Document:

SEPARATION AND CONSULTANCY AGREEMENT

     This Separation and Consultancy Agreement ("Agreement") is entered into as
of this 31st day of July, 2002, among COLLINS & AIKMAN CORPORATION and any
successors thereto (collectively, the "Company"), COLLINS & AIKMAN PRODUCTS CO.
and any successors thereto (collectively, "Products"), and THOMAS E. EVANS (the
"Executive").

     The Executive and the Company agree as follows:

     1. Retirement. The employment relationship between the Executive and the
Company terminated on July 31, 2002 (the "Termination Date"). Effective as of
the Termination Date, the Executive hereby elects to retire (i) as Chairman of
the Board of Directors and Chief Executive Officer of the Company, and as a
member of the Board of Directors of the Company, and (ii) all other officer and
employee positions with the Company and its subsidiaries as well as any other
membership on Boards of Directors and committees of the Company and its
subsidiaries. The Employment Agreement, dated as of April 22, 1999, between the
Company, Products and the Executive (the "Employment Agreement") is terminated
as of the Termination Date and all provisions thereof and any subsequent oral or
written understandings concerning the Executive's employment (including any
lock-up agreement, subject to applicable law and agreements with any
underwriters) are also hereby terminated, including any agreements with stated
effect after termination.

     2. Payments. The Company and Products agree, jointly and severally, as
follows:

     o    to make a cash payment to the Executive on or before August 15, 2002
          of $5,500,000;

     o    to provide the Executive with additional credited service under the
          Products Supplemental Retirement Income Plan ("SRIP") for the
          Consultancy Period; the Company acknowledges that (i) the Executive's
          Total Annual Compensation for purposes of the SRIP shall be
          $2,121,667, (ii) the Executive is fully vested in his accrued SRIP
          benefits, (iii) the Executive has been credited with past service
          accrued under the Tenneco Executive Retirement Plan which provided a
          Benefit Accrual amount of 31.2% under the SRIP on the first day of his
          employment, (iv) all benefits accrued after April 22, 1999 (including
          benefits accruing during the Consultancy Period described below) will
          be according to the Plan Schedule shown in Attachment A hereto and (v)
          except as expressly modified by this paragraph, the terms of the SRIP
          shall continue to apply to Executive;

<PAGE>
                                      -2-

     o    subject to Section 3 hereof, to pay the Executive a quarterly fee of
          $325,000 in cash for consulting services during the Consultancy
          Period, payable in arrears on each March 31, June 30, September 30 and
          December 31 (or the next succeeding business day) with the first
          $325,000 payment due on September 30, 2002;

     o    the Executive has, and shall be entitled to retain, options to
          purchase 504,000 shares of Common Stock of the Company with an
          exercise price of $10 per share which shall vest fully on the
          Termination Date; such options shall remain exercisable until 5:00
          p.m., New York time on the second anniversary of the Termination Date
          at which time such options shall expire; and the Executive shall be
          entitled to participate in the "cashless exercise" program currently
          administered by Merrill Lynch. (As provided in section 1 hereof, the
          lock-up provisions of the Employment Agreement are no longer
          applicable). The Executive agrees that he shall have no rights with
          respect to all other non-vested options to purchase Common Stock of
          the Company, including with respect to all options granted on June 11,
          2002;

     o    the Executive shall have access to secretarial support for the 90 days
          following the Termination Date. The Company shall, at its expense,
          arrange for the packing and shipping of the Executive's personal
          effects to a destination chosen by the Executive;

     o    the Company shall determine the gross-up for income taxes for the
          "Executive Perquisites" referred to in Annex A to the Employment
          Agreement received by the Executive in 2002 through the Termination
          Date and shall make a cash payment to the Executive on or before
          August 15, 2002 of such gross-up amount;

     o    at any time that the Executive is in Detroit on or prior to December
          31, 2002, the Executive shall have the right to use a pooled Company
          car and a Company apartment. The value of such benefits shall be
          grossed-up for income tax purposes, and the gross-up amount shall be
          paid to the Executive in 2003 in accordance with the Company's prior
          practices;

     o    during the Consultancy Period, the Company shall continue, at the
          Company's expense, medical and dental benefits for the Executive
          substantially the same as those provided to the Executive immediately
          prior to the Termination Date;

<PAGE>
                                      -3-

     o    the current five-year cliff vesting provisions of the Pension Account
          Plan and the Shadow Retirement Income Plan in which the Executive is a
          participant shall be modified in the case of the Executive to provide
          that the Consultancy Period shall be credited for purposes of such
          vesting provisions or, if such plan modifications are not permitted
          under applicable law, an equivalent amount of benefits will be
          provided to the Executive outside the plans;

     o    during the Consultancy Period, the Executive shall be entitled to
          those "Executive Perquisites" referred to in Annex A to the Employment
          Agreement with an allowance not to exceed $30,000 per year grossed up
          for income taxes;

     o    during the Consultancy Period, the Executive shall be entitled to use
          of a Company airplane for up to 30 on-board hours for each 12-month
          period commencing on the Termination Date or the first anniversary
          thereof for use within the continental United States and at such times
          as would not interfere with the Company's use of such plane, as
          determined by the Company in its reasonable discretion. On-board hours
          shall mean time the Executive is actually on such airplane. If the
          Company ceases to maintain a Company airplane, the Company shall
          reimburse the Executive for the costs of chartering a comparable
          airplane for comparable hours, as determined by the Company in its
          reasonable discretion. The value of such benefits shall be grossed-up
          for income tax purposes, and the gross-up amount shall be paid to the
          Executive in accordance with the Company's prior practices; and

     o    during the Consultancy Period, the Company will use all commercially
          reasonable efforts to cooperate with the Executive to provide for the
          benefits intended to be afforded by the tag-along agreement between
          the Executive and Heartland Industrial Partners, L.P. attached hereto
          as Attachment B.

     3. Consulting Services. During the period (the "Consultancy Period")
beginning on the Termination Date and ending on the earlier of the (1) June 30,
2004 or (2) the Executive becoming an employee, officer or director of, or
consultant to, or otherwise provide services to, Competing Businesses (as
defined hereinafter), the Executive shall provide such consulting services to
the Company commensurate with his status and experience as the former Chief
Executive Officer of the Company with respect to such matters as shall be
reasonably requested from time to time by the Company. In the event the
Executive dies during the Consultancy Period, the Company shall continue to make
the quarterly payments through the second anniversary hereof. The Executive
shall, in any event, assist the Company in the tran-

<PAGE>
                                      -4-

sition in management of the Company and provide such additional services as and
when reasonably requested. Following a request by the Company, the Executive and
the Company shall mutually determine the time and location at which he shall
perform such services, subject to the right of the Company to reasonably request
in advance a specific time and location. The Executive shall honor any such
reasonable request absent sufficient advance notice and a conflicting business
commitment. The Company shall endeavor not to request any assistance as shall
unreasonably interfere with any other business activity of the Executive,
including any new employment. The Executive shall not, solely by virtue of the
consulting services provided hereunder, be considered an officer or employee of
the Company, and shall have no power or authority to contract in the name of or
bind the Company. The Executive shall not be entitled to any employee benefits
or other compensation by virtue thereof, except as expressly provided in this
Agreement. At the expiration of the Consultancy Period, all rights under Section
2 (including to consulting fees) which are solely for the duration of the
Consultancy Period shall terminate.

     4. Release. In consideration of the above, the sufficiency of which the
Executive hereby acknowledges, the Executive, on behalf of the Executive and the
Executive's heirs, executors and assigns hereby releases and forever discharges
the Company and its members, shareholders, parents, affiliates, subsidiaries,
divisions, any and all current and former directors, officers, employees,
agents, and contractors and their heirs and assigns, and any and all employee
pension benefit or welfare benefit plans of the Company, including current and
former trustees and administrators of such employee pension benefit and welfare
benefit plans, from all claims, charges, or demands, in law or in equity,
whether known or unknown, which may have existed or which may now exist from the
beginning of time to the date of this Agreement, including, without limitation,
any claims the Executive may have arising from or relating to the Executive's
employment or termination from employment with the Company, including a release
of any rights or claims the Executive may have under Title VII of the Civil
Rights Act of 1964, as amended, and the Civil Rights Act of 1991 (which prohibit
discrimination in employment based upon race, color, sex, religion and national
origin); the Americans with Disabilities Act of 1990, as amended, and the
Rehabilitation Act of 1973 (which prohibit discrimination based upon
disability); the Family and Medical Leave Act of 1993 (which prohibits
discrimination based on requesting or taking a family or medical leave); Section
1981 of the Civil Rights Act of 1866 (which prohibits discrimination based upon
race); Section 1985(3) of the Civil Rights Act of 1871 (which prohibits
conspiracies to discriminate); the Employee Retirement Income Security Act of
1974, as amended; any other federal, state or local laws against discrimination;
or any other federal, state, or local statute, or common law relating to
employment, wages, hours, or any other terms and conditions of employment. This
includes a release by the Executive of any claims for wrongful discharge, breach
of contract, torts or any other claims in any way related to the Executive's
employment with or resignation or termination from the Company, including any
claim under the Employment Agreement or any subsequent written or oral
understandings relating to employ-

<PAGE>
                                      -5-

ment. This release also includes a release of any claims for age discrimination
under the Age Discrimination in Employment Act, as amended ("ADEA"). The ADEA
requires that the Executive be advised to consult with an attorney before the
Executive waives any claim under ADEA. In addition, the ADEA provides the
Executive with at least 21 days to decide whether to waive claims under ADEA and
seven days after the Executive signs the Agreement to revoke that waiver. This
release does not release the Company from any obligations due to the Executive
under this Agreement. This Agreement is not an admission by either the Executive
or the Company of any wrongdoing or liability.

     5. Acknowledgment of No Reinstatement. The Executive understands and agrees
that the consideration provided for herein is more than (and in lieu of) that
which the Executive would otherwise be entitled to under the Company's existing
plans and policies, under the Employment Agreement or otherwise. The Executive
waives any right to reinstatement or future employment with the Company
following the Executive's separation from the Company on the Termination Date.

     6. Non-Disparagement. The Executive agrees not to make any oral or written
statements or otherwise engage in any act that is intended or may reasonably be
expected to harm the reputation, business, prospects or operations of the
Company, its officers, directors, stockholders or employees or any persons
related to the foregoing. The Company further agrees not to make any oral or
written statements or otherwise engage in any act which is intended or may
reasonably be expected to harm the reputation, business or prospects of the
Executive. The Company and the Executive have agreed on the statement attached
hereto as Appendix B and any public statements regarding the subject matter
thereof shall be consistent with such Appendix B, except as may be required by
law or legal process.

     7. Confidentiality; Non-Competition; Etc. (a) The Executive agrees that the
Executive will keep confidential all confidential information and trade secrets
of the Company or any of its subsidiaries or affiliates and will not disclose
such information to any person without prior approval of the Board of Directors
of the Company or use such information for any purpose other than in the course
of acting as a consultant pursuant to this Agreement. It is understood that for
purposes of this Agreement the term "confidential information" is to be
construed broadly to include all material nonpublic or proprietary information.
The Executive shall promptly return any documents, records, data, books or
materials of the Company or its subsidiaries or affiliates in his possession or
control and any of his workpapers containing confidential information or trade
secrets of the Company or its subsidiaries or affiliates. The Company and
Products acknowledge that the Executive has a long and experienced history in
the automotive industry and that over the years, the Executive acquired
substantial knowledge, skill and expertise in that industry. The Company and
Products agree that it is not their intention nor the objective of this Section
to preclude Executive from continuing to work and continue to use his knowledge,
skill and expertise in the automotive industry after

<PAGE>
                                      -6-

his employment with Products and the Company terminates, so long as such
employment does not result in a breach by the Executive of the provisions of
this Agreement and is subject to the limitations otherwise applicable to
Executive upon taking on other employment.

     (b) The Executive agrees that from the date hereof through the first
anniversary hereof and so long as the Company is not in material breach of any
continuing payment obligation owed to the Executive pursuant to Section 2
hereof, the Executive shall not, directly or indirectly (whether for
compensation or otherwise), as an agent, principal, partner, employee, officer,
director, trustee, consultant, shareholder, or in any other capacity, own,
manage, operate, join, control or participate in the ownership, management,
operation or control of, or be connected in any manner with, any of the
Competing Businesses (as defined below); provided, however, that notwithstanding
the foregoing, nothing contained in this Agreement shall be deemed to preclude
the Executive from owning not more than 2% of the publicly traded securities of
any Competing Business. The "Competing Businesses" shall mean Intiers Automotive
Inc., Lear Corporation, Johnson Controls, Inc. and any subsidiary or affiliate
of any such company or any of their successors.

     (c) The Executive acknowledges that the agreements and covenants contained
in this Section are essential to protect the value of the Company's and its
subsidiaries' business and assets and by virtue of his employment with the
Company, the Executive has obtained knowledge, contacts, know-how, training,
experience and other information relating to the Company's and its subsidiaries'
business operations, and there is a substantial probability that such knowledge,
know-how, contacts, training, experience and information could be used to the
substantial advantage of a competitor of the Company and its subsidiaries and to
the Company's and its subsidiaries' substantial detriment. Accordingly, for a
period commencing on the date hereof and ending upon August 15, 2004, the
Executive shall not, directly or indirectly, for himself or on behalf of or in
conjunction with any person, partnership, corporation or other entity, interfere
with or disrupt, or attempt to interfere with or disrupt, the relationship,
contractual or otherwise, between the Company or any of its subsidiaries and any
customer, client, supplier, distributor or agent of the Company or any of its
subsidiaries. In addition, for a period commencing on the date hereof and ending
upon August 15, 2004, the Executive shall not, without the written consent of
the Company, directly or indirectly, for himself or on behalf of or in
conjunction with any person, partnership, corporation or other entity, interfere
with or disrupt, or attempt to interfere with or disrupt, the relationship,
contractual or otherwise, between the Company or any of its subsidiaries and any
consultant, independent contractor or employee of the Company or any of its
subsidiaries.

     (d) It is the desire and intent of the parties that the provisions of this
Section shall be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular portion of this Section shall be adjudicated to
be invalid or unenforceable, this Section shall be

<PAGE>
                                      -7-

deemed amended to delete therefrom the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the operation of this
Section in the particular jurisdiction in which such adjudication is made. The
Executive agrees that he will execute any and all documents which are reasonably
necessary to effectuate the provisions of this Section.

     (e) If there is a breach or threatened breach by the Executive of the
provisions of this Agreement, the Company or its affiliates shall be entitled,
without the requirement to post a bond, to an injunction restraining the
Executive from such breach. Nothing herein shall be construed as prohibiting the
Company from pursuing any other remedies for such breach or threatened breach.
In the event of a breach of this Agreement in any material respect by the
Executive all options to purchase Common Stock of the Company held by the
Executive shall terminate immediately upon such breach.

     8. Cooperation; Reimbursement. The Executive shall, at the request of the
Company, assist and cooperate with the Company in the defense and/or
investigation of any third party claim or any investigation or proceeding,
whether actual or threatened, including, without limitation, participating as a
witness in any litigation, arbitration, hearing or other proceeding between the
Company and a third party or any government body. The Company shall reimburse
the Executive for all reasonable expenses incurred by him in connection with
such assistance including, without limitation, travel expenses.

     9. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without reference to the
principles of conflict of laws.

     10. Withholding. All payments to be made hereunder shall be net of all
applicable income and employment taxes required to be withheld therefrom.

     11. Complete Agreement. This Agreement represents the complete agreement
between the Executive and the Company concerning the subject matter in this
Agreement and supersedes all prior agreements or understandings, written or
oral, including the Employment Agreement which is hereby terminated. This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

     12. Severability. Each of the sections contained in this Agreement shall be
enforceable independently of every other section in this Agreement, and the
invalidity or nonenforceability of any section shall not invalidate or render
unenforceable any other section contained in this Agreement.

<PAGE>
                                      -8-

     13. Revocation. It is further understood that for a period of 7 days
following the execution of this Agreement in duplicate originals, the Executive
may revoke this Agreement, and this Agreement shall not become effective or
enforceable until the revocation period has expired. No revocation of this
Agreement by the Executive shall be effective unless the Company has received,
within the 7-day revocation period, written notice of any revocation and all
originals and copies of this Agreement.

     14. Voluntary Agreement. This Agreement has been entered into voluntarily
and not as a result of coercion, duress, or undue influence. The Executive
acknowledges that the Executive has read and fully understands the terms of this
Agreement and has been advised to consult with an attorney before executing this
Agreement. Additionally, the Executive hereby acknowledges and waives the
opportunity of at least 21 days to consider this Agreement.

     15. Successors and Assigns. The Company will require any successor or
assignee, whether direct or indirect, by purchase, merger, consolidation or
otherwise, of all, or substantially all, of the business and/or assets of the
Company to assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if such
succession or assignment had not taken place. This Agreement shall inure to the
benefit of and be enforceable by the Executive's personal and legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

     16. Reimbursement of Legal Fees. The Company shall reimburse the Executive
for the reasonable legal fees incurred by him in connection with his review and
negotiation of this Agreement, provided that such reimbursement does not exceed
$5,000.

<PAGE>
                                      -9-

     The parties to this Agreement have executed this Agreement as of the day
and year first written above.

                                    COLLINS & AIKMAN CORPORATION

                                    By:    /s/ J. Michael Stepp
                                           -------------------------------------
                                           Name:   J. Michael Stepp
                                           Title:  Executive Vice President

                                    COLLINS & AIKMAN PRODUCTS CO.

                                    By:    /s/ J. Michael Stepp
                                           -------------------------------------
                                           Name:   J. Michael Stepp
                                           Title:  Executive Vice President

                                    EXECUTIVE

                                    By:    /s/ Thomas E. Evans
                                           -------------------------------------
                                           Name:  Thomas E. Evans

<PAGE>

                                                                    Attachment A

                       Supplemental Retirement Income Plan
                                 Benefit Accrual

--------------------------------------------------------------------------------
                                         % of Participating
     Years of Service                     Employee's Total
                                        Annual Compensation
--------------------------------------------------------------------------------
                      1                                 25.7%
--------------------------------------------------------------------------------
                      2                                  27.6
--------------------------------------------------------------------------------
                      3                                  29.4
--------------------------------------------------------------------------------
                      4                                  31.2
--------------------------------------------------------------------------------
                      5                                   33
--------------------------------------------------------------------------------
                      6                                  34.8
--------------------------------------------------------------------------------
                      7                                  36.6
--------------------------------------------------------------------------------
                      8                                  38.4
--------------------------------------------------------------------------------
                      9                                  40.2
--------------------------------------------------------------------------------
                     10                                   42
--------------------------------------------------------------------------------Prepared by R.R. Donnelley Financial -- 2002 Stock Option Plan

  
 EXHIBIT 4.1 
  
 SYMMETRICOM, INC. 
  
 2002 STOCK OPTION PLAN 

 
 1.    Purposes of the Plan.    The purposes of this 2002 Stock Option Plan are:

  

	 	•
	 
	to attract and retain the best available personnel for positions of substantial responsibility, 
 

  

	 	•
	 
	to provide additional incentive to Employees, Directors and Consultants, and 
 

  

	 	•
	 
	to promote the success of the Company’s business. 
 

  
 Options granted under the Plan are not intended to qualify as incentive stock options within the meaning of Section 422 of the Code. 
  
 2.    Definitions.    As used herein, the following definitions shall apply: 

 
 (a)  “Administrator” means the Board or any of its Committees as shall be
administering the Plan, in accordance with Section 4 of the Plan. 
  
 (b)  “Applicable Laws” means the requirements relating to the administration of stock option plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or
quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the Plan. 
  
 (c)  “Board” means the Board of Directors of the Company. 
  
 (d)  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (e)  “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 

 
 (f)  “Common Stock” means the common stock of the Company. 
  
 (g)  “Company” means Symmetricom, Inc., a California corporation. 
  
 (h)  “Consultant” means any person, including an advisor, engaged by the Company or a Parent or
Subsidiary to render services to such entity. 
  
 (i)  “Director” means a
member of the Board. 
  
 (j)  “Disability” means total and permanent
disability as defined in Section 22(e)(3) of the Code. 
  
 (k)  “Employee”
means any person, including Officers, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

  
 (l)  “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
  
 (m)  “Fair Market Value” means, as of any date, the value of
Common Stock determined as follows: 
 

 -1- 

  
 (i)  If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system for the same day as the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii)  If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not
reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for 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 Administrator deems reliable; or 
  
 (iii)  In the absence
of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 
  
 (n)  “Notice of Grant” means a written or electronic notice evidencing certain terms and conditions of an individual Option grant. The Notice of Grant is part of the Option
Agreement. 
  
 (o)  “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. 
  
 (p)  “Option” means a nonstatutory stock option granted pursuant to the Plan, which is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

  
 (q)  “Option Agreement” means an agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (r)  “Optioned Stock” means the Common Stock subject to an Option. 
  
 (s)  “Optionee” means the holder of an outstanding Option granted under the Plan. 
  
 (t)  “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code. 
  
 (u)  “Plan” means this 2002
Stock Option Plan. 
  
 (v)  “Option Exchange Program” means a program
whereby outstanding options are surrendered in exchange for options with a lower exercise price. 
  
 (w)  “Service Provider” means an Employee, Director or Consultant. 
  
 (x)  “Share” means a share of the Common Stock, as adjusted in accordance with Section 12 of the Plan. 
  
 (y)  “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3.    Stock Subject to the Plan.    Subject to the provisions of Section 12 of the Plan
and, as amended by the Board, the maximum aggregate number of Shares that may be optioned and sold under the Plan is 2,200,000 Shares. The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange
Program, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). 
 

 -2- 

  
 4.    Administration of the Plan. 

 
 (a)  Administration.    The Plan shall be administered by (A) the Board or
(B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 
  
 (b)  Powers of the Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the
Administrator shall have the authority, in its discretion: 
  
 (i)  to determine Fair
Market Value of the Common Stock; 
  
 (ii)  to select the Service Providers to whom Options
may be granted hereunder; 
  
 (iii)  to determine whether and to what extent Options are
granted hereunder, 
  
 (iv)  to determine the number of shares of Common Stock to be
covered by each Option granted hereunder; 
  
 (v)  to approve forms of agreement for use
under the Plan; 
  
 (vi)  to determine the terms and conditions, not inconsistent with the
terms of the Plan, of any Option granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration
or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

  
 (vii)  to institute an Option Exchange Program, 
  
 (viii)  to construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 

 
 (ix)  to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
  
 (x)  to modify or amend each Option (subject to Section 15(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than
is otherwise provided for in the Plan; 
  
 (xi)  to allow Optionees to satisfy withholding
tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may
deem necessary or advisable; 
  
 (xii)  to authorize any person to execute on behalf of the
Company any instrument required to reflect the grant of an Option by the Administrator; 
  
 (xiii)  to make all other determinations deemed necessary or advisable for administering the Plan. 
  
 (c)  Effect of Administrator’s Decision.    The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees
and any other holders of Options. 
 

 -3- 

  
 5.    Eligibility.    Options may
be granted to Service Providers except Officers and Directors; provided, however, that Options may be granted to an Officer as an inducement essential to the Officer’s initial employment with the Company. 
  
 6.    Limitation.    Neither the Plan nor any Option shall confer upon an Optionee any
right with respect to continuing the Optionee’s relationship as a Service Provider with the Company, nor shall they interfere in any way with the Optionee’s right or the Company’s right to terminate such relationship at any time, with
or without cause. 
  
 7.    Term of Plan.    The Plan shall become
effective April 26, 2002. It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 14 of the Plan. 
  
 8.    Term of Option.    The term of each Option shall be stated in the Option Agreement. 
  
 9.    Option Exercise Price and Consideration. 
  
 (a)  Exercise Price.    The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator. 
  
 (b)  Waiting Period and Exercise Dates.    At the time an Option is granted, the
Administrator shall fix the period within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised. 
  
 (c)  Form of Consideration.    The Administrator shall determine the acceptable form of consideration for exercising an
Option, including the method of payment. Such consideration may consist entirely of: 
  
 (i)  cash; 
  
 (ii)  check; 
  
 (iii)  promissory note; 
  
 (iv)  other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six months
on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
  
 (v)  consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 

 
 (vi)  a reduction in the amount of any Company liability to the Optionee, including any liability
attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement; 
  
 (vii)  any combination of the foregoing methods of payment; or 
  
 (viii)  such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 
  
 10.    Exercise of Option. 
  
 (a)  Procedure for Exercise; Rights as a Shareholder.    Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the Option Agreement. Unless the Administrator provides otherwise, vesting of
 
 

 -4- 

 
Options granted hereunder shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person
entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option
Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 12 of the Plan. 
  
 Exercising an Option in any manner shall decrease the
number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b)  Termination of Relationship as a Service Provider.    If an Optionee ceases to be a Service Provider, other than upon the Optionee’s death or Disability,
the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option
as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination. If, on the date of termination, the Optionee is
not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the
Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (c)  Disability of Optionee.    If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option within such period of time
as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in
the Option Agreement, the Option shall remain exercisable for six (6) months following the Optionee’s termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

  
 (d)  Death of Optionee.    If an Optionee dies while a Service Provider, the
Option may be exercised within such period of time as is specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s estate or by a person who
acquires the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is vested on the date of death. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for six (6)
months following the Optionee’s termination. If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. The Option may be
exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or distribution. If the Option is not so exercised within
the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (e)  Buyout Provisions.    The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted based on such terms and conditions as the Administrator
shall establish and communicate to the Optionee at the time that such offer is made. 
 

 -5- 

  
 11.    Non-Transferability of
Options.    Unless determined otherwise by the Administrator, an Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Optionee, only by the Optionee. If the Administrator makes an Option transferable, such Option shall contain such additional terms and conditions as the Administrator deems appropriate. 

 
 12.    Adjustments Upon Changes in Capitalization, Dissolution. Merger or Asset Sale. 

 
 (a)  Changes in Capitalization.    Subject to any required action by the shareholders of
the Company, the number of shares of Common Stock covered by each outstanding Option, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been
returned to the Plan upon cancellation or expiration of an Option, as well as the price per share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares
of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. 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 of Common Stock subject to an Option. 
  
 (b)  Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable prior to the
effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered
thereby, including Shares as to which the Option would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Option shall lapse as to all
such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Option will terminate immediately prior to the consummation of such proposed
action. 
  
 (c)  Merger or Asset Sale.    In the event of a merger of the
Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Option shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of
the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option, the Optionee shall fully vest in and have the right to exercise the Option as to all of the Optioned Stock, including Shares as to
which it would not otherwise be vested or exercisable. If an Option becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Optionee in writing or
electronically that the Option shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option
shall be considered assumed if, following the merger or sale of assets, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option immediately prior to the merger or sale of assets, the
consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation
or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option, to be solely common stock of
the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
  
 (d)  Change in Control.    In the event of a “Change in Control” of the Company, as defined in paragraph (e) below, any or
all or none of the following acceleration and valuation provisions shall apply, as the Board, in its discretion, shall determine prior to such Change of Control: 
 

 -6- 

  
 (i)  Any Options outstanding as of the date such Change
in Control is determined to have occurred that are not yet exercisable and vested on such date shall become fully exercisable and vested; 
  
 (ii)  To the extent they are exercisable and vested, the value of all outstanding Options shall, unless otherwise determined by the Board at or after grant, be cashed out at the Change in
Control Price, reduced by the exercise price applicable to such Options. The cash out proceeds shall be paid to the Optionee or, in the event of death of an Optionee prior to payment, to the estate of the Optionee or to a person who acquired the
right to exercise the Option by bequest or inheritance. 
  
 (e)  Definition of “Change in
Control”.    For purposes of this Section 12, a “Change in Control” means the happening of any of the following: 
  
 (i)  When any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, a Subsidiary or a
Company employee benefit plan, including any trustee of such plan acting as trustee) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; or 
  
 (ii)  The occurrence of a transaction requiring shareholder approval, and involving the sale of all or substantially all of the assets of the Company or the merger of the Company with or into another corporation.

  
 (f)  Change in Control Price.    For purposes of this Section 12,
“Change in Control Price” shall be, as determined by the Board, (i) the highest closing sale price of a Share of Common Stock as reported by the NASDAQ System and as appearing in the Wall Street Journal (or, in the event the Common Stock
is listed on a stock exchange, the highest closing price on such exchange as reported on the Composite Transaction Reporting System), at any time within the 60-day period immediately preceding the date of determination of the Change in Control Price
by the Board (the “60-Day Period”), or (ii) the highest price paid or offered, as determined by the Board, in any bona fide transaction or bona fide offer related to the Change in Control of the Company, at any time within the 60-Day
Period, or (iii) some lower price as the Board, in its discretion, determines to be a reasonable estimate of the fair market value of a share of Common Stock. 
  
 13.    Date of Grant.    The date of grant of an Option shall be, for all purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the Administrator. Notice of the determination shall be provided to each Optionee within a reasonable time after the date of such grant. 
  

14.    Amendment and Termination of the Plan. 
  
 (a)  Amendment and Termination.    The Board may at any time amend, alter, suspend or terminate the Plan. 
  
 (b)  Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the Plan shall impair the rights of
any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator’s ability to
exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination. 
  
 15.    Conditions Upon Issuance of Shares. 
  
 (a)  Legal
Compliance.    Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to
the approval of counsel for the Company with respect to such compliance. 
 

 -7- 

  
 (b)  Investment Representations.    As a
condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 
  
 16.    Inability to Obtain Authority.    The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

  
 17.    Reservation of Shares.    The Company, during the term of
this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 

 -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]