OSTEX INTERNATIONAL INC /WA/
EX-10.7A
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<DESCRIPTION>EX-10.7A
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit

10.7A</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMENDMENT

AGREEMENT</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Amendment Agreement between Ostex

International, Inc. (the &#147;Company&#148;), a Washington corporation, and Thomas A.

Bologna (&#147;Executive&#148;) is dated and entered into as of February 10, 1998.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RECITALS</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

parties entered into an Executive Employment Agreement dated as of

July&nbsp;16, 1997 providing for the employment of Executive by the Company.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

parties entered into a Stock Option Agreement evidencing a stock option grant

from the Company to Executive on July 16, 1997 (the &#147;Stock Option Agreement&#148;).</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The

parties now desire to amend the Employment Agreement and Stock Option

Agreement, upon the terms set forth herein.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AGREEMENT</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Therefore, it is agreed as follows:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Employment

Agreement</u>.&#160; The Employment Agreement

shall be amended by deleting the third sentence of Section 5.4 thereof.&#160; Therefore, page 4 containing Section 5.4 of

the Employment Agreement shall be restated in the form attached hereto as

Exhibit A and inserted as a substitute page in the existing Employment

Agreement.</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Stock

Option Agreement</u>.&#160; The Stock Option

Agreement shall be amended by deleting the third and fourth sentences of the

paragraph entitled &#147;Vesting.&#148;&#160;

Therefore, page 1 containing the &#147;Vesting&#148; paragraph shall be restated

in the form attached hereto as Exhibit B and inserted as a substitute page in

the existing Stock Option Agreement.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties have executed and

entered into this Amendment No. 2 as of the date set forth above.</font></p>



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 <tr>

  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.18%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTIVE</font></b></p>

  </td>

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  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.18%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.18%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.18%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="29%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:29.28%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Thomas A. Bologna</font></p>

  </td>

  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.18%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas A. Bologna</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.74%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="53%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:53.08%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.74%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="53%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:53.08%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPANY:</font></b></p>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="55%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:55.82%;">

  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OSTEX

  INTERNATIONAL, INC.</font></b></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.58%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.58%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.24%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.58%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>

  </td>

  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:25.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Thomas J. Cable</font></p>

  </td>

  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.58%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="52%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:52.24%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas J. Cable</font></p>

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  <p align="right" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:right;">&nbsp;</p>

  </td>

  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.58%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its</font></p>

  </td>

  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:25.7%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman</font></p>

  </td>

  <td width="26%" valign="top" style="padding:0in 0in 0in 0in;width:26.54%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT

A</font></u></b></p>



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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(including utilities, telephone and similar expenses), such leases to

be subject to the Company&#146;s approval (iii) limited moving expenses, and (iv)

temporary living accommodations in Seattle until an apartment is rented.&#160; The Company and the Executive shall agree on

a budget for such expenses as soon as practicable after the date of this

Agreement and shall initial such final budget to acknowledge the agreed levels

of expenses.&#160; To the extent that such

reimbursement or direct payment shall be treated as taxable income, the

Executive shall receive a &#147;gross up&#148; bonus to compensate the Executive for any

and all income taxes that the Executive may be required to pay with respect to

such reimbursement and gross up bonus (whenever such taxes may be assessed or

paid).&#160; The Executive shall report all

such reimbursement and &#147;gross up&#148; bonuses as ordinary income for income tax

purposes.&#160; Upon termination of

Executive&#146;s employment, if Executive so requests, the Company shall reimburse

the Executive for the reasonable expense of relocating to San Diego (or another

location designated by Executive within the United States) and shall assume any

lease which Executive may have entered into in Seattle.</font></p>



<p style="margin:0in 0in .0001pt;"><a name="_WOPR95Explorer23"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></a></p>



<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.4&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Stock Options</font></b></p>



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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Simultaneously herewith, the Company has

granted options to purchase 700,000 shares of Common Stock to the Executive

under the authority of its Amended and Restated 1994 Stock Option Plan and

pursuant to the terms and conditions of the Stock Option Agreement dated

July&nbsp;16, 1997 between the parties (the &#147;Stock Option Agreement&#148;).&#160; Annually, the Board of Directors shall

consider, at its sole discretion, granting additional stock options to the

Executive.&#160; The Company represents and

warrants to the Executive that all stock options (both incentive stock options

and nonqualified stock options) it has granted under the 1994 Stock Option Plan

have contained a provision that vested options will terminate upon the

expiration of 90 days from the date of an optionee&#146;s termination of employment

or contractual relationship with the Company for any reason other than death or

disability.</font></p>



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<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><a name="_WOPR95Explorer24"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.5&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Insurance</font></b></a></p>



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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the term of the Executive&#146;s

employment, the Company will obtain term life insurance on the life of the

Executive, which insurance will provide for the payment of an amount equal to

the Base Salary for one year (or an amount equal to two times the Base Salary following

a Change in Control) to the Executive&#146;s spouse in the event of the Executive&#146;s

death; provided that the Company may obtain such</font></p>



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<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT B</font></u></b></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OSTEX INTERNATIONAL, INC.</font></b></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMENDED AND RESTATED 1994 STOCK OPTION PLAN</font></b></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">STOCK OPTION AGREEMENT</font></b></p>



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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To:&#160; Thomas

  A. Bologna</font></p>

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  <td width="9%" valign="bottom" style="padding:0in 0in 0in 0in;width:9.86%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.92%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Grant:&#160;

  July&nbsp;16, 1997</font></p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are pleased to inform you that you have

been granted a stock option for the purchase of shares of common stock of Ostex

International, Inc., a Washington corporation (the &#147;Company&#148;), under the

Amended and Restated 1994 Stock Option Plan (the &#147;Plan&#148;).&#160; The terms of this option are as set forth in

the Plan and in this Agreement and the Plan is incorporated into this Agreement

by reference.&#160; The most important of the

terms are summarized as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<table border="0" cellspacing="0" cellpadding="0" width="90%" style="border-collapse:collapse;margin-left:.5in;width:90.0%;">

 <tr>

  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.26%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Number of Shares:</font></b>&#160; 700,000</p>

  </td>

  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.0%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.72%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exercise Price:</font></b>&#160; $3.125</p>

  </td>

 </tr>

 <tr>

  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.26%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.72%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.26%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Term:&#160; </font></b>Ten

  years</p>

  </td>

  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.0%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.72%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Vesting:&#160; </font></b>This option will

vest and become exercisable with each month of continuous employment in equal

monthly installments over a four&#150;year period, commencing July&nbsp;16,

1997; provided, however, that this option shall automatically accelerate so

that this option shall become 100% vested and exercisable upon your death or

disability at any time after you have been continuously employed by the Company

for at least two years.In the event of any Change in Control (as defined in

Section&nbsp;5.14.1 of the Plan), this option shall automatically accelerate so

that this option shall, immediately prior to the specified effective date for

the Change in Control, become 100% vested and exercisable.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Type

of Option.&#160; </font></b>This

option shall constitute an incentive stock option, except to the extent any

portion of this option fails to qualify as an incentive stock option under

Section&nbsp;422(d) of the Code, as reflected in the next succeeding paragraph,

which portion shall constitute a nonqualified stock option.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ISO

Qualification:&#160; </font></b>On

the date of grant of this option, Section 422(2) of theCode provides that, to

the extent that the aggregate fair market value of the shares with respect to

which an option is exercisable for the first time by you during any calendar

year (under this option and all other incentive stock options you hold) exceeds

$100,000, the excess portion will be treated as a nonqualified stock option,

unless the Internal Revenue Service changes the rules and regulations governing

the $100,000 limit for incentive stock options.</p>



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