Document:

EXHIBIT 10 (f)

                       EXECUTIVE INCOME SECURITY AGREEMENT

         AGREEMENT dated as of __________________, by and between Knight Ridder,
a Florida corporation having its principal offices at 50 W. San Fernando Street,
San Jose, California, 95113 (the "Company"), and _____________ (the
"Executive").

         The Company considers the continued services of key executives of the
Company to be in the best interests of the Company and its shareholders.

         The Company desires to assure, and has determined that it is
appropriate and in the best interests of the Company and its shareholders to
reinforce and encourage, the continued attention and dedication of key
executives of the Company to their duties of employment without personal
distraction or conflict of interest in circumstances arising from the
possibility or occurrence of a change in control of the Company.

         The Compensation Committee of the Board of Directors of the Company
(the "Committee") has authorized the Company to enter into agreements with those
key executives of the Company who are designated by the Committee, such
agreements to set forth the severance compensation which the Company agrees
under certain circumstances to pay such executives.

         The Executive is a key executive of the Company and has been designated
by the Committee as an executive to be offered such a severance compensation
agreement with the Company.

         In consideration of the premises and the covenants and agreements
contained herein, and other good and valuable consideration, the Company and the
Executive agree as follows:

         1.       CHANGE IN CONTROL OF THE COMPANY. For purposes of this
Agreement, a "Change in Control of the Company" shall be deemed to have occurred
if:

                  (a) individuals who, as of the date of this Agreement,
constitute the entire Board of Directors of the Company ("Incumbent Directors")
cease for any reason to constitute at least a majority of the Board of Directors
of the Company (the "Board"); PROVIDED, HOWEVER, that any individual becoming a
director subsequent to the date of this Agreement whose election, or nomination
for election by the Company's shareholders, was approved by a vote of at least a
majority of the then Incumbent Directors (other than any such individual whose
initial assumption of office is the result of an actual or threatened election
contest relating to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other
than the Company) shall also be an Incumbent Director;

                  (b) any merger, consolidation or reorganization of the Company
(or, if the capital stock of the Company is affected, any Subsidiary (as defined
below)) or any sale, lease, or other disposition (in one transaction or a series
of transactions contemplated or arranged by any party as a single plan) of all
or substantially all of the assets of the Company (each of the foregoing being
an "Acquisition Transaction") shall have been effected and (A) the shareholders
of the Company immediately prior to such Acquisition Transaction do not
immediately after such Acquisition Transaction beneficially own, directly or
indirectly, shares representing in the aggregate more than 65% of (I) the
then-outstanding common stock of the corporation surviving or resulting from
such merger, consolidation or recapitalization or acquisition of such assets of
the Company, as the case may be (the "Surviving Corporation") (or of its
ultimate parent corporation, if any) and (II) the Combined Voting Power (as
defined below) of the then outstanding Voting Securities (as defined below) of
the Surviving Corporation (or of its ultimate parent corporation, if any); (B)
the Incumbent Directors at the time of the initial approval of such Acquisition
Transaction do not immediately after such Acquisition Transaction constitute a
majority of the Board of Directors of the Surviving Corporation (or of its
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ultimate parent corporation, if any); or (C) any Person (including any
corporation resulting from such Acquisition Transaction and any employee benefit
plan (or related trust) of such corporation) beneficially owns, directly or
indirectly, 20% or more of either (i) the then-outstanding shares of common
stock of the corporation resulting from such Acquisition Transaction or (ii) the
Combined Voting Power of all then-outstanding Voting Securities of the Surviving
Corporation except to the extent that such ownership existed prior to the
Acquisition Transaction; or

                  (c) the shareholders of the Company shall approve any plan or
proposal for the liquidation or dissolution of the Company; or

                  (d) any Person (as defined below) shall become the beneficial
owner (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of
1934, as amended (the "Exchange Act")), directly or indirectly, of securities of
the Company representing in the aggregate 20% or more of either (i) the then
outstanding shares of Company Common Stock ("Common Stock"), or (ii) the
Combined Voting Power of all then outstanding Voting Securities of the Company;
PROVIDED, HOWEVER, that notwithstanding the foregoing, a Change in Control of
the Company shall not be deemed to have occurred for purposes of this clause (d)
solely as the result of:

                           (A) an acquisition of securities by the Company
         which, by reducing the number of shares of Common Stock or other Voting
         Securities outstanding, increases (I) the proportionate number of
         shares of Common Stock beneficially owned by any Person to 20% or more
         of the shares of Common Stock then outstanding or (II) the
         proportionate voting power represented by the Voting Securities
         beneficially owned by any Person to 20% or more of the Combined Voting
         Power of all then outstanding Voting Securities; or

                           (B) an acquisition of securities directly from the
         Company, except that this subsection (B) shall not apply to:

                                    (I)  any conversion or exercise of a
                           security that was not acquired directly from the
                           Company; or

                                    (II) any acquisition of securities if the
                           Incumbent Directors at the time of the initial
                           approval of such acquisition would not immediately
                           after (or otherwise as a result of) such acquisition
                           constitute a majority of the Board;

         PROVIDED, HOWEVER, that if any Person referred to in subsections (A) or
         (B) of this clause (d) shall thereafter become the beneficial owner of
         any additional shares of Company Common Stock or other Voting
         Securities of the Company (other than pursuant to a stock split, stock
         dividend or similar transaction or an acquisition exempt under such
         subsection (B)), then a Change in Control of the Company shall be
         deemed to have occurred for purposes of this clause (d).

                  (e) Notwithstanding anything contained in this Agreement to
the contrary, if the Executive's employment is terminated prior to a Change in
Control of the Company and the Executive reasonably demonstrates that such
termination (i) was at the request of a Third Party (as defined below) or (ii)
otherwise occurred in connection with or in anticipation of a Change in Control
of the Company, then for all purposes of the Agreement, the date of such Change
in Control of the Company shall mean the date immediately prior to the date of
such termination of the Executive's employment.

                  (f) For purposes of this Agreement:

                           (i)   "Person" shall mean any individual, entity
         (including, without limitation, any corporation, partnership, trust,
         joint venture, association or governmental body and any successor to
         any such entity) or group (as defined in Sections 13(d)(3) or 14(d)(2)
         of the Exchange Act and the rules and regulations thereunder);
         PROVIDED, HOWEVER, that Person shall not include the Executive, the
         Company, any of its Subsidiaries, any employee benefit plan (or related
         trust) of the Company or its Subsidiaries or any entity organized,

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         appointed or established by the Executive, the Company or any of its
         Subsidiaries for or pursuant to the terms of any such plan, or any of
         their affiliates;

                           (ii)  "Voting Securities" shall mean all securities
         of a corporation having the right under ordinary circumstances to vote
         in an election of the board of directors of such corporation; and

                           (iii) "Combined Voting Power" shall mean the
         aggregate votes entitled to be cast generally in the election of
         directors of a corporation by holders of then outstanding Voting
         Securities of such corporation.

                           (iv)  "Third Party" shall mean a third party who has
         indicated an intention, or taken steps reasonably calculated, to effect
         a Change in Control of the Company.

         2.       TERMINATION FOLLOWING CHANGE IN CONTROL OF THE COMPANY.

                  (a) GENERAL. If a Change in Control of the Company shall have
occurred while the Executive is an employee of the Company, the Executive shall
be entitled to the compensation provided in Section 3 hereof upon the subsequent
termination of the Executive's employment with the Company at any time during
the Term (as defined below) of this Agreement, whether such termination is
effected by the Executive or by the Company, unless such termination occurs as a
result of (i) the Executive's death, (ii) the Executive's Disability (as defined
below), (iii) the Executive's Retirement (as defined below), (iv) the
termination by the Company of the employment of the Executive for Cause (as
defined below), or (v) the termination by the Executive of his employment other
than for Good Reason (as defined below).

                  (b) DISABILITY. For purposes of this Agreement, "Disability"
shall mean a physical or mental infirmity which has rendered the Executive
unable to substantially perform his or her duties (such term to include
performance of the Executive's part-time duties if the Executive is employed on
a part-time basis) with the Company for a period of 180 consecutive days, unless
within 30 days after the date a Notice of Termination (as defined below) is
given by the Company after an absence for such period the Executive shall have
returned to the full-time performance of such duties.

                  (c) RETIREMENT. For purposes of this Agreement, "Retirement"
shall mean termination, whether by the Company or by the Executive, of the
Executive's employment with the Company on or after the Executive's early
retirement date or normal retirement date, as the case may be, under the
Company's retirement policy then generally applicable to its salaried employees
or in accordance with any retirement plan or arrangement with respect to the
Executive established by the Company with the Executive's consent.

                  (d) CAUSE. For purposes of this Agreement, the Company shall
have "Cause" to terminate the Executive's employment only if the Executive (i)
has willfully engaged in illegal conduct or gross misconduct which is materially
and demonstrably injurious to the Company, (ii) has engaged in fraud,
misappropriation, embezzlement or any other act or acts of dishonesty resulting
or intended to result directly or indirectly in a substantial gain or personal
enrichment to the Executive at the expense of the Company, or (iii) has
willfully and continually failed substantially to perform his or her duties with
the Company (other than a failure resulting from the Executive's incapacity due
to physical or mental illness), which failure has continued for a period of at
least 30 days after a written notice of demand for substantial performance has
been delivered to the Executive specifying in reasonable detail the manner in
which the Executive has failed to substantially perform. Notwithstanding the
foregoing, the Executive shall not be deemed to have been terminated for Cause
unless and until there shall have been delivered to the Executive a copy of a
resolution (x) duly adopted by three-quarters (3/4) of the entire membership of
the Committee, or of the Board, at a meeting called and held for such purpose
after reasonable notice to the Executive and an opportunity for the Executive,
together with the Executive's counsel, to be heard before the Committee or the
Board, as the case may be, and (y) finding that in the good faith opinion of the
Committee or the Board, as the case may be, the Executive was guilty of conduct
described in the first sentence of this Section 2(d) and specifying the
particulars of such conduct in detail. For purposes of this provision, no act or
failure to act, on the part of the Executive, shall be considered "willful"
unless it is done, or omitted to be done, by the Executive in bad faith or

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without reasonable belief that the Executive's action or omission was in the
best interests of the Company. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board, or, for any Executive
other than the Chief Executive Officer of the Company, upon the instructions of
the Chief Executive Officer of the Company, or based upon the advice of counsel
for the Company, shall be conclusively presumed to be done, or omitted to be
done, by the Executive in good faith and in the best interests of the Company.

                  (e) GOOD REASON. For purposes of this Agreement, "Good Reason"
shall mean the occurrence after a Change in Control of the Company of any of the
following without the Executive's express written consent.

                           (i)    The assignment to the Executive by the Company
         of duties or responsibilities inconsistent in some material respect
         with the Executive's title, position, duties, responsibilities and
         status with the Company immediately prior to a Change in Control of the
         Company, or a change in the Executive's titles or offices with the
         Company from those held by the Executive immediately prior to a Change
         in Control of the Company, excluding for these purposes an isolated,
         insubstantial and inadvertent action not taken in bad faith and which
         is remedied by the Company promptly after receipt of notice thereof
         given by the Executive, or any removal of the Executive from or any
         failure to reelect or reappoint the Executive to any of such positions
         except in connection with the termination of the Executive's employment
         as a result of the Executive's death, Disability or Retirement, by the
         Company for Cause or by the Executive other than for Good Reason;

                           (ii)   Any reduction by the Company in the
         Executive's base salary as in effect on the date hereof or as such base
         salary may be increased from time to time during the Term of this
         Agreement or any failure to pay the Executive any compensation or
         benefits to which he is entitled within five days of the date due;

                           (iii)  Any failure by the Company either to continue
         in effect any benefit plan or arrangement (including, without
         limitation, the Company's Employees Stock Purchase Plan, Section 401(k)
         plan, Retirement Plan for Employees, Retirement Benefit Restoration
         Plan, or substitute plans adopted by the Company prior to a Change in
         Control of the Company, group life insurance plan and medical, dental,
         accident and disability plans) in which the Executive shall be
         participating at the time of a Change in Control of the Company or to
         provide other plans or arrangements providing the Executive with
         substantially similar benefits, or the taking by the Company of any
         action which would directly or indirectly materially adversely affect
         the Executive's participation in or materially reduce the Executive's
         benefits under any such benefit plan or arrangement or deprive the
         Executive of any material fringe benefit enjoyed by the Executive at
         the time of a Change in Control of the Company.

                           (iv)   Any failure by the Company either to continue
         in effect any incentive or compensation plan or arrangement (including,
         without limitation, the Company's Incentive Compensation Plan and
         Employee Stock Option Plan, or substitute plans adopted by the Company
         prior to a Change in Control of the Company) in which the Executive
         shall be participating at the time of a Change in Control of the
         Company, or to provide other plans or arrangements providing the
         Executive with substantially similar benefit levels and/or reward
         opportunities, or the taking by the Company of any action which would
         directly or indirectly materially adversely affect the Executive's
         participation (including the level of the Executive's participation
         relative to other participants and the terms of benefit levels and/or
         reward opportunities) or materially reduce the Executive's benefits
         under any such plan or arrangement;

                           (v)    Any relocation of the Executive's base of
         employment to a location more than 20 miles away from the location at
         which the Executive performed the Executive's duties of employment
         prior to a Change in Control of the Company, except for required travel
         by the Executive on business of the Company to an extent substantially
         consistent with the Executive's business travel obligations at the time
         of a Change in Control of the Company;

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                           (vi)   Any failure by the Company to provide the
         Executive with the number of paid vacation days per year to which the
         Executive is entitled at the time of a Change in Control of the
         Company;

                           (vii)  Any material breach by the Company of any
         provision of this Agreement;

                           (viii) Any failure by the Company to obtain from any
         successor to the Company a satisfactory agreement to assume and perform
         this Agreement, as contemplated by Section 8(a) hereof;

                           (ix)   The insolvency or the filing (by any party,
         including the Company) of a petition for bankruptcy of the Company,
         which petition is not dismissed within sixty days; and

                           (x)    Any purported termination of the Executive's
         employment by the Company, other than as a result of the Executive's
         death, which is not effected pursuant to a Notice of Termination
         satisfying the requirements of Section 2(f) hereof (and, if applicable,
         Section 2(d) hereof).

Any event or condition described in subsections (i) through (x) above which
occurs prior to a Change in Control of the Company but which the Executive
reasonably demonstrates (A) was at the request of a Third Party, or (B)
otherwise arose in connection with, or in anticipation of, a Change in Control
of the Company, shall constitute Good Reason for purposes of this Agreement,
notwithstanding that it occurred prior to the Change in Control of the Company.

                  (f) NOTICE OF TERMINATION. Any purported termination of the
Executive's employment with the Company other than as a result of the
Executive's death shall be communicated by a Notice of Termination to the
Executive, if such termination is by the Company, or to the Company, if such
termination is by the Executive. For purposes of this Agreement, "Notice of
Termination" shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated. For
purposes of this Agreement, no purported termination of the Executive's
employment with the Company other than as a result of the Executive's death
shall be effective without such a Notice of Termination having been given.

                  (g) DATE OF TERMINATION. For purposes of this Agreement, "Date
of Termination" shall mean: (i) if the Executive's employment by the Company is
terminated by the Company for Disability, the thirtieth day after the date on
which the Notice of Termination is given, provided that the Executive shall not
have returned to the full-time performance of the Executive's duties of
employment during such 30-day period; (ii) if the Executive's employment by the
Company is terminated by the Executive for Good Reason, such date as shall be
specified in the Notice of Termination (which date shall not be fewer than 20
nor more than 60 days after the date on which the Notice of Termination is
given); or (iii) if the Executive's employment by the Company is terminated for
any other reason, the twentieth day after the date on which the Notice of
Termination is given.

         3.       COMPENSATION UPON TERMINATION AFTER A CHANGE IN CONTROL OF THE
                  COMPANY.

                  (a) If after a Change in Control of the Company the
Executive's employment by the Company shall terminate at any time during the
Term of this Agreement for any reason other than (a) the Executive's death, (b)
the Executive's Disability, (c) the Executive's Retirement, (d) the termination
by the Company of the Executive's employment for Cause, or (e) the termination
by the Executive of his employment other than for Good Reason, then not later
than the fifth business day following the Date of Termination, the Company shall
(subject only to any applicable payroll and other taxes required to be withheld)
pay or cause to be paid to the Executive a lump sum cash payment (the "Severance
Payment") equal to three times the greater of (i) the sum of the salary and cash
bonus payable to the Executive for the last full calendar year preceding the
Severance Payment or (ii) the sum of the Executive's annualized salary and the
maximum cash bonus the Executive could have earned for the then current calendar
year.

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                  (b) THREE YEARS OF LIFE INSURANCE AND HEALTH PLAN COVERAGE.
The coverage described in this subsection (b) shall be provided for a
"Continuation Period" beginning on the Date of Termination and ending on the
earlier of (1) the third anniversary of the Date of Termination or (2) the date
of the Executive's death. During the Continuation Period, the Executive (and,
where applicable, the Executive's dependents) shall be entitled to continue
participation in the group term life insurance plan and in the health care plan
for Executives maintained by the Company as if the Executive were still an
Executive of the Company. The coverage provided under this subsection (b) shall
run concurrently with and shall be offset against any continuation coverage
under Part 6 of Title I of the Employee Retirement Income Security Act of 1974,
as amended. Where applicable, the Executive's compensation for purposes of such
plans shall be deemed to be equal to the Executive's compensation (as defined in
such plans) in effect on the Date of Termination. To the extent that the Company
finds it undesirable to cover the Executive under the group life insurance and
health plans of the Company, the Company shall provide the Executive (at its own
expense) with the same level of coverage under individual policies.

                  (c) ACCELERATED VESTING. All stock and stock options issued or
granted to the Executive shall vest according to the provisions of the
Knight-Ridder, Inc. Employee Stock Option Plan.

         4.       ADDITIONAL PAYMENTS.

                  (a) In the event that any payment or benefit (within the
meaning of Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended
(the "Code")), to the Executive or for his or her benefit paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise in connection with, or arising out of, his or her employment (a
"Payment" or "Payments"), would be subject to the excise tax imposed by Section
4999 of the Code or any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the "Excise Tax"), then
the Executive will be entitled to receive from the Company an additional payment
(a "Gross-Up Payment") in an amount such that after payment by the Executive of
all taxes (including any interest or penalties, other than interest and
penalties imposed by reason of the Executive's failure to file timely a tax
return or pay taxes shown due on his or her return), imposed with respect to
such Gross-Up Payment, including any Excise Tax imposed upon the Gross-Up
Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.

                  (b) An initial determination as to whether a Gross-Up Payment
is required pursuant to this Agreement and the amount of such Gross-Up Payment
shall be made at the Company's expense by an accounting firm selected by the
Company and reasonably acceptable to the Executive which is designated as one of
the five largest accounting firms in the United States (the "Accounting Firm").
The Accounting Firm shall provide its determination (the "Determination"),
together with detailed supporting calculations and documentation, to the Company
and the Executive within five days of the Date of Termination if applicable, or
such other time as requested by the Company or by the Executive (provided the
Executive reasonably believes that any of the Payments may be subject to the
Excise Tax) and if the Accounting Firm determines that no Excise Tax is payable
by the Executive with respect to a Payment or Payments, it shall furnish the
Executive with an opinion reasonably acceptable to the Executive that no Excise
Tax will be imposed with respect to any such Payment or Payments. Within ten
days of the delivery of the Determination to the Executive, the Executive shall
have the right to dispute the Determination (the "Dispute"). The Gross-Up
Payment, if any, as determined pursuant to this Section 4(b) shall be paid by
the Company to the Executive within five days of the receipt of the
Determination. The existence of the Dispute shall not in any way affect the
Executive's right to receive the Gross-Up Payment in accordance with the
Determination. If there is no Dispute, the Determination shall be binding, final
and conclusive upon the Company and the Executive subject to the application of
Section 4(c) below.

                  (c) As a result of the uncertainty in the application of
Sections 4999 and 280G of the Code, it is possible that a Gross-Up Payment (or a
portion thereof) will be paid which should not have been paid (an "Excess
Payment") or a Gross-Up Payment (or a portion thereof) which should have been
paid will not have been paid (an "Underpayment"). An Underpayment shall be
deemed to have occurred (i) upon notice (formal or informal) to the Executive
from any governmental taxing authority that the Executive's tax liability
(whether in respect of the Executive's current taxable year or in respect of any
prior taxable year) may be increased by reason of the imposition of the Excise

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Tax on a Payment or Payments with respect to which the Company has failed to
make a sufficient Gross-Up Payment, (ii) upon a determination by a court, (iii)
by reason of determination by the Company (which shall include the position
taken by the Company, together with its consolidated group, on its federal
income tax return) or (iv) upon the resolution of the Dispute to the Executive's
satisfaction. If an Underpayment occurs, the Executive shall promptly notify the
Company and the Company shall promptly, but in any event, at least five days
prior to the date on which the applicable government taxing authority has
requested payment, pay to the Executive an additional Gross-Up Payment equal to
the amount of the Underpayment plus any interest and penalties (other than
interest and penalties imposed by reason of the Executive's failure to file
timely a tax return or pay taxes shown due on the Executive's return) imposed on
the Underpayment. An Excess Payment shall be deemed to have occurred upon a
Final Determination (as hereinafter defined) that the Excise Tax shall not be
imposed upon a Payment or Payments (or portion thereof) with respect to which
the Executive had previously received a Gross-Up Payment. A Final Determination
shall be deemed to have occurred when the Executive has received from the
applicable government taxing authority a refund of taxes or other reduction in
the Executive's tax liability by reason of the Excise Payment and upon either
(x) the date a determination is made by, or an agreement is entered into with,
the applicable governmental taxing authority which finally and conclusively
binds the Executive and such taxing authority, or in the event that a claim is
brought before a court of competent jurisdiction, the date upon which a final
determination has been made by such court and either all appeals have been taken
and finally resolved or the time for all appeals has expired or (y) the statute
of limitations with respect to the Executive's applicable tax return has
expired. If an Excess Payment is determined to have been made, the amount of the
Excess Payment shall be treated as a loan by the Company to the Executive and
the Executive shall pay to the Company on demand (but not less than 10 days
after the determination of such Excess Payment and written notice has been
delivered to the Executive) the amount of the Excess Payment plus interest at an
annual rate equal to the Applicable Federal Rate provided for in Section 1274(d)
of the Code from the date the Gross-Up Payment (to which the Excess Payment
relates) was paid to the Executive until the date of repayment to the Company.

                  (d) Notwithstanding anything contained in this Agreement to
the contrary, in the event that, according to the Determination, an Excise Tax
will be imposed on any Payment or Payments, the Company shall pay to the
applicable government taxing authorities as Excise Tax withholding, the amount
of the Excise Tax that the Company has actually withheld from the Payment or
Payments.

         5.       NO MITIGATION; OBLIGATIONS ABSOLUTE; NO EFFECT ON OTHER RIGHTS

                  (a) The Executive shall not be required to mitigate the amount
of any payment provided for in Section 3 hereof by seeking other employment or
otherwise; nor shall the amount of any payment or benefits provided for in
Section 3 hereof be reduced by any compensation or benefits earned by the
Executive as the result of employment by another employer, or by retirement
benefits, after the effective date of termination of the Executive's employment
with the Company or otherwise.

                  (b) The obligations of the Company to make the payments to the
Executive, and to make the arrangements provided for herein shall be absolute
and unconditional and shall not be reduced by any circumstances, including
without limitation any setoff, counterclaim, recoupment, defense or other right
which the Company may have against the Executive or any third party at any time.

                  (c) The provisions of this Agreement, and any payment provided
for herein, shall not supersede or in any way limit the rights, benefits, duties
or obligations which the Executive may now or in the future have under any
benefit, incentive or other plan or arrangement of the Company or any other
agreement with the Company.

                  (d) Except as required by law, no right to receive payments
under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to effect any such action shall be null, void
and of no effect.

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         6.       NOT AN EMPLOYMENT AGREEMENT. This Agreement is not, and
nothing herein shall be deemed to create, a contract of employment between the
Executive and the Company. The Company may terminate the employment of the
Executive by the Company at any time, subject to the terms of any employment
agreement between the Company and the Executive that may then be in effect.

         7.       TERM OF AGREEMENT. The term of this Agreement (the "Term")
shall commence on the date hereof and shall continue through the third following
December 31st; PROVIDED, HOWEVER, that commencing on the first December 31st
after the date hereof, and on each anniversary of such first December 31st (such
date and each anniversary thereof shall be hereinafter referred to as the
"Renewal Date"), unless previously terminated, the Agreement shall be
automatically extended so as to terminate three years from such Renewal Date,
unless at 60 days prior to the Renewal Date the Company shall give Notice to the
Executive that the Term will not be extended. Notwithstanding any such notice
not to extend the Term, if a Change in Control of the Company shall have
occurred during the original or extended Term of this Agreement, this Agreement
shall continue in effect for a period of not less than 36 months beyond the date
of such Change in Control of the Company.

         8.       SUCCESSORS; BINDING AGREEMENT; ASSIGNMENT

                  (a) This Agreement shall be binding upon and shall inure to
the benefit of the Company, its successors and assigns. Neither this Agreement
nor any right or interest hereunder shall be assignable or transferable by the
Company other than to a successor. The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business or assets of the Company, by agreement
in form and substance reasonably satisfactory to the Executive, expressly,
absolutely and unconditionally to assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. As used in this Agreement,
"Company" shall mean (i) the Company as hereinbefore defined, and (ii) any
successor to all or substantially all of the Company's business or assets which
executes and delivers an agreement provided for in this Section 8(a) or which
otherwise become bound by all the terms and provisions of this Agreement by
operation of law.

                  (b) This Agreement shall inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive should die while any amount would be payable to the Executive
hereunder if the Executive had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive's devisee, legatee or other designee or, if there be
no such designee, to the Executive's estate. Neither this Agreement nor any
right or interest arising hereunder may be assigned or transferred by the
Executive or his or her heirs, beneficiaries or legal representatives. In the
event of the Executive's death or a judicial determination of his or her
incompetence, reference in this Agreement to the Executive shall be deemed,
where appropriate, to refer to the Executive's executor, heirs or other legal
representative.

         9.       NOTICES. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or when mailed by
United States certified or registered mail, return receipt requested, postage
prepaid, addressed to (i) the respective addresses set forth in this Agreement,
provided that all notices to the Company shall be directed to the attention of
the Committee with a copy directed to the Secretary of the Company, or (ii) such
other address for a party as such party may have furnished to the other in
writing in accordance with this Section 9; except that notices of change of
address shall be effective only upon receipt.

         10.      CONFIDENTIALITY. The Executive shall retain in confidence any
and all confidential information concerning the Company or any of its
Subsidiaries and their respective businesses which is now or hereafter becomes
known to the Executive, except information (i) ascertainable or obtained from
public information, (ii) received by the Executive at any time after the
Executive's employment by the Company shall have terminated from a third party
not employed by or otherwise affiliated with the Company or under an obligation
to the Company to maintain the confidentiality of that information, or (iii)
which is or becomes known to the public by any means other than a breach of this
Section 10.

                                       8
<PAGE>

         11.      SUBSIDIARY. For purposes of this Agreement, "Subsidiary" shall
mean any corporation, partnership or other entity, at least 50% of the
outstanding voting power for the election of directors or other management is
then owned, directly or indirectly, by the Company or another Subsidiary of the
Company.

         12.      MODIFICATION; WAIVER OR DISCHARGE. No provision of this
Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in a writing signed by the Executive and the Company.
No waiver by either party at any time of any breach by the other party of, or of
compliance by the other party with, any condition or provision of this Agreement
to be performed or complied with by such other party shall be deemed a waiver of
any similar or dissimilar provision or condition of this Agreement or any other
breach of or failure to comply with the same condition or provision at the same
time or at any prior or subsequent time. No agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not expressly set forth in this Agreement.

         13.      GOVERNING LAW. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Florida without giving effect to its conflict of laws rules.

         14.      HEADINGS OF NO EFFECT. The Section headings contained in this
Agreement are included solely for convenience of reference and shall not in any
way affect the meaning or interpretation of any of the provisions of this
Agreement.

         15.      FEES AND EXPENSES. The Company shall pay all legal fees and
related expenses (including the costs of experts, evidence and counsel) incurred
by the Executive as they become due as a result of (i) termination of the
Executive's employment after a Change in Control of the Company (including all
such fees and expenses, if any, incurred in contesting or disputing any such
termination of employment), (ii) the Executive seeking to obtain or enforce any
right or benefit provided by (x) this Agreement (including, but not limited to,
any such fees and expenses incurred in connection with the dispute) or (y) any
other plan or arrangement maintained by the Company under which the Executive is
or may be entitled to receive benefits, and (iii) the Executive's hearing before
the Board as contemplated by the definition of Cause.

         16.      DISPUTE CONCERNING TERMINATION.

                  (a) If within 20 days after any Notice of Termination is given
or, if later, prior to the Date of Termination (as determined without regard to
this Section 16(a)), the party receiving such Notice of Termination notifies the
other party that a dispute exists concerning the termination, the Date of
Termination shall be the date on which the dispute is finally resolved, either
by mutual written agreement of the parties or by a final judgment, order or
decree of a court of competent jurisdiction (which is not appealable or with
respect to which the time of appeal therefrom has expired and no appeal has been
perfected); PROVIDED that the Date of Termination shall be extended by a notice
of dispute only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence.

                  (b) In the event of any dispute between the Company and the
Executive with respect to the subject matter of this Agreement and the
enforcement of rights hereunder, the Executive may, in his or her sole
discretion by notice to the Company, require such dispute or difference to be
submitted to arbitration. The arbitrator or arbitrators shall be selected by
agreement of the parties or, if they cannot agree on an arbitrator or
arbitrators within 30 days after the Executive has notified the Company of the
submission of the question for settlement by arbitration, then the arbitrator or
arbitrators shall be selected by the American Arbitration Association (the
"AAA") in San Jose, California, upon the application of the Executive. The
determination reached in such arbitration shall be final and binding on both
parties without any right of appeal or further dispute. Execution of the
determination by such arbitrator may be sought in any court of competent
jurisdiction. The arbitrators shall not be bound by judicial formalities and may
abstain from following the strict rules of evidence and shall interpret this
Agreement as an honorable engagement and not merely as a legal obligation.
Unless otherwise agreed by the parties, any such arbitration shall take place in
San Jose, California, and shall be conducted in accordance with the Rules of
AAA. The Company shall pay all costs of the arbitration.

                                       9
<PAGE>

                  (c) If a purported termination occurs following a Change in
Control of the Company and during the Term of this Agreement, and such
termination is disputed in accordance with Section 16(a) , the Company shall
continue to pay the Executive the full compensation in effect when the notice
giving rise to the dispute was given (including, but not limited to, salary) and
continue the Executive as a participant in all compensation, benefit and
insurance plans in which the Executive was participating when the notice giving
rise to the dispute was given, until the dispute is finally resolved in
accordance with Section 16(a). Amounts paid under this Section 16(c) are in
addition to all other amounts due under this Agreement and shall not be offset
against or reduce any other amounts due under this Agreement.

         17.      SEVERABILITY. If any one or more of the provisions of this
Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not be affected thereby. To the extent permitted by applicable law, each party
hereto waives any provision of law which renders any provision of this Agreement
invalid, illegal or unenforceable in any respect.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

                                       KNIGHT-RIDDER, INC.

                                       By: /s/ P. ANTHONY RIDDER
                                           -------------------------------------
                                           P. Anthony Ridder
                                           Chairman and Chief Executive Officer

                                           -------------------------------------
                                           [Name of Executive]
                                           [Address]

                                       10
<PAGE>
<TABLE>
<CAPTION>

SCHEDULE II

                                                         VALUATION AND QUALIFYING ACCOUNTS
                                                       KNIGHT-RIDDER, INC. AND SUBSIDIARIES
                                                             (IN THOUSANDS OF DOLLARS)

 COLUMN A                                    COLUMN B                 COLUMN C               COLUMN D        COLUMN E
----------                                  ----------      ---------------------------     ----------      ----------
                                                                     ADDITIONS
                                                            --------------------------
                                            BALANCE AT       CHARGED         CHARGED
                                            BEGINNING        TO COSTS           TO                           BALANCE
DESCRIPTION                                     OF             AND            OTHER                          AT END
                                              PERIOD         EXPENSES        ACCOUNTS       DEDUCTIONS      OF PERIOD
                                            ----------      ----------      ----------      ----------      ----------
<S>                                         <C>             <C>             <C>             <C>             <C>
YEAR ENDED DECEMBER 31, 2000:

    RESERVES AND ALLOWANCES
       DEDUCTED FROM ASSET ACCOUNT:
            ACCOUNTS RECEIVABLE
                  ALLOWANCES                $   15,917      $   27,070                      $   22,749 (2)  $   20,238
                                            ----------      ----------      ----------      ----------      ----------
                                            $   15,917      $   27,070      $        0      $   22,749      $   20,238
                                            ==========      ==========      ==========      ==========      ==========

YEAR ENDED DECEMBER 26, 1999:

    RESERVES AND ALLOWANCES
       DEDUCTED FROM ASSET ACCOUNT:
            ACCOUNTS RECEIVABLE
                  ALLOWANCES                $   15,738      $   25,135                      $   24,956 (2)  $   15,917
                                            ----------      ----------      ----------      ----------      ----------
                                            $   15,738      $   25,135      $        0      $   24,956      $   15,917
                                            ==========      ==========      ==========      ==========      ==========
YEAR ENDED DECEMBER 27, 1998:

    RESERVES AND ALLOWANCES
       DEDUCTED FROM ASSET ACCOUNT:
            ACCOUNTS RECEIVABLE
                  ALLOWANCES                $   14,963      $   20,854              (9)(1)  $   20,070 (2)  $   15,738
                                            ----------      ----------      ----------      ----------      ----------
                                            $   14,963      $   20,854             ($9)     $   20,070      $   15,738
                                            ==========      ==========      ==========      ==========      ==========
</TABLE>

(1)    Represents amounts from the former BIS division included under "Income
       (loss) from discontinued BIS operations" in the Consolidated Statement of
       Income.

(2)    Represents uncollectible accounts written-off, net of recoveries, and
       dispositions of subsidiaries' balances.Exhibit 10.1

                               SYNERGY 2000, INC.
                            2000 INCENTIVE STOCK PLAN

              (adopted by Board of Directors on December 21, 2000)
                    (adopted by Stockholders on ___________ )

         1. Purposes of the Plan. The purposes of this 2000 Stock Incentive Plan
are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees and
Consultants of the Company and its Subsidiaries and to promote the success of
the Company's business. Options granted under the Plan may be Incentive Stock
Options (as defined under Section 422 of the Code) or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant of an Option
and subject to the applicable provisions of Section 422 of the Code, as amended,
and the regulations promulgated thereunder. Stock purchase rights may also be
granted under the Plan.

         2. Definitions. As used herein, the following definitions shall apply:

                  (a) "Administrator" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

                  (b) "Affiliate" means an entity other than a Subsidiary (as
defined below) in which the Company owns an equity interest.

                  (c) "Applicable Laws" means the legal requirements relating to
the administration of stock option and restricted stock purchase plans under
applicable U.S. state corporate laws, U.S. federal and applicable state
securities laws, the Code, any stock exchange rules or regulations and the
applicable laws of any other country or jurisdiction where Options or Stock
Purchase Rights are granted under the Plan, as such laws, rules, regulations and
requirements shall be in place from time to time.

                  (d) "Board" means the Board of Directors of the Company.

                  (e) "Change in Control" means a sale of all or substantially
all of the Company's assets, or a merger, consolidation or other capital
reorganization of the Company with or into another corporation; PROVIDED,
HOWEVER, that a merger, consolidation or other capital reorganization in which
the holders of more than 50% of the shares of capital stock of the Company
outstanding immediately prior to such transaction continue to hold (either by
the voting securities remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50% of the total voting power
represented by the voting securities of the Company, or such surviving entity,
outstanding immediately after such transaction shall not constitute a Change in
Control.

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

                  (g) "Committee" means the Committee appointed by the Board of
Directors in accordance with Section 4(a) and (b) of the Plan.

                  (h) "Common Stock" means the Common Stock of the Company.

                  (i) "Company" means Synergy 2000, Inc., a Delaware
corporation.

                  (j) "Consultant" means any person, including an advisor, who
renders services to the Company, or any Parent, Subsidiary or Affiliate, and is
compensated for such services, and any director of the Company whether
compensated for such services or not.

                                       8

<PAGE>

                  (k) "Continuous Status as an Employee or Consultant" means the
absence of any interruption or termination of service as an Employee or
Consultant. Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case of: (i) sick leave; (ii) military leave;
(iii) any other leave of absence approved by the Administrator, provided that
such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to Company policy adopted from time to time; or (iv)
in the case of transfers between locations of the Company or between the
Company, its Parent(s), Subsidiaries, Affiliates or their respective successors.
For purposes of this Plan, a change in status from an Employee to a Consultant
or from a Consultant to an Employee will not constitute an interruption of
Continuous Status as an Employee or Consultant.

                  (l) "Director" means a member of the Board.

                  (m) "Employee" means any person (including if appropriate, any
Named Executive, Officer or Director) employed by the Company or any Parent,
Subsidiary or Affiliate of the Company, with the status of employment determined
based upon such minimum number of hours or periods worked as shall be determined
by the Administrator in its discretion, subject to any requirements of the Code.
The payment by the Company of a director's fee to a director shall not be
sufficient to constitute "employment" of such director by the Company.

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

                  (o) "Fair Market Value" means, as of any date, the fair market
value of Common Stock determined as follows:

                           (i) If the Common Stock is listed on any established
stock exchange or an automated quotation system or bulletin board, including
without limitation, the National Market of the National Association of
Securities Dealers, Inc. Automated Quotation ("Nasdaq") System, the Nasdaq
SmallCap Market, OTC Electronic Bulletin Board, The New York Stock Exchange,
Inc., or The American Stock Exchange, Inc., its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported), as quoted on such system or exchange, or the exchange with the
greatest volume of trading in Common Stock for the last market trading day prior
to the time of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

                           (ii) If the Common Stock is quoted on the Nasdaq
System (but not on the National Market thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high bid and low asked prices for the
Common Stock for the last market trading day prior to the time of determination,
as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; or

                           (iii) In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Administrator.

                  (p) "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code, as designated in the applicable written Option Agreement.

                  (q) "Listed Security" means any security of the Company that
is listed or approved for listing on a national securities exchange or
designated or approved for designation as a national market system security on
an interdealer quotation system by the National Association of Securities
Dealers, Inc.

                  (r) "Named Executive" means any individual who, on the last
day of the Company's fiscal year, is the chief executive officer of the Company
(or is acting in such capacity) or among the four most highly compensated
officers of the Company (other than the chief executive officer). Such officer
status shall be determined pursuant to the executive compensation disclosure
rules under the Exchange Act.

                  (s) "Nonstatutory Stock Option" means an Option not intended
to qualify as an Incentive Stock Option, as designated in the applicable written
Option Agreement.

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

                                       9

<PAGE>

                  (u) "Option" means a stock option granted pursuant to the
Plan.

                  (v) "Option Agreement" means a written agreement between an
Optionee and the Company reflecting the terms of an Option granted under the
Plan and includes any documents attached to such Option Agreement, including,
but not limited to, a notice of stock option grant and a form of exercise
notice.

                  (w) "Option Exchange Program" means a program whereby
outstanding Options are exchanged for Options with a lower exercise price.

                  (x) "Optioned Stock" means the Common Stock subject to an
Option or a Stock Purchase Right.

                  (y) "Optionee" means an Employee or Consultant who receives an
Option or a Stock Purchase Right.

                  (z) "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code, or any successor
provision.

                  (aa) "Plan" means this 2000 Incentive Stock Plan.

                  (bb) "Reporting Person" means an Officer, Director, or greater
than 10% stockholder of the Company within the meaning of Rule 16a-2 under the
Exchange Act, who is required to file reports pursuant to Rule 16a-3 under the
Exchange Act.

                  (cc) "Restricted Stock" means shares of Common Stock acquired
pursuant to a grant of a Stock Purchase Right under Section 11 below.

                  (dd) "Restricted Stock Purchase Agreement" means a written
agreement between a holder of a Stock Purchase Right and the Company reflecting
the terms of a Stock Purchase Right granted under the Plan and includes any
documents attached to such agreement.

                  (ee) "Rule 16b-3" means Rule 16b-3 promulgated under the
Exchange Act, as the same may be amended from time to time, or any successor
provision.

                  (ff) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 13 of the Plan.

                  (gg) "Stock Exchange" means any stock exchange or consolidated
stock price reporting system on which prices for the Common Stock are quoted at
any given time.

                  (hh) "Stock Purchase Right" means the right to purchase Common
Stock pursuant to Section 11 below.

                  (ii) "Subsidiary" means a "subsidiary corporation," whether
now or hereafter existing, as defined in Section 424(f) of the Code, or any
successor provision.

         3. Stock Subject to the Plan. Subject to the provisions of Section 13
of the Plan, the maximum aggregate number of Shares that may be optioned and
sold under the Plan is one million five hundred thousand (1,500,000) Shares of
Common Stock. The Shares may be authorized, but unissued, or reacquired Common
Stock. If an Option should expire or become unexercisable for any reason without
having been exercised in full, or is surrendered pursuant to an Option Exchange
Program, the unpurchased Shares that were subject thereto shall, unless the Plan
shall have been terminated, become available for future grant under the Plan. In
addition, any Shares of Common Stock which are retained by the Company upon
exercise of an Option or Stock Purchase Right in order to satisfy the exercise
or purchase price for such Option or Stock Purchase Right or any withholding
taxes due with respect to such exercise shall be treated as not issued and shall
continue to be available under the Plan. Shares repurchased by the Company
pursuant to any repurchase right which the Company may have shall not be
available for future grant under the Plan.

                                       10

<PAGE>

         4. Administration of the Plan.

                  (a) General. The Plan shall be administered by the Board or a
Committee, or a combination thereof, as determined by the Board. The Plan may be
administered by different administrative bodies with respect to different
classes of Optionees and, if permitted by the Applicable Laws, the Board may
authorize one or more officers (who may (but need not) be Officers) to grant
Options or Stock Purchase Rights to Employees and Consultants.

                  (b) Administration With Respect to Reporting Persons. With
respect to Options granted to Reporting Persons and Named Executives, the Plan
may (but need not) be administered so as to permit such Options to qualify for
the exemption set forth in Rule 16b-3 and to qualify as performance-based
compensation under Section 162(m) of the Code.

                  (c) Committee Composition. If a Committee has been appointed
pursuant to this Section 4, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board. From time to time the
Board may increase the size of any Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies (however caused) and remove all members of
a Committee and thereafter directly administer the Plan, all to the extent
permitted by the Applicable Laws and, in the case of a Committee administering
the Plan pursuant to Section 4(b) above, to the extent permitted or required by
Rule 16b-3 and Section 162(m) of the Code.

                  (d) Powers of the Administrator. Subject to the provisions of
the Plan and in the case of a Committee, the specific duties delegated by the
Board to such Committee, and subject to the approval of any relevant
authorities, including the approval, if required, of any Stock Exchange, the
Administrator shall have the authority, in its discretion:

                           (i) to determine the Fair Market Value of the Common
Stock, in accordance with Section 2(o) of the Plan;

                           (ii) to select the Consultants and Employees to whom
Options and Stock Purchase Rights or any combination thereof may from time to
time be granted hereunder;

                           (iii) to determine whether and to what extent Options
and Stock Purchase Rights or any combination thereof are granted hereunder;

                           (iv) to determine the number of shares of Common
Stock to be covered by each such award granted hereunder;

                           (v) to approve forms of agreement for use under the
Plan;

                           (vi) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any award granted hereunder, which
terms and conditions include but are not limited to the exercise or purchase
price, the time or times when Options or Stock Purchase Rights may be exercised
(which may be based on performance criteria), any vesting acceleration or waiver
of forfeiture restrictions, and any restriction or limitation regarding any
Option, Optioned Stock, Stock Purchase Right or Restricted Stock, based in each
case on such factors as the Administrator, in its sole discretion, shall
determine;

                           (vii) to determine whether and under what
circumstances an Option may be settled in cash under Section 10(g) instead of
Common Stock;

                           (viii) to reduce the exercise price of any Option to
the then current Fair Market Value if the Fair Market Value of the Common Stock
covered by such Option shall have declined since the date the Option was
granted;

                           (ix) to determine the terms and restrictions
applicable to Stock Purchase Rights and the Restricted Stock purchased by
exercising such Stock Purchase Rights;

                                       11

<PAGE>

                           (x) to initiate an Option Exchange Program;

                           (xi) to construe and interpret the terms of the Plan
and awards granted pursuant to the Plan; and

                           (xii) in order to fulfill the purposes of the Plan
and without amending the Plan, to modify grants of Options or Stock Purchase
Rights to participants who are foreign nationals or employed outside of the
United States in order to recognize differences in local law, tax policies or
customs.

                  (d) Effect of Administrator's Decision. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all holders of Options or Stock Purchase Rights.

         5. Eligibility.

                  (a) Recipients of Grants. Nonstatutory Stock Options and Stock
Purchase Rights may be granted to Employees and Consultants. Incentive Stock
Options may be granted only to Employees; PROVIDED, HOWEVER, that Employees of
Affiliates shall not be eligible to receive Incentive Stock Options. An Employee
or Consultant who has been granted an Option or Stock Purchase Right may, if he
or she is otherwise eligible, be granted additional Options or Stock Purchase
Rights.

                  (b) Type of Option. Each Option shall be designated in the
Option agreement as either an Incentive Stock Option or a Nonstatutory Stock
Option. However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of Shares with respect to which Options designated
as Incentive Stock Options are exercisable for the first time by any Optionee
during any calendar year (under all plans of the Company or any Parent or
Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares subject to an Incentive Stock Option shall
be determined as of the date of the grant of such Option.

                  (c) The Plan shall not confer upon the holder of any Option or
Stock Purchase Right any right with respect to continuation of employment or
consulting relationship with the Company, nor shall it interfere in any way with
such holder's right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

         6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
stockholders of the Company as described in Section 20 of the Plan. It shall
continue in effect for a term of ten years unless sooner terminated under
Section 16 of the Plan.

         7. Term of Option. The term of each Option shall be the term stated in
the Option Agreement; PROVIDED, HOWEVER, that the term shall be no more than ten
years from the date of grant thereof or such shorter term as may be provided in
the Option Agreement and provided further that, in the case of an Incentive
Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than 10% of the total combined voting power of all
classes of stock of the Company or any Parent or Subsidiary, the term of the
Option shall be five years from the date of grant thereof or such shorter term
as may be provided in the Option Agreement.

         8. Limitation. Subject to adjustment as provided in Section 14 below,
the maximum number of Shares which may be subject to Options and Stock Purchase
Rights granted to any one Employee under this Plan for any fiscal year of the
Company shall be five hundred thousand (500,000) Shares.

                                       12

<PAGE>

         9. Option Exercise Price and Consideration.

                  (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board and set forth in the Option Agreement, but shall be subject to the
following:

                           (i) In the case of an Incentive Stock Option that is:

                                (A) granted to an Employee who, at the time of
the grant of such Incentive Stock Option, owns stock representing more than 10%
of the total combined voting power of all classes of stock of the Company or any
Parent or Subsidiary, the per Share exercise price shall be no less than 110% of
the Fair Market Value per Share on the date of grant.

                                (B) granted to any other Employee, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

                           (ii) In the case of a Nonstatutory Stock Option, the
per Share exercise price shall be determined by the Administrator, provided
however that the per share exercise price of an Option granted to a Named
Executive of the Company shall be no less than 100% of the Fair Market Value per
Share on the date of grant if such Option is intended to qualify as
performance-based compensation under Section 162(m) of the Code.

                           (iii) Notwithstanding the foregoing, Options may be
granted with a per Share exercise price other than as required above pursuant to
a merger or other corporate transaction.

                  (b) The consideration to be paid for the Shares to be issued
upon exercise of an Option, including the method of payment, shall be determined
by the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note (subject to the provisions of the Delaware General
Corporation Law), (4) cancellation of indebtedness, (5) other Shares that (x) in
the case of Shares acquired upon exercise of an Option, have been owned by the
Optionee for more than six months on the date of surrender or such other period
as may be required to avoid a charge to the Company's earnings, and (y) have a
Fair Market Value on the date of surrender equal to the aggregate exercise price
of the Shares as to which such Option shall be exercised, (6) authorization for
the Company to retain from the total number of Shares as to which the Option is
exercised that number of Shares having a Fair Market Value on the date of
exercise equal to the exercise price for the total number of Shares as to which
the Option is exercised, (7) delivery of a properly executed exercise notice
together with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale or loan proceeds required to pay the exercise price and
any applicable income or employment taxes, (8) delivery of an irrevocable
subscription agreement for the Shares that irrevocably obligates the option
holder to take and pay for the Shares not more than twelve months after the date
of delivery of the subscription agreement, (9) any combination of the foregoing
methods of payment, or (10) such other consideration and method of payment for
the issuance of Shares to the extent permitted under the Applicable Laws. In
making its determination as to the type of consideration to accept, the
Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

         10. Exercise of Option.

                  (a) Procedure for Exercise; Rights as a Stockholder. Any
Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Administrator and reflected in the Option
Agreement, which may include vesting requirements and/or including performance
criteria with respect to the Company and/or the Optionee. The Administrator
shall have the discretion, after the grant of an Option, to adjust the vesting
of an Option held by an Employee or Consultant as a result in a change in the
terms or conditions under which such person is providing services to the
Company, or for any other reason. The Administrator shall have the discretion to
determine whether and to what extent the vesting of Options shall be tolled
during any unpaid leave of absence; PROVIDED, HOWEVER, that in the absence of
such determination, vesting of Options shall be tolled during any such leave.

                  An Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of
the Option by the person entitled to exercise the Option and the Company has
received full payment for the Shares with respect to which the Option is
exercised. Full payment may, as authorized by the Administrator, consist of any

consideration and method of payment allowable under Section 9(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the

                                       13

<PAGE>

Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. 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 12 of the Plan.

                  Exercise of an Option in any manner shall result in a decrease
in the number of Shares that thereafter may be available, both for purposes of
the Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

                  (b) Termination of Employment or Consulting Relationship. In
the event of termination of an Optionee's Continuous Status as an Employee or
Consultant with the Company, such Optionee may, but only within three months (or
such other period of time as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option being made at the time of
grant of the Option) after the date of such termination (but in no event later
than the expiration date of the term of such Option as set forth in the Option
Agreement), exercise his or her Option to the extent that the Optionee was
entitled to exercise it at the date of such termination. To the extent that the
Optionee was not entitled to exercise the Option at the date of such
termination, or if the Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate and the
Optioned Stock underlying the unexercised portion of the Option shall revert to
the Plan. No termination shall be deemed to occur and this Section 10(b) shall
not apply if (i) the Optionee is a Consultant who becomes an Employee, or (ii)
the Optionee is an Employee who becomes a Consultant.

                  (c) Disability of Optionee. Notwithstanding Section 10(b)
above, in the event of termination of an Optionee's Continuous Status as an
Employee or Consultant as a result of his or her total and permanent disability
(within the meaning of Section 22(e)(3) of the Code), such Optionee may, but
only within six months from the date of such termination (but in no event later
than the expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination. To the extent that the Optionee was not
entitled to exercise the Option at the date of termination, or if the Optionee
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate and the Optioned Stock underlying
the unexercised portion of the Option shall revert to the Plan.

                  (d) Death of Optionee. In the event of the death of an
Optionee during the period of Continuous Status as an Employee or Consultant
since the date of grant of the Option, or within 30 days following termination
of the Optionee's Continuous Status as an Employee or Consultant, the Option may
be exercised, at any time within twelve months following the date of death (but
in no event later than the expiration date of the term of such Option as set
forth in the Option Agreement), by such Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to
the extent of the right to exercise that had accrued at the date of death or, if
earlier, the date of termination of the Optionee's Continuous Status as an
Employee or Consultant. To the extent that the Optionee was not entitled to
exercise the Option at the date of death or termination, as the case may be, or
if the Optionee does not exercise such Option to the extent so entitled within
the time specified herein, the Option shall terminate and the Optioned Stock
underlying the unexercised portion of the Option shall revert to the Plan.

                  (e) Extension of Exercise Period. The Administrator shall have
full power and authority to extend the period of time for which an Option is to
remain exercisable following termination of an Optionee's Continuous Status as
an Employee or Consultant from the periods set forth in Sections 10(b), 10(c)
and 10(d) above or in the Option Agreement to such greater time as the Board
shall deem appropriate, provided, that in no event shall such option be
exercisable later than the date of expiration of the term of such Option as set
forth in the Option Agreement. In case of Incentive Stock Options, extensions
under this Section 10(e) may result in loss of the favorable treatment accorded
incentive stock options under the Code.

                  (f) Rule 16b-3. Options granted to Reporting Persons shall
comply with Rule 16b-3 and shall contain such additional conditions or
restrictions as may be required thereunder to qualify for the maximum exemption
for Plan transactions.

                                       14

<PAGE>

                  (g) Buy-Out Provisions. The Administrator may at any time
offer to buy out for a payment in cash or Shares an Option previously granted
based on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time such offer is made.

         11. Stock Purchase Rights.

                  (a) Rights to Purchase. Stock Purchase Rights may be issued
either alone, in addition to, or in tandem with other awards granted under the
Plan and/or cash awards made outside of the Plan. After the Administrator
determines that it will offer Stock Purchase Rights under the Plan, it shall
advise the offeree in writing of the terms, conditions and restrictions related
to the offer, including the number of Shares that such person shall be entitled
to purchase, the price to be paid, and the time within which such person must
accept such offer, which shall in no event exceed 30 days from the date upon
which the Administrator made the determination to grant the Stock Purchase
Right. The offer shall be accepted by execution of a Restricted Stock Purchase
Agreement in the form determined by the Administrator.

                  (b) Repurchase Option. Unless the Administrator determines
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's employment with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original purchase price paid by
the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company.

                  (c) Other Provisions. The Restricted Stock Purchase Agreement
shall contain such other terms, provisions and conditions not inconsistent with
the Plan as may be determined by the Administrator in its sole discretion. In
addition, the provisions of Restricted Stock Purchase Agreements need not be the
same with respect to each purchaser.

                  (d) Rights as a Stockholder. Once the Stock Purchase Right is
exercised, the purchaser shall have the rights equivalent to those of a
stockholder, and shall be a stockholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 12
of the Plan.

         12. Tax Withholding.

                  (a) General. As a condition to the exercise of Options or
Stock Purchase Rights granted hereunder, the Optionee or holder of such Stock
Purchase Right shall make such arrangements as the Administrator may require for
the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with the exercise, receipt or vesting
of such award. The Company shall not be required to issue any Shares under the
Plan until such obligations are satisfied.

                  (b) Stock Withholding to Satisfy Withholding Tax Obligations.
At the discretion of the Administrator, Optionees may satisfy withholding
obligations as provided in this paragraph. When an Optionee incurs tax liability
in connection with an Option or Stock Purchase Right, which tax liability is
subject to tax withholding under applicable tax laws, and the Optionee is
obligated to pay the Company an amount required to be withheld under applicable
tax laws, the Optionee may satisfy the withholding tax obligation by one or some
combination of the following methods: (i) by cash or check payment, (ii) out of
the Optionee's current compensation, (iii) if permitted by the Administrator, in
its discretion, by surrendering to the Company Shares that (A) in the case of
Shares previously acquired from the Company, have been owned by the Optionee for
more than six months on the date of surrender, and (B) have a Fair Market Value
on the date of surrender equal to or less than the amount required to be
withheld, or (iv) by electing to have the Company withhold from the Shares to be
issued upon exercise of the Option, or the Shares to be issued in connection
with the Stock Purchase Right, if any, that number of Shares having a Fair
Market Value equal to the amount required to be withheld. For this purpose, the
Fair Market Value of the Shares to be withheld shall be determined on the date
that the amount of tax to be withheld is to be determined (the "Tax Date").

                                       15

<PAGE>

                  Any surrender by a Reporting Person of previously owned Shares
to satisfy tax withholding obligations arising upon exercise of this Option must
comply with the applicable provisions of Rule 16b-3.

                  All elections by an Optionee to have Shares withheld to
satisfy tax withholding obligations shall be made in writing in a form
acceptable to the Administrator and shall be subject to the following
restrictions:

                  (x) the election must be made on or prior to the applicable
Tax Date;

                  (y) once made, the election shall be irrevocable as to the
particular Shares of the Option or Stock Purchase Right as to which the election
is made; and

                  (z) all elections shall be subject to the consent or
disapproval of the Administrator.

                  In the event the election to have Shares withheld is made by
an Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option or Stock Purchase
Right is exercised but such Optionee shall be unconditionally obligated to
tender back to the Company the proper number of Shares on the Tax Date.

         13. Adjustments Upon Changes in Capitalization, Merger or Certain Other
Transactions.

                  (a) Changes in Capitalization. Subject to any required action
by the stockholders of the Company, the number of shares of Common Stock covered
by each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock that have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or that have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, the number of Shares set forth in Section 8 above, as well as
the price per share of Common Stock covered by each such outstanding Option or
Stock Purchase Right, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination, recapitalization or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; PROVIDED, HOWEVER, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

                  (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least 15 days prior to such proposed action. To the extent it has not been
previously exercised, the Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

                  (c) Change in Control. In the event of a Change in Control,
each outstanding Option or Stock Purchase Right shall be assumed or an
equivalent option or right shall be substituted by the successor corporation or
a Parent or Subsidiary of such successor corporation, unless such successor
corporation does not agree to assume the outstanding Options or Stock Purchase
Rights or to substitute equivalent options or rights, in which case such Options
or Stock Purchase Rights shall terminate upon the consummation of the
transaction. For purposes of this Section 13(c), an Option or a Stock Purchase
Right shall be considered assumed, without limitation, if, at the time of
issuance of the stock or other consideration upon such Change in Control, each
holder of an Option or Stock Purchase Right would be entitled to receive upon
exercise of the Option or Stock Purchase Right the same number and kind of
shares of stock or the same amount of property, cash or securities as such
holder would have been entitled to receive upon the occurrence of the

                                       16

<PAGE>

transaction if the holder had been, immediately prior to such transaction, the
holder of the number of Shares of Common Stock covered by the Option or the
Stock Purchase Right at such time (after giving effect to any adjustments in the
number of Shares covered by the Option or Stock Purchase Right as provided for
in this Section 13); PROVIDED, HOWEVER, that if such consideration received in
the Change in Control was not solely common stock of the successor corporation
or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon exercise of the
Option to be solely common stock of the successor corporation or its Parent
equal to the Fair Market Value of the per Share consideration received by
holders of Common Stock in the transaction.

                  (d) Certain Distributions. In the event of any distribution to
the Company's stockholders of securities of any other entity or other assets
(other than dividends payable in cash or stock of the Company) without receipt
of consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per Share of Common Stock covered by each
outstanding Option or Stock Purchase Right to reflect the effect of such
distribution.

         14. Non-Transferability of Options and Stock Purchase Rights. Options
and Stock Purchase Rights may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution, provided that, after the date, if any, upon which the
Common Stock becomes a Listed Security, the Administrator may in its discretion
grant transferable Nonstatutory Stock Options pursuant to Option Agreements
specifying (i) the manner in which such Nonstatutory Stock Options are
transferable and (ii) that any such transfer shall be subject to the Applicable
Laws. The designation of a beneficiary by an Optionee will not constitute a
transfer. An Option or Stock Purchase Right may be exercised, during the
lifetime of the holder of the Option or Stock Purchase Right, only by such
holder or a transferee permitted by this Section 14.

         15. Time of Granting Options and Stock Purchase Rights. The date of
grant of an Option or Stock Purchase Right shall, for all purposes, be the date
on which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Board; PROVIDED,
HOWEVER, that in the case of any Incentive Stock Option, the grant date shall be
the later of the date on which the Administrator makes the determination
granting such Incentive Stock Option or the date of commencement of the
Optionee's employment relationship with the Company. Notice of the determination
shall be given to each Employee or Consultant to whom an Option or Stock
Purchase Right is so granted within a reasonable time after the date of such
grant.

         16. Amendment and Termination of the Plan.

                  (a) Authority to Amend or Terminate. The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation (other than an adjustment made pursuant to Section
13 above) shall be made that would impair the rights of any Optionee under any
grant theretofore made, without his or her consent. In addition, to the extent
necessary and desirable to comply with the Applicable Laws the Company shall
obtain stockholder approval of any Plan amendment in such a manner and to such a
degree as required.

                  (b) Effect of Amendment or Termination. No amendment or
termination of the Plan shall adversely affect Options already granted, unless
mutually agreed otherwise between the Optionee and the Administrator, which
agreement must be in writing and signed by the Optionee and the Company.

         17. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option or Stock Purchase Right unless the
exercise of such Option or Stock Purchase Right and the issuance and delivery of
such Shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, and the
requirements of any Stock Exchange.

         As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by law.

         18. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which

                                       17

<PAGE>

authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

         19. Agreements. Options and Stock Purchase Rights shall be evidenced by
written Option Agreements and Restricted Stock Purchase Agreements,
respectively, in such form(s) as the Administrator shall approve from time to
time.

         20. Stockholder Approval. If required by the Applicable Laws,
continuance of the Plan shall be subject to approval by the stockholders of the
Company within twelve months before or after the date the Plan is adopted. Such
stockholder approval shall be obtained in the degree and manner required under
the Applicable Laws. All Options and Stock Purchase Rights issued under the Plan
shall become void in the event such approval is not obtained.

         21. Documents to Optionees. At the time of issuance of any awards under
the Plan, the Company shall provide to the recipient of such award a copy of the
Plan and any agreement(s) pursuant to which awards granted under the Plan are
issued.

         22. Awards Granted to California Residents. Options and Stock Purchase
Rights granted under the Plan to persons resident in California shall be subject
to the provisions set forth in Attachment A hereto. To the extent the provisions
of the Plan conflict with the provisions set forth on Attachment A, the
provisions on Attachment A shall govern the terms of such Options.

                                       18

<PAGE>

                                  Attachment A

                    Provisions Applicable to Award Recipients
                             Resident in California

         Until such time as any security of the Company becomes a Listed
Security and if required by the Applicable Laws, the following additional terms
shall apply to Options and Stock Purchase Rights, and Shares issued upon
exercise of such awards, granted under the Synergy 2000, Inc. 2000 Incentive
Stock Plan (the "Plan") to persons resident in California as of the date of
grant of any such award (each such person, a "California Recipient"):

         1. In the case of a Nonstatutory Stock Option, that is:

                  (a) granted to a California Recipient who, at the time of the
grant of such Option, owns stock representing more than 10% of the total
combined voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value on the date of grant.

                  (b) granted to any California Recipient who is a Named
Executive of the Company, the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

                  (c) granted to any other California Recipient, the per Share
exercise price shall be no less than 85% of the Fair Market Value per Share on
the date of grant.

         2. In the case of Stock Purchase Rights granted to a California
Recipient, the purchase price applicable to such right shall not be less than
85% of the Fair Market Value of the Shares as of the date of the offer, or, in
the case of a person owning stock representing more than 10% of the total
combined voting power of all classes of stock of the Company or any Parent or
Subsidiary, the price shall not be less than 100% of the Fair Market Value of
the Shares as of the date of the offer.

         3. With respect to an Option or Stock Purchase Right issued to any
California Recipient who is not an Officer, Director or Consultant, such Option
or Stock Purchase Right shall become exercisable, or any repurchase option in
favor of the Company shall lapse, at the rate of at least 20% per year over five
years from the date the award is granted.

         4.       (a) Subject to Section 10(b) of the Plan and to Section
4(b) below, in the event of termination of a California Recipient's Continuous
Status as an Employee or Consultant with the Company, such California Recipient
shall have at least 30 days after the date of such termination (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement) to exercise such Option.

                  (b) In the event of termination of a California Recipient's
Continuous Status as an Employee or Consultant as a result of a disability which
does not fall within the meaning of total and permanent disability (as set forth
in Section 22(e)(3) of the Code), such California Recipient may, but only within
six months from the date of such termination (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination. However, to the extent that such California
Recipient fails to exercise an Option which is an Incentive Stock Option (within
the meaning of Section 422 of the Code) within three months of the date of such
termination, the Option will not qualify for Incentive Stock Option treatment
under the Code. To the extent that the California Recipient was not entitled to
exercise the Option at the date of termination, or if the California Recipient
does not exercise such Option to the extent so entitled within six months from
the date of termination, the Option shall terminate and the Optioned Stock
underlying the unexercised portion of the Option shall revert to the Plan.

         5. The Company shall provide financial statements at least annually to
each California Recipient during the period such person has one or more Options
or Stock Purchase Rights outstanding, and in the case of an individual who
acquired Shares pursuant to the Plan, during the period such individual owns
such Shares. The Company shall not be required to provide such information if
the issuance of awards under the Plan is limited to key employees whose duties
in connection with the Company assure their access to equivalent information.

         6. Capitalized terms not defined in this Attachment shall have the
meanings set forth in the Plan.

                                       19

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