgage Loan, in the manner and subject to the conditions set
     forth in this Section; or (ii) repurchase the affected Mortgage Loan or
     Mortgage Loans from the Purchaser at the Mortgage Loan Purchase Price in
     the manner set forth below. With respect to the representations and
     warranties described in this Section which are made to

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     the best of the Seller's knowledge, if it is discovered by either the
     Seller or the Purchaser that the substance of such representation and
     warranty is inaccurate and such inaccuracy materially and adversely affects
     the value of the related Mortgage Loan or the interests of the Purchaser
     therein, notwithstanding the Seller's lack of knowledge with respect to the
     substance of such representation or warranty, such inaccuracy shall be
     deemed a breach of the applicable representation or warranty.

          With respect to any Substitute Mortgage Loan or Loans, the Seller
     shall deliver to the Trustee or to the Custodian on its behalf the Mortgage
     Note, the Mortgage, the related assignment of the Mortgage, and such other
     documents and agreements as are required by Section 2.1, with the Mortgage
     Note endorsed and the Mortgage assigned as required by Section 2.1. No
     substitution is permitted to be made in any calendar month after the
     Determination Date for such month. Scheduled Payments due with respect to
     Substitute Mortgage Loans in the month of substitution will be retained by
     the Seller. Upon such substitution, the Substitute Mortgage Loan or Loans
     shall be subject to the terms of this Agreement in all respects, and the
     Seller shall be deemed to have made with respect to such Substitute
     Mortgage Loan or Loans, as of the date of substitution, the representations
     and warranties made pursuant to Schedule B hereto with respect to such
     Mortgage Loan.

          It is understood and agreed that the obligation under this Agreement
     of the Seller to cure, repurchase or replace any Mortgage Loan as to which
     a breach has occurred and is continuing shall constitute the sole remedy
     against the Seller respecting such breach available to the Purchaser on its
     behalf.

     It is understood and agreed that the representations and warranties set
forth in this Section 3.1 shall survive the sale of the Mortgage Loans to the
Purchaser hereunder.

                                   ARTICLE IV
                                  Miscellaneous

     Section 4.1 Transfer Intended as Sale. It is the express intent of the
parties hereto that the conveyance of the Mortgage Loans by the Seller to the
Purchaser be, and be construed as, absolute sales thereof. It is, further, not
the intention of the parties that such conveyances be deemed a pledge thereof by
the Seller to the Purchaser. However, in the event that, notwithstanding the
intent of the parties, the Mortgage Loans are held to be the property of the
Seller or the Purchaser, respectively, or if for any other reason this Agreement
is held or deemed to create a security interest in such assets, then (i) this
Agreement shall be deemed to be a security agreement within the meaning of the
Uniform Commercial Code of the State of Texas and (ii) the conveyance of the
Mortgage Loans provided for in this Agreement shall be deemed to be an
assignment and a grant by the Seller to the Purchaser of a security interest in
all of the Mortgage Loans, whether now owned or hereafter acquired.

     The Seller and the Purchaser shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans, such
security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term

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of the Agreement.  The Seller and the Purchaser shall arrange for filing any
Uniform Commercial Code continuation statements in connection with any security
interest granted hereby.

     Section 4.2  Seller's Consent to Assignment. The Seller hereby consents to
the assignment, transfer and conveyance by the Purchaser to a third party of all
of the Purchaser's rights hereunder.

     Section 4.3  Specific Performance. Either party or its assignees may
enforce specific performance of this Agreement.

     Section 4.4  Notices. All notices, demands and requests that may be given
or that are required to be given hereunder shall be sent by United States
certified mail, postage prepaid, return receipt requested, to the parties at
their respective addresses as follows:

                  If to
                  the Purchaser:        4000 Horizon Way
                                        Irving, Texas 75063
                                        Attn: Larry P. Cole

                  If to the Seller:     4000 Horizon Way
                                        Irving, Texas 75063
                                        Attn: Larry P. Cole

     Section 4.5  Choice of Law. This Agreement shall be construed in accordance
with and governed by the substantive laws of the State of Texas applicable to
agreements made and to be performed in the State of Texas and the obligations,
rights and remedies of the parties hereto shall be determined in accordance with
such laws.

                  [remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, the Purchaser and the Seller have caused their names to
be signed hereto by their respective officers thereunto duly authorized as of
the 30th day of October, 2002.

                               FIRST HORIZON HOME LOAN
                               CORPORATION, as Seller

                               By: /s/ Wade Walker
                                  ----------------------------------------------
                                    Wade Walker
                                    Senior Vice President - Asset Securitization

                               FIRST HORIZON ASSET SECURITIES INC.,
                               as Purchaser

                               By: /s/ Wade Walker
                                  ----------------------------------------------
                                    Wade Walker
                                    Senior Vice President - Asset Securitization

Mortgage Loan Purchase Agreement - Signature Page, 2002-7

<PAGE>

                                   SCHEDULE A

                              [BEGINS ON NEXT PAGE]

<PAGE>

                                   SCHEDULE B

             Representations and Warranties as to the Mortgage Loans

     First Horizon Home Loan Corporation ("Seller") hereby makes the
representations and warranties set forth in this Schedule B to the Purchaser, as
of the Closing Date, or if so specified herein, as of the Cut-off Date or date
of origination of the Mortgage Loan. Capitalized terms used but not otherwise
defined in this Schedule B shall have the meanings ascribed thereto in the
Mortgage Loan Purchase Agreement, dated as of October 30, 2002 (the "MLPA"),
between First Horizon Home Loan Corporation, as seller, and First Horizon Asset
Securities Inc., as purchaser ("Purchaser").

     (1)  The information set forth on Schedule A to the MLPA, with respect to
          each Mortgage Loan is true and correct in all material respects as of
          the Closing Date.

     (2)  Each Mortgage is a valid and enforceable first lien on the Mortgaged
          Property subject only to (a) the lien of nondelinquent current real
          property taxes and assessments and liens or interests arising under or
          as a result of any federal, state or local law, regulation or
          ordinance relating to hazardous wastes or hazardous substances and, if
          the related Mortgaged Property is a unit in a condominium project or
          Planned Unit Development, any lien for common charges permitted by
          statute or homeowner association fees, (b) covenants, conditions and
          restrictions, rights of way, easements and other matters of public
          record as of the date of recording of such Mortgage, such exceptions
          appearing of record being generally acceptable to mortgage lending
          institutions in the area wherein the related Mortgaged Property is
          located or specifically reflected in the appraisal made in connection
          with the origination of the related Mortgage Loan, and (c) other
          matters to which like properties are commonly subject which do not
          materially interfere with the benefits of the security intended to be
          provided by such Mortgage.

     (3)  Immediately prior to the assignment of the Mortgage Loans to the
          Purchaser, the Seller had good title to, and was the sole owner of,
          each Mortgage Loan free and clear of any pledge, lien, encumbrance or
          security interest and had full right and authority, subject to no
          interest or participation of, or agreement with, any other party, to
          sell and assign the same pursuant to this Agreement.

     (4)  As of the date of origination of each Mortgage Loan, there was no
          delinquent tax or assessment lien against the related Mortgaged
          Property.

     (5)  There is no valid offset, defense or counterclaim to any Mortgage Note
          or Mortgage, including the obligation of the Mortgagor to pay the
          unpaid principal of or interest on such Mortgage Note.

     (6)  There are no mechanics' liens or claims for work, labor or material
          affecting any Mortgaged Property which are or may be a lien prior to,
          or equal with, the lien of such Mortgage, except those which are
          insured against by the title insurance policy referred to in item (10)
          below.

                                      B-1

<PAGE>

     (7)  To the best of the Seller's knowledge, no Mortgaged Property has been
          materially damaged by water, fire, earthquake, windstorm, flood,
          tornado or similar casualty (excluding casualty from the presence of
          hazardous wastes or hazardous substances, as to which the Seller makes
          no representation) so as to affect adversely the value of the related
          Mortgaged Property as security for such Mortgage Loan.

     (8)  Each Mortgage Loan at origination complied in all material respects
          with applicable state and federal laws, including, without limitation,
          usury, equal credit opportunity, real estate settlement procedures,
          truth-in-lending and disclosure laws or any noncompliance does not
          have a material adverse effect on the value of the related Mortgage
          Loan.

     (9)  Except as reflected in a written document contained in the related
          Mortgage File, the Seller has not modified the Mortgage in any
          material respect; satisfied, cancelled or subordinated such Mortgage
          in whole or in part; released the related Mortgaged Property in whole
          or in part from the lien of such Mortgage; or executed any instrument
          of release, cancellation, modification or satisfaction with respect
          thereto.

     (10) A lender's policy of title insurance together with a condominium
          endorsement and extended coverage endorsement, if applicable, in an
          amount at least equal to the Cut-off Date Principal Balance of each
          such Mortgage Loan or a commitment (binder) to issue the same was
          effective on the date of the origination of each Mortgage Loan, each
          such policy is valid and remains in full force and effect.

     (11) To the best of the Seller's knowledge, all of the improvements which
          were included for the purpose of determining the appraised value of
          the Mortgaged Property lie wholly within the boundaries and building
          restriction lines of such property, and no improvements on adjoining
          properties encroach upon the Mortgaged Property, unless such failure
          to be wholly within such boundaries and restriction lines or such
          encroachment, as the case may be, does not have a material effect on
          the value of such Mortgaged Property.

     (12) To the best of the Seller's knowledge, as of the date of origination
          of each Mortgage Loan, no improvement located on or being part of the
          Mortgaged Property is in violation of any applicable zoning law or
          regulation unless such violation would not have a material adverse
          effect on the value of the related Mortgaged Property. To the best of
          the Seller's knowledge, all inspections, licenses and certificates
          required to be made or issued with respect to all occupied portions of
          the Mortgaged Property and, with respect to the use and occupancy of
          the same, including but not limited to certificates of occupancy and
          fire underwriting certificates, have been made or obtained from the
          appropriate authorities, unless the lack thereof would not have a
          material adverse effect on the value of such Mortgaged Property.

                                      B-2

<PAGE>

     (13) The Mortgage Note and the related Mortgage are genuine, and each is
          the legal, valid and binding obligation of the maker thereof,
          enforceable in accordance with its terms and under applicable law.

     (14) The proceeds of the Mortgage Loan have been fully disbursed and there
          is no requirement for future advances thereunder.

     (15) The related Mortgage contains customary and enforceable provisions
          which render the rights and remedies of the holder thereof adequate
          for the realization against the Mortgaged Property of the benefits of
          the security, including, (i) in the case of a Mortgage designated as a
          deed of trust, by trustee's sale, and (ii) otherwise by judicial
          foreclosure.

     (16) With respect to each Mortgage constituting a deed of trust, a trustee,
          duly qualified under applicable law to serve as such, has been
          properly designated and currently so serves and is named in such
          Mortgage, and no fees or expenses are or will become payable by the
          holder of the Mortgage to the trustee under the deed of trust, except
          in connection with a trustee's sale after default by the Mortgagor.

     (17) At the Cut-off Date, the improvements upon each Mortgaged Property are
          covered by a valid and existing hazard insurance policy with a
          generally acceptable carrier that provides for fire and extended
          coverage and coverage for such other hazards as are customarily
          required by institutional single family mortgage lenders in the area
          where the Mortgaged Property is located, and the Seller has received
          no notice that any premiums due and payable thereon have not been
          paid; the Mortgage obligates the Mortgagor thereunder to maintain all
          such insurance including flood insurance at the Mortgagor's cost and
          expense. Anything to the contrary in this item (17) notwithstanding,
          no breach of this item (17) shall be deemed to give rise to any
          obligation of the Seller to repurchase or substitute for such affected
          Mortgage Loan or Loans so long as the Seller maintains a blanket
          policy.

     (18) If at the time of origination of each Mortgage Loan, related the
          Mortgaged Property was in an area then identified in the Federal
          Register by the Federal Emergency Management Agency as having special
          flood hazards, a flood insurance policy in a form meeting the
          then-current requirements of the Flood Insurance Administration is in
          effect with respect to such Mortgaged Property with a generally
          acceptable carrier.

     (19) To the best of the Seller's knowledge, there is no proceeding pending
          or threatened for the total or partial condemnation of any Mortgaged
          Property, nor is such a proceeding currently occurring.

     (20) To best of the Seller's knowledge, there is no material event which,
          with the passage of time or with notice and the expiration of any
          grace or cure period, would constitute a material non-monetary
          default, breach, violation or event of acceleration under the Mortgage
          or the related Mortgage Note; and the Seller has

                                      B-3

<PAGE>

          not waived any material non-monetary default, breach, violation or
          event of acceleration.

     (21) Any leasehold estate securing a Mortgage Loan has a stated term at
          least as long as the term of the related Mortgage Loan.

     (22) Each Mortgage Loan was selected from among the outstanding
          adjustable-rate one- to four-family mortgage loans in the Seller's
          portfolio at the Closing Date as to which the representations and
          warranties made with respect to the Mortgage Loans set forth in this
          Schedule B can be made. No such selection was made in a manner
          intended to adversely affect the interests of the Certificateholders.

     (23) The Mortgage Loans provide for the full amortization of the amount
          financed over a series of monthly payments.

     (24) At origination, substantially all of the Mortgage Loans in the
          Mortgage Pools had stated terms to maturity of 30 years.

     (25) Scheduled monthly payments made by the Mortgagors on the Mortgage
          Loans either earlier or later than their Due Dates will not affect the
          amortization schedule or the relative application of the payments to
          principal and interest.

     (26) The Mortgage Loans may be prepaid at any time by the related
          Mortgagors without penalty.

     (27) Substantially all of the Mortgage Loans are jumbo mortgage loans that
          have Stated Principal Balances at origination that exceed the then
          applicable limitations for purchase by Fannie Mae and Freddie Mac.

     (28) Each Mortgage Loan in Pool I was originated on or after November 5,
          2001. Each Mortgage Loan in Pool II was originated on or after July
          17, 2002.

     (29) The latest stated maturity date of any Mortgage Loan in Pool I is
          November 1, 2032, and the earliest stated maturity date of any
          Mortgage Loan in Pool I is August 1, 2032. The latest stated maturity
          date of any Mortgage Loan in Pool II is October 1, 2017 and the
          earliest stated maturity date of any Mortgage Loan in Pool II is
          September 1, 2012.

     (30) No Mortgage Loan was delinquent more than 30 days as of the Cut-off
          Date.

     (31) No Mortgage Loan had a Loan-to-Value Ratio at origination of more than
          95%. Generally, each Mortgage Loan with a Loan-to-Value Ratio at
          origination of greater than 80% is covered by a Primary Insurance
          Policy issued by a mortgage insurance company that is acceptable to
          Fannie Mae or Freddie Mac.

     (32) Each Mortgage Loan constitutes a "qualified mortgage" within the
          meaning of Section 860G(a)(3) of the Code.

                                      B-4Stock Option Plan

  
 EXHIBIT 4.1 
  
 CIRRUS LOGIC, INC. 
  
 2002 STOCK OPTION PLAN

  
 1.  Purposes of the Plan.    The purposes of this Stock Option Plan are
to attract and retain the best available personnel, to provide additional incentive to Employees and Consultants and to promote the success of the Company’s business. 
  
 2.  Definitions.    As used herein, the following definitions shall apply: 
  
 (a)  “Administrator” means the Board or the Committee. 
  
 (b)  “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
promulgated under the Exchange Act. 
  
 (c)  “Applicable Laws” means the
legal requirements relating to the administration of stock incentive plans, if any, under applicable provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market
system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein. 
  
 (d)  “Award” means the grant of an Option under the Plan. 
  
 (e)  “Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto. 
  
 (f)  “Board” means the Board of Directors of the Company. 
  
 (g)  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (h)  “Committee” means the Compensation Committee of the Board. 
  
 (i)  “Common Stock” means the common stock of the Company. 
  
 (j)  “Company” means Cirrus Logic, Inc., a Delaware corporation. 
  
 (k)  “Consultant” means any person (other than an Employee or a Director) who is engaged by the
Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity. 
  
 (l)  “Continuous Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee or Consultant, is not interrupted or terminated. Continuous Service shall not be
considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee or Consultant, or (iii) any change in status as long as the individual
remains in the service of the Company or a Related Entity in any capacity of Employee or Consultant (except as 

 
 1 

 otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, military leave, or any
other authorized personal leave. 
  
 (m)  “Corporate Transaction” means
any of the following transactions: 
  
 (i)  a merger or consolidation in which the Company
is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated; 
  
 (ii)  the sale, transfer or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company’s subsidiary corporations); or

  
 (iii)  any reverse merger in which the Company is the surviving entity but in which
securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such
merger. 
  
 (n)  “Director” means a member of the Board. 

 
 (o)  “Disability” means a Grantee would qualify for benefit payments under the
long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides service does not
have a long-term disability plan in place, “Disability” means that a Grantee is permanently unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or
mental impairment. A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 
  

(p)  “Employee” means any person, other than an Officer or Director, who is an employee of the Company or any Related
Entity. 
  
 (q)  “Exchange Act” means the Securities Exchange Act of 1934,
as amended. 
  
 (r)  “Fair Market Value” means, that as of any date, the
value of Common Stock shall be the closing price for a Share for the market trading day on such date (or, if no closing price was reported on that date, on the last trading date on which a closing price was reported) on the stock exchange determined
by the Administrator to be the primary market for the Common Stock or the Nasdaq National Market, whichever is applicable, or if the Common Stock is not traded on any exchange or national market system, the average of the closing bid and ask prices
of a Share on the Nasdaq Small Cap Market on such date (or, if no closing prices were reported on that date, on the last trading date on which closing prices were reported), in each case, as reported in The Wall Street Journal or such other source
as the Administrator deems reliable. 
  
 (s)  “Grantee” means an Employee
or Consultant who receives an Award pursuant to an Award Agreement under the Plan. 

 
 2 

  
 (t)  “Immediate Family” means any
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the Grantee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of
assets, and any other entity in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interests. 
  
 (u)  “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  
 (v)  “Officer” means a person who is an officer of the Company or a Related Entity within the
meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (w)  “Option” means an option to purchase Shares pursuant to an Award Agreement granted under the Plan that is not intended to qualify as an Incentive Stock Option. 
  
 (x)  “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code. 
  
 (y)  “Plan” means this 2002
Stock Option Plan. 
  
 (z)  “Related Entity” means any Parent, Subsidiary
and any business, corporation, partnership, limited liability company or other entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 
  
 (aa)  “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor
thereto. 
  
 (bb)  “Share” means a share of the Common Stock.

  
 (cc)  “Subsidiary” means a “subsidiary corporation,” whether
now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3.  Stock Subject to the
Plan. 
  
 (a)  Subject to the provisions of Section 10, below, the maximum aggregate
number of Shares that may be issued pursuant to all Awards is 6,000,000 (six million) Shares, and commencing with the first business day of each fiscal year beginning with March 31, 2003, such maximum aggregate number of Shares shall be increased by
a number equal to four percent (4%) of the number of Shares outstanding as of the last business day of the immediately preceding fiscal year. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock.
 
  
 (b)  Any Shares covered by an Award (or portion of an Award) that is forfeited or
canceled, expires or is settled in cash, shall be deemed not to have been issued for purposes of 

 
 3 

 determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been
issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at their original purchase
price, such Shares shall become available for future grant under the Plan. 
  
 4.  Administration of the
Plan. 
  
 (a)  Plan Administrator. 
  
 (i)  Administration.    The Plan shall be administered by (A) the Board or (B) the
Committee. The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board determines from time to time. 
  
 (ii)  Administration Errors.    In the event an Award is granted in a manner inconsistent with the provisions of this
subsection (a), such Award shall be presumptively valid as of its grant date to the extent permitted by Applicable Laws. 
  
 (b)  Powers of the Administrator.    Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise
provided by the Board, the Administrator shall have the authority, in its discretion: 
  
 (i)  to select the Employees and Consultants to whom Awards may be granted from time to time hereunder; 
  
 (ii)  to determine whether and to what extent Awards are granted hereunder; 
  
 (iii)  to determine the number of Shares to be covered by each Award granted hereunder; 
  
 (iv)  to approve forms of Award Agreements for use under the Plan; 
  
 (v)  to determine the terms and conditions of any Award granted hereunder; 
  
 (vi)  to amend the terms of any outstanding Award granted under the Plan, provided that any amendment that would adversely affect the Grantee’s rights under an outstanding Award shall
not be made without the Grantee’s written consent; 
  
 (vii)  to construe and
interpret the terms of the Plan and Awards granted pursuant to the Plan, including without limitation, any notice of Award or Award Agreement, granted pursuant to the Plan; 
  
 (viii)  to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions;
provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the provisions of the Plan; and 

 
 4 

  
 (ix)  to take such other action, not inconsistent with
the terms of the Plan, as the Administrator deems appropriate. 
  
 5.  Eligibility.    An Employee or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees or Consultants who are
residing in foreign jurisdictions as the Administrator may determine from time to time. 
  
 6.  Terms
and Conditions of Awards. 
  
 (a)  Conditions of
Award.    Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of
first refusal, forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. The performance criteria established by the Administrator
may be based on any one of, or combination of, increase in Share price, earnings per Share, total shareholder return, return on equity, return on assets, return on investment, net operating income, cash flow, revenue, economic value added, personal
management objectives, or other measure of performance selected by the Administrator. Partial achievement of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the Award Agreement.

  
 (b)  Acquisitions and Other Transactions.    The
Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another
entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction. 
  
 (c)  Term of Award.    The term of each Award shall be the term stated in the Award Agreement provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof. 
  
 (d)  Transferability of
Awards.    Awards may not be transferred except as provided in the Award Agreement or in the manner and to the extent determined by the Administrator. 
  
 (e)  Time of Granting Awards.    The date of grant of an Award shall for all purposes be the date on which the
Administrator makes the determination to grant such Award, or such other date as is determined by the Administrator. Notice of the grant determination shall be given to each Employee or Consultant to whom an Award is so granted within a reasonable
time after the date of such grant. 
  
 7.  Award Exercise Price, Consideration and Taxes.

  
 (a)  Exercise Price.    The exercise price for an Option
shall be determined by the Administrator and stated in the Award Agreement, provided that the per Share exercise price of an Option shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 
 5 

  
 (b)  Consideration.    Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award, including the method of payment, shall be
determined by the Administrator. In addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 
  
 (i)  cash; 
  
 (ii)  check; 
  
 (iii)  consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 
  
 (iv)  surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require
(including withholding of Shares otherwise deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised
(but only to the extent that such exercise of the Award would not result in an accounting compensation charge with respect to the Shares used to pay the exercise price unless otherwise determined by the Administrator); or 
  
 (v)  any combination of the foregoing methods of payment. 
  

(c)  Taxes.    No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or
other person has made arrangements acceptable to the Administrator for the satisfaction of any foreign, federal, state, or local income and employment tax withholding obligations. Upon exercise of an Award, the Company shall withhold or collect from
Grantee an amount sufficient to satisfy such tax obligations. 
  
 8.  Exercise of Award.

  
 (a)  Procedure for Exercise; Rights as a Shareholder. 
  
 (i)  Any Award granted hereunder shall be exercisable at such times and under such conditions as determined by
the Administrator under the terms of the Plan and specified in the Award Agreement. 
  
 (ii)  An Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Award by the person entitled to exercise the Award and full payment for
the Shares with respect to which the Award is exercised. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no
right to vote or receive dividends or any other rights as a shareholder shall exist with respect to Shares subject to an Award, notwithstanding the exercise of the Award. The Company shall issue (or cause to be issued) such stock certificate
promptly upon exercise of the Award. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in the Award Agreement or Section 10, below.

 
 6 

  
 (b)  Exercise of Award Following Termination of
Continuous Service. 
  
 (i)  An Award may not be exercised after the termination date
of such Award set forth in the Award Agreement and may be exercised following the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement. 
  
 (ii)  Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s Continuous Service for a
specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 
  
 9.  Conditions Upon Issuance of Shares. 
  
 (a)  Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all
Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b)  As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws. 
  
 10.  Adjustments Upon Changes in Capitalization.    Subject to any required action by the shareholders of the Company, the number of
Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each
such outstanding Award, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Shares, or similar event affecting the Shares, (ii) any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, or (iii) as the
Administrator may determine in its discretion, any other transaction with respect to Common Stock to which Section 424(a) of the Code applies or any similar transaction; provided, however that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator and its determination shall be final, binding and conclusive. Except as the Administrator determines, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award.

  
 11.  Corporate Transactions.    In the event of a Corporate Transaction,
each outstanding Award shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation, or in the event that the successor corporation refuses to assume or substitute
for the Award, the Grantee shall have the right to 

 
 7 

 exercise the Award as to all of the stock subject to the Award, including Shares that would not otherwise be exercisable. If an Award is
exercisable in lieu of assumption or substitution in the event of a Corporate Transaction, the Administrator shall notify the Grantee that the Award shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the
Award shall terminate upon the expiration of such period. For the purposes of this paragraph, the Award shall be considered assumed if, following the Corporate Transaction, the Award confers the right to purchase or receive, for each Share subject
to the Award immediately prior to the Corporate Transaction, the consideration received in the Corporate Transaction by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Corporate Transaction was not solely common stock of the successor corporation or
its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share subject to the Award, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Corporate Transaction. 
  
 12.  Dissolution or Liquidation.    In the event of the dissolution or liquidation of the Company, the Administrator shall notify each Grantee as soon as
practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for a Grantee to have the right to exercise his or her Award until ten (10) days prior to such transaction as to all of the Shares
covered thereby, including Shares that would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Award shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

  
 13.  Effective Date and Term of Plan.    The Plan shall become effective
upon its adoption by the Board. It shall continue in effect indefinitely until it is terminated by the Board. Subject to Applicable Laws, Awards may be granted under the Plan upon it becoming effective. 
  
 14.  Amendment, Suspension or Termination of the Plan. 
  
 (a)  The Board may at any time amend, suspend or terminate the Plan. 
  
 (b)  The Administrator may amend the terms of any outstanding Award, prospectively or retroactively, but no such amendment shall (i) impair the
rights of any Grantee without the Grantee’s consent or (ii) modify the terms of any Award in a manner inconsistent with the provisions of the Plan. Subject to the above provisions, the Board shall have authority to amend the Plan to take into
account changes in Applicable Laws and accounting rules as well as other developments, and to grant Awards which qualify for beneficial treatment under such rules. 
  
 (c)  No Award may be granted during any suspension of the Plan or after termination of the Plan. 

 
 8 

  
 (d)  Any amendment, suspension or termination of the
Plan shall not affect Awards already granted, and such Awards shall remain in full force and effect as if the Plan had not been amended, suspended or terminated, unless mutually agreed otherwise between the Grantee and the Administrator, which
agreement must be in writing and signed by the Grantee and the Company. 
  
 15.  Reservation of
Shares. 
  
 (e)  The Company, during the term of the Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 (f)  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  
 16.  No Effect on Terms of Employment/Consulting Relationship.    The Plan shall not confer upon any Grantee any right with respect to
the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the Company’s right to terminate the Grantee’s Continuous Service at any time, with or without cause. 
  
 17.  No Effect on Retirement and Other Benefit Plans.    Except as specifically provided in a
retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any
benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended. 

 
 9

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