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                                                                   EXHIBIT 10.29

                               ENDWAVE CORPORATION

                           TRANSACTION INCENTIVE PLAN

SECTION 1. INTRODUCTION.

        The purpose of this Plan is to encourage Eligible Employees (a) to
assist the Company's Board of Directors and members of management in their
efforts to determine whether an appropriate Change in Control transaction for
the Company is feasible, (b) to assist the Company's Board of Directors and
members of management in completing any such Change in Control and (c) to remain
as valued employees of the Company through each Transaction occurring during the
term of this Plan as a result of those efforts or otherwise. This Plan
supersedes any other change of control benefit plan, policy or practice
maintained by the Company, other than the Company's Executive Officer Severance
and Retention Plan and the Company's Key Employee Severance and Retention Plan.

        This Plan was adopted by the Board of Directors of the Company. This
Plan is effective June 5, 2003. Some of the capitalized terms used in this Plan
document are defined in Section 6 of this Plan.

SECTION 2. ELIGIBILITY FOR BENEFITS.

        An Eligible Employee will be eligible to receive Incentive Benefits
under this Plan if the Eligible Employee is employed by the Company upon the
occurrence of any Transaction that occurs during the term of this Plan.
Notwithstanding the foregoing, in the event a Board Composition Change occurs,
an Eligible Employee will be eligible to receive Incentive Benefits under this
Plan even if he or she is not so employed upon the occurrence of a Transaction,
as long as he or she was employed by the Company immediately prior to such Board
Composition Change. In order to be eligible to receive Incentive Benefits under
this Plan, an Eligible Employee must execute promptly a general waiver and
release in the form attached as Exhibit A (for employees age 40 or older at the
time of execution) or Exhibit B (for employees under the age of 40 at the time
of execution) prior to the payment of any Incentive Benefits.

SECTION 3.  AMOUNT OF BENEFIT.

        (a)     GENERAL CALCULATION. An Eligible Employee's Incentive Benefit
with respect to any Transaction will be calculated according to the following
formula, subject to the provisions of Sections 3(b) and 3(c):

        IB = (N * (PP/SO)) - OP

        Where  IB     =      the Eligible Employee's Incentive Benefit with
respect to such Transaction;

               N      =      the number of "phantom shares" allocated to such
Eligible Employee, as set forth in a writing delivered to the Eligible Employee
by the Plan Administrator;

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               PP     =      the total value of the cash, securities and other
property distributable to the holders of common stock of the Company by reason
of such Transaction ("Transaction Consideration"), determined as set forth in
this Section 3(a);

               SO     =      the total number of shares of common stock
outstanding immediately prior to such Transaction;

               OP     =      only in the event of a Transaction that is a
Change in Control, the total value of the cash, securities or other property
distributable to the Eligible Employee by reason of such Transaction, calculated
as set forth in this Section 3(a), in respect of his or her vested options to
purchase common stock of the Company that were granted on June 5, 2003.

        For the purposes of this Section 3(a), if any Transaction Consideration
is in a form other than cash, its value will be deemed to be its fair market
value as determined in good faith by the Plan Administrator, except that any
securities shall be valued as follows: (1) if traded on a securities exchange or
through the Nasdaq National Market, the value shall be deemed to be the average
of the closing prices of the securities on such quotation system over the 30-day
period ending three days prior to the occurrence of the Transaction; (2) if
traded through the Nasdaq SmallCap Market or over-the-counter, the value shall
be deemed to be the average of the closing bid or sale prices (whichever is
applicable) over the 30-day period ending three days prior to the occurrence of
the Transaction; and (3) otherwise, the value shall be the fair market value
thereof, as determined in good faith by the Plan Administrator.

        (b)     INCOME TAX LIABILITIES AND WITHHOLDING. All income tax
liabilities with respect to payments under this Plan will be solely those of the
affected Eligible Employee and not the Company or any other party. The Company
will have no obligation to structure Incentive Benefit payments or otherwise
administer this Plan in a manner as to reduce or eliminate such liabilities.
Payments under this Plan will be subject to withholdings and deductions as may
be required by law.

        (c)     CERTAIN TAX PROVISIONS AFFECTING AMOUNT OF PAYMENTS. Anything in
this Plan to the contrary notwithstanding, in the event it is determined that
any payment by the Company to an Eligible Employee hereunder (a "Payment") would
cause the Eligible Employee to be liable for an excise tax pursuant to Section
4999 of the Code, then the aggregate present value of all amounts payable as
Incentive Benefits shall be reduced to the Reduced Amount. The "Reduced Amount"
will be an amount, expressed in present value, that maximizes the aggregate
present value of Incentive Benefits without causing any Payment to create an
excise tax liability under Section 4999 of the Code. For purposes of this
Section 3(c), present value will be determined in accordance with Section
280G(d)(4) of the Code.

SECTION 4. FORM AND TIME OF PAYMENT; RIGHT OF OFFSET.

        (a)     FORM OF PAYMENT. Incentive Benefits will be paid in cash, less
applicable withholdings and deductions and any offset permitted by Section 4(c).

        (b)     TIME OF PAYMENT. Incentive Benefits with respect to any
Transaction will be made at such time or times as match, as closely as
practicable, the timing of receipt by the holders of the Company's common stock
of the Transaction Consideration with respect to such

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Transaction. Notwithstanding the foregoing, (1) no Incentive Benefit payment
will be made under this Plan prior to the last day of any waiting period or
revocation period as required by applicable law in order for the general waiver
and release required by Section 2 of this Plan to be effective and (2) in the
event of a Transaction that is a Distribution, Incentive Benefits with respect
to such Distribution will not become payable unless a Change in Control occurs
within one year after such Distribution, in which case the Incentive Benefits
with respect to the Distribution will be made at the closing of the Change in
Control.

        (c)     RIGHT OF OFFSET. If an Eligible Employee is indebted to the
Company at the time any Incentive Benefits are payable, the Company reserves the
right to offset any Incentive Benefits under this Plan by the amount of such
indebtedness.

SECTION 5. RIGHT TO INTERPRET, AMEND AND TERMINATE PLAN; OTHER ARRANGEMENTS;
           BINDING NATURE OF PLAN.

        (a)     EXCLUSIVE DISCRETION. The Plan Administrator will have the
exclusive discretion and authority (1) to establish rules, forms and procedures
for the administration of this Plan, (2) to construe and interpret this Plan and
(3) to decide any and all questions of fact, interpretation, definition,
computation or administration arising in connection with the operation of this
Plan including, but not limited to, the eligibility to participate in this Plan
and the amount of benefits paid under this Plan. Such rules, interpretations,
computations and other actions of the Plan Administrator will be binding and
conclusive on all persons.

        (b)     TERM OF PLAN; AMENDMENT OR TERMINATION; BINDING NATURE OF PLAN.

                (1)     Subject to the provisions of Section 5(b)(2), this Plan
will be effective until the first Change in Control has occurred; provided,
however, that the Company's obligations to provide Incentive Benefits hereunder
shall survive until all such Incentive Benefits have been paid.

                (2)     The Plan Administrator may, in its sole discretion,
amend or discontinue this Plan or the benefits provided hereunder at any time
prior to the occurrence of a Transaction or a Board Composition Change. After
the occurrence of a Transaction or a Board Composition Change, (A) this Plan may
not be amended without the written consent of each Eligible Employee affected by
such amendment, and (B) this Plan will constitute a contractual right to the
benefits to which such Eligible Employee is entitled hereunder, enforceable by
the Eligible Employee against the Company.

                (3)     Any action amending or terminating this Plan will be in
writing and executed by an officer of the Company duly authorized by the Plan
Administrator and any Eligible Employees whose consent is required pursuant to
Section 5(b)(2).

        (c)     OTHER TRANSACTION INCENTIVE ARRANGEMENTS. The Company reserves
the right to make other arrangements regarding Transaction or Change in Control
incentive benefits in special circumstances.

        (d)     BINDING EFFECT ON SUCCESSOR TO COMPANY. This Plan will be
binding upon any successor to or assignee of the Company or its business or
assets, whether direct or indirect, by

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Change in Control or otherwise. Any such successor or assignee will be required
to perform the Company's obligations under this Plan. In such event, the term
"Company," as used in this Plan, will mean the Company as hereinafter defined
and any successor or assignee as described above which by reason hereof becomes
bound by the terms and provisions of this Plan.

SECTION 6. DEFINITIONS.

        Capitalized terms used in this Plan have the following meanings:

        (a)     BOARD COMPOSITION CHANGE means the occurrence of a change in the
Board of Directors of the Company in which the individuals who constituted the
Board of Directors of the Company at the beginning of the two-year period
immediately preceding such change (together with any other director whose
election by the Board of Directors of the Company or whose nomination for
election by the stockholders of the Company was approved by a vote of a majority
of the directors then in office either who were directors at the beginning of
such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the directors then in
office.

        (b)     CHANGE IN CONTROL means any of the following:

                (1)     a merger or consolidation of the Company after which the
Company's stockholders immediately prior to the merger or consolidation do not
have beneficial ownership of at least 50% of the outstanding voting securities
of the new or continuing entity or its parent entity (taking into account only
such stockholders' ownership of the Company prior to such merger or
consolidation and not any other ownership of the new or continuing entity or its
parent entity);

                (2)     a transaction or series of related transactions to which
the Company is a party and in which a majority of the outstanding shares of the
Company's capital stock are sold, exchanged or otherwise disposed of, after
which the Company's stockholders immediately prior to the first of such
transactions do not have beneficial ownership of at least 50% of the outstanding
voting securities of the Company or of the entity for which shares of the
Company's capital stock were exchanged (in either such case, taking into account
only such stockholders' ownership of the Company prior to the time such
transaction or transactions commenced and not any other ownership of any entity
for which shares of the Company's capital stock were exchanged); and

                (3)     a transaction or series of related transactions in which
the Company sells, licenses or otherwise transfers for value all or
substantially all of its assets to a single purchaser or group of associated
purchasers.

        (c)     CODE means the Internal Revenue Code of 1986, as may be amended
from time to time.

        (d)     COMPANY means Endwave Corporation, a Delaware corporation, and
any successor as provided in Section 5(d) of this Plan.

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        (e)     ELIGIBLE EMPLOYEE means each individual notified in writing by
the Plan Administrator that he or she is an Eligible Employee under this Plan.

        (f)     INCENTIVE BENEFITS means the benefits calculated pursuant to
Section 3 of this Plan.

        (g)     PAYMENT has the meaning given to such term in Section 3(c) of
this Plan.

        (h)     PLAN means this Endwave Corporation Transaction Incentive Plan.

        (i)     PLAN ADMINISTRATOR means the Compensation Committee of the Board
of Directors of the Company.

        (j)     REDUCED AMOUNT has the meaning given to such term in Section
3(c) of this Plan.

        (k)     TRANSACTION means each occurrence of one or more of the
following events:

                (1)     the declaration and payment of a dividend or other
distribution in respect of the Company's capital stock (other than the
repurchase of unvested shares from employees upon their termination of
employment with the Company and any stock repurchase program approved by the
Board of Directors prior to a Board Composition Change that is designed to
conform to the safe harbor set forth in Rule 10b-18 under the Securities
Exchange Act of 1934, as amended) (a "Distribution"); or

                (2)     a Change in Control.

        (l)     TRANSACTION CONSIDERATION has the meaning given to such term in
Section 3(a) of this Plan.

SECTION 7. NO IMPLIED EMPLOYMENT CONTRACT.

        This Plan does not give any employee or other person any right to be
retained in the employ of the Company. The Company's right to discharge any
employee or other person at any time and for any reason is hereby reserved.

SECTION 8. EXECUTION.

        To record the adoption of this Plan as set forth herein, effective as of
the date first set forth above, the Company has caused its duly authorized
officer to execute the same as of the date first set forth above.

                                        ENDWAVE CORPORATION

                                        By:   /s/Edward A. Keible, Jr.
                                            -----------------------------
                                              Edward A. Keible, Jr.
                                              Chief Executive Officer

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                                                [For Employees Age 40 and Older]

                                    EXHIBIT A

                                RELEASE AGREEMENT

        I UNDERSTAND AND AGREE COMPLETELY TO THE TERMS SET FORTH IN THE
_________ PLAN (THE "PLAN").

        I understand that this Release Agreement, together with the Plan,
constitutes the complete, final and exclusive embodiment of the entire agreement
between Endwave Corporation (the "Company") and me with regard to the subject
matter hereof. I am not relying on any promise or representation by the Company
that is not expressly stated therein. Certain capitalized terms used in this
Release Agreement are defined in the Plan.

        I hereby acknowledge my continuing obligations not to use or disclose
confidential or proprietary information of the Company without prior written
authorization from a duly authorized representative of the Company.

        Except as otherwise set forth in this Release Agreement, in
consideration of the benefits I will receive under the Plan, I hereby generally
and completely release the Company and its parents, subsidiaries, successors,
predecessors and affiliates, and its and their partners, members, directors,
officers, employees, stockholders, shareholders, agents, attorneys,
predecessors, insurers, affiliates and assigns, from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in
any way related to events, acts, conduct, or omissions occurring at any time
prior to and including the date I sign this Release Agreement. This general
release includes, but is not limited to: (a) all claims arising out of or in any
way related to my employment with the Company or the termination of that
employment; (b) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (c) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (d) all tort
claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (e) all federal, state, and local
statutory claims, including claims for discrimination, harassment, retaliation,
attorneys' fees, or other claims arising under the federal Civil Rights Act of
1964 (as amended), the federal Americans with Disabilities Act of 1990 (as
amended), the federal Age Discrimination in Employment Act (as amended)
("ADEA"), the federal Employee Retirement Income Security Act of 1974 (as
amended), and the California Fair Employment and Housing Act (as amended).
Provided, however, that nothing in this paragraph shall be construed in any way
to release the Company from any obligation it may have to indemnify me pursuant
to agreement or applicable law.

        I acknowledge that I am knowingly and voluntarily waiving and releasing
any rights I may have under the ADEA, and that the consideration given under the
Plan for the waiver and release in the preceding paragraph hereof is in addition
to anything of value to which I was

                                       1
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already entitled. I further acknowledge that I have been advised by this
writing, as required by the ADEA, that: (a) my waiver and release do not apply
to any rights or claims that may arise after the date I sign this Release
Agreement; (b) I should consult with an attorney prior to signing this Release
Agreement (although I may choose voluntarily not to do so); (c) I have 21 [OR
45, IF MORE THAN ONE EMPLOYEE OVER 40 IS TERMINATED] days to consider this
Release Agreement (although I may choose voluntarily to sign this Release
Agreement earlier); (d) I have seven days following the date I sign this Release
Agreement to revoke the Release Agreement by providing written notice to an
office of the Company; and (e) this Release Agreement shall not be effective
until the date upon which the revocation period has expired, which shall be the
eighth day after I sign this Release Agreement.

        I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any
jurisdiction of similar effect with respect to my release of any claims
hereunder.

                                          EMPLOYEE NAME (PRINT):

                                          --------------------------------------

                                          Signature:
                                                    ----------------------------

                                          Date:
                                               ---------------------------------

                                       2
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                                                    [For Employees Under Age 40]

                                    EXHIBIT B

                                RELEASE AGREEMENT

        I UNDERSTAND AND AGREE COMPLETELY TO THE TERMS SET FORTH IN THE
_________ PLAN (THE "PLAN").

        I understand that this Release Agreement, together with the Plan,
constitutes the complete, final and exclusive embodiment of the entire agreement
between Endwave Corporation (the "Company") and me with regard to the subject
matter hereof. I am not relying on any promise or representation by the Company
that is not expressly stated therein. Certain capitalized terms used in this
Release Agreement are defined in the Plan.

        I hereby acknowledge my continuing obligations not to use or disclose
confidential or proprietary information of the Company without prior written
authorization from a duly authorized representative of the Company.

        Except as otherwise set forth in this Release Agreement, in
consideration of the benefits I will receive under the Plan, I hereby generally
and completely release the Company and its parents, subsidiaries, successors,
predecessors and affiliates, and its and their partners, members, directors,
officers, employees, stockholders, shareholders, agents, attorneys,
predecessors, insurers, affiliates and assigns, from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in
any way related to events, acts, conduct, or omissions occurring at any time
prior to and including the date I sign this Release Agreement. This general
release includes, but is not limited to: (a) all claims arising out of or in any
way related to my employment with the Company or the termination of that
employment; (b) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance
pay, fringe benefits, stock, stock options, or any other ownership interests in
the Company; (c) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing; (d) all tort
claims, including claims for fraud, defamation, emotional distress, and
discharge in violation of public policy; and (e) all federal, state, and local
statutory claims, including claims for discrimination, harassment, retaliation,
attorneys' fees, or other claims arising under the federal Civil Rights Act of
1964 (as amended), the federal Americans with Disabilities Act of 1990 (as
amended), the federal Age Discrimination in Employment Act (as amended), the
federal Employee Retirement Income Security Act of 1974 (as amended), and the
California Fair Employment and Housing Act (as amended). Provided, however, that
nothing in this paragraph shall be construed in any way to release the Company
from any obligation it may have to indemnify me pursuant to agreement or
applicable law.

        I acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
AFFECTED HIS SETTLEMENT WITH THE DEBTOR." I hereby expressly

                                       1.
<PAGE>

waive and relinquish all rights and benefits under that section and any law of
any jurisdiction of similar effect with respect to my release of any claims
hereunder.

        I acknowledge that the Release Agreement will become effective only if I
sign and return it to the Company so that it is received not later than 15 days
following the date of my employment termination.

                                          EMPLOYEE NAME (PRINT):

                                          --------------------------------------

                                          Signature:
                                                    ----------------------------

                                          Date:
                                               ---------------------------------

                                       2.<PAGE>

                                                                    EXHIBIT 10.5

                              GENITOPE CORPORATION

                 2003 NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN

                             ADOPTED AUGUST 7, 2003
                   APPROVED BY STOCKHOLDERS AUGUST 29, 2003

1.       PURPOSES.

         (a)      ELIGIBLE OPTION RECIPIENTS. The persons eligible to receive
Options are the Non-Employee Directors of the Company.

         (b)      AVAILABLE OPTIONS. The purpose of the Plan is to provide a
means by which Non-Employee Directors may be given an opportunity to benefit
from increases in value of the Common Stock through the granting of Nonstatutory
Stock Options.

         (c)      GENERAL PURPOSE. The Company, by means of the Plan, seeks to
retain the services of its Non-Employee Directors, to secure and retain the
services of new Non-Employee Directors and to provide incentives for such
persons to exert maximum efforts for the success of the Company and its
Affiliates.

2.       DEFINITIONS.

         (a)      "ACCOUNTANT" means the independent public accountants of the
Company.

         (b)      "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.

         (c)      "ANNUAL GRANT" means an Option granted annually to all
Non-Employee Directors who meet the specified criteria pursuant to Section 6(b).

         (d)      "ANNUAL MEETING" means the annual meeting of the stockholders
of the Company.

         (e)      "BOARD" means the Board of Directors of the Company.

         (f)      "CAPITALIZATION ADJUSTMENT" has the meaning ascribed to that
term in Section 11(a).

         (g)      "CHANGE IN CONTROL" means the occurrence, in a single
transaction or in a series of related transactions, of any one or more of the
following events:

                  (i)      any Exchange Act Person becomes the Owner, directly
or indirectly, of securities of the Company representing more than fifty percent
(50%) of the combined voting power of the Company's then outstanding securities
other than by virtue of a merger, consolidation or similar transaction.
Notwithstanding the foregoing, a Change in Control shall

                                       1.

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not be deemed to occur solely because the level of Ownership held by any
Exchange Act Person (the "Subject Person") exceeds the designated percentage
threshold of the outstanding voting securities as a result of a repurchase or
other acquisition of voting securities by the Company reducing the number of
shares outstanding, provided that if a Change in Control would occur (but for
the operation of this sentence) as a result of the acquisition of voting
securities by the Company, and after such share acquisition, the Subject Person
becomes the Owner of any additional voting securities that, assuming the
repurchase or other acquisition had not occurred, increases the percentage of
the then outstanding voting securities Owned by the Subject Person over the
designated percentage threshold, then a Change in Control shall be deemed to
occur;

                  (ii)     there is consummated a merger, consolidation or
similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar
transaction, the stockholders of the Company immediately prior thereto do not
Own, directly or indirectly, outstanding voting securities representing more
than fifty percent (50%) of the combined outstanding voting power of the
surviving Entity in such merger, consolidation or similar transaction or more
than fifty percent (50%) of the combined outstanding voting power of the parent
of the surviving Entity in such merger, consolidation or similar transaction;

                  (iii)    the stockholders of the Company approve or the Board
approves a plan of complete dissolution or liquidation of the Company, or a
complete dissolution or liquidation of the Company shall otherwise occur;

                  (iv)     there is consummated a sale, lease, license or other
disposition of all or substantially all of the consolidated assets of the
Company and its Subsidiaries, other than a sale, lease, license or other
disposition of all or substantially all of the consolidated assets of the
Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the
combined voting power of the voting securities of which are Owned by
stockholders of the Company in substantially the same proportions as their
Ownership of the Company immediately prior to such sale, lease, license or other
disposition; or

                  (v)      individuals who, on the date this Plan is adopted by
the Board, are members of the Board (the "Incumbent Board") cease for any reason
to constitute at least a majority of the members of the Board; (provided,
however, that if the appointment or election (or nomination for election) of any
new Board member was approved or recommended by a majority vote of the members
of the Incumbent Board then still in office, such new member shall, for purposes
of this Plan, be considered as a member of the Incumbent Board).

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

         (i)      "COMMITTEE GRANT" means an Option granted annually to all
Non-Employee Directors who meet the specified criteria pursuant to Section 6(c).

         (j)      "COMMON STOCK" means the common stock of the Company.

         (k)      "COMPANY" means Genitope Corporation, a Delaware corporation.

                                       2.

<PAGE>

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

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

         (n)      "CORPORATE TRANSACTION" means the occurrence, in a single
transaction or in a series of related transactions, of any one or more of the
following events:

                  (i)      a sale or other disposition of all or substantially
all, as determined by the Board in its discretion, of the consolidated assets of
the Company and its Subsidiaries;

                  (ii)     a sale or other disposition of at least ninety
percent (90%) of the outstanding securities of the Company;

                  (iii)    a merger, consolidation or similar transaction
following which the Company is not the surviving corporation; or

                  (iv)     a merger, consolidation or similar transaction
following which the Company is the surviving corporation but the shares of
Common Stock outstanding immediately preceding the merger, consolidation or
similar transaction are converted or exchanged by virtue of the merger,
consolidation or similar transaction into other property, whether in the form of
securities, cash or otherwise.

         (o)      "DIRECTOR" means a member of the Board of Directors of the
Company.

         (p)      "DISABILITY" means the inability of a person, in the opinion
of a qualified physician acceptable to the Company, to perform the major duties
of that person's position with the Company or an Affiliate of the Company
because of the sickness or injury of the person.

         (q)      "EMPLOYEE" means any person employed by the Company or an
Affiliate. Service as a Director or payment of a director's fee by the Company
or an Affiliate shall not be sufficient to constitute "employment" by the
Company or an Affiliate.

                                       3.

<PAGE>

         (r)      "ENTITY" means a corporation, partnership or other entity.

         (s)      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (t)      "EXCHANGE ACT PERSON" means any natural person, Entity or
"group" (within the meaning of Section 13(d) or 14(d) of the Exchange Act),
except that "Exchange Act Person" shall not include (A) the Company or any
Subsidiary of the Company, (B) any employee benefit plan of the Company or any
Subsidiary of the Company or any trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any Subsidiary of the Company,
(C) an underwriter temporarily holding securities pursuant to an offering of
such securities, or (D) an Entity Owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
Ownership of stock of the Company.

         (u)      "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.

         (v)      "INITIAL GRANT" means an Option granted to a Non-Employee
Director who meets the specified criteria pursuant to Section 6(a).

         (w)      "IPO DATE" means the effective date of the initial public
offering of the Common Stock.

         (x)      "NON-EMPLOYEE DIRECTOR" means a Director who is not an
Employee.

         (y)      "NONSTATUTORY STOCK OPTION" means an Option not intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code and the regulations promulgated thereunder.

         (z)      "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.

         (aa)     "OPTION" means a Nonstatutory Stock Option granted pursuant to
the Plan.

         (bb)     "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.

                                       4.

<PAGE>

         (cc)     "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.

         (dd)     "OWN," "OWNED," "OWNER," "OWNERSHIP" A person or Entity shall
be deemed to "Own," to have "Owned," to be the "Owner" of, or to have acquired
"Ownership" of securities if such person or Entity, directly or indirectly,
through any contract, arrangement, understanding, relationship or otherwise, has
or shares voting power, which includes the power to vote or to direct the
voting, with respect to such securities.

         (ee)     "PLAN" means this Genitope Corporation 2003 Non-Employee
Directors' Stock Option Plan.

         (ff)     "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.

         (gg)     "SECURITIES ACT" means the Securities Act of 1933, as amended.

         (hh)     "SUBSIDIARY" means, with respect to the Company, (i) any
corporation of which more than fifty percent (50%) of the outstanding capital
stock having ordinary voting power to elect a majority of the board of directors
of such corporation (irrespective of whether, at the time, stock of any other
class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time, directly or
indirectly, Owned by the Company, and (ii) any partnership in which the Company
has a direct or indirect interest (whether in the form of voting or
participation in profits or capital contribution) of more than fifty percent
(50%).

3.       ADMINISTRATION.

         (a)      ADMINISTRATION BY BOARD. The Board shall administer the Plan.
The Board may not delegate administration of the Plan to a committee.

         (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 the provisions of each Option to the
extent not specified in the Plan.

                  (ii)     To construe and interpret the Plan and Options
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Option Agreement, in a
manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

                  (iii)    To amend the Plan or an Option as provided in Section
12.

                  (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.

                                       5.

<PAGE>

         (c)      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.

4.       SHARES SUBJECT TO THE PLAN.

         (a)      SHARE RESERVE. Subject to the provisions of Section 11
relating to adjustments upon changes in the Common Stock, the Common Stock that
may be issued pursuant to Options shall not exceed in the aggregate one hundred
thirty-three thousand three hundred thirty-three (133,333) shares of Common
Stock, plus an annual increase for ten years beginning on January 1, 2004 and
ending on (and including) January 1, 2013 equal to the number of shares subject
to Options granted during the prior calendar year. Notwithstanding the
foregoing, the Board may act, prior to the first day of any fiscal year of the
Company, to increase the share reserve by such number of shares of Common Stock
as the Board shall determine, which number shall be less than the amount
described in the foregoing sentence.

         (b)      REVERSION OF SHARES TO THE SHARE RESERVE. If any Option shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under
such Option 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.

5.       ELIGIBILITY.

         The Options, as set forth in Section 6, automatically shall be granted
under the Plan to all Non-Employee Directors who meet the criteria specified in
Section 6.

6.       NON-DISCRETIONARY GRANTS.

         (a)      INITIAL GRANTS. Without any further action of the Board, each
person who is serving as a Non-Employee Director on the IPO Date automatically
shall, on the IPO Date, be granted an Initial Grant to purchase twenty-five
thousand (25,000) shares of Common Stock on the terms and conditions set forth
herein. Additionally, without any further action of the Board, each person who
after the IPO Date is elected or appointed for the first time to be a
Non-Employee Director automatically shall, upon the date of his or her initial
election or appointment to be a Non-Employee Director, be granted an Initial
Grant to purchase twenty-five thousand (25,000) shares of Common Stock on the
terms and conditions set forth herein.

         (b)      ANNUAL GRANTS. Without any further action of the Board, on the
day following each Annual Meeting, commencing with the Annual Meeting in 2004,
each person who is then a Non-Employee Director automatically shall be granted
an Annual Grant to purchase ten thousand (10,000) shares of Common Stock on the
terms and conditions set forth herein; provided, however, that if the person has
not been serving as a Non-Employee Director for the entire period since the
preceding Annual Meeting, then the number of shares subject to such

                                       6.

<PAGE>

Annual Grant shall be reduced pro rata for each full quarter prior to the date
of grant during which such person did not serve as a Non- Employee Director.

         (c)      COMMITTEE GRANTS. Without any further action of the Board, on
the day following each Annual Meeting, commencing with the Annual Meeting in
2004, each Non-Employee Director automatically shall be granted a Committee
Grant to purchase one thousand (1,000) shares of Common Stock for each committee
of the Board of which such Non-Employee Director is a member as of such date on
the terms and conditions set forth herein.

7.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as required by the Plan. Each Option shall contain such additional
terms and conditions, not inconsistent with the Plan, as the Board shall deem
appropriate. Each Option shall include (through incorporation of provisions
hereof by reference in the Option or otherwise) the substance of each of the
following provisions:

         (a)      TERM. No Option shall be exercisable after the expiration of
ten (10) years from the date it was granted.

         (b)      EXERCISE PRICE. The exercise price of each Option shall be one
hundred percent (100%) of the Fair Market Value of the stock subject to the
Option on the date the Option is granted.

         (c)      CONSIDERATION. The purchase price of stock acquired pursuant
to an Option may be paid, to the extent permitted by applicable law, in any
combination of (i) cash or check, (ii) delivery to the Company of other Common
Stock or (iii) pursuant to a program developed under Regulation T as promulgated
by the Federal Reserve Board that, prior to the issuance of Common Stock,
results in either the receipt of cash (or check) by the Company or the receipt
of irrevocable instructions to pay the aggregate exercise price to the Company
from the sales proceeds. 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 (6)
months (or such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes).

         (d)      TRANSFERABILITY. An Option is transferable by will or by the
laws of descent and distribution. An Option also may be transferable upon
written consent of the Company if, at the time of transfer, a Form S-8
registration statement under the Securities Act is available for the exercise of
the Option and the subsequent resale of the underlying securities. In addition,
an Optionholder may, by delivering written notice to the Company, in a form
provided by or otherwise satisfactory to the Company, designate a third party
who, in the event of the death of the Optionholder, shall thereafter be entitled
to exercise the Option.

         (e)      VESTING. Options shall vest as follows:

                                       7.

<PAGE>

                  (i)      Initial Grants: 1/36th of the shares shall vest
monthly from the date of grant for three (3) years.

                  (ii)     Annual Grants: 1/36th of the shares shall vest
monthly from the date of grant for three (3) years.

                  (iii)    Committee Grants: 1/12th of the shares shall vest
monthly from the date of grant for one (1) year so long as the Non-Employee
Director remains a member of the Committee for which he or she was granted such
Committee Grant.

         (f)      EARLY EXERCISE. The Option 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 shared 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. The Company will not
exercise its repurchase option until at least six (6) months (or such longer or
shorter period of time required to avoid a charge to earnings for financial
accounting purposes) have elapsed following exercise of the Option unless the
Board otherwise specifically provides in the Option.

         (g)      TERMINATION OF CONTINUOUS SERVICE. In the event an
Optionholder's Continuous Service 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 it as of the date of
termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service, or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement,
the Option shall terminate.

         (h)      EXTENSION OF TERMINATION DATE. 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 would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option as set forth in the
Option Agreement or (ii) the expiration of a period of three (3) 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)      DISABILITY OF OPTIONHOLDER. In the event an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise it as of the date of termination), but only within such
period of time ending on the earlier of (i) the date twelve (12) months
following such termination or (ii) the expiration of the term of the Option as
set forth in the Option Agreement. If, after termination, the Optionholder does
not exercise his or her Option within the time specified herein, the Option
shall terminate.

                                       8.

<PAGE>

         (j)      DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or (ii)
the Optionholder dies within the three-month period after the termination of the
Optionholder's Continuous Service for a reason other than death, then the Option
may be exercised (to the extent the Optionholder was entitled to exercise the
Option as of the date of death) by the Optionholder's estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the Option upon the Optionholder's death, but only
within the period ending on the earlier of (1) the date eighteen (18) months
following the date of death or (2) the expiration of the term of such Option as
set forth in the Option Agreement. If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate.

8.       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 Options and to issue and sell shares of Common Stock upon exercise of the
Options; provided, however, that this undertaking shall not require the Company
to register under the Securities Act the Plan, any Option or any stock issued or
issuable pursuant to any such Option. 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 stock under the Plan, the Company shall be relieved from any liability for
failure to issue and sell stock upon exercise of such Options unless and until
such authority is obtained.

9.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of stock pursuant to Options shall constitute
general funds of the Company.

10.      MISCELLANEOUS.

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

         (b)      NO SERVICE RIGHTS. Nothing in the Plan or any instrument
executed or Option granted pursuant thereto shall confer upon any Optionholder
any right to continue to serve the Company as a Non-Employee Director 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.

         (c)      INVESTMENT ASSURANCES. The Company may require an
Optionholder, as a condition of exercising or acquiring stock under any Option,
(i) to give written assurances satisfactory to the Company as to the
Optionholder's knowledge and experience in financial and

                                       9.

<PAGE>

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 Option; and (ii) to give written assurances satisfactory to the Company
stating that the Optionholder is acquiring the stock subject to the Option for
the Optionholder's own account and not with any present intention of selling or
otherwise distributing the stock. The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if (1) the issuance of
the shares upon the exercise or acquisition of stock under the Option 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 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 stock.

         (d)      WITHHOLDING OBLIGATIONS. The Optionholder may satisfy any
federal, state or local tax withholding obligation relating to the exercise or
acquisition of stock under an Option by any of the following means (in addition
to the Company's right to withhold from any compensation paid to the
Optionholder by the Company) or by a combination of such means: (i) tendering a
cash payment; (ii) authorizing the Company to withhold shares from the shares of
the Common Stock otherwise issuable to the Optionholder as a result of the
exercise or acquisition of stock under the Option; 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 the Common Stock.

11.      ADJUSTMENTS UPON CHANGES IN COMMON STOCK.

         (a)      CAPITALIZATION ADJUSTMENTS. If any change is made in, or other
events occur with respect to, the stock subject to the Plan, or subject to any
Option, 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 (each a "Capitalization Adjustment")), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject both to the
Plan pursuant to Section 4 and to the nondiscretionary Options specified in
Section 6, and the outstanding Options will be appropriately adjusted in the
class(es) and number of securities and price per share of stock subject to such
outstanding Options. 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 Options shall terminate
immediately prior to the completion of such dissolution or liquidation.

                                      10.

<PAGE>

         (c)      CORPORATE TRANSACTION. In the event of a Corporate
Transaction, any surviving corporation or acquiring corporation may assume any
or all Options outstanding under the Plan or may substitute similar stock
options for Options outstanding under the Plan (it being understood that similar
stock options include, but are not limited to, options to acquire the same
consideration paid to the stockholders or the Company, as the case may be,
pursuant to the Corporate Transaction). In the event that any surviving
corporation or acquiring corporation does not assume any or all such outstanding
Options or substitute similar stock options for such outstanding Options, then
with respect to Options that have been neither assumed nor substituted and that
are held by Optionholders whose Continuous Service has not terminated prior to
the effective time of the Corporate Transaction, the vesting of such Options
(and, if applicable, the time at which such Options may be exercised) shall
(contingent upon the effectiveness of the Corporate Transaction) be accelerated
in full to a date prior to the effective time of such Corporate Transaction as
the Board shall determine (or, if the Board shall not determine such a date, to
the date that is five (5) days prior to the effective time of the Corporate
Transaction), and the Options shall terminate if not exercised (if applicable)
at or prior to such effective time. With respect to any other Options
outstanding under the Plan that have been neither assumed nor substituted, the
vesting of such Options (and, if applicable, the time at which such Options may
be exercised) shall not be accelerated unless otherwise provided in Section
11(d) or in a written agreement between the Company or any Affiliate and the
holder of such Options, and such Options shall terminate if not exercised (if
applicable) prior to the effective time of the Corporate Transaction.

         (d)      CHANGE IN CONTROL. If a Change in Control occurs and an
Optionholder's Continuous Service with the Company has not terminated
immediately prior to the effective time of the Change in Control, then,
immediately prior to the effective time of such Change in Control (and
contingent upon the effectiveness of the Change in Control), the vesting and
exercisability of an Optionholder's Options shall be accelerated in full. In the
event that an Optionholder is required to resign his or her position as a
Non-Employee Director as a condition of a Change in Control, the outstanding
Options of such Optionholder shall become fully vested and exercisable
immediately prior to the effectiveness of such resignation (and contingent upon
the effectiveness of the Change in Control).

         (e)      PARACHUTE PAYMENTS. If the acceleration of the vesting and
exercisability of Options provided for in Section 11(c), together with payments
and other benefits of an Optionholder, (collectively, the "Payment") (i)
constitute a "parachute payment" within the meaning of Section 280G of the Code,
or any comparable successor provisions, and (ii) but for this Section 11(e)
would be subject to the excise tax imposed by Section 4999 of the Code, or any
comparable successor provisions (the "Excise Tax"), then such Payment shall be
either (1) provided to such Optionholder in full, or (2) provided to such
Optionholder as to such lesser extent that would result in no portion of such
Payment being subject to the Excise Tax, whichever of the foregoing amounts,
when taking into account applicable federal, state, local and foreign income and
employment taxes, the Excise Tax, and any other applicable taxes, results in the
receipt by such Optionholder, on an after-tax basis, of the greatest amount of
the Payment, notwithstanding that all or some portion of the Payment may be
subject to the Excise Tax.

                  Unless the Company and such Optionholder otherwise agree in
writing, any determination required under this Section 11(e) shall be made in
writing in good faith by the

                                      11.

<PAGE>

Accountant. If a reduction in the Payment is to be made as provided above,
reductions shall occur in the following order unless the Optionholder elects in
writing a different order (provided, however, that such election shall be
subject to Company approval if made on or after the date that triggers the
Payment or a portion thereof): reduction of cash payments; cancellation of
accelerated vesting of Options; reduction of employee benefits. If acceleration
of vesting of Options is to be reduced, such acceleration of vesting shall be
cancelled in the reverse order of date of grant of Options (i.e., earliest
granted Option cancelled last) unless the Optionholder elects in writing a
different order for cancellation.

                  For purposes of making the calculations required by this
Section 11(e), the Accountant may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of the Code and other applicable
legal authority. The Company and the Optionholder shall furnish to the
Accountant such information and documents as the Accountant may reasonably
request in order to make such a determination. The Company shall bear all costs
the Accountant may reasonably incur in connection with any calculations
contemplated by this Section 11(e).

                  If, notwithstanding any reduction described above, the
Internal Revenue Service (the "IRS") determines that the Optionholder is liable
for the Excise Tax as a result of the Payment, then the Optionholder shall be
obligated to pay back to the Company, within thirty (30) days after a final IRS
determination or, in the event that the Optionholder challenges the final IRS
determination, a final judicial determination, a portion of the Payment equal to
the "Repayment Amount." The Repayment Amount with respect to the Payment shall
be the smallest such amount, if any, as shall be required to be paid to the
Company so that the Optionholder's net after-tax proceeds with respect to the
Payment (after taking into account the payment of the Excise Tax and all other
applicable taxes imposed on the Payment) shall be maximized. The Repayment
Amount with respect to the Payment shall be zero if a Repayment Amount of more
than zero would not result in the Optionholder's net after-tax proceeds with
respect to the Payment being maximized. If the Excise Tax is not eliminated
pursuant to this paragraph, the Optionholder shall pay the Excise Tax.

                  Notwithstanding any other provision of this Section 11(e), if
(i) there is a reduction in the Payment as described above, (ii) the IRS later
determines that the Optionholder is liable for the Excise Tax, the payment of
which would result in the maximization of the Optionholder's net after-tax
proceeds of the Payment (calculated as if the Payment had not previously been
reduced), and (iii) the Optionholder pays the Excise Tax, then the Company shall
pay or otherwise provide to the Optionholder that portion of the Payment that
was reduced pursuant to this Section 11(e) contemporaneously or as soon as
administratively possible after the Optionholder pays the Excise Tax so that the
Optionholder's net after-tax proceeds with respect to the Payment are maximized.

                  If the Optionholder either (i) brings any action to enforce
rights pursuant to this Section 11(e), or (ii) defends any legal challenge to
his or her rights under this Section 11(e), the Optionholder shall be entitled
to recover attorneys' fees and costs incurred in connection with such action,
regardless of the outcome of such action; provided, however, that if such action
is commenced by the Optionholder, the court finds that the action was brought in
good faith.

                                      12.

<PAGE>

12.      AMENDMENT OF THE PLAN AND OPTIONS.

         (a)      AMENDMENT OF PLAN. The Board, at any time and from time to
time, may amend the Plan. However, except as provided in Section 11 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 applicable laws.

         (b)      STOCKHOLDER APPROVAL. The Board, in its sole discretion, may
submit any other amendment to the Plan for stockholder approval.

         (c)      NO IMPAIRMENT OF RIGHTS. Rights under any Option 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 Optionholder and (ii) the
Optionholder consents in writing.

         (d)      AMENDMENT OF OPTIONS. The Board, at any time, and from time to
time, may amend the terms of any one or more Options; provided, however, that
the rights under any Option shall not be impaired by any such amendment unless
(i) the Company requests the consent of the Optionholder and (ii) the
Optionholder consents in writing.

13.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a)      PLAN TERM. The Board may suspend or terminate the Plan at any
time. No Options 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 Option granted while the Plan
is in effect except with the written consent of the Optionholder.

14.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective on the IPO Date, but no Option shall be
exercised unless and until the Plan has been approved by the stockholders of the
Company, which approval shall be within twelve (12) months before or after the
date the Plan is adopted by the Board.

15.      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.

                                      13.

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