Document:

IMPAC Companies Deferred Compensation Plan

 Exhibit 10.17
  THE IMPAC COMPANIES
 DEFERRED COMPENSATION PLAN
 
ARTICLE I
  INTRODUCTION
            1.1     Purpose.  The purpose of this Plan is to enable the Sponsor and Affiliated Companies to provide a competitive
tax-deferred capital accumulation vehicle in order to attract and retain key management.
            1.2     Effective
Date and Term.  This Plan is effective as of February 1, 2000 (the “Effective Date”), unless otherwise expressly provided herein.
            1.3     Participation.  Participation in this Plan is open only to employees of the Sponsor or any Affiliated Company who meet
the requirements specified in Section 4.1 of the Plan and who are selected for participation in the Plan by the Committee.  Participation in this Plan by any such employees, and the payment of any benefits under this Plan to any such employee,
shall be governed by the terms of this Plan and by the terms of the Participation Agreement entered into with respect to this Plan by the Company and such employee pursuant to Section 1.4 hereof.
            1.4     Participation Agreement.  As a condition to the commencement of participation in this Plan, each employee approved for
participation must enter into an agreement covering such employee’s participation (a “Participation Agreement”) which agreement shall be executed by the Sponsor and such employee and, if such employee is employed by an Affiliated
Company, such Affiliated Company.  Each Participation Agreement shall include such terms and conditions related to the employee’s participation in the Plan as the Committee may deem appropriate.
           1.5     Applicability of ERISA.  This Plan is intended to be a “top-hat” plan -- that is, an unfunded plan maintained
primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees within the meaning of ERISA.  As such, the Plan is exempt from the participation and vesting requirements of Part 2 of
Title I of ERISA, the funding requirements of Part 3 of Title I of ERISA, and the fiduciary responsibility provisions of Part 4 of Title I of ERISA.

  ARTICLE II
  DEFINITIONS
            2.1     Account.  “Account” shall mean one of the separate Accounts maintained by the Committee pursuant to the
provisions of Section 5.1.
            2.2     Active Participant.  “Active Participant” shall mean a
Participant whose participation in this Plan has been approved pursuant to the provisions of Section 1.3, who has entered into a Participation Agreement pursuant to the provisions of Section 1.4, and whose active participation in the Plan has not
been terminated pursuant to the provisions of Section 3.5.
            2.3     Affiliated Company. 
“Affiliated Company” shall mean any of the following affiliates of the Sponsor which the Board expressly designates as having the status of an Affiliated Company for purpose of this Plan:  (a) any corporation which is included in a
controlled group of corporations, within the meaning of Section 414(b) of the Code, of which controlled group the Sponsor is also a member; (b) any trade or business which is under common control with the Sponsor within the meaning of Section 414(c)
of the Code; (c) any service organization that is included in an affiliated service group, within the meaning of Section 414(m) of the Code, of which affiliated service group the Sponsor is also a member; (d) any other entity required to be
aggregated with the Sponsor pursuant to regulations promulgated under Section 414(o) of the Code and (e) any other entity or entities which are designated by the Board as Affiliates as listed on Exhibit A hereto and which adopt this
Plan.
           2.4     Beneficiary.  “Beneficiary” shall mean, with respect to any Participant, the
person or persons and/or entity or entities designated or deemed designated by the Participant pursuant to Section 12.1 hereof to receive such Participant’s Distributable Benefit payable under the Plan following such Participant’s
death.
            2.5     Board; Board of Directors.  “Board” and “Board of Directors”
shall mean the board of directors of the Sponsor.
            2.6     Bonuses.  “Bonuses” shall mean
bonus compensation which a Participant is entitled to receive from the Company, including but not limited to bonus compensation based on the performance of Sponsor and certain affiliates of Sponsor, such as bonuses to which a Participant may be
entitled under an incentive plan.  Bonuses shall not include any amounts not currently includible in such Participant’s gross income by reason of Code Section 402(e)(3) and/or Code Section 125.
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            2.7     Bonus Deferrals.  “Bonus Deferrals” shall mean Bonuses
deferred at the election of the Participant pursuant to a Compensation Deferral Agreement under the provisions of Article IV.
            2.8     Code.  “Code” shall mean the Internal Revenue Code of 1986, as amended.
            2.9     Commissions.  “Commissions” shall mean fees paid to salespersons as compensation for their services as
specified by the Company on its payroll records.  Commissions shall not include any amounts not currently includible in such Participant’s gross income by reason of Code Section 402(e)(3) and/or Code Section 125.
           2.10   Commission Deferrals.  “Commission Deferrals” shall mean Commissions deferred at the election of the Participant
pursuant to a Compensation Deferral Agreement under the provisions of Article IV.
            2.11   Committee. 
“Committee” shall mean, as of any date of reference, the committee, if any, then authorized and appointed to administer this Plan as set forth in Section 3.1 hereof.
            2.12   Company.  “Company” shall mean the Sponsor or an Affiliated Company.  A reference to the term “Company”
shall be deemed to be (a) a reference to the Sponsor with respect to Participants who are employees of the Sponsor and (b) a reference to an Affiliated Company with respect to Participants who are employees of such Affiliated Company.
 
          2.13   Compensation.  “Compensation” shall mean the aggregate of Salary, and Bonuses and Commissions, including
any amounts not currently includible in such Participant’s taxable income by reason of Code Section 402 or Code Section 125.
            2.14   Compensation Deferrals.  “Compensation Deferrals” shall mean the Compensation amounts deferred at the election of the
Participant pursuant to a Compensation Deferral Agreement under the provisions of Article IV (including Bonus Deferrals, Salary Deferrals and Commission Deferrals).
            2.15   Compensation Deferral Agreement.  “Compensation Deferral Agreement” shall mean the agreement entered into by a Participant
to defer Compensation pursuant to the provisions of Sections 4.2.
            2.16   Disability.  “Disability”
is deemed to exist, with respect to a Participant, if and when, as a result of injury or sickness, the Participant is permanently impaired to such an extent that he or she cannot perform the material duties of his or her position of employment with
the Company.  The determination hereunder as to whether and when a Participant has a Disability shall be made by the Committee, and for purposes of assisting the Committee in making any such determination, the Committee may require the

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  Participant to submit to an examination by a competent physician or medical clinic selected by the Committee.
            2.17   Distributable Benefit.  “Distributable Benefit” shall mean the vested interest of a Participant in his or her Account,
which is determined and distributable to the Participant in accordance with the provisions of Articles V, VI, VIII and XI.
            2.18   Early Retirement.  “Early Retirement” shall mean retirement from service for the Sponsor and all Affiliates on or after
the date that the sum of the Participant’s age plus Years of Service equals or exceeds 65.
            2.19   Effective
Date.  “Effective Date” shall mean January 1, 2000.
            2.20   ERISA.  “ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended.
            2.21   Investment. 
“Investment” shall mean the one or more funds under one or more variable life insurance contracts or one or more mutual funds (or any other investment) deemed suitable by the Committee for purposes of determining the investment experience
adjustments that shall be made to a Participant’s Account pursuant to the provisions of Section 5.4.
            2.22   Normal Retirement.  “Normal Retirement” shall mean retirement from service for the Sponsor and all Affiliates on or after
the date that the Participant attains age 65.
            2.23   Participant.  “Participant” shall mean any
employee of the Company who is selected and approved for participation in this Plan as provided in Section 1.3 hereof and who has executed a Participation Agreement as required under Section 1.4 hereof.
           2.24   Plan Year.  “Plan Year” shall mean January 1 through December 31.
            2.25   Salary.  “Salary” shall mean, with respect to any Participant, the base salary which such Participant is entitled to
receive from the Company, excluding any amounts not currently includible in such Participant’s gross income by reason of Code Section 402(e)(3) and/or Code Section 125.  Salary shall not include any Bonuses or Commissions which a
Participant is entitled to receive from the Company.
            2.26   Salary Deferrals.  “Salary Deferrals”
shall mean Salary amounts deferred at the election of the Participant pursuant to a Compensation Deferral Agreement under the provisions of Article IV.
            2.27   Sponsor.  “Sponsor” shall Impac Funding Corporation, a California corporation.
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            2.28   Termination.  “Termination” shall mean the voluntary or involuntary
termination of a Participant’s employment with the Sponsor and all Affiliated Companies for any reason (including Disability or death).
            2.29   Valuation Date.  “Valuation Date” shall mean the last of each calendar quarter which is also a business day, as of which
the fair market value of Participants’ Accounts shall be determined.
            2.30   Year of Service.  “Year
of Service” shall mean any completed 12 month Period of Service including periods prior to the Effective Date.  A Period of Service begins on the date an employee first performs an hour of service and ends on the date his or her employment
ends.  Employment ends on the date that the employee quits, retires, is discharged, dies or (if earlier) the first anniversary of his or her absence for any other reason.  Any Period of Service less than 12 months shall be
disregarded.
 5

  ARTICLE III
  ADMINISTRATION OF THE PLAN
            3.1     Administration By Committee.  This Plan shall be administered by a committee composed of at least four (4) individuals
appointed from time to time by the Board (the “Committee”); provided, however, that if the Board does not appoint a committee, the Board shall constitute the Committee.  Any member of the Board or the Committee may be a Participant in
this Plan, provided, however, that any action to be taken by the Board or Committee solely with respect to the particular interest in this Plan of a Board or Committee member who is also a Participant in this Plan shall be taken by the remaining
members of the Board or Committee.  Notwithstanding the foregoing, in the event of a Change in Control of the Sponsor, the members of the Committee shall be elected pursuant to a majority vote of the Participants.  Each Participant shall
have one vote in any such election, regardless of the value of their Accounts.  An election to appoint new Committee members following a Change in Control of the Sponsor shall be held by the Committee within 60 days of the date of such Change
in Control pursuant to procedures established by the Committee.  At a minimum, such procedures shall provide that Participants shall have the right to submit written nominations of one or more persons to serve on the new Committee and all
Participants shall be provided with written notice of any such election at their last known residence at least 30 days before the date of the election.
            3.2     Board and Committee Authority; Rules and Regulations.  The Committee shall have discretionary authority to (a) make,
amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan, and (b) decide or resolve, in its discretion, any and all questions, including interpretations of the Plan, as may arise in connection with the
Plan.  The Committee shall have authority to take or approve, in its discretion, all such actions in relation to the Plan (including, without limitation, actions described in the preceding sentence) as may be taken or approved by the Board;
provided, however, that, except as provided in Section 8.2, the Committee shall have no authority to (a) amend, suspend or terminate the Plan or (b) to designate or remove a Company from the list of Affiliates authorized to participate in the
Plan.  Notwithstanding the foregoing, but subject to the provisions of Section 8.2, the Board may, by written notice to the Committee, withdraw all or any part of the Committee’s authority at any time, in which case such withdrawn
authority shall immediately revest in the Board.  The decision or action of the Committee in respect of any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and
regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Plan.
           3.3     Appointment of Agents.  In the administration of the Plan, the Board and/or the Committee may from time to time employ
agents (which may include officers and/or employees of the Sponsor or any Affiliated Company) and delegate to them such 
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  administrative duties as it sees fit and may from time to time consult with counsel who may be counsel to the Sponsor or any Affiliated Company.
            3.4     Reports.  Within a reasonable amount of time following each calendar quarter, the Committee shall cause to be given to
each Participant a statement showing the dollar amount of his or her Account under the Plan as of the end of such calendar quarter.
            3.5     Termination of Active Participation.  In the event that the Committee determines that a Participant’s employment
performance is no longer at a level which merits continued active participation in the Plan, the Committee may terminate such Participant’s active participation in the Plan (without necessarily terminating such Participant’s employment) as
of the date specified by the Committee.  After the effective date of a Participant’s termination of active participation in the Plan, such Participant shall not be eligible to make Compensation Deferrals under the Plan nor shall such
Participant be entitled to have credited to his or her Account Compensation Deferrals pursuant to the provisions of Section 5.2; nevertheless, such a Participant shall be entitled to have his or her Account adjusted as provided in Section 5.3
hereof.
            3.6     Leave of Absence.  In the event the Participant takes a leave of absence from
active employment with the Sponsor and all Affiliated Companies, the Committee shall determine, in its discretion, whether such leave of absence shall be deemed to constitute, a Termination for purposes of the Plan.
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  ARTICLE IV
  COMPENSATION DEFERRALS
 AND COMPANY CONTRIBUTIONS
            4.1     Eligibility to Make Compensation Deferrals.  Subject to the limitations of this Article IV, each employee who,
as of the last day of the Plan Year immediately preceding the Plan Year for which an eligibility determination is being made (the “Determination Date”), meets at least one of the following requirements, shall be eligible to enter into a
Compensation Deferral Agreement to make Compensation Deferrals and become a Participant, effective as of first day of the Plan Year:

	  
 	            (a)     The employee is designated as, and performs the functions of an officer of the
Company having the rank of at least a Vice President and the employee’s annual base salary as of the Determination Date was at least the greater of:  (i) $80,000 or (ii) the amount specified in Section 414(q)(1)(B)(i) of the Internal
Revenue Code; or
 
	  
 	  
 
	  
 	            (b)     The employee is designated as, and performs the functions of an officer of the
Company having the rank of at least a Vice President and the employee’s Compensation actually received in the calendar year ending on the Determination Date was at least the greater of:  (i) $80,000 or (ii) the amount specified in Section
414(q)(1)(B)(i) of the Internal Revenue Code.
 

            4.2     Election to Make Compensation
Deferrals.

	  
 	           (a)     Salary Deferrals.  Each Active Participant who desires to make Salary
Deferrals for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of Salary for such year to be deferred (stated in terms of a whole percentage of Salary not to exceed 50%) and such other information as
the Committee shall determine.  The amount of Salary Deferrals elected for a Plan Year shall not be less than 5% of Salary.
 
	  
 	  
 
	  
 	            (b)     Monthly Bonus/Commission Deferrals.  Each Active Participant who desires
to make Deferrals of monthly Bonuses or Commissions for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of monthly Bonuses or Commissions for such year to be deferred (stated after in terms of a
whole percentage of Bonus or Commission Deferrals not to exceed 100%) and such other information as the Committee shall determine.  The amount of monthly Bonus or Commission Deferrals elected for a Plan Year shall not be less than 5% of monthly
Bonuses or Commissions.
 

  8

	  
 	            (c)     Quarterly Bonus/Commission Deferrals.  Each Active Participant who
desires to make Deferrals of quarterly Bonuses or Commissions for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of quarterly Bonuses or Commissions for such year to be deferred (stated in terms of
a whole percentage not to exceed 100%) and such other information as the Committee shall determine.  The amount of quarterly Bonus or Commission Deferrals elected for a Plan Year shall not be less than 5% of quarterly Bonuses or
Commissions.
 
	  
 	  
 
	  
 	           (d)     Annual Bonus/Commission Deferrals.  Each Active Participant who desires
to make Deferrals of annual Bonuses or Commissions for a Plan Year shall enter into a Compensation Deferral Agreement for such year specifying the amount of annual Bonuses or Commissions for such year to be deferred (stated in terms of a whole
percentage not to exceed 100%) and such other information as the Committee shall determine.  The amount of annual Bonus or Commission Deferrals elected for a Plan Year shall not be less than 5% of annual Bonuses or Commissions.
 
	  
 	  
 
	  
 	            (e)     Procedures.  A Compensation Deferral Agreement under this Section 4.2
shall not be effective unless it is executed by the Participant and returned to the Committee before the first day of the first Plan Year with respect to which the Agreement relates.  Once executed, a Compensation Deferral Agreement shall
remain in effect for all subsequent Plan Years unless revoked or modified in writing by the Participant before the first day of the Plan Year for which the revocation or modification is to take effect.  An election to make Compensation
Deferrals for a Plan Year (including a failure to revoke or modify a prior election in a timely manner), shall be irrevocable after the beginning of the Plan Year with respect to which the election relates.  A Participant’s failure to
revoke or modify his original deferral election in writing before the first day of the following Plan Year shall constitute a waiver by the Participant of the Participant’s right to elect a different deferral amount and shall constitute an
election to make deferrals as previously elected and shall apply as of the new Plan Year.
 

           4.3     Continuing Participation.  Once an employee becomes eligible to participate in the Plan, the employee shall continue to
be eligible to participate in the Plan until eligibility for participation is terminated as provided in Section 3.5.
            4.4     No Deferrals After a Termination.  No Compensation Deferrals shall be made after a Participant terminates employment with
the Company.
            4.5     Spousal Consent.  Compensation Deferrals under this Article IV shall not be
subject to the consent of the Participant’s spouse, if any.
            4.6     Withholding.  No deferral
election shall reduce a Participant’s compensation below the amount necessary to pay any applicable employment taxes on amounts deferred, 
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  any income tax applicable to compensation that is not deferred or any amount required to be withheld to fund any other benefit or plan of the Company.
            4.7     Company Contributions.  Each participating Company may, in its sole discretion, make a Company Contribution to
the Plan in such amount as the Company, in its sole discretion determines.  Company Contributions shall be allocated among the Accounts of Participants as specified by each Company in its sole discretion.
            4.8     Special Provisions for 2000 Salary Deferrals.  Notwithstanding the requirement of Section 4.2 that elections to defer
Compensation must be made before the first day of the Plan Year, Participants shall be permitted to make Compensation Deferrals for the period beginning on February 1, 2000 and continuing through December 31, 2000 (the “2000 Deferral
Period”) pursuant to this Section 4.8.  A Compensation Deferral Agreement under this Section 4.8 shall not be effective unless it is executed by the Participant and returned to the Committee before January 25, 2000.  A
Participant’s election to make Compensation Deferrals for the 2000 Deferral Period shall be irrevocable after January 25, 2000.
 10

  ARTICLE V
  ACCOUNTS; VALUATION OF ACCOUNTS; VESTING
            5.1     Separate Accounts for Participants.  The Committee shall have the responsibility to keep separate Accounts for each
Participant in accordance with the provisions of this Article V reflecting amounts credited to the Participant under the Plan (subject to the restrictions set forth in Section 9.1 below).  Each Participant’s Account shall represent a
book reserve in the name of the Participant.
            5.2     Crediting of Compensation Deferrals to
Participants’ Accounts.  All Compensation Deferrals and all Company Contributions made for a particular year shall be credited to separate Accounts (the “Compensation Deferral Account “and the “Company Contribution
Account”) for each Participant by whom such deferrals are made.
            5.3     Adjustments for Investment
Experience.  Each Participant’s Account(s) shall be adjusted as of each Valuation Date.  The adjustments made shall be those adjustments reflecting income, gains and losses that would have been made to the Participant’s
Account(s) had the dollar value of the Account been invested in the Investments selected by the Participant pursuant to the provisions of Section 5.4.
            5.4     Designation of Investments.  For purposes of determining the adjustments for investment experience set forth in Section
5.3 above, the dollar value of each Participant’s Account(s) shall be deemed to be invested in accordance with the Participant’s investment designation in one or more Investments established by the Committee pursuant to rules established
by the Committee.  The Committee may, at its discretion, establish alternative Investments or eliminate any previously established Investments at any time and from time to time.  In accordance with rules established by the Committee, each
Participant may elect the Investment in which his or her Account is deemed invested.
           5.5     Valuation of
Accounts.  A Participant’s Account(s) under the Plan shall be valued by the Committee as of each Valuation Date.  A Participant’s Account(s) shall be calculated by starting with the balance of the Account as of the prior
Valuation Date (assuming a $0 balance for the initial Valuation Date) and by (a) adding to the Participant’s Account those amounts, if any, credited to the Account of such Participant under Section 5.2 above since the last Valuation date, (b)
making the adjustments to such Participant’s Account set forth in Section 5.3 above since the last Valuation Date, and (c) subtracting the aggregate amount of distributions or withdrawals made since the last Valuation Date to or with respect to
such Participant.
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            5.6     Vesting of Accounts.  Participant Accounts shall vest in accordance
with the following provisions:

	  
 	            (a)     Compensation Deferrals Account.  A Participant shall be fully vested at
all times in the amount of their Compensation Deferrals Account.
 
	  
 	  
 
	  
 	            (b)     Company Contributions Account.  A Participant’s Company
Contributions Account shall become fully vested upon the Participant’s Early Retirement, Normal Retirement, death or Disability while employed by the Company or upon a Change in Control as defined in Article XI.  In addition, a
Participant’s Company Contributions Account shall become vested in accordance with the following schedule:
 

 

	   
 	  Years of Participation
 	   
 	  Vested Percentage
 	  
 
	   
 	 
 	   
 	 
 	  
 
	   
 	  Less than 3
 	  
 	  0
 	  %
 
	   
 	  3 or more
 	  
 	  100
 	  %
 

 

	  
 	            (c)     Year of Participation.  For purposes of this Section 5.6(b), a
“Year of Participation” shall be defined as a twelve consecutive month period beginning on the date that the Company Contribution is approved by the Board of Directors of the Company electing to make a Company Contribution and ending on
the anniversary of such date.  No credit shall be given for partial years of participation.
 

           5.7     Forfeitures.  Any amounts not vested at the time of a Participant’s Termination or upon termination of the Plan as
provided in Section 8.1 shall be forfeited.
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  ARTICLE VI
  BENEFITS
            6.1     Eligibility.  Any Participant who incurs any Termination shall receive his or her Distributable Benefit in an amount
equal to the vested balance of the Participant’s Accounts as of the Valuation Date immediately following such Termination.  Except as otherwise provided in Article XI hereof, a Participant’s Distributable Benefit shall be paid at the
times and in the amounts specified in this Article VI.  A Participant’s Distributable Benefit shall be paid (or commenced to be paid) within 30 days after the first Valuation Date following such Termination or as soon as practicable
thereafter.
            6.2     Form of Plan Benefit.  Any Participant or Beneficiary who is entitled to
receive his or her Distributable Benefit shall receive such Benefit in the form of a lump sum payment unless (a) the value of the Participant’s Accounts exceeds $100,000 in the aggregate, and (b) the Participant elects in accordance with the
provisions of Section 6.3 to have his or her Distributable Benefit paid in substantially equal annual payments payable over fifteen (15) years.  In the event a Participant elects to have his or her Distributable Benefit paid in substantially
equal annual payments, the investment experience adjustments set forth in Section 5.3 shall continue to be made to the Participant’s Account until the final payment is made to the Participant, reducing his or her Account balance to
zero.
            6.3     Election of Form of Benefit.  A Participant shall elect the form in which his or her
Distributable Benefit will be paid in the event of a Termination on account of Early Retirement, Normal Retirement, death, or Disability in his or her Initial Participation Agreement.  Except to the extent that the Participant qualified for a
Hardship Withdrawal as provided in Section 6.4 or elects a Short Term Pay-Out as provided in Section 6.5, the Participant’s election as to the timing and form of distribution that is made on the Participant’s Initial Participation
Agreement shall apply to all subsequent Compensation Deferrals and shall be irrevocable once made.
           6.4     Hardship Withdrawals.  A Participant may withdraw from his or her Compensation Deferral Account Participant Deferrals
previously made, but only if the Committee determines that the Participant has an unforeseeable emergency and that a withdrawal is reasonably necessary in order to satisfy the emergency need.

	  
 	            (a)     An “unforeseeable emergency,” as used in this Section 6.4, shall mean
severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
 

  13

	  
 	            (b)     The determination as to whether a withdrawal is reasonably necessary to
satisfy an unforeseeable emergency need is to be made on the basis of all relevant facts and circumstances.  However, a withdrawal shall be necessary in order to satisfy an immediate and heavy financial need only if:
 
	  
 	  
 
	  
 	  
 	            (i)     The amount of the withdrawal is not in excess of the amount required to
relieve the emergency need or in excess of the amount that such need could not be satisfied from other sources that are reasonably available to the Participant.  The amount of any hardship withdrawal may include any amounts necessary to pay
federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution.
 
	  
 	  
 	  
 
	  
 	  
 	           (ii)     The Participant submits a signed statement to the Committee, on which
the Committee can reasonably rely, to the extent that the need cannot be relieved:
 
	  
 	  
 	  
 
	  
 	  
 	            (I)     Through reimbursement or compensation by insurance or otherwise;
 
	  
 	  
 	  
 
	  
 	  
 	            (II)     By reasonable liquidation of the Participant’s assets, to the extent such
liquidation would not itself cause an immediate and heavy financial need;
 
	  
 	  
 	  
 
	  
 	  
 	            (III)     By cessation of deferrals under the Sponsor’s Retirement Savings Plan;
or
 
	  
 	  
 	  
 
	  
 	  
 	           (IV)     By other withdrawals, distributions or nontaxable loans from any plan maintained by
the Company or any other employer, or by borrowing from commercial sources on reasonable commercial terms.
 
	  
 	  
 	  
 
	  
 	  
 	            (iii)     A Participant’s resources shall be deemed to include those assets
of his or her spouse and minor children that are reasonably available to the Participant.
 
	  
 	  
 	  
 
	  
 	  
 	            (iv)     A Participant who makes a hardship withdrawal pursuant to this Section
6.4 shall not be eligible to make Compensation Deferrals for the taxable year of the Participant immediately following the taxable year of such hardship withdrawal.
 
				

            6.5     Short Term Pay-Outs.  A Participant may designate in advance on his
or her Compensation Deferral Agreement the time and amount of one or more withdrawals of Compensation Deferrals (but not investment earnings thereon) from his or her Account, subject to the following rules:  (a) A Participant may designate a
time for withdrawal not earlier than two years after the year that Compensation was deferred under such 
 14

  Compensation Deferral Agreement which otherwise would have been paid absent the deferral election (such amount to be designated as payable after 2, 3, 5 or 10 years); and (b)
such election shall be irrevocable.  Notwithstanding a Participant’s election to receive a Short Term Pay-Out in a particular dollar amount, the maximum amount payable as a Short Term Pay-Out shall be limited to the lesser of (a) the
account balance of the Participant’s Compensation Deferrals Account or (b) the dollar value of the Compensation Deferrals with respect to the Plan Year for which the Deferral was elected, each determined as of the Valuation Date preceding the
payment of such Short Term Pay-Out.
            6.6     Disputes.  In the event of a dispute between a
Participant and the Company concerning the amount of the Participant’s Distributable Benefit, the claims procedures and mandatory arbitration provisions of Article VII shall apply.
            6.7     Lump Sum Payment of Withdrawals.  All Short Term Pay-Outs shall be paid to Participants as soon as reasonably practicable
following the approval by the Committee of a properly completed withdrawal request.  All Short Term Pay-Outs shall be made in a single lump sum payment in cash.
            6.8     Lump Sum Payment Upon Termination of Plan.  Upon a termination of the Plan pursuant to Section 8.1 or Section 8.2, all
Distributable Benefits shall be paid to Participants (including Participants receiving installment payments), in the form of a single lump sum payment in cash within 30 days after the first Valuation Date following termination of the Plan, or as
soon as practicable thereafter.
  15

  ARTICLE VII
 APPLICATION FOR BENEFITS
            7.1     Initial Application.  In order for a Participant to receive or commence receiving his or her Distributable Benefit, such
Participant (or, in the case of a Participant who incurs a Termination by reason of death, the Participant’s Beneficiary) must file a written application for such Plan benefit (an “Initial Application for Benefits”) with the
Committee.  The Initial Application for Benefits shall contain at least the following information:

	  
 	            (a)     The Participant’s name;
 
	  
 	  
 
	  
 	            (b)     The Participant’s date of Termination and the reason for such Termination (that
is, whether such Termination is on account of the Participant’s death, Disability or Retirement);
 
	  
 	  
 
	  
 	            (c)     A brief statement setting forth the basis (with references to pertinent Plan
provisions where applicable) of the Participant’s claim for his or her Distributable Benefit; and
 
	  
 	  
 
	  
 	            (d)     Such other documents and information as the Committee may reasonably
require.
 

 Notwithstanding the foregoing, if the Committee determines, based on such evidence as it deems appropriate, that a Participant has incurred Termination (or that the
Plan has been terminated) and that such Participant (or other person claiming benefits with respect to such Participant) would be entitled, but for the failure to file an application for benefits, to commence receiving benefit payments under this
Plan, then the Committee may, in its discretion, deem an application for such benefits to have been filed.
            7.2     Action on Applications.  At such time as the Committee receives any Initial Application for Benefits (hereinafter shall
be referred to as a “Claim,” and the person filing any Claim shall be referred to hereinafter as a “Claimant”), the Committee shall review the Claim, together with other pertinent information (including any additional information
the Committee may reasonably request from the Claimant), and shall allow or deny the Claim.  The Committee shall provide written notice to the Claimant of the Committee’s decision to allow or deny the Claim (a “Notice of Action on
Claim”) within 60 days after the Committee receives the Claim.  If the Claim is denied, the Notice of Action on Claim shall include the following information:

	  
 	           (a)     The specific reasons for the denial;
 

 
16

	  
 	           (b)     Specific reference to pertinent Plan provisions on which the denial is based;

	  
 	  
 
	  
 	          (c)     If applicable, a description of any additional information or material necessary to perfect
the Claim, and an explanation of why such information or material is necessary; and
 
	  
 	  
 
	  
 	           (d)     An explanation of the claims review procedure.
 

            7.3     Review Procedure.

	  
 	            (a)     A Claimant is entitled to request the Committee to review any denial by the
Committee of his or her Claim.  The request for review must be submitted in writing to the Committee within 60 days after the date the Notice of Action on Claim is deemed given pursuant to Section 12.6 hereof.  If the Claimant fails to
make a timely request for review, the Claim will be deemed conclusively to be denied.  The Claimant or his or her representative shall be entitled to review all pertinent documents and to submit relevant issues and comments to the Committee in
writing.
 
	  
 	  
 
	  
 	            (b)     The Committee shall review the Claim and shall render the final decision to allow or
deny the Claim.  The Committee shall give written notice of its decision to the Claimant within 60 days after it receives the written request for review.  If the Claim is denied, such written notice shall recite the facts on which the
Committee based its decision as well as its reasons therefor, with specific reference to pertinent Plan provisions where applicable.
 

           7.4     Mandatory Arbitration.  Following exhaustion of all administrative remedies as described in Sections 7.1-7.4, above, in
the event of any unresolved dispute under the provisions of this Plan, such dispute shall be submitted to arbitration in accordance with the provisions of Section 12.12 of the Plan.
            7.5     Claims By Representative.  In the event that any person who is entitled (or required) to file a Claim under this Article
VII is deceased or is mentally or physically incapacitated in a manner that prevents such person from filing such Claim, then such Claim may be filed by another person on behalf of such Claimant, subject to such other person’s providing to the
Committee or Committee, as applicable, reasonable verification of such other person’s authorization to act on the Claimant’s behalf.
  17

  ARTICLE VIII
  CHANGES TO THE PLAN
            8.1     Termination, Suspension or Amendment of Plan by Board.  Subject to the provisions of Section 8.2, the Board may, in its
sole discretion, terminate or suspend this Plan at any time or from time to time, in whole or in part, and, except as otherwise provided by the Board, no further Compensation Deferrals or Company Contributions shall be credited to Participants’
Accounts as of the date of such termination or suspension.  Subject to the provisions of Section 8.3, the Board may amend this Plan at any time or from time to time, and any amendment may provide benefits different in kind and/or amount from
those herein set forth.  Notwithstanding the foregoing, in the case of any termination, suspension or amendment of this Plan, such termination, suspension or amendment shall not adversely affect (a) the Account balance of any such Participant
as of the effective date of such termination, suspension or amendment, (b) the Participant’s right to the investment experience adjustments after any suspension or amendment pursuant to the provisions of Section 5.3, (c) the Participant’s
right to investment experience adjustments after termination of the Plan, up to and including the effective date of such termination, pursuant to the provisions of Section 5.3, or (d) the right or ability of any such Participant (and, if applicable,
such Participant’s Beneficiary) to receive his or her vested Distributable Benefit in accordance with the terms of this Plan as in effect immediately prior to such termination, suspension or amendment.  Any termination, suspension or
amendment of this Plan by the Board shall be binding on each Affiliated Company, without further action by any such Affiliated Company.
           8.2     Termination of Plan Upon a Change in Control.  Notwithstanding the provisions of Section 8.1 of the Plan, upon the
occurrence of a Change in Control, the Committee may, in its sole discretion, elect to terminate all or a portion of this Plan, in which case no further Compensation Deferrals or Company Contributions shall be credited to Participants’ Accounts
as of the date of such termination and benefits shall be paid out as soon as practicable thereafter as provided in Section 6.8.  In the case of any termination of the Plan by the Committee, such termination shall not adversely affect (a) the
Account balance of any such Participant as of the effective date of such termination, (b) the Participant’s right to investment experience adjustments after termination of the Plan, up to and including the effective date of such termination,
pursuant to the provisions of Section 5.3, or (c) subject to the provisions of Section 6.8, the right or ability of any such Participant (and, if applicable, such Participant’s Beneficiary) to receive his or her vested Distributable Benefit in
accordance with the terms of this Plan as in effect immediately prior to such termination.  Any termination of this Plan by the Committee pursuant to this Section 8.2 shall be binding on each Affiliated Company, without further action by any
such Affiliated Company.
  18

            8.3     Amendment of Plan Following a Change in Control.  Notwithstanding the
provisions of Section 8.1 of the Plan, upon the occurrence of a Change in Control of the Sponsor, if the Committee does not terminate the Plan as provided in Section 8.2, the Plan shall continue in force as provided in Section 12.4: provided,
however, that for a period of 24 months following the date of a Change in Control of the Sponsor, no amendment to the Plan shall be effective unless such amendment is consented to in writing by a majority of Plan Participants pursuant to procedures
established by the Committee.
  19

 ARTICLE IX
  FUNDING
            9.1     In General.  Benefits under this Plan shall be payable solely from the general assets of the Sponsor (and, with respect
to any Participant who is an employee of an Affiliated Company, also from the general assets of such Affiliated Company), and no person shall be entitled to look to any other source for payment of such benefits.  The Sponsor (and, if
applicable, any Affiliated Company) shall have and possess all title to, and beneficial interest in, any and all funds or reserves maintained or held by the Sponsor (or such Affiliated Company) on account of any obligation to pay benefits as
required this Plan, whether or not earmarked as a fund or reserve for such purpose; any such funds, other property or reserves shall be subject to the claims of the creditors of the Sponsor (or such Affiliated Company), and the provisions of this
Plan are not intended to create, and shall not be interpreted as vesting, in any Participant, Beneficiary or other person, any right to or beneficial interest in any such funds, other property or reserves.  Nothing in this Section 9.1 shall be
construed or interpreted as prohibiting or restricting the establishment of a grantor trust (within the mean of Code Section 671) from which benefits under this Plan may be payable, so long as such trust or contract does not cause the plan to be
funded for purposes of Sections 201(a), 301(a)(3) or 401(a)(1) of ERISA.
            9.2     Establishment of Rabbi
Trust.  The Sponsor has established (or will establish) a trust (“Trust”) substantially in the form attached hereto as Exhibit B for the purpose of funding benefits under this Plan as provided in this Article IX and for the
purpose of paying the reasonable legal and administration fees and expenses incurred by Participants and their Beneficiaries in connection with lawsuits, actions or other proceedings brought by such persons to enforce their rights under the
Plan.
            9.3     Funding of Rabbi Trust.  Subject to the amendment or termination of this Plan and the
restrictions set forth in Section 9.1, the Company shall contribute to the Trust, on behalf of each Participant, the amount of Compensation Deferrals made by such Participant and the amount of any Company Contribution allocated to such
Participant’s Account.  Amounts corresponding to Salary Deferrals for each payroll period shall be contributed to the Trust as soon as reasonably practicable following the end of such payroll period.  Bonus Deferrals for a Plan Year
shall be contributed to the Trust as soon as reasonably practicable following the date on which such Bonus amounts otherwise would have been paid to the Participant.
 20

  ARTICLE X
  AFFILIATED COMPANIES
            10.1   Affiliated Company Participation.  The Board of Directors may revoke or modify an Affiliated Company’s participation in this
Plan at any time and for any or no reason, or terminate this Plan with respect to such Affiliated Company’s employees and Participants, subject to the provisions of Section 8.1 concerning changes in the Plan.
            10.2   Adoption Agreement.  Any Affiliated Company participating in the Plan shall adopt the Plan and shall agree to be bound by the terms
and conditions of the Plan and any future changes made by the Board to the Plan.
  21

  ARTICLE XI
  CHANGE IN CONTROL
            11.1   Change in Control.  As used in this Plan, “Change in Control” shall mean the following and shall be deemed to occur if any
of the following events occur:

	  
 	            (a)     Any “person,” as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Impac Mortgage Holdings
Company (the “Parent”) representing 50% or more of the combined voting power of the Parent’s then outstanding voting securities.
 
	  
 	  
 
	  
 	           (b)     Any “person,” as such term is used in Sections 13 (d) and 14(d)
of the Exchange Act, other than any person who were the beneficial owners of securities of Impac Funding Corporation, a California corporation, as January 1, 2000, or a direct or indirect subsidiary of Parent (“Parent Subsidiary”), is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the 50% or more of the combined voting power of Sponsor’s then outstanding voting securities).
 
	  
 	  
 
	  
 	            (c)     During any period of two consecutive years, individuals who, as of the
beginning of such period, constitute the Parent’s Board of Directors (the “Parent’s Incumbent Board”) cease for any reason to constitute at least a majority of the Parent’s Board of Directors, unless the election, or
nomination for election by the Parent’s stockholders, of each new director is approved by a vote of at least two-thirds of the directors then comprising the Parent’s Incumbent Board.
 
	  
 	  
 
	  
 	            (d)     During any period of two consecutive years, individuals who, as of the
beginning of such period, constitute the Sponsor’s Board of Directors (the “Sponsor’s Incumbent Board”) cease for any reason to constitute at least a majority of the Sponsor’s Board of Directors, unless the election, or
nomination for election by the Sponsor’s stockholders, of each new director is approved by a vote of at least two-thirds of the directors then comprising the Sponsor’s Incumbent Board.
 
	  
 	  
 
	  
 	           (e)     The stockholders of the Parent approve a merger or consolidation of
Parent with any other corporation, other than the following
 
	  
 	  
 
	  
 	  
 	            (i)     A merger or consolidation which would result in the voting securities of the Parent
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities or another entity) more
 

  22

	  
 	  
 	  than 50% of the combined voting power of the voting securities of the Parent or such other entity outstanding immediately after such merger or consolidation; or
 
	  
 	  
 	  
 
	  
 	  
 	            (ii)     A merger or consolidation effected to implement a recapitalization of the Parent
(or similar transaction) in which no person acquires 50% or more of the combined voting power of the Parent’s then outstanding voting securities.
 
	  
 	  
 	  
 
	  
 	           (f)     The stockholders of the Sponsor approve a merger or consolidation of
Sponsor with any other corporation, other than the following
 
	  
 	  
 	  
 
	  
 	  
 	            (i)     A merger or consolidation which would result in the voting securities of the Sponsor
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being 50% of the combined voting power of the voting securities of the Sponsor or such other entity outstanding immediately after such merger or
consolidation); or
 
	  
 	  
 	  
 
	  
 	  
 	            (ii)     A merger or consolidation effected to implement a recapitalization of the Sponsor
(or similar transaction) in which no person acquires 50% or more of the combined voting power of the Sponsor’s then outstanding voting securities; or
 
	  
 	  
 	  
 
	  
 	  
 	            (iii)     A merger or consolidation with a Parent Subsidiary.
 
	  
 	  
 
	  
 	           (g)     The stockholders of Parent approve a plan of complete liquidation of the
Parent or an agreement for the sale or other disposition by the Parent of all or substantially all of the Parent’s assets.
 
	  
 	  
 
	  
 	            (h)     The stockholders of Sponsor approve a plan of complete liquidation of
the Sponsor or an agreement for the sale or other disposition by the Sponsor of all or substantially all of the Sponsor’s assets to a person that is not a Parent Subsidiary.
 

  Notwithstanding the preceding provisions of this Section 11.1, a Change in Control shall not be deemed to have occurred (1) if the “person” described in the preceding provisions of this Section 11.1, is an
underwriter or underwriting syndicate that has acquired the ownership of 50% or more of the combined voting power of the Parent’s then outstanding voting securities solely in connection with a public offering of the Parent’s securities, or
(2) if the “person” described in the preceding provisions of this Section 11.1 is an underwriter or underwriting syndicate that has acquired the ownership of 50% or more of the combined voting power of the Sponsor’s then outstanding
voting securities solely in connection with a public offering of the Sponsor’s securities.  Further, a Change of Control of any one participating Company shall be deemed to be a Change in Control only 
  23

  with respect to employees of that Company and shall not be deemed to be a Change in Control with respect to employees of any other participating Company.
 24

  ARTICLE XII
  MISCELLANEOUS PROVISIONS
            12.1     Designation of Beneficiary.  A Participant shall be entitled to designate one or more individuals or entities (including
a trust or trusts), in any combination, as his or her “Beneficiary” or “Beneficiaries” to receive any Plan benefit payments to which such Participant is entitled as of, or by reason of, his or her death; provided, however, that
the designation of any individual or entity other than the Participant’s spouse shall be effective only with the consent of the Participant’s spouse.  Any such designation may be made or changed at any time prior to the
Participant’s death by written notice filed with the Committee, with such written notice to be in such form and contain such information as the Committee may from time to time determine.  In the event that (a) a Beneficiary designation is
not on file or is not effective at the date of a Participant’s death, (b) no Beneficiary survives the Participant, or (c) no Beneficiary is living at the time any payment becomes payable under this Plan, then, for purposes of making any further
payment of any unpaid benefits under the Plan, such Participant’s Beneficiary or Beneficiaries shall be deemed to be the Participant’s estate.  A Beneficiary entitled to receive any Plan Benefit payments pursuant to this Section 12.1
shall receive such payments at the time(s) and in the manner elected by the Participant in his or her Participation Agreement.
            12.2    Payments During Incapacity.  The Committee shall have no duty or obligation to determine the competence or capacity of any
Participant or Beneficiary.  However, in the event that the Committee is made aware that a Participant (or Beneficiary) is under mental or physical incapacity at the time of any payment to be made to such Participant (or Beneficiary) pursuant
to this Plan, any such payment may be made to the conservator or other legally appointed personal representative having authority over and responsibility for the person or estate of such Participant (or Beneficiary), as the case may be, and for
purposes of such payment references in this Plan to the Participant (or Beneficiary) shall mean and refer to such conservator or other personal representative of the person or estate of the Participant (or Beneficiary), any such payment may be made
to any person or institution that has apparent responsibility for the person and/or estate of the Participant (or Beneficiary) as determined by the Committee.  Any payment made in accordance with the provisions of  this Section 12.2 to a
person or institution other than the Participant (or Beneficiary) shall be deemed for all purposes of this Plan as the equivalent of a payment to such Participant (or Beneficiary), and the Company shall have no further obligation or responsibility
with respect to such payment.
           12.3    Prohibition Against Assignment.  Except as otherwise expressly
provided in Section 12.1 and Section 12.2 hereof, the rights, interests and benefits of a Participant under this Plan (a) may not be sold, assigned, transferred, pledged, hypothecated, gifted, bequeathed or otherwise disposed of to any other party
by such Participant or any Beneficiary, executor, administrator, heir, distribute or other person claiming under such Participant, and (b) shall not be subject to execution, attachment or similar process.  Any 
 
25

  attempted sale, assignment, transfer, pledge, hypothecation, gift, bequest or other disposition of such rights, interests or benefits contrary to the foregoing provisions of
this Section 12.3 shall be null and void and without effect.
            12.4    Assumption of Plan.  The Company
expressly agrees that it shall not merge or consolidate into or with another corporation, or sell substantially all of its assets to another corporation, firm or person until such corporation, firm or person expressly agrees in writing to assume and
discharge the duties and obligations of the Company under this Plan.  The powers, duties, rights and obligations of the Company under this Plan may be assigned (i) to any company into which the Company may be merged, or with which it may be
consolidated, or (ii) to any company resulting from any merger, reorganization or consolidation to which the Company is a party, or (iii) to any company to which the business of the Company may be transferred, to the extent affected
Participants transfer their employment to such company.  If such an assignment occurs, the successor-in-interest to the Company shall assume the powers, duties, rights and obligations of the Company in writing.
            12.5    Binding Effect.  The provisions of this Plan shall be binding upon the Sponsor, the Participants, all Affiliated Companies
employing any Participants, and any successor-in-interest, beneficiary, heir or personal representative to the Sponsor, any Participant or any such Affiliated Company.
           12.6    No Right to Employment.  This Plan is voluntary on the part of the Sponsor and its Affiliated Companies, and shall not be
deemed to constitute an employment contract between any Participant and the Sponsor or any Affiliated Company, nor shall the adoption or existence of the Plan or any provision contained in the Plan be deemed to be a required condition of the
employment of any Participant.  Nothing contained in this Plan shall be deemed to give any Participant the right to continued employment with the Sponsor or any Affiliated Company, and the Sponsor and its Affiliated Companies may terminate any
Participant at any time, in which case the Participant’s rights arising under this Plan shall be only those expressly provided under the terms of this Plan.
            12.7    Notices.  All notices, requests, or other communications (hereinafter collectively referred to as “Notices”)
required or permitted to be given hereunder or which are given with respect to this Plan shall be in writing and may be personally delivered, or may be sent by United States registered mail, postage prepaid, return receipt requested and addressed as
follows:

	  To the Sponsor,
 and Affiliated Company
 or the Committee at:
 	  
 
	  
 	  Impac Funding Corporation
 
	  
 	  1401 Dove Street
 
	  
 	  Newport Beach, CA 92660
 

  26

	 To Participant at:
 	  The Participant’s residential
 mailing address as reflected
 in the Sponsor’s or Affiliated
 Company’s employment records
 

 A Notice which is delivered personally shall be deemed given as of the date of personal delivery, and a Notice mailed as provided herein shall be deemed given on the date received.  Any Participant may
change his or her address for purposes of Notices hereunder pursuant to a Notice to the Committee, given as provided herein, advising the Committee of such change.  The Sponsor, any Affiliated Company and/or the Committee may at any time change
its address for purposes of Notices hereunder pursuant to a Notice to all affected Participants, given as provided herein, advising such Participants of such change.
            12.8    Governing Law.  This Plan shall be governed by, interpreted under and construed and enforced in accordance with the internal
laws, and not the laws pertaining to conflicts or choice of laws, of the State of California applicable to agreements made and to be performed wholly within the State of California.
            12.9    Titles and Headings; Gender of Terms.  Article and Section headings herein are for reference purposes only and shall not be
deemed to be part of the substance of this Plan or in any way to enlarge or limit the meaning or interpretation of any provision in this Plan.  Use in this Plan of the masculine, feminine or neuter gender shall be deemed to include each of the
omitted genders if the context so requires.
            12.10  Severability.  In the event that any provision of this Plan is
found to be invalid or otherwise unenforceable by a court or other tribunal of competent jurisdiction, such invalidity or unenforceability shall not be construed as rendering any other provision contained herein invalid or unenforceable, and all
such other provisions shall be given full force and effect to the same extent as though the invalid and unenforceable provision was not contained herein.
           12.11  Tax Effect of Plan.  Neither the Sponsor nor any Affiliated Company warrants any tax benefit or any financial benefit under this
Plan.  Without limiting the foregoing, the Sponsor and each Affiliated Company and their directors, officers, employees and agents shall be held harmless by the Participant from, and shall not be subject to any liability on account of, any
Federal or State tax consequences or any consequences under ERISA of any determination as to the amount of plan benefits to be paid, the method by which plan benefits are paid, the persons to whom plan benefits are paid, or the commencement or
termination of the payment of plan benefits.
  27

            12.12  Mandatory Arbitration.  In the event of any unresolved dispute between a Participant
or Beneficiary and the Company or the Trustee regarding this Plan, such dispute shall be submitted to arbitration in accordance with the rules and regulations of the American Arbitration Association for the arbitration of employee benefit plan claim
disputes (including the rules contained therein for the selection of an arbitrator who is familiar with employee benefit plans).  The written determination of the arbitrator shall be final, binding and conclusive on the Parties and judgment on
the award rendered by the arbitrator may be entered by any court having jurisdiction thereof.  The prevailing party or parties of any arbitration of legal or equitable proceeding shall be entitled to have and recover his or their attorneys
fees, costs and expenses as determined by the arbitrator.
            IN WITNESS WHEREOF, the Sponsor has caused this Plan to be executed by its
duly authorized officer effective as of the Effective Date hereof.

	  
 	  IMPAC FUNDING CORPORATION
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	 /s/ RON MORRISON
 
	  
 	  
 	 
 
	  
 	 Title:
 	 E.V.P
 

 282002 Stock Plan

  Exhibit 10.15
  GENSTAR THERAPEUTICS CORPORATION
  2002 STOCK PLAN
            1.          Purposes of the
Plan.  The purposes of this 2002 Stock 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 may be Incentive Stock Options or Nonstatutory Stock Options,
as determined by the Administrator at the time of grant.  Stock Purchase Rights may also be granted under the Plan.
           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 or Stock Purchase Rights are, or will be, granted under the Plan.
                         (c)          “Board”
means the Board of Directors of the Company.
                         (d)          “Change in
Control” means the occurrence of any of the following events:
                                      
    (i)          Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of
the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or
                                     
    (ii)          The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets;
                                      
    (iii)          A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent
Directors.  “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a
majority of the Incumbent Directors at the time of such election or nomination (but will 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); or
 
                                    
    (iv)          The consummation of a merger or consolidation of the Company with any other corporation, 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 its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.
                        (e)          “Code”
means the Internal Revenue Code of 1986, as amended.
                         (f)         
 “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.
                         (g)          “Common
Stock” means the common stock of the Company.
                         (h)         
 “Company” means GenStar Therapeutics Corporation, a Delaware corporation.
                         (i)         
 “Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity.
                         (j)         
 “Director” means a member of the Board.
                         (k)         
 “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code.
                         (l)         
 “Employee” means any person, including Officers and Directors, 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.  For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless
reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the 91st day
of such leave any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Non-statutory Stock Option.  Neither service as a Director nor payment of a
director’s fee by the Company shall be sufficient to constitute “employment” by the Company.
                        (m)         “Exchange Act”
means the Securities Exchange Act of 1934, as amended.
                         (n)          “Fair Market
Value” means, as of any date, the value of Common Stock deter-mined as follows:
                                      
    (i)          If the Common Stock is listed on any estab-lished stock exchange or a national market system, including without limitation the Nasdaq National Market or The
Nasdaq
  -2-

   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 on the day 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 day of deter-mination, 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.
                         (o)          “Incentive Stock
Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.
                         (p)          “Nonstatutory
Stock Option” means an Option not intended to qualify as an Incentive Stock Option.
                         (q)          “Notice of
Grant” means a written or electronic notice evidencing certain terms and conditions of an individual Option or Stock Purchase Right grant.  The Notice of Grant is part of the Option Agreement.
                         (r)         
 “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.
                         (s)          “Option”
means a stock option granted pursuant to the Plan.
                        (t)          “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.
                         (u)          “Option
Exchange Program” means a program whereby outstanding Options are surrendered in exchange for Options with a lower exercise price.
                         (v)          “Optioned
Stock” means the Common Stock subject to an Option or Stock Purchase Right.
                         (w)         “Optionee”
means the holder of an outstanding Option or Stock Purchase Right granted under the Plan.
                         (x)          “Outside
Director” means a Director who is not an Employee.
                         (y)          “Parent”
means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.
  -3-

                         (z)          “Plan”
means this 2002 Stock Plan.
                         (aa)        “Restricted Stock”
means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under Section 11 of the Plan.
                         (bb)        “Restricted Stock Purchase
Agreement” means a written agreement between the Company and the Optionee evidencing the terms and restrictions applying to stock purchased under a Stock Purchase Right.  The Restricted Stock Purchase Agreement is subject to the terms
and conditions of the Plan and the Notice of Grant.
                         (cc)        “Rule 16b-3” means
Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.
                         (dd)        “Section 16(b)
“ means Section 16(b) of the Exchange Act.
                         (ee)        “Service Provider”
means an Employee, Director or Consultant.
                         (ff)         “Share” means
a share of the Common Stock, as adjusted in accordance with Section 12 of the Plan.
                        (gg)        “Stock Purchase
Right” means the right to purchase Common Stock pursuant to Section  11 of the Plan, as evidenced by a Notice of Grant.
                         (hh)        “Subsidiary” means
a “subsidiary corporation”, whether now or hereafter exist-ing, 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, the maximum aggregate number of Shares that may be optioned and sold under the Plan is 10,000,000 Shares plus (a) any Shares which have been reserved but not issued under the Company’s Urogen Corp. 1999 Stock Plan (the
“1999 Plan”), the Company’s Urogen Corp. 1995 Stock Plan (the “1995 Plan”) and the Company’s Urogen Corp. 1995 Director Option Plan (the “1995 Director Plan”) as of the date of stockholder approval of this
Plan, (b) any Shares returned to the 1999 Plan, the 1995 Plan and the 1995 Director Plan as a result of termination of options or repurchase of Shares issued under the 1999 Plan, the 1995 Plan and the 1995 Director Plan, and (c) an annual increase
to be added on the first day of the Company’s fiscal year beginning in 2004, equal to the lesser of (i) 500,000 shares, (ii) 2% of the outstanding shares on such date or (iii) a lesser amount determined by the Board.  The
Shares may be authorized, but unissued, or reacquired Common Stock.
                         If an Option or Stock Purchase Right 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); provided,
however, that Shares that have actually been issued under the Plan, whether upon exercise of an Option or Right, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if Shares of
Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan. 
 -4-

             4.          Administration of the Plan. 
 
                       (a)         
 Procedure.
                                      
 (i)          Multiple Administrative Bodies.  Different Committees with respect to different groups of Service Providers may administer the Plan.
                                      
 (ii)         Section 162(m).  To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as “performance-based compensation”
within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.
                                      
 (iii)        Rule 16b-3.  To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the
requirements for exemption under Rule 16b-3.
                                      
 (iv)         Other Administration.  Other than as provided above, 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 discre-tion:
 
                                    
 (i)           to determine the Fair Market Value;
                                      
 (ii)          to select the Service Providers to whom Options and Stock Purchase Rights may be granted hereunder;
                                      
 (iii)         to determine the number of shares of Common Stock to be covered by each Option and Stock Purchase Right granted hereunder;
                                      
 (iv)         to approve forms of agreement for use under the Plan;
                                      
 (v)          to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option or Stock Purchase Right granted hereunder.  Such terms and conditions include,
but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights 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 Stock Purchase Right or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;
                                     
 (vi)         to reduce the exercise price of any Option or Stock Purchase Right to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option or Stock
Purchase Right shall have declined since the date the Option or Stock Purchase Right was granted;
                                      
 (vii)        to institute an Option Exchange Program;
  -5-

                                       
 (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 satisfying applicable
foreign laws;
                                      
 (x)          to modify or amend each Option or Stock Purchase Right (subject to Section 14(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 or Stock Purchase Right that
number of Shares having a Fair Market Value equal to the minimum 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 instru-ment required to effect the grant of an Option or Stock Purchase Right previously granted 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, determina-tions and interpretations shall be final and binding on all Optionees and any other holders of Options or Stock Purchase Rights.
            5.          Eligibility.  Nonstatutory Stock Options and Stock Purchase Rights may be granted
to Service Providers.  Incentive Stock Options may be granted only to Employees.
           6.          Limitations.
                         (a)          Each Option shall be
designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designa-tion, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive
Stock Options are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options.  For purposes
of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted.  The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is
granted.
                         (b)          Neither the Plan nor any
Option or Stock Purchase Right 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. 
  -6-

                          (c)          The following limitations
shall apply to grants of Options:
                                      
 (i)          No Service Provider shall be granted, in any fiscal year of the Company, Options to purchase more than 750,000 Shares.
                                     
 (ii)          In connection with his or her initial service, a Service Provider may be granted Options to purchase up to an additional 2,500,000 Shares, which shall not count against the limit
set forth in subsection (i) above.
                                      
 (iii)         The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 12.
                                      
 (iv)         If an Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in Section 12), the cancelled Option will
be counted against the limits set forth in subsections (i) and (ii) above.  For this purpose, if the exercise price of an Option is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new
Option.
            7.          Term of Plan.  Subject to Section 18of the Plan,
the Plan shall become effective upon its adoption by the Board.  It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 14of the Plan.
            8.          Term of Option.  The term of each Option shall be stated in the Option Agreement.  In
the case of an Incentive Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement.  Moreover, in the case of an Incentive Stock Option granted to an Optionee who, at
the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall
be five (5) years from the date of grant or such shorter term as may be provided 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, subject to the following:
                                      
 (i)           In the case of an Incentive Stock Option
                                      
               (A)          granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of
grant.
                                      
               (B)          granted to any Employee other than an Employee described in paragraph (A) immediately above, the
per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.
  -7-

                                      
 (ii)          In the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the Administrator.  In the case of a Nonstatutory Stock Option intended to
qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.
                                      
 (iii)         Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or
other corporate transaction.
                         (b)          Waiting Period and
Exercise Dates.  At the time an Option is granted, the Administrator shall establish the period within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised. 
Following the initial grant of an Option, the Administrator may, in its discretion, accelerate the time at which an Option (or any part thereof) may be exercised and/or extend the post-termination exercisability period of an Option longer than
otherwise provided for in the relevant Option Agreement or the Plan, provided that any such modification of the terms and conditions of an Option shall be subject to the provisions of Section 14(c) (implemented as if it applied to modifications of
an outstanding Option).
                         (c)          Form of
Consideration.  The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment.  In the case of an Incentive Stock Option, the Administrator shall determine the
acceptable form of consideration at the time of grant.  Such consideration may consist entirely of:
                                     
  (i)          cash;
                                      
  (ii)         check;
                                      
  (iii)        promissory note;
                                      
  (iv)        other Shares which, in the case of Shares acquired directly or indirectly from the Company, (A) have been owned by the Optionee for more than six (6) 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.
  -8-

             10.          Exercise of Option.
                         (a)          Procedure for
Exercise; Rights as a Stockholder.  Any Option granted here-under 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 Options granted hereunder shall be suspended 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 stockholder 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 12of 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 termi-nation (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 twelve (12) months following the Optionee’s termination.  If, on the date of termina-tion, 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
 -9-

   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 following the Optionee’s death within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date
of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s designated beneficiary, provided such beneficiary has been designated prior to
Optionee’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Optionee, then such Option may be exercised by the personal representative of the Optionee’s estate or by the person(s) to
whom the Option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution.  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12)
months following Optionee’s death.  If, at the time of death, 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.  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.
            11.         Stock Purchase Rights.
                         (a)          Rights to
Purchase.  Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan.  After the Administrator determines that it will offer
Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically, by means of a Notice of Grant, of the terms, conditions and restrictions related to the offer, includ-ing the number of Shares that the offeree shall be
entitled to purchase, the price to be paid, and the time within which the offeree must accept such offer.  The offer shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator.

                       (b)          Repurchase
Option.  Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s service with the
Company for any reason (including death or Disability).  The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original price paid by the purchaser and may be paid by cancellation of any
indebtedness of the purchaser to the Company.  The repurchase option shall lapse at a rate determined by the Administrator.
                         (c)          Other
Provisions.  The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion.
                         (d)          Rights as a
Stockholder.  Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a stockholder, and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized
transfer agent of the Company.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 12 of the Plan.
  -10-

                                       
  (i)          Transferability of Options and Stock Purchase Rights.  Unless determined otherwise by the Administrator, an Option or Stock Purchase Right 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 or Stock Purchase Right transferable, such Option or Stock Purchase Right shall contain such additional terms and conditions as the Administrator deems appropriate.
           12.         Adjustments Upon Changes in Capitalization, Merger or Change in Control.
                         (a)          Changes in
Capitalization.  Subject to any required action by the stockholders of the Company, the number of shares of Common Stock that have been authorized for issuance under the Plan but as to which no Options or Stock Purchase Rights have yet been
granted or which have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, the number of Shares that may be added annually to the Plan pursuant to Section 3(i), and the number of shares of Common Stock
as well as the price per share of Common Stock covered by each such outstanding Option or Stock Purchase Right, 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 adjust-ment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Stock Purchase Right.
                         (b)          Dissolution or
Liquidation.  In the event of the proposed dissolution or liquida-tion 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 or Stock Purchase Right 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 or Stock Purchase Right will terminate immediately prior to the consummation of such proposed
action.
                        (c)          Merger or Change in
Control.  In the event of a merger of the Company with or into another corporation, or a Change in Control, each outstanding Option and Stock Purchase Right 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 or Stock Purchase Right, the Optionee shall fully vest in and have the right to exercise the
  -11-

   Option or Stock Purchase Right as to all of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable.  If an Option or Stock
Purchase Right 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 or Stock Purchase Right
shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon the expiration of such period.  
                                      
  For the purposes of this subsection (c), the Option or Stock Purchase Right shall be considered assumed if, following the merger or Change in Control, the option or right confers the right to purchase or receive, for each Share of
Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control 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 Change in Control 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 or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, 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 Change in Control.
           13.         Date of Grant.  The date of grant of an Option or Stock Purchase Right shall be, for all
purposes, the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, 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)          Stockholder
Approval.  The Company shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
                         (c)          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 or Stock Purchase Right unless the exercise of such Option or Stock Purchase Right and the
  -12-

   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.
                         (b)          Investment
Representations.  As a condition to the exercise of an Option or Stock Purchase Right, the Company may require the person exercising such Option or Stock Purchase Right 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.
           18.         Stockholder Approval.  The Plan shall be subject to approval by the stockholders of the Company
within twelve (12) months after the date the Plan is adopted.  Such stockholder approval shall be obtained in the manner and to the degree required under Applicable Laws.
 -13-

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