Document:

1st Amendment to AMO, Dated 10/21/2003

 EXHIBIT 10.4 
  
 FIRST AMENDMENT 
 TO 
 ADVANCED MEDICAL OPTICS, INC. 
 EXECUTIVE DEFERRED COMPENSATION PLAN 
  
 The ADVANCED MEDICAL OPTICS, INC. EXECUTIVE DEFERRED COMPENSATION PLAN (the “Plan”) is hereby amended as follows: 
  

	I.	Article XII is amended by adding the following Section 12.5: 

  
 12.5    Payment of After-Tax Amounts 
  
 Notwithstanding any other provision of the Plan, any amounts credited to a Participant’s Deferral
Account, as decreased for net investment losses but not increased for net investment gains, that were reported as taxable income to the Participant in the year credited under the Allergan EDCP shall be distributed to such Participant as soon as
administratively practicable. 
  

	II.	This First Amendment shall be effective as of September 24, 2003. 

  

	III.	IN WITNESS WHEREOF, Advanced Medical Optics, Inc. hereby executes this First Amendment to the Advanced Medical Optics, Inc. Executive Deferred Compensation Plan on this 21st day of October, 2003. 

 

	ADVANCED MEDICAL OPTICS, INC.
		
	By:	 	 /s/ AIMEE S. WEISNER

	 	

	 	 	 Aimee Weisner
 Corporate Vice President, General Counsel, and Secretary<PAGE>

                                                                     Exhibit 4.1

                           FIRST AVENUE NETWORKS, INC.

                                STOCK OPTION PLAN

(1)    Purpose. The purpose of the First Avenue Networks, Inc. Stock Option and
Restricted Stock Purchase Plan, as amended from time to time (the "Plan") is to
promote the interests of First Avenue Networks, Inc., a Delaware corporation
(the "Company"), and any Parent or Subsidiary thereof and the interests of the
Company's stockholders by providing an opportunity to selected employees,
directors and officers of the Company or any Parent or Subsidiary thereof as of
the date of the adoption of the Plan or at any time thereafter to purchase
Common Stock of the Company. By encouraging such stock ownership the Company
seeks to attract, retain and motivate such employees, directors and officers and
other persons and to encourage such employees, directors and officers and other
persons to devote their best efforts to the business and financial success of
the Company. It is intended that this purpose will be effected by the granting
of "non-qualified stock options" and/or "incentive stock options" to acquire the
Common Stock of the Company. Under the Plan, the Committee (as hereinafter
defined) shall have the authority (in its sole discretion) to grant "incentive
stock options" within the meaning of Section 422(b) of the Code and
"non-qualified stock options" as described in Treasury Regulation Section 1.83-7
or any successor regulation thereto.

(2)    Definitions. For purposes of the Plan, the following terms used herein
shall have the following meanings, unless a different meaning is clearly
required by the context:

       A. "Board of Directors" shall mean the Board of Directors of the Company.

       B. "Code" shall mean the Internal Revenue Code of 1986, as amended.

       C. "Committee" shall mean the committee of the Board of Directors
       referred to in Section 5 hereof, provided, that if no such committee is
       appointed by the Board of Directors, the Board of Directors shall have
       all of the authority and obligations of the Committee under the Plan.

       D. "Common Stock" shall mean the Common Stock $.001 par value, of the
       Company.

       E. "Company" has the meaning set forth in Section 1.

       F. "Employee" shall mean with respect to an ISO, any person, including
       without limitation, an officer of the Company, who, at the time an ISO is
       granted to such person hereunder, is employed by the Company or any
       Parent or Subsidiary of the Company, and (ii) with respect to a
       Non-Qualified Option, any person employed by, or performing services for,
       the Company or any Parent or Subsidiary of the Company, including,
       without limitation, consultants, officers and directors.

       G. "Fair Market Value" of a share of Common Stock as of any day shall
       mean the average of the closing prices of sales of shares of Common Stock
       on all national securities exchanges on which the Common Stock may at the
       time be listed or, if there shall have been no sales on any such day, the
       average of the highest bid and lowest asked prices on all such exchanges
       at the end of such day, or, if on any day the Common Stock shall not be
       so listed, the average of the representative bid and asked prices quoted
       in the NASDAQ system as of 3:30 p.m., New York time, on such day, or, if
       on any day the Common Stock shall not be quoted in the NASDAQ system, the
       average of the high and

<PAGE>

       low bid and asked prices on such day in the over-the-counter market as
       reported by National Quotation Bureau Incorporated, or any single
       successor organization. If on any applicable day the Common Stock is not
       listed on any national securities exchange or quoted in the NASDAQ system
       or the over-the-counter market, the fair market value of a share of
       Common Stock on such day shall be the fair market value determined in
       good faith by the Board of Directors.

       H. "ISO" shall mean an Option granted to a Participant pursuant to the
       Plan that constitutes and shall be treated as an "incentive stock option"
       as defined in Section 422(b) of the Code.

       I. "Named Executive Officers" shall have the meaning set forth in Section
       12(a).

       J. "Non Qualified Option" shall mean an Option granted to a Participant
       pursuant to the Plan that is intended to be, and qualifies as, a "non
       qualified stock option" as described in Treasury Regulation Section
       1.83-7 or any successor regulation thereto and that shall not constitute
       or be treated as an ISO.

       K. "Option" shall mean any ISO or Non-Qualified Option granted to an
       Employee pursuant to the Plan.

       L. "Participant" shall mean any Employee to whom an Option is granted
       under the Plan.

       M. "Parent" of the Company shall have the meaning of "parent corporation"
       set forth in Section 424(e) of the Code.

       N. "Plan" has the meaning set forth in Section 1.

       O. "Subsidiary" of the Company shall have the meaning of "subsidiary
       corporation" set forth in Section 424(f) of the Code.

(3)    Eligibility. Options may be granted to any Employee. The Committee shall
have the sole authority to select the persons to whom Options are to be granted
hereunder, and to determine whether a person is to be granted a Non Qualified
Option, an ISO or any combination thereof. No person shall have any right to
participate in the Plan. Any person selected by the Committee for participation
during any one period will not by virtue of such participation have the right to
be selected as a Participant for any other period.

(4)    Common Stock Subject to the Plan.

       A. Number of Shares. The total number of shares of Common Stock for which
       Options may be granted under the Plan shall not exceed in the aggregate
       One Million Four Hundred Forty Thousand (1,440,000) shares of Common
       Stock (subject to adjustment as provided in Section 7 hereof).

       B. Reissuance. The shares of Common Stock that may be subject to Options
       granted under the Plan may be either authorized and unissued shares or
       shares reacquired at any time and now or hereafter held as treasury stock
       as the Committee may determine. In the event that any outstanding Option
       expires or is terminated or forfeited for any reason, the shares of
       Common Stock allocable to the unexercised, terminated, or forfeited
       portion of such Option may again be subject to an Option granted under
       the Plan. If any shares of

<PAGE>

       Common Stock issued or sold pursuant to the exercise of an Option shall
       have been repurchased by the Company, then such shares may again be
       subject to an Option granted under the Plan. In the event that shares of
       Common Stock are delivered to the Company in full or partial payment of
       the exercise price for an Option, the number of shares of Common Stock
       available for future grants pursuant to this Plan shall be reduced only
       by the net number of shares of Common Stock issued upon the exercise of
       the Option. Notwithstanding the foregoing provisions of this Section,
       shares of Common Stock subject to an Option that is awarded to a Named
       Executive Officer and that is cancelled, shall not again be available for
       grant under the Plan.

       C. Special ISO Limitations.

              1. The aggregate Fair Market Value (determined as of the date an
              ISO is granted) of the shares of Common Stock with respect to
              which ISOs are exercisable for the first time by an Employee
              during any calendar year (under all incentive stock option plans
              of the Company or any Parent or Subsidiary of the Company) shall
              not exceed $100,000. To the extent such limitations is exceeded,
              such Option shall be considered a Non Qualified Option for
              purposes of this Plan.

              2. No ISO shall be granted to an Employee who, at the time the ISO
              is granted, owns (actually or constructively under the provisions
              of Section 424(d) of the Code) stock possessing more than 10% of
              the total combined voting power of all classes of stock of the
              Company or any Parent or Subsidiary of the Company, unless (i) the
              option price is at least 110% of the Fair Market Value (determined
              as of the time the ISO is granted) of the shares of Common Stock
              subject to the ISO and (ii) the ISO by its terms is not
              exercisable more than five years from the date it is granted.

       D. Limitations Not Applicable to Non-Qualified Options. Notwithstanding
       any other provision of the Plan, the provisions of Sections 4.3(a) (other
       than the second sentence thereof) and (b) shall not apply, nor shall be
       construed to apply, to any Non-Qualified Option granted under the Plan.

(5)    Administration of the Plan

       A. Administration. Subject to the proviso in Section 2.3 hereof, the Plan
       shall be administered by a committee of the Board of Directors (the
       "Committee") established by the Board of Directors. The Committee shall
       be appointed from time to time by, and shall serve at the pleasure of,
       the Board of Directors. To the extent deemed necessary or appropriate by
       the Board of Directors or the Committee, the Committee may be limited to
       specified members for purposes of complying with applicable provisions of
       the Code, securities laws, or the rules of any exchange on which the
       Common Stock is traded.

       B. Grant of Options. The Committee shall have the sole authority and
       discretion under the Plan (i) to select the Employees who are to be
       granted Options hereunder, (ii) to designate whether any Option to be
       granted hereunder is to be an ISO or a Non-Qualified Option; (iii) to
       establish the number of shares of Common Stock that may be subject to
       each Option; (iv) to determine the time and the conditions subject to
       which Options may be exercised in whole or in part; (v) to determine the
       amount (not less than the par value per share) and the form of the
       consideration that may be used to purchase shares of

<PAGE>

       Common Stock upon exercise of any Option (including, without limitation,
       the circumstances under which issued and outstanding shares of Common
       Stock owned by a Participant may be used by the Participant to exercise
       an Option); (vi) to impose restrictions and/or conditions with respect to
       shares of Common Stock acquired upon exercise of an Option; (vii) to
       determine the circumstances under which shares of Common Stock acquired
       upon exercise of any Option may be subject to repurchase by the Company;
       (viii) to determine the circumstances and conditions subject to which
       shares acquired upon exercise of an Option may be sold or otherwise
       transferred, including, without limitation, the circumstances and
       conditions subject to which a proposed sale of shares of Common Stock
       acquired upon exercise of an Option may be subject to the Company's right
       of first refusal (as well as the terms and conditions of any such right
       of first refusal), (ix) to establish a vesting provision for any Option
       relating to the time when (or the circumstances under which) the Option
       may be exercised by a Participant, including, without limitation, vesting
       provisions that may be contingent upon (A) the Company's meeting
       specified financial goals, (B) a change of control of the Company or (C)
       the occurrence of other specified events; (x) to accelerate the time when
       outstanding Options may be exercised, and (xi) to establish any other
       terms, restrictions and/or conditions applicable to any Option not
       inconsistent with the provisions of the Plan.

       C. Interpretation. The Committee shall be authorized to interpret the
       Plan in its discretion and may, from time to time, adopt such rules and
       regulations, not inconsistent with the provisions of the Plan, as it may
       deem advisable to carry out the purposes of the Plan.

       D. Finality. The interpretation and construction by the Committee of any
       provision of the Plan, any Option granted hereunder or any agreement
       evidencing any such Option shall be final and conclusive upon all
       parties.

       E. Expenses, Etc. All expenses and liabilities incurred by the Committee
       in the administration of the Plan shall be borne by the Company. The
       Committee may employ attorneys, consultants, accountants or other persons
       in connection with the administration of the Plan. The Company, and its
       officers and directors, shall be entitled to rely upon the advice,
       opinions or valuations of any such persons. No member of the Committee
       shall be liable for any action, determination or interpretation taken or
       made in good faith with respect to the Plan or any Option granted
       hereunder.

(6)    Terms and Conditions of Options.

       A. ISOs. The terms and conditions of each ISO granted under the Plan
       shall be specified by the Committee and shall be set forth in an ISO
       agreement between the Company and the Participant in such form as the
       Committee shall approve. The terms and conditions of each ISO shall be
       such that each ISO issued hereunder shall constitute and shall be treated
       as an "incentive stock option" as defined in Section 422(b) of the Code;
       provided that to the extent an Option intended to be an ISO does not
       qualify as an ISO under the applicable requirements of the Code, such
       Option shall be considered a Non Qualified Option for purposes of this
       Plan. The terms and conditions of any ISO granted hereunder need not be
       identical to those of any other ISO granted hereunder.

       The terms and conditions of each ISO shall include the following:

<PAGE>

       1. The option price shall be fixed by the Committee but shall in no event
       be less than 100% (or 110% in the case of an Employee referred to in
       Section 4.3(b) hereof) of the Fair Market Value of the shares of Common
       Stock subject to the ISO on the date the ISO is granted.

       2. ISOs, by their terms, shall not be transferable otherwise than by will
       or the laws of descent and distribution, and, during a Participant's
       lifetime an ISO shall be exercisable only by the Participant.

       3. The Committee shall fix the term of all ISOs granted pursuant to the
       Plan (including, without limitation, the date on which such ISO shall
       expire and terminate), provided, however, that such term shall in no
       event exceed ten years from the date on which such ISO is granted (or, in
       the case of an ISO granted to an Employee referred to in Section 4.3(b)
       hereof, such term shall in no event exceed five years from the date on
       which such ISO is granted). Each ISO shall be exercisable in such amount
       or amounts, under such conditions and at such times or intervals or in
       such installments as shall be determined by the Committee in its sole
       discretion.

       4. To the extent that the Company or any Parent or Subsidiary of the
       Company is required to withhold any Federal, state or local taxes in
       respect of any compensation income realized by any Participant as a
       result of any "disqualifying disposition" of any shares of Common Stock
       acquired upon exercise of an ISO granted hereunder, the Company shall
       deduct from any payments of any kind otherwise due to such Participant
       the aggregate amount of such Federal, state or local taxes required to be
       so withheld or, if such payments are insufficient to satisfy such
       Federal, state or local taxes, such Participant will be required to pay
       to the Company, or make other arrangements satisfactory to the Company
       regarding payment to the Company of, the aggregate amount of any such
       taxes. All matters with respect to the total amount of taxes to be
       withheld in respect of any such compensation income shall be determined
       by the Board of Directors, in its sole discretion.

       5. The terms and conditions of each ISO may include the following
       provisions:

              a) In the event a Participant's employment on a full-time basis by
              the Company or any Parent or Subsidiary of the Company shall be
              terminated for cause or shall be terminated by the Participant for
              any reason whatsoever other than as a result of the Participant's
              death or "disability" (within the meaning of Section 22(e)(3) of
              the Code), the unexercised portion of any ISO held by such
              Participant at that time may only be exercised within one month
              after the date on which the Participant ceased to be so employed,
              and only to the extent that the Participant could have otherwise
              exercised such ISO as of the date on which he ceased to be so
              employed.

              b) In the event a Participant's employment on a full-time basis by
              the Company or any Parent or Subsidiary of the Company shall
              terminate for any reason other than (x) a termination specified in
              clause (i) above or (y) by reason of the Participant's death or
              "disability" (within the meaning of Section 22(e)(3) of the Code),
              the unexercised portion of any

<PAGE>

               ISO held by such Participant at that time may only be exercised
               within three months after the date on which the Participant
               ceased to be so employed, and only to the extent that the
               Participant could have otherwise exercised such ISO as of the
               date on which he ceased to be so employed.

               c) In the event a Participant shall cease to be employed by the
               Company or any Parent or Subsidiary of the Company on a full-time
               basis by reason of his "disability" (within the meaning of
               Section 22(e)(3) of the Code), the unexercised portion of any ISO
               held by such Participant at that time may only be exercised
               within one year after the date on which the Participant ceased to
               be so employed, and only to the extent that the Participant could
               have otherwise exercised such ISO as of the date on which he
               ceased to be so employed.

               d) In the event a Participant shall die while in the employ of
               the Company or a Parent or Subsidiary of the Company (or within a
               period of one month after ceasing to be an Employee for any
               reason other than his "disability" (within the meaning of Section
               22(e)(3) of the Code) or within a period of one year after
               ceasing to be an Employee by reason of such "disability"), the
               unexercised portion of any ISO held by such Participant at the
               time of his death may only be exercised within one year after the
               date of such Participant's death, and only to the extent that the
               Participant could have otherwise exercised such ISO at the time
               of his death. In such event, such ISO may be exercised by the
               executor or administrator of the Participant's estate or by any
               person or persons who shall have acquired the ISO directly from
               the Participant by bequest or inheritance.

       B. Non-Qualified Options. The terms and conditions of each Non-Qualified
       Option granted under the Plan shall be specified by the Committee, in its
       sole discretion, and shall be set forth in a written option agreement
       between the Company and the Participant in such form as the Committee
       shall approve. The terms and conditions of each Non-Qualified Option will
       be such (and each Non-Qualified Option agreement shall expressly so
       state) that each Non-Qualified Option issued hereunder shall not
       constitute nor be treated as an "incentive stock option" as defined in
       Section 422(b) of the Code, but will be a "non-qualified stock option"
       for Federal, state and local income tax purposes. The terms and
       conditions of any Non-Qualified Option granted hereunder need not be
       identical to those of any other Non-Qualified Option granted hereunder.

       The terms and conditions of each Non-Qualified Option Agreement shall
include the following:

            1. The option (exercise) price shall be fixed by the Committee and
            may be equal to, more than or less than (but not less than the par
            value per share) 100% of the Fair Market Value of the shares of
            Common Stock subject to the Non-Qualified Option on the date such
            Non-Qualified Option is granted.

            2. The Committee shall fix the term of all Non-Qualified Options
            granted pursuant to the Plan (including, without limitation, the
            date on which such Non-Qualified Option shall expire and terminate).
            Such term may be more than ten

<PAGE>

               years from the date on which such Non-Qualified Option is
               granted. Each Non-Qualified Option shall be exercisable in such
               amount or amounts, under such conditions (including, without
               limitation, provisions governing the rights to exercise such
               Non-Qualified Option), and at such times or intervals or in such
               installments as shall be determined by the Committee in its sole
               discretion.

               3. Non-Qualified Options shall not be transferable otherwise than
               by will or the laws of descent and distribution, and during a
               Participant's lifetime a Non-Qualified Option shall be
               exercisable only by the Participant.

               4. The terms and conditions of each Non-Qualified Option may
               include the following provisions:

                    a) In the event a Participant's employment on a full-time
                    basis by the Company or any Parent or Subsidiary of the
                    Company shall be terminated for cause or shall be terminated
                    by the Participant for any reason whatsoever other than as a
                    result of the Participant's death or "disability" (within
                    the meaning of Section 22(e)(3) of the Code), the
                    unexercised portion of any Non-Qualified Option held by such
                    Participant at that time may only be exercised within one
                    month after the date on which the Participant ceased to be
                    an Employee, and only to the extent that the Participant
                    could have otherwise exercised such Non-Qualified Option as
                    of the date on which he ceased to be an Employee.

                    b) In the event a Participant's employment on a full-time
                    basis by the Company or any Parent or Subsidiary of the
                    Company shall terminate for any reason other than (x) a
                    termination specified in clause (i) above or (y) by reason
                    of the Participant's death or "disability" (within the
                    meaning of Section 22(e)(3) of the Code), the unexercised
                    portion of any Non-Qualified Option held by such Participant
                    at that time may only be exercised within three months after
                    the date on which the Participant ceased to be an Employee,
                    and only to the extent that the Participant could have
                    otherwise exercised such Non-Qualified Option as of the date
                    on which he ceased to be an Employee.

                    c) In the event a Participant shall cease to be an Employee
                    of the Company or any Parent or Subsidiary of the Company on
                    a full-time basis by reason of his "disability" (within the
                    meaning of Section 22(e)(3) of the Code), the unexercised
                    portion of any Non-Qualified Option held by such Participant
                    at that time may only be exercised within one year after the
                    date on which the Participant ceased to be an Employee, and
                    only to the extent that the Participant could have otherwise
                    exercised such Non-Qualified Option as of the date on which
                    he ceased to be an Employee.

                    d) In the event a Participant shall die while an Employee of
                    the Company or a Parent or Subsidiary of the Company (or
                    within a period of one month after ceasing to be an Employee
                    for any reason other than his "disability" (within the
                    meaning of Section 22(e)(3) of the Code) or within a period
                    of one year after ceasing to be an Employee by reason of
                    such "disability"), the unexercised portion of any
                    Non-Qualified Option

<PAGE>

                    held by such Participant at the time of his death may only
                    be exercised within one year after the date of such
                    Participant's death, and only to the extent that the
                    Participant could have otherwise exercised such
                    Non-Qualified Option at the time of his death. In such
                    event, such Non-Qualified Option may be exercised by the
                    executor or administrator of the Participant's estate or by
                    any person or persons who shall have acquired the
                    Non-Qualified Option directly from the Participant by
                    bequest or inheritance.

               5. To the extent that the Company (or any Parent or Subsidiary
               thereof) is required to withhold any Federal, state or local
               taxes in respect of any compensation income realized by any
               Participant in respect of a Non-Qualified Option granted
               hereunder or in respect of any shares of Common Stock acquired
               upon exercise of a Non-Qualified Option, the Company shall deduct
               from any payments of any kind otherwise due to such Participant
               the aggregate amount of such Federal, state or local taxes
               required to be so withheld or, if such payments are insufficient
               to satisfy such Federal, state or local taxes, or if no such
               payments are due or to become due to such Participant, then, such
               Participant will be required to pay to the Company, or make other
               arrangements satisfactory to the Company regarding payment to the
               Company of, the aggregate amount of any such taxes. All matters
               with respect to the total amount of taxes to be withheld in
               respect of any such compensation income shall be determined by
               the Committee, in its sole discretion.

(7)   Adjustments.

               1. In the event that, after the adoption of the Plan by the Board
               of Directors, the outstanding shares of the Company's Common
               Stock shall be increased or decreased or changed into or
               exchanged for a different number or kind of shares of stock or
               other securities of the Company or of another entity in each such
               case (x) without receiving compensation therefore in money,
               services or property and (y) through reorganization, merger or
               consolidation, recapitalization, reclassification, stock split,
               split-up, combination or exchange of shares, declaration of any
               dividends payable in Common Stock, or any similar event, the
               Committee in good faith shall, subject to the provisions of
               Section 7(c) below if the circumstances therein specified are
               applicable, appropriately adjust (i) the number of shares of
               Common Stock (and the option price per share) subject to the
               unexercised portion of any outstanding Option (to the nearest
               possible full share); provided, however, that the limitations of
               Section 424 of the Code shall apply with respect to adjustments
               made to ISOs and (ii) the number of shares of Common Stock for
               which Options may be granted under the Plan, as set forth in
               Sections 4.1 and 12(c) hereof, and such adjustments shall be
               effective and binding for all purposes of the Plan.

               2. If any capital reorganization or reclassification of the
               capital stock of the Company or any consolidation or merger of
               the Company with another entity, or the sale of all or
               substantially all its assets to another entity, shall be effected
               in such a way that holders of Common Stock shall be entitled to
               receive stock, securities or assets with respect to or in
               exchange for Common Stock, then, subject to the provisions of
               Section 7(c) below if the circumstances therein specified are
               applicable, each holder of an Option shall thereafter have the
               right

<PAGE>

          to purchase, upon the exercise of the Option in accordance with the
          terms and conditions specified in the option agreement governing such
          Option and in lieu of the shares of Common Stock immediately
          theretofore receivable upon the exercise of such Option, such shares
          of stock, securities or assets (including, without limitation, cash)
          as may be issued or payable with respect to or in exchange for a
          number of outstanding shares of such Common Stock equal to the number
          of shares of such Common Stock immediately theretofore so receivable
          had such reorganization, reclassification, consolidation, merger or
          sale not taken place.

          3. Notwithstanding Sections 7(a) and 7(b) hereof, in the event of (i)
          any offer to holders of the Company's Common Stock generally relating
          to the acquisition of all or substantially all of their shares,
          including, without limitation, through purchase, merger or otherwise,
          or (ii) any proposed transaction generally relating to the acquisition
          of substantially all of the assets or business of the Company (herein
          sometimes referred to as an "Acquisition"), the Board of Directors
          may, in its sole discretion, cancel any outstanding Options (provided,
          however, that the limitations of Section 424 of the Code shall apply
          with respect to adjustments made to ISOs) and pay or deliver, or cause
          to be paid or delivered, to the holder thereof an amount in cash or
          securities having a value (as determined by the Board of Directors
          acting in good faith) equal to the product of (A) the number of shares
          of Common Stock (the "Option Shares") that, as of the date of the
          consummation of such Acquisition, the holder of such Option had become
          entitled to purchase (and had not purchased) multiplied by (B) the
          amount, if any, by which (1) the formula or fixed price per share paid
          to holders of shares of Common Stock pursuant to such Acquisition
          exceeds (2) the option price applicable to such Option Shares.

<PAGE>

(8) Effect of the Plan on Employment Relationship. Neither the Plan nor any
Option granted hereunder to a Participant shall be construed as conferring upon
such Participant any right to continue in the employ of (or otherwise provide
services to) the Company or any Subsidiary or Parent thereof, or limit in any
respect the right of the Company or any Subsidiary or Parent thereof to
terminate such Participant's employment or other relationship with the Company
or any Subsidiary or Parent, as the case may be, at any time.

(9) Amendment of the Plan. The Board of Directors may amend the Plan from time
to time as it deems desirable; provided, however, that, without the approval of
the holders of a majority of the outstanding capital stock of the Company
entitled to vote thereon or consent thereto, the Board of Directors may not
amend the Plan (i) to increase (except for increases due to adjustments in
accordance with Section 7 hereof) the aggregate number of shares of Common Stock
for which Options may be granted hereunder or (ii) to change the class of
Employees eligible to receive ISOs under the Plan.

(10) Termination of the Plan. The Board of Directors may terminate the Plan at
any time. Unless the Plan shall theretofore have been terminated by the Board of
Directors, the Plan shall terminate ten years after the date of its initial
adoption by the Board of Directors. No Option may be granted hereunder after
termination of the Plan. The termination or amendment of the Plan shall not
alter or impair any rights or obligations under any Option theretofore granted
under the Plan.

(11) Effective Date of the Plan. The Plan shall be effective as of December 20,
2001, the date on which the Plan was adopted by the Board of Directors and
approved by the requisite holders of outstanding capital stock of the Company.

(12) Named Executive Officers.

          1. The provisions of this Section 12 shall apply only to those
          executive officers (i) whose compensation is required to be reported
          in the Company's proxy statement pursuant to Item 402(a)(3)(i) and
          (ii) (or any successor thereto) of Regulation S-K (or any successor
          thereto) under the general rules and regulations under the Exchange
          Act and (ii) whose total compensation, including estimated or future
          compensation attributable to Options under this Plan or any other plan
          of the Company or any Parent or Subsidiary thereof, is determined by
          the Board of Directors to possibly be subject to the limitations on
          deductions imposed by Section 162(m) of the Code ("Named Executive
          Officers"). In the event of any inconsistencies between this Section
          12 and the other Plan provisions as they pertain to Named Executive
          Officers, the provisions of this Section 12 shall control.

          2. No amendment of this Plan with respect to any Named Executive
          Officer may be made which would (i) increase the maximum amount that
          can be paid to any one Participant pursuant to this Plan or (ii)
          modify the requirements as to eligibility for participation in this
          Plan, unless the Company's shareholders have first approved such
          amendment in a manner which would permit the deduction under Section
          162(m) (or any successor thereto) of the Code of such payment in the
          fiscal year it is paid. The Board of Directors shall amend this
          Section 12 and such other provisions as it deems appropriate, to cause
          amounts payable to Named Executive Officers to satisfy the performance
          based compensation

<PAGE>

          requirements of Section 162(m) (or any successor thereto) and the
          Treasury regulations promulgated thereunder.

          3. Notwithstanding any provision of this Plan (including the
          provisions of this Section 12 ) to the contrary, the amount of
          compensation which a Named Executive Officer may receive with respect
          to Options which are granted hereunder shall be based solely on an
          increase in the value of the applicable shares of Common Stock after
          the date of grant of such Options. Thus, no Option with an exercise
          price less than the Fair Market Value of the related shares of Common
          Stock on the date of grant may be granted hereunder to a Named
          Executive Officer. Furthermore, the maximum number of shares of Common
          Stock with respect to which Options may be granted hereunder to any
          Named Executive Officer during any calendar year may not exceed One
          Million (1,000,000) shares of Common Stock, subject to adjustment as
          provided in Section 7.

Compliance with Securities and Other Laws. As a condition to the issuance or
          transfer of any Option or any security issuable in connection with
          such Option, the Company may require an opinion of counsel,
          satisfactory to the Company, to the effect that (i) such issuance
          and/or transfer will not be in violation of any applicable securities
          laws and (ii) such issuance and/or transfer will not be in violation
          of the rules and regulations of any securities exchange or automated
          quotation system on which the Common Stock is listed or admitted to
          trading. Further, the Company may refrain from issuing, delivering or
          transferring any Option or any security issuable in connection with
          such Option until the Committee has determined that such issuance,
          delivery or transfer will not violate such securities laws or rules
          and regulations. The Company shall not be liable for damages due to
          delay in the issuance, delivery or transfer of any Option or any
          security issuable in connection with such Option or any agreement,
          instrument or certificate evidencing such Option or security for any
          reason whatsoever, including, but not limited to, a delay caused by
          the listing requirements of any securities exchange or automated
          quotation system or any registration requirements under any state or
          federal law, rule or regulation. The Company is under no obligation to
          take any action or incur any expense to register or qualify the
          issuance, delivery or transfer of any Option or any security issuable
          in connection with such Option under applicable securities laws or to
          perfect any exemption from such registration or qualification or to
          list any security on any securities exchange or automated quotation
          system. Furthermore, the Company will have no liability to any person
          for refusing to issue, deliver or transfer any Option or any security
          issuable in connection with such Option if such refusal is based upon
          the provisions of this Section 13. As a condition to any issuance,
          delivery or transfer of any Option or any security issuable in
          connection with such Option, the Company may place legends on any
          agreement, instrument or certificate evidencing such Option or
          security; issue stop transfer orders with respect thereto; require
          such market stand-off, lockup, or similar agreements or undertakings
          as the Company deems necessary or desirable; and require such
          agreements or undertakings as the Company may deem necessary or
          advisable to assure compliance with applicable laws or regulations,
          including, if the Company or its counsel deems it appropriate,
          representations from the Participant (or successor in interest) to the
          effect that such recipient is acquiring such Option or security solely
          for investment and not with a view to distribution and that no
          distribution of the Option or security will be made unless registered
          pursuant to applicable federal and state securities laws, or in the
          opinion of counsel to the Company, such registration is unnecessary.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]