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                                 EXHIBIT 4.1

                  EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
                             1997 STOCK OPTION PLAN

     This 1997 Stock Option Plan (the "Plan") provides for the grant of
options to acquire shares of common stock, $.01 par value (the "Common
Stock"), of EXPEDITORS INTERNATIONAL OF WASHINGTON, INC., a Washington
corporation (the "Company"). Stock options granted under this Plan that
qualify under Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code"), are referred to in this Plan as "Incentive Stock Options."
Incentive Stock Options and stock options that do not qualify under Section
422 of the Code ("Non-Qualified Stock Options") granted under this Plan are
referred to as "Options."

1.   PURPOSES.

     The purposes of this Plan are to retain the services of valued key
employees of the Company, its subsidiaries and such other affiliates as the
Plan Administrator shall select in accordance with Section 3 below; to
encourage such persons to acquire a greater proprietary interest in the
Company, thereby strengthening their incentive to achieve the objectives of
the shareholders of the Company; and to serve as an aid and inducement in the
hiring of new employees.

2.   ADMINISTRATION.

     This Plan shall be administered by the Board of Directors of the Company
(the "Board") if each director is an "outside director" (as defined below).
If all directors are not outside directors, the Plan shall be administered by
a committee designated by the Board and composed of two (2) or more members
of the Board that are "non-employee directors" (as defined below) and outside
directors, which committee (the "Committee") may be the compensation
committee or a separate committee especially created for this purpose. The
term "non-employee director" shall have the meaning assigned to it under Rule
16b-3 (as amended from time to time) promulgated under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), or any successor rule
or regulatory requirement. The term "outside director" shall have the meaning
assigned under Section 162(m) of the Code (as amended from time to time) and
the regulations (or any successor regulations) promulgated thereunder
("Section 162(m) of the Code"). The Committee shall have the powers and
authority vested in the Board hereunder (including the power and authority to
interpret any provision of this Plan or of any Option). The members of any
such Committee shall serve at the pleasure of the Board. A majority of the
members of the Committee shall constitute a quorum, and all actions of the
Committee shall be taken by a majority of the members present. Any action may
be taken by a written instrument signed by all of the members of the
Committee and any action so taken shall be fully effective as if it had been
taken at a meeting. The Board, or any committee thereof appointed to
administer the Plan, is referred to herein as the "Plan Administrator."

     Subject to the provisions of this Plan, and with a view to effecting its
purpose, the Plan Administrator shall have sole authority, in its absolute
discretion, to (a) construe and interpret this Plan; (b) define the terms
used in this Plan; (c) prescribe, amend and rescind rules and regulations
relating to this Plan; (d) correct any defect, supply any omission or
reconcile any inconsistency in this Plan; (e) grant Options under this Plan;
(f) determine the individuals to whom Options shall be granted under this
Plan and whether the Option is an Incentive Stock Option or a Non-Qualified
Stock Option; (g) determine the time or times at which Options shall be
granted under this Plan; (h) determine the number of shares of Common Stock
subject to each Option, the exercise price of each Option, the

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duration of each Option and the times at which each Option shall become
exercisable; (i) determine all other terms and conditions of Options; and (j)
make all other determinations necessary or advisable for the administration
of this Plan. All decisions, determinations and interpretations made by the
Plan Administrator shall be binding and conclusive on all participants in
this Plan and on their legal representatives, heirs and beneficiaries.

     The Board or the Committee may delegate to one or more executive
officers of the Company the authority to grant Options under this Plan to
employees of the Company who, on the Date of Grant, are not subjected to
Section 16(b) of the Exchange Act with respect to the Common Stock
(Non-Insiders"), and are not "covered employees" as such term is defined for
purposes of Section 162(m) of the Code ("Non-Covered Employees"), and in
connection therewith the authority to determine: (a) the number of shares of
Common Stock subject to such Option; (b) the duration of the Option; (c) the
vesting schedule for determining the times at which such Option shall become
exercisable; and (d) all other terms and conditions of such Options. The
exercise price for any Option granted by action of an executive officer or
officers pursuant to such delegation of authority shall not be less than the
fair market value per share of the Common Stock on the Date of Grant. Unless
expressly approved in advance by the Board or the Committee, such delegation
of authority shall not include the authority to accelerate the vesting,
extend the period for exercise or otherwise alter the terms of outstanding
Options. The term "Plan Administrator" when used in any provision of this
Plan other than Sections 2, 5(m), 5(n) and 12 shall be deemed to refer to the
Board or the Committee, as the case may be, and an executive officer who has
been authorized to grant Options pursuant thereto, insofar as such provisions
may be applied to persons that are Non-Insiders and Non-Covered Employees and
Options granted to such persons.

3.   ELIGIBILITY.

     Incentive Stock Options may be granted to any individual who, at the
time the Option is granted, is an employee of the Company or any Related
Corporation (as defined below), including employees who are directors of the
Company ("Employees"). Non-Qualified Stock Options may be granted to
Employees and to such other persons who are employed by affiliated companies,
other than directors who are not Employees, as the Plan Administrator shall
select. Options may be granted in substitution for outstanding Options of
another corporation in connection with the merger, share exchange,
acquisition of property or stock or other reorganization between such other
corporation and the Company or any subsidiary of the Company. Any person to
whom an Option is granted under this Plan is referred to as an "Optionee."
Any person who is the owner of an Option is referred to as a "Holder."

     As used in this Plan, the term "Related Corporation" shall mean any
corporation (other than the Company) that is a "Parent Corporation" of the
Company or "Subsidiary Corporation" of the Company, as those terms are
defined in Sections 424(e) and 424(f) respectively, of the Code (or any
successor provisions), and the regulations thereunder (as amended from time
to time).

4.   STOCK.

     The Plan Administrator is authorized to grant Options to acquire up to a
total of 4,000,000 shares of the Company's authorized but unissued Common
Stock. The number of shares with respect to which Options may be granted
hereunder is subject to adjustment as set forth in Subsection 5(m) hereof. In
the event that any outstanding Option expires or is terminated for any
reason, the shares of Common Stock allocable to the unexercised portion of
such Option may again be subject to an Option to the same Optionee or to a
different person eligible under Section 3 of this Plan; provided however,
that any canceled Options will be counted against the maximum number of
shares with respect to which Options may be granted to any particular person
as set forth in Section 6 hereof.

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5.   TERMS AND CONDITIONS OF OPTIONS.

     Each Option granted under this Plan shall be evidenced by a written
agreement approved by the Plan Administrator (the "Agreement"). Agreements
may contain such provisions, not inconsistent with this Plan, as the Plan
Administrator in its discretion may deem advisable. All Options also shall
comply with the following requirements:

     (a) NUMBER OF SHARES AND TYPE OF OPTION.

         Each Agreement shall state the number of shares of Common Stock to
which it pertains and whether the Option is intended to be an Incentive Stock
Option or a Non-Qualified Stock Option. In the absence of action to the contrary
by the Plan Administrator in connection with the grant of an Option, all Options
shall be Non-Qualified Stock Options. The aggregate fair market value
(determined at the Date of Grant, as defined below) of the stock with respect to
which Incentive Stock Options are exercisable for the first time by the Optionee
during any calendar year (granted under this Plan and all other Incentive Stock
Option plans of the Company, a Related Corporation or a predecessor corporation)
shall not exceed $100,000, or such other limit as may be prescribed by the Code
as it may be amended from time to time. Any portion of an Option which exceeds
the annual limit shall not be void, but rather shall be a Non-Qualified Stock
Option.

     (b) DATE OF GRANT.

         Each Agreement shall state the date the Plan Administrator has deemed
to be the effective date of the Option for purposes of this Plan (the "Date of
Grant").

     (c) OPTION PRICE.

         Each Agreement shall state the price per share of Common Stock at
which it is exercisable. The exercise price shall be fixed by the Plan
Administrator at whatever price the Plan Administrator may determine in the
exercise of its sole discretion; PROVIDED that the per share exercise price
for any Option granted shall not be less than the fair market value per share
of the Common Stock at the Date of Grant as determined by the Plan
Administrator in good faith; PROVIDED FURTHER, that with respect to Incentive
Stock Options granted to greater-than-10 percent (GREATER THAN 10%)
shareholders of the Company (as determined with reference to Section 424(d)
of the Code), the exercise price per share shall not be less than 110 percent
(110%) of the fair market value per share of the Common Stock at the Date of
Grant as determined by the Plan Administrator in good faith; and, PROVIDED
FURTHER, that Options granted in substitution for outstanding options of
another corporation in connection with the merger, share exchange,
acquisition of property or stock or other reorganization involving such other
corporation and the Company or any subsidiary of the Company may be granted
with an exercise price equal to the exercise price for the substituted option
of the other corporation, subject to any adjustment consistent with the terms
of the transaction pursuant to which the substitution is to occur.

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     (d) DURATION OF OPTIONS.

         At the time of the grant of the Option, the Plan Administrator shall
designate, subject to Subsection 5(g) below, the expiration date of the
Option, which date shall not be later than ten (10) years from the Date of
Grant; PROVIDED, that the expiration date of any Incentive Stock Option
granted to a greater-than-10 percent (GREATER THAN 10%) shareholder of the
Company (as determined with reference to Section 424(d) of the Code) shall
not be later than five (5) years from the Date of Grant. In the absence of
action to the contrary by the Plan Administrator in connection with the grant
of a particular Option, and except in the case of Incentive Stock Options as
described above, all Options granted under this Section 5 shall expire ten
(10) years from the Date of Grant.

     (e) VESTING SCHEDULE.

         No Option shall be exercisable until it has vested. The vesting
schedule for each Option shall be specified by the Plan Administrator at the
time of grant of the Option prior to the provision of services with respect to
which such Option is granted; PROVIDED, that if no vesting schedule is specified
at the time of grant, the Option shall be fifty percent (50%) vested three (3)
years from the Date of Grant, seventy-five percent (75%) vested four (4) years
from the Date of Grant and one hundred percent (100%) vested five (5) years from
the Date of Grant.

         The Plan Administrator may specify a vesting schedule for all or any
portion of an Option based on the achievement of performance objectives
established in advance of the commencement by the Optionee of services related
to the achievement of the performance objectives. Performance objectives shall
be expressed in terms of one or more of the following: return on equity, return
on assets, share price, market share, sales, earnings per share, costs, net
earnings, net worth, inventories, cash and cash equivalents, gross margin or the
Company's performance relative to its internal business plan. Performance
objectives may be in respect of the performance of the Company as a whole
(whether on a consolidated or unconsolidated basis), a Related Corporation, or a
subdivision, operating unit, product or product line of either of the foregoing.
Performance objectives may be absolute or relative and may be expressed in terms
of a progression or a range. An Option that is exercisable (in full or in part)
upon the achievement of one or more performance objectives may be exercised only
following written notice to the Optionee and the Company by the Plan
Administrator that the performance objectives have been achieved.

     (f) ACCELERATION OF VESTING.

         The vesting of one or more outstanding Options may be accelerated by
the Plan Administrator at such times and in such amounts as it shall determine
in its sole discretion. The vesting of Options also shall be accelerated under
the circumstances described in Subsections 5(m) and 5(n) below.

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     (g) TERM OF OPTION.

         Vested Options shall terminate, to the extent not previously exercised,
upon the occurrence of the first of the following events: (i) the expiration of
the Option, as designated by the Plan Administrator in accordance with
Subsection 5(d) above; (ii) the date of an Optionee's termination of employment
with the Company or any Related Corporation; or (iii) the expiration of ninety
(90) days from (A) the date of death of the Optionee or (B) cessation of an
Optionee's employment by reason of Disability (as defined below) unless, in the
case of a Non-Qualified Stock Option, the exercise period is extended by the
Plan Administrator until a date not later than the expiration date of the
Option. If an Optionee's employment or contractual relationship is terminated by
death, any Option held by the Optionee shall be exercisable only by the person
or persons to whom such Optionee's rights under such Option shall pass by the
Optionee's will or by the laws of descent and distribution of the state or
county of the Optionee's domicile at the time of death. For purposes of the
Plan, unless otherwise defined in the Agreement, "Disability" shall mean any
physical, mental or other health condition which substantially impairs the
Optionee's ability to perform his or her assigned duties for one hundred twenty
(120) days or more in any two hundred forty (240) day period or that can be
expected to result in death. The Plan Administrator shall determine whether an
Optionee has incurred a Disability on the basis of medical evidence acceptable
to the Plan Administrator. Upon making a determination of Disability, the Plan
Administrator shall, for purposes of the Plan, determine the date of an
Optionee's termination of employment.

         Unless accelerated in accordance with Subsection 5(f) above, unvested
Options shall terminate immediately upon termination of employment of the
Optionee by the Company for any reason whatsoever, including death or
Disability. For purposes of this Plan, transfer of employment between or among
the Company and/or any Related Corporation shall not be deemed to constitute a
termination of employment with the Company or any Related Corporation. For
purposes of this Subsection with respect to Incentive Stock Options, employment
shall be deemed to continue while the Optionee is on military leave, sick leave
or other bona fide leave of absence (as determined by the Plan Administrator).
The foregoing notwithstanding, employment shall not be deemed to continue beyond
the first ninety (90) days of such leave, unless the Optionee's re-employment
rights are guaranteed by statute or by contract.

     (h) EXERCISE OF OPTIONS.

         Options shall be exercisable, in full or in part, at any time after
vesting, until termination. If less than all of the shares included in the
vested portion of any Option are purchased, the remainder may be purchased at
any subsequent time prior to the expiration of the Option term. No portion of
any Option for less than ten (10) shares (as adjusted pursuant to Subsection
5(m) below) may be exercised; PROVIDED, that if the vested portion of any Option
is less than ten (10) shares, it may be exercised with respect to all shares for
which it is vested. Only whole shares may be issued pursuant to an Option, and
to the extent that an Option covers less than one (1) share, it is
unexercisable.

         Options or portions thereof may be exercised by giving written notice
to the Company, which notice shall specify the number of shares to be purchased,
and be accompanied by payment in the amount of the aggregate exercise price for
the Common Stock so purchased, which payment shall be in the form specified in
Subsection 5(i) below. The Company shall not be obligated to issue, transfer or
deliver a certificate of Common Stock to the Holder of any Option, until
provision has been made by the Holder, to the satisfaction of the Company, for
the payment of the aggregate exercise price for all shares for which the Option
shall have been exercised and for satisfaction of any tax withholding
obligations associated with such exercise. During the lifetime of an Optionee,
Options are exercisable only by the Optionee or a transferee who takes title to
the Option in the manner permitted by Subsection 5(k) hereof.

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     (i) PAYMENT UPON EXERCISE OF OPTION.

         Upon the exercise of any Option, the aggregate exercise price shall be
paid to the Company in cash or by cashier's check. In addition, the Holder may
pay for all or any portion of the aggregate exercise price by complying with one
or more of the following alternatives:

              (1) by delivering to the Company shares of Common Stock
         previously held by such Holder, or by the Company withholding shares of
         Common Stock otherwise deliverable pursuant to exercise of the Option,
         which shares of Common Stock received or withheld shall have a fair
         market value at the date of exercise (as determined by the Plan
         Administrator) equal to the aggregate exercise price to be paid by the
         Optionee upon such exercise; or

              (2) by complying with any other payment mechanism approved by
         the Plan Administrator at the time of exercise.

     (j) RIGHTS AS A SHAREHOLDER.

         A Holder shall have no rights as a shareholder with respect to any
shares covered by an Option until such Holder becomes a record holder of such
shares, irrespective of whether such Holder has given notice of exercise.
Subject to the provisions of Subsections 5(m) and 5(n) hereof, no rights shall
accrue to a Holder and no adjustments shall be made on account of dividends
(ordinary or extraordinary, whether in cash, securities or other property) or
distributions or other rights declared on, or created in, the Common Stock for
which the record date is prior to the date the Holder becomes a record holder of
the shares of Common Stock covered by the Option, irrespective of whether such
Holder has given notice of exercise.

     (k) TRANSFER OF OPTION.

         Options granted under this Plan and the rights and privileges conferred
by this Plan may not be transferred, assigned, pledged or hypothecated in any
manner (whether by operation of law or otherwise) other than by will, by
applicable laws of descent and distribution, and shall not be subject to
execution, attachment or similar process. Upon any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of any Option or of any right or
privilege conferred by this Plan contrary to the provisions hereof, or upon the
sale, levy or any attachment or similar process upon the rights and privileges
conferred by this Plan, such Option shall thereupon terminate and become null
and void.

     (l) SECURITIES REGULATION AND TAX WITHHOLDING.

         (1)   Shares shall not be issued with respect to an Option unless
the exercise of such Option and the issuance and delivery of such shares
shall comply with all relevant provisions of law, including, without
limitation, Section 162(m) of the Code, any applicable state securities laws,
the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations thereunder and the requirements of any stock exchange or
automated inter-dealer quotation system of a registered national securities
association upon which such shares may then be listed, and such issuance
shall be further subject to the approval of counsel for the Company with
respect to such compliance, including the availability of an exemption from
registration for the issuance and sale of such shares. The inability of the
Company to obtain from any regulatory body the authority deemed by the
Company to be necessary for the lawful issuance and sale of any shares under
this Plan, or the unavailability of an exemption from registration for the
issuance and sale of any shares under this Plan, shall relieve the Company of
any liability with respect to the non-issuance or sale of such shares.

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         As a condition to the exercise of an Option, the Plan Administrator may
require the Holder to represent and warrant in writing at the time of such
exercise that the shares are being purchased only for investment and without any
then-present intention to sell or distribute such shares. At the option of the
Plan Administrator, a stop-transfer order against such shares may be placed on
the stock books and records of the Company, and a legend indicating that the
stock may not be pledged, sold or otherwise transferred unless an opinion of
counsel is provided stating that such transfer is not in violation of any
applicable law or regulation, may be stamped on the certificates representing
such shares in order to assure an exemption from registration. The Plan
Administrator also may require such other documentation as may from time to time
be necessary to comply with Federal and state securities laws.

         (2)   The Holder shall pay to the Company by certified or cashier's
check, promptly upon exercise of an Option or, if later, the date that the
amount of such obligations becomes determinable, all applicable Federal,
state, local and foreign withholding taxes that the Plan Administrator, in
its discretion, determines to result upon exercise of an Option or from a
transfer or other disposition of shares of Common Stock acquired upon
exercise of an Option or otherwise related to an Option or shares of Common
Stock acquired in connection with an Option. Upon approval of the Plan
Administrator, a Holder may satisfy such obligation by complying with one or
more of the following alternatives selected by the Plan Administrator:

               (A) by delivering to the Company shares of Common Stock
         previously held by such Holder or by the Company withholding shares of
         Common Stock otherwise deliverable pursuant to the exercise of the
         Option, which shares of Common Stock received or withheld shall have a
         fair market value at the date of exercise (as determined by the Plan
         Administrator) equal to the tax obligation to be paid by the Optionee
         upon such exercise; or

               (B) by complying with any other payment mechanism approved by
         the Plan Administrator from time to time.

         (3)   The issuance, transfer or delivery of certificates of Common
Stock pursuant to the exercise of Options may be delayed, at the discretion
of the Plan Administrator, until the Plan Administrator is satisfied that the
applicable requirements of the Federal and state securities laws and the
withholding provisions of the Code have been met.

     (m) STOCK DIVIDEND OR REORGANIZATION.

         (1)   If (i) the Company shall at any time be involved in a
transaction described in Section 424(a) of the Code (or any successor provision)
or any "corporate transaction" described in the regulations thereunder; (ii) the
Company shall declare a dividend payable in, or shall subdivide or combine, its
Common Stock or (iii) any other event with substantially the same effect shall
occur, the Plan Administrator shall, subject to applicable law, with respect to
each outstanding Option, proportionately adjust the number of shares of Common
Stock subject to such Option and/or the exercise price per share so as to
preserve the rights of the Holder substantially proportionate to the rights of
the Holder prior to such event, and to the extent that such action shall include
an increase or decrease in the number of shares of Common Stock subject to
outstanding Options, the number of shares available under Section 4 of this Plan
shall automatically be increased or decreased, as the case may be,
proportionately, without further action on the part of the Plan Administrator,
the Company, the Company's shareholders, or any Holder.

         (2)   In the event that the presently authorized capital stock
of the Company is changed into the same number of shares with a different par
value, or without par value, the stock resulting from any such change shall be
deemed to be Common Stock within the meaning of the Plan, and each Option shall
apply to the same number of shares of such new stock as it applied to old shares

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immediately prior to such change.

         (3)   If the Company shall at any time declare an extraordinary
dividend with respect to the Common Stock, whether payable in cash or other
property, the Plan Administrator may, subject to applicable law, in the
exercise of its sole discretion and with respect to each outstanding Option,
proportionately adjust the number of shares of Common Stock subject to such
Option and/or adjust the exercise price per share so as to preserve the
rights of the Holder substantially proportionate to the rights of the Holder
prior to such event, and to the extent that such action shall include an
increase or decrease in the number of shares of Common Stock subject to
outstanding Options, the number of shares available under Section 4 of this
Plan shall automatically be increased or decreased proportionately, without
further action on the part of the Plan Administrator, the Company, the
Company's shareholders, or any Holder.

         (4)   The foregoing adjustments in the shares subject to Options
shall be made by the Plan Administrator, or by any successor administrator of
this Plan, or by the applicable terms of any assumption or substitution
document.

         (5)   The grant of an Option shall not affect in any way the right
or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, to merge,
consolidate or dissolve, to liquidate or to sell or transfer all or any part
of its business or assets.

     (n) CHANGE IN CONTROL.

         (1)   If at any time there is a Change in Control (as defined below)
of the Company, all Options outstanding at the date thereof shall accelerate
and become fully vested and exercisable in full for the duration of the
Option term as of the later of the date of the Change in Control or six
months after the Date of Grant of the Option. For purposes of this
Subsection, "Change in Control" shall mean either one of the following: (i)
when any "person," as such term is used in Sections 13(d) and 14(d) of the
Exchange Act as amended (other than the Company, a subsidiary thereof or a
Company employee benefit plan, including any trustee of such plan acting as
trustee) becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the combined voting power of the
Company's then outstanding securities; or (ii) the occurrence of a
transaction requiring shareholder approval, and involving the sale of all or
substantially all of the assets of the Company or the merger of the Company
with or into another corporation.

         (2)   Except as provided in this Section 5, no Optionee or Holder
shall have rights by reason of any subdivision or consolidation of shares of
stock of any class including Common Stock or the payment of any stock
dividend on shares of Common Stock, or any other increase or decrease in the
number of shares of Common Stock, or by reason of any liquidation,
dissolution, corporate combination or division; and any issuance by the
Company of shares of stock of any class including Common Stock, or securities
convertible into shares of stock of any class including Common Stock, shall
not affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common Stock subject to any Option.

6.   ANNUAL LIMITATION ON INDIVIDUAL OPTION GRANTS.

     Except as otherwise provided in this Section 6, no person shall be
eligible to receive in any fiscal year Options to purchase more than 20,000
shares of Common Stock (the "Annual Limitation"). The Annual Limitation may
be increased to 100,000 shares of Common Stock in any fiscal year, PROVIDED
that at least 80,000 of such Options shall have an exercise price of not less
than one hundred

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twenty percent (120%) of the fair market value per share of the Common Stock
at the Date of Grant as determined by the Plan Administrator in good faith;
and, PROVIDED FURTHER, that the expiration date of at least 80,000 of such
Options shall not be later than five (5) years from the Date of Grant. The
amount of the Annual Limitation shall be subject to adjustment as set forth
in Subsection 5(m) hereof.

7.   EFFECTIVE DATE; TERM.

     The date on which this Plan is adopted (the "Effective Date") shall be
the date of ratification by the shareholders. Incentive Stock Options may be
granted by the Plan Administrator from time to time on or after the Effective
Date through the day immediately preceding the tenth anniversary of the
Effective Date. Non-Qualified Stock Options may be granted by the Plan
Administrator on or after the Effective Date and until this Plan is
terminated by the Board in its sole discretion. Termination of this Plan
shall not terminate any Option granted prior to such termination. No Option
shall be granted by the Plan Administrator prior to the approval of this Plan
by a vote of the shareholders of the Company.

8.   NO OBLIGATIONS TO EXERCISE OPTION.

     The grant of an Option shall impose no obligation upon the Optionee to
exercise such Option.

9.   NO RIGHT TO OPTIONS OR TO EMPLOYMENT.

     Whether or not any Options are to be granted under this Plan shall be
exclusively within the discretion of the Plan Administrator, and nothing
contained in this Plan shall be construed as giving any person any right to
participate under this Plan. The grant of an Option shall in no way
constitute any form of agreement or understanding binding on the Company, any
Related Company or any affiliate, express or implied, that the Company, any
Related Company or any affiliate will employ or contract with an Optionee for
any length of time, nor shall it interfere in any way with the Company's or,
where applicable, a Related Company's or affiliate's right to terminate
Optionee's employment at any time, which right is hereby reserved.

10.  APPLICATION OF FUNDS.

     The proceeds received by the Company from the sale of Common Stock
issued upon the exercise of Options shall be used to purchase and retire
Common Stock pursuant to Rule 10b-18 to the extent such transactions have
been authorized by the Board and in other cases for general corporate
purposes, unless otherwise directed by the Board.

11.  INDEMNIFICATION OF PLAN ADMINISTRATOR.

     In addition to all other rights of indemnification they may have as
members of the Board, members of the Plan Administrator shall be indemnified
by the Company for all reasonable expenses and liabilities of any type or
nature, including attorneys' fees, incurred in connection with any action,
suit or proceeding to which they or any of them are a party by reason of, or
in connection with, this Plan or any Option granted under this Plan, and
against all amounts paid by them in settlement thereof (provided that such
settlement is approved by independent legal counsel selected by the Company),
except to the extent that such expenses relate to matters for which it is
adjudged that such Plan Administrator member is liable for willful
misconduct; provided, that within fifteen (15) days after the institution of
any such action, suit or proceeding, the Plan Administrator member involved
therein shall, in writing, notify the Company of such action, suit or
proceeding, so that the Company may have the opportunity to make appropriate
arrangements to prosecute or defend the same.

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12.  AMENDMENT OF PLAN.

     The Plan Administrator may, at any time, modify, amend or terminate this
Plan or modify or amend Options granted under this Plan, including, without
limitation, such modifications or amendments as are necessary to maintain
compliance with applicable statutes, rules or regulations; PROVIDED HOWEVER,
no amendment with respect to an outstanding Option which has the effect of
reducing the benefits afforded to the Holder thereof shall be made over the
objection of such Holder. The Plan Administrator may condition the
effectiveness of any such amendment on the receipt of shareholder approval at
such time and in such manner as the Plan Administrator may consider necessary
for the Company to comply with or to avail the Company and/or the Optionees
of the benefits of any securities, tax, market listing or other
administrative or regulatory requirement. Without limiting the generality of
the foregoing, the Plan Administrator may modify grants to persons who are
eligible to receive Options under this Plan who are foreign nationals or
employed outside the United States to recognize differences in local law, tax
policy or custom.

The Effective Date of this Plan was established by vote of the shareholders of
the Company held on May 7, 1997.

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