Document:

EMPLOYMENT AGREEMENT

 

[Letterhead of Paramount Energy Operating Corp.]

Exhibit 10.8

October 31, 2002

Cam Sebastian

c/o Paramount Energy Operating Corp.

500, 630 – 4 Avenue S.W.

Calgary, AB

T2P 0J9

Dear Cam:

Re: Employment with Paramount Energy Operating Corp. (“PEOC”)

You have been employed as the Vice-President, Finance with PEOC, the trustee
for the Paramount Operating Trust, pursuant to the provisions of an employment
letter agreement, the terms of which PEOC and you wish to supersede by this
letter agreement (the “Agreement”).

I am pleased to confirm that PEOC and you have agreed, for and in consideration
of the sum of $10.00 now paid by each party to the other party and the mutual
covenants and agreements outlined in this letter, that your employment with
PEOC will be governed by the following terms and conditions:

	 	 	 	 	 
	Commencement Date:	 	
Your employment with PEOC commenced effective June
28, 2002. For the purposes of determining your
entitlement to benefits and vacation and other
issues relating to your employment, PEOC agrees to
recognize your prior service with Summit Resources
Limited.
	 	 
	Compensation:	 	(a)	 	You will receive a base salary of $157,200.00
per annum. PEOC agrees to review your base salary
annually and agrees that following each such
review, the then current base remuneration may be
increased to reflect your performance, the
company’s performance and other relevant factors.
	 	 
	 	 	(b)	 	You will also be paid an annual parking and car
allowance in the amount of $9,300.00 and you will
receive group RRSP contributions, on an annual
basis, in the amount of $14,148.00
	 	 
	Benefits:	 	
You shall be entitled to participate in the PEOC
employee benefits plan as may be in effect at any
given time, subject to satisfying any insurability
requirements established by the carrier or carriers
that provide the benefits.
	 	 
	Unit Incentive Rights:	 	Subject to regulatory approval and the terms and
conditions of the Unit Incentive Plan, you will be
granted 80,000 Incentive Rights initially
exercisable at $5.05 per Trust Unit.

 

 

2

	 	 	 	 	 
	Vacation:	 	
Your vacation entitlement for the year 2002 will be
the same as your vacation entitlement with Summit
Resources Limited (less days taken) and thereafter
your vacation entitlement will be governed by the
PEOC employee handbook.
	 	 
	Retention Bonus:	 	In the event that you remain an active employee of
PEOC up to and including December 31, 2002, you
will be paid, on that date, a Retention Bonus in
the amount of $50,000.00.

We look forward to you continuing with PEOC as an integral part of our
Management Team, working together to bring continued value to unitholders and
growth to the organization.

Yours truly,

PARAMOUNT ENERGY OPERATING CORP.

/s/ Susan Riddell Rose

Susan Riddell Rose

/bmg

I, Cam Sebastian, hereby agree to the terms set out in this Agreement.

	 	 	 
	/s/ Cam Sebastian	 	
November 5, 2002
	
	 	

	Cam Sebastian	 	
DateEMPLOYMENT AGREEMENT

 

[Letterhead of Paramount Energy Operating Corp.]

Exhibit 10.9

October 31, 2002

Kevin Marjoram

c/o Paramount Energy Operating Corp.

500, 630 – 4 Avenue S.W.

Calgary, AB

T2P 0J9

Dear Kevin:

Re: Employment with Paramount Energy Operating Corp. (“PEOC”)

You have been employed as the Vice-President, Operations, with PEOC, the
trustee for the Paramount Operating Trust, pursuant to the provisions of a
verbal agreement, the terms of which PEOC and you wish to supersede by this
letter agreement (the “Agreement”).

I am pleased to confirm that PEOC and you have agreed, for and in consideration
of the sum of $10.00 now paid by each party to the other party and the mutual
covenants and agreements outlined in this Agreement, that your employment with
PEOC will be governed by the following terms and conditions:

	 	 	 	 	 
	Commencement Date:	 	
Your employment with PEOC commenced effective July
1, 2002.
	 	 
	Compensation:	 	(a)	 	
You will receive a base remuneration of
$132,250.00 per annum. PEOC agrees to review your
base remuneration annually and agrees that
following each such review, the then current base
remuneration may be increased to reflect your
performance, the company’s performance and other
relevant factors.
	 	 
	 	 	(b)	 	You will also receive group RRSP contributions,
on an annual basis, in the amount of $6,750.00.
	 	 
	Benefits:	 	
You shall be entitled to participate in the PEOC
employee benefits plan as may be in effect at any
given time, subject to satisfying any insurability
requirements established by the carrier or carriers
that provide the benefits.
	 	 
	Unit Incentive Rights:	 	Subject to regulatory approval and the terms and
conditions of the Unit Incentive Plan, you will be
granted 80,000 Incentive Rights initially
exercisable at $5.05 per Trust Unit.
	 	 
	Vacation:	 	 Your vacation entitlement for the year 2002 will be
a prorated portion of 20 days and thereafter will
be governed by the PEOC employee handbook.

 

 

2

We look forward to you continuing with PEOC as an integral part of our
Management Team, working together to bring continued value to unitholders and
growth to the organization.

Yours truly,

PARAMOUNT ENERGY OPERATING CORP.

/s/ Susan Riddell Rose

Susan Riddell Rose

/bmg

I, Kevin Marjoram, hereby agree to the terms set out in this Agreement.

	 	 	 
	/s/ Kevin Marjoram	 	
November 5, 2002
	
	 	

	Kevin Marjoram	 	
Date<PAGE>

                                   EXHIBIT 4.1

               MACROVISION CORPORATION 2000 EQUITY INCENTIVE PLAN

<PAGE>

                             MACROVISION CORPORATION
                           2000 EQUITY INCENTIVE PLAN
                           --------------------------

              As Adopted by the Board of Directors on June 16, 2000
                   Approved by Stockholders on August 24, 2000
             As Amended by the Board of Directors on August 24, 2000
             As Amended by the Board of Directors on April 16, 2002
                  Approved by the Stockholders on June 6, 2002

        Section 1.  PURPOSE; DEFINITIONS.

        The name of the plan is the Macrovision Corporation 2000 Equity
Incentive Plan (the "Plan"). The purpose of the Plan is to encourage and enable
employees (including officers and Directors) of Macrovision Corporation, a
Delaware corporation (the "Company") and its Subsidiaries, non-employee members
of the Board of Directors of the Company, and those consultants and other
independent contractors who provide services to the Company and its Subsidiaries
and upon whose judgment, initiative and efforts the Company and its Subsidiaries
depend for the successful conduct of their business to acquire proprietary
interests in the Company. It is anticipated that providing such persons with a
direct stake in the Company's welfare will assure a closer identification of
their interests with those of the Company, thereby stimulating their efforts on
behalf of the Company and its Subsidiaries and strengthening their desire to
remain with the Company and its Subsidiaries.

        The following terms shall be defined as set forth below:

        (a)      "Act" means the Securities Act of 1933, as amended.

        (b)      "Administrator" means the Board or the Committee.

        (c)      "Award" or "Awards," except where referring to a particular
category of grant under the Plan, shall include Incentive Stock Options,
Nonstatutory Stock Options, Stock Appreciation Rights, and Restricted Stock
Awards.

        (d)      "Board" means the Board of Directors of the Company.

        (e)      "Cause," as such term relates to the termination of any
person's status as an employee or other service provider of the Company, means
the occurrence of one or more of the following: (i) such person is convicted of,
pleads guilty to, or confesses to any felony or any act of fraud,
misappropriation or embezzlement which has an immediate and materially adverse
effect on the Company or any Subsidiary, as determined by the Board in good
faith in its sole discretion, (ii) such person engages in a fraudulent act to
the material damage or prejudice of the Company or any Subsidiary or in conduct
or activities materially damaging to the property, business or reputation of the
Company or any Subsidiary, all as determined by the Board in good faith in its
sole discretion, (iii) any material act or omission by such person involving
malfeasance or negligence in the performance of such person's duties to the
Company or any Subsidiary to the material detriment of the Company or any
Subsidiary, as determined by the Board in good faith in its sole discretion,
which has not been corrected by such person to the

<PAGE>

satisfaction of the Board within 30 days after written notice from the Company
of any such act or omission, (iv) failure by such person to comply in any
material respect with the terms of his employment agreement, if any, or any
written policies or directives of the Board as determined by the Board in good
faith in its sole discretion, which has not been corrected by such person to the
satisfaction of the Board within 30 days after written notice from the Company
of such failure, or (v) material breach by such person of any other agreement
with the Company, as determined by the Board in good faith in its sole
discretion.

        (f)      "Code" means the Internal Revenue Code of 1986, as amended, and
any successor tax laws, and related rules, regulations and interpretations.

        (g)      "Committee" means a committee of two or more Independent
Directors appointed by the Board to administer the Plan.

        (h)      "Director" means a member of the Board.

        (i)      "Disability" means an individual's inability to perform his
normal required services for the Company and its Subsidiaries for a period of
six consecutive months by reason of the individual's mental or physical
disability, as determined by the Administrator in good faith in its sole
discretion.

        (j)      "Fair Market Value" of the Stock on any given date under the
Plan shall be determined as follows:

                 (i)     If the Stock is at the time listed or admitted to
        trading on any national stock exchange, then the fair market value
        shall be the closing selling price per share of the Stock on the date
        of determination on the stock exchange determined by the Administrator
        to be the primary market for the Common Stock, as such price is
        officially quoted in the composite tape transactions on such exchange.
        If there is no reported sale of the Stock on such exchange on the date
        of determination, then the fair market value shall be the closing
        price on the exchange on the last preceding date for which such
        quotation exists.

                 (ii)    If the Stock is not at the time listed or admitted to
        trading on any national exchange but is traded on the NASDAQ National
        Market System, the fair market value shall be the closing selling price
        per share of the Stock on the date of determination, as such price is
        reported by the National Association of Securities Dealers, Inc.
        through the NASDAQ National Market System or through any successor
        system. If there is no reported closing selling price for the Stock on
        the date of determination, then the fair market value shall be the
        closing selling price on the last preceding date for which such
        quotation exists.

                 (iii)   If the Stock is at the time neither listed nor admitted
        to trading on any stock exchange nor traded in the over-the-counter
        market, then the fair market value shall be determined by the
        Administrator after taking into account such factors as the
        Administrator shall deem appropriate.

                                       2

<PAGE>

        (k)      "Incentive Stock Option" means any Stock Option designated and
qualified as an "incentive stock option" as defined in Section 422 of the Code.

        (l)      "Independent Director" means a member of the Board who is not
also an employee of the Company or any Subsidiary.

        (m)      "Nonstatutory Stock Option" means any Stock Option that is not
an Incentive Stock Option.

        (n)      "Option" or "Stock Option" means any option to purchase shares
of Stock granted pursuant to Section 5.

        (o)      "Restricted Stock Award" means any Award granted pursuant to
Section 7.

        (p)      "Retirement" means an employee's termination of employment with
the Company and its Subsidiaries after attainment of age 65 or attainment of age
55 and completion of 10 years of employment.

        (q)      "Stock" means the Common Stock, par value $.001 per share, of
the Company, subject to adjustments pursuant to Section 3.

        (r)      "Stock Appreciation Right" means any Award granted pursuant to
Section 6.

        (s)      "Subsidiary" means any corporation or other entity (other than
the Company) in any unbroken chain of corporations or other entities, beginning
with the Company if each of the corporations or entities (other than the last
corporation or entity in the unbroken chain) owns stock or other interests
possessing 50% or more of the economic interest or the total combined voting
power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

        Section 2.  ADMINISTRATION OF PLAN; AUTHORITY TO SELECT PARTICIPANTS AND
DETERMINE AWARDS

        (a)      POWERS OF ADMINISTRATOR. The Administrator shall have the power
and authority to grant Awards consistent with the terms of the Plan, including
the power and authority:

                 (i)     to select those employees (including officers and
        Directors) of the Company and its Subsidiaries, non-employee Directors,
        and consultants and other independent contractors in service to the
        Company and its Subsidiaries to whom Awards may from time to time be
        granted;

                 (ii)    to determine the time or times of grant, and the
        extent, if any, of Incentive Stock Options, Nonstatutory Stock Options,
        Stock Appreciation Rights, and Restricted Stock Awards, or any
        combination of the foregoing, granted to any one or more participants;

                 (iii)   to determine the number of shares of Stock to be
        covered by any Award;

                                       3

<PAGE>

                 (iv)    to determine and modify from time to time the terms and
        conditions, including restrictions, not inconsistent with the terms of
        the Plan, of any Award, which terms and conditions may differ among
        individual Awards and participants, and to approve the form of written
        instruments evidencing the Awards;

                 (v)     to accelerate at any time the exercisability or vesting
        of all or any portion of any Award;

                 (vi)    subject to the provisions of Section  5(a)(ii),  to
        extend at any time the period in which Stock Options may be exercised;

                 (vii)   to determine at any time whether, to what extent, and
        under what circumstances Stock and other amounts payable with respect
        to an Award shall be deferred either automatically or at the election
        of the participant and whether and to what extent the Company shall pay
        or credit amounts constituting interest (at rates determined by the
        Administrator) or dividends or deemed dividends on such deferrals; and

                 (viii)  at any time to adopt, alter and repeal such rules,
        guidelines and practices for administration of the Plan (including for
        any subplan or portion of the Plan that the Administrator may establish
        for a specific group of employees or other service providers) and for
        its own acts and proceedings as it shall deem advisable; to interpret
        the terms and provisions of the Plan and any Award (including related
        written instruments); to make all determinations it deems advisable for
        the administration of the Plan; to decide all disputes arising in
        connection with the Plan; and otherwise to supervise the administration
        of the Plan.

        All decisions and interpretations of the Administrator shall be binding
on all persons, including the Company and Plan participants.

        (b)      DELEGATION OF AUTHORITY TO GRANT AWARDS. The Administrator, in
its discretion, may delegate to the Chief Executive Officer or Chief Operating
Officer of the Company all or part of the Administrator's authority and duties
with respect to Awards, including the granting thereof, to individuals who are
not subject to the reporting and other provisions of Section 16 of the Act or
"covered employees" within the meaning of Section 162(m) of the Code. The
Administrator may revoke or amend the terms of a delegation at any time but such
action shall not invalidate any prior actions of the Administrator's delegate or
delegates that were consistent with the terms of the Plan.

        Section 3.  STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

        (a)      STOCK ISSUABLE. As of April 16, 2002, the maximum number of
shares of Stock reserved and available for the grant of Awards under the Plan
shall be five million eight hundred forty-five thousand eight hundred
ninety-eight (5,845,898) shares. For purposes of this limitation, the shares of
Stock underlying any Awards which expire or which are forfeited, canceled,
reacquired by the Company, satisfied without the issuance of Stock or otherwise
terminated (other than by exercise) shall be added back to the shares of Stock
available for issuance under the Plan. Subject to such overall limitation,
shares of Stock may be issued up to such maximum number pursuant to any type or
types of Award; provided, however, that Stock

                                       4
<PAGE>

Options or Stock Appreciation Rights with respect to no more than five hundred
thousand (500,000) shares of Stock may be granted to any one individual
participant during any one calendar year period. The shares available for
issuance under the Plan may be authorized but unissued shares of Stock or shares
of Stock reacquired by the Company. Upon the exercise of a Stock Appreciation
Right settled in shares of Stock, the right to purchase an equal number of
shares of Stock covered by a related Stock Option, if any, shall be deemed to
have been surrendered and will no longer be exercisable, and said number of
shares of Stock shall no longer be available under the Plan.

        (b)      RECAPITALIZATIONS. If, through or as a result of any merger,
consolidation, sale of all or substantially all of the assets of the Company,
reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split or other similar transaction, the outstanding shares of
Stock are increased or decreased or are exchanged for a different number or kind
of shares or other securities of the Company, or additional shares or new or
different shares or other securities of the Company or other non-cash assets are
distributed with respect to such shares of Stock or other securities, the
Administrator shall make an appropriate or proportionate adjustment in (i) the
maximum number of shares reserved for issuance under the Plan, (ii) the number
of Stock Options or Stock Appreciation Rights that can be granted to any one
individual participant, (iii) the number and kind of shares or other securities
subject to any then outstanding Awards under the Plan, and (iv) the price for
each share subject to any then outstanding Stock Options and Stock Appreciation
Rights under the Plan, without changing the aggregate exercise price (i.e., the
exercise price multiplied by the number of Stock Options and Stock Appreciation
Rights) as to which such Stock Options and Stock Appreciation Rights remain
exercisable. The adjustment by the Administrator shall be final, binding and
conclusive. No fractional shares of Stock shall be issued under the Plan
resulting from any such adjustment, but the Administrator in its discretion may
make a cash payment in lieu of fractional shares.

        (c)      MERGERS, ETC. In the event of (i) a dissolution or liquidation
of the Company; (ii) a merger or consolidation in which the Company is the not
the surviving corporation (other than a merger or consolidation with a
wholly-owned subsidiary, a reincorporation of the Company in a different
jurisdiction, or other transaction in which there is no substantial change in
the stockholders of the Company or their relative stock holdings and the Stock
Options and Stock Appreciation Rights granted under this Plan are assumed,
converted or replaced by the successor corporation, which assumption will be
binding on all optionees); (iii) a merger in which the Company is the surviving
corporation but after which the stockholders of the Company (other than any
stockholder which merges (or which owns or controls another corporation which
merges) with the Company in such merger) cease to own their shares or other
equity interests in the Company; (iv) the sale of substantially all of the
assets of the Company; or (v) any other transaction which qualifies as a
"corporate transaction" under Section 424(a) of the Internal Revenue Code of
1986, as amended, wherein the stockholders of the Company give up all of their
equity interest in the Company (except for the acquisition, sale or transfer of
all or substantially all of the outstanding shares of the Company from or by the
stockholders of the Company), the Board, or the board of directors of any
corporation assuming the obligations of the Company, may, in its discretion,
take any one or more of the following actions, as to outstanding Stock Options
and Stock Appreciation Rights: (I) provide that such Stock Options shall be
assumed or equivalent options shall be substituted, by the acquiring or
succeeding corporation (or an affiliate thereof), (II) upon written notice to
the optionees, provide that all

                                       5
<PAGE>

unexercised Stock Options and Stock Appreciation Rights will terminate
immediately prior to the consummation of such transaction unless exercised by
the optionee within a specified period following the date of such notice, and/or
(III) in the event of a business combination under the terms of which holders of
the Stock of the Company will receive upon consummation thereof a cash payment
for each share surrendered in the business combination, make or provide for a
cash payment to the optionees, equal to the difference between (A) the value (as
determined by the Administrator) of the consideration payable per share of Stock
pursuant to the business combination (the "Merger Price") multiplied by the
number of shares of Stock subject to such outstanding Stock Options and Stock
Appreciation Rights (to the extent then exercisable at prices not in excess of
the Merger Price) and (B) the aggregate exercise price of all such outstanding
Stock Options and Stock Appreciation Rights, in exchange for the termination of
such Stock Options and Stock Appreciation Rights.

        (d)      SUBSTITUTE AWARDS. The Administrator may grant Awards under the
Plan in substitution for stock and stock based awards held by employees of
another corporation who become employees of the Company or a Subsidiary as the
result of a merger or consolidation of the employing corporation with the
Company or a Subsidiary or the acquisition by the Company or a Subsidiary of
property or stock of the employing corporation. The Administrator may direct
that the substitute awards be granted on such terms and conditions as the
Administrator considers appropriate in the circumstances.

        Section 4.  ELIGIBILITY

        Participants in the Plan shall be such full-time or part-time employees
(including officers and Directors) of the Company and its Subsidiaries,
non-employee Directors, and consultants and other independent contractors in
service to the Company and its Subsidiaries as the Administrator in its sole
discretion shall select from time to time.

        Section 5.  STOCK OPTIONS

        Any Stock Option granted under the Plan shall be in such form as the
Administrator may from time to time approve. Stock Options granted under the
Plan may be either Incentive Stock Options or Nonstatutory Stock Options.
Incentive Stock Options may be granted only to employees of the Company or any
Subsidiary that is a "subsidiary corporation" within the meaning of Section
424(f) of the Code. To the extent that any Option does not qualify as an
Incentive Stock Option, it shall be a Nonstatutory Stock Option. The
Administrator may from time to time adopt subplans to this Plan containing such
additional terms, conditions and restrictions, not inconsistent with the terms
of the Plan, as may be necessary to qualify the grants of Stock Options
thereunder for preferential treatment under the laws of any country or other
jurisdiction in which the Company or any of its Subsidiaries has employees,
non-employee Directors, consultants or other independent contractors.

        No Incentive Stock Option shall be granted under the Plan after May 31,
2010.

        (a)      TERMS AND CONDITIONS OF STOCK OPTIONS. The Administrator in its
discretion may grant Stock Options subject to the following terms and conditions
and such additional terms and conditions, not inconsistent with the terms of the
Plan, as the Administrator shall deem desirable:

                                       6
<PAGE>

                 (i)     EXERCISE PRICE. The exercise price per share for the
        Stock covered by a Stock Option granted pursuant to this Section 5(a)
        shall be determined by the Administrator at the time of grant, but
        shall not be less than 100% of the Fair Market Value of a share of
        Stock on the date of grant in the case of Incentive Stock Options, or
        less than 85% of the Fair Market Value of a share of Stock on the date
        of grant in the case of Nonstatutory Stock Options. If an employee
        owns or is deemed to own (by reason of the attribution rules of
        Section 424(d) of the Code) more than 10% of the combined voting power
        of all classes of stock of the Company or of any "parent or subsidiary
        corporation" of the Company (within the meaning of Section 424(f) of
        the Code) and an Incentive Stock Option is granted to such employee,
        the exercise price per share for the Stock covered by such Incentive
        Stock Option shall be not less than 110% of the Fair Market Value of a
        share of Stock on the grant date.

                 (ii)    OPTION TERM. The term of each Stock Option shall be
        fixed by the Administrator, but no Incentive Stock Option shall be
        exercisable more than ten years after the date the Option is granted.
        If an employee owns or is deemed to own (by reason of the attribution
        rules of Section 424(d) of the Code) more than 10% of the combined
        voting power of all classes of stock of the Company or of any "parent
        or subsidiary corporation" of the Company (within the meaning of
        Section 424(f) of the Code) and an Incentive Stock Option is granted
        to such employee, the term of such Option shall expire no more than
        five years after the date of grant.

                 (iii)   EXERCISABILITY; RIGHTS OF A STOCKHOLDER. Stock Options
        shall become exercisable at such time or times, whether or not in
        installments, as shall be determined by the Administrator at the time
        of grant. The Administrator may at any time accelerate the
        exercisability of all or any portion of any Stock Option. An optionee
        shall have the rights of a stockholder only as to shares acquired upon
        the exercise of a Stock Option and not as to unexercised Stock Options.

                 (iv)    METHOD OF EXERCISE. Stock Options may be exercised in
        whole or in part, by giving written notice of exercise to the Company
         specifying the number of shares to be purchased. Payment of the
         purchase price shall be made in full concurrently with such exercise by
         any one of the following methods: (A) in cash; (B) if and to the extent
         the instrument evidencing the Option so provides and if the Company is
         not then prohibited from purchasing or acquiring shares of Stock, with
         shares of Stock that have been held by the optionee for the requisite
         period necessary to avoid a charge to the Company's earnings for
         financial reporting purposes, delivered in lieu of cash and valued at
         their Fair Market Value on the date of exercise; (C) through a "same
         day sale" commitment from the optionee and a broker-dealer that is a
         member of the National Association of Securities Dealers, Inc. (the
         "NASD Dealer") whereby the optionee irrevocably elects to exercise the
         Option and to sell a portion of the shares so purchased to pay for the
         exercise price, and whereby the NASD Dealer irrevocably commits upon
         receipt of such shares to forward the exercise price directly to the
         Company; (D) through a "margin" commitment from the optionee and a NASD
         Dealer whereby the optionee irrevocably elects to exercise the Option
         and to pledge the shares so purchased to the NASD Dealer in a margin
         account as security for a loan from the NASD Dealer in the amount of
         the exercise price , and whereby the NASD Dealer irrevocably commits
         upon receipt of such

                                       7
<PAGE>

        shares to forward the exercise price directly to the Company; or (E)
        any combination of the foregoing. The delivery of certificates
        representing the shares of Stock to be purchased pursuant to the
        exercise of a Stock Option will be contingent upon receipt from the
        optionee (or a purchaser acting in his stead in accordance with the
        provisions of the Stock Option) by the Company of the full purchase
        price for such shares and the fulfillment of any other requirements
        contained in the Stock Option or applicable provisions of laws.

                 (v)     TERMINATION BY REASON OF DEATH. Any Stock Option held
        by an optionee whose employment by (or other business relationship
        with) the Company and its Subsidiaries is terminated by reason of the
        optionee's death may thereafter be exercised, to the extent it was
        exercisable by the optionee on the date of the optionee's death, by
        the legal representative of the optionee's estate or by any other
        person who acquires the right to exercise the option by reason of such
        death under the optionee's will or the laws of intestate succession,
        for a period of 12 months (or such other period as the Administrator
        shall specify in the Stock Option) from the date of death, but not
        later than the expiration of the stated term of the Option, if
        earlier.

                 (vi)    TERMINATION BY REASON OF DISABILITY. Any Stock Option
        held by an optionee whose employment by (or other business relationship
        with) the Company and its Subsidiaries is terminated by reason of
        Disability may thereafter be exercised, to the extent it was
        exercisable on the date of such termination, for a period of 12 months
        (or such other period as the Administrator shall specify in the Stock
        Option) from the date of such termination of employment (or business
        relationship), but not later than the expiration of the stated term of
        the Option, if earlier. The Administrator shall have sole authority and
        discretion to determine whether a participant's employment (or business
        relationship) has been terminated by reason of Disability. The
        Administrator may specify in any Stock Option that the death of an
        optionee during the period provided in this Section 5(a)(vi) for the
        exercise of the Option shall extend such period for a period ending not
        later than 12 months following the date of the optionee's death,
        subject to termination on the expiration of the stated term of the
        Option, if earlier.

                 (vii)   TERMINATION BY REASON OF RETIREMENT. Any Stock Option
        held by an optionee whose employment by the Company and its
        Subsidiaries is terminated by reason of Retirement may thereafter be
        exercised, to the extent it was exercisable on the date of such
        termination, for a period of 12 months (or such other period as the
        Administrator shall specify) from the date of such termination of
        employment, but not later than the expiration of the stated term of the
        Option, if earlier. The Administrator may specify in any Stock Option
        that the death of an optionee during the period provided in this
        Section 5(a)(vii) for the exercise of the Option shall extend such
        period for a period ending not later than 12 months following the date
        of the optionee's death, subject to termination on the expiration of
        the stated term of the Option, if earlier.

                 (viii)  TERMINATION FOR CAUSE. If any optionee's employment by
        (or business relationship with) the Company and its Subsidiaries is
        terminated for Cause, any Stock Option held by such optionee, including
        any Stock Option that is exercisable at the time of such termination,
        shall immediately terminate and be of no further force and effect;

                                       8
<PAGE>

        provided, however, that the Administrator may, in its sole discretion,
        provide in any Stock Option that such Stock Option can be exercised, to
        the extent it was exercisable on the date of such termination, for a
        period of up to 30 days from the date of termination of employment (or
        business relationship), but not later than the expiration of the stated
        term of the Option, if earlier.

                 (ix)    OTHER TERMINATION. Unless otherwise determined by the
        Administrator, if an optionee's employment by (or business relationship
        with) the Company and its Subsidiaries terminates for any reason other
        than death, Disability, Retirement, or for Cause, any Stock Option held
        by such optionee may thereafter be exercised, to the extent it was
        exercisable on the date of such termination, for three months (or such
        other period not to exceed 60 months as the Administrator shall
        specify) from the date of termination of employment (or business
        relationship), but not later than the expiration of the stated term of
        the Option, if earlier.

                 (x)     ANNUAL LIMIT ON INCENTIVE STOCK OPTIONS. To the extent
        required for "incentive stock option" treatment under Section 422 of
        the Code, the aggregate Fair Market Value (determined as of the time of
        grant) of the shares of Stock with respect to which Incentive Stock
        Options granted under this Plan and any other plan of the Company or
        its parent and subsidiary corporations become exercisable for the first
        time by an optionee during any calendar year shall not exceed $100,000.
        To the extent that any Stock Option exceeds this limit, it shall
        constitute a Nonstatutory Stock Option.

        (b)      NON-TRANSFERABILITY OF OPTIONS. No Stock Option shall be
transferable by the optionee otherwise than by will or by the laws of descent
and distribution and all Stock Options shall be exercisable, during the
optionee's lifetime, only by the optionee. Notwithstanding the foregoing, the
Administrator may provide in an option agreement evidencing a Nonstatutory Stock
Option that the optionee may transfer, without consideration for the transfer,
such Nonstatutory Stock Option to members of his immediate family, to trusts for
the benefit of such family members, to partnerships in which such family members
are the only partners, or to charitable organizations, provided that the
transferee agrees in writing with the Company to be bound by all of the terms
and conditions of the Plan and the applicable option agreement.

        (c)      FORM OF SETTLEMENT. Shares of Stock issued upon exercise of a
Stock Option shall be free of all restrictions under the Plan, except as
otherwise provided in the Plan.

        Section 6.  STOCK APPRECIATION RIGHTS.

        (a)      NATURE OF STOCK APPRECIATION RIGHTS. A Stock Appreciation Right
is an award entitling the recipient to receive an amount in cash or shares of
Stock or a combination thereof having a value equal to the excess of the Fair
Market Value of a share of Stock on the date of exercise over the per share
exercise price of the Stock Appreciation Right set by the Administrator at the
time of grant, which exercise price shall be not less than the Fair Market Value
of a share of Stock on the date of grant (or not less than the Option exercise
price per share, if the Stock Appreciation Right was granted in tandem with a
Stock Option) multiplied by the number of shares of Stock with respect to which
the Stock Appreciation Right shall have been exercised, with the Administrator
having the right to determine the form of payment.

                                       9
<PAGE>

        (b)      GRANT AND EXERCISE OF STOCK APPRECIATION RIGHTS. Stock
Appreciation Rights may be granted by the Administrator in tandem with, or
independently of, any Stock Option granted pursuant to Section 5 of the Plan. In
the case of a Stock Appreciation Right granted in tandem with a Nonstatutory
Stock Option, such Stock Appreciation Right may be granted either at or after
the time of the grant of such Option. In the case of a Stock Appreciation Right
granted in tandem with an Incentive Stock Option, such Stock Appreciation Right
may be granted only at the time of the grant of the Option.

        (c)      TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS. Stock
Appreciation Rights shall be subject to such terms and conditions as shall be
determined from time to time by the Administrator, subject to the following:

                 (i)     Stock Appreciation Rights granted in tandem with
        Options shall be exercisable at such time or times and to the extent
        that the related Stock Options shall be exercisable. A Stock
        Appreciation Right or applicable portion thereof granted in tandem
        with a Stock Option shall terminate and no longer be exercisable upon
        the termination or exercise of the related Option.

                 (ii)    Upon exercise of a Stock Appreciation Right, the
        applicable portion of any related Option shall be surrendered.

                 (iii)   Stock Appreciation Rights granted in tandem with an
        Option shall be transferable only when and to the extent that the
        underlying Option would be transferable. Stock Appreciation Rights not
        granted in tandem with an Option shall not be transferable otherwise
        than by will or the laws of descent or distribution. All Stock
        Appreciation Rights shall be exercisable during the participant's
        lifetime only by the participant or the participant's legal
        representative.

        Section 7.  RESTRICTED STOCK AWARDS

        (a)      NATURE OF RESTRICTED STOCK AWARDS. A Restricted Stock Award is
an Award entitling the recipient to acquire shares of Stock subject to such
restrictions and conditions as the Administrator may determine at the time of
grant ("Restricted Stock"), at a purchase price and for such consideration as
the Administrator may determine, which price shall not be less than 85% of the
Fair Market Value of the Stock on the date of issuance. Such Restricted Stock
issuances may, at the discretion of the Administrator, be based on continuing
employment (or other business relationship) with the Company and its
Subsidiaries and/or achievement of pre-established performance goals and
objectives. Restricted Stock Awards shall be limited to a total of one hundred
thousand (100,000) shares of Stock.

        (b)      RIGHTS AS A STOCKHOLDER. Upon execution of a written instrument
setting forth the Restricted Stock Award and paying any applicable purchase
price, a participant shall have the rights of a stockholder with respect to the
voting of the Restricted Stock, subject to such conditions contained in the
written instrument evidencing the Restricted Stock Award. Unless the
Administrator shall otherwise determine, certificates evidencing the Restricted
Stock shall remain in the possession of the Company or of a third party escrow
holder until such Restricted Stock is vested as provided in Section 7(d) below.

                                       10
<PAGE>

        (c)      RESTRICTIONS. Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein or in the written instrument evidencing the
Restricted Stock Award. If a participant's employment (or other business
relationship) with the Company and its Subsidiaries terminates for any reason,
the Company shall have the right to repurchase from the participant or the
participant's legal representative at their purchase price the Restricted Stock
with respect to which conditions have not lapsed.

        (d)      VESTING OF RESTRICTED STOCK. The Administrator at the time of
grant shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the Company's right of
repurchase shall lapse. Subsequent to such date or dates and/or the attainment
of such pre-established performance goals, objectives and other conditions, the
shares on which all restrictions have lapsed shall no longer be Restricted Stock
and shall be "vested." Except as may otherwise be provided by the Administrator,
a participant's rights in any shares of Restricted Stock that have not vested
shall terminate automatically upon the participant's termination of employment
(or other business relationship) with the Company and its Subsidiaries and such
shares shall be subject to the Company's right of repurchase as provided in
Section 7(c) above.

        (e)      WAIVER, DEFERRAL AND REINVESTMENT OF DIVIDENDS. The written
instrument evidencing the Restricted Stock Award may require or permit the
immediate payment, waiver, deferral or investment of dividends paid on the
Restricted Stock.

        Section 8.  TAX WITHHOLDING

        (a)      PAYMENT BY PARTICIPANT. Each participant shall, no later than
the date as of which the value of an Award or of any Stock or other amounts
received thereunder first becomes includable in the gross income of the
participant for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Administrator regarding payment of, any
Federal, state, or local taxes of any kind required by law to be withheld with
respect to such income. The Company and its Subsidiaries shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the participant.

        (b)      PAYMENT IN STOCK. Subject to approval by the Administrator, a
participant may elect to have such tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to any Award a number of shares with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the withholding amount due, or (ii) transferring to the Company shares
of Stock owned by the participant with an aggregate Fair Market Value (as of the
date the withholding is effected) that would satisfy the withholding amount due.

        Section 9.  TRANSFER, LEAVE OF ABSENCE, ETC.

        For purposes of the Plan, the following events shall not be deemed a
termination of employment:

        (a)      a transfer to the employment of the Company from a Subsidiary
or from the Company to a Subsidiary, or from one Subsidiary to another; or

                                       11
<PAGE>

        (b)      an approved leave of absence for military service or sickness,
or for any other purpose approved by the Company, if the employee's right to
re-employment is guaranteed either by a statute or by contract or under the
policy pursuant to which the leave of absence was granted or if the
Administrator otherwise so provides in writing.

        Section 10.  AMENDMENTS AND TERMINATION

        The Board may, at any time, amend or discontinue the Plan and the
Administrator may, at any time, amend or cancel any outstanding Award (or
provide substitute Awards at the same or reduced exercise or purchase price or
with no exercise or purchase price in a manner not inconsistent with the terms
of the Plan, but such price, if any, must satisfy the requirements which would
apply to the substitute or amended Award if it were then initially granted under
this Plan) for the purpose of satisfying changes in law or for any other lawful
purpose, but no such action shall adversely affect rights under any outstanding
Award without the holder's consent. If and to the extent determined by the
Administrator to be required to ensure that Incentive Stock Options granted
under the Plan are qualified under Section 422 of the Code, Plan amendments
shall be subject to approval by the Company's stockholders entitled to vote at a
meeting of stockholders. Notwithstanding the foregoing, without the prior
approval of the Company's stockholders entitled to vote at a meeting of
stockholders, no outstanding Award shall be amended to reduce its exercise or
purchase price or cancelled and replaced with a substitute Award at a lower
exercise or purchase price.

        Section 11.  STATUS OF PLAN

        With respect to the portion of any Award which has not been exercised
and any payments in cash, Stock or other consideration not received by a
participant, a participant shall have no rights greater than those of a general
creditor of the Company unless the Administrator shall otherwise expressly
determine in connection with any Award or Awards. In its sole discretion, the
Administrator may authorize the creation of trusts or other arrangements to meet
the Company's obligations to deliver Stock or make payments with respect to
Awards hereunder, provided that the existence of such trusts or other
arrangements is consistent with the foregoing sentence.

        Section 12.  GENERAL PROVISIONS

        (a)      NO DISTRIBUTION; COMPLIANCE WITH LEGAL REQUIREMENTS. The
Administrator may require each person acquiring Stock pursuant to an Award to
represent to and agree with the Company in writing that such person is acquiring
the shares without a view to distribution thereof. No shares of Stock shall be
issued pursuant to an Award until all applicable securities law and other legal
and stock exchange or similar requirements have been satisfied. The
Administrator may require the placing of such stop-orders and restrictive
legends on certificates for Stock and Awards as it considers appropriate.

        (b)      DELIVERY OF STOCK CERTIFICATES. Delivery of stock certificates
to participants under this Plan shall be deemed effected for all purposes when
the Company or a stock transfer agent of the Company shall have mailed such
certificates in the United States mail, addressed to the participant, at the
participant's last known address on file with the Company.

                                       12
<PAGE>

        (c)      OTHER COMPENSATION ARRANGEMENTS; NO EMPLOYMENT RIGHTS. Nothing
contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, and such arrangements may be either
generally applicable or applicable only in specific cases. The adoption of this
Plan and the grant of Awards do not confer upon any employee any right to
continued employment with the Company or any Subsidiary.

        Section 13.  EFFECTIVE DATE OF PLAN

        This Plan shall become effective when adopted by the Company's Board of
Directors, but no Award granted under the Plan shall become exercisable and no
shares shall be issuable under the Plan unless the Plan shall have been approved
by the Company's stockholders. If such stockholder approval is not obtained
within twelve (12) months of the Board's approval, then all Awards previously
granted under the Plan shall terminate, and no further Awards shall be granted
or issued.

        Section 14.  GOVERNING LAW

        This Plan shall be governed by California law except to the extent such
law is preempted by federal law; provided, however, that the Delaware General
Corporation Law shall apply to the issuance of Stock and other securities
hereunder. .

                                       13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]