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<SEC-DOCUMENT>0001144204-07-002331.txt : 20070118
<SEC-HEADER>0001144204-07-002331.hdr.sgml : 20070118
<ACCEPTANCE-DATETIME>20070118161004
ACCESSION NUMBER:		0001144204-07-002331
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20070111
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070118
DATE AS OF CHANGE:		20070118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OXIS INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000109657
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				941620407
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08092
		FILM NUMBER:		07537939

	BUSINESS ADDRESS:	
		STREET 1:		323 VINTAGE PARK DRIVE, SUITE B
		CITY:			FOSTER CITY
		STATE:			CA
		ZIP:			94404
		BUSINESS PHONE:		6502122568

	MAIL ADDRESS:	
		STREET 1:		323 VINTAGE PARK DRIVE, SUITE B
		CITY:			FOSTER CITY
		STATE:			CA
		ZIP:			94404

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DDI PHARMACEUTICALS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIAGNOSTIC DATA INC /DE/
		DATE OF NAME CHANGE:	19850312
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      Vintage Park Drive, Suite B, Foster City, California 94404</strong></font></div>
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          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
              1.01</strong></font></td>
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              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
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      January 11, 2007 the board of directors of OXIS International, Inc. (the
&#8220;Company&#8221;) appointed Matthew Spolar to the Company&#8217;s board of directors. In
      consideration for his services as a director, Mr. Spolar will be eligible to
      receive annual automatic option grants to purchase up to 5,000 shares of Company
      common stock, under the Company&#8217;s 2003 Stock Incentive Plan, until otherwise
      determined by the board. In addition, on January 11, 2007 the board of directors
      authorized an initial option grant to Mr. Spolar for the purchase of up to
      30,000 shares of common stock, with an exercise price based on the quoted price
      of the Company&#8217;s common stock on January 10, 2007. A copy of the option
      agreement between the Company and Mr. Spolar is included as Exhibit 99.1 to
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                of
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 11, 2007, the board of directors of OXIS International, Inc. (the
&#8220;Company&#8221;) appointed Matthew Spolar to the Company&#8217;s board of directors. In
      connection with the appointment of Mr. Spolar, the board of directors has fixed
      the number of authorized directors at six (6). </font></div>
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      pursuant to which Mr. Spolar was selected as a director. </font></div>
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      than a stock option grant to Mr. Spolar for the purchase of up to 30,000 shares
      of Company common stock, issued in connection with his appointment to the board
      of directors of the Company (described in Item 1.01 of this current report
      on
      Form 8-K), there have been no transactions since the beginning of the Company&#8217;s
      last fiscal year, or any proposed transactions, to which the Company or any
      of
      its subsidiaries was or is to be a party, in which the amount involved exceeds
      $60,000 and in which Mr. Spolar, or any member of his immediate family, has
      or
      will have a direct or indirect material interest. </font></div>
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                to Articles of Incorporation or Bylaws; Change in Fiscal
                Year.</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 11, 2007, the board of directors of the Company </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">approved
      an amendment to the Company&#8217;s bylaws to fix the number of authorized directors
      at six (6), effective on January 11, 2007. </font></div>
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              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
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            </td>
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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>v062850_ex99-1.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OXIS
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      OF STOCK OPTION AWARD</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td width="50%"><font size="2">81 71<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>st</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
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            <td width="50%"><font size="2">Brooklyn, NY
              11209</font>&#160;</td>
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      the terms and conditions of this Notice of Stock Option Award (the &#8220;Notice&#8221;),
      the OXIS International, Inc. 2003 Stock Incentive Plan, as amended from time
      to
      time (the &#8220;Plan&#8221;) and the Stock Option Agreement (the &#8220;Option Agreement&#8221;)
      attached hereto, as follows. Unless otherwise defined herein, the terms defined
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            <td width="50%">&#160;</td>
            <td width="50%">&#160;</td>
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            <td width="50%">&#160;</td>
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            <td width="50%"><font size="2">$0.22</font>&#160;</td>
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            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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            <td colspan="2"><font size="2">OXIS International, Inc.</font></td>
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            <td>&#160;</td>
            <td colspan="2"><font size="2">a Delaware corporation</font>&#160;</td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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            <td style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              Marvin S.
              Hausman</font></td>
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            <td>&#160;</td>
            <td>&#160;</td>
            <td>&#160;</td>
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          <tr valign="top" bgcolor="#ffffff">
            <td style="border-bottom: #ffffff solid;">&#160;</td>
            <td style="border-bottom: #ffffff solid;"><font size="2">Title:</font>&#160;</td>
            <td style="border-bottom: black thin solid;"><font size="2">President
&amp;
              CEO</font>&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THE
      OPTIONEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL
      VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE OPTIONEE&#8217;S SERVICE (NOT THROUGH
      THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING SHARES HEREUNDER).
      THE OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE
      OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE OPTIONEE ANY RIGHT WITH
      RESPECT TO FUTURE AWARDS OR CONTINUATION OF THE OPTIONEE&#8217;S SERVICE, NOR SHALL IT
      INTERFERE IN ANY WAY WITH THE OPTIONEE&#8217;S RIGHT OR THE RIGHT OF THE COMPANY OR
      THE PARENT, SUBSIDIARY OR AFFILIATE OF THE COMPANY TO WHICH THE OPTIONEE
      PROVIDES SERVICES TO TERMINATE THE OPTIONEE&#8217;S SERVICE, WITH OR WITHOUT
      CAUSE</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      AND WITH
      OR WITHOUT NOTICE. THE OPTIONEE ACKNOWLEDGES THAT UNLESS THE OPTIONEE HAS A
      WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE OPTIONEE&#8217;S
      STATUS IS AT WILL.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Optionee acknowledges receipt of a copy of the Plan and the Option Agreement,
      and represents that he or she is familiar with the terms and provisions thereof,
      and hereby accepts the Option subject to all of the terms and provisions hereof
      and thereof. The Optionee has reviewed this Notice, the Plan, and the Option
      Agreement in their entirety, has had an opportunity to obtain the advice of
      counsel prior to executing this Notice, and fully understands all provisions
      of
      this Notice, the Plan and the Option Agreement. The Optionee hereby agrees
      that
      all questions of interpretation and administration relating to this Notice,
      the
      Plan and the Option Agreement shall be resolved by the Compensation Committee
      in
      accordance with Section&#160;13 of the Option Agreement. The Optionee further
      agrees to the venue selection and waiver of a jury trial in accordance with
      Section&#160;14 of the Option Agreement. The Optionee further agrees to notify
      the Company upon any change in the residence address indicated in this
      Notice.</font></div>
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    <div align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="10%" style="border-bottom: #ffffff solid;"><font size="2">Dated:</font>&#160;</td>
            <td width="37%" style="border-bottom: black thin solid;">&#160;</td>
            <td width="6%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="10%" style="border-bottom: #ffffff solid;"><font size="2">Signed:&#160;</font>&#160;</td>
            <td width="37%" style="border-bottom: black thin solid;">&#160;</td>
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          <tr bgcolor="white">
            <td width="10%">&#160;</td>
            <td width="37%">&#160;</td>
            <td width="6%">&#160;</td>
            <td colspan="2" width="47%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">Optionee</font>&#160;</div>
            </td>
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            <td width="10%">&#160;</td>
            <td width="37%">&#160;</td>
            <td width="6%">&#160;</td>
            <td width="10%">&#160;</td>
            <td width="37%">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
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            of Stock Option Award - NSO</font></div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">2</font></div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OXIS
      INTERNATIONAL, INC. 2003 STOCK INCENTIVE PLAN</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>STOCK
      OPTION AGREEMENT</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Grant
      of Option</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      OXIS
      International, Inc., a Delaware corporation (the &#8220;Company&#8221;), hereby grants to
      the Optionee (the &#8220;Optionee&#8221;) named in the Notice of Stock Option Award (the
&#8220;Notice&#8221;), an option (the &#8220;Option&#8221;) to purchase the Total Number of Common
      Shares subject to the Option (the &#8220;Shares&#8221;) set forth in the Notice, at the
      Exercise Price per Share set forth in the Notice (the &#8220;Exercise Price&#8221;) subject
      to the terms and provisions of the Notice, this Stock Option Agreement (the
      &#8220;Option Agreement&#8221;) and the Company&#8217;s 2003 Stock</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incentive
      Plan, as amended from time to time (the &#8220;Plan&#8221;), which are incorporated herein
      by reference. Unless otherwise defined herein, the terms defined in the Plan
      shall have the same defined meanings in this Option Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      designated in the Notice as an ISO, the Option is intended to qualify as an
      ISO
      as defined in Section&#160;422 of the Code. However, notwithstanding such
      designation, to the extent that the aggregate Fair Market Value of Shares
      subject to Options designated as ISOs which become exercisable for the first
      time by the Optionee during any calendar year (under all plans of the Company
      or
      any Parent or Subsidiary of the Company) exceeds $100,000, such excess Options,
      to the extent of the Shares covered thereby in excess of the foregoing
      limitation, shall be treated as NSOs. For this purpose, ISOs shall be taken
      into
      account in the order in which they were granted, and the Fair Market Value
      of
      the Shares shall be determined as of the date the Option with respect to such
      Shares is awarded.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exercise
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Right
      to Exercise</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Option shall be exercisable during its term in accordance with the Vesting
      Schedule set out in the Notice and with the applicable provisions of the Plan
      and this Option Agreement. The Option shall be subject to the provisions of
      Section</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2(d)
      of
      the Option Agreement relating to the exercisability or termination of the Option
      in the event of a Change in Control. The Optionee shall be subject to reasonable
      limitations on the number of requested exercises during any monthly or weekly
      period as determined by the Compensation Committee (the &#8220;Committee&#8221;). In no
      event shall the Company issue fractional Shares. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Method
      of Exercise</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Option shall be exercisable by delivery of an exercise notice (a form of which
      is attached as Exhibit A) or by such other procedure as specified from time
      to
      time by the Committee which shall state the election to exercise the Option,
      the
      whole number of Shares in respect of which the Option is being exercised, and
      such other provisions as may be required by the Committee. The exercise notice
      shall be delivered in person, by certified mail, or by such other method
      (including electronic transmission) as determined from time to time by the
      Committee to the Company accompanied by payment of the Exercise Price. The
      Option shall be deemed to be exercised upon receipt by the Company of such
      notice accompanied by the Exercise Price, which, to the extent selected, shall
      be deemed to be satisfied by use of the broker-dealer sale and remittance
      procedure to pay the Exercise Price provided in Section&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Taxes</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      No
      Shares will be delivered to the Optionee or other person pursuant to the
      exercise of the Option until the Optionee or other person has made arrangements
      acceptable to the Committee for the satisfaction of applicable income tax and
      employment tax withholding obligations, including, without limitation, such
      other tax obligations of the Optionee incident to the receipt of Shares or
      the
      disqualifying disposition of Shares received on exercise of an ISO. Upon
      exercise of the Option, the Company or the Optionee&#8217;s employer may offset or
      withhold (from any amount owed by the Company or the Optionee&#8217;s employer to the
      Optionee) or collect from the Optionee or other person an amount sufficient
      to
      satisfy such tax withholding obligations.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Change
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      This
      Option shall not terminate in connection with a Change in Control. In the event
      the Company shall be acquired pursuant to a merger, acquisition, stock purchase,
      reorganization or similar transaction, this Option shall be assumed by the
      acquiring entity with appropriate adjustments to the number and type of
      securities of the successor entity or its parent subject to the Option and
      the
      exercise or purchase price thereof which at least preserves the value of the
      Option existing at the time of the Change in Control as determined in accordance
      with the instruments evidencing the agreement to assume the Option.
</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Method
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      Payment
      of the Exercise Price shall be made by any of the following, or a combination
      thereof, at the election of the Optionee; provided, however, that such exercise
      method does not then violate any applicable law and, provided further, that
      the
      portion of the Exercise Price equal to the par value of the Shares must be
      paid
      in cash or other legal consideration permitted by the Delaware General
      Corporation Law:</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">cash;</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">check;</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)<strong><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">surrender
      of Shares or delivery of a properly executed form of attestation of ownership
      of
      Shares as the Committee may require which have a Fair Market Value on the date
      of surrender or attestation equal to the aggregate Exercise Price of the Shares
      as to which the Option is being exercised, provided, however, that Shares
      acquired under the Plan or any other equity compensation plan or agreement
      of
      the Company must have been held by the Optionee for a period of more than six
      (6) months (and not used for another option exercise by attestation during
      such
      period); or</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">payment
      through a broker-dealer sale and remittance procedure pursuant to which the
      Optionee (i) shall provide written instructions to a Company-designated
      brokerage firm to effect the immediate sale of some or all of the purchased
      Shares and remit to the Company sufficient funds to cover the aggregate exercise
      price payable for the purchased Shares and (ii) shall provide written directives
      to the Company to deliver the certificates for the purchased Shares directly
      to
      such brokerage firm in order to complete the sale transaction</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      on Exercise</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Option may not be exercised if the issuance of the Shares subject to the Option
      upon such</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">exercise
      would constitute a violation of any applicable laws. </font></div>
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      or Change of Service</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In the
      event the Optionee&#8217;s Service terminates, due to his or her Disability or
      death,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      Optionee may, but only during the Post-Termination Exercise Period, exercise
      the
      portion of the Option that was vested at the date of such termination (the
      &#8220;Termination Date&#8221;). In no event, however, shall the Option be exercised later
      than the Expiration Date set forth in the Notice. In the event of the Optionee&#8217;s
      change in status from Employee, Outside Director or Consultant to any other
      status of Employee, Outside Director or Consultant, the Option shall remain
      in
      effect and vesting of the Option shall continue only to the extent determined
      by
      the Committee as of such change in status; provided, however, that with respect
      to any ISO that shall remain in effect after a change in status from Employee
      to
      Outside Director or Consultant, such ISO shall cease to be treated as an ISO
      and
      shall be treated as a NSO on the day three&#160;(3) months and one&#160;(1) day
      following such change in status. Except as provided in
      Sections&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      below,
      to the extent that the Option was unvested on the Termination Date, or if the
      Optionee does not exercise the vested portion of the Option within the
      Post-Termination Exercise Period,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      Option shall terminate.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Disability
      of Optionee</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In the
      event the Optionee&#8217;s Service terminates as a result of his or her Disability (as
      defined below), the Optionee may, but only within twelve (12) months from the
      Termination Date (but in no event later than the Expiration Date), exercise
      the
      portion of the Option that was vested on the Termination Date; provided,
      however, that if such Disability is not a &#8220;disability&#8221; as such term is defined
      in Section&#160;22(e)(3) of the Code and the Option is an ISO, such ISO shall
      cease to be treated as an ISO and shall be treated as a NSO on the day
      three&#160;(3) months and one&#160;(1) day following the Termination Date. To
      the extent that the Option was unvested on the Termination Date, or if the
      Optionee does not exercise the vested portion of the Option within the time
      specified herein, the Option shall terminate.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      For
      purposes of this Option Agreement, &#8220;Disability&#8221; means as defined under the
      long-term disability policy of the Company or the Parent, Subsidiary or
      Affiliate of the Company to which the Optionee provides services regardless
      of
      whether the Optionee is covered by such policy. If the Company or the Parent,
      Subsidiary or Affiliate of the Company to which the Optionee provides service
      does not have a long-term disability plan in place, &#8220;Disability&#8221; means that a
      Optionee is unable to carry out the responsibilities and functions of the
      position held by the Optionee by reason of any medically determinable physical
      or mental impairment for a period of not less than ninety (90) consecutive
      days.
      An Optionee will not be considered to have incurred a Disability unless he
      or
      she furnishes proof of such impairment sufficient to satisfy the Committee
      in
      its discretion. Section&#160;22(e)(3) of the Code provides that an individual is
      permanently and totally disabled if he or she is unable to engage in any
      substantial gainful activity by reason of any medically determinable physical
      or
      mental impairment which can be expected to result in death or which has lasted
      or can be expected to last for a continuous period of not less than twelve
      (12)
      months.</font></div>
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    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Death
      of Optionee</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In the
      event of the termination of the Optionee&#8217;s Service as a result of his or her
      death, or in the event of the Optionee&#8217;s death during the Post-Termination
      Exercise Period or during the twelve&#160;(12) month period following the
      Optionee&#8217;s termination of Service as a result of his or her Disability, the
      person who acquired the right to exercise the Option pursuant to Section&#160;8
      may exercise the portion of the Option that was vested at the date of
      termination within twelve&#160;(12) months from the date of death (but in no
      event later than the Expiration Date). To the extent that the Option was
      unvested on the date of death, or if the vested portion of the Option is not
      exercised within the time specified herein, the Option shall
      terminate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            of Stock Option Award - NSO</font></div>
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            <hr style="COLOR: black" noshade size="2">
          </div>
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    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Transferability
      of Option</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Option, if an ISO, may not be transferred in any manner other than by will
      or by
      the laws of descent and distribution and may be exercised during the lifetime
      of
      the Optionee only by the Optionee. The Option, if a NSO, may not be transferred
      in any manner other than by will or by the laws of descent and distribution,
      provided, however, that a NSO may be transferred during the lifetime of the
      Optionee to the extent and in the manner authorized by the Committee.
      Notwithstanding the foregoing, the Optionee may designate one or more
      beneficiaries of the Optionee&#8217;s ISO or NSO in the event of the Optionee&#8217;s death
      on a beneficiary designation form provided by the Committee. Following the
      death
      of the Optionee, the Option, to the extent provided in Section&#160;7, may be
      exercised (a)&#160;by the person or persons designated under the deceased
      Optionee&#8217;s beneficiary designation or (b)&#160;in the absence of an effectively
      designated beneficiary, by the Optionee&#8217;s legal representative or by any person
      empowered to do so under the deceased Optionee&#8217;s will or under the then
      applicable laws of descent and distribution. The terms of the Option shall
      be
      binding upon the executors, administrators, heirs, successors and transferees
      of
      the Optionee.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Term
      of Option</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Option must be exercised no later than the Expiration Date set forth in the
      Notice or such earlier date as otherwise provided herein. After the Expiration
      Date or such earlier date, the Option shall be of no further force or effect
      and
      may not be exercised.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Tax
      Consequences</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Set
      forth below is a brief summary as of the date of this Option Agreement of some
      of the federal tax consequences of exercise of the Option and disposition of
      the
      Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS
      ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE
      EXERCISING THE OPTION OR DISPOSING OF THE SHARES.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exercise
      of ISO</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      If the
      Option qualifies as an ISO, there will be no regular federal income tax
      liability upon the exercise of the Option, although the excess, if any, of
      the
      Fair Market Value of the Shares on the date of exercise over the Exercise Price
      will be treated as income for purposes of the alternative minimum tax for
      federal tax purposes and may subject the Optionee to the alternative minimum
      tax
      in the year of exercise. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">However,
      the Internal Revenue Service issued proposed regulations which would subject
      the
      Optionee to withholding at the time the Optionee exercises an ISO for Social
      Security and Medicare based upon the excess, if any, of the Fair Market Value
      of
      the Shares on the date of exercise over the Exercise Price. These proposed
      regulations are subject to further modification by the Internal Revenue Service
      and, if adopted, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">would
      be
      effective only for the exercise of an ISO that occurs two years after the
      regulations are issued in final form.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exercise
      of ISO Following Disability</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      If the
      Optionee&#8217;s Service terminates as a result of Disability that is not permanent
      and total disability as such term is defined in Section&#160;22(e)(3) of the
      Code, to the extent permitted on the date of termination, the Optionee must
      exercise an ISO within three (3) months of such termination for the ISO to
      be
      qualified as an ISO. Section&#160;22(e)(3) of the Code provides that an
      individual is permanently and totally disabled if he or she is unable to engage
      in any substantial gainful activity by reason of any medically determinable
      physical or mental impairment which can be expected to result in death or which
      has lasted or can be expected to last for a continuous period of not less than
      twelve (12) months. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div id="GLFTR" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman" size="2">Notice
            of Stock Option Award - NSO</font></div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">4</font></div>
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            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exercise
      of NSO</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      On
      exercise of a NSO, the Optionee will be treated as having received compensation
      income (taxable at ordinary income tax rates) equal to the excess, if any,
      of
      the Fair Market Value of the Shares on the date of exercise over the Exercise
      Price. If the Optionee is an Employee or a former Employee, the Company will
      be
      required to withhold from the Optionee&#8217;s compensation or collect from the
      Optionee and pay to the applicable taxing authorities an amount in cash equal
      to
      a percentage of this compensation income at the time of exercise, and may refuse
      to honor the exercise and refuse to deliver Shares if such withholding amounts
      are not delivered at the time of exercise.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 72pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Disposition
      of Shares</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In the
      case of a NSO, if Shares are held for more than one year, any gain realized
      on
      disposition of the Shares will be treated as long-term capital gain for federal
      income tax purposes. In the case of an ISO, if Shares transferred pursuant
      to
      the Option are held for more than one year after receipt of the Shares and
      are
      disposed more than two years after the Date of Award, any gain realized on
      disposition of the Shares also will be treated as capital gain for federal
      income tax purposes and subject to the same tax rates and holding periods that
      apply to Shares acquired upon exercise of a NSO. If Shares purchased under
      an
      ISO are disposed of prior to the expiration of such one-year or two-year
      periods, any gain realized on such disposition will be treated as compensation
      income (taxable at ordinary income rates) to the extent of the difference
      between the Exercise Price and the lesser of (i)&#160;the Fair Market Value of
      the Shares on the date of exercise, or (ii)&#160;the sale price of the
      Shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Entire
      Agreement: Governing Law</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Notice, the Plan and this Option Agreement constitute the entire agreement
      of
      the parties with respect to the subject matter hereof and supersede in their
      entirety all prior undertakings and agreements of the Company and the Optionee
      with respect to the subject matter hereof, and may not be modified adversely
      to
      the Optionee&#8217;s interest except by means of a writing signed by the Company and
      the Optionee. Nothing in the Notice, the Plan and this Option Agreement (except
      as expressly provided therein) is intended to confer any rights or remedies
      on
      any persons other than the parties. The Notice, the Plan and this Option
      Agreement are to be construed in accordance with and governed by the internal
      laws of the</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">State
      of
      California without giving effect to any choice of law rule that would cause
      the
      application of the laws of any jurisdiction other than the internal laws of
      the
      State of California to the rights and duties of the parties. Should any
      provision of the Notice, the Plan or this Option Agreement be determined to
      be
      illegal or unenforceable, such provision shall be enforced to the fullest extent
      allowed by law and the other provisions shall nevertheless remain effective
      and
      shall remain enforceable.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Headings</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      captions used in the Notice and this Option Agreement are inserted for
      convenience and shall not be deemed a part of the Option for construction or
      interpretation. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            of Stock Option Award - NSO</font></div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Administration
      and Interpretation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Any
      question or dispute regarding the administration or interpretation of the
      Notice, the Plan or this Option Agreement shall be submitted by the Optionee
      or
      by the Company to the Committee. The resolution of such question or dispute
      by
      the Committee shall be final and binding on all persons. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Venue
      and Waiver of Jury Trial</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      parties agree that any suit, action, or proceeding arising out of or relating
      to
      the Notice, the Plan or this Option Agreement shall be brought in the United
      States District Court for the Northern District of California (or should such
      court lack jurisdiction to hear such action, suit or proceeding, in a California
      state court in the County of San Mateo) and that the parties shall submit to
      the
      jurisdiction of such court. The parties irrevocably waive, to the fullest extent
      permitted by law, any objection the party may have to the laying of venue for
      any such suit, action or proceeding brought in such court. THE PARTIES ALSO
      EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH
      SUIT, ACTION OR PROCEEDING. If any one or more provisions of this
      Section&#160;14 shall for any reason be held invalid or unenforceable, it is the
      specific intent of the parties that such provisions shall be modified to the
      minimum extent necessary to make it or its application valid and
      enforceable.</font></div>
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      Any
      notice required or permitted hereunder shall be given in writing and shall
      be
      deemed effectively given upon personal delivery, upon deposit for delivery
      by an
      internationally recognized express mail courier service or upon deposit in
      the
      United States mail by certified mail (if the parties are within the United
      States), with postage and fees prepaid, addressed to the other party at its
      address as shown in these instruments, or to such other address as such party
      may designate in writing from time to time to the other party.</font></div>
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      OF AGREEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">6</font></div>
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            <hr style="COLOR: black" noshade size="2">
          </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>EXHIBIT
      A</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>OXIS
      INTERNATIONAL, INC. 2003 STOCK INCENTIVE PLAN</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>EXERCISE
      NOTICE</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OXIS
      International, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">323
      Vintage Park Drive, Suite B</font></div>
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      City, CA 94404</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Secretary</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exercise
      of Option</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Effective as of today, ______________, ___ the undersigned (the &#8220;Optionee&#8221;)
      hereby elects to exercise the Optionee&#8217;s option to purchase ___________ Common
      Share (the &#8220;Shares&#8221;) of OXIS International, Inc. (the &#8220;Company&#8221;) under and
      pursuant to the Company&#8217;s 2003 Stock Incentive Plan, as amended from time to
      time (the &#8220;Plan&#8221;) and the [&#160;&#160;]&#160;ISO [&#160;&#160;]&#160;NSO
      Agreement (the &#8220;Option Agreement&#8221;) and Notice of Stock Option Award (the
&#8220;Notice&#8221;) dated ______________, ________. Unless otherwise defined herein, the
      terms defined in the Plan shall have the same defined meanings in this Exercise
      Notice.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Representations
      of the Optionee</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Optionee acknowledges that the Optionee has received, read and understood the
      Notice, the Plan and the Option Agreement and agrees to abide by and be bound
      by
      their terms and conditions. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Rights
      as Stockholder</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Until
      the stock certificate evidencing such Shares is 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, notwithstanding the
      exercise of the Option. The Company shall issue (or cause to be issued) such
      stock certificate promptly after the Option is exercised. No adjustment will
      be
      made for a dividend or other right for which the record date is prior to the
      date the stock certificate is issued, except as provided in Section&#160;9 of
      the Plan.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Delivery
      of Payment</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Optionee herewith delivers to the Company the full Exercise Price for the
      Shares, which, to the extent selected, shall be deemed to be satisfied by use
      of
      the broker-dealer sale and remittance procedure to pay the Exercise Price
      provided in Section&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1(d)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of the
      Option Agreement, to the extent permissible under applicable law.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Tax
      Consultation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Optionee understands that the Optionee may suffer adverse tax consequences
      as a
      result of the Optionee&#8217;s purchase or disposition of the Shares. The Optionee
      represents that the Optionee has consulted with any tax consultants the Optionee
      deems advisable in connection with the purchase or disposition of the Shares
      and
      that the Optionee is not relying on the Company for any tax advice.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Taxes</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Optionee agrees to satisfy all applicable federal, state and local income and
      employment tax withholding obligations and herewith delivers to the Company
      the
      full amount of such obligations or has made arrangements acceptable to the
      Company to satisfy such obligations. In the case of an ISO, the Optionee also
      agrees, as partial consideration for the designation of the Option as an ISO,
      to
      notify the Company in writing within thirty&#160;(30) days of any disposition of
      any shares acquired by exercise of the Option if such disposition occurs within
      two&#160;(2) years from the Date of Award or within one&#160;(1) year from the
      date the Shares were transferred to the Optionee. If the Company is required
      to
      satisfy any foreign, federal, state or local income or employment tax
      withholding obligations as a result of such an early disposition, the Optionee
      agrees to satisfy the amount of such withholding in a manner that the Committee
      prescribes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">1</font></div>
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            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Successors
      and Assigns</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Company may assign any of its rights under this Exercise Notice to single or
      multiple assignees, and this agreement shall inure to the benefit of the
      successors and assigns of the Company. This Exercise Notice shall be binding
      upon the Optionee and his or her heirs, executors, administrators, successors
      and assigns.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Headings</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      captions used in this Exercise Notice are inserted for convenience and shall
      not
      be deemed a part of this agreement for construction or interpretation.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Administration
      and Interpretation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Optionee hereby agrees that any question or dispute regarding the administration
      or interpretation of this Exercise Notice shall be submitted by the Optionee
      or
      by the Company to the Committee. The resolution of such question or dispute
      by
      the Committee shall be final and binding on all persons. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Governing
      Law; Severability</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      This
      Exercise Notice is to be construed in accordance with and governed by the
      internal laws of the State of California without giving effect to any choice
      of
      law rule that would cause the application of the laws of any jurisdiction other
      than the internal laws of the State of California to the rights and duties
      of
      the parties. Should any provision of this Exercise Notice be determined by
      a
      court of law to be illegal or unenforceable, such provision shall be enforced
      to
      the fullest extent allowed by law and the other provisions shall nevertheless
      remain effective and shall remain enforceable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Notices</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Any
      notice required or permitted hereunder shall be given in writing and shall
      be
      deemed effectively given upon personal delivery, upon deposit for delivery
      by an
      internationally recognized express mail courier service or upon deposit in
      the
      United States mail by certified mail (if the parties are within the United
      States), with postage and fees prepaid, addressed to the other party at its
      address as shown below beneath its signature, or to such other address as such
      party may designate in writing from time to time to the other
      party.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Further
      Instruments</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      parties agree to execute such further instruments and to take such further
      action as may be reasonably necessary to carry out the purposes and intent
      of
      this agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Entire
      Agreement</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Notice, the Plan and the Option Agreement are incorporated herein by reference
      and together with this Exercise Notice constitute the entire agreement of the
      parties with respect to the subject matter hereof and supersede in their
      entirety all prior undertakings and agreements of the Company and the Optionee
      with respect to the subject matter hereof, and may not be modified adversely
      to
      the Optionee&#8217;s interest except by means of a writing signed by the Company and
      the Optionee. Nothing in the Notice, the Plan, the Option Agreement and this
      Exercise Notice (except as expressly provided therein) is intended to confer
      any
      rights or remedies on any persons other than the parties. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
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      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="40%">
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                by:</font>&#160;</div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td colspan="2" width="45%">
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                by:</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>&#160;</div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td width="40%">&#160;</td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="40%">&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td align="left" width="40%">
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            </td>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>v062850_ex99-2.htm
<TEXT>
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  <head>
    <title>
</title>
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  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      99.2</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Press
      Release </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>January
      16, 2007</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>OXIS
      International Appoints Matt Spolar to Its Board of
      Directors</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OXIS
      International (OTCBB: OXIS) (Nouveau Marche: OXIS) (FWB: OXI), a
      biopharmaceutical company focused on commercializing biomarker research and
      clinical assays, nutraceutical and therapeutic products related to oxidative
      stress and, through its majority interest in BioCheck, high quality immunoassay
      clinical kits and contract services, announced today that it has appointed
      Matt
      Spolar to its Board of Directors. Mr. Spolar currently serves as Vice President,
      Product Technology for Atkins Nutritionals, Inc.("Atkins"), a market-leading
      portable nutrition foods company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      1999, Mr. Spolar has spearheaded new product development, product optimization,
      scientific affairs, quality systems management, and technical production support
      for Atkins. Mr. Spolar helped to arrange an acquisition of Atkins by Parthenon
      Capital and Goldman Sachs in October, 2003 for more than $500 million,
      participated in improving the company's balance sheet through a pre-packaged
      bankruptcy where two-thirds of liabilities were exchanged for equity, and
      witnessed the company's emergence from bankruptcy just six months later.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"We
      are
      pleased to attract an experienced executive like Matt to our Board of Directors
      during such an exciting time for OXIS," said Marvin S. Hausman MD, President
      and
      CEO. "We believe his experience in turnaround situations and in developing
      innovative food products should be invaluable as we aggressively drive sales,
      seek licensing activities, and launch one of our leading nutraceutical products
      from our promising portfolio." </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      joining Atkins, Mr. Spolar served as an analyst with Datamonitor, Inc., a global
      management consultancy, where he specialized in providing information solutions
      for Fortune 500 consumer packaged goods companies. Mr. Spolar was awarded BS
      and
      MS degrees in Food Science from the Pennsylvania State University. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>About
      OXIS and BioCheck</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OXIS
      International, Inc. develops technologies and products to research, diagnose,
      treat and prevent diseases of oxidative stress/inflammation associated with
      damage from free radical and reactive oxygen species. The company holds the
      rights to three therapeutic classes of compounds in the area of oxidative
      stress, and has focused commercialization programs in clinical cardiovascular
      markers, including MPO (myeloperoxidase) and GPx (glutathionione peroxidase),
      as
      well as a highly potent antioxidant, Ergothioneine, that may be sold
      over-the-counter (OTC) as a neutraceutcal supplement. OXIS has acquired a 51%
      interest in and has the option to purchase the remaining 49% of BioCheck.
</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BioCheck,
      Inc. is a leading provider of high quality enzyme immunoassay research services
      and products including immunoassay kits for cardiac and tumor markers,
      infectious diseases, thyroid function, steroids, and fertility hormones. The
      company operates a 15,000 square-foot, U.S. Food and Drug Administration (FDA)
      certified cGMP, and ISO device-manufacturing facility in Foster City,
      California. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">More
      information about OXIS, BioCheck and their products, services as well as current
      SEC filings may be obtained by visiting http://www.oxisresearch.com and
      http://www.biocheckinc.com. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      statements in this press release that are not purely historical are
      forward-looking statements within the meaning of Section 27A of the Securities
      Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including,
      without limitation, statements regarding our expectations, objectives,
      anticipations, plans, hopes, beliefs, intentions or strategies regarding the
      future. Factors that could cause actual results to differ materially from the
      forward-looking statements include risks and uncertainties indicated in the
      company's filings with the Securities and Exchange Commission. It is important
      to note that actual outcomes could differ materially from those in such
      forward-looking statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CEOcast,
      Inc. for OXIS International</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Andrew
      Hellman, 212-732-4300</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Source:
      Business Wire (January 16, 2007 - 8:13 AM EST) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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