Document:

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    EXHIBIT
      10.12

    

    INDEPENDENT
      CONTRACTOR AGREEMENT

    

    THIS
      INDEPENDENT CONTRACTOR AGREEMENT ("Agreement")
      is
      made
      and entered into
      on
      November 6, 2007, between EAST COAST ETHANOL, LLC ("Company"),
      a
      Delaware limited
      liability company having principal office at ______________________ and
      THOMPSON, HOFFMAN & COMPANY ("Consultant"),
      a
      Georgia
      corporation with principal
      offices at 4485 Tench Road, Suite 1620, Suwanee, Georgia 30024, Attn: Clint
      Thompson.

     

    Statement
      of Background 

    

    The
      Predecessor Companies (as defined hereafter) have merged with and into Company
      (the
      "Transaction").
      The
      Predecessor Companies were each in the process of developing a corn-based
      ethanol production facility (each of the four facilities, a "Facility"
      and
      collectively, the "Facilities").
      The
      Company, through such merger, is now in the process of developing the
Facilities.

    

    Atlantic
      Ethanol, LLC, a Georgia limited liability company ("AE"), Florida Ethanol,
      LLC,
a
      Florida
      limited liability company ("FE"). Mid-Atlantic Ethanol, LLC, a North Carolina
      limited liability
      company ("MAE"), and Palmetto Agri-Fuels, LLC, a South Carolina limited
      liability company ("PAF") are each referred to as a "Predecessor
      Company" and
      are
      collectively referred to
      as the
"Predecessor
      Companies".

    

    Consultant
      executed an Independent Consulting Agreement with AE dated May, 2006 and
that
      certain First Amendment to Memorandum of Understanding (as amended, the "AE
      Agreement"),
      a Memorandum of Understanding with PAF dated August 31, 2006 and that certain
      First Amendment to Memorandum of Understanding dated December 15, 2006 (as
      amended, the "PAF
      Agreement"), a Memorandum of Understanding with MAE dated May 24, 2007 and
      that
certain
      First Amendment to Memorandum of Understanding dated December 30, 2006 (as
      amended,
      the "MAE Agreement") and a Memorandum of Understanding with FE dated June 29,
      2007
      (the
      "FE Agreement"; together with the AE Agreement, PAF Agreement and MAE
Agreement,
      each a "MOU" and collectively, the "MOUs").

    

    The
      Company has, through merger, succeeded to the Predecessor Companies' rights
      and
      obligations under the MOUs and Consultant and Company desire to terminate the
      MOUs and Company desires to engage Consultant as an independent contractor
      to
      perform certain consulting services
      and assist Company in the construction and operation of the Facilities at
      locations to in Georgia, North Carolina, South Carolina and Florida as more
      particularly to be identified by Company (the "Sites").
      Company
      is willing to engage Consultant and Consultant is willing to undertake the
      engagement with Company subject to the terms and conditions set forth in this
      Agreement.

    

    Statement
      of Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NOW,
      THEREFORE, in consideration of the mutual agreements, representations,
warranties
      and covenants set forth herein, and other good and valuable consideration,
      the
      receipt and
      sufficiency of which are hereby acknowledged, Company and Consultant hereby
      agree as follows:

    

    1.    Engagement.

    

    (a)    Services.
      From
      the
      date hereof and until completion of the following or the termination of this
      Agreement (whichever occurs first). Consultant agrees to make commercially
      reasonable
      efforts to perform the following (the "Services"):

    

    (i)    If
      requested by Company, recommend a firm ("Study
      Firm") that
      Company
      may engage to perform one or more feasibility studies as Company may require
      to
determine
      the likelihood of success of the construction and operation a corn-based ethanol
      production
      facility at each of the Sites;

    

    (ii)    If
      requested by Company, assist Company in identifying and engaging
      an accounting firm or consulting firm ("Business
      Planner"), if
      required by the Equity Partner
      (defined below), to prepare a business plan for the Projects (as defined
      hereafter) suitable for
      use
      with the Equity Partner;

    

    (iii)    Assist
      in
      introducing Company to an equity capital consultant ("Equity
      Partner") that Company may, in its sole discretion, engage to conduct local
      equity drives or
      identify other equity investors, and/or lenders (collectively, "Lenders")
      willing
      to supply capital,
      on terms acceptable to Company in its sole discretion, that may be required
      to
      construct and
      initially operate the Facilities;

    

    (iv)    Assist
      in
      locating and introducing to Company an entity or entities to
      be
      engaged by the Company who has/have the ability to construct the Facilities
      (collectively, the
      "Design-Builder");

    

    (v)    Identify
      candidates for Company to hire as general managers or chief
      executive officers ("Managers")
      of
      the
      Facilities, who will be responsible for the operation of
      the
      Facility; and

    

    (vi)    Until
      a
      Manager is hired for a Facility, lead and guide resources hired
      by
      Company through the process of development at each Site (each a "Project").
      Company
      and
      Consultant will cooperate to develop and approve a Project timeline for each
      Project and, until
      the
      Manager is hired, Consultant shall make commercially reasonable efforts to
      keep
      each Project on its timeline.

    

    (b)    Independent
      Contractor. Consultant
      will be an independent contractor and not
      an
      employee of Company. Neither Consultant nor Company shall represent directly
      or
indirectly
      that Consultant is an agent, employee, or legal representative of Company.
      Consultant shall
      not
      have the right, power or authority to incur any liabilities or
      obligations,

    
      
        
        

      

      
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    express
      or implied, or make any representations of any kind in the name of or on behalf
      of Company. Consultant
      and Company agree that Company will treat Consultant as an independent
      contractor for
      purposes of all local, state and federal tax laws and file forms consistent
      with
      that status.

    

    Consultant
      will be solely responsible to pay any and all local, state, and/or federal
      income, Social Security
      and unemployment taxes for Consultant and its personnel. Consultant acknowledges
      and agrees
      that it and its personnel shall not receive any employee benefits of any kind
      from Company as
      a
      result of providing services under this Agreement. Consultant will provide,
      pay,
      or satisfy at its
      own
      expense its own offices, office supplies, telecommunications, and all other
      tangible and intangible
      needs connected with performing this Agreement and all matters related hereto,
      and shall
      not
      be entitled to any reimbursement from Company therefor except that all
      reasonable expenses
      for travel and lodging shall be reimbursed by the Company upon submission of
      receipts confirming
      such expenses. Consultant's compensation expressly provided for in Section
      2
      below is
      Consultant's only compensation for performing this Agreement and for all matters
      related hereto.
      Notwithstanding anything contained to the contrary herein, neither Consultant,
      its shareholders,
      officers, directors, employees nor its agents shall itself or themselves be
      asked to, or actually,
      solicit an offer to buy, or accept an offer to sell, any equity security to
      be
      issued by Company.

    

    2.    Excluded
      Site Areas. Notwithstanding anything contained to the contrary herein,
Company
      agrees that it shall not locate any Site within any area which is within
      seventy-five (75) miles of the intersection of Highways 15 and 24 in
      Sandersville. Georgia.

    

    3.    Compensation.

    

    (a)    The
      Company agrees to pay Consultant the following amounts and in the following
      manner:

    

    (i)    $100
      per
      hour for Services rendered at Company's request until the earlier
      of the engagement of the Manager or Start-Up (defined below);

    

    (ii)    For
      each
      Facility, $750,000 upon the latter of Company closing a loan, receiving equity
      or otherwise securing funding, necessary to complete construction and
operate
      such Facility through Start-Up. The parties agree and understand that the fees
      set forth in this
      subsection are part of the overall compensation plan of the Consultant and
      shall
      not be characterized
      as brokerage fees, finder's fees, loans from Company to Consultant, or any
      type
      of loan
      commitment fees and they are being paid at the time specified in this Section
      3(a)(ii) as a convenience
      to the Company in that Company should have funds more readily available to
      pay
such
      amounts then-owed. For the absence of confusion, the fees set forth in this
      subsection shall be paid entirely to Consultant without any obligation on behalf
      of Consultant to pay any fees, costs
      or
      expenses of Company, any Facility or any Project.

    

    (iii)    For
      each
      Facility:

    

    (a)    within
      ninety
      (90) days after the second full calendar year

    
      
        
        

      

      
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    after
      Start-Up of such Facility, an amount equal to 2.0% of Net Income (as defined
      hereafter); generated
      by such Facility in such second year;

     

    (b)    within
      ninety (90) days after the third full calendar year after Start-Up
      of such Facility, an amount equal to 2.0% of Net Income generated by such.
      Facility in such
      third year;

    

    (c)    within
      ninety (90) days after the fourth full calendar year after
      Start-Up of such Facility, an amount equal to 2.0% of Net Income generated
      by
      such. 

    Facility
      in
      such
      fourth year;

    

    (d)    within
      ninety (90) days after the fifth full calendar year after Start-Up
      of such Facility, an amount equal to 2.0% of Net Income generated by such
      Facility in such
      fifth year; and

    

    (e)    within
      ninety (90) days after the sixth full calendar year after Start-Up
      of such Facility, an amount equal to 2.0% of Net Income generated by such
      Facility in such
      sixth year;

    

    (f)    within
      ninety (90) days after the seventh full calendar year after
      Start-Up of such Facility, an amount equal to 2.0% of Net Income generated
      by
      such Facility in
      such
      seventh year;

    

    (g)    within
      ninety (90) days after the eighth full calendar year after Start-Up of such
      Facility, an amount equal to 2.0% of Net Income generated by such Facility
      in
      such
      eighth year;

    

    (h)    within
      ninety (90) days after the ninth full calendar year after
      Start-Up of such Facility, an amount equal to 2.0% of Net Income generated
      by
      such Facility in
      such
      ninth year; and

    

    (i)    within
      ninety (90) days after the tenth full calendar year after
      Start-Up of such Facility, an amount equal to 2.0% of Net Income generated
      by
      such Facility
      in such tenth year.

    

    "Net
      Income" as
      used
      herein shall mean gross revenues of the Facility for the period in question
      less
      Costs Per Facility (as defined hereafter) for the period in question less the
      Corporate Overhead
      Factor (as defined hereafter) for the period in question.

    

    "Costs
      Per Facility" shall
      mean the total costs of operating the Facility and generating product incurred
      in accordance with the Christianson and Associate Financial Forecast utilized
      in
      the East Coast Ethanol Business Plan including but not limited to costs for
      corn, chemicals & enzymes, denaturant,
      electricity, natural gas, direct production costs, indirect production costs,
      depreciation and
      amortization, general and administrative expenses of the Facilities and interest
      expense of the Company
      related to such Facility.

    

    "Corporate
      Overhead Factor" shall
      mean the result obtained by dividing: (i)hard overhead costs for services or
      facilities shared by the Facilities including, without limitation, marketing,
      human resource and technology expenses and support staff and management salaries
      and other

    
      
        
        

      

      
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    business
      expenses
      and costs that cannot be allocated to a particular Facility or business venture
      or segment of
      the
      Company but instead represent costs and expenses associated with operating
      all
      of the Company's
      ethanol plants and other Company business ventures or segments (the "Hard
      Costs") by
      (ii)the total number of the Company's ethanol plants plus other Company ventures
      and segments
      that require the use of the hard overhead. The Hard Costs shall only include
      reasonable, ordinary
      course costs and expenses and shall not include any soft costs such as plant
      write-offs or other
      similar costs or expenses that may, for accounting purposes, be allocated at
      the
      Company level
      accounted for at the Company level but are specifically attributable to a
      particular plant, business
      venture or business segment of the Company. Along with each payment made under
      Section
      3(a)(iii), Company shall provide Consultant with an accounting showing the
      detail of the calculation
      of Net Income, Costs Per Facility and Corporate Overhead Factor.

    

    "Start-Up"
      means a
      Facility's being placed into service and actually producing ethanol in any
      commercial
      quantity.

    

    4.    Term
      and Termination.

    

    (a)    Term.
      The
      term of this Agreement shall commence on the effective date hereof
      and shall continue until the earlier of the following (the "Expiration
      Date"): (i)
      thirty (30) years from the effective date hereof; or (ii) the date which is
      (91)
      days after the tenth full calendar year
      after the last Start-Up of a Facility; provided that this Agreement may be
      terminated earlier pursuant
      to the terms of Section 4(b).

    

    (b)    Termination.
      This Agreement may be terminated prior to the Expiration Date
      by
      either party in the event of a material breach of the terms of this Agreement
      by
      the other party
      and
      the failure of the breaching party to cure such material breach within
      seventy-five (75) days
      after receiving written notice identifying the breach and demanding its
      cure.

    

    (c)    Effect
      of
      Termination or Expiration. Notwithstanding the termination or expiration
      of this Agreement: (i) no party shall be released from any obligation that
      accrued prior to
      the
      date of termination or expiration, including without limitation any payment
      obligations under
      Section 3, (ii) if this Agreement is terminated or expires on or after Start-Up
      of a Facility or Facilities,
      the payments set forth in Section 3. including without limitation those set
      forth in Sections
      3(a)(iii) with respect to such Facility or Facilities which have achieved
      Start-Up prior to the
      termination or expiration of this Agreement, shall continue regardless of
      termination or expiration, and (iii) each party shall remain bound by the
      provisions of this Agreement that by their terms impose upon such party
      obligations extending beyond the date of termination or expiration.

    

     5.    Company's
      Obligations. Company
      agrees not to engage another consultant to perform
      the Services during the term of this Agreement. Notwithstanding the foregoing,
      Company
      may engage consultants, independent contractors, or advisors, and/or hire
      employees, to
      perform services that are the same as some or all of and in addition to the
      Services. Unless terminated
      pursuant to Section 4(b), Company agrees to use commercially reasonable efforts
      to cooperate
      with Consultant in the performance of the Services, to

    
      
        
        

      

      
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    undertake
      the Projects and construct
      and operate the Facilities.

    

    (a)    Company
      agrees to indemnify, defend and hold harmless Consultant, its employees,
      shareholders, officers and directors (collectively, "Consultant Indemnitees")
      from and against
      any and all claims, demands and actions, and any liabilities, damages or
      expenses resulting therefrom,
      including court costs and reasonable attorneys' fees and other expenses of
      litigation actually incurred by Consultant Indemnitees at standard hourly rates
      without reference to any statutory reference or percentage, arising out of
      or
      related to: (i) any claims made by MEM Commercial
      Funding, LLC ("MEM") in connection with Consultant's contacts, discussions
      and/or
      negotiations with potential equity, debt or other financing sources for the
      Company (ii) breach
      by
      Company of its obligations hereunder, (iii) any Project; or (iv) the
      construction or operation
      of any Facility, except to the extent that the foregoing claims in subsections
      (ii)-(iv) are caused
      by
      Consultant's gross negligence, willful misconduct, or violation of applicable
      law

    

    (b)    The
      indemnities contained in this Section 5 shall survive termination or
expiration
      of this Agreement.

    

    6.    Consultant's
      Obligations. (a)
      Consultant agrees to indemnify, defend, and hold Company,
      its officers, directors, managers, members and agents, harmless from any and
      all
      claims, liabilities,
      losses, actions, causes of action, damages, legal costs, and expenses, including
      and actual
      reasonable attorneys' fees and other expenses of litigation actually incurred
      by
      Company at standard
      hourly rates without reference to any statutory reference or percentage arising
      out of or resulting
      in any manner in whole or in part to Consultant's gross negligence, willful
      misconduct, or violation of applicable law.

    

    (b)    The
      indemnities contained in Section 6(a) shall survive termination of this
Agreement.

    

    7.    Notices.
      All
      notices under this Agreement shall be in writing and shall be deemed
to
      have
      been sufficiently given or served and effective for all purposes when presented
      personally, or
      when
      transmitted by telex or facsimile telecopier with receipt confirmed on the
      transmitting machine,
      or three (3) days after being deposited in a United States postal receptacle
      for
      registered or
      certified mail addressed, return receipt requested, postage prepaid, or one
      (l)
      business day after delivery to a small package air courier offering service
      to
      the address of the intended recipient
      with shipping prepaid, to any person at the address set forth in the first
      paragraph of this Agreement
      or at such other address as said person shall subsequently designate in a
      writing delivered
      in the form of notice.

    

    8.    Termination
      of MOUs. The
      terms
      of all of the MOUs are hereby terminated and Consultant, the Company and the
      Predecessor Companies shall not owe each other any obligations under their
      respective MOUs. Company does hereby remise, release, acquit and forever
      discharge Consultant of and from all manner of actions, causes of action, suits,
      debts, covenants,
      accounts, trespasses, contracts, agreements, damages, judgments, liabilities,
      losses, costs,
      expenses, obligations, demands, actions, dues, any accrued and unpaid interest,
      claims for relief,
      attorneys fees, demands and claims of any nature whatsoever, in law or equity,
      whether

    
      
        
        

      

      
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    or
      not
      now
      or hereafter known, fixed or contingent, suspected or claimed, (a "Claim")
      which
Company
      or any Predecessor Company ever had, now has, or which it hereafter can, shall
      or may have
      or
      allege against Consultant arising from or in connection with any of the MOUs,
      provided, however,
      such release shall not apply to any acts by Consultant constituting fraud.
      Consultant does
      hereby remise, release, acquit and forever discharge Company of and from any
      and
      all Claims
      which Consultant ever had, now has, or which it hereafter can, shall or may
      have
      or allege against
      Company or a Predecessor Company arising from or in connection with any of
      the
      MOUs, provided,
      however, such release shall not apply to any acts by Company or any Predecessor
      Company
      constituting fraud. The parties hereto further covenant and agree not to bring,
      commence,
      prosecute, maintain or cause or permit to be brought, commenced, prosecuted
      or
maintained
      any suit or action, either at law or in equity, in any court or before any
      other
administrative
      or judicial authority regarding the MOUs. This covenant not to sue may be
pleaded
      as an affirmative defense to any action or other proceeding which may be
      brought, instituted
      or taken by any party or its predecessors, successors or assigns and all past
      and present shareholders,
      directors, officers, employees, agents, affiliates, heirs, and personal
      representatives, in
      breach
      of this covenant.

    

    9.    Miscellaneous.

    

    (a)    This
      Agreement is the sole agreement between the parties relating to the subject
      matter hereof and supersedes all prior understandings, writings, proposals,
      representations or
      communications, oral or written, of either party.

    

    (b)    To
      the
      extent that Company or Consultant is required to approve, accept or
      consent to any matter or thing related to this Agreement or a Project in
      general, such consent shall
      not
      be unreasonably withheld or delayed.

    

    (c)    Neither
      this Agreement nor any provision hereof, may be changed, waived, discharged,
      or terminated orally, but only by an instrument in writing signed by the party
      against whom enforcement of the change, waiver, discharge or termination is
      sought.

    

    (d)    Neither
      party may assign or delegate any of its rights, duties or obligations
under
      this Agreement without the other party's prior written consent.

    

    (e)    This
      Agreement and all obligations of the parties hereunder shall be interpreted,
      construed, and enforced in accordance with the laws of the State of Georgia;
      provided,
      however, that if Georgia's conflict or choice of law rules, statutes or
      constitutional provisions would choose the law of another state, each party
      waives such rules, statutes or constitutional
      provisions and agrees that Georgia substantive, procedural and constitutional
      law shall
      nonetheless govern.

    

    (f)    No
      failure or delay of either party to exercise any right or power given it
herein
      or
      to insist upon strict compliance by the other party of any obligation imposed
      on
      it herein and
      no
      custom or practice of either party hereto at variance with any item hereto
      shall
      constitute a modification
      or a waiver of either party's right to demand strict compliance with the terms
      of this Agreement.

    
      
        
        

      

      
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    (g)    Time
      is
      of the essence.

    

    (h)    This
      Agreement may be executed in any number of counterparts and by different
      parties hereto, and separate counterparts, each of which when so executed and
      delivered shall be deemed to be an original and all of which taken together
      shall constitute but one and the same
      instrument. Further, the signature of any party to any counterpart hereof shall
      be deemed to be
      a
      signature to, or may be appended to, any other counterpart.

    

    (i)    If
      any
      term, covenant, or condition of this Agreement or the application thereof
      to any person or circumstance shall, to any extent, be invalid or unenforceable,
      the remainder
      of this Agreement, or the application of such term, covenant, or condition
      to
      persons or circumstances
      other than those to which it is held invalid or unenforceable, shall not be
      affected thereby,
      and each term, covenant, or condition of this Agreement shall be valid and
      be
      enforced to the
      fullest extent permitted by law.

    

    (j)    The
      headings used herein are for purposes of convenience only and should
not
      be
      used in construing the provisions hereof.

    

    (k)    Should
      any provision of this Agreement require judicial interpretation, it is
agreed
      that the court interpreting or construing the same shall not apply a presumption
      that the terms
      hereof shall be more strictly construed against one party by reason of the
      rule
      of construction that a document is to be construed more strictly against the
      party who itself or through
      its agent prepared same, it being agreed that the agents of all parties have
      participated in the
      preparation hereof.

    

    (l)    All
      of the
      conditions, representations, and obligations imposed hereunder are
      imposed or made solely and exclusively for the benefit of the parties to this
      Agreement. No other
      person shall, under any circumstances, be deemed to be a beneficiary
      hereunder.

    

    (m)    The
      parties hereby agree to execute such other documents, instruments, affidavits,
      or certificates and to perform such other acts as may be necessary or desirable,
      to carry out
      the
      purposes of this Agreement.

    

    (n)    Should
      either party hereto, or any successor or assign of either party hereto,
      resort to litigation to enforce this Agreement, the party or parties prevailing
      in such litigation
      shall be entitled, in addition to such other relief as may be granted, to
      recover its or their reasonable
      attorneys' fees (actually incurred by Company at standard hourly rates without
      reference
      to any statutory reference or percentage) and costs in such litigation from
      the
      party or parties against whom enforcement was sought.

     

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    IN
      WITNESS WHEREOF, the undersigned have executed this Independent Contractor
      Agreement as of the following effective date: November 6, 2007.

    

    

    THE
      COMPANY:

     

    EAST
      COAST ETHANOL, LLC

    A
      Delaware limited liability company

     

    By: 
      /s/
      Randy
      D. Hudson 
      
        

      

    

    Randy
      Hudson, Chairman and Chief Executive
      Officer

     

    CONSULTANT:

     

    THOMPSON,
      HOFFMAN & COMPANY,

    a
      Georgia
      corporation

     

    By: 
      /s/
      Clint
      Thompson 
      
        

      

    

    Clint
      Thompson, President

     

     

     

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NEKTAR THERAPEUTICS

2008 Equity Incentive Plan

Termination Date: March 20, 2018

	Purposes.

	Adoption.  The 2008 Equity Incentive Plan was approved by the Board of Directors on March 20, 2008. 

	Eligible Stock Award Recipients.  The persons eligible to receive Stock Awards are the Employees, Directors and Consultants of the Company and its Affiliates. 

	Available Stock Awards.  The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) stock bonuses and (iv) rights to acquire restricted stock. 

	General Purpose.  The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 

	Definitions.

	"Affiliate" means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. 

	"Board" means the Board of Directors of the Company. 

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

	"Committee" means a Committee appointed by the Board in accordance with subsection 3(c). 

	"Common Stock" means the common stock of the Company. 

	"Company" means Nektar Therapeutics, a Delaware corporation. 

	"Consultant" means any person, including an advisor, (1) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or (2) who is a member of the Board of Directors of an Affiliate. However, the term "Consultant" shall not include either Directors of the Company who are not compensated by the Company for their services as Directors or Directors of the Company who are merely paid a director's fee by the Company for their services as Directors. 

	"Continuous Service" means that the Participant's service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant's Continuous Service. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or a Director of the Company will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party's sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

	"Covered Employee" means the chief executive officer and the four (4) other highest compensated officers of the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code. 

	"Director" means a member of the Board of Directors of the Company. 

	"Disability" means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. 

	"Employee" means any person employed by the Company or an Affiliate. Mere service as a Director or payment of a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or an Affiliate. 

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

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

	If the Common Stock is listed on any established stock exchange or traded on the Nasdaq Global Select Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the day of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable. 

	In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board. 

	"Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

	"Non-Employee Director" means a Director of the Company who either (i) is not a current Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act ("Regulation S-K")), does not possess an interest in any other transaction as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a "non-employee director" for purposes of Rule 16b-3. 

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

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

	"Option" means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the Plan. 

	"Option Agreement" means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

	"Optionholder" or "Optionee" means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option. 

	"Outside Director" means a Director of the Company who either (i) is not a current employee of the Company or an "affiliated corporation" (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an "affiliated corporation" receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an "affiliated corporation" at any time and is not currently receiving direct or indirect remuneration from the Company or an "affiliated corporation" for services in any capacity other than as a Director or (ii) is otherwise considered an "outside director" for purposes of Section 162(m) of the Code. 

	"Participant" means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 

	"Plan" means this Nektar Therapeutics 2008 Equity Incentive Plan. 

	"Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time. 

	"Securities Act" means the Securities Act of 1933, as amended. 

	"Stock Award" means any right granted under the Plan, including an Option, a stock bonus and a right to acquire restricted stock. 

	"Stock Award Agreement" means a written agreement between the Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

	"Ten Percent Stockholder" means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its Affiliates. 

	Administration.

	Administration by Board.  The Board will administer the Plan unless and until the Board delegates administration to a Committee, as provided in subsection 3(c). 

	Powers of Board.  The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan: 

	To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive stock pursuant to a Stock Award; and the number of shares with respect to which a Stock Award shall be granted to each such person. 

	To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 

	To amend the Plan or a Stock Award as provided in Section 12. 

	Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 

	Delegation to Committee.  

	General.  The Board may delegate administration of the Plan to a Committee or Committees of one (1) or more members of the Board, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. 

	Committee Composition when Common Stock is Publicly Traded.  At such time as the Common Stock is publicly traded, in the discretion of the Board, a Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such authority, the Board or the Committee may (i) delegate to a committee of one or more members of the Board who are not Outside Directors, the authority to grant Stock Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award or (b) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Stock Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. 

	Effect of Board's Decision. All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

	Shares Subject to the Plan.

	Share Reserve.  Subject to the provisions of Section 11 relating to adjustments upon changes in stock, the stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate Nine Million (9,000,000) shares of Common Stock.  Subject to Section 4(b), the number of shares available for issuance under the Plan shall be reduced by (i) one (1) share for each share of stock issued pursuant to an Option granted under Section 6, and (ii) one and one-half (1.5) shares for each share that is issued pursuant to a stock bonus award or restricted stock award under Section 7. 

	Reversion of Shares to the Share Reserve.  If any Stock Award shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full or if any shares of Common Stock issued to a Participant pursuant to a Stock Award are forfeited to or reacquired or repurchased by the Company, including, but not limited to, any forfeiture, reacquisition or repurchase caused by the failure to meet a contingency or condition required for the vesting of such shares, the stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan at the rate of (i) one (1) share for each share of stock that had been issued pursuant to an Option granted under Section 6, and (ii) one and one-half (1.5) shares for each share that had been issued pursuant to a stock bonus award or restricted stock award under Section 7; provided, however, that if any unvested Common Stock acquired pursuant to a Stock Award is forfeited to or reacquired or repurchased by the Company, the unvested stock forfeited to or reacquired or repurchased by the Company shall revert to and again become available for issuance under the Plan for all Stock Awards other than Incentive Stock Options.

	Source of Shares.  The stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise. 

	Eligibility.

	Eligibility for Specific Stock Awards.  Incentive Stock Options may be granted only to Employees. Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. 

	Ten Percent Stockholders.  No Ten Percent Stockholder shall be eligible for the grant of an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant. 

	Section 162(m) Limitation.  Subject to the provisions of Section 11 relating to adjustments upon changes in stock, no employee shall be eligible to be granted Options covering more than Three Million (3,000,000) shares of the Common Stock during any calendar year. 

	Consultants.  A Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant, a Form S-8 Registration Statement under the Securities Act ("Form S-8") is not available to register either the offer or the sale of the Company's securities to such Consultant because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by the rules governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be registered in another manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or (B) does not require registration under the Securities Act in order to comply with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities laws of all other relevant jurisdictions.

	Option Provisions.

Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and a separate certificate or certificates will be issued for shares purchased on exercise of each type of Option. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 

	Term.  Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no Incentive Stock Option shall be exercisable after the expiration of eight (8) years from the date it was granted.  No Nonstatutory Stock Option shall be exercisable after the expiration of eight (8) years from the date it was granted. 

	Exercise Price of an Incentive Stock Option.  Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 

	Exercise Price of a Nonstatutory Stock Option. The exercise price of each Nonstatutory Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted.  Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.

	Consideration.  

	The purchase price of stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (A) in cash at the time the Option is exercised or (B) at the discretion of the Board at the time of the grant of the Option (or subsequently in the case of a Nonstatutory Stock Option) by delivery to the Company of other Common Stock, according to a deferred payment or other similar arrangement (which may include, without limiting the generality of the foregoing, the use of other Common Stock) with the Participant or in any other form of legal consideration that may be acceptable to the Board; provided, however, that at any time that the Company is incorporated in Delaware, payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 

	Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes).

	In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 

	Transferability of an Incentive Stock Option.  An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing provisions of this subsection 6(e), the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 

	Transferability of a Nonstatutory Stock Option.  A Nonstatutory Stock Option shall be transferable to the extent provided in the Option Agreement. If the Nonstatutory Stock Option does not provide for transferability, then the Nonstatutory Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing provisions of this subsection 6(f), the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 

	Vesting Generally.  The total number of shares of Common Stock subject to an Option may, but need not, vest and therefore become exercisable in periodic installments which may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(g) are subject to any Option provisions governing the minimum number of shares as to which an Option may be exercised. 

	Termination of Continuous Service.  In the event an Optionholder's Continuous Service terminates (other than upon the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder's Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate. 

	Extension of Termination Date.  An Optionholder's Option Agreement may also provide that if the exercise of the Option following the termination of the Optionholder's Continuous Service (other than upon the Optionholder's death or Disability) would be prohibited at any time solely because the issuance of shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in subsection 6(a) or (ii) the expiration of a period of three (3) months (or such longer or shorter period specified in the Option Agreement) after the termination of the Optionholder's Continuous Service during which the exercise of the Option would not be in violation of such registration requirements. 

	Disability of Optionholder.  In the event an Optionholder's Continuous Service terminates as a result of the Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 

	Death of Optionholder.  In the event an Optionholder's Continuous Service terminates as a result of the Optionholder's death, then, subject to any restrictions in the Option Agreement, the Option shall become fully vested and exercisable as of the date of termination.  In the event (i) an Optionholder's Continuous Service terminates as a result of the Optionholder's death or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder's Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise the Option as of the date of death) by the Optionholder's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but only within the period ending on the earlier of (1) the date eighteen (18) months following the date of death (or such longer or shorter period specified in the Option Agreement) or (2) the expiration of the term of such Option as set forth in the Option Agreement.  If, after death, the Option is not exercised within the time specified herein, the Option shall terminate.

	Early Exercise.  The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder's Continuous Service terminates to exercise the Option as to any part or all of the shares subject to the Option prior to the full vesting of the Option. Any unvested shares so purchased may be subject to an unvested share repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate. 

	Provisions of Stock Awards Other than Options.

	Stock Bonus Awards.  Each stock bonus agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need not be identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

	Consideration.  A stock bonus shall be awarded in consideration for past services actually rendered to the Company for its benefit. 

	Vesting.  Shares of Common Stock awarded under the stock bonus agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 

	Termination of Participant's Continuous Service. In the event a Participant's Continuous Service terminates, the Company may reacquire any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination under the terms of the stock bonus agreement; provided, however, that in the event a Participant's Continuous Service terminates as a result of the Participant's death, then, subject to any restrictions in the stock bonus agreement, the shares acquired pursuant to the stock bonus agreement shall become fully vested as of the date of termination.

	Transferability.  Rights to acquire shares under the stock bonus agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as stock awarded under the stock bonus agreement remains subject to the terms of the stock bonus agreement. 

	Restricted Stock Awards.  Each restricted stock purchase agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of separate restricted stock purchase agreements need not be identical, but each restricted stock purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

	Purchase Price.  The purchase price under each restricted stock purchase agreement shall be such amount as the Board shall determine and designate in such restricted stock purchase agreement. The purchase price shall not be less than one hundred percent (100%) of the stock's Fair Market Value on the date such award is made or at the time the purchase is consummated. 

	Consideration.  The purchase price of stock acquired pursuant to the restricted stock purchase agreement shall be paid either: (i) in cash at the time of purchase; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; or (iii) in any other form of legal consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 

	Vesting.  Shares of Common Stock acquired under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 

	Termination of Participant's Continuous Service.  In the event a Participant's Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination under the terms of the restricted stock purchase agreement; provided, however, that in the event a Participant's Continuous Service terminates as a result of the Participant's death, then, subject to any restrictions in the restricted stock purchase agreement, the shares acquired pursuant to the restricted stock purchase agreement shall become fully vested as of the date of termination.

	Transferability.  Rights to acquire shares under the restricted stock purchase agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement, as the Board shall determine in its discretion, so long as stock awarded under the restricted stock purchase agreement remains subject to the terms of the restricted stock purchase agreement. 

	Covenants of the Company.

	Availability of Shares.  During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Stock Awards. 

	Securities Law Compliance.  The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Stock Awards unless and until such authority is obtained. 

	Use of Proceeds From Stock.

Proceeds from the sale of stock pursuant to Stock Awards shall constitute general funds of the Company. 

	Miscellaneous.

	Acceleration of Exercisability and Vesting.  The Board shall have the power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest. 

	Stockholder Rights.  No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 

	No Employment or other Service Rights.  Nothing in the Plan or any instrument executed or Stock Award granted pursuant thereto shall confer upon any Participant or other holder of Stock Awards any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant's agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 

	Incentive Stock Option $100,000 Limitation.  To the extent that the aggregate Fair Market Value (determined at the time of grant) of stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 

	Investment Assurances.  The Company may require a Participant, as a condition of exercising or acquiring stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant's knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring the stock subject to the Stock Award for the Participant's own account and not with any present intention of selling or otherwise distributing the stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (iii) the issuance of the shares upon the exercise or acquisition of stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act or (iv) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the stock. 

	Withholding Obligations.  To the extent provided by the terms of a Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of stock under a Stock Award by any of the following means (in addition to the Company's right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares of the Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of stock under the Stock Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of the Common Stock.  The Participant is solely responsible for satisfaction of all federal, state or local tax withholding obligations relating to the exercise or acquisition of stock under a Stock Award and no shares of Common Stock will be issued until the Company has received a definitive agreement or other documentation satisfactory to the Company, in its sole discretion, that such withholding obligations have been or will be satisfied by the Participant.

	Adjustments Upon Changes in Stock.

	Capitalization Adjustments.  If any change is made in the stock subject to the Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any person pursuant to subsection 5(c), and the outstanding Stock Awards will be appropriately adjusted in the class(es) and number of securities and price per share of stock subject to such outstanding Stock Awards. Such adjustments shall be made by the Board, the determination of which shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction "without receipt of consideration" by the Company.) 

	Dissolution or Liquidation.  In the event of a dissolution or liquidation of the Company, then such Stock Awards shall be terminated if not exercised (if applicable) prior to such event. 

	Corporate Transaction.  In the event of (1) a sale, lease or other disposition of all or substantially all of the assets of the Company, (2) a merger or consolidation in which the Company is not the surviving corporation or (3) a reverse merger in which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise (a "Corporate Transaction"), then any surviving corporation or acquiring corporation shall assume any Stock Awards outstanding under the Plan or shall substitute similar stock awards (including an award to acquire the same consideration paid to the stockholders in the Corporate Transaction) for those outstanding under the Plan. In the event any surviving corporation or acquiring corporation refuses to assume such Stock Awards or to substitute similar stock awards for those outstanding under the Plan, then with respect to Stock Awards held by Participants whose Continuous Service has not terminated, the vesting of such Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be accelerated in full, and the Stock Awards shall terminate if not exercised (if applicable) at or prior to such Corporate Transaction. With respect to any other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if applicable) prior to such Corporate Transaction. 

	Securities Acquisition.  In the event of an acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the Exchange Act, or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or an Affiliate) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of Directors and provided that such acquisition is not a result of, and does not constitute, a Corporate Transaction described in subsection 11(c) hereof, then with respect to Stock Awards held by Participants whose Continuous Service has not terminated, the vesting of such Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be accelerated in full. 

	Amendment of the Plan and Stock Awards.

	Amendment of Plan.  The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11 relating to adjustments upon changes in stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3 or any Nasdaq or securities exchange listing requirements. 

	Stockholder Approval.  The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 

	Contemplated Amendments.  It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith. 

	No Impairment of Rights.  Rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 

	Amendment of Stock Awards.  The Board at any time, and from time to time, may amend the terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 

	Repricing of Stock Awards.  Without prior stockholder approval, the Board will not effect a "repricing" (as hereinafter defined) of any Stock Awards under the Plan.  For purposes of the immediately preceding sentence, a "repricing" shall be deemed to mean any of the following actions: (a) the lowering of the purchase price of a Stock Award after it is granted; (b) the canceling of a Stock Award in exchange for another Stock Award at a time when the purchase price of the cancelled Stock Award exceeds the Fair Market Value of the underlying stock (unless the cancellation and exchange occurs in connection with a merger, acquisition, spin-off, dissolution, winding up or other similar corporate transaction with respect to the Company or any subsidiary of the Company to which the holder of such Stock Award is providing or had provided service); or (c) the purchase of a Stock Award for cash or other consideration at a time when the purchase price of the purchased Stock Award exceeds the Fair Market Value of the underlying stock (unless the purchase occurs in connection with a merger, acquisition, spin-off, dissolution, winding up or other similar corporate transaction  with respect to the Company or any subsidiary of the Company to which the holder of such Stock Award is providing or had provided service).

	Termination or Suspension of the Plan.

	Plan Term.  The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on March 20, 2018. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 

	No Impairment of Rights.  Rights and obligations under any Stock Award granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan, except with the written consent of the Participant. 

	Effective Date of Plan.

The Plan shall become effective upon adoption by the Board, but no Stock Award shall be exercised (or, in the case of a stock bonus, shall be granted) unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board.

	Choice of Law.

The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state's conflict of laws rules.

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