Document:

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                                                                    EXHIBIT 10.9

                             GIANT INDUSTRIES, INC.

                               AMENDMENT NO. 2 TO
                            1998 STOCK INCENTIVE PLAN

         This Amendment No. 2 (the "Amendment") to the Giant Industries, Inc.
1998 Stock Incentive Plan (the "Plan") is adopted by the Board of Directors (the
"Board") of Giant Industries, Inc. (the "Corporation") pursuant to the authority
granted to the Board in Section 16 of the Plan. Capitalized terms used but not
defined herein shall have the meanings set forth in the Plan. The Plan hereby is
amended as follows:

         1.       Section 14(a) of the Plan hereby is amended in its entirety to
                  read as follows:

                           "(a)     This Plan shall be administered by the Board
                           or by a Committee of the Board, which shall be
                           composed of not less than two members of the Board,
                           each of whom shall be a "non-employee director"
                           within the meaning of Rule 16b-3. For purposes of
                           grants and awards pursuant to, and administration of,
                           this Plan, the terms "Committee" and "Board" are used
                           interchangeably."

         2.       Except as expressly modified by this Amendment, the terms and
                  conditions of the Plan remain in full force and effect.

         3.       The effective date of this Amendment shall be March 27, 2002.<PAGE>

                                                                     EXHIBIT 4.1

         COMMON STOCK                                      COMMON STOCK

   Number                                                              Shares
LIPD 2184                                                                 *

                       [LIPID SCIENCES INCORPORATED LOGO]

INCORPORATED UNDER THE LAWS                  SEE REVERSE FOR CERTAIN DEFINITIONS
 OF THE STATE OF DELAWARE                              CUSIP 53630P 10 1

THIS CERTIFIES THAT

IS THE RECORD HOLDER OF

   FULLY PAID AND NONASSESSABLE SHARES OF THE COMMON STOCK, NO PAR VALUE, OF

                              LIPID SCIENCES, INC.

transferable on the books of the Corporation by the holder hereof in person or
by a duly authorized attorney upon surrender of this Certificate properly
endorsed. This Certificate is not valid unless countersigned and registered by
the Transfer Agent and Registrar.

      WITNESS the facsimile seal of the Corporation and the facsimile signatures
of its duly authorized officers.

Dated:

                          [LIPID SCIENCES, INC. SEAL]

COUNTERSIGNED AND REGISTERED,
             THE BANK OF NEW YORK
                   TRANSFER AGENT AND REGISTRAR

BY

AUTHORIZED SIGNATURE

/s/ Sandra Gardiner                     /s/ Marc Bellotti

    SECRETARY                               VICE PRESIDENT

<PAGE>

      The Corporation will furnish without charge to each stockholder who so
requests the powers, designations, preferences and relative, participating,
optional, or other special rights of each class of stock or series thereof and
the qualifications, limitations or restrictions of such preferences and/or
rights. Such requests shall be made to the Corporation's Secretary at the
principal office of the Corporation.

      KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, OR DESTROYED
THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE
OF A REPLACEMENT CERTIFICATE.

      The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations

<TABLE>
<S>                                                     <C>
      TEN COM -- as tenants in common                              UNIF GIFT MIN ACT -- ___________ Custodian ___________
      TEN ENT -- as tenants by the entireties                                              (Cust)                (Minor)
      JT TEN  -- as joint tenants with right of                                         under Uniform Gifts to Minors
                 survivorship and not as tenants                                        Act ______________________
                 in common                                                                          (State)

                                                        UNIF TRF MIN ACT -- ___________ Custodian (until age ___________)
                                                                              (Cust)
                                                                            ___________ under Uniform Transfers
                                                                              (Minor)
                                                                            to Minors Act ______________________
                                                                                                  (State)
</TABLE>

    Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED, ______________________ hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
    IDENTIFYING NUMBER OF ASSIGNEE
______________________________________

______________________________________

________________________________________________________________________________
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________

_________________________________________________________________________ Shares
of the common stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint

_______________________________________________________________________ Attorney
to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises.

Dated ________________________

                                        X ______________________________________

                                        X ______________________________________
                                  NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT
                                          MUST CORRESPOND WITH THE NAME(S) AS
                                          WRITTEN UPON THE FACE OF THE
                                          CERTIFICATE IN EVERY PARTICULAR,
                                          WITHOUT ALTERATION OR ENLARGEMENT OR
                                          ANY CHANGE WHATEVER.

Signature(s) Guaranteed

By _____________________________________
THE SIGNATURE(S) MUST BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN
ASSOCIATIONS AND CREDIT UNIONS<PAGE>

                                                                    EXHIBIT 10.1

                              LIPID SCIENCES, INC.
                             PERFORMANCE EQUITY PLAN
                            (AMENDED AUGUST 5, 2002)

SECTION 1. PURPOSE; DEFINITIONS.

      1.1. Purpose. The purpose of the Lipid Sciences, Inc. 2001 Performance
Equity Plan is to enable the Company to offer to its employees, officers,
directors and consultants whose past, present and/ or potential contributions to
the Company and its Subsidiaries have been, are or will be important to the
success of the Company, an opportunity to acquire a proprietary interest in the
Company. The various types of long-term incentive awards that may be provided
under the Plan will enable the Company to respond to changes in compensation
practices, tax laws, accounting regulations and the size and diversity of its
businesses.

      1.2. Definitions. For purposes of the Plan, the following terms shall be
defined as set forth below:

      (a) "Agreement" means the agreement between the Company and the Holder, or
such other document as may be determined by the Committee, setting forth the
terms and conditions of an award under the Plan.

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

      (c) "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

      (d) "Committee" means the Stock Option Committee of the Board or any other
committee of the Board that the Board may designate to administer the Plan or
any portion thereof. If no Committee is so designated, then all references in
this Plan to "Committee" shall mean the Board.

      (e) "Common Stock" means the Common Stock of the Company, no par value.

      (f) "Company" means Lipid Sciences, Inc., a corporation organized under
the laws of the State of Delaware.

      (g) "Deferred Stock" means Common Stock to be received under an award made
pursuant to Section 8, below, at the end of a specified deferral period.

      (h) "Disability" means physical or mental impairment as determined under
procedures established by the Committee for purposes of the Plan.

<PAGE>

      (i) "Effective Date" means the date set forth in Section 12.1, below.

      (j) "Fair Market Value", unless otherwise required by any applicable
provision of the Code or any regulations issued thereunder, means, as of any
given date: (i) if the Common Stock is listed on a national securities exchange
or quoted on the Nasdaq National Market or Nasdaq SmallCap Market, the last sale
price of the Common Stock in the principal trading market for the Common Stock
on such date, as reported by the exchange or Nasdaq, as the case may be; (ii) if
the Common Stock is not listed on a national securities exchange or quoted on
the Nasdaq National Market or Nasdaq SmallCap Market, but is traded in the
over-the-counter market, the closing bid price for the Common Stock on such
date, as reported by the OTC Bulletin Board or the National Quotation Bureau,
Incorporated or similar publisher of such quotations; and (iii) if the fair
market value of the Common Stock cannot be determined pursuant to clause (i) or
(ii) above, such price as the Committee shall determine, in good faith.

      (k) "Holder" means a person who has received an award under the Plan.

      (l) "Incentive Stock Option" means any Stock Option intended to be and
designated as an "incentive stock option" within the meaning of Section 422 of
the Code.

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

      (n) "Other Stock-Based Award" means an award under Section 9, below, that
is valued in whole or in part by reference to, or is otherwise based upon,
Common Stock.

      (o) "Parent" means any present or future "parent corporation" of the
Company, as such term is defined in Section 424(e) of the Code (without regard
to the phrase "at the time of the granting of the option" in such Section).

      (p) "Plan" means the Lipid Sciences, Inc. 2001 Performance Equity Plan, as
hereinafter amended from time to time.

      (q) "Repurchase Value" shall mean the Fair Market Value in the event the
award to be settled under Section 2.2(h) or repurchased under Section 10.2 is
comprised of shares of Common Stock and the difference between Fair Market Value
and the Exercise Price (if lower than Fair Market Value) in the event the award
is a Stock Option or Stock Appreciation Right; in each case, multiplied by the
number of shares subject to the award.

      (r) "Restricted Stock" means Common Stock received under an award made
pursuant to Section 7, below, that is subject to restrictions under said Section
7.

      (s) "SAR Value" means the excess of the Fair Market Value (on the exercise
date) over the exercise price that the participant would have otherwise had to
pay to

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<PAGE>

exercise the related Stock Option, multiplied by the number of shares for which
the Stock Appreciation Right is exercised.

      (t) "Stock Appreciation Right" means the right to receive from the
Company, on surrender of all or part of the related Stock Option, without a cash
payment to the Company, a number of shares of Common Stock equal to the SAR
Value divided by the Fair Market Value (on the exercise date).

      (u) "Stock Option" or "Option" means any option to purchase shares of
Common Stock which is granted pursuant to the Plan.

      (v) "Stock Reload Option" means any option granted under Section 5.3 of
the Plan.

      (w) "Subsidiary" means any present or future "subsidiary corporation" of
the Company, as such term is defined in Section 424(f) of the Code (without
regard to the phrase "at the time of the granting of the option" in such
Section).

      (x) "Termination" means that the Holder has ceased to be an employee or
director of, or consultant to, the Company or its Subsidiaries and no longer
serves in any such capacity on behalf of the Company or its Subsidiaries. An
event that causes a Subsidiary to cease being a Subsidiary shall be treated as a
"Termination" of that Subsidiary's employees, directors and consultants.

      (y) "Vest" means to become exercisable or to otherwise obtain ownership
rights in an award.

SECTION 2. ADMINISTRATION.

      2.1. Committee Membership. The Plan shall be administered by the Board or
a Committee, as provided herein. Committee members shall serve for such term as
the Board may in each case determine, and shall be subject to removal at any
time by the Board. The Committee members shall be "non-employee directors" as
defined in Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as
amended ("Exchange Act"), and "outside directors" within the meaning of Section
162(m) of the Code.

      2.2. Powers of Committee. The Committee shall have full authority to
award, pursuant to the terms of the Plan: (i) Stock Options, (ii) Stock
Appreciation Rights, (iii) Restricted Stock, (iv) Deferred Stock, (v) Stock
Reload Options and/or (vi) Other Stock-Based Awards (collectively, "Awards").
For purposes of illustration and not of limitation, the Committee shall have the
authority (subject to the express provisions of this Plan):

      (a) to select, from the persons designated as eligible recipients of
awards in Section 4.1, the officers, employees, directors and consultants of the
Company or any Subsidiary to whom Stock Options, Stock Appreciation Rights,
Restricted Stock,

                                       3
<PAGE>

Deferred Stock, Reload Stock Options and/or Other Stock-Based Awards may from
time to time be awarded hereunder;

      (b) to determine the terms and conditions, not inconsistent with the terms
of the Plan, of any award granted hereunder (including, but not limited to,
number of shares, share exercise price or types of consideration paid upon
exercise of such options, such as other securities of the Company or other
property, any restrictions or limitations, and any vesting, exchange, surrender,
cancellation, acceleration, termination, exercise or forfeiture provisions, as
the Committee shall determine);

      (c) to determine any specified performance goals or such other factors or
criteria which need to be attained for the vesting of an award granted
hereunder;

      (d) to determine the terms and conditions under which awards granted
hereunder are to operate on a tandem basis and/or in conjunction with or apart
from other equity awarded under this Plan and cash and non-cash awards made by
the Company or any Subsidiary outside of this Plan;

      (e) to permit a Holder to elect to defer a payment under the Plan under
such rules and procedures as the Committee may establish, including the payment
or crediting of interest on deferred amounts denominated in cash and of dividend
equivalents on deferred amounts denominated in Common Stock;

      (f) to determine the extent and circumstances under which Common Stock and
other amounts payable with respect to an award hereunder shall be deferred that
may be either automatic or at the election of the Holder; and

      (g) to substitute (i) new Stock Options for previously granted Stock
Options, which previously granted Stock Options have higher option exercise
prices and/or contain other less favorable terms, and (ii) new awards of any
other type for previously granted awards of the same type, which previously
granted awards are upon less favorable terms; and

      (h) to make payments and distributions with respect to awards (i.e., to
"settle" awards) through cash payments in an amount equal to the Repurchase
Value.

      Notwithstanding anything contained herein to the contrary, the Committee
shall not grant to any one Holder in any one calendar year awards for more than
500,000 shares in the aggregate.

      2.3. Interpretation of Plan.

      (a) Committee Authority. Subject to Section 11, below, the Committee shall
have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall from time to time deem
advisable to interpret the terms and

                                       4
<PAGE>

provisions of the Plan and any award issued under the Plan (and to determine the
form and substance of all Agreements relating thereto), and to otherwise
supervise the administration of the Plan. Subject to Section 11, below, all
decisions made by the Committee pursuant to the provisions of the Plan shall be
made in the Committee's sole discretion and shall be final and binding upon all
persons, including the Company, its Subsidiaries and Holders.

      (b) Incentive Stock Options. Anything in the Plan to the contrary
notwithstanding, no term or provision of the Plan relating to Incentive Stock
Options (including but not limited to Stock Reload Options or Stock Appreciation
rights granted in conjunction with an Incentive Stock Option) or any Agreement
providing for Incentive Stock Options shall be interpreted, amended or altered,
nor shall any discretion or authority granted under the Plan be so exercised, so
as to disqualify the Plan under Section 422 of the Code or, without the consent
of the Holder(s) affected, to disqualify any Incentive Stock Option under such
Section 422.

SECTION 3. STOCK SUBJECT TO PLAN.

      3.1. Number of Shares. The total number of shares of Common Stock reserved
and available for issuance under the Plan shall be 5,000,000 shares; provided
that this number of shares shall automatically increase on the January 1, in
each of the calendar years 2002, 2003, 2004, 2005 and 2006 by an amount equal to
3% of the shares of Common Stock outstanding on December 31 of the immediately
preceding calendar year as reflected on the stock ledger of the Company, if the
Plan is then in effect, but in no event shall any annual increase exceed 500,000
shares of Common Stock. Shares of Common Stock under the Plan ("Shares") may
consist, in whole or in part, of authorized and unissued shares or treasury
shares. If a Stock Option expires or is cancelled without being exercised, the
Shares of Common Stock that were subject to such Stock Option shall revert to
the Plan and again be available for future issuance under this Plan. Similarly,
if a Stock Appreciation Right or Deferred Stock award is cancelled before it is
exercised (in the case of a Stock Appreciation Right) or before the end of the
Deferral Period (in the case of a Deferred Stock award, and the shares of Common
Stock subject to such Stock Appreciation Right or Deferred Stock award are never
in fact issued to the Holder thereof, such Shares shall revert to the Plan and
again be available for future issuance under this Plan.

      3.2. Changes in Capital Structure. In the event of any stock split,
reverse stock split, recapitilization, combination or reclassification of stock,
stock dividend, spin-off, or similar change to the capital structure of the
Company (not including a Fundamental Transaction or Change of Control as defined
in Sections 10.1 and 10.2, respectively), the Committee shall make whatever
adjustments it concludes are appropriate to: (a) the number and type of Options
or other awards that may be granted under this Plan, (b) the number and type of
Options or other awards that may be granted to any individual under this Plan,
(c) the exercise price and number and class of securities issuable under each

                                       5
<PAGE>

outstanding Option or other award, and (d) the repurchase price of any
securities or awards granted hereunder subject to a right of repurchase in favor
of the Company. The specific adjustments shall be determined by the Board in its
sole and absolute discretion. Unless the Board specifies otherwise, any
securities issuable as a result of any such adjustment shall be rounded to the
next lower whole security.

SECTION 4. ELIGIBILITY; LIMITATIONS.

      4.1 Eligibility. Awards may be made or granted to employees, officers,
directors and consultants who are deemed to have rendered or to be able to
render significant services to the Company or its Subsidiaries and who are
deemed to have contributed or to have the potential to contribute to the success
of the Company. Notwithstanding any other provision of this Plan, Incentive
Stock Option may be granted to, and only to, persons who are employees of the
Company or a Subsidiary at the time of grant. An award other than an Incentive
Stock Option may be made or granted to a person in connection with his hiring or
retention, or at any time on or after the date he reaches an agreement (oral or
written) with the Company with respect to such hiring or retention, even though
it may be prior to the date the person first performs services for the Company
or its Subsidiaries; provided, however, that no portion of any such award shall
vest prior to the date the person first performs such services. If an Incentive
Stock Option is awarded to a person in connection with his or her becoming an
employee of the Company or a Subsidiary, such Incentive Stock Option shall, for
all purposes, be deemed granted no earlier than the day on which such person's
employment begins.

      4.2 Section 162(m) Limitation. So long as the Company is a "publicly held
corporation" within the meaning of Section 162(m) of the Code: (a) no employee
of the Company or prospective employee of the Company may be granted one or more
awards hereunder within any fiscal year representing more than 250,000 Shares or
the right to acquire more than 250,000 Shares, subject to adjustment under
Section 3.2, and (b) Options may be granted to an Executive only by the
Committee (and, notwithstanding Section 2.1, not by the Board). If an Option is
cancelled without being exercised, that cancelled Option shall continue to be
counted against the limit on Options that may be granted to any individual under
this Section 4.2. For purposes of the Plan, an "EXECUTIVE" shall mean any
individual who is subject to Section 16 of the Exchange Act or who is a "covered
employee" under Section 162(m) of the Code, in either case because of such
individual's affiliation with the Company or an affiliate of the Company.

SECTION 5. STOCK OPTIONS.

      5.1. Grant and Exercise. Stock Options granted under the Plan may be of
two types: (i) Incentive Stock Options and (ii) Nonqualified Stock Options. Any
Stock Option granted under the Plan shall contain such terms, not inconsistent
with this Plan, or with respect to Incentive Stock Options, not inconsistent
with the Plan and the Code, as the Committee may from time to time approve. The
Committee shall have the authority to

                                       6
<PAGE>

grant Incentive Stock Options or Non-Qualified Stock Options, or both types of
Stock Options which may be granted alone or in addition to other awards granted
under the Plan. To the extent that any Stock Option intended to qualify as an
Incentive Stock Option does not so qualify, it shall constitute a separate
Nonqualified Stock Option.

      5.2. Terms and Conditions. Stock Options granted under the Plan shall be
subject to the following terms and conditions:

      (a) Option Term. The term of each Stock Option shall be fixed by the
Committee; provided, however, that an Incentive Stock Option may be granted only
within the ten-year period commencing from the Effective Date and may only be
exercised within ten years of the date of grant (or five years in the case of an
Incentive Stock Option granted to an optionee who, at the time of grant, owns
Common Stock possessing more than 10% of the total combined voting power of all
classes of voting stock of the Company, or the Parent or a Subsidiary of the
Company ("10% Stockholder").

      (b) Exercise Price. The exercise price per share of Common Stock
purchasable under an Incentive Stock Option shall be determined by the Committee
at the time of grant and may not be less than 100% of the Fair Market Value on
the date of grant (or, if greater, the par value of a share of Common Stock);
provided, however, that (i) the exercise price of an Incentive Stock Option
granted to a 10% Stockholder shall not be less than 110% of the Fair Market
Value on the date of grant; and (ii) if the Stock Option (other than an
Incentive Stock Option) is granted in connection with the recipient's hiring,
retention, reaching an agreement (oral or written) with the Company with respect
to such hiring or retention, promotion or similar event, the option exercise
price may be not less than the Fair Market Value on the date on which the
recipient is hired or retained, reached such agreement with respect to such
hiring or retention, or is promoted (or similar event), if the grant of the
Stock Option occurs not more than 120 days after the date of such hiring,
retention, agreement, promotion or other event.

      (c) Exercisability. Stock Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee and as set forth in Section 10, below. If the Committee provides, in
its discretion, that any Stock Option is exercisable only in installments, i.e.,
that it vests over time, the Committee may waive such installment exercise
provisions at any time at or after the time of grant in whole or in part, based
upon such factors as the Committee shall determine.

      (d) Method of Exercise. Subject to whatever installment, exercise and
waiting period provisions are applicable in a particular case, Stock Options may
be exercised in whole or in part at any time during the term of the Option by
giving written notice of exercise to the Company specifying the number of shares
of Common Stock to be purchased. Such notice shall be accompanied by payment in
full of the purchase price, which shall be in cash or, if provided in the
Agreement, either in shares of Common Stock (including Restricted Stock and
other contingent awards under this Plan) or partly

                                       7
<PAGE>

in cash and partly in such Common Stock, or such other means which the Committee
determines are consistent with the Plan's purpose and applicable law. Cash
payments shall be made by wire transfer, certified or bank check or personal
check, in each case payable to the order of the Company; provided, however, that
the Company shall not be required to deliver certificates for shares of Common
Stock with respect to which an Option is exercised until the Company has
confirmed the receipt of good and available funds in payment of the purchase
price thereof (except that, in the case of an exercise arrangement approved by
the Committee and described in the last sentence of this paragraph, payment may
be made as soon as practicable after the exercise). Payments in the form of
Common Stock shall be valued at the Fair Market Value on the date prior to the
date of exercise. Such payments shall be made by delivery of stock certificates
in negotiable form that are effective to transfer good and valid title thereto
to the Company, free of any liens or encumbrances. Subject to the terms of the
Agreement, the Committee may, in its sole discretion, at the request of the
Holder, deliver upon the exercise of a Nonqualified Stock Option a combination
of shares of Deferred Stock and Common Stock; provided, however, that,
notwithstanding the provisions of Section 8 of the Plan, such Deferred Stock
shall be fully vested and not subject to forfeiture. A Holder shall have none of
the rights of a Stockholder with respect to the shares subject to the Option
until such shares shall be transferred to the Holder upon the exercise of the
Option. The Committee may permit a Holder to elect to pay the Exercise Price
upon the exercise of a Stock Option by irrevocably authorizing a third party to
sell shares of Common Stock (or a sufficient portion of the shares) acquired
upon exercise of the Stock Option and remit to the Company a sufficient portion
of the sale proceeds to pay the entire Exercise Price and any tax withholding
resulting from such exercise.

      (e) Transferability. Except as may be set forth in the next sentence of
this Section or in the Agreement, no Stock Option shall be transferable by the
Holder other than by will or by the laws of descent and distribution or as
permitted by the Code and Rule 16b-3 under the Exchange Act, and all Stock
Options shall be exercisable, during the Holder's lifetime, only by the Holder
(or, to the extent of legal incapacity or incompetency, the Holder's guardian or
legal representative). Notwithstanding the foregoing, a Holder may (A) transfer
any Stock Option pursuant to a Qualified Domestic Relations Order, and (B) with
the approval of the Committee, transfer a Nonqualified Stock Option by gift, for
no consideration, to or for the benefit of the Holder's "Immediate Family" (as
defined below), or to an entity in which the Holder and/or members of Holder's
Immediate Family own more than fifty percent of the voting interest, in exchange
for an interest in that entity, subject to such limits as the Committee may
establish and the execution of such documents as the Committee may require, and
the transferee shall remain subject to all the terms and conditions applicable
to the Stock Option prior to such transfer. The term "Immediate Family" shall
mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law, including adoptive
relationships, any person sharing the Holder's household (other than a tenant or

                                       8
<PAGE>

employee), a trust in which these persons have more than fifty percent
beneficial interest, and a foundation in which these persons (or the Holder)
control the management of the assets.

      (f) Termination by Reason of Death. If a Holder's Termination is by reason
of death, any Stock Option held by such Holder, unless otherwise determined by
the Committee and set forth in the Agreement, shall thereupon automatically
terminate, except that the portion of such Stock Option that has vested on the
date of death may thereafter be exercised by the legal representative of the
estate or by the legatee of the Holder under the will of the Holder, for a
period of one year (or such other greater or lesser period as the Committee may
specify in the Agreement) from the date of such death or until the expiration of
the stated term of such Stock Option, whichever period is shorter.

      (g) Termination by Reason of Disability. If a Holder's Termination is by
reason of Disability, any Stock Option held by such Holder, unless otherwise
determined by the Committee and set forth in the Agreement, shall thereupon
automatically terminate, except that the portion of such Stock Option that has
vested on the date of Termination may thereafter be exercised by the Holder for
a period of one year (or such other greater or lesser period as the Committee
may specify in the Agreement) from the date of Termination or until the
expiration of the stated term of such Stock Option, whichever period is shorter.

      (h) Other Termination. Subject to the provisions of Section 13.3, below,
and unless otherwise determined by the Committee and set forth in the Agreement,
if a Holder's Termination is for any reason other than death or Disability, then
the portion of such Stock Option that has vested on the date of Termination may
be exercised for the lesser of three months after Termination or the balance of
such Stock Option's term (or such other greater or lesser period as the
Committee may specify in the Agreement).

      (i) Additional Incentive Stock Option Limitation. In the case of an
Incentive Stock Option, the aggregate Fair Market Value (on the date of grant of
the Option) with respect to which Incentive Stock Options become exercisable for
the first time by a Holder during any calendar year (under all such plans of the
Company and its Parent and Subsidiaries) shall not exceed $100,000.

      (j) Buyout and Settlement Provisions. The Committee may at any time, in
its sole discretion, offer to repurchase a Stock Option previously granted,
based upon such terms and conditions as the Committee shall establish and
communicate to the Holder at the time that such offer is made.

      5.3. Stock Reload Option. If a Holder tenders shares of Common Stock to
pay the exercise price of a Stock Option ("Underlying Option") and/or arranges
to have a portion of the shares otherwise issuable upon exercise withheld to pay
the applicable withholding

                                       9
<PAGE>

taxes, then the Holder may receive, at the discretion of the Committee, a new
Stock Reload Option to purchase that number of shares of Common Stock equal to
the number of shares tendered to pay the exercise price and the withholding
taxes (but only if such tendered shares were held by the Holder for at least six
months). Stock Reload Options may be any type of option permitted under the Code
and will be granted subject to such terms, conditions, restrictions and
limitations as may be determined by the Committee from time to time. Such Stock
Reload Option shall have an exercise price equal to the Fair Market Value as of
the date of exercise of the Underlying Option. Unless the Committee determines
otherwise, a Stock Reload Option may be exercised commencing one year after it
is granted and shall expire on the date of expiration of the Underlying Option
to which the Reload Option is related.

SECTION 6. STOCK APPRECIATION RIGHTS.

      6.1. Grant and Exercise. The Committee may grant Stock Appreciation Rights
to participants who have been or are being granted Stock Options under the Plan
as a means of allowing such participants to exercise their Stock Options without
the need to pay the exercise price in cash. In the case of a Nonqualified Stock
Option, a Stock Appreciation Right may be granted either at or after the time of
the grant of such Nonqualified Stock Option. In the case of an Incentive Stock
Option, a Stock Appreciation Right may be granted only at the time of the grant
of such Incentive Stock Option.

      6.2. Terms and Conditions. Stock Appreciation Rights shall be subject to
the following terms and conditions:

      (a) Exercisability. Stock Appreciation Rights shall be exercisable as
shall be determined by the Committee and set forth in the Agreement, subject to
the limitations, if any, imposed by the Code with respect to related Incentive
Stock Options.

      (b) Termination. A Stock Appreciation Right shall terminate and shall no
longer be exercisable upon the termination or exercise of the related Stock
Option.

      (c) Method of Exercise. Stock Appreciation Rights shall be exercisable
upon such terms and conditions as shall be determined by the Committee and set
forth in the Agreement and by surrendering the applicable portion of the related
Stock Option. Upon such exercise and surrender, the Holder shall be entitled to
receive a number of shares of Common Stock equal to the SAR Value divided by the
Fair Market Value on the date the Stock Appreciation Right is exercised.

      (d) Shares Affected Upon Plan. The granting of a Stock Appreciation Right
shall not affect the number of shares of Common Stock available under for awards
under the Plan. The number of shares Available for awards under the Plan will,
however, be reduced by the number of shares of Common Stock acquirable upon
exercise of the Stock Option to which such Stock Appreciation Right relates.

                                       10
<PAGE>

SECTION 7. RESTRICTED STOCK.

      7.1. Grant. Shares of Restricted Stock may be awarded either alone or in
addition to other awards granted under the Plan. The Committee shall determine
the eligible persons to whom, and the time or times at which, grants of
Restricted Stock will be awarded, the number of shares to be awarded, the price
(if any) to be paid by the Holder, the time or times within which such awards
may be subject to forfeiture ("Restriction Period"), the vesting schedule and
rights to acceleration thereof and all other terms and conditions of the awards.

      7.2. Terms and Conditions. Each Restricted Stock award shall be subject to
the following terms and conditions:

      (a) Certificates. Restricted Stock, when issued, will be represented by a
stock certificate or certificates registered in the name of the Holder to whom
such Restricted Stock shall have been awarded. During the Restriction Period,
certificates representing the Restricted Stock and any securities constituting
Retained Distributions (as defined below) shall bear a legend to the effect that
ownership of the Restricted Stock (and such Retained Distributions) and the
enjoyment of all rights appurtenant thereto are subject to the restrictions,
terms and conditions provided in the Plan and the Agreement. Such certificates
shall be deposited by the Holder with the Company, together with stock powers or
other instruments of assignment, each endorsed in blank, which will permit
transfer to the Company of all or any portion of the Restricted Stock and any
securities constituting Retained Distributions that shall be forfeited or that
shall not become vested in accordance with the Plan and the Agreement.

      (b) Rights of Holder. Restricted Stock shall constitute issued and
outstanding shares of Common Stock for all corporate purposes. The Holder will
have the right to vote such Restricted Stock, to receive and retain all regular
cash dividends and other cash equivalent distributions as the Board may in its
sole discretion designate, pay or distribute on such Restricted Stock and to
exercise all other rights, powers and privileges of a holder of Common Stock
with respect to such Restricted Stock, with the exceptions that (i) the Holder
will not be entitled to delivery of the stock certificate or certificates
representing such Restricted Stock until the Restriction Period shall have
expired and unless all other vesting requirements with respect thereto shall
have been fulfilled; (ii) the Company will retain custody of the stock
certificate or certificates representing the Restricted Stock during the
Restriction Period; (iii) other than regular cash dividends and other cash
equivalent distributions as the Board may in its sole discretion designate, pay
or distribute, the Company will retain custody of all distributions ("Retained
Distributions") made or declared with respect to the Restricted Stock (and such
Retained Distributions will be subject to the same restrictions, terms and
conditions as are applicable to the Restricted Stock) until such time, if ever,
as the Restricted Stock with respect to which such Retained Distributions shall
have been made, paid or declared shall have become vested and with respect to
which the Restriction Period shall have expired;

                                       11
<PAGE>

(iv) a breach of any of the restrictions, terms or conditions contained in this
Plan or the Agreement or otherwise established by the Committee with respect to
any Restricted Stock or Retained Distributions will cause a forfeiture of such
Restricted Stock and any Retained Distributions with respect thereto.

      (c) Vesting; Forfeiture. Upon the expiration of the Restriction Period
with respect to each award of Restricted Stock and the satisfaction of any other
applicable restrictions, terms and conditions (i) all or part of such Restricted
Stock shall become vested in accordance with the terms of the Agreement, subject
to Section 10, below, and (ii) any Retained Distributions with respect to such
Restricted Stock shall become vested to the extent that the Restricted Stock
related thereto shall have become vested, subject to Section 10, below. Any such
Restricted Stock and Retained Distributions that do not vest shall be forfeited
to the Company and the Holder shall not thereafter have any rights with respect
to such Restricted Stock and Retained Distributions that shall have been so
forfeited.

SECTION 8. DEFERRED STOCK.

      8.1. Grant. Shares of Deferred Stock may be awarded either alone or in
addition to other awards granted under the Plan. The Committee shall determine
the eligible persons to whom and the time or times at which grants of Deferred
Stock will be awarded, the number of shares of Deferred Stock to be awarded to
any person, the duration of the period ("Deferral Period") during which, and the
conditions under which, receipt of the shares will be deferred, and all the
other terms and conditions of the awards.

      8.2. Terms and Conditions. Each Deferred Stock award shall be subject to
the following terms and conditions:

      (a) Certificates. At the expiration of the Deferral Period (or the
Additional Deferral Period referred to in Section 8.2 (d) below, where
applicable), share certificates shall be issued and delivered to the Holder, or
his legal representative, representing the number equal to the shares covered by
the Deferred Stock award.

      (b) Rights of Holder. A person entitled to receive Deferred Stock shall
not have any rights of a Stockholder by virtue of such award until the
expiration of the applicable Deferral Period and the issuance and delivery of
the certificates representing such Common Stock. The shares of Common Stock
issuable upon expiration of the Deferral Period shall not be deemed outstanding
by the Company until the expiration of such Deferral Period and the issuance and
delivery of such Common Stock to the Holder.

      (c) Vesting; Forfeiture. Upon the expiration of the Deferral Period with
respect to each award of Deferred Stock and the satisfaction of any other
applicable restrictions, terms and conditions all or part of such Deferred Stock
shall become vested in accordance with the terms of the Agreement, subject to
Section 10, below. Any such

                                       12
<PAGE>

Deferred Stock that does not vest shall be forfeited to the Company and the
Holder shall not thereafter have any rights with respect to such Deferred Stock.

      (d) Additional Deferral Period. A Holder may request to, and the Committee
may at any time, defer the receipt of an award (or an installment of an award)
for an additional specified period or until a specified event ("Additional
Deferral Period"). Subject to any exceptions adopted by the Committee, such
request must generally be made at least one year prior to expiration of the
Deferral Period for such Deferred Stock award (or such installment).

SECTION 9. OTHER STOCK-BASED AWARDS.

      Other Stock-Based Awards may be awarded, subject to limitations under
applicable law, that are denominated or payable in, valued in whole or in part
by reference to, or otherwise based on or related to, shares of Common Stock, as
deemed by the Committee to be consistent with the purposes of the Plan,
including, without limitation, purchase rights, shares of Common Stock awarded
which are not subject to any restrictions or conditions, convertible or
exchangeable debentures, or other rights convertible into shares of Common Stock
and awards valued by reference to the value of securities of or the performance
of specified Subsidiaries. Other Stock-Based Awards may be awarded either alone
or in addition to or in tandem with any other awards under this Plan or any
other plan of the Company. Each other Stock-Based Award shall be subject to such
terms and conditions as may be determined by the Committee.

SECTION 10. ACCELERATED VESTING AND EXERCISABILITY.

      10.1 Fundamental Transactions. If the Company merges with another entity
in a transaction in which the Company is not the surviving entity or if, as a
result of any other transaction or event, other securities are substituted for
the Shares or Shares may no longer be issued (each a "FUNDAMENTAL TRANSACTION"),
then, notwithstanding any other provision of this Plan, the Committee shall do
one or more of the following contingent on the closing or completion of the
Fundamental Transaction: (a) arrange for the substitution of Awards on equity
securities other than Shares (including, if appropriate, equity securities of an
entity other than the Company) in exchange for such Awards, (b) accelerate the
vesting and termination of outstanding Options so that Options can be exercised
in full before or otherwise in connection with the closing or completion of the
transaction or event but then terminate, (c) terminate the Restriction Period or
Deferral Period applicable to any outstanding Awards, and (d) cancel Awards in
exchange for cash payments to Award holders. The Committee need not adopt the
same rules for each Award or each Award holder.

      10.2 Changes of Control. The Committee may also, but need not, specify
that other transactions or events constitute a "CHANGE OF CONTROL". The
Committee may do that either before or after the transaction or event occurs.
Examples of transactions or

                                       13
<PAGE>

events that the Committee may treat as Changes of Control are: (a) the Company
or an "AFFILIATE" (as defined in Regulation D of the Securities Act) is a party
to a merger, consolidation, amalgamation, or other transaction in which the
beneficial shareholders of the Company, immediately before the transaction,
beneficially own securities representing 50% or less of the total combined
voting power or value of the Company immediately after the transaction, (b) any
person or entity, including a "group" as contemplated by Section 13(d)(3) of the
Exchange Act, acquires securities holding 30% or more of the total combined
voting power or value of the Company, or (c) as a result of or in connection
with a contested election of Company Directors, the persons who were Company
Directors immediately before the election cease to constitute a majority of the
Board. In connection with a Change of Control, notwithstanding any other
provision of this Plan, the Committee may take any one or more of the actions
described in Section 10.1. In addition, the Committee may extend the date for
the exercise of Options (but not beyond their original Expiration Date). The
Committee need not adopt the same rules for each Award or each Award holder.

      10.3 Divestiture. If the Company or an Affiliate sells or otherwise
transfers equity securities of an Affiliate to a person or entity other than the
Company or an Affiliate, or leases, exchanges or transfers all or any portion of
its assets to such a person or entity, then the Committee, in its sole and
absolute discretion, may specify that such transaction or event constitutes a
"DIVESTITURE". In connection with a Divestiture, notwithstanding any other
provision of this Plan, the Committee may take one or more of the actions
described in Section 10.1 or 10.2 with respect to Options or Option Shares held
by, for example, Employees, Directors or Consultants for whom that transaction
or event results in a Termination. The Committee need not adopt the same rules
for each Option or each Optionee.

      10.4 Dissolution. If the Company adopts a plan of dissolution, the
Committee may, in its sole and absolute discretion, cause Options to be fully
vested and exercisable (but not after their Expiration Date) before the
dissolution is completed but contingent on its completion and may cause the
Company's repurchase rights on Option Shares to lapse upon completion of the
dissolution. To the extent not exercised before the earlier of the completion of
the dissolution or their Expiration Date, Options shall terminate just before
the dissolution is completed. The Committee need not adopt the same rules for
each Option or each Optionee.

      10.5 Cut-Back to Preserve Benefits. If the Administrator determines that
the net after-tax amount to be realized by any Award holder, taking into account
any accelerated vesting, termination of Restriction or Deferral Periods, or cash
payments to that Award holder in connection with any transaction or event
addressed in this Section 10 would be greater if one or more of those steps were
not taken with respect to that Award holder's Award, then and to that extent one
or more of those steps shall not be taken.

                                       14
<PAGE>

SECTION 11. AMENDMENT AND TERMINATION.

      The Board may at any time, and from time to time, amend alter, suspend or
discontinue any of the provisions of the Plan, but no amendment, alteration,
suspension or discontinuance shall be made that would impair the rights of a
Holder under any Agreement theretofore entered into hereunder, without the
Holder's consent.

SECTION 12. TERM OF PLAN.

      12.1. Effective Date. The Plan shall be effective as of October 1, 2001,
subject to the approval of the Plan by the Company's stockholders within one
year after the Effective Date. Any awards granted under the Plan prior to such
approval shall be effective when made (unless otherwise specified by the
Committee at the time of grant), but shall be conditioned upon, and subject to,
such approval of the Plan by the Company's stockholders and no awards shall vest
or otherwise become free of restrictions prior to such approval.

      12.2. Termination Date. Unless terminated by the Board, this Plan shall
continue to remain effective until such time as no further awards may be granted
and all awards granted under the Plan are no longer outstanding. Notwithstanding
the foregoing, grants of Incentive Stock Options may be made only during the ten
year period following the Effective Date.

SECTION 13. GENERAL PROVISIONS.

      13.1. Written Agreements. Each award granted under the Plan shall be
confirmed by, and shall be subject to the terms of, the Agreement executed by
the Company and the Holder, or such other document as may be determined by the
Committee. The Committee may terminate any award made under the Plan if the
Agreement relating thereto is not executed and returned to the Company within 10
days after the Agreement has been delivered to the Holder for his or her
execution.

      13.2. Unfunded Status of Plan. The Plan is intended to constitute an
"unfunded" plan for incentive and deferred compensation. With respect to any
payments not yet made to a Holder by the Company, nothing contained herein shall
give any such Holder any rights that are greater than those of a general
creditor of the Company.

      13.3. Employees.

      (a) Termination for Cause. If a Holder's Termination is due to cause, the
Committee may, in its sole discretion, take action to cause all of the Holder's
Options to terminate and cease to be exercisable at the time of termination.
"Cause" means (i) the willful and continued failure by the Holder to
substantially perform his or her duties and obligations (other than any such
failure resulting from his or her incapacity due to physical or mental illness)
after there has been delivered to the Holder a written demand for performance
from the Company which describes the basis for the Company's belief

                                       15
<PAGE>

that the Holder has not substantially performed his or her duties; or (ii) the
perpetration by the Holder of a material dishonest act or fraud against the
Company or its respective subsidiaries; or (iii) the willful engaging by the
Holder in misconduct which is materially injurious to the Company or any of its
subsidiaries, monetarily or otherwise, including but not limited to, disclosure
or misuse of any confidential information, intoxication during the performance
of Company duties, or use of unlawful controlled substances or unlawful use of
lawful controlled substances; or (iv) the Holder's conviction of a felony not
disclosed to the Company prior to initiation of service for the Company which
the Committee reasonably believes has had or will have a material detrimental
effect on the Company's reputation or business. For purposes of this paragraph,
no act, or failure to act, on Holder's part shall be considered "willful" unless
done, or omitted to be done, by the Holder in bad faith and without reasonable
belief that the action or omission was in the best interests of the Company and
its subsidiaries.

      (b) No Right of Employment. Nothing contained in the Plan or in any award
hereunder shall be deemed to confer upon any Holder who is an employee of the
Company or any Subsidiary any right to continued employment with the Company or
any Subsidiary, nor shall it interfere in any way with the right of the Company
or any Subsidiary to terminate the employment of any Holder who is an employee
at any time.

      13.4. Investment Representations; Company Policy. The Committee may
require each person acquiring shares of Common Stock pursuant to a Stock Option
or other award under the Plan to represent to and agree with the Company in
writing that the Holder is acquiring the shares for investment without a view to
distribution thereof. Each person acquiring shares of Common Stock pursuant to a
Stock Option or other award under the Plan shall be required to abide by all
policies of the Company in effect at the time of such acquisition and thereafter
with respect to the ownership and trading of the Company's securities.

      13.5. Additional Incentive Arrangements. Nothing contained in the Plan
shall prevent the Board from adopting such other or additional incentive
arrangements as it may deem desirable, including, but not limited to, the
granting of Stock Options and the awarding of Common Stock and cash otherwise
than under the Plan; and such arrangements may be either generally applicable or
applicable only in specific cases.

      13.6. Withholding Taxes. Not later than the date as of which an amount
must first be included in the gross income of the Holder for Federal income tax
purposes with respect to any Stock Option or other award under the Plan, the
Holder shall pay to the Company, or make arrangements satisfactory to the
Committee regarding the payment of, any Federal, state and local taxes of any
kind required by law to be withheld or paid with respect to such amount. If
permitted by the Committee, tax withholding or payment obligations may be
settled with Common Stock, including Common Stock that is part of the award that
gives rise to the withholding requirement. The obligations of the Company under
the Plan shall be conditioned upon such payment or arrangements and the

                                       16
<PAGE>

Company or the Holder's employer (if not the Company) shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the Holder from the Company or any Subsidiary.

      13.7. Governing Law. The Plan and all awards made and actions taken
thereunder shall be governed by and construed in accordance with the laws of the
State of Delaware (without regard to choice of law provisions).

      13.8. Other Benefit Plans. Any award granted under the Plan shall not be
deemed compensation for purposes of computing benefits under any retirement plan
of the Company or any Subsidiary and shall not affect any benefits under any
other benefit plan now or subsequently in effect under which the availability or
amount of benefits is related to the level of compensation (unless required by
specific reference in any such other plan to awards under this Plan).

      13.9. Non-Transferability. Except as otherwise expressly provided in the
Plan or the Agreement, no right or benefit under the Plan may be alienated,
sold, assigned, hypothecated, pledged, exchanged, transferred, encumbranced or
charged, and any attempt to alienate, sell, assign, hypothecate, pledge,
exchange, transfer, encumber or charge the same shall be void.

      13.10. Applicable Laws. The obligations of the Company with respect to all
Stock Options and awards under the Plan shall be subject to (i) all applicable
laws, rules and regulations and such approvals by any governmental agencies as
may be required, including, without limitation, the Securities Act of 1933 (the
"Securities Act"), as amended, and (ii) the rules and regulations of any
securities exchange on which the Common Stock may be listed.

      13.11. Conflicts. If any of the terms or provisions of the Plan or an
Agreement conflict with the requirements of Section 422 of the Code, then such
terms or provisions shall be deemed inoperative to the extent they so conflict
with such requirements. Additionally, if this Plan or any Agreement does not
contain any provision required to be included herein under Section 422 of the
Code, such provision shall be deemed to be incorporated herein and therein with
the same force and effect as if such provision had been set out at length herein
and therein. If any of the terms or provisions of any Agreement conflict with
any terms or provisions of the Plan, then such terms or provisions shall be
deemed inoperative to the extent they so conflict with the requirements of the
Plan. Additionally, if any Agreement does not contain any provision required to
be included therein under the Plan, such provision shall be deemed to be
incorporated therein with the same force and effect as if such provision had
been set out at length therein.

                                [END OF DOCUMENT]

                                       17

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