<SEC-DOCUMENT>0001193125-17-252806.txt : 20170809
<SEC-HEADER>0001193125-17-252806.hdr.sgml : 20170809
<ACCEPTANCE-DATETIME>20170809161818
ACCESSION NUMBER:		0001193125-17-252806
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20170809
DATE AS OF CHANGE:		20170809
EFFECTIVENESS DATE:		20170809

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HERON THERAPEUTICS, INC. /DE/
		CENTRAL INDEX KEY:			0000818033
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				942875566
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-219830
		FILM NUMBER:		171018180

	BUSINESS ADDRESS:	
		STREET 1:		4242 CAMPUS POINT COURT, SUITE 200
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92121
		BUSINESS PHONE:		6503662626

	MAIL ADDRESS:	
		STREET 1:		4242 CAMPUS POINT COURT, SUITE 200
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92121

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AP PHARMA INC /DE/
		DATE OF NAME CHANGE:	20010511

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ADVANCED POLYMER SYSTEMS INC /DE/
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>d438637ds8.htm
<DESCRIPTION>FORM S-8
<TEXT>
<HTML><HEAD>
<TITLE>Form S-8</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>As filed with the Securities and Exchange Commission on August&nbsp;9, 2017 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Registration No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></P>
<P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>WASHINGTON, DC 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT
STYLE="white-space:nowrap">S-8</FONT> </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>REGISTRATION STATEMENT </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>UNDER </I></B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>THE
SECURITIES ACT OF 1933 </I></B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>Heron Therapeutics, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">94-2875566</FONT></B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>incorporation or organization)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(I.R.S. Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>4242 Campus Point Court, Suite 200 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>San Diego, California 92121 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of Principal Executive Offices, Zip Code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>2007 Amended and Restated Equity Incentive Plan </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>1997 Employee Stock Purchase Plan (as amended through June&nbsp;12, 2017) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Full Title of the Plans) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>David L. Szekeres </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Senior Vice President, General Counsel, Business Development and Corporate Secretary </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Heron Therapeutics, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>4242 Campus Point Court, Suite 200 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>San Diego, California 92121 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Name and address of agent for service) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(858) <FONT STYLE="white-space:nowrap">251-4400</FONT> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Telephone number, including area code, of agent for service) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
<FONT STYLE="white-space:nowrap">non-accelerated</FONT> filer, smaller reporting company, or an emerging growth company. See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer,&#148; &#147;smaller reporting
company,&#148; and &#147;emerging growth company&#148; in Rule <FONT STYLE="white-space:nowrap">12b-2</FONT> of the Exchange Act. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="16%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="60%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="20%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="1%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Large&nbsp;accelerated&nbsp;filer</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9746;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Accelerated&nbsp;filer</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Non-accelerated filer</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;&nbsp;&nbsp;(Do not check if a smaller reporting company)</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Smaller&nbsp;reporting&nbsp;company</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP>Emerging&nbsp;growth&nbsp;company</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;7(a)(2)(B) of the Securities Act.&nbsp;&nbsp;&#9744; </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CALCULATION OF REGISTRATION FEE </B></P> <P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


<TR>
<TD WIDTH="44%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD></TR>


<TR STYLE="font-size:1px; ">
<TD COLSPAN="9" VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-top:1.00px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"><B>Title of Securities to be Registered</B></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Amount</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>to be</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Registered<SUP
STYLE="font-size:85%; vertical-align:top">(1)</SUP></B></P></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Proposed</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Maximum</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Offering&nbsp;Price</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Per
Share</B></P></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Proposed</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Maximum<BR>Aggregate</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Offering&nbsp;Price</B></P></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"><B>Amount of<BR>Registration&nbsp;Fee</B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Common Stock, par value $0.01 per share</P></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">5,200,000<SUP STYLE="font-size:85%; vertical-align:top">(2)</SUP></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$16.125<SUP STYLE="font-size:85%; vertical-align:top">(3)</SUP></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$83,850,000<SUP STYLE="font-size:85%; vertical-align:top">(3)</SUP></TD>
<TD VALIGN="bottom" STYLE="BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$9,718.22</TD></TR>
<TR STYLE="font-size:1px; ">
<TD COLSPAN="9" VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-top:1.00px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="font-size:1px; ">
<TD COLSPAN="9" VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-top:1.00px solid #000000">&nbsp;</P></TD></TR>
</TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top">Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), this Registration Statement shall also cover any additional shares that become issuable by reason of any stock
dividend, stock split, recapitalization or any other similar transaction effected without the receipt of consideration that results in an increase in the number of outstanding shares of common stock, par value $0.01 per share (&#147;Common
Stock&#148;), of Heron Therapeutics, Inc., a Delaware corporation (the &#147;Company&#148; or the &#147;Registrant&#148;), or any anti-dilution provisions of the Amended and Restated 2007 Equity Incentive Plan (the &#147;2007 Plan&#148;) or the 1997
Employee Stock Purchase Plan (as amended) (the &#147;ESPP&#148;). </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top">Represents: (i) 5,000,000 shares of Common Stock issuable under the 2007 Plan; plus (ii) 200,000 shares of Common Stock issuable under the ESPP. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top">The maximum offering price per share and the maximum aggregate offering price are estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) and Rule 457(h) under the Securities Act
based upon the average of the high and low trading price as reported on The NASDAQ Capital Market on August 7, 2017, which was $16.125. </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>REGISTRATION OF ADDITIONAL SECURITIES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On January&nbsp;14, 2008, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT
STYLE="white-space:nowrap">No.&nbsp;333-148660</FONT> (the &#147;First 2007 Plan Registration Statement&#148;), with the Securities and Exchange Commission (the&nbsp;&#147;SEC&#148;) relating to an aggregate of 150,000 shares of Common Stock for
issuance from time to time in connection with the 2007 Plan. On June&nbsp;15, 2010, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration
<FONT STYLE="white-space:nowrap">No.&nbsp;333-167515</FONT> (the &#147;Second 2007 Plan Registration Statement&#148;), registering an additional 100,000 shares of Common Stock issuable under the 2007 Plan. On August&nbsp;17, 2011, the Company filed
a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-176365</FONT> (the &#147;Third 2007 Plan Registration Statement&#148;), registering an additional 4,500,000
shares of Common Stock issuable under the 2007 Plan. On September&nbsp;19, 2014, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-198853</FONT>
(the &#147;Fourth 2007 Plan Registration Statement&#148;), registering an additional 1,750,000 shares of Common Stock issuable under the 2007 Plan. On August&nbsp;6, 2015, the Company filed a Registration Statement on Form <FONT
STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-206165</FONT> (the &#147;Fifth 2007 Plan Registration Statement&#148;), registering an additional 4,300,000 shares of Common Stock issuable under the
2007 Plan. On November&nbsp;8, 2016, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-214503</FONT> (the &#147;Sixth 2007 Plan Registration
Statement&#148;), registering an additional 3,000,000 shares of Common Stock issuable under the 2007 Plan. Under this Registration Statement, the Company is hereby registering an additional 5,000,000 shares of Common Stock issuable under the 2007
Plan, none of which have been issued as of the date of this Registration Statement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On September&nbsp;8, 1997, the Company filed a
Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-35151</FONT> (the &#147;First ESPP Registration Statement&#148;), with the SEC relating to an aggregate of 5,000
shares of Common Stock for issuance from time to time in connection with the ESPP. On August&nbsp;25, 2004, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration
<FONT STYLE="white-space:nowrap">No.&nbsp;333-118546</FONT> (the &#147;Second ESPP Registration Statement&#148;), with the SEC relating to an additional 1,250 shares of Common Stock issuable under the ESPP. On August&nbsp;15, 2005, the Company filed
a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-127574</FONT> (the&nbsp;&#147;Third ESPP Registration Statement&#148;), with the SEC relating to an additional
1,875 shares of Common Stock issuable under the ESPP. On October&nbsp;11, 2006, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-137954</FONT>
(the &#147;Fourth ESPP Registration Statement&#148;), with the SEC relating to an additional 1,875 shares of Common Stock issuable under the ESPP. On January&nbsp;14, 2008, the Company filed a Registration Statement on Form <FONT
STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-148660</FONT> (the &#147;Fifth ESPP Registration Statement&#148;), with the SEC relating to an additional 5,000 shares of Common Stock issuable under
the ESPP. On October&nbsp;21, 2009, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-162610</FONT> (the &#147;Sixth ESPP Registration
Statement&#148;), with the SEC relating to an additional 10,000 shares of Common Stock issuable under the ESPP. On August&nbsp;17, 2011, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT
STYLE="white-space:nowrap">No.&nbsp;333-176366</FONT> (the &#147;Seventh ESPP Registration Statement&#148;), with the SEC relating to an additional 25,000 shares of Common Stock issuable under the ESPP. On September&nbsp;19, 2014, the Company filed
a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-198853</FONT> (the &#147;Eighth ESPP Registration Statement&#148;), with the SEC relating to an additional
25,000 shares of Common Stock issuable under the ESPP. On August&nbsp;6, 2015, the Company filed a Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-206165</FONT>
(the &#147;Ninth ESPP Registration Statement&#148;), with the SEC relating to an additional 100,000 shares of Common Stock issuable under the ESPP. On November&nbsp;8, 2016, the Company filed a Registration Statement on Form <FONT
STYLE="white-space:nowrap">S-8,</FONT> Registration <FONT STYLE="white-space:nowrap">No.&nbsp;333-214503</FONT> (the &#147;Tenth ESPP Registration Statement&#148;), with the SEC relating to an additional 100,000 shares of Common Stock issuable under
the ESPP. Under this Registration Statement, the Company is hereby registering an additional 200,000 shares of Common Stock issuable under the ESPP, none of which have been issued as of the date of this Registration Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to Instruction E of Form <FONT STYLE="white-space:nowrap">S-8,</FONT> the contents of the First 2007 Plan Registration Statement, the
Second 2007 Plan Registration Statement, the Third 2007 Plan Registration Statement, the Fourth 2007 Plan Registration Statement, the Fifth 2007 Plan Registration Statement, the Sixth 2007 Plan Registration Statement, the First ESPP Registration
Statement, the Second ESPP Registration Statement, the Third ESPP Registration Statement, the Fourth ESPP Registration Statement, the Fifth ESPP Registration Statement, the Sixth ESPP Registration Statement, the Seventh ESPP Registration Statement,
the Eighth ESPP Registration Statement, the Ninth ESPP Registration Statement and the Tenth ESPP Registration Statement are incorporated herein by reference and made part of this Registration Statement on Form
<FONT STYLE="white-space:nowrap">S-8.</FONT> </P>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PART I </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The information called for in Part 1 of Form <FONT STYLE="white-space:nowrap">S-8</FONT> is not being filed with or included in this
Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8</FONT> (by incorporation, by reference or otherwise) in accordance with the rules and regulations of the SEC. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PART II </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT </B></P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;3. Incorporation of Documents by Reference </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following documents filed with the SEC by the Company are incorporated by reference in this Registration Statement: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) The Company&#146;s Annual Report on Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended December&nbsp;31, 2016;
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The Company&#146;s Quarterly Reports on Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the fiscal quarters ended March&nbsp;31,
2017 and June&nbsp;30, 2017; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) The Company&#146;s Current Reports on Forms <FONT STYLE="white-space:nowrap">8-K</FONT> filed with the
SEC on January&nbsp;24, 2017, March&nbsp;17, 2017, April&nbsp;3, 2017, April&nbsp;24, 2017, June&nbsp;13, 2017 and August&nbsp;9, 2017 (in each case, not including any information furnished under Items 2.02 or 7.01 of Form <FONT
STYLE="white-space:nowrap">8-K,</FONT> including the related exhibits, which information is not incorporated by reference herein); </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) The
description of the Company&#146;s Common Stock contained in Amendment No.&nbsp;3 to that certain registration statement on Form <FONT STYLE="white-space:nowrap">8-A,</FONT> filed with the Commission on July&nbsp;6, 2017 pursuant to Section&nbsp;12
of the Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), including any subsequent amendment or report filed for the purpose of updating that description; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, prior to the filing
of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this registration statement. Under no circumstances will any information filed under items 2.02 or 7.01 of Form
<FONT STYLE="white-space:nowrap">8-K</FONT> be deemed to be incorporated by reference unless such Form <FONT STYLE="white-space:nowrap">8-K</FONT> expressly provides to the contrary. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Item&nbsp;8. Exhibits </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A list of exhibits
filed with this Registration Statement is set forth in the Exhibit Index and is incorporated herein by reference. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">- 2 - </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of
the requirements for filing on Form <FONT STYLE="white-space:nowrap">S-8</FONT> and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Diego, State of California,
on August&nbsp;9, 2017. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="6%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>HERON THERAPEUTICS, INC.</B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3">(Registrant)</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">&nbsp;</TD>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ David L. Szekeres</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">David L. Szekeres</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Senior Vice President, General Counsel, Business&nbsp;Development and Corporate Secretary</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>POWER OF ATTORNEY </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Each of the undersigned hereby constitutes and appoints each of Barry D. Quart and David L. Szekeres as his <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">attorney-in-fact,</FONT></FONT> with power of substitution, in his name and in the capacity indicated below, to sign any and all further amendments (including post-effective amendments) to this Registration Statement on
Form <FONT STYLE="white-space:nowrap">S-8</FONT> and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that said <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">attorney-in-fact,</FONT></FONT> or his or her substitute or substitutes, may do or cause to be done by virtue hereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the
capacities and on the dates indicated. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="37%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="44%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="15%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:33.30pt; font-size:8pt; font-family:Times New Roman"><B>Signature</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:15.95pt; font-size:8pt; font-family:Times New Roman"><B>Title</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:16.00pt; font-size:8pt; font-family:Times New Roman"><B>Date</B></P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Barry D. Quart</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Chief Executive Officer and Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Barry D. Quart, Pharm.D.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">(Principal Executive Officer)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Robert E. Hoffman</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Chief Financial Officer and</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Senior Vice
President, Finance</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Robert E. Hoffman</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">(Principal Financial and Accounting Officer)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Robert H. Rosen</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">President and Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Robert H. Rosen</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Kevin C. Tang</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Chairman of the Board of Directors</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Kevin C. Tang</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Craig A. Johnson</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Craig A. Johnson</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ John W. Poyhonen</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">John W. Poyhonen</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Christian Waage</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">August&nbsp;9, 2017</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Christian Waage</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="font-size:18pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">- 3 - </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXHIBIT INDEX </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD WIDTH="90%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.10pt; font-size:8pt; font-family:Times New Roman"><B>Exhibit&nbsp;No.</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description</B></P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Certificate of Incorporation, as amended through July&nbsp;29, 2009 (incorporated herein by reference to Quarterly Report on Form <FONT STYLE="white-space:nowrap">10-Q</FONT> (File
<FONT STYLE="white-space:nowrap">No.&nbsp;001-33221)</FONT> for the quarter ended June&nbsp;30, 2009), as amended by that Certificate of Amendment of Certificate of Incorporation (incorporated herein by reference to the Current Report on Form <FONT
STYLE="white-space:nowrap">8-K</FONT> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-33221)</FONT> filed on June&nbsp;30, 2011), as amended by that Certificate of Amendment of Certificate of Incorporation (incorporated herein by reference to
the Current Report on Form <FONT STYLE="white-space:nowrap">8-K</FONT> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-33221)</FONT> filed on January&nbsp;13, 2014), and as further amended by that Certificate of Amendment of Certificate of
Incorporation, dated June&nbsp;12, 2017 and effective June&nbsp;13, 2017 (incorporated herein by reference to the Company&#146;s Post-Effective Amendment to its Registration Statement on Form <FONT STYLE="white-space:nowrap">8-A/A</FONT> File <FONT
STYLE="white-space:nowrap">No.&nbsp;001-33221)</FONT> filed July&nbsp;6, 2017).</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Amended and Restated Bylaws (incorporated herein by reference to the Current Report on Form <FONT STYLE="white-space:nowrap">8-K</FONT> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-33221)</FONT> filed on January&nbsp;22,
2016).</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;5.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Opinion of Gibson, Dunn&nbsp;&amp; Crutcher LLP.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>23.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Consent of Gibson, Dunn&nbsp;&amp; Crutcher LLP (included in Exhibit 5.1 above).</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>23.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Consent of OUM&nbsp;&amp; Co. LLP, the Registrant&#146;s independent registered accounting firm.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>24.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Power of Attorney (included on the signature page).</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Amended and Restated 2007 Equity Incentive Plan.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">1997 Employee Stock Purchase Plan (as amended through June&nbsp;12, 2017).</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">- 4 - </P>

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<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>d438637dex51.htm
<DESCRIPTION>EX-5.1
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<TITLE>EX-5.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 5.1 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<IMG SRC="g438637g10d25.jpg" ALT="LOGO">
</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow">Gibson,&nbsp;Dunn&nbsp;&amp;&nbsp;Crutcher&nbsp;<SMALL>LLP</SMALL></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow">555&nbsp;Mission&nbsp;Street</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow">San&nbsp;Francisco,&nbsp;CA <FONT
STYLE="white-space:nowrap">94105-0921</FONT></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow">Tel&nbsp;415.393.8200</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Arial Narrow">www.gibsondunn.com</P></TD></TR></TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><FONT STYLE="font-family:Arial Narrow; ">Client: 42441-00001</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">August&nbsp;9, 2017 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:2%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">Heron Therapeutics, Inc. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:2%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">4242 Campus Point Court, Suite 200 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:2%; text-indent:-2%; font-size:10pt; font-family:Times New Roman">San Diego, CA 92121 </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top">Heron Therapeutics, Inc. </TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8</FONT> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We have examined the Registration Statement on Form <FONT STYLE="white-space:nowrap">S-8</FONT> (the &#147;<U>Registration
Statement</U>&#148;), of Heron Therapeutics, Inc., a Delaware corporation (the &#147;<U>Company</U>&#148;) filed with the Securities and Exchange Commission (the &#147;Commission&#148;) pursuant to the Securities Act of 1933, as amended (the
&#147;<U>Securities Act</U>&#148;), in connection with the offering by the Company of up to (a) 5,000,000 shares of the Company&#146;s common stock, par value $0.01 per share (the &#147;<U>Common Stock</U>&#148;), issuable to eligible individuals
under the Company&#146;s Amended and Restated 2007 Equity Incentive Plan (the &#147;<U>2007 Plan</U>&#148;) and (b) 200,000 shares of Common Stock issuable to eligible individuals under the Company&#146;s 1997 Employee Stock Purchase Plan (as
amended through June&nbsp;12, 2017) (the &#147;<U>ESPP</U>,&#148; and together with the 2007 Plan, the &#147;<U>Plans</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We have
examined the originals, or photostatic or certified copies, of such records of the Company and certificates of officers of the Company and of public officials and such other documents as we have deemed relevant and necessary as the basis for the
opinions set forth below. In our examination, we have assumed the genuineness of all signatures, the legal capacity and competency of all natural persons, the authenticity of all documents submitted to us as originals and the conformity to original
documents of all documents submitted to us as copies. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Based upon the foregoing examination and in reliance thereon, and subject to the
assumptions stated and in reliance on statements of fact contained in the documents that we have examined, we are of the opinion that the shares of Common Stock issuable under the Plans, when issued in accordance with the terms of the respective
Plans, will be validly issued, fully paid and <FONT STYLE="white-space:nowrap">non-assessable.</FONT> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow" ALIGN="center">Beijing &#149; Brussels
&#149; Century City &#149; Dallas &#149; Denver &#149; Dubai &#149; Hong Kong &#149; London &#149; Los Angeles &#149; Munich </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Arial Narrow" ALIGN="center">New York &#149;
Orange County &#149; Palo Alto &#149; Paris &#149; San Francisco &#149; S&atilde;o Paulo &#149; Singapore &#149; Washington, D.C. </P>


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<IMG SRC="g438637g10d25.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Heron Therapeutics, Inc, </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">August 9, 2017 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Page 2 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We render no opinion herein as to matters involving the laws of any jurisdiction other than the Delaware General Corporation Law (the
&#147;<U>DGCL</U>&#148;). We are not admitted to practice in the State of Delaware; however, we are generally familiar with the DGCL as currently in effect and have made such inquiries as we consider necessary to render the opinions above. This
opinion is limited to the effect of the current state of the law of the DGCL and the facts as they currently exist. We assume no obligation to revise or supplement this opinion in the event of future changes in such law or the interpretations
thereof or such facts. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We consent to the filing of this opinion as an exhibit to the Registration Statement. In giving this consent, we
do not thereby admit that we are within the category of persons whose consent is required under Section&nbsp;7 of the Securities Act or the Rules and Regulations of the Commission. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Very truly yours,</TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">/s/ GIBSON, DUNN&nbsp;&amp; CRUTCHER LLP</TD></TR>
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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>3
<FILENAME>d438637dex232.htm
<DESCRIPTION>EX-23.2
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<TITLE>EX-23.2</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 23.2 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We hereby consent to the incorporation by reference in the Prospectus constituting a part of this Registration Statement on
<FONT STYLE="white-space:nowrap">Form&nbsp;S-8</FONT> of Heron Therapeutics, Inc., pertaining to the 2007 Amended and Restated Equity Incentive Plan and the 1997 Employee Stock Purchase Plan (as amended through June&nbsp;12, 2017), of our reports
dated February&nbsp;22, 2017 relating to the consolidated financial statements and the effectiveness of internal control over financial reporting of Heron Therapeutics, Inc. appearing in the Company&#146;s Annual Report on <FONT
STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> for the year ended December&nbsp;31, 2016. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We also consent to the reference to us under the caption
&#147;Experts&#148; in the Prospectus. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">/s/ OUM&nbsp;&amp; CO. LLP</TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top">San Francisco, California</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">August&nbsp;9, 2017</TD></TR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>d438637dex991.htm
<DESCRIPTION>EX-99.1
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">Exhibit 99.1 </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:ARIAL" SIZE="2">HERON THERAPEUTICS, INC. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:ARIAL" SIZE="2">AMENDED AND
RESTATED 2007 EQUITY INCENTIVE PLAN </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">1. Purposes of the Plan. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">The purpose of this Plan is to encourage ownership in Heron Therapeutics, Inc., a Delaware corporation (the &#147;<B>Company</B>&#148;), by key personnel whose
long-term employment or other service relationship with the Company is considered essential to the Company&#146;s continued progress and, thereby, encourage recipients to act in the stockholders&#146; interest and share in the Company&#146;s
success. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">2. Definitions. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">As used herein, the following definitions shall apply: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a)
<B>&#147;Administrator&#148;</B>&nbsp;means the Board, any Committees or such delegates as shall be administering the Plan in accordance with Section&nbsp;4 of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(b) <B>&#147;Affiliate&#148;</B>&nbsp;means any entity that is directly or indirectly controlled by the Company or any entity in which the Company has a significant ownership interest as determined by the
Administrator. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <B>&#147;Applicable Laws&#148;</B>&nbsp;means the requirements relating to the administration of stock option and
stock award plans under U.S. federal and state laws, any stock exchange or quotation system on which the Company has listed or submitted for quotation the Common Stock to the extent provided under the terms of the Company&#146;s agreement with such
exchange or quotation system and, with respect to Awards subject to the laws of any foreign jurisdiction where Awards are, or will be, granted under the Plan, the laws of such jurisdiction. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) <B>&#147;Award&#148;</B>&nbsp;means a Stock Award or Option granted in accordance with the terms of the Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) <B>&#147;Awardee&#148;</B>&nbsp;means an Employee, Consultant or Director of the Company or any Affiliate who has been granted an Award under
the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(f) <B>&#147;Award Agreement&#148;</B>&nbsp;means a Stock Award Agreement and/or Option Agreement, which may be in written or
electronic format, in such form and with such terms and conditions as may be specified by the Administrator, evidencing the terms and conditions of an individual Award. Each Award Agreement is subject to the terms and conditions of the Plan.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(g) <B>&#147;Board&#148;</B>&nbsp;means the Board of Directors of the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(h) <B>&#147;Cause&#148;</B> means, unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant&#146;s
Award Agreement, any of the following: (i)&nbsp;the Participant&#146;s theft, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, or falsification of any Company or Affiliate documents or records; (ii)&nbsp;the
Participant&#146;s </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">1 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">
material failure to abide by a Company&#146;s or Affiliate&#146;s code of conduct or other policies (including without limitation, policies relating to confidentiality and reasonable workplace
conduct); (iii)&nbsp;the Participant&#146;s unauthorized use, misappropriation, destruction or diversion of any tangible or intangible asset or corporate opportunity of the Company or an Affiliate (including, without limitation, the
Participant&#146;s improper use or disclosure of confidential or proprietary information); (iv)&nbsp;any intentional act by the Participant which has a material detrimental effect on the Company or an Affiliate&#146;s reputation or business;
(v)&nbsp;the Participant&#146;s repeated failure or inability to perform any reasonable assigned duties after written notice from the Company or an Affiliate (including, without limitation, habitual absence from work for reasons other than illness),
and a reasonable opportunity to cure, such failure or inability; (vi)&nbsp;any material breach by the Participant of any employment or service agreement between the Participant and the Company or an Affiliate, which breach is not cured pursuant to
the terms of such agreement; or (vii)&nbsp;the Participant&#146;s conviction (including any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty, misappropriation or moral turpitude, or which impairs the
Participant&#146;s ability to perform his or her duties with the Company or an Affiliate. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(i) <B>&#147;Change in
Control&#148;</B>&nbsp;means, unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant&#146;s Award Agreement, the occurrence of any of the following: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. an Ownership Change Event or a series of related Ownership Change Events (collectively, a &#147;<B>Transaction</B>&#148;) in which the
stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company&#146;s voting stock immediately before the Transaction,
direct or indirect beneficial ownership of more than fifty percent (50%)&nbsp;of the total combined voting power of the outstanding voting securities of the Company or such surviving entity immediately outstanding after the Transaction, or, in the
case of an Ownership Change Event described in Section&nbsp;2(bb)(iii), the entity to which the assets of the Company were transferred (the &#147;Transferee&#148; ), as the case may be; or </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. the liquidation or dissolution of the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business
entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations or other business entities. The Board shall have the right to determine whether multiple sales or exchanges of the
voting securities in the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. The Board may also, but need not, specify that other transactions or events constitute a Change in
Control. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(j) <B>&#147;Code&#148;</B>&nbsp;means the United States Internal Revenue Code of 1986, as amended. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(k) <B>&#147;Committee&#148;</B>&nbsp;means the compensation committee of the Board or a committee of Directors appointed by the Board in
accordance with Section&nbsp;4 of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(l) <B>&#147;Common Stock&#148;</B>&nbsp;means the common stock of the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(m) <B>&#147;Company&#148;</B>&nbsp;means Heron Therapeutics, Inc., a Delaware corporation, or its successor. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(n) <B>&#147;Consultant&#148;</B> means any person (including an advisor or an employee of an entity)
that is engaged by the Company or any Parent, Subsidiary or Affiliate, to render services and is compensated for such services. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(o)
<B>&#147;Continuous Service&#148;</B> means that the Participant&#146;s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. 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&#146;s service
with the Company or an Affiliate, shall not terminate a Participant&#146;s Continuous Service; <I>provided, however</I> , if the Company for which a Participant is rendering services ceases to qualify as an &#147;Affiliate,&#148; as determined by
the Board in its sole discretion, such Participant&#146;s Continuous Service shall be considered to have terminated on the date such Company ceases to qualify as an Affiliate. To the extent permitted by law, the Board or the chief executive officer
of the Company, in that party&#146;s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of: (i)&nbsp;any leave of absence approved by the Board or the chief executive officer of the Company,
including sick leave, military leave or any other personal leave; or (ii)&nbsp;transfers between the Company, an Affiliate, or their successors. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of
vesting in a Stock Award only to such extent as may be provided in the Company&#146;s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(p) <B>&#147;Conversion Award&#148;</B>&nbsp;has the meaning set forth in Section&nbsp;4(b)(xii)&nbsp;of the Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(q) <B>&#147;Director&#148;</B>&nbsp;means a member of the Board. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(r) <B>&#147;Effective Date&#148;</B> means the date of approval of the Plan by the stockholders of the Company in the manner and to the extent required by Applicable Laws. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(s) <B>&#147;Employee&#148;</B>&nbsp;means a regular, active employee of the Company or any Affiliate, including an Officer and/or Inside Director.
Within the limitations of Applicable Law, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual&#146;s status as an Employee in the case of (i)&nbsp;any individual who is classified by the Company
or its Affiliate as leased from or otherwise employed by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit, litigation or otherwise, (ii)&nbsp;any leave of absence
approved by the Company or an Affiliate, (iii)&nbsp;any transfer between locations of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates, (iv)&nbsp;any change in the Awardee&#146;s status
from an Employee to a Consultant or Director, and (v)&nbsp;at the request of the Company or an Affiliate an Employee becomes employed by any partnership, joint venture or corporation not meeting the requirements of an Affiliate in which the Company
or an Affiliate is a party. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(t) <B>&#147;Exchange Act&#148;</B>&nbsp;means the Securities Exchange Act of 1934, as amended. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(u) <B>&#147;Fair Market Value&#148;</B>&nbsp;means, as of any date, the value of a share of Common Stock or other property as determined by the
Administrator, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">i. If, on such date, the Common Stock is listed on a national or regional securities exchange or market system, including without limitation the Nasdaq Stock Market, the Fair Market Value of a share of Common Stock
shall be the closing price </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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on such date of a share of Common Stock (or the mean of the closing bid and asked prices of a share of Common Stock if the stock is so quoted instead) as quoted on such exchange or market system
constituting the primary market for the Common Stock, as reported in <U>The Wall Street Journal</U> or such other source as the Administrator deems reliable. If the relevant date does not fall on a day on which the Common Stock has traded on such
securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Common Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the
Administrator, in its discretion. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. If, on such date, the Common Stock is not listed on a national or regional securities exchange or
market system, the Fair Market Value of a share of Common Stock shall be as determined by the Administrator in good faith using a reasonable application of a reasonable valuation method without regard to any restriction other than a restriction
which, by its terms, will never lapse. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(v) <B>&#147;Grant Date&#148;</B>&nbsp;means, for all purposes, the date on which the
Administrator approves the determination of grant of an Award, or such other date as is determined by the Administrator, provided that in the case of any Incentive Stock Option, the grant date shall be the later of the date on which the
Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Awardee&#146;s employment relationship with the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(w) <B>&#147;Incentive Stock Option&#148;</B>&nbsp;means an Option intended to qualify as an incentive stock option within the meaning of Section&nbsp;422 of the Code and the regulations promulgated thereunder.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(x) <B>&#147;Inside Director&#148;</B> means a Director who is an Employee. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(y) <B>&#147;Nasdaq&#148;</B> means the Nasdaq Stock Market or its successor. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(z) <B>&#147;Nonstatutory Stock Option&#148;</B>&nbsp;means an Option not intended to qualify as an Incentive Stock Option. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(aa) <B>&#147;Officer&#148;</B>&nbsp;means a person who is an officer of the Company within the meaning of Section&nbsp;16 of the Exchange Act and
the rules and regulations promulgated thereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(bb) <B>&#147;Option&#148;</B>&nbsp;means a right granted under Section&nbsp;8 to
purchase a number of Shares at such exercise price, at such times, and on such other terms and conditions as are specified in the agreement or other documents evidencing the Option (the &#147;Option Agreement&#148; ). Both Options intended to
qualify as Incentive Stock Options and Nonstatutory Stock Options may be granted under the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(cc) <B>&#147;Outside
Director&#148;</B> means a Director who is not an Employee. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(dd) <B>&#147;Ownership Change Event&#148;</B> means the occurrence of any
of the following with respect to the Company: (i)&nbsp;the direct or indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%)&nbsp;of the voting stock of the Company;
(ii)&nbsp;a merger or consolidation in which the Company is a party; or (iii)&nbsp;the sale, exchange, or transfer of all or substantially all of the assets of the Company. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ee) <B>&#147;Parent&#148;</B> means a &#147;parent corporation,&#148; whether now or hereafter
existing, as defined in Section&nbsp;424(e) of the Code, or any successor provision. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ff) <B>&#147;Participant&#148;</B>&nbsp;means the
Awardee or any person (including any estate) to whom an Award has been assigned or transferred as permitted hereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(gg)
<B>&#147;Plan&#148;</B>&nbsp;means this Heron Therapeutics, Inc. 2007 Equity Incentive Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(hh) <B>&#147;Qualifying Performance
Criteria&#148;</B>&nbsp;shall have the meaning set forth in Section&nbsp;13(b) of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ii) <B>&#147;Restricted Stock
Unit&#148;</B>&nbsp;means a bookkeeping entry representing an amount equivalent to the Fair Market Value of one Share (or a fraction or multiple of such value), payable in cash, property or Shares. Restricted Stock Units represent an unfunded and
unsecured obligation of the Company, except as otherwise provided for by the Administrator. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(jj) <B>&#147;Share&#148;</B>&nbsp;means a
share of the Common Stock, as adjusted in accordance with Section&nbsp;14 of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(kk) <B>&#147;Stock Appreciation
Right&#148;</B>&nbsp;means a right to receive cash and/or shares of Common Stock based on a change in the Fair Market Value of a specific number of shares of Common Stock between the grant date and the exercise date granted under Section&nbsp;12.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ll) <B>&#147;Stock Award&#148;</B>&nbsp;means an award or issuance of Shares, Restricted Stock Units, Stock Appreciation Rights or
other similar awards made under Section&nbsp;12 of the Plan, the grant, issuance, retention, vesting, settlement, and/or transferability of which is subject during specified periods of time to such conditions (including continued employment or
performance conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the &#147;Stock Award Agreement&#148; ). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(mm) <B>&#147;Subsidiary&#148;</B>&nbsp;means any company (other than the Company) in an unbroken chain of companies beginning with the Company, provided each company in the unbroken chain (other than the Company)
owns, at the time of determination, stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other companies in such chain. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(nn) <B>&#147;Termination of Continuous Service&#148;</B>&nbsp;shall mean ceasing to be in Continuous Service as an Employee, Consultant or Director, as determined in the sole discretion of the Administrator.
However, for Incentive Stock Option purposes, Termination of Continuous Service will occur when the Awardee ceases to be an employee (as determined in accordance with Section&nbsp;3401(c) of the Code and the regulations promulgated thereunder) of
the Company or one of its Subsidiaries. The Administrator shall determine whether any corporate transaction, such as a sale or <FONT STYLE="white-space:nowrap">spin-off</FONT> of a division or business unit, or a joint venture, shall be deemed to
result in a Termination of Continuous Service. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(oo) <B>&#147;Total and Permanent Disability&#148;</B>&nbsp;shall have the meaning set
forth in Section&nbsp;22(e)(3) of the Code. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">3. Stock Subject to the Plan. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) <I>Aggregate Limits.</I>&nbsp;Subject to the provisions of Section&nbsp;14 of the Plan, the maximum aggregate number of Shares that may be sold
or issued under the Plan is 18,800,000&nbsp;shares of Common Stock, provided that the total number of shares </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


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authorized for issuance hereunder shall be automatically increased by a positive number on each of December&nbsp;31 2011,&nbsp;December&nbsp;31, 2012 and December&nbsp;31, 2013 to equal 14% of
the aggregate number of shares of Common Stock a) issued and outstanding and b) issuable upon conversion of the then outstanding senior secured convertible notes due 2021, including any interest amounts added to the outstanding principal at the
election of the holders. Shares subject to Awards granted under the Plan that are cancelled, expire or are forfeited shall be available for <FONT STYLE="white-space:nowrap">re-grant</FONT> under the Plan. If an Awardee pays the exercise or purchase
price of an Award granted under the Plan through the tender or withholding of Shares, or if Shares are tendered or withheld to satisfy any Company withholding obligations, the number of Shares so tendered or withheld shall become available for <FONT
STYLE="white-space:nowrap">re-issuance</FONT> thereafter under the Plan. The Shares subject to the Plan may be either Shares reacquired by the Company, including Shares purchased in the open market, or authorized but unissued Shares. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>Code Section&nbsp;162(m) Share Limits.</I>&nbsp;Subject to the provisions of Section&nbsp;14 of the Plan, the aggregate number of Shares
subject to Awards granted under this Plan during any calendar year to any one Awardee shall not exceed 50% of the maximum aggregate number of shares that are authorized for issuance at the end of such calendar year, after giving effect to the
automatic increase, if any, of shares authorized for issuance pursuant to Section&nbsp;3(a) of the Plan , except that in connection with his or her first commencing service with the Company or an Affiliate, an Awardee may be granted Awards covering
up to an additional 200,000 Shares during the year in which such service commences. Notwithstanding anything to the contrary in the Plan, the limitations set forth in this Section&nbsp;3(b) shall be subject to adjustment under Section&nbsp;14(a) of
the Plan only to the extent that such adjustment will not affect the status of any Award intended to qualify as &#147;performance based compensation&#148; under Code Section&nbsp;162(m). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">4. Administration of the Plan. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a)
<I>Procedure.</I> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. <I>Multiple Administrative Bodies</I>.&nbsp;The Plan shall be administered by the Board, a Committee and/or their
delegates. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. <I>Section&nbsp;162</I>.&nbsp;To the extent that the Administrator determines it to be desirable to qualify Awards
granted hereunder as &#147;performance-based compensation&#148; within the meaning of Section&nbsp;162(m) of the Code, Awards to &#147;covered employees&#148; within the meaning of Section&nbsp;162(m) of the Code or Employees that the Committee
determines may be &#147;covered employees&#148; in the future shall be made by a Committee of two or more &#147;outside directors&#148; within the meaning of Section&nbsp;162(m) of the Code. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iii. <I>Rule&nbsp;16b-3</I>.&nbsp;To the extent desirable to qualify transactions hereunder as exempt under
<FONT STYLE="white-space:nowrap">Rule&nbsp;16b-3</FONT> promulgated under the Exchange Act (&#147;Rule&nbsp;16b-3&#148;), Awards to Officers and Directors shall be made by the entire Board or a Committee of two or more &#147;non-employee
directors&#148; within the meaning of <FONT STYLE="white-space:nowrap">Rule&nbsp;16b-3.</FONT> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iv. <I>Other
Administration</I>.&nbsp;The Board or a Committee may delegate to an authorized officer or officers of the Company the power to approve Awards to persons eligible to receive Awards under the Plan who are not (A)&nbsp;subject to Section&nbsp;16 of
the Exchange Act or (B)&nbsp;at the time of such approval, &#147;covered employees&#148; under Section&nbsp;162(m) of the Code or (C)&nbsp;any other executive officer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">v. <I>Delegation of Authority for the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Day-to-Day</FONT></FONT> Administration of the Plan</I>.&nbsp;Except to the extent prohibited by Applicable
Law, the Administrator may delegate to one or more individuals the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">day-to-day</FONT></FONT> administration of the Plan and any of the functions assigned to it in this Plan. Such
delegation may be revoked at any time. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">vi. <I>Nasdaq</I>.&nbsp;To the extent that the Common Stock is then listed on Nasdaq, the Plan will be
administered in a manner that complies with any applicable Nasdaq or stock exchange listing requirements. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>Powers of the
Administrator</I>.&nbsp;Subject to the provisions of the Plan and, in the case of a Committee or delegates acting as the Administrator, subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the
authority, in its discretion: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. to select the Employees, Consultants and Directors of the Company or its Affiliates to whom Awards are
to be granted hereunder; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. to determine the number of shares of Common Stock to be covered by each Award granted hereunder;
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iii. to determine the type of Award to be granted to the selected Employees, Consultants and Directors; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iv. to approve forms of Award Agreements for use under the Plan; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">v. to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise and/or purchase price
(if applicable), the time or times when an Award may be exercised (which may or may not be based on performance criteria), the vesting schedule, any vesting and/or exercisability acceleration or waiver of forfeiture restrictions, the acceptable
forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine and may be established at the
time an Award is granted or thereafter; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">vi. to correct administrative errors; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">vii. to construe and interpret the terms of the Plan (including <FONT STYLE="white-space:nowrap">sub-plans</FONT> and Plan addenda) and Awards
granted pursuant to the Plan; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">viii. to adopt rules and procedures relating to the operation and administration of the Plan to
accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A)&nbsp;to adopt the rules and procedures regarding the conversion of local currency,
withholding procedures and handling of stock certificates which vary with local requirements and (B)&nbsp;to adopt <FONT STYLE="white-space:nowrap">sub-plans</FONT> and Plan addenda as the Administrator deems desirable, to accommodate foreign laws,
regulations and practice; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ix. to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and
regulations relating to <FONT STYLE="white-space:nowrap">sub-plans</FONT> and Plan addenda; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">x. to modify or amend each Award,
including, but not limited to, the acceleration of vesting and/or exercisability, provided, however, that any such amendment is subject to Section&nbsp;15 of the Plan and except as set forth in that Section, may not impair any outstanding Award
unless agreed to in writing by the Participant; </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">xi. to allow Participants to satisfy withholding tax amounts by electing to have the Company withhold
from the Shares to be issued upon exercise of an Option or vesting of a Stock Award that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined
in such manner and on such date that the Administrator shall determine or, in the absence of provision otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares withheld for this
purpose shall be made in such form and under such conditions as the Administrator may provide; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">xii. to authorize conversion or
substitution under the Plan of any or all stock options, stock appreciation rights or other stock awards held by service providers of an entity acquired by the Company (the &#147;<B>Conversion Awards</B>&#148; ). Any conversion or substitution shall
be effective as of the close of the merger, acquisition or other transaction. The Conversion Awards may be Nonstatutory Stock Options or Incentive Stock Options, as determined by the Administrator, with respect to options granted by the acquired
entity; provided, however, that with respect to the conversion of stock appreciation rights in the acquired entity, the Conversion Awards shall be Nonstatutory Stock Options. Unless otherwise determined by the Administrator at the time of conversion
or substitution, all Conversion Awards shall have the same terms and conditions as Awards generally granted by the Company under the Plan; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">xiii. to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">xiv. to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a
Participant or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including without limitation, (A)&nbsp;restrictions under an insider trading policy or under any other Company policy relating to
Company stock and stock ownership and (B)&nbsp;restrictions as to the use of a specified brokerage firm for such resales or other transfers; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">xv. to provide, either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right, either in tandem with the other rights under the Award or as an alternative
thereto, of the Participant to receive, without payment to the Company, a number of Shares, cash or a combination thereof, the amount of which is determined by reference to the value of the Award; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">xvi. to cause all outstanding Awards held by an Awardee to terminate immediately in their entirety (including as to vested Options) upon first
notification to the Awardee of the Awardee&#146;s Termination of Continuous Service for Cause. If an Awardee&#146;s Continuous Service with the Company is suspended pending an investigation of whether the Awardee shall be terminated for Cause, the
Administrator has the authority to cause all the Awardee&#146;s rights under all outstanding Awards to be suspended during the investigation period in which event the Awardee shall have no right to exercise any outstanding Awards. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">xvii. to determine whether and to what extent the vesting of Awards shall be tolled during any unpaid leave of absence. In the event of military
leave, vesting shall toll during any unpaid portion of such leave, provided that, upon an Awardee&#146;s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services
Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8 </FONT></P>


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Options to the same extent as would have applied had the Awardee continued to provide services to the Company throughout the leave on the same terms as he or she was providing services
immediately prior to such leave. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">xviii. to make all other determinations deemed necessary or advisable for administering the Plan and
any Award granted hereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Effect of Administrator&#146;s Decision</I>.&nbsp;All decisions, determinations and interpretations
by the Administrator regarding the Plan, any rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding on all Participants and on all other persons. The Administrator shall consider
such factors as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and interpretations including, without limitation, the recommendations or advice of any officer or other employee of the Company and
such attorneys, consultants and accountants as it may select. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">5. Eligibility. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">Awards may be granted to Employees, Consultants and Directors of the Company or any of its Affiliates; provided that Incentive Stock Options may be granted only to
Employees of the Company or of a Subsidiary of the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">6. Term of Plan. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">The Plan shall become effective on the Effective Date. It shall continue in effect for a term of ten (10)&nbsp;years from the later of the Effective Date or the
date any amendment to add shares to the Plan is approved by stockholders of the Company unless terminated earlier under Section&nbsp;15 of the Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">7. Term of Award. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In the case of an Option, the term shall be ten (10)&nbsp;years from the Grant Date or such shorter term as may be
provided in the Award Agreement; provided that an Incentive Stock Option granted to an Employee who on the Grant Date owns stock representing more than ten percent (10%)&nbsp;of the voting power of all classes of stock of the Company or any
Subsidiary shall have a term of no more than five (5)&nbsp;years from the Grant Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">8. Options.
</FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">The Administrator may grant an Option or provide for the grant of an Option, either from time to time in the discretion of the Administrator
or automatically upon the occurrence of specified events, including, without limitation, the achievement of performance goals, the satisfaction of an event or condition within the control of the Awardee or within the control of others. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) <I>Option Agreement</I>.&nbsp;Each Option Agreement shall contain provisions regarding (i)&nbsp;the number of Shares that may be issued upon
exercise of the Option, (ii)&nbsp;the type of Option, (iii)&nbsp;the exercise price of the Shares and the means of payment for the Shares, (iv)&nbsp;the term of the Option, (v)&nbsp;such terms and conditions on the vesting and/or exercisability of
an Option as may </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">9 </FONT></P>


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be determined from time to time by the Administrator, (vi)&nbsp;restrictions on the transfer of the Option or the Shares issued upon exercise of the Option and forfeiture provisions, and
(vii)&nbsp;such further terms and conditions, in each case not inconsistent with this Plan as may be determined from time to time by the Administrator. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(b) <I>Exercise Price</I>.&nbsp;The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. In the case of an Incentive Stock Option, the per Share exercise price shall be no less than one hundred percent (100%)&nbsp;of the Fair Market
Value per Share on the Grant Date; provided however, that in the case of an Incentive Stock Option granted to an Employee who on the Grant Date owns stock representing more than ten percent (10%)&nbsp;of the total combined voting power of all
classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than one hundred ten percent (110%)&nbsp;of the Fair Market Value per Share on the Grant Date. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. In the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than one hundred percent (100%)&nbsp;of the Fair
Market Value per Share on the Grant Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iii. Notwithstanding the foregoing, at the Administrator&#146;s discretion, Conversion Awards
may be granted in substitution and/or conversion of options of an acquired entity, with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of such substitution and/or conversion. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Vesting Period and Exercise Dates</I>.&nbsp;Options granted under this Plan shall vest and/or be exercisable at such time and in such
installments during the period prior to the expiration of the Option&#146;s term as determined by the Administrator. The Administrator shall have the right to make the timing of the ability to exercise any Option granted under this Plan subject to
continued employment, the passage of time and/or such performance requirements as deemed appropriate by the Administrator, or to grant fully vested Options. At any time after the grant of an Option, the Administrator may reduce or eliminate any
restrictions surrounding any Participant&#146;s right to exercise all or part of the Option. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) <I>Form of Consideration</I>.&nbsp;The
Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. Acceptable forms of consideration
may include: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. cash; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. check or wire transfer (denominated in U.S. Dollars); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">iii. subject to the Company&#146;s discretion to refuse for any reason and at any time to accept such consideration and subject to any conditions or limitations established by the Administrator, other Shares held
by the Participant which&nbsp;have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">iv. consideration received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator; </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">10 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">v. cashless &#147;net exercise&#148; arrangement pursuant to which the Company will reduce the number
of Shares issued upon exercise by the largest whole number of Shares having an aggregate Fair Market Value that does not exceed the aggregate exercise price; provided that the Company shall accept a cash or other payment from the Participant to the
extent of any remaining balance of the exercise price not satisfied by such reduction in the number of whole Shares to be issued; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">vi.
such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">vii. any
combination of the foregoing methods of payment. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) <I>No Option (or Stock Appreciation Right) Repricings</I>. Other than in
connection with a change in the Company&#146;s capitalization (as described in Section&nbsp;14(a) of the Plan), a Repricing (as defined below) is prohibited without approval by the stockholders of the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">&#147;<B>Repricing</B>&#148; means any of the following or any other action that has the same purpose and effect: (a)&nbsp;lowering the exercise
price of an outstanding Option or Stock Appreciation Right granted under this Plan after it is granted; (b)&nbsp;any other action affecting an outstanding Option or Stock Appreciation Right granted under this Plan that is treated as a repricing
under United States generally accepted accounting principles; (c)&nbsp;canceling an outstanding Option or Stock Appreciation Right granted under this Plan at a time when its exercise or purchase price exceeds the then fair market value of the stock
underlying such outstanding Option or Stock Appreciation Right, in exchange for another Option or Stock Appreciation Right or a cash payment, unless the cancellation and exchange occurs in connection with a merger, consolidation, sale of
substantially all the Company&#146;s assets, acquisition, spin-off, spin-out, or other similar corporate transaction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT
STYLE="font-family:ARIAL" SIZE="2">9. Effect of Termination of Continuous Service on Awards </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a)
<I>Generally</I>.&nbsp;Unless otherwise provided for by the Administrator, upon an Awardee&#146;s Termination of Continuous Service other than as a result of circumstances described in Sections 9(b), (c), (d)&nbsp;and (e)&nbsp;below, all outstanding
Awards granted to such Awardee that were vested and exercisable as of the date of the Awardee&#146;s Termination of Continuous Service may be exercised by the Awardee until the earlier of (A)&nbsp;three (3)&nbsp;months following Awardee&#146;s
Termination of Continuous Service or (B)&nbsp;the expiration of the term of such Award; provided, however, that the Administrator may in the Award Agreement specify a period of time (but not beyond the expiration date of the Award) following
Termination of Continuous Service during which the Awardee may exercise the Award as to Shares that were vested and exercisable as of the date of Termination of Continuous Service. To the extent such a period following Termination of Continuous
Service is specified, the Award shall automatically terminate at the end of such period to the extent the Awardee has not exercised it within such period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(b) <I>Disability of Awardee</I>.&nbsp;Unless otherwise provided for by the Administrator, upon an Awardee&#146;s Termination of Continuous Service as a result of the Awardee&#146;s disability, including Total and
Permanent Disability, all outstanding Awards granted to such Awardee that were vested and exercisable as of the date of the Awardee&#146;s Termination of Continuous Service may be exercised by the Awardee until the earlier of (A)&nbsp;twelve
(12)&nbsp;months following Awardee&#146;s Termination of Continuous Service as a result of Awardee&#146;s disability, including Total and Permanent Disability or (B)&nbsp;the expiration of the term of such Award. If the Participant does not exercise
such Award within the time specified, the Award (to the extent not exercised) shall automatically terminate. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Death of Awardee</I>.&nbsp;Unless otherwise provided for by the Administrator, upon an
Awardee&#146;s Termination of Continuous Service as a result of the Awardee&#146;s death, all outstanding Awards granted to such Awardee that were vested and exercisable as of the date of the Awardee&#146;s death may be exercised until the earlier
of (A)&nbsp;twelve (12)&nbsp;months following the Awardee&#146;s death or (B)&nbsp;the expiration of the term of such Award. If an Award is held by the Awardee when he or she dies, such Award may be exercised, to the extent the Award is vested and
exercisable, by the beneficiary designated by the Awardee (as provided in Section&nbsp;16 of the Plan), the executor or administrator of the Awardee&#146;s estate or, if none, by the person(s) entitled to exercise the Award under the Awardee&#146;s
will or the laws of descent or distribution; provided that the Company need not accept exercise of an Award by such beneficiary, executor or administrator unless the Company has satisfactory evidence of such person&#146;s authority to act as such.
If the Award is not so exercised within the time specified, such Award (to the extent not exercised) shall automatically terminate. The Awardee&#146;s service shall be deemed to have terminated on account of death if the Awardee dies within three
(3)&nbsp;months (or such longer period as determined by the Administrator, in its discretion) after the Awardee&#146;s Termination of Continuous Service. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(d) <I>Termination for Cause.</I>&nbsp;The Administrator has the authority to cause all outstanding Awards held by an Awardee to terminate immediately in their entirety (including as to vested Awards) upon first
notification to the Awardee of the Awardee&#146;s Termination of Continuous Service for Cause in accordance with Section&nbsp;4(b)(xvi) above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(e) <I>Other Terminations of Continuous Service.</I>&nbsp;The Administrator may provide in the applicable Award Agreement for different treatment of Awards upon Termination of Continuous Service of the Awardee than
that specified above. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(f) <I>Extension of Exercise Period.</I>&nbsp;The Administrator shall have full power and authority to extend the
period of time for which an Award is to remain exercisable following an Awardee&#146;s Termination of Continuous Service from the periods set forth in Sections 9(a), (b), (c), (d)&nbsp;and (e)&nbsp;above or in the Award Agreement to such greater
time as the Administrator shall deem appropriate, provided that in no event shall such Award be exercisable later than the date of expiration of the term of such Award as set forth in the Award Agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(g) <I>Extension if Exercise Prevented by Law.</I>&nbsp;Notwithstanding the foregoing, other than a termination for Cause, if a sale within the
applicable time periods set forth in Section&nbsp;9(a), (b), (c)&nbsp;and (e)&nbsp;above or in the Award Agreement is prevented by Section&nbsp;18 below, the Award shall remain exercisable until thirty (30)&nbsp;days after the date the Awardee is
notified by the Company that the Award is exercisable, but in any event no later than the Award expiration date. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%;padding-bottom:0px; "><FONT STYLE="font-family:ARIAL" SIZE="2">(h) <I>Extension if Subject to Section 16(b).</I>&nbsp;Notwithstanding the foregoing, other than a termination for Cause, if a
sale within the applicable time periods set forth in Section&nbsp;9(a), (b), (c)&nbsp;and (e)&nbsp;above or in the Award Agreement would subject the Awardee to a suit under Section&nbsp;16(b) of the Exchange Act, the Award shall remain exercisable
until the earliest to occur of (i)&nbsp;the tenth (10</FONT><FONT STYLE="font-family:ARIAL" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex"> th</SUP></FONT><FONT STYLE="font-family:ARIAL" SIZE="2"> )&nbsp;day following
the date on which a sale of shares by the Awardee would no longer be subject to suit, (ii)&nbsp;the one hundred ninetieth (190</FONT><FONT STYLE="font-family:ARIAL" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">
th</SUP></FONT><FONT STYLE="font-family:ARIAL" SIZE="2"> )&nbsp;day after Awardee&#146;s Termination of Continuous Service, or (iii)&nbsp;the Award expiration date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">10. Incentive Stock Option Limitations/Terms. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) <I>Eligibility.</I>&nbsp;Only employees (as determined in accordance with Section&nbsp;3401(c) of the Code and the regulations promulgated
thereunder) of the Company or any of its Subsidiaries may be granted Incentive Stock Options. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">12 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>$100,000 Limitation.</I>&nbsp;Notwithstanding the designation &#147;Incentive Stock
Option&#148; in an Option Agreement, if and to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee during any calendar year (under all plans of
the Company and any of its Subsidiaries) exceeds U.S. $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section&nbsp;10(b), Incentive Stock Options shall be taken into account in the order in which they were
granted. The Fair Market Value of the Shares shall be determined as of the Grant Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Transferability.</I>&nbsp;An Incentive
Stock Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner by the Awardee otherwise than by will or the laws of descent and distribution, and, during the lifetime of such Awardee, may only be exercised by
the Awardee. If the terms of an Incentive Stock Option are amended to permit transferability, the Option will be treated for tax purposes as a Nonstatutory Stock Option. The designation of a beneficiary by an Awardee will not constitute a transfer.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) <I>Exercise Price.</I>&nbsp;The per Share exercise price of an Incentive Stock Option shall be determined by the Administrator in
accordance with Section&nbsp;8(b)(i)&nbsp;of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) <I>Other Terms.</I>&nbsp;Option Agreements evidencing Incentive Stock
Options shall contain such other terms and conditions as may be necessary to qualify, to the extent determined desirable by the Administrator, with the applicable provisions of Section&nbsp;422 of the Code. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">11. Exercise of Award. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(a) <I>Procedure for Exercise.</I> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. Any Award granted hereunder shall be exercisable according to
the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the respective Award Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">ii. An Award shall be deemed exercised when the Company receives (A)&nbsp;written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the Award;
(B)&nbsp;full payment for the Shares with respect to which the related Award is exercised; and (C)&nbsp;payment of all applicable withholding taxes (if any). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">iii. An Award may not be exercised for a fraction of a Share. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>Rights as a Stockholder.</I>
The Company shall issue (or cause to be issued) such Shares as administratively practicable after the Award is exercised. Shares issued upon exercise of an Award shall be issued in the name of the Participant or, if requested by the Participant, in
the name of the Participant and his or her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares subject to an Award, notwithstanding the exercise of the Award. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">12. Stock Awards. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(a) <I>Stock Award Agreement.</I>&nbsp;Each Stock Award Agreement shall contain provisions regarding (i)&nbsp;the number of Shares subject to such Stock Award or a formula for determining such number, (ii)&nbsp;the
purchase price of the Shares, if any, and the </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">13 </FONT></P>



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means of payment for the Shares, (iii)&nbsp;the performance criteria (including Qualifying Performance Criteria), if any, and level of achievement versus these criteria that shall determine the
number of Shares granted, issued, retainable and/or vested, (iv)&nbsp;such terms and conditions on the grant, issuance, vesting, settlement and/or forfeiture of the Shares as may be determined from time to time by the Administrator,
(v)&nbsp;restrictions on the transferability of the Stock Award and (vi)&nbsp;such further terms and conditions in each case not inconsistent with this Plan as may be determined from time to time by the Administrator. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>Restrictions and Performance Criteria.</I>&nbsp;The grant, issuance, retention, settlement and/or vesting of each Stock Award or the Shares
subject thereto may be subject to such performance criteria (including Qualifying Performance Criteria) and level of achievement versus these criteria as the Administrator shall determine, which criteria may be based on financial performance,
personal performance evaluations and/or completion of service by the Awardee. Unless otherwise permitted in compliance with the requirements of Code Section&nbsp;162(m) with respect to an Award intended to comply as &#147;performance-based
compensation&#148; thereunder, the Committee shall establish the Qualifying Performance Criteria applicable to, and the formula for calculating the amount payable under, the Award no later than the earlier of (a)&nbsp;the date ninety (90)&nbsp;days
after the commencement of the applicable performance period, or (b)&nbsp;the date on which 25% of the performance period has elapsed, and in any event at a time when the achievement of the applicable Qualifying Performance Criteria remains
substantially uncertain. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Forfeiture.</I>&nbsp;Unless otherwise provided for by the Administrator, upon the Awardee&#146;s
Termination of Continuous Service, the Stock Award and the Shares subject thereto shall be forfeited, provided that to the extent that the Participant purchased or earned any Shares, the Company shall have a right to repurchase the unvested Shares
at such price and on such terms and conditions as the Administrator determines. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) <I>Rights as a Stockholder.</I>&nbsp;Unless
otherwise provided by the Administrator in the Award Agreement, the Participant shall have the rights equivalent to those of a stockholder and shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) to the Participant. Unless otherwise provided by the Administrator, a Participant holding Stock Units shall not be entitled to receive dividend payments or any credit therefor as if
he or she was an actual stockholder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) Stock Appreciation Rights. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. <I>General.</I>&nbsp;Stock Appreciation Rights may be granted either alone, in addition to, or in tandem with other Awards granted under the
Plan. The Administrator may grant Stock Appreciation Rights to eligible Participants subject to terms and conditions not inconsistent with this Plan and determined by the Administrator. The specific terms and conditions applicable to the Participant
shall be provided for in the Stock Award Agreement. Stock Appreciation Rights shall be exercisable, in whole or in part, at such times as the Administrator shall specify in the Stock Award Agreement. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. <I>Exercise of Stock Appreciation Right.</I>&nbsp;Upon the exercise of a Stock Appreciation Right, in whole or in part, the Participant shall
be entitled to a payment in an amount equal to the excess of the Fair Market Value on the date of exercise of a fixed number of Shares covered by the exercised portion of the Stock Appreciation Right, over the Fair Market Value on the Grant Date of
the Shares covered by the exercised portion of the Stock Appreciation Right (or such other amount </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">14 </FONT></P>



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calculated with respect to Shares subject to the Award as the Administrator may determine). The amount due to the Participant upon the exercise of a Stock Appreciation Right shall be paid in such
form of consideration as determined by the Administrator and may be in cash, Shares or a combination thereof, over the period or periods specified in the Stock Award Agreement. A Stock Award Agreement may place limits on the amount that may be paid
over any specified period or periods upon the exercise of a Stock Appreciation Right, on an aggregate basis or as to any Participant. A Stock Appreciation Right shall be considered exercised when the Company receives written notice of exercise in
accordance with the terms of the Stock Award Agreement from the person entitled to exercise the Stock Appreciation Right. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iii.
<I>Nonassignability of Stock Appreciation Rights.</I>&nbsp;Except as determined by the Administrator, no Stock Appreciation Right shall be assignable or otherwise transferable by the Participant except by will or by the laws of descent and
distribution. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B>13. Other Provisions Applicable to Awards. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(a) <I><FONT STYLE="white-space:nowrap">Non-Transferability</FONT> of Awards.</I>&nbsp;Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner for value other than by beneficiary designation, will or by the laws of descent or distribution. Subject to Section&nbsp;10(c), the Administrator may in its discretion make an Award transferable to an Awardee&#146;s family
member or any other person or entity as it deems appropriate. If the Administrator makes an Award transferable, either at the time of grant or thereafter, such Award shall contain such additional terms and conditions as the Administrator deems
appropriate, and any transferee shall be deemed to be bound by such terms upon acceptance of such transfer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b)<I> Qualifying
Performance Criteria.</I>&nbsp;For purposes of this Plan, the term &#147;Qualifying Performance Criteria&#148; shall mean any one or more of the following performance criteria, either individually, alternatively or in any combination, applied to
either the Company as a whole or to a business unit, Affiliate or business segment, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a <FONT
STYLE="white-space:nowrap">pre-established</FONT> target, to previous years&#146; results or to a designated comparison group, in each case as specified by the Administrator in the Award: (i)&nbsp;cash flow; (ii)&nbsp;earnings (including gross
margin; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; earnings before taxes; and net earnings); (iii)&nbsp;earnings per share; (iv)&nbsp;growth in earnings or earnings per share; (v)&nbsp;stock
price; (vi)&nbsp;return on equity or average stockholders&#146; equity; (vii)&nbsp;total stockholder return; (viii)&nbsp;return on capital; (ix)&nbsp;return on assets or net assets; (x)&nbsp;return on investment; (xi)&nbsp;revenue or growth in
revenue; (xii)&nbsp;income or net income; (xiii)&nbsp;operating income or net operating income, in aggregate or per share; (xiv)&nbsp;operating profit or net operating profit; (xv)&nbsp;operating margin; (xvi)&nbsp;return on operating revenue;
(xvii)&nbsp;market share; (xviii)&nbsp;contract awards or backlog; (xix)&nbsp;overhead or other expense reduction; (xx)&nbsp;growth in stockholder value relative to the moving average of the S&amp;P 500 Index or a peer group index; (xxi)&nbsp;credit
rating; (xxii)&nbsp;strategic plan development and implementation (including individual performance objectives that relate to achievement of the Company&#146;s or any business unit&#146;s strategic plan); (xxiii)&nbsp;improvement in workforce
diversity; (xxiv)&nbsp;growth of revenue, operating income or net income; (xxv)&nbsp;efficiency ratio; (xxvi)&nbsp;ratio of nonperforming assets to total assets; and (xxvii)&nbsp;any other similar criteria. The Committee may appropriately adjust any
evaluation of performance under a Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period: (A)&nbsp;asset write-downs; (B)&nbsp;litigation or claim judgments or settlements; (C)&nbsp;the effect
of changes in tax law, accounting principles or other such laws or provisions affecting reported results; (D)&nbsp;accruals for reorganization and restructuring programs; (E)&nbsp;any gains or losses classified as extraordinary or as discontinued
operations in the Company&#146;s financial statements; and (F)&nbsp;mergers, acquisitions or divestitures. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">15 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c)<I> Certification.</I>&nbsp;Prior to the payment of any compensation under an Award intended to
qualify as &#147;performance-based compensation&#148; under Section&nbsp;162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material terms under such Award have been satisfied (other
than in cases where such relate solely to the increase in the value of the Common Stock). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) <I>Discretionary Adjustments Pursuant to
Section&nbsp;162(m).</I>&nbsp;Notwithstanding satisfaction of any completion of any Qualifying Performance Criteria, to the extent specified at the time of grant of an Award to &#147;covered employees&#148; within the meaning of Section&nbsp;162(m)
of the Code, the number of Shares, Options or other benefits granted, issued, retainable and/or vested under an Award on account of satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such further
considerations as the Committee in its sole discretion shall determine. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) <I>Tax Withholding Obligation.</I>&nbsp;As a condition of
the grant, issuance, vesting, exercise or settlement of an Award granted under the Plan, the Participant shall make such arrangements as the Administrator may require for the satisfaction of any applicable federal, state, local or foreign
withholding tax obligations that may arise in connection with such grant, issuance, vesting, exercise or settlement of the Award. The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(f) <I>Compliance with Section&nbsp;409A.</I>&nbsp;Notwithstanding anything to the contrary contained herein, to the extent that the Administrator
determines that any Award granted under the Plan is subject to Code Section&nbsp;409A and unless otherwise specified in the applicable Award Agreement, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary
for such Award to avoid the consequences described in Code Section&nbsp;409A(a)(1), and to the maximum extent permitted under Applicable Law (and unless otherwise stated in the applicable Award Agreement), the Plan and the Award Agreements shall be
interpreted in a manner that results in their conforming to the requirements of Code Section&nbsp;409A(a)(2), (3)&nbsp;and (4)&nbsp;and any Department of Treasury or Internal Revenue Service regulations or other interpretive guidance issued under
Section&nbsp;409A (whenever issued, the &#147;<B>Guidance</B>&#148; ). Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement provides otherwise, with specific reference to this sentence), to the extent that a
Participant holding an Award that constitutes &#147;deferred compensation&#148; under Section&nbsp;409A and the Guidance is a &#147;specified employee&#148; (also as defined thereunder), no distribution or payment of any amount shall be made before
a date that is six (6)&nbsp;months following the date of such Participant&#146;s &#147;separation from service&#148; (as defined in Section&nbsp;409A and the Guidance) or, if earlier, the date of the Participant&#146;s death. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(g) <I>Deferral of Award Benefits.&nbsp;</I>The Administrator may in its discretion and upon such terms and conditions as it determines appropriate
permit one or more Participants whom it selects to (a)&nbsp;defer compensation payable pursuant to the terms of an Award, or (b)&nbsp;defer compensation arising outside the terms of this Plan pursuant to a program that provides for deferred payment
in satisfaction of such other compensation amounts through the issuance of one or more Awards. Any such deferral arrangement shall be evidenced by an Award Agreement in such form as the Administrator shall from time to time establish, and no such
deferral arrangement shall be a valid and binding obligation unless evidenced by a fully executed Award Agreement, the form of which the Administrator has approved, including through the Administrator&#146;s establishing a written program (the
&#147;<B>Program</B>&#148; ) under this Plan to govern the form of Award Agreements participating in such Program. Any such Award Agreement or Program shall specify the treatment of dividends or dividend equivalent rights (if any) that apply to
Awards governed thereby, and shall further provide that any elections governing payment of amounts pursuant to such Program shall be in writing, shall be delivered to the Company or its agent in a form and manner that complies with Code
</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">16 </FONT></P>



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Section&nbsp;409A and the Guidance, and shall specify the amount to be distributed in settlement of the deferral arrangement, as well as the time and form of such distribution in a manner that
complies with Code Section&nbsp;409A and the Guidance. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">14. Adjustments upon Changes in Capitalization,
Dissolution, or Change In Control </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) <I>Changes in Capitalization.</I>&nbsp;Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by each outstanding Award, the number of shares of Common Stock which have been authorized for issuance under the Plan, but as to which no Awards have yet been granted or
which have been returned to the Plan upon cancellation, forfeiture or expiration of an Award, the price per Share subject to each such outstanding Award and each of the share limits set forth in Section&nbsp;3(a) and 3(b), shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, payment of a dividend or distribution in a
form other than stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of the shares of Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been &#147;effected without receipt of consideration.&#148; Such adjustment shall be made by the Administrator,
whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect,
and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>Dissolution or Liquidation.&nbsp;</I>In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify
each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised or the Shares subject thereto issued to the Awardee and unless otherwise determined by the
Administrator, an Award will terminate immediately prior to the consummation of such proposed transaction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Change in
Control.</I>&nbsp;In the event there is a Change in Control of the Company, as determined by the Board or a Committee, the Board or Committee may, in its discretion, (i)&nbsp;provide for the assumption or substitution of, or adjustment (including to
the number and type of Shares and exercise or purchase price applicable) to, each outstanding Award; (ii)&nbsp;accelerate the vesting of Options and terminate any restrictions on Stock Awards; and/or (iii)&nbsp;provide for termination of Awards as a
result of the Change in Control on such terms and conditions as it deems appropriate, including providing for the cancellation of Awards for a cash or other payment to the Participant. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">For purposes of this Section&nbsp;14(c), an Award shall be considered assumed, without limitation, if, at the time of issuance of the stock or
other consideration upon a Change in Control, as the case may be, each holder of an Award would be entitled to receive upon exercise of the Award the same number and kind of shares of stock or the same amount of property, cash or securities as such
holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction, the holder of the number of Shares covered by the Award at such time (after giving effect to any
adjustments in the number of Shares covered by the Award as provided for in Section&nbsp;14(a); provided that if such consideration received in the transaction is not solely common stock of the successor corporation, the Administrator may, with the
consent of the successor corporation, provide for the consideration to be received upon exercise of the Award to be solely common stock of the successor corporation equal to the Fair Market Value of the per Share consideration received by holders of
Common Stock in the transaction. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">17 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">15. Amendment and Termination of the Plan. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) <I>Amendment and Termination.</I>&nbsp;The Administrator may amend, alter or discontinue the Plan or any Award Agreement, but any such
amendment shall be subject to approval of the stockholders of the Company in the manner and to the extent required by Applicable Laws. To the extent required to comply with Section&nbsp;162(m), the Company shall seek
<FONT STYLE="white-space:nowrap">re-approval</FONT> of the Plan from time to time by the stockholders. In addition, without limiting the foregoing, unless approved by the stockholders of the Company, no such amendment shall be made that would:
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">i. materially increase the maximum number of Shares for which Awards may be granted under the Plan, other than an increase pursuant to
Section&nbsp;3 or Section&nbsp;14 of the Plan; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">ii. reduce the minimum exercise prices at which Options may be granted under the Plan
(as set forth in Section&nbsp;8(b)); or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iii. result in a Repricing (as defined in Section&nbsp;8(e)) of Options or Stock Appreciation
Rights; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">iv. change the class of persons eligible to receive Awards under the Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) <I>Effect of Amendment or Termination.</I>&nbsp;No amendment, suspension or termination of the Plan shall impair the rights of any Award,
unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company; provided further that the Administrator may amend an outstanding Award in order to
conform it to the Administrator&#146;s intent (in its sole discretion) that such Award not be subject to Code Section&nbsp;409A(a)(1)(B). Termination of the Plan shall not affect the Administrator&#146;s ability to exercise the powers granted to it
hereunder with respect to Awards granted under the Plan prior to the date of such termination. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) <I>Effect of the Plan on Other
Arrangements.</I>&nbsp;Neither the adoption of the Plan by the Board or a Committee nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or any
Committee to adopt such other incentive arrangements as it or they may deem desirable, including without limitation, the granting of restricted stock, stock options or cash bonuses otherwise than under the Plan, and such arrangements may be either
generally applicable or applicable only in specific cases. The value of Awards granted pursuant to the Plan will not be included as compensation, earnings, salaries or other similar terms used when calculating an Awardee&#146;s benefits under any
employee benefit plan sponsored by the Company or any Subsidiary except as such plan otherwise expressly provides. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT
STYLE="font-family:ARIAL" SIZE="2">16. Designation of Beneficiary. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) An Awardee may file&nbsp;a written designation of a
beneficiary who is to receive the Awardee&#146;s rights pursuant to Awardee&#146;s Award or the Awardee may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the extent that Awardee has completed a
designation of beneficiary while employed with the Company, such beneficiary designation shall remain in effect with respect to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) Such designation of beneficiary may be changed by the Awardee at any time by written notice. In the event of the death of an Awardee and in the
absence of a beneficiary validly designated under the Plan who is living at the time of such </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">18 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">
Awardee&#146;s death, the Company shall allow the executor or administrator of the estate of the Awardee to exercise the Award, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the Awardee to exercise the Award to the extent permissible under Applicable Law or if no spouse, dependent or relative is
known to the Company, then to such other person as the Company may designate. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">17. No Right to Awards or to
Employment. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">No person shall have any claim or right to be granted an Award and the grant of any Award shall not be construed as giving an
Awardee the right to continue in the employ or service of the Company or its Affiliates. Further, the Company and its Affiliates expressly reserve the right, at any time, to dismiss any Employee, Consultant or Awardee at any time without liability
or any claim under the Plan, except as provided herein or in any Award Agreement entered into hereunder. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">18. Legal Compliance. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">Subject to Section&nbsp;22, Shares shall not be issued pursuant to the exercise of an Option or Stock Award unless the exercise of such Option or Stock Award and the issuance and delivery of such Shares shall
comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT
STYLE="font-family:ARIAL" SIZE="2">19. Reservation of Shares. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">The Company, during the term of this Plan, will at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">20. Notice.
</FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be
effective when received. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">21. Governing Law; Interpretation of Plan and Awards. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice of law
rules, of the state of Delaware. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) In the event that any provision of the Plan or any Award granted under the Plan is declared to be
illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of the terms
of the Plan and/or Award shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(c) The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of the Plan, nor shall they affect its meaning, construction or effect.
</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">19 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) The terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties
hereto and their respective permitted heirs, beneficiaries, successors and assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) All questions arising under the Plan or under
any Award shall be decided by the Administrator in its total and absolute discretion. In the event the Participant believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the Participant may request
arbitration with respect to such decision. The review by the arbitrator shall be limited to determining whether the Administrator&#146;s decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review permitted of the
Administrator&#146;s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to explicitly waive any right to judicial review. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(f) Notice of demand for arbitration shall be made in writing to the Administrator within thirty (30)&nbsp;days after the applicable decision by the Administrator. The arbitrator shall be appointed in accordance
with the Commercial Rules of Dispute Resolution of the American Arbitration Association; provided, however, that the arbitration shall not be administered by the American Arbitration Association. The arbitration shall be administered and conducted
by the arbitrator pursuant to the Commercial Rules of Dispute Resolution of the American Arbitration Association. The decision of the arbitrator on the issue(s) presented for arbitration shall be final and conclusive and may be enforced in any court
of competent jurisdiction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">22. Limitation on Liability. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">The Company and any Affiliate which is in existence or hereafter comes into existence shall not be liable to a Participant, an Employee, an Awardee or any other
persons as to: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) <I>The <FONT STYLE="white-space:nowrap">Non-Issuance</FONT> of Shares.</I>&nbsp;The
<FONT STYLE="white-space:nowrap">non-issuance</FONT> or sale of Shares (including under Section&nbsp;18 above) as to which the Company has been unable, or the Arbitration deems it infeasible, to obtain from any regulatory body having jurisdiction
the authority deemed by the Company&#146;s counsel to be necessary to the lawful issuance and sale of any shares hereunder; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b)
<I>Tax Consequences.</I>&nbsp;Any tax consequence realized by any Participant, Employee, Awardee or other person due to the receipt, vesting, exercise or settlement of any Option or other Award granted hereunder or due to the transfer of any Shares
issued hereunder. The Participant is responsible for, and by accepting an Award under the Plan agrees to bear, all taxes of any nature that are legally imposed upon the Participant in connection with an Award, and the Company does not assume, and
will not be liable to any party for, any cost or liability arising in connection with such tax liability legally imposed on the Participant. In particular, Awards issued under the Plan may be characterized by the Internal Revenue Service (the
&#147;IRS&#148;) as &#147;deferred compensation&#148; under the Code resulting in additional taxes, including in some cases interest and penalties. In the event the IRS determines that an Award constitutes deferred compensation under the Code or
challenges any good faith characterization made by the Company or any other party of the tax treatment applicable to an Award, the Participant will be responsible for the additional taxes, and interest and penalties, if any, that are determined to
apply if such challenge succeeds, and the Company will not reimburse the Participant for the amount of any additional taxes, penalties or interest that result. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(c) <I>Forfeiture.</I> The requirement that Participant forfeit an Award, or the benefits received or to be received under an Award, pursuant to any Applicable Law. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">20 </FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">23. Indemnification. </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Company or an Affiliate, members of
the Board and any officers or employees of the Company or an Affiliate to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys&#146; fees, actually
and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection
with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in
any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in any such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in duties; provided,
however, that within sixty (60)&nbsp;days after the institution of such action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">24. Unfunded Plan. </FONT></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees who are granted Stock Awards under this Plan, any such accounts will be used
merely as a bookkeeping convenience. The Company shall not be required to segregate any assets which may at any time be represented by Awards, nor shall this Plan be construed as providing for such segregation, nor shall the Company nor the
Administrator be deemed to be a trustee of stock or cash to be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based solely upon any contractual obligations which may be created by the Plan;
no such obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be required to give any security or bond for the performance of any
obligation which may be created by this Plan. </FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:ARIAL" SIZE="2"><B><FONT STYLE="font-family:ARIAL" SIZE="2">Exhibit 99.2 </FONT></B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:ARIAL" SIZE="2">HERON THERAPEUTICS, INC. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:ARIAL" SIZE="2">1997
EMPLOYEE STOCK PURCHASE PLAN </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:ARIAL" SIZE="2">(as amended through June 12, 2017) </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">1. PURPOSE. This Heron Therapeutics, Inc. 1997 Employee Stock Purchase Plan is designed to encourage and assist employees of Heron Therapeutics, Inc. and participating subsidiaries to acquire an equity interest in
the Company through the purchase of shares of Company common stock. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">2. DEFINITIONS. As used herein, the following definitions shall apply: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) &#147;Administrator&#148; shall mean the entity, either the Board or the committee of the Board, responsible for administering this Plan, as
provided in Section&nbsp;3. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) &#147;Board&#148; shall mean the Board of Directors of the Company, as constituted from time to time.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) &#147;Code&#148; shall mean the Internal Revenue Code of 1986, as amended from time to time, and any successor statute. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(d) &#147;Company&#148; shall mean Heron Therapeutics, Inc., a Delaware corporation, and Participating Subsidiaries. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(e) &#147;Common Stock&#148; shall mean the Common Stock, $.01 par value, of the Company. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(f) &#147;Employee&#148; shall mean any individual who is an employee of the Company or a Participating Subsidiary within the meaning of
Section&nbsp;3401(c) of the Code and the Treasury Regulations thereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(g) &#147;Enrollment Date&#148; shall have the meaning set
forth in Section&nbsp;6. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(h) &#147;Fair market value&#148; means as of any given date: (i)&nbsp;the closing price of the Common Stock
on the NASDAQ Stock Market as reported in the Wall Street Journal; or (ii)&nbsp;if the Common Stock is no longer quoted on the NASDAQ Stock Market, but is listed on an established stock exchange or quoted on any other established interdealer
quotation system, the closing price for the Common Stock on such exchange or system, as reported in the Wall Street Journal; or (iii)&nbsp;in the absence of an established market for the Common Stock, the fair market value of the Common Stock as
determined by the Administrator in good faith. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(i) &#147;Lower Price Enrollment Date&#148; shall have the meaning set forth in
Section&nbsp;6. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(j) &#147;Option Period&#148; shall have the meaning set forth in Section&nbsp;7(b). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(k) &#147;Participating Subsidiary&#148; shall mean a Subsidiary which has been designated by the Administrator as covered by the Plan. </FONT></P>

 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">1 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(l) &#147;Plan&#148; shall mean this Heron Therapeutics, Inc. 1997 Employee Stock Purchase Plan, as it
may be amended from time to time. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(m) &#147;Purchase Date&#148; shall have the meaning set forth in Section&nbsp;9(a). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(n) &#147;Section&#148; unless the context clearly indicates otherwise, shall refer to a Section of this Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(o) &#147;Subsidiary&#148; shall mean a &#147;subsidiary corporation&#148; of the Company, whether now or hereafter existing, within the meaning of
Section&nbsp;424(f) of the Code, but only for so long as it is a &#147;subsidiary corporation.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(p) &#147;Trading Day&#148; means
any day on which regular trading occurs on any established stock exchange or market system on which the Common Stock is traded. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">3. ADMINISTRATION.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) Administrator. The Plan shall be administered by the Board or, upon delegation by the Board, by a committee of the Board (in either
case, the &#147;Administrator&#148;). In connection with the administration of the Plan, the Administrator shall have the powers possessed by the Board. The Administrator may act only by a majority of its members. The Administrator may delegate
administrative duties to such employees of the Company as it deems proper, so long as such delegation is not otherwise prohibited by Rule <FONT STYLE="white-space:nowrap">16b-3</FONT> under the Securities Exchange Act of 1934, as amended, or other
applicable law. The Board at any time may terminate the authority delegated to any committee of the Board pursuant to this Section&nbsp;3(a) and revest in the Board the administration of the Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) Administrator Determinations Binding. The Administrator may adopt, alter and repeal administrative rules, guidelines and practices governing
the Plan and the options granted under it as it shall deem advisable from time to time, may interpret the terms and provisions of the Plan and the Options granted under it, may correct any defect, omission or inconsistency in the Plan or in any
Option; and may otherwise supervise the administration of the Plan and the Options granted under it. The Administrator may establish, under guidelines from the Board, limits on the number of shares which may be purchased by each participant on an
annual or other periodic basis or on the number of shares which may be purchased on any Purchase Date. All decisions made by the Administrator under the Plan shall be binding on all persons, including the Company and all participants in the Plan. No
member of the Administrator shall be liable for any action that he or she has in good faith taken or failed to take with respect to this Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">4.
NUMBER OF SHARES. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) The Company has reserved for sale under the Plan 475,000 shares of Common Stock. Shares sold under the Plan may
be newly issued shares or shares reacquired in private transactions or open market purchases, but all shares sold under the Plan, regardless of source, shall be counted against the 475,000 share limitation. If at any Purchase Date, the shares
available under the Plan are less than the number all participants would otherwise be entitled to purchase on such date, purchases shall be reduced proportionately to eliminate the deficit. If, at any Purchase Date, the shares which may be purchased
by a participant are restricted on account of a limit on the aggregate shares which may be purchased per employee, purchases under each option shall be reduced proportionately. Any funds that cannot be applied to the purchase of shares due to such
reductions shall be refunded to participants as soon as administratively feasible. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) In the event of any reorganization, recapitalization, stock split, reverse stock split, stock
dividend, combination of shares, merger, consolidation, offering of rights, or other similar change in the capital structure of the Company, the Board may make such adjustment, if any, as it deems appropriate in the number, kind, and purchase price
of the shares available for purchase under the Plan and in the maximum number of shares subject to any option under the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">5. ELIGIBILITY
REQUIREMENTS. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) Each Employee of the Company, except those described in the next paragraph, shall become eligible to participate in
the Plan in accordance with Section&nbsp;6 on the first Enrollment Date on or following commencement of his or her employment by the Company or following such period of employment as is designated by the Administrator from time to time.
Participation in the Plan is entirely voluntary. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) The following Employees are not eligible to participate in the Plan: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(i) Employees who would, immediately upon enrollment in the Plan, own directly or indirectly, or hold options or rights to acquire stock
possessing, five percent (5%)&nbsp;or more of the total combined voting power or value of all classes of stock of the Company or any subsidiary of the Company; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(ii) Employees who are customarily employed by the Company fewer than twenty (20)&nbsp;hours per week or fewer than five (5)&nbsp;months in any calendar year. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">6. ENROLLMENT. Any eligible employee may enroll or <FONT STYLE="white-space:nowrap">re-enroll</FONT> in the Plan each year as of the close of the first trading day
of: (a)&nbsp;May and November of each such year; or (b)&nbsp;such other days as may be established by the Board from time to time (the &#147;Enrollment Dates&#148;); provided, that the first Enrollment Date shall be April&nbsp;30, 1997. In order to
enroll, an eligible employee must complete, sign, and submit to the Company an enrollment form. Any enrollment form received by the Company by the 20th day of the month preceding an Enrollment Date (or by the Enrollment Date in the case of employees
hired after such 20th day or in the case of the first Enrollment Date), or such other date established by the Administrator from time to time, will be effective on that Enrollment Date. In addition, the Administrator may <FONT
STYLE="white-space:nowrap">re-enroll</FONT> existing participants in the Plan on any Enrollment Date (the &#147;Lower Price Enrollment Date&#148;) on which the fair market value of the Common Stock is lower than the fair market value on such
participant&#146;s existing Enrollment Date. A participant may elect not to <FONT STYLE="white-space:nowrap">re-enroll</FONT> on a Lower Price Enrollment Date by filing a written statement with the Company declaring such election prior to the Lower
Price Enrollment Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">7. GRANT OF OPTION ENROLLMENT. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(a) Enrollment or <FONT STYLE="white-space:nowrap">re-enrollment</FONT> by a participant in the Plan on an Enrollment Date will constitute the grant by the Company to the participant of an option to purchase shares
of Common Stock from the Company under the Plan. Any participant whose option expires and who has not withdrawn from the Plan will automatically be <FONT STYLE="white-space:nowrap">re-enrolled</FONT> in the Plan and granted a new option on the
Enrollment Date immediately following the date on which the option expires. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) Except as provided in Section&nbsp;10, each option
granted under the Plan shall have the following terms: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(i) the option will have a term of not more than twenty-four (24)&nbsp;months or
such shorter option period as may be established by the Board from time to time (the &#147;Option Period&#148;). Notwithstanding the foregoing, however, whether or not </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">
all shares have been purchased thereunder, the option will expire on the earlier to occur of: (A)&nbsp;the completion of the purchase of shares on the last Purchase Date occurring within
twenty-four (24)&nbsp;months after the Enrollment Date for such option, or such shorter option period as may be established by the Board before an Enrollment Date for all options to be granted on such date; or (B)&nbsp;the date on which the
employee&#146;s participation in the Plan terminates for any reason; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ii) payment for shares purchased under the option will be made
only through payroll withholding in accordance with Section&nbsp;8; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(iii) purchase of shares upon exercise of the option will be
effected only on the Purchase Dates established in accordance with Section&nbsp;9; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(iv) the option, if not altered, amended or revoked
by the Company prior to the relevant Purchase Date, may be accepted only by (x)&nbsp;there having been withheld from the compensation of the employee in accordance with the terms of the Plan amounts sufficient to purchase the Common Stock intended
to be purchased under the option, and (y)&nbsp;the employee being employed by the Company and not having withdrawn from the Plan on the relevant Purchase Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(v) the price per share under the option will be determined as provided in Section&nbsp;9; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(vi) the
maximum number of shares available for purchase under an option for each one percent (1%)&nbsp;of compensation designated by an employee in accordance with Section&nbsp;8 will, unless otherwise established by the Board before an Enrollment Date for
all options to be granted on such date, be determined by dividing $25,000 by the fair market value of a share of Common Stock on the Enrollment Date, dividing the result by the maximum number of percentage points that an employee may designate under
Section&nbsp;8 at the time such option is granted, and multiplying the result by the number of calendar years included in whole or in part in the period from grant to expiration of the option; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(vii) the option (taken together with all other options then outstanding under this and all other similar stock purchase plans of the Company and
any subsidiary of the Company, collectively &#147;Options&#148;) will in no event give the participant the right to purchase shares at a rate per calendar year which accrues in excess of $25,000 of fair market value of such shares, less the fair
market value of any shares accrued and already purchased during such year under Options which have expired or terminated, determined at the applicable Enrollment Dates; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(viii) the option will in all respects be subject to the terms and conditions of the Plan, as interpreted by the Administrator from time to time. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">8. PAYROLL AND TAX WITHHOLDING; USE BY COMPANY. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) Each participant shall elect to have amounts
withheld from his or her compensation paid by the Company during the Option Period, at a rate equal to any whole percentage up to a maximum of ten percent (10%), or such lesser percentage as the Board may establish from time to time before an
Enrollment Date. Compensation includes regular salary payments, annual and quarterly bonuses, <FONT STYLE="white-space:nowrap">hire-on</FONT> bonuses, cash recognition awards, commissions, overtime pay, shift premiums, and elective contributions by
the participant to qualified employee benefit plans, but excludes all other payments including, without limitation, long-term disability or workers compensation payments, car allowances, employee referral bonuses,
</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">
relocation payments, expense reimbursements (including but not limited to travel, entertainment, and moving expenses), salary <FONT STYLE="white-space:nowrap">gross-up</FONT> payments, and <FONT
STYLE="white-space:nowrap">non-cash</FONT> recognition awards. The participant shall designate a rate of withholding in his or her enrollment form and may elect to increase or decrease the rate of contribution effective as of any Enrollment Date, by
delivery to the Company, not later than ten (10)&nbsp;days before such Enrollment Date, of a written notice indicating the revised withholding rate. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(b) Payroll withholdings shall be credited to an account maintained for purposes of the Plan on behalf of each participant, as soon as administratively feasible after the withholding occurs. The Company shall be
entitled to use the withholdings for any corporate purpose, shall have no obligation to pay interest on withholdings to any participant, and shall not be obligated to segregate withholdings. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) Upon disposition of shares acquired by exercise of an option, the participant shall pay, or make provision adequate to the Company for payment
of, all federal, state, and other tax (and similar) withholdings that the Company determines, in its discretion, are required due to the disposition, including any such withholding that the Company determines in its discretion is necessary to allow
the Company to claim tax deductions or other benefits in connection with the disposition. A participant shall make such similar provisions for payment that the Company determines, in its discretion, are required due to the exercise of an option,
including such provisions as are necessary to allow the Company to claim tax deductions or other benefits in connection with the exercise of the option. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">9. PURCHASE OF SHARES. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) On the last Trading
Day immediately preceding an Enrollment Date (other than the first Enrollment Date), or on such other days as may be established by the Board from time to time prior to an Enrollment Date for all options to be granted on such Enrollment Date (each a
&#147;Purchase Date&#148;), the Company shall apply the funds then credited to each participant&#146;s payroll withholdings account to the purchase of whole shares of Common Stock. The cost to the participant for the shares purchased under any
option shall be not less than eighty-five percent (85%)&nbsp;of the lower of: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(i) the fair market value of the Common Stock on the
Enrollment Date for such option; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ii) the fair market value of the Common Stock on the date such option is exercised. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) Any funds in an amount less than the cost of one share of Common Stock left in a participant&#146;s payroll withholdings account on a Purchase
Date shall be carried forward in such account for application on the next Purchase Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(c) Notwithstanding the terms of
Section&nbsp;9(a), no funds credited to any employee&#146;s payroll withholdings account shall be used to purchase Common Stock on any date prior to the date that the Plan has been approved by the stockholders of the Company, as noted in
Section&nbsp;21. If such approval is not forthcoming within one year from the date that the Plan was approved by the Board of Directors, all amounts withheld shall be distributed to the participants as soon as administratively feasible. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">10. WITHDRAWAL FROM THE PLAN. A participant may withdraw from the Plan in full (but not in part) at any time, effective after written notice thereof is received by
the Company. Unless the Administrator elects to permit a withdrawing participant to </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">
invest funds credited to his or her withholding account on the Purchase Date immediately following notice of withdrawal, all funds credited to a participant&#146;s payroll withholdings account
shall be distributed to him or her without interest within sixty (60)&nbsp;days after notice of withdrawal is received by the Company. Any eligible employee who has withdrawn from the Plan may enroll in the Plan again on any subsequent Enrollment
Date in accordance with the provisions of Section&nbsp;6. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">11. TERMINATION OF EMPLOYMENT. Participation in the Plan terminates immediately when a
participant ceases to be employed by the Company for any reason whatsoever (including death or disability) or otherwise becomes ineligible to participate in the Plan. As soon as administratively feasible after termination, the Company shall pay to
the participant or his or her beneficiary or legal representative, all amounts credited to the participant&#146;s payroll withholdings account; provided, however, that if a participant ceases to be employed by the Company because of the commencement
of employment with a Subsidiary of the Company that is not a Participating Subsidiary, funds then credited to such participant&#146;s payroll withholdings account shall be applied to the purchase of whole shares of Common Stock at the next Purchase
Date and any funds remaining after such purchase shall be paid to the participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">12. DESIGNATION OF BENEFICIARY. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) Each participant may designate one or more beneficiaries in the event of death and may, in his or her sole discretion, change such designation
at any time. Any such designation shall be effective upon receipt in written form by the Company and shall control over any disposition by will or otherwise. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(b) As soon as administratively feasible after the death of a participant, amounts credited to his or her account shall be paid in cash to the designated beneficiaries or, in the absence of a designation, to the
executor, administrator, or other legal representative of the participant&#146;s estate. Such payment shall relieve the Company of further liability with respect to the Plan on account of the deceased participant. If more than one beneficiary is
designated, each beneficiary shall receive an equal portion of the account unless the participant has given express contrary written instructions. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">13.
ASSIGNMENT. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) The rights of a participant under the Plan shall not be assignable by such participant, by operation of law or
otherwise. No participant may create a lien on any funds, securities, rights, or other property held by the Company for the account of the participant under the Plan, except to the extent that there has been a designation of beneficiaries in
accordance with the Plan, and except to the extent permitted by the laws of descent and distribution if beneficiaries have not been designated. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(b) A participant&#146;s right to purchase shares under the Plan shall be exercisable only during the participant&#146;s lifetime and only by him or her, except that a participant may direct the Company in the
enrollment form to issue share certificates to the participant and his or her spouse in community property, to the participant jointly with one or more other persons with right of survivorship, or to certain forms of trusts approved by the
Administrator. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">14. ADMINISTRATIVE ASSISTANCE. If the Administrator in its discretion so elects, it may retain a brokerage firm, bank, or other
financial institution to assist in the purchase of shares, delivery of reports, or other administrative aspects of the Plan. If the Administrator so elects, each participant shall (unless prohibited by the laws of the nation of his or her employment
or residence) </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">
be deemed upon enrollment in the Plan to have authorized the establishment of an account on his or her behalf at such institution. Shares purchased by a participant under the Plan shall be held
in the account in the name in which the share certificate would otherwise be issued pursuant to Section&nbsp;13(b). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">15. COSTS. All costs and expenses
incurred in administering the Plan shall be paid by the Company, except that any stamp duties or transfer taxes applicable to participation in the Plan may be charged to the account of such participant by the Company. Any brokerage fees for the
purchase of shares by a participant shall be paid by the Company, but brokerage fees for the resale of shares by a participant shall be borne by the participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:ARIAL" SIZE="2">16. EQUAL RIGHTS AND PRIVILEGES. All eligible employees shall have equal rights and privileges with respect to the Plan so that the Plan qualifies as an &#147;employee stock purchase plan&#148; within the meaning
of Section&nbsp;423 of the Code and the related Treasury Regulations. Any provision of the Plan which is inconsistent with Section&nbsp;423 of the Code shall without further act or amendment by the Company or the Board be reformed to comply with the
requirements of Section&nbsp;423. This Section&nbsp;16 shall take precedence over all other provisions of the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">17. APPLICABLE LAW. The Plan shall
be governed by the substantive laws (excluding the conflict of laws rules) of the State of California. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">18. MODIFICATION AND TERMINATION. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(a) The Board may amend, alter, or terminate the Plan at any time, including amendments to outstanding options. No amendment shall require
stockholder approval, except: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(i) for an increase in the number of shares reserved for purchase under the Plan; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(ii) to the extent required for the Plan to comply with Section&nbsp;423 of the Code; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(iii) to the extent required by other applicable laws, regulations or rules; or </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:3%"><FONT STYLE="font-family:ARIAL" SIZE="2">(iv) to the extent the Board otherwise concludes that stockholder approval is advisable. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT STYLE="font-family:ARIAL" SIZE="2">(b) In the event the Plan is terminated, the Board may elect to terminate all outstanding options either immediately or upon completion of the
purchase of shares on the next Purchase Date, or may elect to permit options to expire in accordance with their terms (and participation to continue through such expiration dates). If the options are terminated prior to expiration, all funds
contributed to the Plan that have not been used to purchase shares shall be returned to the participants as soon as administratively feasible. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; margin-left:1%"><FONT
STYLE="font-family:ARIAL" SIZE="2">(c) In the event of the sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, or the dissolution or liquidation of the Company, each option
outstanding under the Plan shall be assumed by any purchaser of all or substantially all of the assets of the Company or by a successor by merger to the Company (or the parent company of such purchaser or successor) in compliance with
Section&nbsp;424 of the Code, unless otherwise provided by the Board in its sole discretion, in which event, a Purchase Date shall occur immediately before the effective date of such event. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">19. RIGHTS AS AN EMPLOYEE. Nothing in the Plan shall be construed to give any person the right to remain in the employ
of the Company or to affect the Company&#146;s right to terminate the employment of any person at any time with or without cause. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">20. RIGHTS AS A
SHAREHOLDER; DELIVERY OF CERTIFICATES. Unless otherwise determined by the Board, certificates evidencing shares purchased on any Purchase Date shall be delivered to a participant only if he or she makes a written request to the Administrator.
Participants shall be treated as the owners of their shares effective as of the Purchase Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:ARIAL" SIZE="2">21. BOARD AND SHAREHOLDER APPROVAL. The Plan was
approved by the Board of Directors on March&nbsp;5, 1997, and by the holders of a majority of the votes cast at a duly held shareholders&#146; meeting on June&nbsp;18, 1997, at which a quorum of the voting power of the Company was represented in
person or by proxy. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8 </FONT></P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
