Document:

Change of Control Agreement

   
 Exhibit 10.1
 [FORM OF AGREEMENT]
 ZIONS
BANCORPORATION
CHANGE IN CONTROL AGREEMENT
 SENIOR EXECUTIVES
  
 The Company is a party to a Change in Control Agreement
with each of Harris H. Simmons, David E. Blackford, A. Scott Anderson, John J. Gisi, W. David Hemingway (Named Executive Officers), as well as Doyle L. Arnold, chief financial officer, and certain other executive officers in the form attached
hereto. Each such agreement is dated August 19, 2002.
 
  

   [FORM OF AGREEMENT]
 ZIONS BANCORPORATION
CHANGE IN CONTROL AGREEMENT
 SENIOR EXECUTIVES
 August 19, 2002
 [Name]
[Address]
[Address]
 Dear [First Name]:
                   Zions Bancorporation (the “Company”) considers it essential to the
best interests of its shareholders to foster the continuous employment of key management personnel. In connection with this, the Company’s Board of Directors (the “Board”) recognizes that, as is the case with many publicly held
corporations, the possibility of a change in control of the Company may exist and that the uncertainty and questions that it may raise among management could result in the departure or distraction of management personnel to the detriment of the
Company and its shareholders.
                   The Board has determined that it is in the best interests of the Company
and its shareholders to reinforce and encourage the continued attention and dedication of members of the Company’s management, including yourself, to their assigned duties without the distraction arising from the event of any threat or
occurrence of a change in control of the Company.
                   In order to induce you to remain in the employ of the
Company or any of its affiliates (collectively, the “Company”), the Company hereby agrees that after this letter agreement (this “Agreement”) has been fully executed, you shall receive the severance benefits set forth in Section
5 of this Agreement in the event your employment with the Company is terminated under the circumstances described in Section 4 of this Agreement subsequent to a Change in Control (as defined in Section 2).
                   1.         Term of Agreement. This Agreement shall commence on the date hereof and shall continue in effect through December 31, 2004; provided, however, that commencing on
March 1, 2003 and on each March 1 thereafter, the term of this Agreement shall automatically be extended for one (1) additional year unless, not later than March 1 of that preceding year, the Company shall have given written notice to you that it
does not wish to extend this Agreement;
 2

  provided, further, that if a Change in Control occurs during the original or any extended term of this Agreement,
the term of this Agreement shall continue in effect for a period of not less than thirty-six (36) months beyond the month in which such Change in Control occurred.
                   2.         Change in Control. No benefits shall be payable under Section 5 of this Agreement unless there has been a Change in Control. A “Change in Control” shall mean:

	 	                  (a)         any Person (as defined 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 the Company representing 20%
or more of the combined voting power of the Company’s then outstanding securities (“Outstanding Company Voting Securities”); provided, however, that the event described in this subsection (a) shall not be deemed a Change in Control by virtue of any of the following acquisitions: (i) by the Company or any corporation controlled by the Company,
(ii) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, (iii) by any underwriter temporarily holding securities pursuant to an offering of such
securities, (iv) pursuant to a Non-Qualifying Transaction (as defined in subsection (c) below), (v) pursuant to any acquisition by you or any group of persons including you (or any entity controlled by you or any group of persons
including you), (vi) a transaction (other than one described in subsection (c) below) in which Outstanding Company Voting Securities are acquired from the Company, if a majority of the Continuing Directors (as defined in subsection (b)
below) approve a resolution providing expressly that the acquisition pursuant to this clause (vi) does not constitute a Change in Control under this subsection (a) for any or all purposes of this Agreement or (vii) any acquisition by
a Person of 20% of the Outstanding Company Voting Securities as a result of an acquisition of common stock of the Company by the Company which, by reducing the number of shares of common stock of the Company outstanding, increases the proportionate
number of shares beneficially owned by such Person to 20% or more of the Outstanding Company Voting Securities; provided, however, that if a Person shall
become the beneficial owner of 20% or more of the Outstanding Company Voting Securities by reason of a share acquisition by the Company as described above and shall, after such share acquisition by the Company, become the beneficial owner of any
additional shares of common stock of the Company, then such acquisition shall constitute a Change in Control;

	 	                  (b)         individuals who, on August 19, 2002, constitute the Board
(“Continuing Directors”), cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to such date whose election or nomination for
election was approved by a vote of at least a majority of the Continuing Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without
written objection to such nomination) shall be a Continuing Director; provided, however, that no individual initially elected or nominated as a director of
the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to
be a Continuing Director;

 3

 

	 	                  (c)         the consummation of a merger, consolidation, statutory share
exchange or similar form of corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s shareholders, whether for such transaction or the issuance of securities in the transaction (a
“Business Combination”), unless immediately following such Business Combination: (i) more than 50% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”),
or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 95% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”),
is represented by Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business
Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (ii) no person
(other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the
outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (iii) at least a majority of the members of the board of directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination are Continuing Directors (any Business Combination which satisfies all of the criteria specified in (i), (ii) and
(iii) above shall be deemed to be a “Non-Qualifying Transaction”); provided, however, that if Continuing Directors constitute a majority of the
Board immediately following the occurrence of a Business Combination, then a majority of Continuing Directors in office prior to the consummation of the Business Combination may approve a resolution providing expressly that such Business Combination
does not constitute a Change in Control under this subsection (c) for any or all purposes of this Agreement;

	 	                  (d)         the shareholders of the Company approve a plan of complete
liquidation or dissolution of the Company; or 

	 	                  (e)         the consummation of an agreement (or agreements) providing for the
sale or disposition by the Company of all or substantially all of the Company’s assets other than a sale or disposition which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent 50%
or more of the combined voting power of the Company or such surviving entity outstanding immediately after such sale or disposition.

                   3.         Accelerated Vesting Upon a Change in
Control.

	 	                  (a)         All outstanding options, if any, granted to you by the Board under
any of the Company’s stock option plans, incentive plans, or other similar plans (or options substituted therefor covering the stock of a successor corporation) shall become fully vested and exercisable upon a Change in Control as to all shares
of stock covered thereby, and the restricted period with respect to any restricted stock or any other equity

 4

 

	 	award granted to you thereunder shall lapse and such shares shall be distributed to you immediately upon a Change in Control.	

	 	                  (b)         All unpaid awards under the Senior Management Value Sharing Plan
(“Value Sharing Plan”) will be payable at the higher of their target value as established by the Executive Compensation Committee of the Board (the “Committee”) or their value calculated under the terms of the Value Sharing Plan
based on the average annual growth in Earnings per Share (as such term is defined in the Value Sharing Plan) and the average Tangible Return on Equity (as such term is defined in the Value Sharing Plan) from the inception of each Plan Period (as
such term is defined in the Value Sharing Plan) through the fiscal quarter ending prior to the effective date of the Change of Control. Any such payments will be pro-rated based on multiplying them times a fraction, the numerator of which is the
number of quarters completed in the performance cycle and the denominator of which is the original number of quarters in the performance cycle called for in the Value Sharing Plan.

                   4.         Termination of Employment Following a
Change in Control.

	 	                  (a)         General. During the
term of this Agreement, if a Change in Control shall have occurred, you shall be entitled to the benefits provided in Section 5(c) upon the subsequent termination of your employment, provided that such
termination occurs during the term of this Agreement and within the two (2) year period immediately following the date of such Change in Control, unless such termination is (i) because of your death or Disability (as defined in Section 4(b)),
(ii) by the Company for Cause (as defined in Section 4(c)) or (iii) by you other than for Good Reason (as defined in Section 4(d)).

	 	                  (b)         Disability. Your
employment may be terminated for Disability. “Disability” means your absence from the full-time performance of your duties with the Company for six (6) consecutive months as a result of your incapacity due to physical or mental illness as
determined by a physician selected by the Company and acceptable to you or by the company that administers the Company’s long-term disability plan in which you are participating. If the Company determines in good faith that your Disability has
occurred, it may give you written notice in accordance with Section 7 of its intention to terminate your employment. In such event, your employment shall terminate effective on the thirtieth (30th) day after your receipt of such notice (the
“Disability Effective Date”) unless within the thirty (30) days after such receipt, you shall not have returned to the full-time performance of your duties. 

	 	                  (c)         Cause. Termination
by the Company of your employment for “Cause” shall mean termination (i) upon your willful and continued failure to substantially perform your duties with the Company (other than any such failure resulting from your Disability or any
such actual or anticipated failure after your issuance of a Notice of Termination (as defined in Section 4(e)) for Good Reason (as defined in Section 4(d))), after a written demand for substantial performance is delivered to you by the Board,
which demand specifically identifies the manner in which the Board believes that you have not substantially performed your duties, (ii) upon your willful and

 5

 

	 	continued failure to substantially follow and comply with the specific and lawful directives of the Board, as reasonably determined by the Board (other than any such failure resulting from your Disability or any such
actual or anticipated failure after your issuance of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to you by the Board, which demand specifically identifies the manner in which the Board
believes that you have not substantially performed your duties, (iii) upon your commission of an act of fraud or dishonesty resulting in material economic or financial injury to the Company or (iv) upon your engagement in illegal conduct
or gross misconduct, in each case which is materially and demonstrably injurious to the Company. For purposes of this subsection (c), no act or failure to act shall be considered “willful” unless done or omitted to be done in bad
faith and without reasonable belief that your action or omission was in the best interests of the Company or its affiliates. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board, based upon the
advice of counsel for the Company or upon the instructions of the Company’s chief executive officer shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the Company. Cause shall not
exist unless and until the Company has delivered to you a copy of a resolution duly adopted by three-quarters (3/4) of the entire Board (excluding you if you are a Board member) at a
meeting of the Board called and held for such purpose (after reasonable notice to you and an opportunity for you, together with counsel, to be heard before the Board), finding that in the good faith opinion of the Board an event set forth in
clause (i), (ii), (iii) or (iv) has occurred and specifying the particulars thereof in detail. The Company must notify you of any event constituting Cause within ninety (90) days following the Company’s knowledge of its existence or such
event shall not constitute Cause under this Agreement.	

	 	                  (d)         Good Reason. You
shall be entitled to terminate your employment for Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without your express written consent, the occurrence after a Change in Control of any of the following
circumstances:

	 	                   (i)         the assignment to you of any duties materially inconsistent
with the position in the Company that you held immediately prior to the Change in Control, a significant adverse alteration in the nature or status of your responsibilities or the conditions of your employment from those in effect immediately prior
to such Change in Control, or any other action by the Company that results in a material diminution in your position, authority, duties or responsibilities;

	 	                   (ii)        the Company’s reduction by more than 10% of your annual total
compensation as in effect on the date hereof or as the same may be increased from time to time;

	 	                   (iii)       (1) the relocation of the Company’s offices at  which
you are principally employed immediately prior to the Change in Control (your “Principal Location”) which results in the one-way commuting distance for you increasing by more than fifty (50) miles from your primary residence
immediately

 6

 

	 	prior to a Change in Control, (2) the Company’s requiring you to be based anywhere other than your Principal Location or (3) the Company’s requiring you to travel on the Company’s business to an
extent substantially greater than your business travel obligations immediately prior to the Change in Control;

	 	                   (iv)       the Company’s failure to pay to you any portion of your current
compensation or to pay to you any portion of an installment of deferred compensation under any deferred compensation program of the Company within thirty (30) days after the date such compensation is due;

	 	                   (v)        the Company’s failure to continue (1) any material
employee benefit plan, compensation plan, or material fringe benefit plan in which you participate immediately prior to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan or (2) your participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount and cost of benefits provided and the level of your participation relative
to other participants, as existed immediately prior to the Change in Control;

	 	                   (vi)       any purported termination of your employment that is not effected
pursuant to a Notice of Termination satisfying the requirements of Section 4(e) hereof, which purported termination shall not constitute a termination for purposes of this Agreement; or

	 	                   (vii)      the failure of the Company to obtain the assumption agreement from any
successor as contemplated in Section 6(a).

	 	                  Notwithstanding the foregoing, the Company placing you on a paid leave of up to ninety (90) days, pending the determination
of whether there is a basis to terminate you for Cause, shall not constitute a “Good Reason” event; provided, that if you are subsequently terminated for Cause, then you shall repay any
amounts paid by the Company to you during such leave period.

	 	                  An isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company within ten (10)
days after receipt of notice thereof given by you shall not constitute a Good Reason event. Your right to terminate employment for Good Reason shall not be affected by your incapacity due to mental or physical illness, and your continued employment
shall not constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason; provided, however, that you must
provide a Notice of Termination within ninety (90) days following your knowledge of an event constituting Good Reason or such event shall not constitute Good Reason under this Agreement.

	 	                  (e)         Notice of Termination. Any purported termination of your employment by the Company or by you (other than termination due to death which shall terminate your employment automatically) shall be communicated by written Notice of

7

 

	 	Termination to the other party hereto in accordance with Section 7. “Notice of Termination” shall mean a notice that shall (i) indicate the specific termination provision in this Agreement relied upon,
(ii) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated and (iii) specify the Date of Termination (as defined
in Section 4(f)). The failure by you or the Company to set forth in such notice any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any of your or the Company’s rights hereunder or preclude you or the
Company from asserting such fact or circumstance in enforcing your or the Company’s rights hereunder.	

	 	                  (f)         Date of Termination.
“Date of Termination” shall mean (i) if your employment is terminated due to your death, the date of your death, (ii) if your employment is terminated for Disability, the Disability Effective Date, or (iii) if your employment is
terminated pursuant to Section 4(c) or (d) or for any other reason (other than death or Disability), the date specified in the Notice of Termination (which, in the case of a termination for Cause shall not be more than thirty (30) days after the
date such Notice of Termination is given, and in the case of a termination for Good Reason shall not be less than fifteen (15) nor more than sixty (60) days after the date such Notice of Termination is given), provided that the Company may
accelerate the Date of Termination to an earlier date by providing you with notice of such action, or, alternatively, the Company may place you on paid leave during such period.

                   5.         Compensation Upon Termination or
During Disability Following a Change in Control. Following a Change in Control during the term of this Agreement, you shall be entitled to the benefits described below during a period of Disability, or upon termination of
your employment, as the case may be, provided that such period or termination occurs during the term of this Agreement and within the two (2) year period immediately following the date of such Change in Control. The benefits to which you are
entitled, subject to the terms and conditions of this Agreement, are:

	 	                  (a)         During any period during which you fail to perform your full-time
duties with the Company as a result of your Disability, you shall continue to receive your base salary at the rate in effect at the commencement of any such period, together with all compensation payable to you under the Company’s disability
plan or program or other similar plan during such period, until your employment is terminated pursuant to Section 4(b) hereof. Thereafter, or in the event your employment is terminated by reason of your death, your benefits shall be determined, paid
and provided under the Company’s retirement, insurance and other benefit and compensation programs then in effect in accordance with the terms of such programs.

	 	                  (b)         If your employment shall be terminated (i) by the Company for
Cause or (ii) by you other than for Good Reason, the Company shall pay you (1) within thirty (30) days following the Date of Termination a lump sum cash amount equal to the sum of (A) your base salary through the Date of Termination at the rate in
effect at the time Notice of Termination is given plus (B) the unpaid portion, if any, of any annual bonus for any prior year and (2) all other amounts to which you are entitled under any 

 8

 

	 	benefit or compensation plan of the Company at the time such payments are due, and the Company shall have no further obligations to you under this Agreement.

	 	                  (c)         If your employment by the Company shall be terminated by you for
Good Reason or by the Company other than for Cause or Disability, then you shall be entitled to the benefits provided below:

	 	                   (i)         the Company shall pay to you (1) within ten (10) days
following the Date of Termination a lump sum cash amount equal to the sum of (A) your full base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given plus(B) the unpaid portion, if any, of any annual bonus, plus an amount equal to your targeted annual bonus, pro-rated from January 1 of the termination year through the Date of Termination and (2) all other amounts to which you
are entitled under any benefit or compensation plan of the Company at the time such payments are due;

	 	                   (ii)        the Company shall pay as severance pay to you within ten (10) days
following the Date of Termination a lump sum cash severance payment equal to three (3) times the sum of (1) your annual base salary as in effect as of the Date of Termination or immediately prior to the Change in Control, whichever is greater
plus (2)  your targeted annual bonus as in effect as of the Date of Termination or the average annual bonus received by you with respect to the three (3) years immediately prior to the Change in Control, whichever is
greater;

	 	                   (iii)       for a period of three (3) years, the Company shall continue to provide
you and your eligible family members, based on the cost sharing arrangement between you and the Company in effect on the date of the Change in Control, with medical and dental health benefits at least equal to those which would have been provided to
you and them if your employment had not been terminated or, if more favorable to you, as in effect generally at any time thereafter, provided, however,
that such benefits shall be secondary to any other coverage obtained by you and provided, further, that if the Company’s welfare plans do not permit such coverage, the Company will provide you and
your eligible family members with medical and dental health benefits (with the same after-tax effect) outside of such plans. At the termination of the benefits coverage under the preceding sentence, you and your eligible family members shall be
entitled to continuation coverage pursuant to Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”), Sections 601-608 of the Employee Retirement Income Security Act of 1974, as amended, and under any other applicable
law, to the extent required by such laws, as if you had terminated employment with the Company on the date such benefits coverage terminates;

	 	                   (iv)       for a period of two (2) years following the Date of Termination, the
Company shall, at its sole expense as incurred, provide you with outplacement services, the scope and provider of which shall be selected by you in your sole discretion, at an aggregate cost to the Company not to exceed twenty five percent (25%) of
your annual base salary as in effect as of the Date of 

 9

 

	 	Termination or immediately prior to the Change in Control, whichever is greater; and

	 	                   (v)        you shall be fully vested in your accrued benefits under any
qualified or nonqualified pension, profit sharing, deferred compensation or supplemental plans maintained by the Company for your benefit, except to the extent that the acceleration of vesting of such benefits would violate any applicable law or
require the Company to accelerate the vesting of the accrued benefits of all participants in such plan or plans, in which case the Company may elect to pay to you within thirty (30) days following the Date of Termination a lump sum cash payment
equal to the sum of (1) the value of such unvested accrued benefits in lieu of accelerating the vesting of your benefits plus (2) an amount equal to the amount the Company would have contributed to your account under the Company’s
401(k) plan as a matching contribution had you remained employed by the Company for three (3) years after your Date of Termination and had you made the maximum elected deferral contributions.

	 	          (vi)       (1)         Notwithstanding anything in this Agreement to the contrary, in the
event it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company or any entity which effectuates a Change in Control (or any of its affiliated entities)
to or for your benefit (whether pursuant to the terms of this Agreement or otherwise) (“Payments”) would be subject to the excise tax (“Excise Tax”) under Section 4999 of the Code, then the amounts payable to you under this
Agreement shall be reduced (reducing first the payments under Section 5(c)(ii), unless you elect an alternative method of reduction) to the maximum amount as will result in no portion of the Payments being subject to such excise tax (“Safe
Harbor Cap”). For purposes of reducing the Payments to the Safe Harbor Cap, only amounts payable to you under this Agreement (and no other Payments) shall be reduced, unless consented to by you.

	 	                     (2)         All determinations required to be made under this
Section 5(c)(vi) shall be made by the public accounting firm that is retained by the Company to audit the financial statements of the Company as of the date immediately prior to the Change in Control (“Accounting Firm”) which shall
provide detailed supporting calculations both to the Company and you within fifteen (15) business days of the receipt of notice from the Company or you that there has been a Payment, or such earlier time as is requested by the Company. In the event
that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, you may appoint another nationally recognized public accounting firm to make the determinations required hereunder
(which accounting firm shall then be referred to as the Accounting Firm hereunder). If payments are reduced to the Safe Harbor Cap, the Accounting Firm shall provide a reasonable opinion to you that you are not required to report any Excise Tax on
your federal income tax 

 10

 

	 	return. All fees, costs and expenses (including, but not limited to, the costs of retaining experts) of the Accounting Firm shall be borne by the Company. If the Accounting Firm determines that no Excise Tax is payable by
you, it shall furnish you with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on your applicable federal income tax return will not result in the imposition of a negligence or similar penalty. In
the event the Accounting Firm determines that the Payments shall be reduced to the Safe Harbor Cap, it shall furnish you with a written opinion to such effect. The determination by the Accounting Firm shall be binding upon the Company and you
(except as provided in subsection (3) below).	

	 	                     (3)         If it is established pursuant to a final
determination of a court or Internal Revenue Service (“IRS”) proceeding which has been finally and conclusively resolved, that Payments have been made to, or provided for the benefit of, you by the Company, which are in excess of the
limitations provided in this Section 5(c)(vi) (hereinafter referred to as an “Excess Payment”), such Excess Payment shall be deemed for all purposes to be a loan to you made on the date you received the Excess Payment and you shall repay
the Excess Payment to the Company on demand, together with interest on the Excess Payment at the applicable federal rate (as defined in Section 1274(d) of the Code) from the date of your receipt of such Excess Payment until the date of such
repayment. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the determination, it is possible that Payments which will not have been made by the Company should have been made (an “Underpayment”),
consistent with the calculations required to be made under this Section 5. In the event that it is determined (A) by the Accounting Firm, the Company (which shall include the position taken by the Company, or together with its consolidated group, on
its federal income tax return) or the IRS or (B) pursuant to a determination by a court, that an Underpayment has occurred, the Company shall pay an amount equal to such Underpayment to you within ten (10) days of such determination together with
interest on such amount at the applicable federal rate from the date such amount would have been paid to you until the date of payment.

                   6.         Successors; Binding
Agreement.

	 	                  (a)         The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you
to terminate your employment and receive compensation from the Company in the same amount and on the same terms 

 11

 

	 	to which you would be entitled hereunder if you terminate your employment for Good Reason following a Change in Control, except that, upon your written request, for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of Termination. Unless expressly provided otherwise, “Company” as used herein shall mean the Company as defined in this Agreement and any successor to its business and/or
assets as aforesaid. 	

	 	                  (b)         This Agreement shall inure to the benefit of and be
enforceable by you and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder had you continued
to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your estate.

                   7.         Notice. For
the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement, provided that all notices to the Company shall be directed to the attention of the Board with a copy to the Secretary of the Company, or
to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.
                   8.         Confidentiality and Non-Solicitation
Covenants.

	 	                  (a)         Confidentiality. You
hereby agree that commencing on the Date of Termination, you shall not, directly or indirectly, disclose or make available to any person, firm, corporation, association or other entity for any reason or purpose whatsoever, any Confidential
Information (as defined below). You agree that, upon termination of your employment with the Company, all Confidential Information in your possession that is in written or other tangible form (together with all copies or duplicates thereof,
including computer files) shall be returned to the Company and shall not be retained by you or furnished to any third party, in any form except as provided herein; provided, however, that you shall not be obligated to treat as confidential, or return to the Company copies of any Confidential Information that (i) was publicly known at the time of disclosure to you, (ii) becomes
publicly known or available thereafter other than by any means in violation of this Agreement or any other duty owed to the Company by any person or entity or (iii) is lawfully disclosed to you by a third party. As used in this Agreement, the
term “Confidential Information” means: information disclosed to you or known by you as a consequence of or through your relationship with the Company, about the customers, employees, business methods, public relations methods,
organization, procedures or finances, including, without limitation, information of or relating to customer lists, of the Company.

	 	                  (b)         Non-Solicitation.
You hereby agree that, for the period commencing on the Date of Termination and terminating on the first anniversary thereof, you shall not, either on your own account or jointly with or as a manager, agent, officer, 

12

 

	 	employee, consultant, partner, joint venturer, owner or shareholder or otherwise on behalf of any other person, firm or corporation, directly or indirectly solicit or attempt to solicit away from the Company any of its
officers or employees or offer employment to any person who is an officer or employee of the Company; provided, however, that a general advertisement to
which an employee of the Company responds shall in no event be deemed to result in a breach of this Section 8(b).	

                   9.         Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Utah without giving effect to its conflicts of laws rules.
                   10.        Joint and Several Liability. Any successors or assigns shall be jointly and severally liable with the Company under this Agreement.
                   11.        Miscellaneous. No
provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing and signed by you and such officer as may be specifically designated by the Board. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.
All references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. The section headings contained in this Agreement are for convenience only, and shall not affect the interpretation
of this Agreement.
                   12.        Withholding Taxes. The Company may withhold from all payments due to you (or your estate) hereunder all taxes which, by applicable federal, state, local or other law, the Company is required to withhold
therefrom.
                   13.        Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and
effect.
                   14.        Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.
                   15.        Legal Fees. In
addition to all other amounts payable to you under this Agreement, the Company shall pay to you all legal fees and expenses incurred by you in connection with any dispute arising out of or relating to this Agreement or the interpretation thereof
(including, without limitation, all such fees and expenses, if any, incurred in contesting or disputing any termination of your employment or in seeking to obtain or enforce any right or benefit provided by this Agreement, or in connection with any
tax audit or proceeding to the extent attributable to the application of Section 4999 of the Code to any payment or benefit provided hereunder), regardless of the outcome of such proceeding; provided, however, that you 
 13

  shall not be entitled to recover such fees and costs if the court or other tribunal or body hearing the dispute determines that you brought the claim in bad faith or that the claim was
frivolous.
                   16.        At-Will
Employment. Nothing in the foregoing diminishes or alters the Company’s policy of at-will employment for all employees, where both the Company and you may terminate the employment relationship at any time and for any
reason, with or without cause or notice. If your employment with the Company shall terminate prior to a Change in Control, you shall have no further rights under this Agreement; provided, however, that
any termination of your employment during the term of this Agreement and within the two (2) year period immediately following a Change in Control shall be subject to all of the provisions of this Agreement.
                   17.        Full Settlement.
The Company’s obligation to make any payments provided for in this Agreement and otherwise to perform its obligations hereunder shall be in lieu and in full settlement of all other severance payments to you under any other severance agreement
between you and the Company, and any severance plan of the Company. The Company’s obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against
you or others. In no event shall you be obligated to seek other employment or take other action by way of mitigation of the amounts payable to you under any of the provisions of this Agreement and, except as provided in Section 5(c)(iii), such
amounts shall not be reduced whether or not you obtain other employment. 
                   18.        Survival. The respective obligations and benefits afforded to the Company and you as provided in Sections 3, 5 (to the extent that payments or
benefits are owed as a result of a termination of employment that occurs during the term of this Agreement), 6, 8, 12, 15 and 17 shall survive the termination of this Agreement.
                   19.        Entire Agreement.
This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of any party hereto, and any prior agreement of the parties hereto in respect of the subject matter contained herein, including, without limitation, any prior severance agreements, is
hereby terminated and cancelled. Except as otherwise specifically provided in this Agreement, any of your rights hereunder shall be in addition to any rights you may otherwise have under benefit plans or agreements of the Company to which you are a
party or in which you are a participant, including, but not limited to, any Company sponsored employee benefit plans and stock options plans and provisions of this Agreement shall not in any way abrogate your rights under such other plans and
agreements.
 14

                    If this letter sets forth our agreement on the subject matter hereof, kindly sign
and return to the Company the enclosed copy of this letter, which shall then constitute our agreement on this subject.

		 	 	Sincerely,
ZIONS BANCORPORATION
	 	 	 	 	By: 	
 
						

	 	 	 	 	Its: 	
Chairman and CEO

	Agreed to this 19th day
 of August, 2002.	 	 	 
	
	 	 	

	
			
	[Name]	 	 	 

 15<PAGE>

                                                                    EXHIBIT 10.1

                                  CARDIMA, INC.

                              AMENDED AND RESTATED
                             1993 STOCK OPTION PLAN

                            (AS AMENDED IN JULY 2002)

     I.   PURPOSES OF THE PLAN

          This Amended and Restated 1993 Stock Option Plan (the "Plan") is
intended to promote the interests of Cardima, Inc., a Delaware corporation (the
"Corporation"), by providing a method whereby eligible individuals who provide
valuable services to the Corporation (or its parent or subsidiary corporations)
may be offered incentives and rewards which will encourage them to acquire a
proprietary interest, or otherwise increase their proprietary interest, in the
Corporation and continue to render services to the Corporation (or its parent or
subsidiary corporations).

          For purposes of the Plan, the following provisions shall be applicable
in determining the parent and subsidiary corporations of the Corporation:

               (i)   Any corporation (other than the Corporation) in an unbroken
     chain of corporations ending with the Corporation shall be considered to be
     a Parent corporation of the Corporation, provided each such corporation in
     the unbroken chain (other than the Corporation) owns, at the time of the
     determination, stock possessing fifty percent (50%) or more of the total
     combined voting power of all classes of stock in one of the other
     corporations in such chain.

               (ii)  Each corporation (other than the Corporation) in an
     unbroken chain of corporations beginning with the Corporation shall be
     considered to be a Subsidiary of the Corporation, provided each such
     corporation (other than the last corporation) in the unbroken chain owns,
     at the time of the determination, stock possessing fifty percent (50%) or
     more of the total combined voting power of all classes of stock in one of
     the other corporations in such chain.

     II.  ADMINISTRATION OF THE PLAN

          A.   A Committee comprised of non-employee members of the Board who
satisfy the requirements of Rule 16b-3 of the Securities Exchange Act of 1934
(the "1934 Act") as it is then in effect to exempt stock awards made hereunder
from the short-swing profit recovery rules of Section 16(b) of the 1934 Act (the
"Primary Committee") and who satisfy the requirements of Section 162(m) of the
Internal Revenue Code shall have sole and exclusive authority to administer the
Plan with respect to Section 16 Insiders.

          B.   Administration of the Plan with respect to all other persons
eligible to participate in the Plan may, at the Board's discretion, be vested in
the Primary Committee or a second committee comprised of one or more Board
members (the "Secondary Committee"), or the Board may retain the power to
administer the Plan with respect to all such persons. The members of the
Secondary Committee may be individuals who are Employees eligible to receive
option grants under the Plan or any stock option, stock appreciation, stock
bonus or other stock plan of the Corporation (or any Parent or Subsidiary) or
who have any other business relationship with the Corporation outside their
roles as members of the Board.

                                        1

<PAGE>

          C.   Members of the Primary Committee or any Secondary Committee shall
serve for such period of time as the Board may determine and may be removed by
the Board at any time. The Board may also at any time terminate the functions of
any Secondary Committee and reassume all powers and authority previously
delegated to such committee.

          D.   Each Plan Administrator shall, within the scope of its
administrative functions under the Plan, have full power and authority (subject
to the provisions of the Plan) to establish such rules and regulations as it may
deem appropriate for proper administration of the Plan and to make such
determinations under, and issue such interpretations of, the provisions of the
Plan and any outstanding options thereunder as it may deem necessary or
advisable. Decisions of the Plan Administrator within the scope of its
administrative functions under the Plan shall be final and binding on all
parties who have an interest in the Plan under its jurisdiction or any option
thereunder.

          E.   Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such committee shall
accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any grants under the Plan.

     III. ELIGIBILITY FOR OPTION GRANTS

          The persons eligible to receive option grants under the Plan are as
follows:

               (i)    key employees (including officers and directors) of the
     Corporation (or its parent or subsidiary corporations);

               (ii)   the non-employee members of the Board or the non-employee
     members of the board of directors of any parent or subsidiary corporation;
     and

               (iii)  those consultants who provide valuable services to the
     Corporation (or its parent or subsidiary corporations).

          The Plan Administrator shall have full authority to determine which
eligible individuals are to receive option grants under the Plan, the number of
shares to be covered by each such grant, whether the granted option is to be an
incentive stock option ("Incentive Option") which satisfies the requirements of
Section 422 of the Internal Revenue Code or a non-statutory option not intended
to meet such requirements, the time or times at which each such option is to
become exercisable, and the maximum term for which the option is to remain
outstanding.

     IV.  STOCK SUBJECT TO THE PLAN

          A. The stock issuable under the Plan shall be shares of the
Corporation's authorized but unissued or reacquired Common Stock. The aggregate
number of shares which may be issued over the term of the Plan shall not exceed
7,650,690 shares (on a post-split basis). The total number of shares issuable
under the Plan shall be subject to adjustment from time to time in accordance
with the provisions of this Section IV.

                                        2

<PAGE>

          B.   The number of shares of Common Stock available for issuance under
the Plan shall automatically increase on the first trading day of the 1998,
1999, 2000, 2001 and 2002 calendar years by an amount equal to three percent
(3%) of the shares of Common Stock outstanding, on December 31 of the
immediately preceding calendar year; but in no event shall any such annual
increase exceed 300,000 shares (on a post-split basis). For purposes of this
provision, the determination of the number of shares of Common Stock outstanding
shall include securities which are exercisable or convertible into shares of
Common Stock, including without limitation all outstanding stock options and
warrants.

          C.   No one person participating in the Plan may receive options for
more than 500,000 shares of Common Stock per calendar year, beginning with the
1996 calendar year.

          D.   Shares subject to outstanding options shall be available for
subsequent option grants under the Plan to the extent (i) options expire or
terminate for any reason prior to exercise in full and (ii) options are
cancelled in accordance with the cancellation-regrant provisions of Section VIII
of the Plan. Shares subject to outstanding options shall not be available for
subsequent option grants under the Plan to the extent options are surrendered in
accordance with the limited cash-out rights provisions of Section IX of the
Plan. Shares repurchased by the Corporation pursuant to its repurchase rights
under the Plan shall not be available for subsequent option grants.

          E.   In the event any change is made to the Common Stock issuable
under the Plan by reason of any stock split, stock dividend, combination of
shares, exchange of shares or other change affecting the outstanding Common
Stock as a class without receipt of consideration, appropriate adjustments shall
be made to (I) the aggregate number and/or class of shares issuable under the
Plan and (II) the aggregate number and/or class of shares and the option price
per share in effect under each outstanding option in order to prevent the
dilution or enlargement of benefits thereunder. The adjustments determined by
the Plan Administrator shall be final, binding and conclusive.

          F.   To the extent required by Section 260.140.45 of Title 10 of the
California Code of Regulations, the total number of shares of Common Stock
issuable upon exercise of all outstanding options and the total number of shares
of Common Stock provided for under any stock bonus or similar plan of the
Corporation shall not exceed the applicable percentage as calculated in
accordance with the conditions and exclusions of Section 260.140.45 of Title 10
of the California Code of Regulations, based on the shares of Common Stock of
the Corporation that are outstanding at the time the calculations is made./1/

     V.   TERMS AND CONDITIONS OF OPTIONS

          A.   Options granted pursuant to the Plan shall be authorized by
action of the Plan Administrator and may, at the Plan Administrator's
discretion, be either Incentive Options or non-statutory options. Individuals
who are not Employees (as defined in subsection 3.C below) may only be granted
non-statutory options. Each granted option shall be evidenced by one or more
instruments in the form approved by the Plan Administrator; provided, however,
that each such instrument shall comply with and incorporate the terms and
conditions specified below. Each instrument evidencing an Incentive Option
shall, in addition, be subject to the applicable provisions of Section VI.

          B.   Option Price.

----------
/1/  Section 260.140.45 generally provides that the total number of shares
issuable upon exercise of all outstanding options (exclusive of certain rights)
and the total number of shares called for under any stock bonus or similar plan
shall not exceed a number of shares which is equal to 30% of the then
outstanding shares of the issuer (convertible preferred or convertible senior
common shares counted on an as if converted basis), exclusive of shares subject
to promotional waivers under Section 260.141, unless a percentage higher than
30% is approved by at least two-thirds of the outstanding shares entitled to
vote.

                                        3

<PAGE>

          1.   The option price per share shall be fixed by the Plan
Administrator. In no event, however, shall the option price per share be less
than eighty-five percent (85%) of the fair market value of a share of Common
Stock on the date of the option grant or, in the case of an option granted to
the owner of stock (as determined under Section 424(d) of the Internal Revenue
Code) possessing ten percent (10%) or more of the total combined voting power of
all classes of stock of the Corporation or any one of its parent or subsidiary
corporations (such person to be herein referred to as a 10% Stockholder), the
option price per share shall not be less than one hundred and ten percent (110%)
of the Fair Market Value of one share of Common Stock on the grant date.

          2.   The option price shall become immediately due upon exercise of
the option and shall, subject to the provisions of Section X and the instrument
evidencing the grant, be payable in one or more of the forms specified below:

               (i)   cash or check drawn to the Corporation's order

               (ii)  in shares of Common Stock held by the optionee for the
     requisite period necessary to avoid a charge to the Corporation's earnings
     for financial reporting purposes and valued at fair market value on the
     Exercise Date; or

               (iii) to the extent the option is exercised for vested shares,
     through a special sale and remittance procedure pursuant to which the
     optionee is to provide irrevocable written instructions (I) to a
     Corporation-designated brokerage firm to effect the immediate sale of the
     purchased shares and remit to the Corporation, out of the sale proceeds
     available on the settlement date, an amount sufficient to cover the
     aggregate option price payable for the purchased shares plus all applicable
     Federal and State income and employment taxes required to be withheld by
     the Corporation by reason of such purchase and (II) concurrently to the
     Corporation to deliver the certificates for the purchased shares directly
     to such brokerage firm in order to effect the sale transaction.

          For purposes of this subparagraph B, the Exercise Date shall be the
first date on which there shall have been delivered to the Corporation both
written notice of the exercise of the option and, except to the extent such sale
and remittance procedure is utilized, payment of the option price for the
purchased shares.

          3.   The fair market value of a share of Common Stock on any relevant
date under subparagraph 1 above (and for all other valuation purposes under the
Plan) shall be determined in accordance with the following provisions:

               (i)   If the Common Stock is not at the time listed or admitted
     to trading on any stock exchange but is traded on the Nasdaq National
     Market System, the fair market value shall be the closing selling price of
     one share of Common Stock on the date in question, as such price is
     reported by the National Association of Securities Dealers through its
     Nasdaq system or any successor system. If there is no closing selling price
     for the Common Stock on the date in question, then the closing selling
     price on the last preceding date for which such quotation exists shall be
     determinative of fair market value.

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

                                        4

<PAGE>

     the date in question, then the fair market value shall be the closing
     selling price on the exchange on the last preceding date for which such
     quotation exists.

               (iii) If the Common Stock at the time is neither listed nor
     admitted to trading on any stock exchange nor traded in the
     over-the-counter market, or if the Plan Administrator determines that the
     value determined pursuant to subparagraphs (i) and (ii) above does not
     accurately reflect the fair market value of the Common Stock, then such
     fair market value shall be determined by the Plan Administrator after
     taking into account such factors as the Plan Administrator shall deem
     appropriate, including one or more independent professional appraisals.

          C.   Term and Exercise of Options.

          Each option granted under the Plan shall be exercisable at such time
or times, during such period, and for such number of shares as shall be
determined by the Plan Administrator and set forth in the instrument evidencing
such option, subject to the minimum vesting requirements of Rule 260.140.41(f)
of Title 10 of the California Code of Regulations, as applicable. No such
option, however, shall have a maximum term in excess of ten (10) years from the
grant date and no Incentive Option granted to a 10% Stockholder shall have a
maximum term in excess of five (5) years from the grant date. During the
lifetime of the optionee, the option shall be exercisable only by the optionee
and shall not be assignable or transferable by the optionee otherwise than by
will or by the laws of descent and distribution.

          D.   Effect of Termination of Employment.

          1.   Except to the extent otherwise provided pursuant to subparagraph
3.D below, the following provisions shall govern the exercise period applicable
to any options held by the optionee at the time of cessation of Service or
death.

               (i)   Should the optionee cease to remain in Service for any
     reason other than death or Disability, then the period during which each
     outstanding option held by such optionee is to remain exercisable shall be
     limited to the three (3)-month period following the date of such cessation
     of Service.

               (ii)  In the event such Service terminates by reason of
     Disability, then the period during which each outstanding option held by
     the optionee is to remain exercisable shall be limited to the six (6)-month
     period following the date of such cessation of Service. However, should
     such Disability be deemed to constitute Permanent Disability, then the
     period during which each outstanding option held by the optionee is to
     remain exercisable shall be extended by an additional six (6) months so
     that the exercise period shall be limited to the twelve (12)-month period
     following the date of the optionee's cessation of Service by reason of such
     Permanent Disability. For all purposes under the Plan, Disability shall
     mean the inability of an individual to engage in any substantial gainful
     activity by reason of any medically determinable physical or mental
     impairment and shall be determined by the Plan Administrator on the basis
     of such medical evidence as the Plan Administrator deems warranted under
     the circumstances. Disability shall be deemed to constitute Permanent
     Disability in the event that such Disability is expected to result in death
     or has lasted or can be expected to last for a continuous period of not
     less than twelve (12) months.

               (iii) Should the optionee die while holding one or more
     outstanding options, then the period during which each such option is to
     remain exercisable shall be limited to the twelve (12)-month period
     following the date of the optionee's death. During such limited period, the
     option may be exercised by the personal representative of the optionee's
     estate or by the person or persons to whom the option is transferred
     pursuant to the optionee's will or in accordance with the laws of descent
     and distribution.

                                        5

<PAGE>

               (iv)  Each such option shall, during such limited exercise
     period, be exercisable for any or all of the shares for which the option is
     exercisable on the date of the optionee's cessation of Service. Upon the
     expiration of such limited exercise period or (if earlier) upon the
     expiration of the option term, the option shall terminate and cease to be
     exercisable.

          2.   Under no circumstances shall any option be exercisable after the
specified expiration date of the option term.

          3.   For all purposes under the Plan, unless specifically provided
otherwise in the option agreement evidencing the option grant and/or the
purchase agreement evidencing the purchased shares, the optionee shall be deemed
to remain in Service for so long as such individual renders services on a
periodic basis to the Corporation or any parent or subsidiary corporation in the
capacity of an Employee, a non-employee member of the board of directors or a
consultant. The optionee shall be considered to be an Employee for so long as
such individual remains in the employ of the Corporation or one or more of its
parent or subsidiary corporations, subject to the control and direction of the
employer entity as to both the work to be performed and the manner and method of
performance.

          4.   The Board shall have full power and authority to extend the
period of time for which the option is to remain exercisable following the
optionee's termination of Service from the three (3)-month (six (6) months in
the case of Disability and twelve (12) months in the case of death or Permanent
Disability) or shorter period set forth in the option agreement to such greater
period of time as the Board shall deem appropriate; provided, that in no event
shall such option be exercisable after the specified expiration date of the
option term.

          E.   Stockholder Rights. An optionee shall have none of the rights of
a stockholder with respect to the shares subject to the option until such
individual shall have exercised the option and paid the option price.

          F.   Repurchase Rights. The shares of Common Stock acquired upon the
exercise of options granted under the Plan may be subject to one or more
repurchase rights of the Corporation in accordance with the following
provisions:

          1.   The Plan Administrator may in its discretion determine that it
shall be a term and condition of one or more options exercised under the Plan
that the Corporation (or its assignees) shall have the right, exercisable upon
the optionee's cessation of Service, to repurchase at the option price all or
(at the discretion of the Corporation and with the consent of the optionee) part
of the unvested shares of Common Stock at the time held by the optionee. Any
such repurchase right shall be exercisable by the Corporation (or its assignees)
upon such terms and conditions (including the establishment of the appropriate
vesting schedule and other provision for the expiration of such right in one or
more installments over the optionee's period of Service) as the Plan
Administrator may specify in the instrument evidencing such right and shall be
subject, to the extent required by Rule 260.140.41(f), to the minimum vesting
terms provided in such rule.

          2.   All of the Corporation's outstanding repurchase rights shall
automatically terminate upon the occurrence of any Corporate Transaction under
Section VII.

     VI.  INCENTIVE OPTIONS

                                        6

<PAGE>

          The terms and conditions specified below shall be applicable to all
Incentive Options granted under the Plan. Incentive Options may only be granted
to individuals who are Employees of the Corporation. Options which are
specifically designated as "non-statutory" options when issued under the Plan
shall not be subject to such terms and conditions.

          A.   Option Price. The option price per share of the Common Stock
subject to an Incentive Option shall in no event be less than one hundred
percent (100%) of the fair market value of a share of Common Stock on the date
of grant. If the individual to whom the option is granted is a 10% Stockholder,
then the option price per share shall not be less than one hundred and ten
percent (110%) of the Fair Market Value of one share of Common Stock on the
grant date.

          B.   Dollar Limitation. The aggregate fair market value (determined as
of the respective date or dates of grant) of the Common Stock for which one or
more options granted to any Employee under this Plan (or any other option plan
of the Corporation or its parent or subsidiary corporations) may for the first
time become exercisable as incentive stock options under the Federal tax laws
during any one calendar year shall not exceed the sum of One Hundred Thousand
Dollars ($100,000). To the extent the Employee holds two or more such options
which become exercisable for the first time in the same calendar year, the
foregoing limitation on the exercisability thereof as incentive stock options
under the Federal tax laws shall be applied on the basis of the order in which
such options are granted.

          Except as modified by the preceding provisions of this Section VI, all
the provisions of the Plan shall be applicable to the Incentive Options granted
hereunder.

     VII. CORPORATE TRANSACTIONS

          A.   In the event of one or more of the following transactions (a
"Corporate Transaction"):

               (i)    a merger or consolidation in which the Corporation is not
     the surviving entity, except for a transaction the principal purpose of
     which is to change the State of the Corporation's incorporation,

               (ii)   the sale, transfer or other disposition of all or
     substantially all of the assets of the Corporation in complete liquidation
     or dissolution of the Corporation, or

               (iii)  any reverse merger in which the Corporation is the
     surviving entity but in which all of the Corporation's outstanding voting
     stock is transferred to the acquiring entity or its wholly-owned
     subsidiary,

          then each option outstanding under the Plan shall automatically
accelerate so that each such option shall, immediately prior to the Corporate
Transaction, become fully exercisable for all of the shares of Common Stock at
the time subject to such option and may be exercised for any or all of those
shares or fully vested shares of Common Stock.

          B.   Immediately following the consummation of the Corporate
Transaction, all outstanding options shall terminate and cease to be
outstanding, except to the extent assumed by the successor Corporation (or
parent thereof).

          C.   Each outstanding option which is assumed in connection with the
Corporate Transaction or is otherwise to continue in effect shall be
appropriately adjusted, immediately after such Corporate Transaction, to apply
and pertain to the number and class of securities which would be issuable, in
consummation of such Corporate Transaction, to an actual holder of the same
number of shares of Common

                                        7

<PAGE>

Stock as are subject to such option immediately prior to such Corporate
Transaction, and appropriate adjustments shall also be made to the option price
payable per share, provided the aggregate option price payable for such
securities shall remain the same. Appropriate adjustments shall also be made to
the class and number of securities available for issuance under the Plan
following the consummation of such Corporate Transaction.

           D.  The portion of any Incentive Option accelerated in connection
with a Corporate Transaction shall remain exercisable as an Incentive Option
only to the extent the applicable One Hundred Thousand Dollar limitation is not
exceeded. To the extent such dollar limitation is exceeded, the accelerated
portion of such option shall be exercisable as a Non-Statutory Option under the
Federal tax laws.

           E.  The grant of options under this Plan shall in no way affect the
right of the Corporation to adjust, reclassify, reorganize or otherwise change
its capital or business structure or to merge, consolidate, dissolve, liquidate
or sell or transfer all or any part of its business or assets.

     VIII. CANCELLATION AND REGRANT OF OPTIONS

           The Plan Administrator shall have the authority to effect, at any
time and from time to time, with the consent of the affected optionees, the
cancellation of any or all outstanding options under the Plan and to grant in
substitution therefor new options under the Plan covering the same or different
numbers of shares of Common Stock but having an option price per share not less
than eighty-five percent (85%) of the fair market value of the Common Stock on
the new grant date (or one hundred percent (100%)) of such fair market value in
the case of an Incentive Option or, in the case of a 10% Stockholder, not less
than one hundred and ten percent (110%) of such fair market value).

     IX.   CASH-OUT OF OPTIONS

           A.  Once the Corporation's outstanding Common Stock is registered
under Section 12(g) of the 1934 Act, one or more optionees subject to the
short-swing profit restrictions of the Federal securities laws may, in the Plan
Administrator's sole discretion, be granted limited cash-out rights to operate
in tandem with their outstanding options under the Plan. Any option with such a
limited right in effect for at least six (6) months shall automatically be
cancelled upon the acquisition of fifty percent (50%) or more of the
Corporation's outstanding Common Stock (excluding the Common Stock holdings of
officers and directors of the Corporation who participate in this Plan) pursuant
to a tender or exchange offer made by a person or group of related persons
(other than the Corporation or a person that directly or indirectly controls, is
controlled by or is under common control with the Corporation) which the Board
does not recommend the Corporation's stockholders to accept. In return for the
cancelled option, the optionee shall be entitled to a cash distribution from the
Corporation in an amount equal to the excess of (i) the Cash-Out Price of the
shares of Common Stock in which the optionee is vested under the cancelled
option over (ii) the aggregate exercise price payable for such vested shares.
The cash distribution payable upon such cancellation shall be made within five
(5) days following the completion of such tender or exchange offer, and neither
the approval of the Plan Administrator nor the consent of the Board shall be
required in connection with such cancellation and distribution.

           B.  For purposes of calculating the cash distribution, the Cash-Out
Price per share of the vested Common Stock subject to the cancelled option shall
be deemed to be equal to the greater of (i) the fair market value per share on
the date of surrender, as determined in accordance with the valuation provisions
of subsection V.1.D, or (ii) the highest reported price per share paid in
effecting the tender or exchange offer. However, if the cancelled option is an
Incentive Option, then the Cash-Out Price shall not exceed the value per share
determined under clause (i) above.

                                        8

<PAGE>

          C.   The shares of Common Stock subject to any option cancelled for an
appreciation distribution in accordance with this Section IX shall not be
available for subsequent option grants under the Plan.

     X.   TAX WITHHOLDING

          A.   The Corporation's obligation to deliver shares of Common Stock
upon the exercise of options or upon the vesting of such shares under the Plan
shall be subject to the satisfaction of all applicable Federal, state and local
income and employment tax withholding requirements.

          B.   The Plan Administrator may, in its discretion, provide any or all
holders of Non-Statutory Options or unvested shares of Common Stock under the
Plan with the right to use shares of Common Stock in satisfaction of all or part
of the Taxes incurred by such holders in connection with the exercise of their
options. Such right may be provided to any such holder in either or both of the
following formats:

               (i)   Stock Withholding. The election to have the Corporation
     withhold, from the shares of Common Stock otherwise issuable upon the
     exercise of such Non-Statutory Option or the vesting of such shares, a
     portion of those shares with an aggregate Fair Market Value equal to the
     percentage of the taxes (not to exceed one hundred percent (100%))
     designated by the holder.

               (ii)  Stock Delivery. The election to deliver to the Corporation,
     at the time the Non-Statutory Option is exercised or the shares vest, one
     or more shares of Common Stock previously acquired by such holder (other
     than in connection with the option exercise or share vesting triggering the
     taxes) with an aggregate Fair Market Value equal to the percentage of the
     taxes (not to exceed one hundred percent (100%)) designated by the holder.

     XI.  LOANS

          A.   The Plan Administrator may assist any optionee (including an
optionee who is an officer or director of the Corporation) in the exercise of
one or more options granted to such optionee, including the satisfaction of any
Federal and State income and employment tax obligations arising therefrom, by
(i) authorizing the extension of a loan from the Corporation to such optionee,
or (ii) permitting the optionee to pay the option price for the purchased Common
Stock in installments over a period of years.

          B.   The terms of any loan or installment method of payment (including
the interest rate and terms of repayment) shall be established by the Plan
Administrator in its sole discretion. Loans or installment payments may be
granted with or without security or collateral. However, any loan made to a
consultant or other non-employee advisor must be secured by property other than
the purchased shares of Common Stock. In all events, the maximum credit
available to each optionee may not exceed the sum of (i) the aggregate option
price payable for the purchased shares (less the par value) plus (ii) any
Federal and State income and employment tax liability incurred by the optionee
in connection with such exercise.

          C.   The Plan Administrator may, in its absolute discretion, determine
that one or more loans extended under the financial assistance program shall be
subject to forgiveness by the Corporation in whole or in part upon such terms
and conditions as the Board in its discretion deems appropriate.

     XII. NO EMPLOYMENT OR SERVICE RIGHTS

          A.   Nothing in the Plan shall confer upon the optionee any right to
continue in the service or employ of the Corporation (or any parent or
subsidiary corporation of the Corporation employing

                                        9

<PAGE>

or retaining such optionee) for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Corporation (or any
parent or subsidiary corporation of the Corporation employing or retaining such
optionee) or of the optionee, which rights are hereby expressly reserved by
each, to terminate the Service of the optionee at any time for any reason, with
or without cause.

     XIII. AMENDMENT OF THE PLAN

     A.    The Board shall have complete and exclusive power and authority to
amend or modify the Plan in any or all respects whatsoever; provided, however,
that no such amendment or modification shall, without the consent of the
stockholders, adversely affect the rights and obligations with respect to
options at the time outstanding under the Plan; and provided, further that the
Board shall not, without the approval of the Corporation's stockholders, (i)
increase the maximum number of shares issuable under the Plan or the maximum
number of shares for which any person may be granted options per calendar year,
except for permissible adjustments under Section IV or (ii) materially modify
the eligibility requirements for the grant of options under the Plan.

     B.    Options may be granted under this Plan to purchase shares of Common
Stock in excess of the number of shares then available for issuance under the
Plan, provided (i) an amendment to increase the maximum number of shares
issuable under the Plan is adopted by the Board prior to the initial grant of
any such option and within one year thereafter such amendment is approved by the
Corporation's stockholders and (ii) each option granted is not to become
exercisable, in whole or in part, at any time prior to the obtaining of such
stockholder approval.

     XIV.  EFFECTIVE DATE AND TERM OF PLAN

     A.    The Plan became effective when adopted by the Board on June 10, 1993
and was approved by the Corporation's stockholders on September 20, 1993. The
Board amended the Plan on November 22, 1994 to (i) increase the number of shares
authorized for issuance thereunder by an additional 975,080 shares of Common
Stock (132,298 shares of Common Stock on a post-split basis) and (ii) revise the
limited period of exercisability when an optionee ceases to render Services to
the Corporation as a result of such optionee's Disability. The Corporation's
Stockholders approved the 1994 Amendment on December 29, 1994. The Board amended
the Plan on June 1, 1996 to increase the number of shares authorized for
issuance thereunder by an additional 640,079 shares (on a post-split basis) of
Common Stock and on October 2, 1996, to revise certain provisions in connection
with the filing of a Registration Statement for the initial public offering of
the Corporation's Common Stock hereafter referred to collectively as (the "1996
Amendments") The Corporation's Stockholders approved the 1996 Amendments on
October 2, 1996. The Board amended the Plan in March 1999 to increase the number
of shares authorized for issuance thereunder by an additional 2,000,000 shares
(on a post-split basis) of Common Stock. The Corporation's Stockholders approved
the 1999 Amendment on June 23, 1999. In February 2000, the Board decided to
unreserve the remaining 2,742,996 shares which had not been granted to utilize
those shares in a private placement financing. In June 2000, the Corporation's
Stockholder approved an amendment to increase the number of shares of Common
Stock reserved for issuance to replace the shares which were unreserved and used
for the private placement financing. The Board amended the Plan in February 2001
to increase the number of shares authorized for issuance thereunder by an
additional 2,000,000 shares (on a post-split basis) of Common Stock. The
Corporation's Stockholders approved the 2001 Amendment on May 10, 2001. The
Board amended the Plan in April 2002 to increase the number of shares authorized
for issuance thereunder by an additional 1,200,000 Shares of Common Stock (the
"2002 Amendment). The Corporation's Stockholders approved the 2002 Amendment on
June 20, 2002. The Plan was amended and restated effective July __, 2002 to
comply with certain requirements of the California Commissioner of Corporations.

     B.    The provisions of the 1996 Amendments shall apply only to options
granted and shares issued under the Plan from and after the date the Amendments
were adopted by the Board. Each option

                                       10

<PAGE>

issued and outstanding under the Plan immediately prior to such adoption of the
Amendments shall continue to be governed by the terms and conditions of the Plan
(and the instrument evidencing such grant) as in effect on the date each such
option was previously granted, and nothing in the Amendments shall be deemed to
affect or otherwise modify the rights or obligations of the stockholders of such
prior options with respect to the acquisition of shares of Common Stock
thereunder.

     C.    Unless sooner terminated in accordance with Section VII, the Plan
shall terminate upon the earlier of (i) November 21, 2004 or (ii) the date on
which all shares available for issuance under the Plan shall have been issued
pursuant to the exercise or surrender of options granted hereunder. If the date
of termination is determined under clause (i) above, then options outstanding on
such date shall thereafter continue to have force and effect in accordance with
the provisions of the instruments evidencing such options.

     XV.   USE OF PROCEEDS

           Any cash proceeds received by the Corporation from the sale of shares
pursuant to options granted under the Plan shall be used for general corporate
purposes.

     XVI.  INFORMATION OBLIGATION

           To the extent required by the California Commissioner of
Corporations, the Corporation shall deliver financial statements to the
Participants at least annually. This Section XVI shall not apply to key
Employees whose duties in connection with the Corporation assure them access to
equivalent information. The financial statements delivered pursuant to this
section shall be delivered not less than one hundred fifty (150) days after the
end of the Corporation's fiscal year.

     XVII. REGULATORY APPROVALS

           The implementation of the Plan, the granting of any option hereunder,
and the issuance of stock upon the exercise or surrender of any such option
shall be subject to the procurement by the Corporation of all approvals and
permits required by regulatory authorities having jurisdiction over the Plan,
the options granted under it and the stock issued pursuant to it.

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]