Document:

Exhibit
10.02

Acusphere,
Inc.

Non-Statutory Stock Option Agreement

Acusphere,
Inc. (the “Company”) hereby grants the following stock option pursuant
to its 2003 Stock Option and Incentive Plan. 
The terms and conditions attached hereto are also a part hereof.

	
  Name of optionee (the “Optionee”):

  	
   

  
	
   

  	
   

  
	
  Date of this option grant:

  	
   

  
	
   

  	
   

  
	
  Number of shares of the Company’s Common Stock
  subject to this option (“Shares”):

  	
   

  
	
   

  	
   

  
	
  Option exercise price per share:

  	
   

  
	
   

  	
   

  
	
  Shares that are subject to vesting schedule:

  	
   

  
	
   

  	
   

  
	
  Vesting Start Date:

  	
   

  

 

  Vesting
Schedule:

	
  Vesting Start Date:

  	
  0%

  
	
   

  	
   

  
	
  On or after [ ] but prior to [ ]:

  	
  2.083% per month

  
	
   

  	
   

  
	
  On or after [ ]:

  	
  100% [four years after Vesting Start Date]

  
	
   

  	
   

  
	
  All vesting is dependent on the continuation of a
  Business Relationship with the Company, as provided herein.

  
	
   

  
	
  Payment alternatives:

  	
  

  Section 7(a) (i) through (iii)

  

 

This
option satisfies in full all commitments that the Company has to the Optionee
with respect to the issuance of stock, stock options or other equity
securities.

	
  

  	
   

  	
  Acusphere, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature of Optionee

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name of Officer:

  
	
  Street Address

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
  City/State/Zip Code

  	
   

  	
   

  	
   

  

 

ACUSPHERE, INC.

NON-STATUTORY
STOCK OPTION AGREEMENT — INCORPORATED TERMS AND CONDITIONS

1.                                       Grant
Under Plan.  This option is granted
pursuant to and is governed by the Company’s 2003 Stock Option and Incentive
Plan (the “Plan”) and, unless the context otherwise requires, terms used
herein shall have the same meaning as in the Plan.

2.                                       Grant
as Non-Qualified Stock Option.  This
option is a non-statutory stock option and is not intended to qualify as an
incentive stock option under Section 422 of the Internal Revenue Code of
1986, as amended, and the regulations thereunder (the “Code”).

3.                                       Vesting
of Option.

(a)                                Vesting
if Business Relationship Continues. The Optionee may exercise this option
on or after the date of this option grant for the number of shares of Common
Stock, if any, set forth on the cover page hereof.  If the Optionee has continuously maintained a
Business Relationship (as defined below) with the Company through the dates
listed on the vesting schedule set forth on the cover page hereof, the Optionee
may exercise this option for the additional number of shares of Common Stock
set opposite the applicable vesting date. 
Notwithstanding the foregoing, the Board may, in its discretion,
accelerate the date that any installment of this option becomes
exercisable.  The foregoing rights are
cumulative and may be exercised only before the date which is ten years from
the date of this option grant.

(b)                                 Definitions.
The following definitions shall apply:

“Business Relationship”
means service to the Company or its successor in the capacity of an employee,
officer, director or consultant provided, however, that if the Optionee is
granted this stock option as an employee, officer or director and his/her role
with the Company is subsequently modified such that he/she becomes a consultant
of the Company and is no longer an employee, officer or director the Business
Relationship, as defined for purposes of the stock options granted under the
Plan, is assumed to no longer exist unless the Company enters into a written
agreement related to such other Business Relationship in which it is
specifically stated that there is no termination of the Business Relationship
under this agreement. It is understood that if the option agreement is changed
as a result of a change in business relationship, such change may result in a
change in tax status of the stock option.

“Cause” means: (i)
gross negligence or willful malfeasance in the performance of the Optionee’s
work or a breach of fiduciary duty or confidentiality obligations to the
Company by the Optionee; (ii) failure to follow the proper directions of the
Optionee’s direct or indirect supervisor after written notice of such failure;
(iii) the commission by the Optionee of illegal conduct relating to the
Company; (iv) disregard by the Optionee of the material rules or material
policies of the Company which has not been cured within 15 days after notice
thereof from the Company; or (v) intentional acts on the part of the

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Optionee that have generated material adverse publicity
toward or about the Company.

4.                                       Termination
of Business Relationship.

(a)                                  Termination.  If the Optionee’s Business Relationship with
the Company ceases, voluntarily or involuntarily, with or without cause, for
reasons other than the death or disability of the Optionee,  no further installments of this option shall
become exercisable, and this option shall expire (may no longer be exercised)
after the passage of ninety days from the date of termination, but in no event
later than the scheduled expiration date. 
Any determination under this agreement as to the status of a Business
Relationship or other matters referred to above shall be made in good faith by
the Board of Directors of the Company. 
If, at the time of the Optionee’s termination for reasons other than
Cause, he/she is unable to sell shares of the Company’s stock (i) without
liability under Section 16(b) of the Securities Exchange Act of 1934, as
amended (or any successor provision) (“Section 16(b)” or (ii) because he/she is
in possession of material non-public information about the Company (“Material
Non-public Information”) or the Company and Optionee for other good reason
agree that that Optionee should not then sell shares of Company stock, then the
ninety (90) day period referred to above shall not commence until the later of
the first day that the Optionee may sell the shares without liability under
Section 16 (b), the first day that the Optionee is not in possession of
Material Non-public Information and the Company no longer requests that the
Optionee not sell shares of Company Stock; provided, however, that in no event
will this option be exercised after the scheduled expiration date.

(b)                               Employment
Status. For purposes hereof, with respect to employees of the Company,
employment shall not be considered as having terminated during anyleave of absence if such leave of absence has been approved
in writing by the Company and if such written approval contractually obligates
the Company to continue the employment of the Optionee after the approved
period of absence; in the event of such an approved leave of absence, vesting
of this option shall be suspended (and the period of the leave of absence shall
be added to all vesting dates) unless otherwise provided in the Company’s
written approval of the leave of absence. 
For purposes hereof, a termination of employment followed by another
Business Relationship shall be deemed a termination of the Business
Relationship with all vesting to cease unless the Company enters into a written
agreement related to such other Business Relationship in which it is
specifically stated that there is no termination of the Business Relationship
under this agreement. This option shall not be affected by any change of
employment within or among the Company and its Subsidiaries so long as the
Optionee continuously remains an employee of the Company or any Subsidiary.

(c)                                  Termination
for Cause.  If the Business
Relationship of the Optionee is terminated for Cause (as defined above), this
option may no longer be exercised from and after the Optionee’s receipt of
written notice of such termination.

5.                                       Death;
Disability; Retirement.

(a)                                  Death.  Upon the death of the Optionee while the
Optionee is maintaining a Business Relationship with the Company, this stock
option, to the extent it is at the time

 3
 

outstanding under the Plan, shall automatically
accelerate and become fully exercisable as to all Shares hereunder and shall
remain exercisable until their scheduled expiration date or earlier surrender.
In addition, if the Optionee dies within the ninety-day period after the
termination of his/her business relationship with the Company and such
termination occurs for reasons other than Cause or if the Optionee dies within
the one-year period following a disability (as defined below), the Shares
hereunder shall remain exercisable until their scheduled expiration date or
earlier surrender. During the remainder of the option term, the Optionee’s
estate, personal representative or beneficiary to whom this option has been
transferred pursuant to Section 10, have the right to exercise this
option.

(b)                                 Disability.  If the Optionee ceases to maintain a Business
Relationship with the Company by reason of his or her disability, this option
may be exercised, to the extent otherwise exercisable on the date of cessation
of the Business Relationship, only at any time within one year after such
cessation of the Business Relationship, but not later than the scheduled
expiration date.  For purposes hereof, “disability”
means “permanent and total disability” as defined in Section 22(e)(3) of
the Code.

(c)                                  Retirement.  If the Optionee, upon attainment of the age
of at least 65 years ceases to maintain a Business Relationship with the
Company by reason of substantial retirement from his/her position, business
function of office with the Company, this option may be exercised, to the
extent otherwise exercisable on the date of cessation of the Business
Relationship, at any time until the scheduled expiration date.

6.                                       Partial
Exercise.  This option may be exercised
in part at any time and from time to time within the above limits, except that
this option may not be exercised for a fraction of a share.

7.                                       Payment
of Exercise Price.

(a)                                  Payment
Options.  The exercise price shall be
paid by one or any combination of the following forms of payment that are
applicable to this option, as indicated on the cover page hereof:

(i)                                     by
check payable to the order of the Company; or

(ii)                                  delivery
of an irrevocable and unconditional undertaking, satisfactory in form and substance
to the Company, by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or delivery by the Optionee to the
Company of a copy of irrevocable and unconditional instructions, satisfactory
in form and substance to the Company, to a creditworthy broker to deliver
promptly to the Company cash or a check sufficient to pay the exercise price;
or

(iii)                               subject
to Section 7(b) below, if the Common Stock is then traded on a national
securities exchange or on the Nasdaq National Market (or successor trading
system), by delivery of shares of Common Stock having a fair market value equal
as of the date of exercise to the option price.

 4
 

In the case of (iii)
above, fair market value as of the date of exercise shall be determined as of
the last business day for which such prices or quotes are available prior to
the date of exercise and shall mean (i) the last reported sale price (on
that date) of the Common Stock on the principal national securities exchange on
which the Common Stock is traded, if the Common Stock is then traded on a
national securities exchange; or (ii) the last reported sale price (on
that date) of the Common Stock on the Nasdaq National Market (or successor
trading system), if the Common Stock is not then traded on a national
securities exchange.

(b)                                 Limitations
on Payment by Delivery of Common Stock. 
If Section 7(a)(iii) is applicable, and if the Optionee delivers Common
Stock held by the Optionee (“Old Stock”) to the Company in full or
partial payment of the exercise price and the Old Stock so delivered is subject
to restrictions or limitations imposed by agreement between the Optionee and
the Company, an equivalent number of Shares shall be subject to all
restrictions and limitations applicable to the Old Stock to the extent that the
Optionee paid for the Shares by delivery of Old Stock, in addition to any
restrictions or limitations imposed by this agreement.  Notwithstanding the foregoing, the Optionee
may not pay any part of the exercise price hereof by transferring Common Stock
to the Company unless such Common Stock has been owned by the Optionee free of
any substantial risk of forfeiture for at least six months.

8.                                       Securities
Laws Restrictions on Resale. Until registered under the Securities Act of
1933, as amended, or any successor statute (the “Securities Act”), the
Shares will be illiquid and will be deemed to be “restricted securities” for
purposes of the Securities Act. 
Accordingly, such shares must be sold in compliance with the
registration requirements of the Securities Act or an exemption therefrom and
may need to be held indefinitely.  Unless
the Shares have been registered under the Securities Act, each certificate
evidencing any of the Shares shall bear a restrictive legend specified by the
Company.

9.                                       Method
of Exercising Option.  Subject to the
terms and conditions of this agreement, this option may be exercised by written
notice to the Company at its principal executive office, or to such transfer
agent as the Company shall designate.  Such notice shall state the election to
exercise this option and the number of Shares for which it is being exercised
and shall be signed by the person or persons so exercising this option.  Such notice shall be accompanied by payment
of the full purchase price of such shares, and the Company shall deliver a
certificate or certificates representing such shares as soon as practicable
after the notice shall be received.  Such
certificate or certificates shall be registered in the name of the person or
persons so exercising this option (or, if this option shall be exercised by the
Optionee and if the Optionee shall so request in the notice exercising this
option, shall be registered in the name of the Optionee and another person
jointly, with right of survivorship). In the event this option shall be
exercised, pursuant to Section 5 hereof, by any person or persons other
than the Optionee, such notice shall be accompanied by appropriate proof of the
right of such person or persons to exercise this option.

10.                                 Option
Not Transferable.  This option is not
transferable or assignable except by will or by the laws of descent and
distribution.  During the Optionee’s
lifetime only the Optionee can exercise this option.

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11.                                 No
Obligation to Exercise Option.  The
grant and acceptance of this option imposes no obligation on the Optionee to
exercise it.

12.                                 No
Obligation to Continue Business Relationship.  Neither the Plan, this agreement, nor the
grant of this option imposes any obligation on the Company to continue the Optionee
in employment or other Business Relationship.

13.                                 Adjustments.  Except as is expressly provided in the Plan
with respect to certain changes in the capitalization of the Company, no
adjustment shall be made for dividends or similar rights for which the record
date is prior to such date of exercise.

14.                                 Withholding
Taxes.  If the Company in its
discretion determines that it is obligated to withhold any tax in connection
with the exercise of this option, or in connection with the transfer of, or the
lapse of restrictions on, any Common Stock or other property acquired pursuant
to this option, the Optionee hereby agrees that the Company may withhold from
the Optionee’s wages or other remuneration the appropriate amount of tax. At
the discretion of the Company, the amount required to be withheld may be
withheld in cash from such wages or other remuneration or in kind from the
Common Stock or other property otherwise deliverable to the Optionee on
exercise of this option.  The Optionee
further agrees that, if the Company does not withhold an amount from the
Optionee’s wages or other remuneration sufficient to satisfy the withholding
obligation of the Company, the Optionee will make reimbursement on demand, in
cash, for the amount underwithheld.

15.                                 Lock-up
Agreement. The Optionee agrees that in the event that the Company effects
an underwritten public offering of Common Stock registered under the Securities
Act, the Shares may not be sold, offered for sale or otherwise disposed of,
directly or indirectly, without the prior written consent of the managing
underwriter(s) of the offering, for such period of time after the execution of
an underwriting agreement in connection with such offering that all of the
Company’s then directors and executive officers agree to be similarly
bound.  Any such sale or disposition
shall be made in accordance with the Company’s insider trading policy, as
amended and in effect from time to time.

16.                                 Arbitration.  Any dispute, controversy, or claim arising
out of, in connection with, or relating to the performance of this agreement or
its termination shall be settled by arbitration in the Commonwealth of
Massachusetts, pursuant to the rules then obtaining of the American Arbitration
Association. Any award shall be final, binding and conclusive upon the parties
and a judgment rendered thereon may be entered in any court having jurisdiction
thereof.

17.                                 Provision
of Documentation to Optionee.  By
signing this agreement the Optionee acknowledges receipt of a copy of this
agreement and a copy of the Plan.

18.                                 Miscellaneous.

(a)                                  Notices.  All notices hereunder shall be in writing and
shall be deemed given when sent by mail, if to the Optionee, to the address set
forth below or at the address shown on the records of the Company, and if to
the Company, to the Company’s principal executive offices, attention of the
Corporate Secretary.

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(b)                                 Entire
Agreement; Modification.  This
agreement constitutes the entire agreement between the parties relative to the
subject matter hereof, and supersedes all proposals, written or oral, and all
other communications between the parties relating to the subject matter of this
agreement. This agreement may be modified, amended or rescinded only by a
written agreement executed by both parties.

(c)                                Fractional
Shares. If this option becomes exercisable for a fraction of a share
because of the adjustment provisions contained in the Plan, such fraction shall
be rounded down.

(d)                                 Issuances
of Securities; Changes in Capital Structure. Except as expressly provided
herein or in the Plan, 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 subject to this option.  No adjustments need be made for dividends
paid in cash or in property other than securities of the Company. If there
shall be any change in the Common Stock of the Company through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
combination or exchange of shares, spin-off, split-up or other similar change
in capitalization or event, the restrictions contained in this agreement shall
apply with equal force to additional and/or substitute securities, if any,
received by the Optionee in exchange for, or by virtue of his or her ownership
of, Shares, except as otherwise determined by the Board.

(e)                                  Severability.  The invalidity, illegality or
unenforceability of any provision of this agreement shall in no way affect the
validity, legality or enforceability of any other provision.

(f)                                    Successors
and Assigns.  This agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, subject to the limitations set forth in
Section 10 hereof.

(g)                                 Governing
Law.  This agreement shall be
governed by and interpreted in accordance with the laws of the State of
Delaware without giving effect to the principles of the conflicts of laws
thereof.

 7Exhibit
10.03

Acusphere, Inc.

Incentive Stock Option Agreement

Acusphere, Inc.
(the “Company”) hereby grants the following stock option pursuant to its
2005 Stock Option and Incentive Plan. 
The terms and conditions attached hereto are also a part hereof.

	
  Name of optionee (the “Optionee”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of this option grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of shares of the Company’s Common Stock
  subject to this option (“Shares”):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Option exercise price per share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Shares that are subject to vesting schedule:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
   

  
	
  Vesting Start Date:

  	
   

  	
  0%

  
	
   

  	
   

  	
   

  
	
  On or after
                
  but prior to
                          :

  	
   

  	
  An additional [2.08%] per month

  
	
   

  	
   

  	
   

  
	
  On or after
                    :

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  All vesting is dependent on the continuation of a
  Business Relationship with the Company, as provided herein.

  
	
   

  
	
  Payment alternatives:

  	
   

  	
  Section 7(a)(i) through (iii)

  

 

This option satisfies in full all commitments that the Company has to
the Optionee with respect to the issuance of stock, stock options or other
equity securities.

	
  

  	
   

  	
  Acusphere, Inc.

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature of Optionee

  	
   

  	
  John Thero, SVP, CFO

  
	
  Employee Name

  	
   

  	
   

  
	
  Employee Address

  	
   

  	
   

  
	
  Employee Address

  	
   

  	
   

  
						

 

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ACUSPHERE, INC.

Incentive Stock Option Agreement — Incorporated Terms and Conditions

1.                                       Grant
Under Plan.  This option is granted
pursuant to and is governed by the Company’s 2005 Stock Option and Incentive
Plan (the “Plan”) and, unless the context otherwise requires, terms used
herein shall have the same meaning as in the Plan.

2.                                       Grant
as Incentive Stock Option.  This
option is intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended, and the
regulations thereunder (the “Code”), but the Company does not represent
or warrant that this option so qualifies. 
To the extent that this option does not qualify as an incentive stock
option, it shall be a non-statutory stock option.

3.                                       Vesting
of Option.

(a)                                Vesting
if Business Relationship Continues. The Optionee may exercise the vested
portion of this option on or after the date of this option grant for the number
of shares of Common Stock, if any, set forth on the cover page hereof.  If the Optionee has continuously maintained a
Business Relationship (as defined below) with the Company through the dates
listed on the vesting schedule set forth on the cover page hereof, the Optionee
may exercise this option for the additional number of shares of Common Stock
set opposite the applicable vesting date. 
Notwithstanding the foregoing, the Board may, in its discretion,
accelerate the date that any installment of this option becomes
exercisable.  The foregoing rights are
cumulative and may be exercised only before the date which is ten years from
the date of this option grant.

(b)                                 Definitions.
The following definitions shall apply:

“Business Relationship”
means service to the Company or its successor in the capacity of an employee,
officer, director or consultant provided, however, that if the Optionee is
granted this stock option as an employee, officer or director and his/her role
with the Company is subsequently modified such that he/she becomes a consultant
of the Company and is no longer an employee, officer or director the Business
Relationship, as defined for purposes of the stock options granted under the
Plan, is assumed to no longer exist unless the Company enters into a written
agreement related to such other Business Relationship in which it is
specifically stated that there is no termination of the Business Relationship
under this agreement.

“Cause” means: (i)
gross negligence or willful malfeasance in the performance of the Optionee’s
work or a breach of fiduciary duty or confidentiality obligations to the
Company by the Optionee; (ii) failure to follow the proper directions of the
Optionee’s direct or indirect supervisor after written notice of such failure;
(iii) the commission by the Optionee of illegal conduct relating to the
Company; (iv) disregard by the Optionee of the material rules or material
policies of the Company which has not been cured within 15 days after notice
thereof from the Company; or (v) intentional acts on the part of the Optionee
that have generated material adverse publicity toward or about the Company.

 2
 

4.                                       Termination
of Business Relationship.

(a)                                  Termination.  If the Optionee’s Business Relationship with
the Company ceases, voluntarily or involuntarily, with or without cause, for
reasons other than the death or disability of the Optionee, no further
installment of this option shall become exercisable, and this option shall
expire (may no longer be exercised) after the passage of ninety days from the
date of termination, but in no event later than the scheduled expiration
date.  Any determination under this
agreement as to the status of a Business Relationship or other matters referred
to above shall be made in good faith by the Board of Directors of the
Company.  If, at the time of the Optionee’s
termination for reasons other than Cause, he/she is unable to sell shares of
the Company’s stock (i) without liability under Section 16(b) of the Securities
Exchange Act of 1934, as amended (or any successor provision) (“Section 16(b)”)
or (ii) because he/she is in possession of material non-public information
about the Company (“Material Non-public Information”) or the Company and
Optionee for other good reason agree that that Optionee should not then sell
shares of Company stock, then the ninety days period referred to above shall
not commence until the later of the first day that the Optionee may sell the
shares without liability under Section 16(b), the first day that the Optionee
is not in possession of Material Non-public Information and the Company no
longer requests that the Optionee not sell shares of Company Stock; provided,
however, that in no event will this option be exercised after the scheduled
expiration date.

(b)                               Employment
Status. For purposes hereof, with respect to employees of the Company,
employment shall not be considered as having terminated during anyleave of absence if such leave of absence has been approved
in writing by the Company and if such written approval contractually obligates
the Company to continue the employment of the Optionee after the approved
period of absence; in the event of such an approved leave of absence, vesting
of this option shall be suspended (and the period of the leave of absence shall
be added to all vesting dates) unless otherwise provided in the Company’s
written approval of the leave of absence. 
For purposes hereof, a termination of employment followed by another
Business Relationship shall be deemed a termination of the Business
Relationship with all vesting to cease unless the Company enters into a written
agreement related to such other Business Relationship in which it is
specifically stated that there is no termination of the Business Relationship
under this agreement. This option shall not be affected by any change of
employment within or among the Company and its Subsidiaries so long as the
Optionee continuously remains an employee of the Company or any Subsidiary.

(c)                                  Termination
for Cause.  If the Business
Relationship of the Optionee is terminated for Cause (as defined above), this
option may no longer be exercised from and after the Optionee’s receipt of
written notice of such termination.

5.                                       Death;
Disability; Retirement.

(a)                                  Death.  Upon the death of the Optionee while the
Optionee is maintaining a Business Relationship with the Company, this stock
option, to the extent it is at the time outstanding under the Plan, shall
automatically accelerate and become fully exercisable as to all Shares
hereunder and shall remain exercisable until their scheduled expiration date or
earlier surrender. In addition, if the Optionee dies within the ninety-day
period after the termination of his/her business relationship with the Company
and such termination occurs for reasons other than Cause or if the Optionee dies
within the one-year period

 3
 

following a disability (as defined below), the Shares
hereunder shall remain exercisable until their scheduled expiration date or
earlier surrender. During the remainder of the option term, the Optionee’s
estate, personal representative or beneficiary to whom this option has been
transferred pursuant to Section 9, have the right to exercise this option.
..

(b)                                 Disability.  If the Optionee ceases to maintain a Business
Relationship with the Company by reason of his or her disability, this option
may be exercised, to the extent otherwise exercisable on the date of cessation
of the Business Relationship, only at any time within one year after such
cessation of the Business Relationship, but not later than the scheduled
expiration date.  For purposes hereof, “disability”
means “permanent and total disability” as defined in Section 22(e)(3) of
the Code.

(c)                                  Retirement.   If the Optionee, upon attainment of the age
of at least 62 years, ceases to maintain a Business Relationship with the
Company by reason of substantial retirement from his/her position, business
function and office, this option may be exercised, to the extent otherwise
exercisable on the date of cessation of the Business Relationship, only at any
time within one year after such cessation of the Business Relationship, but not
later than the scheduled expiration date.

6.                                       Partial
Exercise.  This option may be
exercised in part at any time and from time to time within the above limits,
except that this option may not be exercised for a fraction of a share.

7.                                       Payment
of Exercise Price.  The exercise
price shall be paid by one or any combination of the following forms of payment
that are applicable to this option, as indicated on the cover page hereof:

(a)                                  in cash, by certified or bank check or other
instrument acceptable to the Administrator and payable to the order of the
Company;

(b)                                 through the delivery (or attestation to the
ownership) of shares of Stock that have been purchased by the Optionee on the
open market or that are beneficially owned by the Optionee and are not then
subject to restrictions under any Company plan. 
Such surrendered shares shall be valued at Fair Value on the exercise
date; or

(c)                                  By the Optionee delivering to the Company a
properly executed exercise notice together with irrevocable instructions to a
broker to promptly deliver to the Company cash or a check payable and
acceptable to the Company for the purchase price; provided that in the event
the Optionee chooses to pay the purchase price as so provided, the Optionee and
the broker shall comply with such procedures and enter into such agreements of
indemnity and other agreements as the Administrator shall prescribe as a
condition of such payment procedure.

Payment instruments will be received subject to
collection.  The transfer to the Optionee
on the records of the Company or the transfer agent of the shares of Stock to
be purchased pursuant to the exercise of a Stock Option will be contingent upon
receipt from the Optionee (or a purchaser acting in his stead in accordance
with the provisions of the Stock Option) by the Company of the full purchase
price for such shares and the fulfillment of any other requirements included
herein or applicable provisions of laws (including the satisfaction of any
withholding

 4
 

taxes that the Company is obligated to withhold with respect to the
Optionee).  In the event the Optionee
chooses to pay the purchase price by previously-owned shares of Stock through
the attestation method, the number of shares of Stock transferred to the Optionee
upon the exercise of the Stock Option shall be net of the number of shares
attested to.

8.                                       Method
of Exercising Option.  Subject to the
terms and conditions of this agreement, this option may be exercised by written
notice to the Company at its principal executive office, or to such transfer
agent as the Company shall designate. 
Such notice shall state the election to exercise this option and the
number of Shares for which it is being exercised and shall be signed by the
person or persons so exercising this option. 
Such notice shall be accompanied by payment of the full purchase price
of such shares, and the Company shall deliver a certificate or certificates
representing such shares as soon as practicable after the notice shall be
received.  Such certificate or
certificates shall be registered in the name of the person or persons so
exercising this option (or, if this option shall be exercised by the Optionee
and if the Optionee shall so request in the notice exercising this option,
shall be registered in the name of the Optionee and another person jointly,
with right of survivorship). In the event this option shall be exercised,
pursuant to Section 5 hereof, by any person or persons other than the
Optionee, such notice shall be accompanied by appropriate proof of the right of
such person or persons to exercise this option.

9.                                       Option
Not Transferable.  This option is not
transferable or assignable except by will or by the laws of descent and
distribution.  During the Optionee’s
lifetime only the Optionee can exercise this option.

10.                                 No
Obligation to Exercise Option.  The
grant and acceptance of this option imposes no obligation on the Optionee to
exercise it.

11.                                 No
Obligation to Continue Business Relationship.  Neither the Plan, this agreement, nor the
grant of this option imposes any obligation on the Company to continue the
Optionee in employment or other Business Relationship.

12.                                 Adjustments.  Except as is expressly provided in the Plan
with respect to certain changes in the capitalization of the Company, no
adjustment shall be made for dividends or similar rights for which the record
date is prior to such date of exercise.

13.                                 Withholding
Taxes.  If the Company in its
discretion determines that it is obligated to withhold any tax in connection
with the exercise of this option, or in connection with the transfer of, or the
lapse of restrictions on, any Common Stock or other property acquired pursuant
to this option, the Optionee hereby agrees that the Company may withhold from
the Optionee’s wages or other remuneration the appropriate amount of tax. At
the discretion of the Company, the amount required to be withheld may be
withheld in cash from such wages or other remuneration or in kind from the
Common Stock or other property otherwise deliverable to the Optionee on
exercise of this option.  The Optionee
further agrees that, if the Company does not withhold an amount from the
Optionee’s wages or other remuneration sufficient to satisfy the withholding
obligation of the Company, the Optionee will make reimbursement on demand, in
cash, for the amount underwithheld.

14.                                 Early
Disposition.  The Optionee agrees to
notify the Company in writing immediately after the Optionee transfers any
Shares, if such transfer occurs on or before the later

 5
 

of (a) the
date that is two years after the date of this agreement or (b) the date
that is one year after the date on which the Optionee acquired such
Shares.  The Optionee also agrees to
provide the Company with any information concerning any such transfer required
by the Company for tax purposes.

15.                                 Arbitration.  Any dispute, controversy, or claim arising
out of, in connection with, or relating to the performance of this agreement or
its termination shall be settled by arbitration in the Commonwealth of
Massachusetts, pursuant to the rules then obtaining of the American Arbitration
Association. Any award shall be final, binding and conclusive upon the parties
and a judgment rendered thereon may be entered in any court having jurisdiction
thereof.

16.                                 Provision
of Documentation to Optionee.  By
signing this agreement the Optionee acknowledges receipt of a copy of this
agreement and a copy of the Plan.

17                                    Miscellaneous.

(a)                                  Notices.  All notices hereunder shall be in writing and
shall be deemed given when sent by mail, if to the Optionee, to the address set
forth below or at the address shown on the records of the Company, and if to
the Company, to the Company’s principal executive offices, attention of the
Corporate Secretary.

(b)                                 Entire
Agreement; Modification.  This
agreement constitutes the entire agreement between the parties relative to the
subject matter hereof, and supersedes all proposals, written or oral, and all
other communications between the parties relating to the subject matter of this
agreement. This agreement may be modified, amended or rescinded only by a
written agreement executed by both parties.

(c)                                Fractional
Shares. If this option becomes exercisable for a fraction of a share
because of the adjustment provisions contained in the Plan, such fraction shall
be rounded down.

(d)                                 Issuances
of Securities; Changes in Capital Structure. Except as expressly provided
herein or in the Plan, 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 subject to this option.  No adjustments need be made for dividends
paid in cash or in property other than securities of the Company. If there
shall be any change in the Common Stock of the Company through merger,
consolidation, reorganization, recapitalization, stock dividend, stock split,
combination or exchange of shares, spin-off, split-up or other similar change
in capitalization or event, the restrictions contained in this agreement shall
apply with equal force to additional and/or substitute securities, if any, received
by the Optionee in exchange for, or by virtue of his or her ownership of,
Shares, except as otherwise determined by the Board.

(e)                                  Severability.  The invalidity, illegality or
unenforceability of any provision of this agreement shall in no way affect the
validity, legality or enforceability of any other provision.

 6
 

(f)                                    Successors
and Assigns.  This agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, subject to the limitations set forth in
Section 9 hereof.

(g)                                 Governing
Law.  This agreement shall be
governed by and interpreted in accordance with the laws of the State of
Delaware without giving effect to the principles of the conflicts of laws
thereof.

 7

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