Document:

Amendment No. 1 To Employment

 Exhibit 10.1 
  
 AMENDMENT NO. 1 TO 
 EMPLOYMENT, CONFIDENTIALITY, NON-COMPETITION 
 AND SEVERANCE AGREEMENT 
  
 THIS AMENDMENT NO. 1 TO EMPLOYMENT, CONFIDENTIALITY AND NON-COMPETITION
AGREEMENT (this “Amendment”) dated as of October 28, 2004, is made and entered into by and between Essential Group, Inc., a Delaware corporation (the “Company”), and Dennis Cavender (the “Executive”). 
  
 WHEREAS, the Company and the Executive have previously entered into that
certain Employment, Confidentiality, Non-Competition and Severance Agreement, dated October 27, 2003, (the “Agreement”); 
  
 WHEREAS, the Company and the Executive each desires to continue Executive’s employment with the Company without interruption; and 
  
 WHEREAS the Company and Executive each desires to amend the provisions of the
Agreement as provided in paragraph 1 of this Amendment. 
  
 NOW,
THEREFORE, the Company and Executive agree as follows: 
  

	1.	Amendments to Agreement. 

  

	 	(a)	Section 9(a)(i) of the Agreement is hereby amended and restated to read in its entirety as follows: 

  
 “for a period of six (6) months thereafter (the “Payment Period”), the Company shall pay the
Executive, in accordance with the Company’s regular payroll schedule, termination payments that in the aggregate equal to (A) 50% of the Executive’s highest annual base salary during the three-year period prior to the Executive’s
Termination Date plus (B) 100% of the Executive’s average annual cash and equity incentive compensation award during the three-year period prior to the Termination Date.” 
  

	2.	        Continuing Effectiveness of Agreement. Except as expressly provided herein to the contrary, the Agreement shall remain
unaffected and shall continue in full force and effect after the date hereof. 

  

	3.	        Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original but
all of which together shall constitute one and the same amendment. 

  
 [Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date first above
written.1 
  

							
	ESSENTIAL GROUP, INC.	 	 
		
	 /s/ C. Lee Jones

	 	 /s/ Dennis Cavender

	By:	 	C. Lee Jones Day	 	Dennis Cavender
	Its:	 	Chief Executive Officer	 	 
				
	 	 	 	 	Date:	 	 October 28, 2004

  

	1	The validity of execution of this Amendment on behalf of the Company is subject to the approval of this Amendment by the Board. 

  

 2Amendment No. 2 To Employment

 Exhibit 10.2 
  
 AMENDMENT NO. 2 TO 
 EMPLOYMENT, CONFIDENTIALITY, NON-COMPETITION 
 AND SEVERANCE AGREEMENT 
  
 THIS AMENDMENT NO. 2 TO EMPLOYMENT, CONFIDENTIALITY AND NON-COMPETITION
AGREEMENT (this “Amendment”) dated as of December 1, 2004, is made and entered into by and between Essential Group, Inc., a Delaware corporation (the “Company”), and Dennis Cavender (the “Executive”). 
  
 WHEREAS, the Company and the Executive have previously entered into that
certain Employment, Confidentiality, Non-Competition and Severance Agreement, dated October 27, 2003, (the “Agreement”); 
  
 WHEREAS, the Company and the Executive each desires to continue Executive’s employment with the Company without interruption; and 
  
 WHEREAS the Company and Executive each desires to amend the provisions of the
Agreement as provided in paragraph 1 of this Amendment. 
  
 NOW,
THEREFORE, the Company and Executive agree as follows: 
  

	1.	Amendments to Agreement. 

  

	 	(a)	            Section 5 of the Agreement is hereby amended and restated to read in its entirety as follows:

  
 “The Executive will
receive a gross base salary of $200,000.00 per annum, which base salary the Board may adjust from time to time, payable at the times and in the manner consistent with the Company’s general policies regarding compensation of executive Employees.
Such base salary includes any salary reduction contributions to (i) any Company-sponsored plan (the “401(k) Plan”) that includes a cash-or-deferred arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the
“Code”), (ii) any other Company-sponsored plan of deferred compensation or (iii) any Company-sponsored “cafeteria plan” under Section 125 of the Code.” 
  
 “The Company also agrees to pay Tatum CFO Partners, LTD. (“Tatum”) an amount of $1,000.00 on
a monthly basis while the Executive is employed with the Company according to the terms and conditions of the Full-Time Permanent Engagement Resources Agreement, dated November 29, 2004 between Tatum and the Company (Exhibit A to Amendment No.
2).” 
  

	2.	        Continuing Effectiveness of Agreement. Except as expressly provided herein to the contrary, the Agreement shall remain
unaffected and shall continue in full force and effect after the date hereof. 

  

	3.	        Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original but
all of which together shall constitute one and the same amendment. 

  
 [Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date first above written.

  

							
	ESSENTIAL GROUP, INC.	 	 
		
	 /s/ C. Lee Jones

	 	 /s/ Dennis Cavender

	By:	 	C. Lee Jones Day	 	Dennis Cavender—Chief Financial Officer
	Its:	 	Chief Executive Officer	 	 
				
	 	 	 	 	Date:	 	 December 1, 2004

  

 21997 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK OPTION PLAN

 Exhibit 10.1 
  
 COLEY PHARMACEUTICAL GROUP, INC. 
  
 1997 EMPLOYEE, DIRECTOR AND CONSULTANT STOCK OPTION PLAN 
  

	1.	DEFINITIONS. 

  
 Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this Coley Pharmaceutical Group, Inc. 1997 Employee,
Director and Consultant Stock Option Plan, have the following meanings: 
  
 Administrator means the Board of Directors, unless it has delegated power to act on its behalf to the Committee, in which case the Administrator means the Committee. 
  
 Affiliate means a corporation which, for purposes of Section 424 of
the Code, is a parent or subsidiary of the Company, direct or indirect. 
  
 Board of Directors means the Board of Directors of the Company. 
  
 Change of Control means the occurrence of any of the following events: 
  

	 	(i)	Ownership. Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as
defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities (excluding for this purpose the
Company or its Affiliates or any employee benefit plan of the Company) pursuant to a transaction or a series of related transactions which the Board of Directors does not approve; or 

  

	 	(ii)	 Merger/Sale of Assets. A merger or consolidation of the Company whether or not approved by the Board of Directors, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation) at
least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation outstanding immediately after such merger or consolidation, or 

  

	 	 
the stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; or

  

	 	(iii)	Change in Board Composition. A change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors are Incumbent Directors.
“Incumbent Directors” shall mean directors who either (A) are directors of the Company as of May     , 2002, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative votes of
at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of
directors to the Company). 

  
 Code means
the United States Internal Revenue Code of 1986, as amended. 
  
 Committee means the committee of the Board of Directors to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan. 
  
 Common Stock means shares of the Company’s common stock, $.01 par value per share. 
  
 Company means Coley Pharmaceutical Group, Inc., a Delaware
corporation. 
  
 Disability or Disabled means
permanent and total disability as defined in Section 22(e)(3) of the Code. 
  
 Fair Market Value of a Share of Common Stock means: 
  
 (1) If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the closing or last price of the Common Stock
on the Composite Tape or other comparable reporting system for the trading day immediately preceding the applicable date; 
  
 (2) If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly
reported for the Common Stock for the trading day referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the mean between the bid and the asked price for the Common Stock at the close of trading in the
over-the-counter market for the trading day on which Common Stock was traded immediately preceding the applicable date; and 
  

 (3) If the Common Stock is neither listed on a national securities exchange nor traded in the
over-the-counter market, such value as the Administrator, in good faith, shall determine. 
  
 ISO means an option meant to qualify as an incentive stock option under Section 422 of the Code. 
  
 Key Employee means an employee of the Company or of an Affiliate (including, without limitation, an employee who is also serving as an officer or
director of the Company or of an Affiliate), designated by the Administrator to be eligible to be granted one or more Options under the Plan. 
  
 Non-Qualified Option means an option which is not intended to qualify as an ISO. 
  
 Option means an ISO or Non-Qualified Option granted under the Plan. 
  
 Option Agreement means an agreement between the Company and a
Participant delivered pursuant to the Plan, in such form as the Administrator shall approve. 
  
 Participant means a Key Employee, director or consultant to whom one or more Options are granted under the Plan. As used herein, “Participant” shall include “Participant’s Survivors”
where the context requires. 
  
 Plan means this Coley
Pharmaceutical Group, Inc. 1997 Employee, Director and Consultant Stock Option Plan. 
  
 Shares means shares of the Common Stock as to which Options have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the
provisions of Paragraph 3 of the Plan. The Shares issued upon exercise of Options granted under the Plan may be authorized and unissued shares or shares held by the Company in its treasury, or both. 
  
 Survivors means a deceased Participant’s legal representatives
and/or any person or persons who acquired the Participant’s rights to an Option by will or by the laws of descent and distribution. 
  

	2.	PURPOSES OF THE PLAN. 

  
 The Plan is intended to encourage ownership of Shares by Key Employees and directors of and certain consultants to the Company in order to attract such
people, to induce them to work for the benefit of the Company or of an Affiliate and to provide additional incentive for them to promote the success of the Company or of an Affiliate. The Plan provides for the granting of ISOs and Non-Qualified
Options. 
  

	3.	SHARES SUBJECT TO THE PLAN. 

  
 The number of Shares which may be issued from time to time pursuant to this Plan shall be 2,580, or the equivalent of such number of Shares after the
Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction in accordance with Paragraph 16 of the Plan. 
  
 If an Option ceases to be “outstanding”, in whole or in part, the
Shares which were subject to such Option shall be available for the granting of other Options under the Plan. Any Option shall be treated as “outstanding” until such Option is exercised in full, or terminates or expires under the
provisions of the Plan, or by agreement of the parties to the pertinent Option Agreement. 
  

	4.	ADMINISTRATION OF THE PLAN. 

  
 The Administrator of the Plan will be the Board of Directors, except to the extent the Board of Directors delegates its authority to the Committee, in
which case the Committee shall be the Administrator. Subject to the provisions of the Plan, the Administrator is authorized to: 
  

	 	a.	Interpret the provisions of the Plan or of any Option or Option Agreement and to make all rules and determinations which it deems necessary or advisable for the administration of
the Plan; 

  

	 	b.	Determine which employees of the Company or of an Affiliate shall be designated as Key Employees and which of the Key Employees, directors and consultants shall be granted Options;

  

	 	c.	Determine the number of Shares for which an Option or Options shall be granted, provided, however, that in no event shall Options to purchase more than 2,580 Shares be granted to
any Participant in any fiscal year; and 

  

	 	d.	Specify the terms and conditions upon which an Option or Options may be granted; 

  
 provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of
preserving the tax status under Section 422 of the Code of those Options which are designated as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Option granted under it
shall be final, unless otherwise determined by the Board of Directors, if the Administrator is the Committee. 
  

	5.	ELIGIBILITY FOR PARTICIPATION. 

  
 The Administrator will, in its sole discretion, name the Participants in the Plan, provided, however, that each Participant must be a Key Employee,
director or consultant of the Company or of an Affiliate at the time an Option is granted. Notwithstanding any of the foregoing provisions, the Administrator may authorize the grant of an Option to a person not then an employee, director or
consultant of the Company or of an Affiliate; provided, however, that the actual grant of such Option shall be conditioned upon such person becoming eligible to become a Participant at or prior to the time of the delivery of the Option Agreement
evidencing such Option. ISOs may be granted only to Key Employees. Non-Qualified Options may be granted to any Key Employee, director or consultant of the Company or an Affiliate. The granting of any Option to any individual shall neither entitle
that individual to, nor disqualify him or her from, participation in any other grant of Options. 
  

	6.	TERMS AND CONDITIONS OF OPTIONS. 

  
 Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company and, to the extent required by law or requested by the
Company, by the Participant. The Administrator may provide that Options be granted subject to such conditions as the Administrator may deem appropriate including, without limitation, subsequent approval by the shareholders of the Company of this
Plan or any amendments thereto. The Option Agreements shall be subject to at least the following terms and conditions: 
  

	 	A.	Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and
in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option: 

  

	 	a.	Option Price: Each Option Agreement shall state the option price (per share) of the Shares covered by each Option, which option price shall be determined by the Administrator but
shall not be less than the par value per share of Common Stock. 

  

	 	b.	Each Option Agreement shall state the number of Shares to which it pertains; 

  

	 	c.	Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights
accrue or become exercisable in installments over a period of months or years, or upon the occurrence of certain conditions or the attainment of stated goals or events; and 

  

	 	d.	 Exercise of any Option may be conditioned upon the Participant’s execution of a Share purchase agreement in form satisfactory to the 

  

	 	 
Administrator providing for certain protections for the Company and its other shareholders, including requirements that: 

  

	 	i.	The Participant’s or the Participant’s Survivors’ right to sell or transfer the Shares may be restricted; and 

  

	 	ii.	The Participant or the Participant’s Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any
applicable restrictions. 

  

	 	B.	ISOs: Each Option intended to be an ISO shall be issued only to a Key Employee and be subject to at least the following terms and conditions, with such additional
restrictions or changes as the Administrator determines are appropriate but not in conflict with Section 422 of the Code and relevant regulations and rulings of the Internal Revenue Service: 

  

	 	a.	Minimum standards: The ISO shall meet the minimum standards required of Non-Qualified Options, as described in Paragraph 6(A) above, except clauses (a) thereunder.

  

	 	b.	Option Price: Immediately before the Option is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Section 424(d) of the Code:

  

	 	i.	Ten percent (10%) or less of the total combined voting power of all classes of share capital of the Company or an Affiliate, the Option price per share of the Shares covered
by each Option shall not be less than one hundred percent (100%) of the Fair Market Value per share of the Shares on the date of the grant of the Option. 

  

	 	ii.	More than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate, the Option price per share of the Shares covered by each
Option shall not be less than one hundred ten percent (110%) of the said Fair Market Value on the date of grant. 

  

	 	c.	Term of Option: For Participants who own 

  

	 	i.	Ten percent (10%) or less of the total combined voting power of all classes of share capital of the Company or an Affiliate, each Option shall terminate not more than ten
(10) years from the date of the grant or at such earlier time as the Option Agreement may provide. 

  

	 	ii.	More than ten percent (10%) of the total combined voting power of all classes of stock of the Company or an Affiliate, each Option shall terminate not more than five (5) years from
the date of the grant or at such earlier time as the Option Agreement may provide. 

  

	 	d.	Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of Options which may be exercisable in any calendar year (under this or any other ISO plan of the
Company or an Affiliate) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed one
hundred thousand dollars ($100,000), provided that this subparagraph (d) shall have no force or effect if its inclusion in the Plan is not necessary for Options issued as ISOs to qualify as ISOs pursuant to Section 422(d) of the Code.

  

	7.	EXERCISE OF OPTIONS AND ISSUE OF SHARES. 

  
 An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal executive office address,
together with provision for payment of the full purchase price in accordance with this Paragraph for the Shares as to which the Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement. Such
written notice shall be signed by the person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement. Payment of
the purchase price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock having a fair
market value equal as of the date of the exercise to the cash exercise price of the Option, determined in good faith by the Administrator, or (c) at the discretion of the Administrator, by delivery of the grantee’s personal recourse note
bearing interest payable not less than annually at no less than 100% of the applicable Federal rate, as defined in Section 1274(d) of the Code, or (d) at the discretion of the Administrator, in accordance with a cashless exercise program established
with a securities brokerage firm, and approved by the Administrator, or (e) at the discretion of the Administrator, by any combination of (a), (b), (c) and (d) above. Notwithstanding the foregoing, the Administrator shall accept only such payment on
exercise of an ISO as is permitted by Section 422 of the Code. 
  
 The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant’s Survivors, as the case may be). In determining what constitutes “reasonably
promptly,” it is expressly understood that the delivery of the Shares may be delayed by the Company in order to comply with any law or regulation (including, without limitation, state securities or “blue sky” laws) which requires the
Company to take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be evidenced by an appropriate certificate or certificates for fully paid, non-assessable Shares. 
  

 The Administrator shall have the right to accelerate the date of exercise of any installment of any
Option; provided that the Administrator shall not accelerate the exercise date of any installment of any Option granted to any Key Employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Paragraph 19) if such
acceleration would violate the annual vesting limitation contained in Section 422(d) of the Code, as described in Paragraph 6.B.d. 
  
 The Administrator may, in its discretion, amend any term or condition of an outstanding Option provided (i) such term or condition as amended is
permitted by the Plan, (ii) any such amendment shall be made only with the consent of the Participant to whom the Option was granted, or in the event of the death of the Participant, the Participant’s Survivors, if the amendment is adverse to
the Participant, and (iii) any such amendment of any ISO shall be made only after the Administrator, after consulting the counsel for the Company, determines whether such amendment would constitute a “modification” of any Option
which is an ISO (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holder of such ISO. 
  

	8.	RIGHTS AS A SHAREHOLDER. 

  
 No Participant to whom an Option has been granted shall have rights as a shareholder with respect to any Shares covered by such Option, except after due
exercise of the Option and tender of the full purchase price for the Shares being purchased pursuant to such exercise and registration of the Shares in the Company’s share register in the name of the Participant. 
  

	9.	ASSIGNABILITY AND TRANSFERABILITY OF OPTIONS. 

  
 By its terms, an Option granted to a Participant shall not be transferable by the Participant other than (i) by will or by the laws of descent and
distribution, or (ii) as otherwise determined by the Administrator and set forth in the applicable Option Agreement. The designation of a beneficiary of an Option by a Participant shall not be deemed a transfer prohibited by this Paragraph. Except
as provided above, an Option shall be exercisable, during the Participant’s lifetime, only by such Participant (or by his or her legal representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Option or of any rights granted thereunder contrary to the provisions of this
Plan, or the levy of any attachment or similar process upon an Option, shall be null and void. 
  

	10.	EFFECT OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE” OR DEATH OR DISABILITY. 

  
 Except as otherwise provided in the pertinent Option Agreement, in the event of a termination of service (whether as an
employee, director or consultant) with the Company or an Affiliate before the Participant has exercised all Options, the following rules apply: 
  

	 	a.	A Participant who ceases to be an employee, director or consultant of the Company or of an Affiliate (for any reason other than termination “for cause”, Disability, or
death for which events there are special rules in Paragraphs 11, 12, and 13, respectively), may exercise any Option granted to him or her to the extent that the Option is exercisable on the date of such termination of service, but only within such
term as the Administrator has designated in the pertinent Option Agreement. 

  

	 	b.	In no event may an Option Agreement provide, if the Option is intended to be an ISO, that the time for exercise be later than three (3) months after the Participant’s
termination of employment. 

  

	 	c.	The provisions of this Paragraph, and not the provisions of Paragraph 12 or 13, shall apply to a Participant who subsequently becomes Disabled or dies after the termination of
employment, director status or consultancy, provided, however, in the case of a Participant’s Disability or death within three (3) months after the termination of employment, director status or consultancy, the Participant or the
Participant’s Survivors may exercise the Option within one (1) year after the date of the Participant’s termination of employment, but in no event after the date of expiration of the term of the Option. 

  

	 	d.	Notwithstanding anything herein to the contrary, if subsequent to a Participant’s termination of employment, termination of director status or termination of consultancy, but
prior to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant’s termination, the Participant engaged in conduct which would constitute “cause”, then such Participant shall
forthwith cease to have any right to exercise any Option. 

  

	 	e.	A Participant to whom an Option has been granted under the Plan who is absent from work with the Company or with an Affiliate because of temporary disability (any disability other
than a permanent and total Disability as defined in Paragraph 1 hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such
Participant’s employment, director status or consultancy with the Company or with an Affiliate, except as the Administrator may otherwise expressly provide. 

  

	 	f.	Except as required by law or as set forth in the pertinent Option Agreement, Options granted under the Plan shall not be affected by any change of a Participant’s status within
or among the Company and any Affiliates, so long as the Participant continues to be an employee, director or consultant of the Company or any Affiliate. 

  

	11.	EFFECT OF TERMINATION OF SERVICE “FOR CAUSE”. 

  
 Except as otherwise provided in the pertinent Option Agreement, the following rules apply if the Participant’s service (whether as an employee,
director or consultant) with the Company or an Affiliate is terminated “for cause” prior to the time that all his or her outstanding Options have been exercised: 
  

	 	a.	All outstanding and unexercised Options as of the time the Participant is notified his or her service is terminated “for cause” will immediately be forfeited.

  

	 	b.	For purposes of this Plan, “cause” shall include (and is not limited to) dishonesty with respect to the Company or any Affiliate, insubordination, substantial malfeasance
or non-feasance of duty, unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company or any Affiliate. The determination of the Administrator as to the existence of “cause” will
be conclusive on the Participant and the Company. 

  

	 	c.	“Cause” is not limited to events which have occurred prior to a Participant’s termination of service, nor is it necessary that the Administrator’s finding of
“cause” occur prior to termination. If the Administrator determines, subsequent to a Participant’s termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant’s termination
the Participant engaged in conduct which would constitute “cause,” then the right to exercise any Option is forfeited. 

  

	 	d.	Any definition in an agreement between the Participant and the Company or an Affiliate, which contains a conflicting definition of “cause” for termination and which is in
effect at the time of such termination, shall supersede the definition in this Plan with respect to such Participant. 

  

	12.	EFFECT OF TERMINATION OF SERVICE FOR DISABILITY. 

  
 Except as otherwise provided in the pertinent Option Agreement, a Participant who ceases to be an employee, director or consultant of the Company or of an
Affiliate by reason of Disability may exercise any Option granted to such Participant: 
  

	 	a.	To the extent exercisable but not exercised on the date of Disability; and 

  

	 	b.	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights as would have accrued had the Participant not become
Disabled prior to the end of the accrual period which next ends following the date of Disability. The proration shall be based upon the number of days of such accrual period prior to the date of Disability. 

  
 A Disabled Participant may exercise such rights only within a period of not
more than one (1) year after the date that the Participant became Disabled, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if the Participant had not become disabled
and had continued to be an employee, director or consultant or, if earlier, within the originally prescribed term of the Option. 
  
 The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such
determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the
Administrator, the cost of which examination shall be paid for by the Company. 
  

	13.	EFFECT OF DEATH WHILE AN EMPLOYEE, DIRECTOR OR CONSULTANT. 

  
 Except as otherwise provided in the pertinent Option Agreement, in the event of the death of a Participant while the Participant is an employee, director
or consultant of the Company or of an Affiliate, such Option may be exercised by the Participant’s Survivors: 
  

	 	a.	To the extent exercisable but not exercised on the date of death; and 

  

	 	b.	In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights which would have accrued had the Participant not died
prior to the end of the accrual period which next ends following the date of death. The proration shall be based upon the number of days of such accrual period prior to the Participant’s death. 

  
 If the Participant’s Survivors wish to exercise the Option, they must
take all necessary steps to exercise the Option within one (1) year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or
she had not died and had continued to be an employee, director or consultant or, if earlier, within the originally prescribed term of the Option. 
  

	14.	PURCHASE FOR INVESTMENT. 

  
 Unless the offering and sale of the Shares to be issued upon the particular exercise of an Option shall have been effectively registered under the
Securities Act of 1933, as now in force or 

  

 
hereafter amended (the “1933 Act”), the Company shall be under no obligation to issue the Shares covered by such exercise unless and until the
following conditions have been fulfilled: 
  

	 	a.	The person(s) who exercise(s) such Option shall warrant to the Company, prior to the receipt of such Shares, that such person(s) are acquiring such Shares for their own respective
accounts, for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be
endorsed upon the certificate(s) evidencing their Shares issued pursuant to such exercise or such grant: 

  
 “The shares represented by this certificate have been taken for investment and they may not be sold or otherwise transferred by any person, including
a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933, as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption
from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities laws.” 
  

	 	b.	At the discretion of the Administrator, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise in compliance with the
1933 Act without registration thereunder. 

  

	15.	DISSOLUTION OR LIQUIDATION OF THE COMPANY. 

  
 Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised will terminate
and become null and void; provided, however, that if the rights of a Participant or a Participant’s Survivors have not otherwise terminated and expired, the Participant or the Participant’s Survivors will have the right immediately prior
to such dissolution or liquidation to exercise any Option to the extent that the Option is exercisable as of the date immediately prior to such dissolution or liquidation. 
  

	16.	ADJUSTMENTS. 

  
 Upon the occurrence of any of the following events, a Participant’s rights with respect to any Option granted to him or her hereunder which has not
previously been exercised in full shall be adjusted as hereinafter provided, unless otherwise specifically provided in the pertinent Option Agreement: 
  
 A. Stock Dividends and Stock Splits. If the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if
the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number 

  

 
of shares of Common Stock deliverable upon the exercise of such Option shall be appropriately increased or decreased proportionately, and appropriate
adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend. 
  
 B. Consolidations or Mergers. If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all
of the Company’s assets or otherwise (an “Acquisition”), the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”), shall, as to outstanding Options,
either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in
connection with the Acquisition or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that all Options must be exercised (either to the extent then exercisable or, at the discretion of the
Administrator, all Options being made fully exercisable for purposes of this Subparagraph), within a specified number of days of the date of such notice, at the end of which period the Options shall terminate; or (iii) terminate all Options in
exchange for a cash payment equal to the excess of the Fair Market Value of the shares subject to such Options (either to the extent then exercisable or, at the discretion of the Administrator, all Options being made fully exercisable for purposes
of this Subparagraph) over the exercise price thereof. 
  
 Notwithstanding the foregoing, in the event the Acquisition also constitutes a Change of Control, then all Options outstanding as of the date of the Acquisition shall be fully vested and immediately exercisable immediately prior to the
Acquisition. 
  
 C. Recapitalization or Reorganization. In
the event of a recapitalization or reorganization of the Company (other than a transaction described in Subparagraph B above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of
Common Stock, a Participant upon exercising an Option shall be entitled to receive for the purchase price paid upon such exercise the securities which would have been received if such Option had been exercised prior to such recapitalization or
reorganization. 
  
 D. Modification of ISOs.
Notwithstanding the foregoing, any adjustments made pursuant to Subparagraph A, B or C with respect to ISOs shall be made only after the Administrator, after consulting with counsel for the Company, determines whether such adjustments would
constitute a “modification” of such ISOs (as that term is defined in Section 424(h) of the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Administrator determines that such adjustments made with
respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments, unless the holder of an ISO specifically requests in writing that such adjustment be made and such writing indicates that the holder has full
knowledge of the consequences of such “modification” on his or her income tax treatment with respect to the ISO. 
  

	17.	ISSUANCES OF SECURITIES. 

  
 Except as expressly provided herein, 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 thereof shall be made with respect to, the number or price of shares subject to Options. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property
(including without limitation, securities) of the Company. 
  

	18.	FRACTIONAL SHARES. 

  
 No fractional shares shall be issued under the Plan and the person exercising such right shall receive from the Company cash in lieu of such fractional
shares equal to the Fair Market Value thereof. 
  

	19.	CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs. 

  
 The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such
Participant’s ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an employee of the Company
or an Affiliate at the time of such conversion. Such actions may include, but not be limited to, extending the exercise period or reducing the exercise price of the appropriate installments of such Options. At the time of such conversion, the
Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non-Qualified Options as the Administrator in its discretion may determine, provided that such conditions shall not be inconsistent with
this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have such Participant’s ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator takes appropriate
action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such conversion. 
  

	20.	WITHHOLDING. 

  
 In the event that any federal, state, or local income taxes, employment taxes, Federal Insurance Contributions Act (“F.I.C.A.”) withholdings or
other amounts are required by applicable law or governmental regulation to be withheld from the Participant’s salary, wages or other remuneration in connection with the exercise of an Option or a Disqualifying Disposition (as defined in
Paragraph 21), the Company may withhold from the Participant’s compensation, if any, or may require that the Participant advance in cash to the Company, or to any Affiliate of the Company which employs or employed the Participant, the amount of
such withholdings unless a different withholding arrangement, including the use of shares of the Company’s Common Stock 

  

 
or a promissory note, is authorized by the Administrator (and permitted by law). For purposes hereof, the fair market value of the shares withheld for
purposes of payroll withholding shall be determined in the manner provided in Paragraph 1 above, as of the most recent practicable date prior to the date of exercise. If the fair market value of the shares withheld is less than the amount of payroll
withholdings required, the Participant may be required to advance the difference in cash to the Company or the Affiliate employer. The Administrator in its discretion may condition the exercise of an Option for less than the then Fair Market Value
on the Participant’s payment of such additional withholding. 
  

	21.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. 

  
 Each Key Employee who receives an ISO must agree to notify the Company in writing immediately after the Key Employee makes a Disqualifying Disposition of
any shares acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is any disposition (including any sale) of such shares before the later of (a) two years after the date the Key Employee was granted the ISO, or (b) one year after
the date the Key Employee acquired Shares by exercising the ISO. If the Key Employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter. 
  

	22.	TERMINATION OF THE PLAN. 

  
 The Plan will terminate on the date which is ten (10) years from the earlier of the date of its adoption and the date of its approval by the
shareholders of the Company. The Plan may be terminated at an earlier date by vote of the shareholders of the Company; provided, however, that any such earlier termination shall not affect any Option Agreements executed prior to the effective date
of such termination. 
  

	23.	AMENDMENT OF THE PLAN AND AGREEMENTS. 

  
 The Plan may be amended by the shareholders of the Company. The Plan may also be amended by the Administrator, including, without limitation, to the
extent necessary to qualify any or all outstanding Options granted under the Plan or Options to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock
options under Section 422 of the Code, and to the extent necessary to qualify the shares issuable upon exercise of any outstanding Options granted, or Options to be granted, under the Plan for listing on any national securities exchange or quotation
in any national automated quotation system of securities dealers. Any amendment approved by the Administrator which the Administrator determines is of a scope that requires shareholder approval shall be subject to obtaining such shareholder
approval. Any modification or amendment of the Plan shall not, without the consent of a Participant, adversely affect his or her rights under an Option previously granted to him or her. With the consent of the Participant affected, the Administrator
may amend outstanding Option Agreements in a manner which may 

  

 
be adverse to the Participant but which is not inconsistent with the Plan. In the discretion of the Administrator, outstanding Option Agreements may be
amended by the Administrator in a manner which is not adverse to the Participant. 
  

	24.	EMPLOYMENT OR OTHER RELATIONSHIP. 

  
 Nothing in this Plan or any Option Agreement shall be deemed to prevent the Company or an Affiliate from terminating the employment, consultancy or
director status of a Participant, nor to prevent a Participant from terminating his or her own employment, consultancy or director status or to give any Participant a right to be retained in employment or other service by the Company or any
Affiliate for any period of time. 
  

	25.	GOVERNING LAW. 

  
 This Plan shall be construed and enforced in accordance with the law of the State of Delaware.

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