Document:

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                                                                   Exhibit 10.22
                               SECURITY AGREEMENT

INTRINSIX CORPORATION. of 33 Lyman Street, Westboro, Massachusetts 01581,
(hereinafter called "Debtor"), hereby grants to GINTARAS SUBATIS, 59 Dayton
Street, Quincy, Massachusetts 02169 (hereinafter called "Secured Party"), to
secure the payment and performance of all obligations of Debtor to Secured
Party, whether direct or indirect, absolute or contingent, now due or to become
due, now existing or hereinafter arising, (hereinafter called the
"Obligations"), a security interest in the following personal property of Debtor
and any and all additions, substitutions, accessions and proceeds thereto or
thereof (all of the same being hereinafter called the "Collateral"):

      A.    All goods, now existing or hereafter acquired or arising, including
            all machinery, equipment, furniture, fixtures, and inventory
            (including all goods, merchandise and other personal property, now
            owned or hereafter acquired by the Debtor, which are held for sale
            or lease or are furnished under a contract of service or are raw
            materials, work in process or materials used or consumed in the
            Debtor's business).

      B.    All present and future Accounts Receivable, contract rights, all
            interest in goods as to which an Account Receivable shall have
            arisen, all other rights to the payment of money, chattel paper,
            instruments, tax refunds, insurance premiums, rebates or insurance
            proceeds of any nature, rights as Lessee under Leases of equipment,
            choses in action, computer programs, data processing software,
            documents and general intangibles, now existing or hereafter
            acquired or arising, including, without limiting the generality of
            the foregoing, good will, trade secrets, customer lists, trade
            names, trade marks and patents. The claim of the Secured Party to
            the proceeds hereunder shall not be deemed a consent to the sale or
            other disposition of any of the above Collateral.

      C.    Proceeds and products of all of the foregoing.

      Debtor hereby warrants and covenants that:

      1.    The Collateral and Debtor's records with respect to its Accounts
            Receivable will be kept at Debtor's address shown above until such
            time as written consent to a change of location is obtained from
            Secured Party.

      2.    Except for the security interest granted hereby, and the items
            listed on Schedule A, Debtor is the owner of the Collateral free
            from all encumbrances and will defend the same against the claims
            and demands of all persons. Debtor will not pledge, mortgage or
            create, or suffer to exist, a security interest in the Collateral in
            favor of any person other than Secured Party, and will not sell or
            transfer the Collateral or any interest to except any person other
            than the Secured Party, and will not sell or transfer the Collateral
            or any interest therein except in the ordinary course of its
            business without the prior written consent of Secured Party.

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      3.    The Collateral shall remain personal property irrespective of the
            manner of its attachment to any real estate. If the Collateral is
            attached to real estate prior to the perfection of the security
            interest granted hereby, Debtor will on demand of Secured Party
            furnish to Secured Party a disclaimer or disclaimers, signed by all
            persons having an interest in the real estate, of any interest in
            the Collateral which is prior to Secured Party's interest. Debtor
            will notify Secured Party in writing of any intended sale, mortgage
            or conveyance of any real estate to which the Collateral is at any
            time attached, and will give written notice of the terms and
            conditions of this Agreement to any prospective purchaser,
            mortgagee, grantee or other transferee of the real estate or any
            interest therein.

      4.    Debtor will immediately notify Secured Party in writing of any
            change in address from that shown in this Agreement, shall at all
            reasonable times and from time to time allow Secured Party, by or
            through any of its officers, agents, attorneys or accountants to
            examine inspect or make extracts from Debtor's books and records,
            and shall do, make, execute and deliver all such additional and
            further acts, things, deeds, assurances, and instruments as Secured
            Party may require more completely to vest in and assure to Secured
            Party its rights hereunder or in any of the Collateral.

      5.    Debtor will keep the Collateral at all times insured by such
            insurance as Secured Party may from time to time require, and in any
            event and without specific request by Secured Party, will insure the
            Collateral against, fire, including so-called extended coverage,
            theft, and, in the case of any motor vehicles, collision, all
            insurance to be with such insurance companies as Secured Party shall
            approve, with loss thereon to be payable to Secured Party and Debtor
            as their respective interests may appear. All policies of insurance
            shall provide for not less than ten days notice of cancellation or
            change in form to Secured Party and, if requested by Secured Party,
            shall be delivered to and held by it until all of the Obligations
            have been fully performed.

      6.    Debtor will keep the Collateral in good order and repair, and will
            not use the same in violation of law or any policy of insurance
            thereon. Secured Party may inspect the Collateral at any reasonable
            time, wherever located. Debtor will pay promptly when due all taxes
            and assessments upon the Collateral or for its use or operation or
            upon this Agreement.

      7.    In its discretion, Secured Party may discharge taxes and other
            encumbrances at any time levied or placed on the Collateral, make
            repairs, thereof and place and pay for insurance thereon and pay any
            necessary filing fees. Debtor agrees to reimburse Secured Party on
            demand for any and all expenditures so made, and until paid the
            amount thereof shall be a debt secured by the Collateral. Secured
            Party shall have no obligation to Debtor to make any such
            expenditures nor shall the making thereof relieve Debtor of any
            default. Secured Party may act as attorney for Debtor in making,
            adjusting and settling claims under any insurance covering the
            Collateral.

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      8.    Debtor may have possession and use of the Collateral until default.
            Upon the happening of any of the following events or conditions,
            namely: (a) default in the payment or performance of any of the
            Obligations, of any liability or obligation to Secured Party of any
            endorser, guarantor or surety of or for any of the Obligations, or
            of any covenant or liability contained or referred to herein or in
            any note, instrument, document or Agreement evidencing any
            Obligations; (b) any representation or warranty of Debtor in this
            Agreement or made to Secured Party by Debtor to induce it to enter
            into this Agreement or to extend credit terms to Debtor proving
            false or erroneous in any material respect; (c) materially
            significant loss, theft, material damage, destruction, sale or
            encumbrance of or to the Collateral, or the making of any levy,
            thereon or seizure or attachment thereof by legal process; (d)
            death, dissolution, termination of existence, insolvency, business
            failure, appointment of a receiver of any part of the property of,
            assignment for the benefit of creditors by, or the commencement of
            any proceeding under any bankruptcy or insolvency laws by or against
            Debtor, or any endorser, guarantor or surety of or for any
            Obligation; (e) such a change in the management or ownership of
            Debtor as in the opinion of Secured Party increases its risk;
            thereupon, and as long as such default continues, Secured Party may
            upon notice or demand declare all of the Obligations to be
            immediately due and payable, and Secured Party shall then have in
            any jurisdiction where enforcement hereof is sought, in addition to
            all other rights and remedies, the rights and remedies of a secured
            party under the Uniform Commercial Code of Massachusetts, including
            without limitation thereto the right to take immediate possession of
            the Collateral, and for the purpose Secured Party may, so far as
            Debtor can give authority therefor, enter upon any premises on which
            the Collateral, or any part thereof, may be situated and remove the
            same therefrom. Debtor will upon demand make the Collateral
            available to Secured Party at a place and time designed by Secured
            Party which is reasonably convenient to both parties. Secured Party
            will give Debtor at least five days' prior written notice of the
            time and place of any public sale of the Collateral or of the time
            after which any private sale thereof is to be made. From the
            proceeds of the sale, Secured Party shall be entitled to retain (i)
            all sums secured hereby, (ii) its reasonable expenses of retaking,
            holding, preparing for sale and selling or (iii) reasonable legal
            expenses incurred by it in connection herewith and with such sale.
            No waiver by Secured Party of any default shall be effective unless
            in writing nor operate as a waiver of any other default or of the
            same default on another occasion. Any notice of default required
            under this Security Agreement will be given by the Secured Party to
            the Debtor by delivering it or mailing it by first class mail to the
            Debtor's principal place of business or at a different address if
            Debtor gives the Secured Party a notice of a different address.

      9.    Debtor waives, protest, notice of acceptance of this Agreement,
            notice of loans made, credit extended, collateral received or
            delivered or other action taken in reliance hereon and all other
            demands and notices of any description other than the notice of
            default previously referred to in Paragraph 8 above. With respect
            both to the Obligations and the Collateral, Debtor assents to any
            extension or

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            postponement of the time of payment or any other indulgence, to any
            substitution, exchange or release of collateral, to the addition or
            release of any party or person primarily or secondarily liable, to
            the acceptance of partial payment thereon and the settlement,
            compromising or adjusting of any thereof, all in such manner and at
            such time or times as Secured Party may deem advisable. Secured
            Party shall have no duty as to the collection or protection of the
            Collateral or any income thereon, nor as to the preservation of
            rights against prior parties, nor as to the preservation of any
            right pertaining thereto beyond the safe custody thereof. Secured
            Party may exercise its rights with respect to the Collateral without
            resorting or regard to other collateral or sources of reimbursement
            for liability. Secured Party shall not he deemed to have waived any
            of its rights upon or under the Obligations or the Collateral unless
            such wavier be in writing and signed by Secured Party. No delay or
            omission on the part of Secured Party in exercising any right shall
            operate as a waiver of such right or any other right. A waiver on
            any one occasion shall not be construed as a bar to or waiver of any
            right on any future occasion. All rights and remedies of Secured
            Party on the Obligations or the Collateral, whether evidenced hereby
            or by any other instrument or paper, shall be cumulative and may be
            exercised separately or concurrently.

      10.   This Agreement and all rights and obligations hereunder, including
            matters of construction, validity and performances, shall be
            governed by the law of Massachusetts. This Agreement is intended to
            take effect as a sealed instrument.

      11.   Only in the event of default and after notice as provided herein,
            the Debtor shall, at the request of the Secured Party, notify
            account debtors of the security interest of the Secured Party in any
            account and the Secured Party may, itself, at any time, so notify
            account debtors. Until the Secured Party requests that debtors on
            Account Receivables of the Debtor be notified of the Secured Party's
            security interest, the Debtor shall continue to collect them. The
            Secured Party may require Debtor to hold the proceeds received from
            collection, in trust for the Secured Party, without commingling the
            same with other funds of the Debtor, and to turn the same over to
            the Secured Party immediately upon receipt, in the identical form
            received. Insofar as Collateral shall consist of Accounts Receivable
            or Insurance Policies, instruments, chattel paper, choses in action
            or the like, the Secured Party may demand, collect, receipt for,
            settle, compromise, adjust, sue for, foreclose or realize upon
            Collateral, as the Secured Party may determine, and, for the purpose
            of realizing the Secured Party's rights therein, the Secured Party
            may receive, open and dispose of mail addressed to the Debtor and
            endorse Notes, checks, drafts, money orders, documents of title or
            other evidences of payment, shipment or storage or any form of
            collateral on behalf of and in the name of the Debtor.

      12.   In the event, at any time, whether prior or concurrently or
            subsequently to the execution of this Security Agreement, the
            Debtor, or any person, firm, corporation or any entity has
            guaranteed the Debtor's obligation to the Secured Party and has
            executed and delivered to the Secured Party a Real Estate Mortgage
            to secure the payment and performance of any Obligation to the
            Secured Party, whether direct

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            or indirect, absolute or contingent, due or to become due, now
            existing or hereafter arising (all of the foregoing, including, said
            Notes and Guarantees, being hereinafter called the "Obligation"),
            then, and in that event, the Debtor agrees that a default under the
            provisions of said Real Estate Mortgage, or other Obligation, shall
            constitute a breach of this Security Agreement and that all rights,
            remedies and paper granted to the Secured Party in this Security
            Agreement and to the Secured Party under said Real Estate Mortgage,
            Promissory Note and Guaranty shall be cumulative and may be
            exercised singly, jointly or concurrently and in any order and
            sequence.

      In the event of the Secured Party's exercising any of its rights and
remedies of a Secured Party under the Uniform Commercial Code of Massachusetts,
or under any Real Estate Mortgage given to the Secured Party by the Debtor, or
by any person, firm, corporation or other entity who has guaranteed the Debtor's
Obligations to the Secured Party, the Holder of this Security Agreement and/or
any Real Estate Mortgage or Promissory Note shall have the right to conduct a
sale under this Security Agreement and to foreclose any such Real Estate
Mortgage or Promissory Note, singly, jointly or concurrently, and in such order
as, in the opinion of the Holder thereof, it deems best to protect the interest
of said Secured Party. The Secured Party, in the event of a sale under this
Security Agreement or a Foreclosure Sale under any such Mortgage or Promissory
Note, shall have the right to offer all, or a portion, of the secured assets
hereunder and all, or a portion, of the real estate for sale, separately, or as
an entirety, or in any combination thereof, and the proceeds of such sale
accounted for in one account, without distinction between the items of security,
or without assigning to them any proportion of such proceeds, the Debtor hereby
waiving the application of any doctrine of marshaling.

      IN WITNESS WHEREOF, Debtor has executed this Agreement on this 22nd day of
November, 1994.

                                          /s/ Jim Gobes
                                          ----------------------------------

WITNESS:

/s/ Mark A. Beal
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                                                                   Exhibit 10.23

                             SEVA TECHNOLOGIES, INC.

                                 1997 STOCK PLAN

     1. Purposes of the Plan. The purposes of this Stock Plan are to attract and
retain the best available personnel for positions of substantial responsibility,
to provide additional incentive to Employees, Directors and Consultants and to
promote the success of the Company's business. Options granted under the Plan
may be Incentive Stock Options or Nonstatutory Stock Options, as determined by
the Administrator at the time of grant. Stock Purchase Rights may also be
granted under the Plan.

     2. Definitions. As used herein, the following definitions shall apply:

          (a) "Administrator" means the Board or any of its Committees as shall
     be administering the Plan in accordance with Section 4 hereof.

          (b) "Applicable Laws" means the requirements relating to the
     administration of stock option plans under U.S. state corporate laws, U.S.
     federal and state securities laws, the Code, any stock exchange or
     quotation system on which the Common Stock is listed or quoted and the
     applicable laws of any other country or jurisdiction where Options or Stock
     Purchase Rights are granted under the Plan.

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

          (d) "Code" means the Internal Revenue Code of 1986, as amended.

          (e) "Committee" means a committee of Directors appointed by the Board
     in accordance with Section 4 hereof.

          (f) "Common Stock" means the Common Stock of the Company.

          (g) "Company" means Seva Technologies, Inc., a California corporation.

          (h) "Consultant" means any person who is engaged by the Company or any
     Parent or Subsidiary to render consulting or advisory services to such
     entity.

          (i) "Director" means a member of the Board of Directors of the
     Company.

          (j) "Disability" means total and permanent disability as defined in
     Section 22(e)(3) of the Code.
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          (k) "Employee" means any person, including Officers and Directors,
     employed by the Company or any Parent or Subsidiary of the Company. A
     Service Provider shall not cease to be an Employee in the, case of (i) any
     leave of absence approved by the Company or (ii) transfers between
     locations of the Company or between the Company, its Parent, any
     Subsidiary, or any successor. For purposes of Incentive Stock Options, no
     such leave may exceed ninety days, unless reemployment upon expiration of
     such leave is guaranteed by statute or contract. If reemployment upon
     expiration of a leave of absence approved by the Company is not so
     guaranteed, on the 181st day of such leave any Incentive Stock Option held
     by the Optionee shall cease to be treated as an Incentive Stock Option and
     shall be treated for tax purposes as a Nonstatutory Stock Option. Neither
     service as a Director nor payment of a director's fee by the Company shall
     be sufficient to constitute "employment" by the Company.

          (l) "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

          (m) "Fair Market Value" means, as of any date, the value of Common
     Stock determined as follows:

               (i) If the Common Stock is listed on any established stock
          exchange or a national market system, including without limitation the
          Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq
          Stock Market, its Fair Market Value shall be the closing sales price
          for such stock (or the closing bid, if no sales were reported) as
          quoted on such exchange or system for the last market trading day
          prior to the time of determination, as reported in The Wall Street
          Journal or such other source as the Administrator deems reliable;

               (ii) If the Common Stock is regularly quoted by a recognized
          securities dealer but selling prices are not reported, its Fair Market
          Value shall be the mean between the high bid and low asked prices for
          the Common Stock on the last market trading day prior to the day of
          determination; or

               (iii) In the absence of an established market for the Common
          Stock, the Fair Market Value thereof shall be determined in good faith
          by the Administrator.

          (n) "Incentive Stock Option" means an Option intended to qualify as an
     incentive stock option within the meaning of Section 422 of the Code.

          (o) "Nonstatutory Stock Option" means an Option not intended to
     qualify as an Incentive Stock Option.

          (p) "Officer" means a person who is an officer of the Company within
     the meaning of Section 16 of the Exchange Act and the rules and regulations
     promulgated thereunder.

          (q) "Option" means a stock option granted pursuant to the Plan.

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          (r) "Option Agreement" means a written or electronic agreement between
     the Company and an Optionee evidencing the terms and conditions of an
     individual Option grant. The Option Agreement is subject to the terms and
     conditions of the Plan.

          (s) "Option Exchange Program" means a program whereby outstanding
     Options are exchanged for Options with a lower exercise price.

          (t) "Optioned Stock" means the Common Stock subject to an Option or a
     Stock Purchase Right.

          (u) "Optionee" means the holder of an outstanding Option or Stock
     Purchase Right granted under the plan.

          (v) "Parent" means a "parent corporation," whether now or hereafter
     existing, as defined in Section 424(e) of the Code.

          (w) "Plan" means this 1997 Stock Plan.

          (x) "Restricted Stock" means shares of Common Stock acquired pursuant
     to a grant of a Stock Purchase Right under Section 11 below.

          (y) "Section 16(b)" means Section 16(b) of the Securities Exchange Act
     of 1934, as amended.

          (z) "Service Provider" means an Employee, Director or Consultant.

          (aa) "Share" means a share of the Common Stock, as adjusted in
               accordance with Section 12 below.

          (bb) "Stock Purchase Right" means a right to purchase Common
               Stock pursuant to Section 11 below.

          (cc) "Subsidiary" means a "subsidiary corporation," whether now
               or hereafter existing, as defined in Section 424(f) of Code.

     3. Stock Subject to the Plan. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares which may be subject to option
and sold under the Plan is 8,000,000 Shares. The Shares may be authorized but
unissued, or reacquired Common Stock.

     If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated). However, Shares that have actually been issued under the Plan, upon
exercise of either an Option or Stock Purchase Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock

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are repurchased by the Company at their original purchase price, such Shares
shall become available for future grant under the Plan.

     4. Administration of the Plan.

     (a) Administrator. The Plan shall be administered by the Board or a
Committee appointed by the Board, which Committee shall be constituted to comply
with Applicable Laws.

     (b) Powers of the Administrator. Subject to the provisions of the Plan and,
in the case of a Committee, the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion:

          (i)    to determine the Fair Market Value;

          (ii)   to select the Service Providers to whom Options and Stock
     Purchase Rights may from time to time be granted hereunder;

          (iii)  to determine the number of Shares to be covered by each such
     award granted hereunder;

          (iv)   to approve forms of agreement for use under the Plan;

          (v)    to determine the terms and conditions, of any Option or Stock
     Purchase Right granted hereunder. Such terms and conditions include, but
     are not limited to, the exercise price, the time or times when Options or
     Stock Purchase Rights may be exercised (which may be based on performance
     criteria), any vesting acceleration or waiver of forfeiture restrictions,
     and any restriction or limitation regarding any Option or Stock Purchase
     Right or the Common Stock relating thereto, based in each case on such
     factors as the Administrator, in its sole discretion, shall determine;

          (vi)   to determine whether and under what circumstances an Option may
     be settled in cash under subsection 9(e) instead of Common Stock;

          (vii)  to reduce the exercise price of any Option to the then current
     Fair Market Value if the Fair Market Value of the Common Stock covered by
     such Option has declined since the date the Option was granted;

          (viii) to initiate an Option Exchange Program;

          (ix)   to prescribe, amend and rescind rules and regulations relating
     to the Plan, including rules and regulations relating to sub-plans
     established for the purpose of qualifying for preferred tax treatment under
     foreign tax laws;

          (x)    to allow Optionees to satisfy withholding tax obligations by
     electing to have the Company withhold from the Shares to be issued upon
     exercise of an Option or Stock Purchase Right that number of Shares having
     a Fair Market Value equal

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     to the amount required to be withheld. The Fair Market Value of the Shares
     to be withheld shall be determined on the date that the amount of tax to be
     withheld is to be determined. All elections by Optionees to have Shares
     withheld for this purpose shall be made in such form and under such
     conditions as the Administrator may deem necessary or advisable; and

          (xi) to construe and interpret the terms of the Plan and awards
     granted pursuant to the Plan.

     (c) Effect of Administrator's Decision. All decisions, determinations and
interpretations of the Administrator shall be final and binding on all
Optionees.

     5. Eligibility.

     (a) Nonstatutory Stock Options and Stock Purchase Rights may be granted to
Service Providers. Incentive Stock Options may be granted only to Employees.

     (b) Each Option shall be designated in the Option Agreement as either an
Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding
such designation, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Incentive Stock Options are exercisable for the
first time by the Optionee during any calendar year (under all plans of the
Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be
treated as Nonstatutory Stock Options. For purposes of this Section 5(b),
Incentive Stock Options shall be taken into account in the order in which they
were granted. The Fair Market Value of the Shares shall be determined as of the
time the Option with respect to such Shares is granted.

     (c) Neither the Plan nor any Option or Stock Purchase Right shall confer
upon any Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company's right to terminate such
relationship at any time, with or without cause.

     6. Term of Plan. The Plan shall become effective upon its adoption by the
Board. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 14 of the Plan.

     7. Term of Option. The term of each Option shall be stated in the Option
Agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof. In the case of an Incentive Stock Option granted
to an Optionee who, at the time the Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the term of the Option shall be five (5)
years from the date of grant or such shorter term as may be provided in the
Option Agreement.

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     8. Option Exercise Price and Consideration.

     (a) The per share exercise price for the Shares to be issued upon exercise
of an Option shall be such price as is determined by the Administrator, but
shall be subject to the following:

          (i) In the case of an Incentive Stock Option

               (A) granted to an Employee who, at the time of grant of such
          Option, owns stock representing more than ten percent (10%) of the
          voting power of all classes of stock of the Company or any Parent or
          Subsidiary, the exercise price shall be no less than 110% of the Fair
          Market Value per Share on the date of grant.

               (B) granted to any other Employee, the per Share exercise price
          shall be no less than 100% of the Fair Market Value per Share on the
          date of grant.

          (ii) In the case of a Nonstatutory Stock Option

               (A) granted to a Service Provider who, at the time of grant of
          such Option, owns stock representing more than ten percent (10%) of
          the voting power of all classes of stock of the Company or any Parent
          or Subsidiary, the exercise price shall be no less than 110% of the
          Fair Market Value per Share on the date of the grant.

               (B) granted to any other Service Provider, the per Share exercise
          price shall be no less than 85% of the Fair Market Value per Share on
          the date of grant.

          (iii) Notwithstanding the foregoing, Options may be granted with a per
     Share exercise price other than as required above pursuant to a merger or
     other corporate transaction.

     (b) The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) consideration received by the Company
under a cashless exercise program implemented by the Company in connection with
the Plan, or (6) any combination of the foregoing methods of payment. In making
its determination as to the type of consideration to accept, the Administrator
shall consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

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     9. Exercise of Option.

     (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted
hereunder shall be exercisable according to the terms hereof at such times and
under such conditions as determined by the Administrator and set forth in the
Option Agreement. Except in the case of Options granted to Officers, Directors
and Consultants, Options shall become exercisable at a rate of no less than 20%
per year over five (5) years from the date the Options are granted. Unless the
Administrator provides otherwise, vesting of Options granted hereunder shall be
tolled during any unpaid leave of absence. An Option may not be exercised for a
fraction of a Share.

     An Option shall be deemed exercised when the Company receives: (i) written
or electronic notice of exercise (in accordance with the Option Agreement) from
the person entitled to exercise the Option, and (ii) full payment for the Shares
with respect to which the Option is exercised. Full payment may consist of any
consideration and method of payment authorized by the Administrator and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of
an Option shall be issued in the name of the Optionee or, if requested by the
Optionee, in the name of the Optionee and his or her spouse. Until the Shares
are issued (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the
Shares, notwithstanding the exercise of the Option. The Company shall issue (or
cause to be issued) such Shares promptly after the Option is exercised. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 12 of
the Plan.

     Exercise of an Option in any manner shall result in a decrease in the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

     (b) Termination of Relationship as a Service Provider. If an Optionee
ceases to be a Service Provider, such Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement (of at least
thirty (30) days) to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the Option
as set forth in the Option Agreement). In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for three (3) months
following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified by
the Administrator, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

     (c) Disability of Optionee. If an Optionee ceases to be a Service Provider
as a result of the Optionee's Disability, the Optionee may exercise his or her
Option within such period of time as is specified in the Option Agreement (of at
least six (6) months) to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement).

                                     - 7 -
<PAGE>

In the absence of a specified time in the Option Agreement, the Option shall
remain exercisable for twelve (12) months following the Optionee's termination.
If, on the date of termination, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

     (d) Death of Optionee. If an Optionee dies while a Service Provider, the
Option may be exercised within such period of time as is specified in the Option
Agreement (of at least six (6) months) to the extent that the Option is vested
on the date of death (but in no event later than the expiration of the term of
such Option as set forth in the Option Agreement) by the Optionee's estate or by
a person who acquires the right to exercise the Option by bequest or
inheritance. In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to the
entire Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan. If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

     (e) Buyout Provisions. The Administrator may at any time offer to buy out
for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

     10. Non-Transferability of Options and Stock Purchase Rights. Options and
Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     11. Stock Purchase Rights.

     (a) Rights to Purchase. Stock Purchase Rights may be issued either alone,
in addition to, or in tandem with other awards granted under the Plan and/or
cash awards made outside of the Plan. After the Administrator determines that it
will offer Stock Purchase Rights under the Plan, it shall advise the offeree in
writing or electronically of the terms, conditions and restrictions related to
the offer, including the number of Shares that such person shall be entitled to
purchase, the price to be paid, and the time within which such person must
accept such offer. The terms of the offer shall comply in all respects with
Section 260.140.42 of Title 10 of the California Code of Regulations. The offer
shall be accepted by execution of a Restricted Stock purchase agreement in the
form determined by the Administrator.

     (b) Repurchase Option. Unless the Administrator determines otherwise, the
Restricted Stock purchase agreement shall grant the Company a repurchase option
exercisable upon the voluntary or involuntary termination of the purchaser's
service with the Company for any reason (including death or disability). The
purchase

                                     - 8 -
<PAGE>

price for Shares repurchased pursuant to the Restricted Stock purchase agreement
shall be the original price paid by the purchaser and may be paid by
cancellation of any indebtedness of the purchaser to the Company. The repurchase
option shall lapse at such rate as the Administrator may determine. Except with
respect to Shares purchased by Officers, Directors and Consultants, the
repurchase option shall in no case lapse at a rate of less than 20% per year
over five years from the date of purchase.

     (c) Other Provisions. The Restricted Stock purchase agreement shall contain
such other terms, provisions and conditions not inconsistent with the Plan as
may be determined by the Administrator in its sole discretion.

     (d) Rights as a Shareholder. Once the Stock Purchase Right is exercised,
the purchaser shall have rights equivalent to those of a shareholder and shall
be a shareholder when his or her purchase is entered upon the records of the
duly authorized transfer agent of the Company. No adjustment shall be made for a
dividend or other right for which the record date is prior to the date the Stock
Purchase Right is exercised, except as provided in Section 12 of the Plan.

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

     (a) Changes in Capitalization. Subject to any required action by the
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company. The conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option or Stock Purchase Right.

     (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Optionee as soon
as practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may provide for an Optionee to have the right to
exercise his or her Option until fifteen (15) days prior to such transaction as
to all of the Optioned Stock covered thereby, including Shares as to which the
Option would not otherwise be exercisable. In addition, the Administrator may
provide that any Company repurchase

                                     - 9 -
<PAGE>

option applicable to any Shares purchased upon exercise of an Option or Stock
Purchase Right shall lapse as to all such Shares, provided the proposed
dissolution or liquidation takes place at the time and in the manner
contemplated. To the extent it has not been previously exercised, an Option or
Stock Purchase Right will terminate immediately prior to the consummation of
such proposed action.

     (c) Merger or Asset Sale. In the event of a merger of the Company with or
into another corporation, or the sale of substantially all of the assets of the
Company, each outstanding Option and Stock Purchase Right shall (i) be assumed,
(ii) exchanged for an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation or (iii)
terminate, all as provided for herein. In the event that the successor
corporation refuses to assume or substitute for the Option or Stock Purchase
Right, to the extent that 20% of the Optioned Stock has not already vested,
Optionee shall vest in and have the right to exercise the Option or Stock
Purchase Right as to 20% of the Optioned Stock. If 20% of an Option or Stock
Purchase Right becomes vested and exercisable, as provided for in the preceding
sentence, in lieu of assumption or substitution in the event of a merger or sale
of assets, the Administrator shall notify the Optionee in writing or
electronically that 20% of the Option or Stock Purchase Right shall be
exercisable for a period of fifteen (15) days from the date of such notice, and
the Option or Stock Purchase Right shall terminate upon the expiration of such
period. All Optioned Stock that is not assumed or accelerated as provided for
herein, shall terminate and be of no further force and effect. For the purposes
of this paragraph, the Option or Stock Purchase Right shall be considered
assumed if, following the merger or sale of assets, the option or right confers
the right to purchase or receive, for each Share of Optioned Stock subject to
the Option or Stock Purchase Right immediately prior to the merger or sale of
assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets is not solely common
stock of the successor corporation or its Parent, the Administrator may, with
the consent of the successor corporation, provide for the consideration to be
received upon the exercise of the Option or Stock Purchase Right, for each Share
of Optioned Stock subject to the Option or Stock Purchase Right, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger or sale of assets.

     13. Time of Granting Options and Stock Purchase Rights. The date of grant
of an Option or Stock Purchase Right shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option or Stock Purchase Right is so granted within a reasonable time after the
date of such grant.

                                     - 10 -
<PAGE>

     14. Amendment and Termination of the Plan.

     (a) Amendment and Termination. The Board may at any time amend, alter,
suspend or terminate the Plan.

     (b) Shareholder Approval. The Board shall obtain shareholder approval of
any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

     (c) Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

     15. Conditions Upon Issuance of Shares.

     (a) Legal Compliance. Shares shall not be issued pursuant to the exercise
of an Option unless the exercise of such Option and the issuance and delivery of
such Shares shall comply with Applicable Laws and shall be further subject to
the approval of counsel for the Company with respect to such compliance.

     (b) Investment Representations. As a condition to the exercise of an
Option, the Administrator may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

     16. Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

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

     18. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the degree and manner
required under Applicable Laws.

     19. Information to Optionees and Purchasers. The Company shall provide to
each Optionee and to each individual who acquires Shares pursuant to the Plan,
not less frequently than annually during the period such Optionee or purchaser
has one or more

                                     - 11 -
<PAGE>

 Options or Stock Purchase Rights outstanding, and, in the case of an individual
who acquires Shares pursuant to the Plan, during the period such individual owns
such Shares, copies of annual financial statements. The Company shall not be
required to provide such statements to key employees whose duties in connection
with the Company assure their access to equivalent information.

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